Singapore to continue decarbonising electricity generation with new solutions

Benjamin Cher
Published Mon, Oct 25, 2021 · 10:49 AM

SINGAPORE remains committed to decarbonising its power sector as it seeks to do its part in addressing climate change, according to Trade and Industry Minister Gan Kim Yong.

The Republic is exploring solutions beyond its shores, namely importing electricity from low-carbon energy generators overseas. This is a "key needle mover" in the country's energy transition in the near to medium term, according to Gan, with plans to import up to 30 per cent of Singapore's electrical supply from renewable energy sources overseas.

"I'm pleased to announce that Singapore plans to import up to 4 gigawatts (GW) of electricity by 2035. This will constitute around 30 per cent, or one-third, of Singapore's electricity supply," he said in an opening keynote speech at the Singapore International Energy Week on Monday (Oct 25).

The city-state currently relies on natural gas to generate 95 per cent of its electricity, and will provide grants for power generation companies to adopt more energy-efficient and carbon-efficient technologies. It is also ramping up other efforts such as harvesting solar energy, with the recent launch of the world's largest floating solar farm at Tengeh Reservoir. (see amendment note)

"With the power sector accounting for almost a quarter of global emissions, decarbonising electricity generation is at the core of the global climate change effort," said Gan.

The Energy Market Authority (EMA) intends to issue two requests for proposals (RFP) for importing 4GW of electricity into Singapore from various sources including natural gas, solar and waste-to-energy power generators. The first RFP will be launched in Nov 2021 and the next some time in Q2 2022.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

There is also work being done to set up a regional power grid with the ASEAN nations. Energy ministers from Laos, Thailand, Malaysia and Singapore reaffirmed their commitment to commence the Lao PDR-Thailand-Malaysia-Singapore Power Integration project in 2022.

However, this would not necessarily mean cheaper electricity, Gan warned.

Singapore will not rely on electricity imports alone, and will also be looking to develop and trial new energy solutions to meet its long-term energy needs and low-emissions target. The government will be awarding S$55 million to research projects that will improve the technical and economic feasibility of low-carbon technologies. There will be a focus on hydrogen and carbon capture, utilisation and storage, with the funding amount increased from S$49 million last year.

Gan notes that this energy transition journey is challenging and would be risky if not managed well. Even with the shortage of renewable energy and demand for gas causing electricity prices to spike, Singapore should not abandon or slow the transition.

The impact of greenhouse gases has impacted the island nation with more extreme weather, despite Singapore only contributing 0.1 per cent of global greenhouse gas emissions,

"Singapore is therefore very invested in the success of the global energy transition and is committed to playing our part to combat climate change," said Gan.

READ MORE:

Amendment note: An earlier version of this article stated that the world's largest solar farm was at Tengah Reservoir, it is instead at Tengeh reservoir.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here