A Resilient and Sustainable Energy Future: SIEW 2022 Global Launch

Mr Ngiam Shih Chun, Chief Executive, the Energy Market Authority of Singapore.

Profound shifts taking place globally are setting the tone for this year's Singapore International Energy Week (SIEW) theme. Titled "A Resilient and Sustainable Energy Future", the theme for SIEW 2022 was unveiled at the annual global launch event held on 18 May at the Fairmont Singapore.

Recent world events—together with geopolitical uncertainties, an ongoing energy crisis and the continued effects of the pandemic—have precipitated immediate, near-term energy security challenges and significantly impacted climate ambitions.

Now, more than ever, there is greater urgency to "press on" towards strengthening our move to a low carbon future, said Mr Ngiam Shih Chun, Chief Executive for the Energy Market Authority of Singapore (EMA). "It is therefore important for countries to develop and deploy a portfolio of bankable low-carbon generation sources to diversify power supply to hedge against security risks," he said in his Opening Remarks. He also called on the global community to further strengthen regional and global collaborations. "Together, we can work to shape a more resilient and secure energy future."

Mr Ngiam reiterated Singapore's commitment to reach net zero by or around mid-century. He shared that EMA had recently commissioned and released the Energy 2050 Committee report which affirms the net-zero feasibility for Singapore’s power sector by 2050.

This year also marks SIEW's 15^th anniversary and SIEW will a feature a calendar of exciting events to engage attendees as the events welcomes more participants back on site. This milestone will be commemorated by a slew of activities that will include:

• Co-hosting the inaugural Singapore-IEA Ministerial Roundtable on "Energy Security in a Low-Carbon World"
• Launching the new SIEWCast series: A podcast series featuring interviews with top energy leaders
• Introducing SIEW TechTables: Featuring discussions around the latest energy innovations and technologies
• A special commemorative SIEW 15^th Anniversary Event

Extraordinary times, extraordinary measures

The event also featured long-time stalwarts of SIEW, with the International Energy Agency (IEA)'s Executive Director Dr Fatih Birol delivering a Special Message.

Dr Fatih Birol, Executive Director, IEA.

"The extraordinary developments of the last two months have changed the energy world. It has given policymakers an even more complicated and more complex range of challenges to confront". He reminded all: "To make the transition to clean energy as quickly and as effectively as possible, international dialogue and cooperation will be crucial."

Dr Birol's message was followed by report launches from the International Renewable Energy Agency (IRENA) and IEA. Respectively, these covered "World Energy Transitions Outlook 2022 ", and "Southeast Asia Energy Outlook 2022".

Dr Binu Parthan, Head of Regions, IRENA.

Kicking off the first report was Dr Binu Parthan, Head of Regions, IRENA. Among his key takeaways was that 90% of all decarbonisation in 2050 will involve renewable energy, driven by electrification, energy efficiency, and green hydrogen.

Source: IRENA's "World Energy Transitions Outlook 2022 " report.

He acknowledged that many countries remain sceptical of how the energy transition will affect gross domestic product (GDP) growth moving forward. However, the report projected that the 1.5°C Pathway can provide a 1.4 percentage boost in global GDP. Jobs, too, will enjoy a positive benefit, as despite the pandemic, renewable energy jobs increased by half a million globally.

Mr Tim Gould, Chief Energy Economist, IEA.

IEA's Tim Gould, Chief Energy Economist, presented on the IEA Southeast Asia Energy Outlook 2022.

Source: IEA's "Southeast Asia Energy Outlook 2022" report. The Stated Policies Scenario (STEPS) explores the implications of today's policy landscape. The Sustainable Development Scenario (SDS) reflects the region's new climate policy ambitions.

His report pointed out that the region's reliance on fossil fuels to meet rising energy demand brings with it significant energy security risks in today's energy crisis. On today's policy settings, those risks are set to increase. He also noted: "For every dollar that was invested in renewable power in Southeast Asia in recent years, another dollar was invested in unabated fossil fuel generation."

To meet the region's net zero goals, Mr Gould said low emissions fuels will need to be a vital part of its energy future. On a brighter note, he sees huge opportunities ahead for Southeast Asia's potential as a supplier of critical minerals. "This could reinforce the region's position on a host of clean energy supply chains." This could also provide a major source of revenue, he added.

The need to think big

Rounding off the SIEW 2022 Global Launch event was a panel discussion with speakers from Siemens Energy, Sembcorp Industries, IRENA and IEA, which was moderated by SMBC’s Managing Director, Structured Finance Department, Asia Pacific Mr Luca Tonello..

In light of the confluence of factors causing one of the most severe global energy supply shocks ever to be felt, Mr Samuel Morillon, Senior Vice President, Asia Pacific, Siemens Energy, called on all to "think big". "When I say to think big, it means when we speak about technology, we need to think in terms of available technologies and technologies ready to be scaled up… and also technologies which will be affordable."

Among the technologies needed to drive the energy transition, hydrogen and carbon capture topped the list among the panellists, although these came with caveats.

(From left to right) Mr Luca Tonello, Managing Director, Structured Finance Department, Asia Pacific, SMBC; Mr Samuel Morillon, Senior Vice President, Asia Pacific, Siemens Energy; Dr Binu Parthan, Head of Regions, IRENA; and Mr Vickrem Vijayan, Head of Energy Commercial (Singapore), Sembcorp Industries; Mr Tim Gould, Chief Energy Economist, IEA (on-screen).

For Mr Vickrem Vijayan, Head of Energy Commercial (Singapore), Sembcorp Industries, "hydrogen has the potential to be for renewables what LNG is for natural gas". He believes hydrogen can unlock the potential for countries like Singapore to import low carbon energy. "But clearly, we need improvements around the carrier technology, the efficiency loss around the supply chain."

No less pressing were the roles that gas and energy efficiency can play in the energy transition. Mr Luca Tonello, , opined that natural gas cannot be completely ignored as a bridge fuel. While this has been lumped together with other "dirty" fossil fuels, he said: "Let's also find a way to be pragmatic about our policies such that we manage how we get there in the overall optimal way."

On energy efficiency, Mr Gould said: "It can be such an important tool to "insulate consumers from the effects of high (energy) prices." IEA's work with Southeast Asia also includes collaborating on the minimum energy performance standards for cooling.

The underlying message from the panellists, though, was that the transition should not be driven just by the public sector, but by a combination of public-private partnership investment. In staying the course, Dr Parthan urged: "The time frames are long term, and it's not to be confused by the short-term signals that we're seeing in terms of energy security or price points."