Second Minister for Trade and Industry S Iswaran on Friday said that as Singapore restructures its economy, it has to continue to strengthen its energy security.
This is to ensure that Singapore has a reliable and competitively-priced energy supply.
Mr Iswaran assured Members of Parliament that his ministry will continue to promote competition in the energy market.
“Over the next few years, our net generation capacity will increase by more than 2,000 MW or about 20 per cent of our installed capacity. The new capacity will be generated by the more efficient Combined Cycle Gas Turbines. This will enhance competition and help exert downward pressure on electricity prices,” he said.
Apart from keeping energy prices affordable, the government will also look at new sources of energy and fuel types.
For instance, the upcoming liquefied natural gas terminal at Jurong Island will enable Singapore to access the global gas market when it opens in the second quarter of next year.
Mr Iswaran said that in the medium term, electricity imports could also allow Singapore to tap on energy options currently unavailable in Singapore and it is studying how it can be implemented.
If successful, this could contribute to a wider effort to develop an ASEAN Power Grid in the longer term.
As for nuclear energy, Mr Iswaran said the government is conducting a pre-feasibility study.
But it is a long way from making a decision on it.
To encourage businesses to conserve energy, the government will allocate about S$100 million to extend the Economic Development Board’s Grant for Energy Efficient Technologies (GREET), and pilot repayable financing schemes.
It will also conduct trials on selected businesses and households in Punggol to gauge the effectiveness of smart metres, in-home display units and applications, which allow consumers to monitor electricity consumption in real-time.
Low Thia Khiang, MP for Aljunied GRC, asked: “Besides the new initiative in Punggol monitoring the use of electricity for households, would the government also extend the same help or assistance to households to educate them how to use energy or electricity efficiently and thereby save some electrical costs?”
In response, Mr Iswaran said; “This is something we are totally committed to…An important part of this effort is indeed the pricing of electricity. Because if we subsidise electricity, then we are dulling the instincts of the average consumer in appreciating what is the true cost of this very scarce and precious resource.
“So our pricing strategy is an important part of this whole mix of education, targeted subsidies and industry developments on the supply and demand side in order to try and manage our energy constraints and ensure we have sustainable and competitive energy supplies.”
Mr Iswaran said another impetus for the power sector is qualified manpower.
He said there will be more career opportunities for Singaporeans as the power sector renews itself.
Mr Iswaran said a Power Sector Manpower Taskforce has also been set up to develop talent and identify skills required to build longer-term growth in the sector.
The taskforce is chaired by Senior Adviser of Singapore Power, Quek Poh Huat, and includes representatives from industry, institutions of higher learning and the unions.
