Speaking at the International Energy Agency’s (IEA) distinguished speaker series “Big Ideas” on 4 July, Singapore’s Minister for Trade and Industry (Industry) Mr S. Iswaran shared that energy policy is key in the global effort to meet the demands of an increasingly carbon-constrained world, especially for Asia.
Mr Iswaran emphasised Singapore’s commitment to the global fight against climate change, reiterating the city-state’s pledge to reduce its emissions intensity by 36% from 2005 levels by 2030. He also shared how Singapore is playing its part in the low-carbon transition in Asia and the world.
SINGAPORE AS GLOBAL CITIZEN
Singapore’s compact size and regulatory expertise make it an ideal “Living Lab” to test the feasibility of new sustainable energy technologies and processes, before scaling them up for deployment regionally.
The city-state is currently home to about 100 local and international clean energy companies, providing them with the essential ingredients for innovation, such as R&D capabilities and a conducive business environment.
Singapore also plans to develop as a regional gas-trading hub, working collaboratively with other countries to develop a platform for price discovery and more efficient market outcomes.
The establishment of a well-coordinated and connected gas market in Asia will not only enhance regional energy security; but also promote the adoption of natural gas as an alternative to more carbon-intensive fuels.
In addition, Singapore plays an active role in international forums such as ASEAN, APEC and the G20. This forms a key part of its energy strategy, which is to learn from and contribute to the international discourse on best practices.
Singapore also hosts the annual Singapore International Energy Week (SIEW), a platform to further international energy cooperation by bringing together key stakeholders in the energy sector to discuss global energy issues.
A COMPETITIVE GLOBAL CITY IN A CARBON-CONSTRAINED WORLD
Mr Iswaran then outlined Singapore’s three-pronged energy strategy to balance the energy trilemma of environmental sustainability, energy security and economic competitiveness – and achieve its climate change pledge.
The first prong is promoting efficient energy use. The Singapore government continues to drive the adoption of energy efficient technologies using a combination of regulations and incentives.
Energy efficiency standards have been set for new and existing buildings, and financial support is provided for industrial energy efficiency. Singapore also allows the retail market to set the energy price without any subsidies. As such, the price reflects resource scarcity and informs energy consumption by firms and households.
As the second prong, Singapore encourages competition in its energy markets, viewing it as vital for spurring innovation, improving efficiency and keeping prices affordable. The country’s gas and electricity markets have been progressively liberalised since the 1990s.
As a result of competition, power generation companies have been encouraged to switch from oil-powered steam plants to the more efficient Combined Cycle Gas Turbines (CCGTs) fuelled by natural gas. Today, more than 95% of Singapore’s electricity is generated using natural gas.
Singapore is also exploring renewable energy options to reduce carbon emissions – of which, solar PV currently holds the greatest potential.
The final prong is continued investment in energy technology and innovation. The government has funded innovative research proposals across both the power supply and demand sectors, and established several demonstration and test-bedding platforms to translate research into real-world applications.
THE IMPORTANCE OF INTERNATIONAL COLLABORATION
Singapore is not alone in its climate change efforts. The city-state has been working closely with the IEA and looks forward to expanding this collaboration in the future, said Mr Iswaran.
International energy organisations like the IEA are becoming an increasingly important part of the global energy architecture. They help to maintain global energy security, facilitate international partnerships, build and spread best practices and expertise, and shape a sustainable energy future.
Singapore and IEA shares an excellent working relationship bilaterally, as well as in multilateral forums such as ASEAN, APEC and G20. Dr Fatih Birol, Executive Director of IEA, will also be actively participating at SIEW by delivering a keynote at the Singapore Energy Summit and launching the IEA Medium Term Renewable Energy Market Report. In addition, the IEA will co-host a SIEW Thinktank Roundtable with the EMA on regional power market integration.
A potential next step for the two is a partnership to develop capabilities in areas such as low carbon technologies and energy efficiency in ASEAN, highlighting Singapore’s readiness to work with key partners to contribute towards the region’s efforts for a more sustainable energy future.
In summary, Singapore puts energy policy at the heart of global climate change solutions. The city-state’s policies to promote energy efficiency, competitive markets and R&D, as well as the use of renewable energy, provides a template for fighting climate change without compromising economic growth.
By : EMA