SES panellists weigh "Options for the Future Energy Mix"

Energy security, economic factors, environmental concerns and safety issues will be the key influences on how governments and stakeholders view future energy policies. But it is diversification, especially the focus on renewable energy, which must be the basis for underlying energy strategy, agreed expert panellists at the Singapore Energy Summit (SES) today.

Discussing "Options for the Future Energy Mix", Adnan Z Amin, Director General of the International Renewable Energy Agency, noted that the dramatic fall in the cost of renewable energy could spur investments in renewable energy research. He cited Saudi Arabia's plans to generate 25 percent of its electricity through solar power by 2030. 

Speakers at the Singapore Energy Summit 2012 share their views on the future energy mix in light of the evolving global energy trends.

Dr Djadjang Sukarna, Secretary of Directorate General of the New Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, Indonesia, told the SES audience that Indonesia was committed to increasing the portion of renewable energy in its energy mix to 31 percent by 2030. He said nuclear energy had now become "the last option" for his country's energy mix. 

Masakazu Toyoda, Chairman and Chief Executive Officer of The Institute of Energy Economics of Japan, said Japan planned to halve its nuclear energy reliance by 2030. However, he highlighted the cost of renewable energy as one of the most significant challenges to its adoption.

Another important challenge to energy security is the question of whether there is enough energy supply to meet global demand. Martin J Houston, Chief Operating Officer and Executive Director of BG Group, contended that there is an "over-optimism to supply in supply projects" and that the emphasis on "the license to operate above and beyond everything else" is problematic. He reiterated that on the whole, "the world will remain supply-challenged" even as it considers itself to be in the "golden age of gas".

In looking for solutions to the the energy security, economic, environmental and safety challenges, Amin suggested that governments "integrate social and environmental issues" into the national energy mix. He argued that the goal of diversification should not just be about resilience, but also about addressing social and economic issues.

Peter Schwartz, Senior Vice President of Global Government Relations and Strategic Planning of Salesforce.com, pointed out that while natural gas may be a cleaner source of energy compared with oil and coal, small operators involved in the production of natural gas may not be as "technically adept" as they need to be, and that could create safety issues.

David DB Morrison, Chairman of Energy, Wood Mackenzie, suggested that current events need to be taken into consideration when considering the challenges to energy security. He cited examples such as the unrest in the Middle East, the Fukushima nuclear accident, economic challenges in Europe and the US, and the unknown impact of unconventional sources of energy on the energy market. Amin also contended that because of the "prolonged economic crisis", a country's energy model must be able to support current and future economic conditions.

More specifically on the diversification of Singapore's energy mix, Amin noted the city-state's progression, from a country that relied on oil to one that is now more dependent on cleaner natural gas. He suggested that while renewable energy such as solar and wind may not be appropriate in the context of Singapore's land constraints, the key to reducing Singapore's greenhouse gas emissions and enhancing its energy security is to improve energy efficiency.

BY : Dr Eulalia Han, Yuen Kah Hung and Augustin Boey