SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE AND SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE SINGAPORE INTERNATIONAL ENERGY WEEK 2011 ON MONDAY, 31 OCTOBER 2011, 0900 HRS AT THE SUNTEC CONVENTION CENTRE
Mr Nobuo Tanaka,
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
Introduction
A very good morning to all of you, and welcome to the Singapore International Energy Week (SIEW) 2011 - a platform which brings together policymakers and industry thought-leaders to discuss key issues in the energy sector.
Uncertain Global Energy Landscape
This conference comes at a time of considerable flux in the global economy and energy landscape. Recently, the World Energy Council noted that the outlook for the sustainable supply and use of energy has become more uncertain in 2011, stemming from several key developments. The persistent fiscal and financial difficulties in the US and Europe have increased economic uncertainty and clouded the trends for future energy demand. The prospects for a global climate framework remain unclear, with climate change negotiations proving to be challenging. Meanwhile, the recent spate of unrest in the Middle East and North Africa, has generated doubt over the reliability of energy supplies from the region. And, the Fukushima nuclear accident has prompted countries across the world to urgently review their energy policies, leading some to shift their focus from nuclear power to greater reliance on gas and renewable energy.
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
Introduction
A very good morning to all of you, and welcome to the Singapore International Energy Week (SIEW) 2011 - a platform which brings together policymakers and industry thought-leaders to discuss key issues in the energy sector.
Uncertain Global Energy Landscape
This conference comes at a time of considerable flux in the global economy and energy landscape. Recently, the World Energy Council noted that the outlook for the sustainable supply and use of energy has become more uncertain in 2011, stemming from several key developments. The persistent fiscal and financial difficulties in the US and Europe have increased economic uncertainty and clouded the trends for future energy demand. The prospects for a global climate framework remain unclear, with climate change negotiations proving to be challenging. Meanwhile, the recent spate of unrest in the Middle East and North Africa, has generated doubt over the reliability of energy supplies from the region. And, the Fukushima nuclear accident has prompted countries across the world to urgently review their energy policies, leading some to shift their focus from nuclear power to greater reliance on gas and renewable energy.
These events have caused increased volatility in energy markets and prices, heightening the policy challenge of governments to secure reliable and affordable energy supplies to sustain economic growth.The theme of this year’s Singapore International Energy Week, “Securing our Energy Future”, resonates with the prevailing concerns of governments and is particularly pertinent to Singapore, given our size and almost complete reliance on imports for our energy needs.
This morning, I would like to share with you
the strategies we in Singapore are adopting to meet this energy
challenge.I also look forward to learning from your views and
ideas, at the panel sessions later today and throughout this week,
on how we may augment this
strategy.
Diversification
tion is a cornerstone of Singapore’s energy strategy to ensure that we continue to have secure and competitively-priced energy supplies. You would already be aware of our ongoing effort to bring Liquefied Natural Gas (LNG) to Singapore as an additional energy source. Our LNG terminal is due to commence operations by the second quarter of 2013, and the take-up for LNG has exceeded expectations.
Diversification
tion is a cornerstone of Singapore’s energy strategy to ensure that we continue to have secure and competitively-priced energy supplies. You would already be aware of our ongoing effort to bring Liquefied Natural Gas (LNG) to Singapore as an additional energy source. Our LNG terminal is due to commence operations by the second quarter of 2013, and the take-up for LNG has exceeded expectations.
Beyond LNG, we continue to explore more
diversification options. Earlier this year at the Asia and ASEAN
forum, I mentioned that Singapore is considering electricity
imports. We have been carefully studying the possibility of
importing electricity from the region as an option for the medium
term.
There are clear and mutual benefits to
electricity trade. For one, it creates a larger market for
electricity producers, enhancing the security of demand and
facilitating investment in the exporting country. The importing
country, in turn, can benefit from another competitive source of
electricity supply. Electricity trade also allows countries to
access new energy options that may be unavailable or economically
infeasible domestically. These, in turn, could enhance national
energy security by broadening the energy mix, both in terms of
geographical source as well as fuel
type.
There are potential benefits for consumers as
well as electricity imports will further spur competition to the
benefit of households, industries and businesses.
Furthermore, bilateral or plurilateral
electricity interconnections which are developed among neighbouring
countries to facilitate electricity imports, could also
contributetowards a larger regional effort to strengthen energy
connectivity through an integrated ASEAN Power
Grid.
In Singapore, the Government has been
studying possible models for the introduction of electricity
imports that can bring benefits to consumers, without compromising
the reliability of our power system. Today, I am pleased to
announce that the Energy Market Authority will commence a public
consultation exercise, by the end of this year, on the regulatory
framework to govern electricity imports to Singapore. Through this
consultation, we aim to gather views from industry players and
other stakeholders on how we might import electricity into
Singapore, and how such imports can be integrated into our market
so as to benefit our consumers. The Government will consider the
views from all quarters seriously, and incorporate viable proposals
into the design of the eventual
framework.
Apart from electricity imports, we will
continue to explore other options, such as solar energy, to
diversify our supply. In that regard, I am glad to note that events
such as Photovoltaic Asia Pacific Expo are part of this year’s
SIEW. Such events are useful for the community to share the latest
developments in the field, and to identify opportunities for
potential co-operation and
research.
Managing Energy Demand
Managing Energy Demand
We also engage our industries to promote
energy efficiency. For example, as part of a broader initiative to
grow our chemicals industry, we are working with our chemicals
companies to explore measures to optimise energy use on Jurong
Island. A study was recently conducted for a group of companies in
the complex of the Petrochemical Corporation of Singapore (PCS) to
seek opportunities for energy efficiency improvements. These
improvements, if implemented, will help reduce business costs and
render the companies more competitive in the longer term. In
addition to industrial engagement, the Government also administers
programmes which encourage energy efficient design and technology,
and provides training support for energy management
professionals.
Encouraging
Innovative Energy Solutions
The third prong of our energy strategy is to encourage innovation
and the development of technology that can help us overcome our
energy constraints. To that end, we seek to be a “Living Lab” for
innovative energy solutions. The Government supports various
projects and programmes that test new energy technologies that
could be adopted in Singapore in
future.
One
example is our electric vehicle (EV) test-bed programme led by the
Energy Market Authority (EMA) and the Land Transport Authority
(LTA). Launched in June this year with industry partners
Mitsubishi, Daimler and Bosch, the test-bed aims to assess
the costs, benefits and feasibility of adopting
EVs in Singapore; and to examine future EV infrastructure
requirements.
Today, I am pleased to announce that the
Renault-Nissan Alliance will be joining this test-bed as well. With
the addition of the Renault Fluence and the Nissan Leaf,
participants in the test-bed will have a wider variety of Electric
Vehicles to choose from.The different EV platforms will also add to
the breadth of the test-bed, and enhance the rigour of its
findings.
Another example of our efforts to promote
innovation is our micro-grid test-bed on Pulau Ubin, an offshore
island northeast of Singapore. This test-bed will pilot the use of
clean energy resources, such as biodiesel, to generate baseload
electricity supply. It will also help us better understand the
impact of intermittent renewable energy sources on our power
system, and prepare Singapore for a future where renewable energy
sources become a more significant part of our energy mix. EMA has
appointed a Singapore-based consortium comprising two companies,
Daily Life Renewable Energy and OKH Holdings, to design, build, own
and operate this micro-grid. We are encouraged by the participation
of Singapore companies and hope to see more of them lead similar
efforts, at home and in the region.
Conclusion
Let me conclude by drawing on a few points. Singapore, as a small country in a volatile energy environment, faces considerable challenges in securing reliable and competitively priced energy supplies to sustain our growth. To meet this challenge, we have adopted a multi-pronged strategy to manage our energy balance and to develop technologies that can help put us on a firmer footing looking ahead. As part of our effort to continue diversifying our energy mix, we are seriously considering importing electricity as a medium-term option. I strongly encourage industry players and other stakeholders to be forthcoming with your views in response to EMA’s upcoming public consultation on the regulatory framework.
I am heartened to see so many of you here at this year’s SIEW. I commend the organisers for putting together a comprehensive suite of events, which I am sure will provide much food for thought.I wish you all a productive week ahead. Thank you.
Conclusion
Let me conclude by drawing on a few points. Singapore, as a small country in a volatile energy environment, faces considerable challenges in securing reliable and competitively priced energy supplies to sustain our growth. To meet this challenge, we have adopted a multi-pronged strategy to manage our energy balance and to develop technologies that can help put us on a firmer footing looking ahead. As part of our effort to continue diversifying our energy mix, we are seriously considering importing electricity as a medium-term option. I strongly encourage industry players and other stakeholders to be forthcoming with your views in response to EMA’s upcoming public consultation on the regulatory framework.
I am heartened to see so many of you here at this year’s SIEW. I commend the organisers for putting together a comprehensive suite of events, which I am sure will provide much food for thought.I wish you all a productive week ahead. Thank you.