S'pore aims to import 30% of energy from green sources

It wants to do so by 2035; this allows it to tap low-carbon sources like wind, hydropower

Singapore plans to import around 30 per cent of its electricity from low-carbon sources, such as renewable energy plants, by 2035.

This move will allow the Republic - which lacks access to most renewable energy options other than solar - to tap sources such as wind energy and hydropower in other countries, and help to reduce the carbon footprint of its power sector.

The power sector in Singapore accounts for about 40 per cent of the country's carbon emissions.

Minister for Trade and Industry Gan Kim Yong said yesterday at the opening of the Singapore International Energy Week: "Importing low-carbon energy will be a key needle mover in Singapore's energy transition in the near to medium term."

The five-day conference is being held in hybrid format, with some participants showing up at the Sands Expo and Convention Centre.

But Mr Gan said the energy transition is challenging, even risky, if it is not managed well, citing the ongoing global energy crisis that has led to a spike in electricity prices here.

The energy crisis is caused by a mix of factors including increased demand for natural gas - a cleaner fuel than coal or oil - from countries switching to this fuel to reduce their carbon emissions.

Mr Gan said that when a country replaces large parts of its traditional energy sources with new ones in a short period of time, unanticipated security and reliability risks may arise. "This was evident in several energy markets where a shortage of renewable energy and an increased demand for gas caused electricity prices to rise," he said.

But Singapore will not be abandoning or slowing its energy transition, he said, adding: "The fate of our planet does not permit that."

Mr Gan said the transition to renewable energy, including importing electricity, may not mean cheaper electricity.

"While the cost of generation may be lower, the costs of transmission and backup, as well as necessary grid enhancements, will add to overall costs. This is an inevitable but necessary trade-off in the energy transition," he added.

Providing details on plans to import more renewable energy, the Energy Market Authority (EMA) said it will issue two requests for proposal for up to a total of 4 gigawatts of low-carbon electricity imports into Singapore by 2035. This is expected to make up around 30 per cent of Singapore's electricity demand then.

The first request for proposal to import up to 1.2GW of electricity will be launched next month, and the transmission is expected to begin by 2027.

The second one for the remaining quantities is expected to be issued in the second quarter of next year, and get rolling by 2035.

Proposals for electricity from coal-fired generation sources will not be accepted, said EMA. Coal is the dirtiest form of fossil fuel.

EMA chief executive Ngiam Shih Chun said the authority will work with potential importers to ensure that sufficient safeguards are put in place to mitigate against any prolonged supply disruptions.

"EMA will also look into diversifying the sources of imports to mitigate potential risks," he said.

Currently, more than 95 per cent of Singapore's electricity is generated from natural gas, which is imported into Singapore through pipes from its neighbours or in liquefied form from all over the world.

Singapore has moved to reduce emissions from this sector with plans to ramp up solar deployment in Singapore. Still, EMA's projections show that solar will likely meet only about 3 per cent of the country's total electricity demand in 2030.

The Republic is also investing in research into emerging low-carbon technologies.

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A version of this article appeared in the print edition of The Straits Times on October 26, 2021, with the headline S'pore aims to import 30% of energy from green sources. Subscribe