Innovation and Collaboration Key to Creating a Low-Carbon Energy Future: SIEW 2020 Global Launch

The Energy Market Authority of Singapore launched the theme for the 13th Singapore International Energy Week (SIEW) - “Creating our Low Carbon Energy Future Together”. 

Announcing the new theme during its inaugural webinar at the SIEW 2020 Global Launch, Mr Ngiam Shih Chun, Chief Executive of the Energy Market Authority of Singapore, noted that the ongoing COVID-19 pandemic can be an opportunity for countries to accelerate their transition to a more secure and sustainable energy future. 

“Our economies will recover, as will consumption and manufacturing activities, which will lead to increased energy demand. How can we seize new growth opportunities and work together towards a low carbon energy future?” Mr Ngiam said. 

Mr Ngiam also shared that Singapore is taking steps to achieve our low carbon energy future through increasing its own solar deployment to at least two gigawatt-peak (GWp) by 2030. “We have since achieved our 2020 solar deployment target of 350 megawatt-peak (MWp) in the first quarter of this year.”

For SIEW 2020, Singapore and the International Energy Agency (IEA) will co-host the 2nd Global Ministerial Conference on System Integration of Renewable Energy. This year’s SIEW will also see S&P Global Platts host a new conference on LNG and Hydrogen Gas Markets in Asia, with a special focus on growth and development of hydrogen in the region.

At the webinar, Mr Neil Atkinson, Head of Oil Industry and Markets Division, International Energy Agency (IEA); and Mr Tan Cheng Guan, Head of Renewables & Environment, Sembcorp Industries joined Ms Goh Swee Chen, President of the Global Compact Network Singapore on a wide-ranging discussion on the energy challenges confronting the industry. 

These three key insights framed the discussion:

1)        The future of oil demand and supply 

Mr. Neil Atkinson discussed Asia’s energy outlook, sharing takeaways for the region from the agency’s latest Oil 2020 Market Report. He said that there was a chance for the slump in oil demand to improve in the second half of 2020, depending on the easing of restrictions in many cities. 

However, Mr Atkinson cautioned that “for 2020, oil demand is likely to fall by just over 9 mb/d versus the 2019 levels… most of the growth in oil demand that we have seen in the 2010s are eliminated. This is a truly historic and quite extraordinary event.” Mr. Atkinson also noted that preliminary findings from the IEA’s World Energy Investment Outlook suggest the investments in the upstream oil and gas sector are likely to fall considerably in 2020. On the other hand, renewables are faring much better especially in power generation during this period.  

2)        The role of renewables in fast-tracking a low-carbon energy future

The pandemic presented an opportune moment for the global energy community to accelerate the energy transition to a more secure and sustainable energy future. 

Mr Ngiam shared that to support its ambitious renewable energy targets, Singapore will expand its Energy Storage Systems to 200MW beyond 2025, to mitigate intermittency issues. 

Mr Tan Cheng Guan highlighted the four key strategies of Sembcorp Industries to realise a low carbon energy future. This includes lowering the company’s carbon footprint, leveraging technology to improve renewable asset performance, creating novel business solutions for customers, and collaborating with partners and stakeholders. 

Investments into research and development in renewables are likely to remain strong, noted Mr Tan. With technological advancements, renewables have also reached parity, boosting its adoption. “Combined with the focus on self-sufficiency and energy security as a result of the current COVID-19 pandemic, we believe renewables will grow even stronger in the future.” 

3)         Continued investments in clean energy are key

During the interactive Question and Answer (Q&A) session moderated by Ms Goh, both Mr Tan and Mr Atkinson emphasised that despite the toll of COVID-19, it remains critical for companies to continue putting investments into renewable and low-carbon energy.