The Australian government recently greenlit an ambitious $20 billion project for renewable energy distribution in Northern Australia. The Australia-Asia Power Link (AAPowerLink) project by SunCable, a Sydney based renewable energy company, was given the environmental approval by the government. The project dubbed the “largest solar precinct in the world”, aims to export energy to the Australian city of Darwin and to Singapore. Here is what we know about it: 

SunCable’s project will reportedly consist of solar panels and batteries with nearly 40 gigawatts capacity spanning 12,400 hectares of land. The project, slated to power nearly 3 million homes, will transport electricity to the city of Darwin in North Australia through an 800-kilometer (497-mile) transmission line. 

The real ambition, however, lies in the establishment of 4,300-kilometer (2,762 mile) submarine cable, which will supply renewable electricity to large-scale industrial customers in Singapore. The project aims to deliver up to six gigawatts of electricity each year. Four gigawatts of energy will be supplied to Darwin through overhead lines while 2 gigawatts will be supplied to Singapore via subsea cables. The electricity supply is expected to commence by 2030.   

Several approval processes remain such as working with Singapore’s energy market authority, Indonesia’s government and Australian Indigenous communities. The Final Investment Decision (FID) on the project is expected to be made by 2027. 

As per SunCable’s website, “the AAPowerLink project is expected to deliver more than AUD $20 billion in economic value to the Northern Territory during its construction period and first 35 years of operation.” 

The plans for the project were first highlighted in a state visit by then Singapore Prime Minister Lee Hsien Loong and Australian Prime Minister Anthony Albanese as part of a ‘Green Economy’ agreement in 2022. Initially backed by Andrew Forrest and Atlassian co-founder Mike Cannon-Brookes, the project experienced a setback in January 2023 as SunCable entered voluntary administration due to a funding dispute between Forrest and Cannon-Brookes. By May, the company was acquired by Cannon Brookes’ Grok Venture, with the takeover finalised in September 2023. 

Major step for Australia in green energy: 

It is also a major step that is believed to propel Australia as the world leader in renewable energy. Currently, Australia is one of the world’s leading exports of coal and gas. The country-island has also been suffering drastic effects from climate change, from pavement melting temperatures to wildfires and floods. In 2022, renewables constituted 32 percent of Australia’s total electricity generation whereas coal contributed 47 percent, according to the latest government data. 

Power is also a contested political issue in the country. Australia is heavily reliant on coal and gas for energy. Their exports have also been a major factor underpinning the country’s economy. While the ruling government has approved the project, the main opposition party announced plans for building the country’s first nuclear power plants as early as 2035.  As a result, the countries’ major parties remain divided on the issues of curbing Australia’s greenhouse emissions, which remain one of the world’s highest on a per capita basis.