Best long-term options for Singapore: solar, nuclear power

Robin Chan, Straits Times 9 Mar 10;

SOLAR and nuclear power are among Singapore's best options for electricity generation in the long term. The two are part of the range of options to meet the challenges of the future, said Senior Minister of State for Trade and Industry S. Iswaran.

He told Parliament yesterday that the nation remains exposed to the 'vicissitudes of global energy markets' because it imports almost all of its energy. This means it will be affected by price volatility even as energy prices continue to rise over the long term. Singapore is also affected by competition for energy supplies and carbon constraints as part of a global climate change deal.

'Our strategy to meet the global energy challenges rests on two key thrusts: diversification to maintain a range of energy options; and competitive energy markets,' he said.

Solar energy has been touted as the best option for Singapore given the climate, although there are obstacles as the cost of solar-generated electricity is still about twice that of grid electricity and heavy cloud cover means it is unreliable.

Mr Iswaran again reiterated that solar energy is 'one of the most promising in our context for electricity generation' of available renewable sources.

He expects the price of solar energy will be on par with the electricity generated through the grid in the medium term but more infrastructure needs to be developed and improved 'for efficient installation and integration of solar panels... (and) to cope with... fluctuations in weather conditions'.

The idea for studying the feasibility of nuclear energy was raised by the Economic Strategies Committee and backed by the Government, but it has generated some public concern.

Dr Muhammad Faishal Ibrahim (Marine Parade GRC) and Mr Liang Eng Hwa (Holland-Bukit Timah GRC) were among those who asked about the associated risks. Mr Iswaran said the Government is considering the nuclear option now because it meets all three of its energy policy objectives: enhancing energy security, reducing carbon emissions and mitigating the impact of volatile oil and gas prices.

Other developed countries like France, Switzerland and Japan have used nuclear energy for a long time. 'These are all developed nations with high standards of living and exacting safety regulations.'

The Ministry of Trade and Industry will lead a multi-agency effort to undertake the feasibility study, which will commence later this year.

Mr Iswaran also said electricity imports could help the country gain access to alternative energy sources such as hydropower and so free up valuable land.

Non-Constituency MP Sylvia Lim asked which countries would be considered and whether there would be added political risks on top of the danger of unreliable, irregular supplies.

Mr Iswaran replied that 'there is no fixed idea of where Singapore can import its electricity from' but that 'to some extent with the limits of technology and infrastructure, (it) would suggest that the most obvious sources would be in our neighbourhood'. Singapore already imports natural gas from its immediate neighbours and 'if we were not importing gas, but electricity from our neighbour, the overall risk to us as a system, in my view, remains the same'.

Study on nuclear energy to begin this year
Today Online 9 Mar 10;

Commencing later this year: A feasibility study by a multi-agency group of whether nuclear energy can be a long-term option for Singapore.

The effort will be led by the Ministry of Trade and Industry, announced its Senior Minister of State S Iswaran yesterday, and it will aim to "ensure that we fully understand, and objectively evaluate from all perspectives, the opportunities, challenges and risks involved with nuclear energy".

Public concerns have been surfaced about the risks considering Singapore's size and population density.

"Indeed, these were some of the reasons for not considering the option before," acknowledged Mr Iswaran.

"But new technologies are being developed to address some of the key concerns associated with nuclear energy, and to make nuclear reactors smaller and safer, at a lower cost and with less high-level waste.

"Some of these technologies are in the early stages of commercialisation and we need to study if they could be feasible in our context."

Mr Iswaran made several arguments for mulling the nuclear option. It could "potentially enhance energy security, reduce carbon emissions, and mitigate the impact of volatile oil and gas prices".

Then, there are small states like Switzerland and island-nations like Japan that have made great strides in nuclear energy in the last four decades.

There is also "merit in building up our knowledge and expertise in nuclear science which has applications in diagnostic medicine and cancer treatment" - it could yield therapeutic and economic benefits, he added.

Tiered pricing of electricity won't work here
Straits Times 9 Mar 10;

A TIERED system of pricing electricity is unlikely to work, said Senior Minister of State for Trade and Industry S. Iswaran.

Mr Iswaran was responding to a comment from Non-Constituency MP Sylvia Lim that such a system could help small consumers and lower overall electricity consumption.

Tiered pricing works by placing a higher tariff on consumers who use more electricity. This tariff can then be used to subsidise consumers in the lower tiers.

'Many places, including New Zealand, Canada, Hong Kong and the United States, implement variations of this idea to protect small consumers. Some governments require electricity retailers by law to provide a low tariff charge for small consumers,' Ms Lim said.

But Mr Iswaran said that establishing the tiers would be a problem.

'The most fundamental question we've got to ask ourselves is if the Government were minded to establish tiered levies for electricity consumption, how does the Government go about determining what are justifiable, reasonable tiers?'

This is because households vary in how they consume electricity, he said.

'No two households are alike, and even if you take your HDB-type households, the three-room flats, the consumption can vary quite a bit and that is why the problem is inherently egregious and it is superior to have a clean system but with targeted subsidies.'

ROBIN CHAN