Potential supply could be region's hydro-electric, geothermal power
Ronnie Lim Business Times 28 Oct 10;
SINGAPORE is prepared to look at energy options like coal and electricity imports via long-distance cables in the medium term, says the Energy Market Authority (EMA).
Importing power via cables means Singapore could potentially tap regional hydro-electric and geothermal power. And while the regulator does not say so, it also suggests that the island could tap electricity produced by nuclear power plants in the region.
Singapore needs to diversify its energy options, especially as generating companies and industry here are currently 80 per cent dependent on piped natural gas feedstock from Indonesia and Malaysia - countries whose own gas needs are rising.
Using other energy sources will 'encourage healthy competition in our electricity market and benefit households and industry consumers', EMA says in its just-released Statement of Opportunities 2010 report.
'While the first priority is to diversify Singapore's sources of gas through liquefied natural gas (LNG)' - with the first shipments arriving at the upcoming $1.5 billion LNG terminal in 2013 - 'current import controls placed on non-LNG will limit diversification options in the near term', the report says.
Therefore, in the medium term - that is, once LNG imports reach three million tonnes per annum or by 2018, whichever is earlier - EMA 'is prepared to allow the entry of new energy options on a market basis'.
'In particular, the power generation industry could consider coal and electricity imports,' the report says. 'Coal is expected to remain relatively cheap and can be sourced from different countries. Moreover, new technologies like the integrated gasification combined cycle plants that turn coal into gas are reducing the environmental impact of coal.
'The import of electricity via long-distance, high-voltage cables is another option that will free up valuable land in Singapore. It could also allow us to tap the significant renewable energy potential such as hydro-electricity or geothermal power in the region.
'However, adequate safeguards will have to be put in place to ensure the integrity and stability of our power system.'
So far, only Tuas Power has been given the nod by the regulator to import coal - a small quantity for its clean coal/biomass-fired $2 billion Tuas Multi-Utilities Complex on Jurong Island. This was only because gas needed for the plant may not be available in 2011, when the chemical customers it will supply utilities too start up.
Allowing greater coal use for power generation on a larger scale should benefit generating companies like Tuas Power (TP).
Others, like PowerSeraya and Senoko Energy, sited near the Causeway, may see potential in importing electricity from neighbouring countries like Malaysia.
In its report, EMA says Singapore's economic recovery, population growth and ensuing gross domestic product increase mean electricity demand here will rise accordingly. Since 1995, maximum electricity demand here has increased almost 73 per cent from 3,485 megawatts (MW) to 6,041 MW in 2009.
EMA now forecasts peak demand will reach 9,000 MW in 2020.
A reserve margin is set at 30 per cent over peak electricity demand, and planned expansions by generators here indicate the reserve margin will remain above 30 per cent over the next 10 years, EMA says.
Island Power, Keppel Merlimau Cogen and TP have all recently signed construction contracts for expansion projects, with KepCorp's 400 MW new plant expected to be operational in 2012, TP's 400 MW re-powering project in 2014 and Island's two 400 MW units starting up in 2013 and 2014.
Sembcorp says it is in the final stages of evaluating EPC players for its 400 MW expansion, which is expected to be operational in 2014.
