The Republic is “seriously considering” importing electricity to add to the country’s energy mix, said Second Minister for Trade and Industry S Iswaran yesterday.
To that end, Singapore is reviewing its regulatory framework and studying various trading models that could facilitate electricity imports in the medium term, said Mr Iswaran.
Speaking at the Singapore Institute of International Affairs (SIIA) 4th ASEAN & Asia Forum, Mr Iswaran reiterated that the case for regional energy cooperation “has never been stronger”.
He noted the International Energy Agency’s 2009 World Energy Outlook had projected South-east Asia’s primary energy demand to expand by 76 per cent between 2007 and 2030.
Thus, Mr Iswaran felt that countries need to move faster to achieve energy connectivity.
“We need to promote a greater harmonisation of market regulation and standards across the region, which are prerequisites for energy market connectivity. Joint research and development in areas such as renewable energy and energy efficiency will also help to unlock more energy options for the region,” he added.
Mr Iswaran cited how projects such as the ASEAN Power Grid, which allow electricity trading among member states, can enhance infrastructural connectivity. And governments must take the lead towards energy connectivity.
As a first step, Mr Iswaran suggested each ASEAN country can study how greater regional energy connectivity can be fostered within their respective energy markets.
Minister for the Environment and Water Resources Vivian Balakrishnan, who gave a keynote address at the forum, said that while Singapore is focused on economic growth, it is imperative for the country to have a clean environment to serve as a sustainable base for development.
Asked by SIIA chairman Simon Tay on the role that Singapore plays in ASEAN on environment sustainability, Dr Balakrishnan said: “Whatever we do in Singapore on our own is not going to save the world or make a difference. The first thing is to have a deep-seated sense of reality of what we can do and can’t do.”
But Singapore is “always here to do our part” as a responsible member of the world community and would commit to reduce the country’s carbon footprint by 16 per cent if there is a worldwide legally binding agreement.
Singapore is now working towards reducing its carbon foot print by up to 11 per cent, said Dr Balakrishnan.
He reiterated the Government’s stand that it will not provide tax incentives or subsidies when asked by participants at the forum on whether the Government will do so to encourage investment in green technology.
“It requires certain mileage and certain choice in what technology or project to subsidise … and sometimes the road to hell is paved with good intentions,” said Dr Balakrishnan, who cited how bio fuel incentives in some countries have affected food prices and caused farmers to slash and burn crops to plant those which receive subsidies.
“It’s still an area worth debating but the government is not necessary in the best position to choose which thing to support and which not to support … and we have to be careful of unintended consequences,” he added.
