OPENING REMARKS BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), AT THE ENERGY ACCESS FORUM – POWERING DEVELOPMENT IN THE ASIA PACIFIC, ON TUESDAY, 25 OCTOBER 2016, 9:30AM, MARINA BAY SANDS
Dr Shamshad Akhtar,
Executive Secretary of the United Nations Economic and
Social Commission for Asia and the Pacific
Distinguished Guests
Ladies and Gentlemen
Welcome
1. A very good morning to all. It gives me great pleasure to welcome you to the first Energy Access Forum held in conjunction with the Singapore International Energy Week. I am heartened to see many participants from both the private and public sectors gathered here to discuss the critical issue of energy access in the Asia Pacific region.
2. This Forum marks the first time that Singapore is collaborating with the United Nations Economic and Social Commission for Asia and the Pacific, UNESCAP, on energy access. UNESCAP plays an important role in the region by supporting countries in their efforts to address energy poverty through capacity-building workshops and conferences. UNESCAP also contributes actively to energy access discussions at the G20 Energy Ministers Meeting.
Energy Access – Powering Development in the Asia Pacific
3. Ensuring affordable, sustainable and reliable energy access remains a critical challenge for countries in the Asia- Pacific region. While some progress has been made, more can and must be done. Around 455 million people in the region still do not have access to electricity, 130 million of whom are within Southeast Asia. In addition, more than 2.7 billion people worldwide, or nearly 40 per cent of the world’s population, do not have access to clean cooking facilities. Furthermore, Asia is urbanising rapidly. It is expected that by 2030, 55% of Asia’s population will be living in urban areas. This will also drive demand for urban energy solutions that are clean and smart.
4. Access to reliable energy services underpins development, growth and ultimately a better quality of life. To ensure that the region is able to fulfill Asia’s economic potential, and promise to its people, the need for secure and reliable energy access has to be addressed in a comprehensive manner.
Singapore as a regional financial hub for long-term bankable energy projects
5. One area of focus is the development of energy infrastructure projects that can catalyse private sector funding. This will help to ensure the sustainability of energy access solutions for the long term.
6. The development of bankable projects and the mobilisation of private sector funding are issues that have been raised during the industry consultations and discussions of Singapore’s Committee on the Future Economy. Some of those who have participated in our discussions said that Singapore can play a constructive role in this area, and we agree. The power sector in the Asia Pacific region will require a significant increase in generation capacity and grid infrastructure. In fact, the region is expected to account for over 40 per cent of cumulative energy investments until 2040, according to UNESCAP. This amounts to more than US$25 trillion. The need and opportunity are therefore clear and present. The question is how we can help to organise more bankable energy infrastructure projects in the region and profile them to investors.
7. Our aim is for Singapore to serve as a collaborative platform where energy infrastructure developers, consultants, governments, financial institutions – including Multilateral Development Banks – and institutional investors come together in a vibrant and multi-faceted ecosystem. Working together, we will be able to activate and mobilise the essential expertise, capital, and insights, to help meet the energy needs of the region.
8. As a regional financial hub, Singapore is already home to a strong network of well-established financial institutions, both local and international, including the World Bank and the International Finance Corporation. IE Singapore has also worked with the Asian Development Bank on the Asia Infrastructure Centre of Excellence, which helps to create bankable infrastructure projects in the region. Singapore has a good base of professionals who understand Asia, in areas such as law, commercial transactions and engineering consultancy, and whose expertise is needed to structure, and develop these infrastructure projects.
9. There are also a growing number of energy and utility companies that have established a base in Singapore, tapping on regional and global networks as well as leveraging on the conducive environment for innovation and R&D. One such company is ENGIE. In July this year, the ENGIE Lab Singapore was established to serve as an Asia-Pacific Centre of Excellence for low carbon and distributed energy resources. Another is Sun Electric, a Singapore-based technology company focusing on urban solar solutions. I understand that both companies will be sharing their perspectives at today’s Forum.
10. In addition, our research institutions are at the forefront of driving innovation in related technologies. For example, the Nanyang Technological University of Singapore is leading Singapore’s Renewable Energy Integration Demonstrator, or REIDS, which is an initiative on Semakau Landfill. REIDS focuses on the challenges of integrating different renewables into a microgrid. The technologies and solutions demonstrated there will contribute to energy access solutions in the region.
International cooperation key to unlocking energy access options
11. Given the global nature of the energy access challenge, it is also important for us to continue to enhance international cooperation, and ensure that the public and private sectors share their experiences and create awareness on the options available to increase energy access.
12. Energy access was a key issue discussed at the G20 Energy Ministers Meeting in June this year. Action plans have been adopted by the G20 Energy Ministers focusing on Sub-Saharan Africa and the Asia Pacific region. These provide options for countries to adopt policies and strategies according to their national circumstances. Singapore is supportive of the G20’s initiative to focus on energy access, and its leading role in facilitating international cooperation to address this global challenge.
13. International cooperation is critical to promote innovative technological solutions, develop sustainable business models and increase access to financing and investments.
14. These outcomes are in line with the main objective of today’s Forum and the Singapore International Energy Week as a whole. We seek to create a platform for interaction and sharing, with the goal of building relationships and exploring business opportunities.
15. We are pleased to have close partners supporting us in this effort. In particular, the US will be leading a panel on energy access in ASEAN at this Forum, under the US-ASEAN Connect Initiative. Singapore and the US have been working closely on initiatives during SIEW and this is a new area of collaboration for us. KPMG will also lead a panel focusing on technology and investments which are important enablers in enhancing energy access.
Conclusion
16. Energy access is a shared challenge that we urgently need to address. This Forum is timely, and through it we hope to identify not only the challenges, but also the opportunities and innovative solutions to address them. I wish all of you a fruitful discussion.