Post-Ukraine invasion: Energy realism and the implications for Singapore

THE terrible events of the Russian invasion of Ukraine have forced us all to be concerned about what is really important. The invasion constituted the largest military attack of one state against another in Europe since the Second World War. We might be forgiven if we cite Samuel Johnson's adage that nothing better concentrates the human mind than the hangman's noose. When a larger, more powerful nation attacks a smaller neighbouring country, small sovereign states immediately take notice of the verities of global geopolitics. Singapore is no exception, and it recently announced sanctions on key Russian banks.

Loss in Energy Security in Western Europe Germany's colossally-expensive Energiewende ("energy transition") strategy was adopted in 2010, aiming for a rapid transition away from fossil fuels towards reliance on renewables for all of the country's energy needs and a net-zero emissions target by 2050. In a very short period, Germany shut down most of its coal and nuclear plants, and expected solar and wind energy to replace its dependence on fossil fuels.

The results have not been encouraging, with the country having the highest electricity prices in the world and an increasing incidence of energy poverty with mounting household utility bills. Even more ironically, it registered a poor performance in its decarbonisation target as the rapid shutdown of nuclear power after the Fukushima incident led to an increase in the use of coal and natural gas. Above all, it led to Germany's over-reliance on Russian energy imports.