We thank Mr Ronald Lee Yew Kee for his letter (Find ways to produce cheaper electricity; March 14) in which he asked if electricity could be produced more cost-effectively.

In 2000, 77 per cent of electricity in Singapore was produced using fuel oil. Since then, the Energy Market Authority has introduced competition to the electricity market.

This has spurred the generation companies to switch to natural gas, which is cleaner and more cost-efficient.

Today, more than 95 per cent of electricity is produced using natural gas. We have also introduced greater competition in the gas market through the import of liquefied natural gas.

Mr Lee suggested deploying more solar energy in Singapore. Solar energy is green, helps to diversify our energy sources and adds to market competition.

We thus plan to raise adoption of solar energy from 126 megawatt peak (MWp) currently to 1,000 MWp beyond 2020, which is equivalent to powering 200,000 four-room HDB flats for a year.

Juliana Chow (Ms)

Director, Corporate Communications

Energy Market Authority