No demand cap on energy consumption for energy-intensive industries: Gan Kim Yong

THE government does not intend to cap energy consumption by energy-intensive industries, and instead has other measures to help businesses improve their energy efficiency and tide over this period of elevated prices, said Minister for Trade and Industry Gan Kim Yong in a written reply to parliamentary questions on Monday (Jul 4).

People’s Action Party Member of Parliament Poh Li San (Sembawang GRC) had asked if the ministry would consider such a demand cap for energy-intensive industries. Gan replied that such a cap “will disrupt company operations”.

Instead, the government has put in place support measures such as the recently announced Energy Efficiency Grant for the food manufacturing, food services, and retail sectors as well as the National Environment Agency’s Energy Efficiency Fund, he said.

In December last year, the Energy Market Authority (EMA) also introduced the Temporary Electricity Contracting Support Scheme, with 1-month fully or partially fixed price plans for businesses. For businesses that want greater certainty, EMA has been working with electricity retailers and generation companies to offer longer-term fixed plans of up to 3 years. EMA has extended these measures till Mar 31, 2023.

The minister also fielded questions on the place of natural gas in Singapore’s energy transition and whether Malaysia’s ban on renewable energy exports will affect Singapore.

On the question of natural gas, Gan noted that it continues to play an important role in the global energy transition. Currently, about 95 per cent of Singapore’s electricity is generated using natural gas, imported as piped natural gas from Malaysia and Indonesia, and as liquefied natural gas from a variety of sources, including Australia, Qatar, and to a small extent, the US.

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“Singapore has and will continue to diversify our natural gas import sources, to ensure that we safeguard our energy security and resilience,” he said.

He noted that Singapore is also transiting to a higher mix of renewable energy. This includes accelerating the deployment of solar power, working with neighbours to develop a regional energy grid, and working with partners to develop emerging low-carbon technologies such as hydrogen and carbon capture, utilisation, and storage.

As for Malaysia’s ban on renewable energy exports, this will not prevent Singapore from importing renewable energy from other countries in the region through existing powerlines in Malaysia, said Gan.

The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), which commenced on June 23, is one such example. “Under the LTMS-PIP, we are importing up to 100 megawatts of renewable hydropower from Lao PDR through Thailand and Malaysia via existing interconnections for a two-year period,” he said.