Jessica Cheam, Straits Times 5 Feb 10;
THE prospect of using nuclear energy is 'not imminent', not even within the next five to 10 years, said the Senior Minister of State at the Ministry of Trade and Industry, Mr S. Iswaran.
He acknowledged on Wednesday that 'naturally, people are going to be concerned', but emphasised that this prospect is in the 'very distant future'. The Government should start the process of studying its feasibility now 'because this is very complex and complicated', he said to the media.
Mr Iswaran co-chaired a 17-member sub-committee looking at Singapore's energy resilience and sustainable growth, as part of the Economic Strategies Committee (ESC) report released on Monday.
It recommended that the Government study the feasibility of nuclear energy and, in the medium term, consider coal and electricity imports to diversify energy sources. The sub-committee's detailed report released yesterday also set a target for Singapore to supply 5 per cent of its peak electricity demand from renewable energy sources by 2020.
Mr Iswaran noted that neighbours Thailand, Vietnam, Indonesia and Malaysia are building or considering nuclear plants so it is 'important that Singapore is well abreast of developments in the sector'. He cited International Energy Agency studies which forecast strong global growth in the number of nuclear energy plants. 'If that's indeed the case, we should understand what it means, and whether there's scope for us to participate.'
Closer on the horizon are sources such as coal and imported electricity generated from regional renewable sources such as geothermal or hydro-power, he noted. Mr Iswaran said that although coal generates relatively more carbon emissions than other fuels, new technology has improved the environmental standards of coal-fired plants.
He added that electricity could be imported in the form of an Asean cooperation or a bilateral deal.
The private sector could also play a big role as this presented huge potential investment opportunities, he said. Other ESC suggestions included consolidating the energy systems on Jurong Island to make them more efficient.
Energy will also be put at the top of the list for research and development.
Energy analysts told The Straits Times yesterday that the recommendations were timely and that it was important for Singapore to diversify its sources to mitigate the impact of volatile energy prices.
Dr Michael Quah, principal fellow at the Energy Studies Institute here, said advanced technologies meant it was possible that emissions from pollutants like coal 'could be reduced at some cost'. 'The real issue is that energy security comes from energy diversity,' he said. The idea of importing power from regional renewable resources is one that should be pursued, as it would lead to greater regional collaboration, he added.
Efficiency key to a leaner, greener Singapore
Straits Times 5 Feb 10;
THERE are three key ingredients to transforming Singapore into a smart, green economy: efficiency, efficiency, efficiency.
The energy sub-committee of the Economic Strategies Committee yesterday said a mix of carrot-and-stick approaches should be used to help Singapore become leaner and greener.
Companies could be legally compelled to conduct energy audits to optimise energy use, while incentives and education will be on offer to help people and businesses make changes, its report said.
Speaking to reporters on Wednesday, Senior Minister of State for Trade and Industry S. Iswaran elaborated: 'When you talk about a system where energy is priced right, there must be clear market-based signals, and there must be incentives. We must have some of that already in place, some regulation that may require audits (and) a regular corporate commitment to reviewing these things.'
Energy conservation and efficiency are important as prices of energy are unlikely to come down in the future, he added. 'Relative to other commodity goods, energy prices are rising. It reflects the demand-supply dynamics on the global level. What we want to avoid is the situation where... we are unduly exposed to price shocks or volatility.'
At the centre of Singapore's economy will be Intelligent Energy Systems, or smart grids, allowing communication between consumers and grid operators - leading to greater efficiency.
For example, households will have smart meters in homes telling them when electricity is cheaper or more expensive, said Mr Iswaran. 'Consumers can tune the usage of various appliances according to the price signals... and based on usage, we can find what optimises our expenditure on energy.'
Part of managing energy consumption also has to do with its price. Such price signals could take the form of carbon taxes or carbon trading regimes such as those in other countries, said the report.
'These are the questions we need to think about... but our objective on pricing is to make sure that when people see a price for energy, the price captures all the externalities,' he said.
Carbon emissions will remain a top issue due to global concerns on climate change, and Singapore must be prepared for any future global agreement on this issue, said the report.
Mr Iswaran added that if any such new measures come in, offsets will be given to low-income households.
The report released yesterday also said incentives will be put in place to support clean and efficient technologies in transportation.
In particular, the current green vehicle rebate could be refined to make it more effective. The Government will also continue building up skills and talent to grow a green collar workforce, he said.
JESSICA CHEAM
Singapore needs to diversify energy sources
May Wong, Channel NewsAsia 4 Feb 10;
SINGAPORE : Singapore needs to consider different options to diversify its energy sources, so as to make the country less vulnerable to price fluctuations and supply disruptions.
Some of the options to consider include importing coal and electricity. Another is to conduct a study on the possibility of having nuclear energy in the distant future.
A sub-committee under the Economic Strategies Committee came up with these proposals and released its report on Thursday.
Currently, about 80 per cent of Singapore's electricity is generated by gas-fired power plants.
To ensure energy security, the sub-committee suggested that Singapore should develop a smart energy economy.
Proposals to achieve that include developing Jurong Island as an energy-optimised industrial cluster, investing in critical energy infrastructure and further developing renewable energy sources like solar and biomass.
The sub-committee also suggested that the government consider refining the existing Green Vehicle Rebate such that it is based on the actual fuel efficiency or carbon emissions of the vehicle, which it currently does not take into account.
It also proposed that existing funding for research and development in energy be expanded to about S$500 million over five years.
The sub-committee pointed out that as traditional energy sources like oil and gas are limited, energy prices may increase in future. So having different energy options will be essential to ensure supply reliability and to better manage price volatility.
S Iswaran, chairman of the Economic Strategies Sub-Committee, and Senior Minister of State for Trade & Industry, said: "By enhancing the mix of sources available to us, we want to make sure there are competitive options available for industries and Singaporeans.
"If any one source has issues, there are other sources that can come in and pick up the slack. And overall, the system will be able to continue and the energy price will be competitive."
Using nuclear energy to generate electricity is another possible option. In fact, the sub-committee said countries like Vietnam and Thailand have announced plans to build nuclear power plants in the next decade, while Malaysia and Indonesia are considering this option.
The sub-committee made it clear that it is only proposing that Singapore begins to study the feasibility of having nuclear energy. It reiterated that this is a long-term plan for 10 years and beyond.
The key, it added, is that Singapore keeps abreast of the nuclear energy developments as well as to consider the different energy sources for the distant future.
Experts said studying the nuclear energy option is a good decision, and Singapore must find a nuclear generator that's safe for the country.
Importing electricity will also help Singapore's energy security.
"The best thing for Singapore is to consider investing in the country from which it is going to import (electricity from). By doing this, it can be certain that for example, through a joint venture with that country, create a type of generator which is environmentally-friendly," said Dr Hooman Peimani, head of Energy Security, Energy Studies Institute, NUS. - CNA /ls
Applying a 'green lens'
Esther Ng, Today Online 5 Feb 10;
SINGAPORE - The attention so far, on the issue of creating a smart energy economy, may have been on some of the Economic Strategies Committee's (ESC) long-term recommendations, such as a possible feasibility study of nuclear energy as one option here.
But the ESC subcommittee's report on energy resilience and sustainable growth, released yesterday, detailed additional ideas that may have a more immediate impact.
Whether public transport can be both clean and affordable, for example, depends on the Government's response to the suggestion that it provides grants or financing to the bus operators.
With half the bus fleet here needing replacement over the next five years, the subcommittee said the Government should support the introduction of the diesel-hybrid engine (picture), which can be up to 20 per cent more fuel and carbon efficient than conventional buses - but also more expensive.
There were also incentives ideas for Singaporeans to drive green.
For instance, the existing green vehicle rebate covers hybrid, compressed natural gas (CNG) and electric vehicles, but does not take into account actual emissions or efficiency.
The report recommended "refining" the rebate so that it is "based on the actual fuel efficiency or carbon emissions" of the vehicle.
Mr Jan Croeni, founder of Eonlux, a sustainable mobility company, agreed. "It makes sense as an electric car is cleaner than a CNG one - consumers should be rewarded more for choosing cleaner technology," he told MediaCorp.
Transportation is the third largest consumer of energy here. Buildings form the largest electricity consumer, and a target was suggested yesterday as to how much of peak electricity demand should be met by renewable energy sources: Five per cent by 2020.
Professor Chou Siaw Kiang, from the National University of Singapore's mechanical engineering department, said the target is "doable" and that "solar voltaic energy" will be a significant renewable energy source. He added: "We could import electricity from a regional grid if there's one in place. We've been talking about an Asean grid for a number of years. Perhaps it's time to start moving."
Mr Christophe Inglin, managing director of solar power systems company Phoenix Solar, thinks the target of five per cent is "not ambitious" enough, though.
"Large-scale installation of photo voltaic panel will likely take place in the next three to four years, and we could hit that target," he said.
In some European countries, the target is 20 per cent from renewable energy sources, and not limited to peak hours of 11am to 2pm, he added.
Both men agreed, though, that government support would be crucial to kickstart investment in green technology. "Investments from the private sector will be slower without fiscal incentives," said Prof Chou.
The report noted the need to "strengthen project financing for energy-efficiency projects" and other energy-related financial services such as "venture capital and derivatives products".
The subcommittee urged the government to "stimulate significant demand" for energy efficient products by applying a "green lens to government procurement", which will help stimulate the green economy while reaping savings for taxpayers.
In Europe, green procurement legislation ensures a fair playing field for all suppliers, said the ESC.
Private sector-driven move to smart energy economy preferred
Uma Shankari, Business Times 5 Feb 10;
SINGAPORE'S shift to a 'smart energy economy' should preferably be private sector-driven, Senior Minister of State at the Ministry of Trade and Industry S Iswaran said yesterday.
The government can play its role through regulation, as well as granting market access, he said.
He was discussing recommendations by the Economic Strategies Committee (ESC), which on Monday released a blueprint for Singapore's growth over the next 10 years.
The sub-committee looking at energy released its detailed report yesterday. Among various things, it says Singapore needs to diversify its energy sources over the next decade - and even consider nuclear power - as it will face energy constraints while growing.
One option raised is importing coal and electricity.
Mr Iswaran, who co-chaired the sub-committee, said importing electricity via long-distance cables is a viable option but would require a power grid. 'Somebody' has to invest in generation capacity and grid infrastructure, he said. 'Is there a role for governments in this? Possibly. But there is certainly a role for the private sector.'
When private companies start proposing ideas, the government will engage them, Mr Iswaran said. 'I don't want to be too prescriptive about this. At the end of the day, you have to allow the private sector to also come up with its own ideas,' he said.
The sub-committee's report also advocates continued support of the innovation and the infrastructure necessary to develop renewable energy sources, as well as studying the feasibility of nuclear energy.
Singapore should aim to have 5 per cent of its peak electricity demand supplied by renewable energy sources by 2020, the report says.
It also proposes that existing funding for research and development in energy be expanded to about $500 million over five years.
Jen Kwong Hwa, managing director of Micron Semiconductor Asia, said industry players would welcome the diversification of Singapore's energy sources as this would mitigate price volatility.
The report also calls for the promotion of energy-efficient buildings, industry and homes - through legislation such as mandatory energy audits, if needed.
But Mr Iswaran said legislation would need to come with incentives to move businesses and households towards energy efficiency. 'Regulation is just one part of the equation,' he said. 'We want to make sure there are adequate incentives in the system and that there is also a market- based effort.'
Incentives could be by way of tax breaks, market watchers said.
'The government can make use of the Budget to introduce tax incentives to encourage businesses to go green,' said Angela Tan, a tax partner with Ernst & Young. 'This would demonstrate Singapore's commitment to gradually shift to a low-carbon economy and lay the foundation for future sustainability.'
