EMA head envisions a cleaner, greener island less dependent on polluting fuels
Jessica Cheam, Straits Times 16 Sep 09;
ENERGY generation, that dull conversation stopper revolving around pipelines and power grids, has got sexy recently.
Run-of-the-mill engineers working in hot, dirty conditions are giving way to visionaries painting a picture of a cleaner and greener Singapore of smart meters, electric cars and renewable power, creating challenging new careers for young people.
And there's someone leading the charge: Mr Lawrence Wong, the new chief of Singapore's energy authority, is convinced that energy is the new hot topic of the town.
'The tide is changing, and so are people's perceptions,' he says. 'The younger generation, especially, are keen on cleaner forms of energy.
'It's not just in Singapore, but globally. We're caught by the tide of what's happening on the international stage, with growing concern for the planet and climate change. People are keen to do something.'
It was the surge in this new thinking that convinced Mr Wong to take the helm at the Energy Market Authority (EMA) in January. At 37 years old, the administrative service officer, who spent the previous three years as Prime Minister Lee Hsien Loong's principal private secretary, is one of the youngest people to head a statutory board.
The agency reflects the generational changes under way. Once a low-profile organisation working to ensure that energy flows whenever someone flicks a switch, it is now expanding its role and vision, aptly summarised by 'Smart Energy, Sustainable Future'.
This new vision acknowledges the fast-changing landscape, which has become more challenging and intertwined with climate change and sustainability.
'We want to be the energy authority. One that oversees a wide spectrum of energy issues, one that's vocal and provides advice to the Government on policy issues,' adds Mr Wong.
More dramatically, it is turning itself into an industry developer. It recently set up Singapore LNG Corporation to oversee a billion-dollar LNG terminal project, which was originally to have been developed by Singapore Power's unit PowerGas and French partner GDF Suez.
Financial difficulties made it challenging for the firms to stay on schedule, prompting the Government to step in so that the project is not delayed.
The intervention underscores how important LNG - a natural gas cooled to liquid form - is as an emerging energy source for the country.
'It's important for Singapore's energy security so we're not overly reliant on our neighbours for gas,' says Mr Wong. About 80 per cent of Singapore is powered by natural gas from Malaysia and Indonesia.
Construction will begin in January with the LNG terminal ready in 2013.
The opening up of new fields of energy has captured public attention, with about 700 people flooding the EMA with applications for just a few job positions in the new LNG firm.
Job-seekers will have plenty of other opportunities once Mr Wong's two other main goals start coming into focus.
One is what he calls the electrification of the transport sector, where everything from cars to buses will run on electricity instead of polluting fuels. Singapore's small size makes such a system viable.
An average car consumes about 80kwh of energy for every 100km it travels, but 75 per cent of that is wasted because of the inefficiencies of the combustion engine. But electric vehicles consume about four times less energy for every 100km driven.
Although there are obstacles such as cost, battery technology and infrastructure, Mr Wong believes technology will solve the problems.
He also believes Singapore can be the centre of this rapidly expanding market. A task force chaired by the EMA and the Land Transport Authority (LTA) recently launched a $20 million test-bedding programme to bring electric vehicles here.
It is working with car makers Renault, Nissan and Mitsubishi as well as Keppel Energy on suitable vehicles and infrastructure to kick-start the industry. This could mean electric vehicles plying our roads by next year, with an electrified public transport system not far off, says Mr Wong.
Another goal - this one further on the horizon - is to develop a super-intelligent power grid where smart systems are integrated into the electricity market.
Singapore's grids are already pretty smart - they are automated and can re-route electricity in case of supply disruptions. But they can get smarter, with each household wired more intelligently into the network. Users will be able to see price variations and decide when to consume electricity at the optimum rate, explains Mr Wong.
A $3 million pilot project has been run in some homes in Marine Parade and West Coast. Smart meters are linked to home appliances and show residents what uses the most energy and when.
Results show the massive potential of smart meters, with households using them quickly reducing their energy consumption to below the national average, says Mr Wong.
Households could eventually choose different packages with peak and off-peak prices from energy providers, like the way we pick a telco for communication services.
The obstacle again is cost - such meters are currently about 10 times more expensive than standard ones - and price is still the main concern for the man in the street when energy issues are raised.
Singapore's power generators (gencos) have recently been sold to foreign firms and Mr Wong acknowledges public concerns that the relatively high prices paid will be passed on to consumers.
But gencos operate in a competitive environment, he says. They have to bid against each other to sell electricity in the market and will be under pressure to price competitively as newer players enter the market. He lets on that 'there are power companies looking to set up new plants in Singapore'.
The EMA is also evaluating potential energy sources such as coal, solar and nuclear - a process that will be tempered by environmental and economic factors.
'This is a difficult balancing act but we will act on what is in the best interest of the country,' he says. 'At the end of the day, we have to answer to the average Singaporean and nothing speaks more than the affordability of energy here.'
Meanwhile, Mr Wong is boosting the EMA head count, from 200 when he joined to 250 today, with the aim of reaching 280.
'If you ask people if they know what EMA is about, I reckon they don't,' he notes. 'But if we deliver our projects, people will see more of us at the forefront.
'We also hope to build up a culture... where people have a sense of excitement about doing their work.
'It's going to take some time but we will be able to gradually establish what EMA stands for.'
Energy czar since January
Straits Times 16 Sep 09;
MR LAWRENCE Wong, 37, is the new chief of the Energy Market Authority (EMA).
The principal private secretary to the Prime Minister from 2005 to 2008, he assumed the position in January this year.
Mr Wong has a Master in Public Administration from the Kennedy School of Government at Harvard University, where he was a Mason Fellow. He also has bachelor's and master's degrees in economics from the University of Wisconsin-Madison and the University of Michigan-Ann Arbor.
He started out doing economic research and forecasting at the Ministry of Trade and Industry before joining the Ministry of Finance as a government economist, in charge of budget policies and fiscal planning.
From 2002 to 2003, he was deputy director of budget and head of economic programmes at the Ministry of Finance.
He moved on to become the director of health-care finance at the Ministry of Health, where he implemented reforms to MediShield, the national health insurance scheme.
Mr Wong, who is single, currently also serves on the board of the Infocomm Development Authority of Singapore (IDA).
Q&A
Straits Times 16 Sep 09;
Q Why did you decide to take up the post of EMA chief executive?
I had come to the end of my term in the PM's office and I looked at the options offered and thought energy was an interesting portfolio.
I don't have previous experience, but in the civil service, you move from one place to another and pick up issues on the job as fast as you can. Some of my background in finance and economics has been very helpful in looking at energy issues from a regulatory point of view.
It has been a great experience, learning about the issues and engaging with the different stakeholders in the industry.
Q What kind of role can the EMA play to improve energy efficiency and reduce energy consumption?
Singapore is 'alternative energy disadvantaged' so efficiency is a big part of our national strategy to reduce consumption. EMA has stepped forward to co-chair the energy efficiency programme office with the National Environment Agency (NEA), so that we can also offer our perspectives and be in the discussions formulating strategies.
Q How do you think the man in the street perceives energy? Do you think people take it for granted?
I remembered reading a headline in The Straits Times: Energy is sexy, clean energy is sexier. The perception has changed and people are getting more interested in it.
It's easy to be complacent, but within EMA, we're always vigilant and mindful of the experiences of power disruptions in the past. The work that our chaps do is invisible to the public eye, but very critical in ensuring there's a reliable electricity supply to consumers.
Q There has been talk of an Asean power grid to connect networks in Asean countries. What is its progress?
This will be a long-term endeavour. The reality is our systems are quite different and we're the only country in South-east Asia that has a liberalised electricity market. So the framework differs from country to country, it needs some harmonisation, so work is still ongoing.
Q With some of our neighbours looking at nuclear energy options, what are Singapore's concerns?
From our point of view, it is important to look at nuclear safety and security. I think all countries share our concern on this. We are working towards signing a nuclear safety framework.
As for us, we're not ruling out this option for the long term. We know there are difficulties: the size of our country is one, safety is the other. And our energy needs are small relative to the size of nuclear plants today.
But technology is evolving, some nuclear reactors are getting smaller, so this is something that is worth looking at, and we should not rule it out.
Q Is the EMA prepared for a post-Kyoto world where a price is put on carbon?
We are studying the implications of this scenario for Singapore, and this is also on the agenda of the Economic Strategies Committee (ESC).
If you talk to all the gencos, they are aware this is something that will likely happen so they are thinking ahead about the possibility of a carbon price, and how it will affect their fuel choices.
Q What can we expect from the Singapore International Energy Week in November?
Our theme this year is 'Clean energy, sustainable solutions for urban cities' and there will be notable speakers coming to speak on the future of energy. A clean energy exhibition will also be held.
We want Singapore to be a focal point for people to come together and discuss energy issues, and also a business platform where businesses can exchange information and views on a whole range of technical issues.
