Singapore could see some of its future power needs met by a new “hybrid megaproject” that would send electricity generated by a 2GW solar facility located in neighbouring Indonesia and backed up by an 8GWh energy storage system, with a role for Shell's energy trading division.

Vena Energy, a Singapore-headquartered renewables company, unveiled a "landmark framework agreement” on Monday, putting pen to paper with new partners Chinese solar developer Suntech Power, US energy storage company Powin and Chinese battery cell producer REPT Battero.

The three suppliers are looking to support Vena Energy’s “hybrid megaproject” currently under development in the Riau Islands, scattered in the South China Sea near Singapore.

Apart from supplying clean energy to Singapore, the agreement aims to expand Indonesia’s renewables supply chain, building up local production of solar photovoltaic panels and energy storage systems, Vena said in a statement.

The project is set to feature up to 2GW of solar power capacity and a battery energy storage system potentially capable of storing in excess of 8GWh of clean energy, which Vena says makes it “one of the most significant renewable energy initiatives in Southeast Asia.”

The signing ceremony, which took place in Jakarta, also saw Vena ink a collaboration agreement with Shell Eastern Trading to help supply energy generated by the project to Singapore.

If the project is realised, it could prove a future rival to the A$30bn ($20bn) Sun Cable project which aimsto transmit massive amounts of solar-generated electricity to Singapore from Australia.

The Sun Cable project – backed by Australian billionaire green backers Mike Cannon-Brookes and Andrew Forrest – plans to transport power from 20GW of PV in Australia’s Northern Territory to Singapore via a 4,200km HVDC cable.

The project owners are now in talks to bring wind developers on boardas well.

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