Source: Fitch Solutions
The planned Australia-Asia PowerLink project between Singapore and Australia may face headwinds due to technical complexities, Fitch Solutions reported.
Fitch noted the project’s feasibility is still in question due to technical and regulatory hurdles that not yet been addressed.
“Despite the momentum of the project, we currently do not expect this project to come to fruition given significant technical complexities and remain cautious about the feasibility at present,” the report read.
Fitch noted that the project is in line Australia’s plans to be an exporter of electricity, banking on its potential in solar photovoltaic power development.
The project, led by Sun Cable, seeks to construct the 17-20-gigawatt Tennant Creek Solar Farm in the Northern Territory.
It also includes a 4,200-kilometre HVDC subsea cables from darwin to Singapore, through Indonesia.
“We highlight updates signalling that the project is still progressing despite its magnitude, with Sun Cable securing AU$210m (US$151m) from a series B financing round in March 2022,” the report also noted.
“However, we do not include this project in our forecasts yet, due to technical and regulatory hurdles that have yet to be addressed.”
