WELCOME REMARKS BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AT SINGAPORE ENERGY CONFERENCE DINNER HELD ON 4 NOV 2008, 7PM AT RAFFLES CITY CONVENTION CENTRE
Distinguished speakers and participants
Ladies and Gentlemen
A very good evening to all of you.I am pleased to join you this evening at the Singapore Energy Conference (SEC) dinner.Let me also take this opportunity to extend a warm welcome to our distinguished speakers and participants from overseas.
I trust you have had an engaging and passionate discourse on the topics of sustainable technology and business opportunities and risks, in the course of today’s keynote addresses and lectures.We can all look forward to continuing the conversation in an informal and casual atmosphere over dinner.
Preparing for a Future of Alternative Energy
A future with sustainable energy marks the dawn of a new age of opportunity and challenge for the global energy industry. The current global financial crisis and economic slowdown will undoubtedly be a dampener in the short run; but it cannot be a show-stopper or an impediment to the long term trends and developments in the sector. There will be opportunities for businesses across the spectrum of the energy value chain, from R & D to manufacturing, to trading and financial services – both in the conventional hydrocarbon-based and in the alternative energy sectors. Apart from the industry and its inherent drivers of growth and development, I think there are two key enablers to help us prepare for the future energy landscape.
First, banks and financial institutions play a critical role in facilitating this transition. The energy industry has high switching costs. Infrastructure investments are also not cheap. Despite the tightening of credit brought about by the present global financial turbulence, banks and financial institutions should not shy away from the energy sector, particularly clean technology.
The fundamentals remain strong and our carbon-constrained world is in dire need of disruptive technologies that will help us in the transition to a low-carbon way of life and doing business. The industry is not lacking in ideas. Banks and financial institutions need to understand this industry, its potential and prospects, especially in energy efficiency and clean technology investments and discern what constitutes a bankable proposition and sensible investment.
Second, governments have a material role to play as well. Hitherto, we have relied heavily on centralised generation for the majority of our electricity needs. However, as we prepare for this new age, there is a clear need for governments and regulators to prepare conventional electricity systems and transmission-distribution networks for the connection and integration of renewable energy sources, be they solar, wind or even waste-to-energy.
Governments need to co-fund R&D with the private sector.The regulatory environment must also ensure a level playing field and ease of connectivity for new energy sources. Each country will have its own set of unique geographical and natural resource limitations, and the sharing of experiences at such international fora like the Singapore Energy Conference is most helpful for all to learn from one another.
Conclusion
On this note, let me wish all of you a fruitful discussion tomorrow.I hope you will also enjoy and benefit from the other activities and events at Singapore’s inaugural International Energy Week.