Letter from Tan Tze Kiang, Straits Times Forum 7 Mar 08;
I AM disappointed by the response on Monday to the question of solar power by Minister of State for Trade & Industry S. Iswaran, who is also chairman of the International Advisory Panel on Energy ('Singapore gives solar energy sector a $20m boost').
Except for maintenance cost, solar power is a renewable resource that is almost free, once installed. So it is hard to understand Mr Iswaran's argument that subsidies will dampen price signals when energy is free. As long as the sun shines, there is no risk of over-consumption or waste.
His point about a consistent energy policy is regressive. Instead of a blanket approach, we should fine-tune the policy by studying individual energy sources. If the Government is sophisticated enough to formulate means testing for all Singaporeans, it can create a multi-tiered approach to alternative energy subsidies.
While I appreciate the importance of researching and developing alternative energy sources that will lower costs for all Singaporeans, the Government should subsidise those who are willing to pay the relatively heavy start-up costs for a cleaner and greener environment.
Mr Iswaran sees strong economic growth as the best response to the uncertain global energy outlook. This essentially means buying our way into meeting our energy needs. But oil executives, geologists, investment bankers, academics and others have warned the world of high oil prices, and the ensuing fallout, for some years now.
'Peak oil', where oil production reaches its limits, is no longer a theory. Pursuing alternative energy sources is not just an environmental issue but has huge economic repercussions too. Pursuing a renewable energy policy is the only way to create a sustainable economic and environmental future.
My main concern is the notion that economic growth will suffer if we aggressively pursue an alternative energy policy. We face a climate crisis. Money spent to address this problem should not be seen as a subsidy any more but an investment in long-term growth. The technology is already available to make solar energy a viable option.
As Nobel Prize-winning environmental advocate Al Gore has said: 'Political will is a renewable resource.'
