The role of businesses in accelerating the energy transition
THE world is currently facing its most severe energy crisis since the 1970s. Rising energy prices and the ongoing Ukraine conflict have a complex impact on the energy transition, exacerbating the energy trilemma: that is, the tradeoffs in obtaining energy that is secure; accessible and affordable; and environmentally sustainable.
One thing is certain. Even as recent geopolitical developments highlight the importance of ensuring energy security to support the needs of a country’s people and economy, we must continue to invest in and accelerate the adoption of low-carbon energy.
Businesses, both as energy users and solution providers, play a crucial role in balancing the tradeoffs and contributing to Singapore’s aspiration of achieving net-zero in a commercially viable way. This requires a whole-of-industry effort in collaborating with policymakers and regulators to grow the low-carbon energy ecosystem, with several pathways to achieve this.
Importing low-carbon electricity from regional sources
A recent report by the Energy 2050 Committee, commissioned by the Energy Market Authority of Singapore, concluded that for long-term sustainability, land-scarce Singapore will need to prioritise importing electricity that is generated using low-carbon or renewable energy. This is viable on a large scale as the average levelised cost of electricity for most forms of renewable power in the Asia-Pacific – that is, the average net cost of generation over a system’s lifetime – is forecast to decrease by 2030 and to become competitive with gas.
Industry players in Singapore are already developing low-carbon energy importation networks with other Asia-Pacific countries.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Singapore’s first cross-border power trade of renewable energy commenced in June this year between Keppel Electric and Electricite Du Laos under the Laos-Thailand-Malaysia-Singapore Power Integration Project, which imports up to 100 megawatts (MW) of renewable hydropower from Laos to Singapore using existing connections.
Such an endeavour is scalable and supports Singapore’s plans to import up to 4 gigawatts of low-carbon electricity by 2035. In addition, the insights and learnings from the trial will pave the way for the wider Asean Power Grid vision.
Developing alternative low-carbon solutions
To supplement low-carbon electricity imports, Singapore is also driving the adoption of alternative low-carbon energy. For example, companies and ecosystem partners are developing the end-to-end supply chain between export hubs and energy buyers for the production, transportation and use of green hydrogen and ammonia from countries like Australia.
Industries will need to prepare for the coming hydrogen economy. Businesses and regulators need to work on the measures required to de-risk and scale up the use of hydrogen and low-carbon fuels. These include classification standards and certification to ensure the origin and quality of the low-carbon molecules, and technical assurance for their transportation and use.
Singapore has successfully transitioned to using 95 per cent natural gas – the cleanest fossil fuel – for electricity generation today, up from just 26 per cent in 2001. The country is pushing for more efficient power generation while actively transitioning to low-carbon energy sources.
To this end, Keppel Infrastructure recently announced the building of Singapore’s first hydrogen-ready 600MW combined cycle gas turbine power plant, which will have superior fuel efficiency and the lowest emission intensity of power plants in Singapore.
Even as we broaden access to low-carbon energy sources, there will be hard-to-abate industries where carbon capture, utilisation and storage (CCUS) technologies can instead be used to reduce or remove carbon emissions. For instance, waste-to-energy plants which integrate CCUS solutions have the potential to generate carbon credits or even be carbon-negative.
Novel business models that support energy efficiency
Industries and commercial end-users must champion energy efficiency and technology upgrades. Though these are low-hanging fruit, they have compounding effects on carbon emission intensity over the asset lifecycle and shape energy consumption behaviours in the long term.
One common challenge is the initial capital investment required. Perennial Business City – the first super low energy building operating with renewable energy in the Jurong Lake District – is being built with super-efficient chiller systems, solar panels and electric vehicle (EV) charging stations.
Yet, the asset owners can avoid the need for upfront capital investment through a recurring subscription, as part of Keppel Infrastructure’s energy-as-a-service offering. Such business models by service providers can help customers jump-start the adoption of sustainable energy solutions with an economical lifecycle cost.
Leveraging emerging technologies and innovations
With the proliferation of distributed energy resources (DERs) – such as solar generation systems, battery energy storage systems and EVs – businesses and consumers have more options to harness renewable energy, achieve energy self-sufficiency or even sell any surplus electricity generated.
One example is the microgrid to be installed at Singapore Institute of Technology’s future campus, in which the electricity generated from solar panels will account for 4 per cent of the campus’ total energy needs.
However, there are still challenges faced in integrating DERs and microgrids with the existing power grid without disruptions.
The Keppel Infrastructure-NUS Low Carbon Living Laboratory is exploring solutions such as an AC/DC hybrid microgrid and smart EV-to-grid charging algorithm, to increase the flexibility, reliability and efficiency of a diversified power grid. The Energy 2050 Committee report also suggested that Singapore transforms its grid using new technologies and storage capabilities that support the decarbonisation of the power sector.
The energy transition is upon us. With developments in renewables, low-carbon energy sources and CCUS; emerging technologies and innovations; as well as novel business models that reduce or eliminate upfront cost, there is an increasing array of options for governments and the private sector as they journey to net zero.
Playing a key role in this transition, businesses can serve as a source of innovation as they collaborate with other stakeholders to accelerate the building of a commercially viable low-carbon future.
The writer is the chief exective officer of Keppel Infrastructure.
Share with us your feedback on BT's products and services
