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Not sure how this project makes sense economically. Does Singapore have poor relation with all the countries closer to them?
by pyrale 2y ago
Not sure how this project makes sense economically. Does Singapore have poor relation with all the countries closer to them?
- burkaman 2y agoI think they are anticipating importing extremely cheap solar power from Australia.
- bell-cot 2y agoYep. 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.
- s1artibartfast 2y agoIm 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+%2817Bn+USD+*%281.05%5E20%29+%29+in+USD%2FkWh https://www.wolframalpha.com/input?i=1.75+GW%2F2*20+years%2F...
- fakedang 2y agoPretty 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.
- infecto 2y agoSeems 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.
- lupusreal 2y agoAustralia 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.
- lazide 2y agoEh, 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.
- graeme 2y agoSingapore 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.
- jesterson 2y ago> Singapore likes to have good relations with everyone. Except Malaysia and Indonesia, who are huge and immediate neighbors
- 7952 2y agoThey are also proposing to import from closer countries.
- jesterson 2y agoExtremely poor. I bet this was done to diversify sources as opposed to ideam many commenters have as in "just more electricity".