YOG INFRA Q1 2023 insights
Encouraging developments in areas of clean energy transition in SINGAPORE, LAOS and CAMBODIA with a focus on clean energy transition in power generation and transport sectors. Local developers in Singapore continue to work towards overall Green Plan; and we see continued interest from international investors in Laos and Cambodia.
Read the latest developments in Infrastructure and PPPs in the three countries in our final insight of Q1 2023 series.
LTA TO ADD 2,000 NEW EV CHARGERS ACROSS SINGAPORE IN 2023
The Land Transport Authority (LTA) will add 2,000 new electric vehicle (EV) charging stations at 700 Housing and Development Board (HDB) carparks across Singapore during 2023. In the end of 2023, one in three HDB carpark will have an EV charging point. By 2025, around 12,000 new chargers will be installed at 2,000 car parks.
The LTA has also launched a call for a solution to seek suggestions regarding ways to install the chargers in the car parks without requiring substantial infrastructure upgrades. This call is open to companies, research and education institutes.
GIC ENTERS EXCLUSIVITY PHASE FOR ELECTRICITY TRANSMISSION INVESTMENT
Singapore sovereign fund GIC is in exclusive due diligence on a USD 300 MN investment in Indian electricity transmission company Sterlite Power. The investment money will be used by Sterlite to bid on and develop power transmission projects across the country. The new investor is expected to share any return upside as well as receiving downside protection.
Sterlite Power, a subsidiary of Vedanta Group, owns transmission projects of more than 13,700 circuit Km and 26,100 megavolt amperes (MVA) in India and Brazil. About 80% of Sterlite's new projects are linked to renewable energy.
SINGAPORE'S CAPITALAND TO FINALISE RENEWABLES INVESTMENT STRATEGY
Singapore real assets investor and manager CapitaLand Investment is in the midst of forming a renewables investment strategy. The SGX-listed global investor will focus on solar, wind power, battery storage and rooftop installations. The company will leverage its real estate expertise for ground-based projects. CapitaLand could look to set up a new fund.
CapitaLand, the investment management arm of Singapore's CapitaLand Group, owns and invests in retail, office, and residential assets, as well as business and industrial parks, and data centers. It is currently Focusing on China and India for opportunities to grow its Asia data center portfolio, encouraged by the strong digitization in the two markets. It will also focus on the developed markets in Asia including South Korea, Japan, and Singapore.
SEA’S LARGEST ENERGY STORAGE SYSTEM NOWONLINE ON JURONG ISLAND
The largest energy storage system (ESS) in the Southeast Asia region was commissioned online on Jurong Island in Singapore. The 285 MWh Sembcorp ESS facility comprises 800 large-scale battery units that will store excess solar energy generated. This will then use during periods of high electricity demand.
The 2-hectare site was developed by Sembcorp Industries under a contract with the Energy Market Authority (EMA). With operations commencing on the ESS facility, the Government of Singapore has achieved its 200 MWh energy storage target. It is now aiming to have 2 GWp of solar capacity by 2030, accounting for 3 % of projected electricity demand.
THAI-CHINA CONSORTIUM SIGNS 770 MW LAOTIAN HYDRO DEAL
A hydropower project backed by PowerChina and Gulf Energy has signed a concession agreement with the Laotian government on a 770 MW hydropower plant.
The Thai and Chinese companies will co-develop the project, which will have an estimated total cost of USD 2.384 Bn. The construction period is 10 years, with a target commissioning date in 2032.
The project will be a run-of-river power plant located in Laos' Oudomxay province, in the northwestern part of the country. It is about 60 km from the Laotian capital city of Vientiane and about 60 km from the Lao-Thai border.
The project developer has signed a memorandum of understanding with the state-owned Electricity Generation Authority of Thailand (EGAT) to sell them power from its generation facility under a THB 2.7 (USD 8 cents) per KWh feed-in-tariff scheme.
GOVERNMENT OF CAMBODIA PLANS USD 4 BN HIGH SPEED RAIL PROJECT
The Government of Cambodia plans to upgrade the existing Phnom Penh-Poipet railway to a high-speed rail (HSR) line. The rail project will cost around USD 4 BN and will take around four years to complete.
The 384-km-long HSR line, with 33 stations, will be used for both passenger and freight transport between Cambodia and Thailand. The HSR will connect the Kandal, Kampong Chhnang, Pursat, Battambang and Banteay Meanchey provinces. The line will feature electric rail cars with a maximum speed of 160 km/h and will be the first express railway in Cambodia.
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YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.
With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.
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