News analysis
Singapore drives Asean grid, pushes clean energy ambitions through partnerships during energy week
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New initiatives announced and agreements signed during the Singapore International Energy Week seem to signal the Republic’s move into the next phase of the energy transition: implementation.
ST PHOTO: KEVIN LIM
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SINGAPORE – Despite climate ambitions slowing down around the world, Singapore is pushing ahead with its drive for green energy through partnerships, while building momentum on the Asean power grid.
This was clear from the outcomes of the Singapore International Energy Week, held from Oct 27 to 31. The conference is an annual platform connecting policymakers, industry leaders and experts to share best practices and solutions within the global energy space.
While no major targets were unveiled, the new initiatives announced and agreements signed during the event seemed to signal the country’s move into the next phase of the energy transition: implementation.
In 2022, Singapore announced its commitment to reach net-zero emissions by 2050
Many agreements were signed during the conference that will facilitate knowledge exchanges that could help with workforce development – crucial if the fossil fuel-reliant power sector in Singapore is to transition to cleaner sources, including newer technologies.
For example, cooperation agreements were signed between Singapore and two US organisations during the week – with non-profit research group Battelle Memorial Institute and Idaho National Laboratory – to better understand the feasibility of deploying nuclear energy here.
While Singapore has yet to make a decision on deploying nuclear energy, Minister-in-charge of Energy and Science and Technology Tan See Leng has said that the country is “seriously studying” it
Collaborations with organisations that have deep expertise in this energy form can help to narrow gaps in areas such as technical knowledge and talent.
Other discussions were technical in nature – but paved the way to making abstract goals more concrete.
The realisation of the Asean power grid is one of the ways the region hopes to increase deployment of renewable energy.
Such a grid can facilitate cross-border electricity trade among countries in South-east Asia – where renewable sources are unevenly distributed – and provide a buffer against the intermittencies of renewables.
To realise this, however, know-how on electricity transmission over long distances with minimal energy loss is needed.
During the week, knowledge-sharing sessions on grid interconnectivity, including on technologies such as high-voltage direct current (HVDC) infrastructure, took place during the inaugural Asean-France and Singapore-Sweden forums.
Discussions on such technical details may not be the most appealing to non-engineers.
But they are crucial for the energy transition because they can help lay the groundwork for the Asean power grid, as they enable more efficient, long-distance electricity transmission between countries.
Europe is home to one of the world’s largest interconnected grids, with more than 400 interconnectors, and has expertise in HVDC technologies.
A regional grid also means there will need to be more discussions between energy regulators in the different countries, where energy market structures and pricing mechanisms are different.
Singapore inked an agreement with Australia’s energy regulator
“This is a very good sign that country leaders are trying to promote collaboration, and share more information and even data, to help to boost the deployment of these new technologies,” said Dr Zhang Bo, managing director of Concord New Energy Group, adding that this could help to address the talent gap.
Plugging the financing gap in the energy transition – a major obstacle that multiple panellists pointed to throughout the conference – was also heavily discussed.
Dr Tan said on Oct 28 that Asean requires an estimated US$6 trillion (S$7.8 trillion) to US$7 trillion in investments by 2050 to decarbonise the power, transport, buildings and industrial sectors.
“This staggering figure underscores the magnitude of the challenge we face. No single government can shoulder this burden alone,” he said.
While the private sector could step in to finance some of these clean energy projects, many of the panellists highlighted the need for more regulatory certainty and transparency to help make such projects more bankable, due to the high perceived risks and large upfront costs.
During the conference, it was clear that financiers were willing to be part of the energy transition, with many investors and financial institutions involved in the panels and forums.
“Attracting significant pools of capital will require clear regulatory frameworks and support for revenue mechanisms, as well as greater regional collaboration,” said Mr Kelvin Wong, managing director and global head of energy, renewables and infrastructure at DBS Bank.
One solution, they say, is financing mechanisms such as blended finance, which can help to de-risk investments.
Blended finance initiatives involve concessional capital with higher risk tolerance or even the willingness to accept losses, such as funding from philanthropies or multilateral development banks. These could lower the barriers to entry for investors to get involved in such projects.
It was not just problems that were discussed during the event. Solutions were, too, with examples of successful clean energy projects in the region cited.
The US$950 million Monsoon Wind Project – a cross-border wind energy project between Laos and Vietnam that commenced operations in August – was financed by multiple pots of capital, with the Asian Development Bank leading the way.
The conference also served to highlight a political point. In the face of the breakdown in multilateralism globally, and what appears to be climate backsliding in the West, the regional initiatives and partnerships announced at the conference clearly indicated that Asean is still committed to tackling climate change, and that it can still find partners to help in its quest to do so.
On Oct 28, the Middle East-based International Renewable Energy Agency (Irena) launched its new initiative, dubbed the Accelerated Partnership for Renewable Energy in South-east Asia, to scale up clean energy in Asean.
The initiative has several focus areas, including strengthening renewable energy infrastructure in the region, enhancing the green economies of the countries and mobilising private-sector investments, among others.
To ensure that this energy pivot gets the finance and investments needed, Irena will convene an investment forum in 2026 to “matchmake” bankable projects with interested investors.
The launch, alongside commitment to support the Asean power grid stated by various leaders across the week, helps to fuel the momentum on the regional grid.
It also comes on the heels of the Asean Ministers on Energy Meeting in mid-October, during which the five-year Asean Plan of Action for Energy Cooperation was endorsed and the Asean Power Grid Financing Initiative was launched.
Current Asean chair Malaysia – which has rolled out several initiatives to help the regional grid progress – will hand over the reins to the Philippines
During the conference, the Philippines’ Secretary of the Department of Energy Sharon Garin said on Oct 27 that the grid will be one of its priorities.
Dr Tan said that it is a “worrying time” for the energy transition, with global climate ambition appearing to be wavering.
But the partnerships and projects announced during the conference provide glimpses of how Singapore, as well as the region, is still pressing on to ensure that the bloc can benefit from secure, affordable and climate-friendly energy sectors.
