Distinguished Guests,

Ladies and Gentlemen,

Introduction

1.  Good morning.  I am delighted to join you this morning for the grand finale of the Free Electrons Accelerator event.

2.  The 12 energy startups present today have been shortlisted from more than 450 applications from 51 countries.   They have shown interesting, cutting-edge solutions, in areas ranging from energy management, renewables, to customer satisfaction. More importantly, they demonstrated that their solutions are pilot-ready, and have the potential to provide value to consumers.

3. The promising startups have worked hard to develop and refine their business ideas over the earlier two laps of the event, in the US and Europe.  I wish them all the best for the finale here in Singapore.

Rapid Changes in the Energy Sector

4.  Technological advances and the focus on sustainability have made sources of energy cleaner and more diversified. In Singapore, the total capacity of solar systems connected to the grid has grown from just 0.4 megawatt peak in 2008, to more than 125 megawatt peak last year. Looking beyond 2020, the government plans to raise our solar power capacity to 1 gigawatt peak.

5. To better integrate such renewable sources of energy, which tend to be distributed and intermittent, the grid needs to evolve from a one-way power system based on large centralised generation assets, to one which better accommodates the two-way flow of electricity and information. This will require the use of digitisation and infocomm technologies, to make the grid more responsive and transparent to consumers.

6.  These changes will bring benefits such as lower carbon emissions, and improved energy efficiency. However, they will also give rise to new challenges such as the need to address the intermittency of solar energy, and the threats of cyber-attacks, as the grid becomes more open and interactive.

Startups will be an important part of the solution to address these changes

7. Startups can play an important role to help utilities companies address these challenges, by catalysing disruptive innovations and solutions.

8. They will also be significant drivers of economic value and jobs creation. In 2016, Singapore had 4,300 technology startups with a workforce of 24,000 workers. We have also seen a significant increase in the number and aggregate valuations of startup exits. In 2015, 220 VC deals worth over US$1 billion combined were completed, compared to 26 deals worth US$80 million in 2010. Some of them have been in the clean energy space. The Sunseap Group, which was started in 2011 and is now Singapore’s largest local solar developer, most recently completed a Series C investment round, in which they were valued at more than S$300 million.

9. It is heartening that SP has formed an alliance with seven other utilities throughout the world to leverage on the nimble, and forward-thinking structures of startups.

10. The government has likewise been nurturing a conducive environment for startups to thrive. In March this year, we launched the umbrella framework and brand, Startup SG, to connect players of the Singapore startup ecosystem and to unify all startup initiatives. This includes support schemes on various fronts – mentorship for first-time entrepreneurs, grant support for commercialisation of technology solutions, and co-investment to catalyse private equity. Last month, we broadened the evaluation criteria for the EntrePass scheme under Startup SG Talent, to facilitate the entry and stay of promising global startup talents. We also extended the validity period of each EntrePass from one to two years, after the first renewal, to provide more certainty for global entrepreneurs. 

11.  We welcome the startups here today to join the Singapore startup ecosystem, to create exciting energy solutions both for Singapore as well as the wider Asian region. You can leverage our pro-enterprise environment, connectivity and access to talents and finance.

Conclusion

12.  Finally, I would like to emphasise that even the best ecosystem will not work without the most important ingredient – an entrepreneurial and problem-solving mindset.

13.  Present today in the audience are undergraduates who are taking part in the inaugural Frontier Challenge, which encourages undergraduates to propose solutions to address real-world challenges. The theme of the Challenge this year is Alternative Energy: Production, Transmission, and Storage, which is very relevant to this event.

14.  I encourage the students here today to continue to think about how they can employ innovative solutions to make our energy systems more sustainable and resilient.

15.  Let me close by thanking all of you for your presence, and I wish all of you a productive day ahead.