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by pyrale 603 days ago
Not sure how this project makes sense economically. Does Singapore have poor relation with all the countries closer to them?
6 comments

Seems complicated, land neighbor would be only Malaysia right? By water, Indonesia?

Vietnam is close but already under heavy growth, not sure they have any reasonable landmass or supply of electricity. Not as familiar with Thailand but would be surprised.

All of those above players could be wild cards. Australia is massive and I am making this up but like 95% of it is empty. Perhaps solar could be so incredible cheap that the transmission cost is bearable.

Australia is risky because as a member of AUKUS they are likely to be a combatant in the anticipated war between America/Taiwan aligned countries and China. This puts Singapore's power supply in the crosshairs.
Eh, Singapore is a bridge country for China to western markets. And is 80% ethnic Chinese.

At the point random power plants in the Australian Outback are being bombed to get to Singapore, Singapore has gotten so fucked already they can’t stand.

> power plants in the Australian Outback are being bombed

More likely for the cable to be cut. It's easier and has plausible deniability.

Fair point - I’d expect the US would do it before China, Australia, Russia, etc. in this case though.
If the xenophobic Tom Cotton crowd get the upper hand, sure.

O/wise, not so much.

Your point is?
I think they are anticipating importing extremely cheap solar power from Australia.
Yep. Zero of those "closer" neighbors have umpteen thousand square miles of nearly-uninhabited desert handy, to easily build solar at scale.

Plus - if it worked well enough, Singapore might do a major expansion. And sell start selling solar power to their closer neighbors.

Im not sure the project makes economic sense even if the power were free.

Typical wholesale contract prices for solar production in the US are on the order of $0.04-0.05/kwh.

If this $17B cable delivers the full 1.75 gigawatts for 12 hours a day for 20 years, the transmission cost alone is $0.055/kwh.

This doesnt even take into account the time value of money, which would radically increase the cost. The line would have to charge $0.30/kwh for transmission to break even with a 5% interest rate. [1]

https://www.wolframalpha.com/input?i=1.75+GW%2F2*20+years%2F...

Singapore likes to have good relations with everyone. Now Australia has an additional reason to be displeased with anyone who attacks Singapore or threatens their electricity.

Singapore also doesn't like any one country to have excess leverage. Many countries supply them with electricity, this adds one more.

> Singapore likes to have good relations with everyone.

Except Malaysia and Indonesia, who are huge and immediate neighbors

Extremely poor.

I bet this was done to diversify sources as opposed to ideam many commenters have as in "just more electricity".

They are also proposing to import from closer countries.
Pretty much. Guess it would have been as viable getting electricity from Thailand (one nearby country that could supply it electricity) as it is getting cheaper electricity from Australia + laying the cable.