Singapore’s energy future has been charted out by a high-level committee which envisions diversifying the city-state’s energy sources with coal and electricity imports in the medium-term, and nuclear energy in the long run.
The subcommittee on energy of the Economic Strategies Report also recommended that Singapore supply five per cent of its peak electricity demand from renewables by 2020.
Speaking to reporters this week, Senior Minister of State at the Ministry of Trade and Industry, Mr S. Iswaran moved to assure citizens that the prospect of using nuclear energy is “not imminent”, not even within the next five to 10 years.
He acknowledged on Wednesday that “naturally, people are going to be concerned”, but emphasised that this prospect is in the “very distant future”. The Government should start the process of studying its feasibility now “because this is very complex and complicated”, he said to the media.
Mr Iswaran co-chaired a 17-member sub-committee looking at Singapore’s energy resilience and sustainable growth, as part of the Economic Strategies Committee (ESC) report released on Monday.
It recommended that the Government study the feasibility of nuclear energy and, in the medium term, consider coal and electricity imports to diversify energy sources.
Mr Iswaran noted that neighbours Thailand, Vietnam, Indonesia and Malaysia are building or considering nuclear plants so it is “important that Singapore is well abreast of developments in the sector”.
He cited International Energy Agency studies which forecast strong global growth in the number of nuclear energy plants. “If that’s indeed the case, we should understand what it means, and whether there’s scope for us to participate.”
Closer on the horizon are sources such as coal and imported electricity generated from regional renewable sources such as geothermal or hydro-power, he noted. Mr Iswaran said that although coal generates relatively more carbon emissions than other fuels, new technology (also called clean-coal) has improved the environmental standards of coal-fired plants.
He added that electricity could be imported in the form of an Asean cooperation or a bilateral deal.
The private sector could also play a big role as this presented huge potential investment opportunities, he said.
Other ESC suggestions included consolidating the energy systems on Jurong Island to make them more efficient, such as harnessing innovative systems-level solutions to provide low-carbon solutions for the petrochemicals industry.
Energy will also be put at the top of the list for research and development, with money pumped not just into renewable energy sources such as solar, but also to “demand-side applications” such as energy efficient products and solutions, said Mr Iswaran.
Energy analysts said yesterday that the recommendations were timely and that it was important for Singapore to diversify its sources to mitigate the impact of volatile energy prices.
Dr Michael Quah, principal fellow at the Energy Studies Institute here, said advanced technologies meant it was possible that emissions from pollutants like coal “could be reduced at some cost”. “The real issue is that energy security comes from energy diversity,” he said. The idea of importing power from regional renewable resources is one that should be pursued, as it would lead to greater regional collaboration, he added.
The report also recommended prioritizing efficiency as a key ingredient to transforming Singapore into a smart, green economy.
It said a mix of carrot-and-stick approaches should be used to help Singapore become leaner and greener. Companies could be legally required to conduct energy audits to optimise energy use, while incentives and education will be on offer to help people and businesses make changes, its report said.
“When you talk about a system where energy is priced right, there must be clear market-based signals, and there must be incentives. We must have some of that already in place, some regulation that may require audits (and) a regular corporate commitment to reviewing these things,” said Mr Iswaran.
Energy conservation and efficiency are important as prices of energy are unlikely to come down in the future, he added. “Relative to other commodity goods, energy prices are rising. It reflects the demand-supply dynamics on the global level. What we want to avoid is the situation where… we are unduly exposed to price shocks or volatility.”
At the centre of Singapore’s economy will be Intelligent Energy Systems, or smart grids, allowing communication between consumers and grid operators – leading to greater efficiency.
For example, households will have smart meters in homes telling them when electricity is cheaper or more expensive, said Mr Iswaran. “Consumers can tune the usage of various appliances according to the price signals… and based on usage, we can find what optimises our expenditure on energy.”
Part of managing energy consumption also has to do with its price. Such price signals could take the form of carbon taxes or carbon trading regimes such as those in other countries, said the report.
“These are the questions we need to think about… but our objective on pricing is to make sure that when people see a price for energy, the price captures all the externalities,” he said.
Carbon emissions will remain a top issue due to global concerns on climate change, and Singapore must be prepared for any future global agreement on this issue, said the report. Mr Iswaran added that if any such new measures come in, offsets in the form of financial aid will be given to low-income households.
The report yesterday also said incentives will be put in place to support clean and efficient technologies in transportation, such as replacing the bus fleet in phases to efficient, diesel-hybrids. In particular, the current green vehicle rebate could be refined to make it more effective.
The report also recommended the Government to continue building up skills and talent to grow a green collar workforce.
Recommendations at a glance:
Become a smart energy economy
- Improve energy security and resilience with through the diversification of energy sources
- Invest in critical economy-wide energy infrastructure
- Step up measures to promote energy efficiency in industry, buildings and transport.
- Price energy to reflect real costs and constraints – to study how best to implement a carbon pricing scheme in anticipation of future carbon constraints should there be a global agreement on climate change.
i. Study the feasibility of nuclear energy for the long-term.
ii. Explore new sources such as coal and electricity import
iii. Continue to support the development of renewable energy sources.
i. Intelligent Energy Systems (IES) to allow consumers to make informed choices about their energy consumption and develop.
ii. Jurong Island as an energy-optimised industrial cluster.
