Singapore has made a resolute commitment to the net zero journey, recognising the urgency of addressing climate change and the nation's responsibility to contribute to global decarbonisation efforts. This was the resounding message delivered by Minister for Trade and Industry, Gan Kim Yong, during the Singapore Energy Lecture at the Singapore International Energy Week (SIEW) 2023.
"The theme of this year's Energy Week—"Energy Transition Towards A Net Zero World"—could not be more appropriate... We must redouble our collective efforts to green our energy sources, if we are to have any hope of addressing the climate crisis."
Minister Gan also unveiled Singapore's approach to creating a net zero energy system. Here are three key takeaways:
- Building a resilient power system for sustainable decarbonisation
To meet the future electricity needs of Singapore, the Energy Market Authority (EMA) has introduced a centralised process to attract private investments in new generation capacity. Minister Gan disclosed that a Request for Proposal (RFP) for a Combined Cycle Gas Turbine, scheduled for end 2027, has generated strong interest from the private sector and is set to close this month.
Additionally, EMA has strengthened regulatory requirements for electricity retailers to ensure market stability and to better protect consumers. EMA has further introduced a Temporary Price Cap mechanism to mitigate extreme price volatility. This has led to a substantial improvement in the stability of the electricity market.
Given that about 95 percent of Singapore’s electricity is generated using natural gas, EMA will adopt a more deliberate and coordinated approach to gas procurement. This approach involves aggregating the demand for gas from power generation companies and centralising the procurement and supply of gas for Singapore's power sector. This fundamental shift will establish a more stable and secure power system, facilitating Singapore's energy transition.
- Investing in promising low carbon alternatives
In the pursuit of greener power supplies and the decarbonisation of Singapore’s economy, Minister Gan stressed the importance of exploring low carbon alternatives. Amid rising global investments in hydrogen, ammonia, among the various hydrogen, has emerged as a technologically ready solution. It offers an established international supply chain, and the potential to be used as a direct fuel for power generation.
As a result, last December, EMA and the Maritime and Port Authority of Singapore called for Expressions of Interest (EOI) for a low carbon ammonia project, receiving 26 proposals from local and global companies.
Minister Gan further announced that six consortiums have been shortlisted to advance to the RFP phase. During this phase, a lead developer will be selected for one of the world's first commercial ammonia-based fuel projects, marking a significant step in Singapore's decarbonisation journey.
- Evolving energy systems to deploy low carbon energy sources at scale
Minister Gan highlighted three critical areas of focus for scaling energy systems. Firstly, the Government will play an active role in planning, coordinating and facilitating investments across the energy value chain. This will involve taking a long-term perspective and carefully staging the implementation of new sources of energy.
Secondly, regulators will reassess existing market mechanisms to enable the industry to pursue decarbonisation commercially. EMA will work closely with industry stakeholders to develop and implement the reforms needed.
Thirdly, the energy transition requires a rethinking of energy consumption and demand management. Consequently, the Government has implemented a variety of levers to encourage businesses and individuals to enhance energy efficiency, reduce energy consumption, and adopt green energy alternatives.
Minister Gan concluded that despite the challenges posed by the energy transition, Singapore remains committed to greening its energy sources and transforming the energy system. "The energy transition will be a complex and challenging journey. Singapore is committed to doing our part to green our power sources and transform our energy system because we believe that all of us, no matter how big or small, have a responsibility to leave behind a greener and more sustainable world for our children and grandchildren."
Events like SIEW play a crucial role in providing a vital platform for the energy community to network, share ideas, and spearhead new initiatives that will collectively advance Singapore's net zero journey.
Follow us for more timely updates on X (formerly Twitter) and Telegram.