Ng Baoying, Channel NewsAsia 12 Nov 07;
SINGAPORE: Singapore wants to increase the value-add to the energy industry to S$34 billion by 2015, up 70 percent from current levels. It also wants to triple industry employment to 15,300 from the current 5,700. These numbers were revealed as Trade and Industry Minister Lim Hng Kiang outlined a holistic national energy policy framework on Monday.
The framework strives to balance economic competitiveness, energy security and environmental sustainability. Strong economic growth in China and India is causing world energy prices to soar.
There has already been a 70 percent increase in oil prices in less than a year to over US$90 a barrel, and Singapore needs to cope with this through new strategies.
Mr Lim said: "There's very little we can do to affect worldwide demand or supply. What Singapore can do is to work harder at energy efficiency and consumption. This won't take place overnight. But this is the best strategy going forward."
Six strategies, according to Mr Lim, are key to ensuring that Singapore has the energy it needs for economic growth.
Firstly, it has to have competitive markets so that consumers can benefit from lower prices.
Mr Lim said: "Oil prices have gone up very much from just within this year and over the last few years. Because of competition and efficiency, electricity prices have not gone up to that extent, so we have benefited over the years. We will all benefit as electricity market becomes more and more competitive."
A pilot test to enable full contestability in the electricity retail market is underway.
Another strategy is to diversify Singapore's energy supplies to protect the country against supply disruptions, price increases and other threats to energy security.
Singapore is already building a liquefied gas terminal to have more sources of natural gas.
Due to Singapore's geographical constraints, there are few alternative energy sources beyond oil and gas.
But Mr Lim said the government is not ruling out other energy options when technology improves, so it is supporting research and development, test-bedding and new energy technologies.
The third strategy, which the government is already working on through a masterplan, is to improve energy efficiency by promoting the saving of energy.
Singapore is also developing the energy industry by pursuing opportunities in clean energy, including solar energy, biofuels and fuel cells, to meet rising global and regional demand for energy.
On this fourth strategy, Mr Lim added that while solar energy could be on the cards, it is likely that solar power will only contribute a fraction of Singapore's needs.
He said: "Energy from solar sources today is very limited because it's still not price competitive. In five, ten or 15 years, solar energy will be completely competitive. In Japan, it is the reason energy prices are high there. In Germany, it's not, but the government intervenes to provide subsidies to people who use solar energy.
"In Singapore, we are studying these two ends of the spectrum. But it is not likely to replace our other sources, especially gas. At most, it may contribute 2 or 5 percent of our needs."
The government has committed more than S$300 million to build up Singapore's energy R&D capabilities.
The fifth and sixth strategies that Mr Lim cited are plans to step up international cooperation and to get various government agencies to work together to manage the challenges to Singapore's future energy needs.
Mr Lim also officially launched the Energy Studies Institute at the National University of Singapore on Monday.
The institute, believed to be Southeast Asia's first think tank on energy issues, will undertake research and develop energy policies in the region.
Six key steps to meet Singapore's energy needs
Lin Yanqin and Esther Fung, Today Online 13 Nov 07
SPIRALLING oil prices, growing global demand for energy, limited and uncertain supplies from oil-producing countries, climate change from greenhouse gas emissions — these are the challenges faced by a Singapore dependent on imports for energy needs.
But even if Singapore has to be a "price-taker" in meeting its energy needs, it can still turn "energy challenges" into "energy opportunities".
To help make this happen, a master plan — outlined in the National Energy Policy Report — was unveiled by the Minister for Trade and Industry Lim Hng Kiang yesterday, with six strategies mapped out for Singapore's energy future.
Steps will be taken to improve energy security by diversifying energy sources and the mix of fuels currently used to generate electricity. Plans are also in place to grow the value-add of the energy industry, now worth $20 billion, into a $34-billion industry by 2015, and triple the number of jobs to 15,300.
"There's very little we can do to affect worldwide demand and supply," said Mr Lim after unveiling the details of the energy policy at the Singapore Electricity Roundtable. "The best solution is a long-term one, towards efficiency, conservation and a competitive market."
Traditional strengths like oil- refining and trading would continue to grow, while others like renewable energy and the trading of energy products have been identified as growth areas.
More than $300 million has been committed to boost Singapore's energy research and development capabilities, such as the Economic Development Board's $17-million Clean Energy Research and Test-bedding Programme.
A clean energy scholarship programme to fund some 130 Masters and PhD students over the next five years for study and research in local and top foreign universities was also announced by Prime Minister Lee Hsien Loong at the opening of a separate event, Global Entrepolis, yesterday.
Diversifying Singapore's energy supplies was a key strategy of the framework, Mr Lim said.
Currently, more than three-quarters of Singapore's electricity is generated from piped natural gas (PNG) from Malaysia and Indonesia. But rising domestic demand means that these countries might not be able to continue PNG exports to Singapore.
Thus, developments, such as the liquefied natural gas (LNG) terminal on Jurong Island, where construction will begin in 2009, will allow Singapore to source further for LNG, which can be transported over long distances, to meet energy needs by 2012.
Singapore will continue to rely on natural gas for energy, Mr Lim said. "Hydro, geothermal and wind power are not available in Singapore, while nuclear energy is not feasible due to (Singapore's) small size." Solar and coal power, on the other hand, have potential, but face cost and technological barriers.
The framework also aims to improve Singapore's energy efficiency, promote competition in the energy market, boost international cooperation and get all government agencies involved in shaping energy policy.
The energy industry regulator, Energy Market Authority, will take on a more developmental role in policy planning and develop cooperation with international organisations.
The Energy Studies Institute, which was launched yesterday, will conduct research in energy economics, energy security, and the environment.
Also underway is the pilot-testing of the Electricity Vending System, where consumers can choose how much electricity they want to buy.
Trade-offs between the objectives of economic competitiveness, energy security and environmental sustainability are inevitable, but where they converge, they should be exploited, said Mr Lim.
Two energy think-tanks set up - at NUS, EMA
Ronnie Lim, Business Times 13 Nov 07
Market regulator's role widened to tackle energy policy and planning
SINGAPORE has set up two new energy 'think-tanks', the Energy Studies Institute (ESI) at the National University of Singapore and the Energy Policy and Planning Division (EPPD) within the Energy Market Authority.
Making the announcement yesterday, Trade and Industry Minister Lim Hng Kiang said that they were part of the strategy set out by the high-level Energy Policy Group - that government agencies should 'put their heads together to deal with the complexities of energy'.
In this regard, the EMA has expanded its role from just being energy market regulator to also tackle the task of energy policy and planning.
'EMA will take on a more developmental role for the energy sector, with the goal of enhancing Singapore's energy security and competitiveness,' Mr Lim said.
The new ESI, with 20 people, is a multi-disciplinary, autonomous energy research institution, covering 'the three areas of energy economics, energy security and the environment', Mr Lim said. It will provide a platform to promote greater awareness and dialogue on energy issue within the region.
He said this 'whole-of- government approach' to tackling energy issues has already seen several other agencies forming new units. MTI now has an energy division, while the Economic Development Board and the National Environmental Agency have set up inter-agency programme offices for clean energy and energy efficiency.
BT understands that EMA's new division, headed by its No 2, deputy CEO David Tan, will comprise a sizeable group of energy researchers and analysts.
The EPPD will plan and review energy policies here and develop scenarios for formulation of strategic plans to secure the Republic's energy needs. It will also be the government's 'information repository' on energy matters.
It will also carry out studies to identify new energy opportunities. For example, Singapore is exploring various clean energy options like solar power, so the EPPD will look at the various technologies to ensure that the Republic is ready for using solar power once it can be commercially applied. But at the moment, solar energy costs two to three times as much as conventional electricity.
ESI chairman Chan Lai Fung said: 'We endeavour to produce independent and high quality research that will stimulate debate on energy issues of key interest to policymakers, industries and the community. Through our research and collaboration at the regional and global levels, ESI can contribute to the development of effective public policies on energy matters.'
Singapore's energy challenge has business payoffs
Ronnie Lim, Business Times 13 Nov 07
Major report notes opportunities that could follow search for energy security
(SINGAPORE) Even as oil prices are poised to touch US$100 a barrel, Singapore has set itself an ambitious target. It wants to increase value-add to the energy industry from $20 billion to $34 billion by 2015 and triple employment from 5,700 to 15,300.
In spelling out its approach, the key emphasis is on securing its energy needs while exploiting the opportunities that may arise - like the commercial development of solar technology for export - amidst the latest oil crisis.
The long-awaited report released by the high-level Energy Policy Group (EPG) yesterday takes a 'whole-of-government' approach and comes 17 months after the EPG was formed, when oil prices were half today's levels.
Announcing the EPG report at yesterday's Singapore Electricity Roundtable for power officials, Trade and Industry Minister Lim Hng Kiang said that Singapore, being 100 per cent dependent on oil imports, is vulnerable to rising energy prices and risks of supply disruption.
'It is therefore critical that we manage our energy security as we continue to pursue economic growth,' he stressed.
The 76-page report titled Energy for Growth underlines the EPG's core objective, that is securing energy for the Republic's growth.
This is crucial, considering that Singapore imports 82 per cent of its oil from the Middle East, and power stations here are currently 76 per cent fuelled by piped natural gas from neighbouring Malaysia and Indonesia.
Today, says the EPG, the scope of energy policy here has expanded to include energy diversification, foreign policy, security of supply routes (like the Straits of Malacca), climate change, energy efficiency and conservation, and R&D.
Mr Lim said that the EPG report 'balances the three objectives of economic competitiveness, energy security and environmental sustainability'.
Responding to a BT query on whether the Ministry of Trade and Industry had a crisis management plan with oil prices close to hitting all-time highs, Mr Lim said: 'First of all, we have to recognise that the current oil price is a result of market forces. Overall, the global economy is growing quite robustly but supply has not caught up with it, so the resultant high oil prices are a result of these forces.'
'There's little we can do to affect world supply or demand. But what Singapore can do is to work harder at energy efficiency and consumption.
This will not take place overnight, but this is the best strategy going forward. For the individual, it means conservation, making fewer trips and being more efficient in planning your trips, for example,' he said. Pointing to the global picture, Peter Ong, permanent secretary of the Trade and Industry Ministry, and EPG chairman, added: 'Energy policy is also moving up the political agenda with many world leaders acknowledging the need for concerted global solutions to deal with energy security and climate change.'
EPG has proposed several key strategies like promoting competitive markets - including in oil refining, trading and in the electricity and gas markets - to keep energy costs affordable.
In electricity, for example, the EMA is carrying out trials to open up the last 25 per cent of the electricity market here, comprising households, to competition.
Energy supplies should also be diversified, the EPG adds, with the most imminent project being building of an LNG terminal by 2012 to enable liquefied natural gas to be shipped in from anywhere worldwide for power stations and industries here.
'It will be like another (gas) pipeline and the next big thing for Singapore,' Mr Ong said.
At the same time, Singapore will also consider and testbed possible energy alternatives like solar and even coal, although environmental concerns for the latter have to be addressed.
Norway's Renewable Energy Corporation, for example, announced a fortnight ago that it will build a S$6.3 billion solar manufacturing complex, while several other biofuel makers have also set up production plants here.
Another strategy is to improve energy efficiency in power generation and industries right through to transport, buildings and households.
The EPG also aims to step up international cooperation to ensure energy security and effective action on environmental protection.
'While people talk about costs for example in climate change, we also see in this opportunities to harness climate change, like in carbon credits,' Mr Ong said.
A carbon trading exchange here is among many ideas being considered, he added.
Energy plan targets choice, efficient use and green jobs
Erica Tay, Straits Times 13 Nov 07;
Blueprint unveiled yesterday focuses on meeting long-term needs
PEOPLE here are set to live, work and play differently in the not-too-distant future as Singapore tackles the fast-changing energy outlook.
As policymakers worldwide grapple with record high oil prices and climate change, the Government has unveiled a bold new energy blueprint.
It is designed to ensure enough energy to power the Republic in the years ahead. Key goals include more efficient use of energy, more jobs in the 'green' sector, and more choice for consumers.
It is the first time Singapore has unveiled a holistic energy policy framework spanning economic development, energy security and environmental sustainability.
One key impact: Singapore households will get to choose their electricity suppliers the way they now pick mobile phone service providers.
Commuters will also be encouraged to ditch their cars and travel on trains and buses. Even those who drive are likely to use more fuel-efficient and 'green' vehicles.
These are but a few of the initiatives outlined in the Government's national energy policy framework, announced yesterday by Trade and Industry Minister Lim Hng Kiang.
It tackles long-term issues, from future energy sources to how the thirst for clean energy can create jobs here.
In a sweeping National Energy Policy Report (available at www.mti.gov.sg), the Government unveiled six key strategies an inter-ministry group called the Energy Policy Group (EPG) will focus on.
Firstly, the domestic power industry will be further liberalised by opening up the electricity retail market to competing private sector players. 'Competitive markets will remain a cornerstone of our energy policy,' said Mr Lim in a speech.
The Government will 'promote competitive energy markets to improve efficiency, encourage innovation and drive down prices', said the report.
An Electricity Vending System (EVS) is being piloted by the Energy Market Authority (EMA) among a handful of consumers. The pilot scheme will end in mid-2009.
If it is successful, all 1.2 million small retail users here, including homes, will be able to shop for their choice of power supply among competing companies and price plans.
Secondly, Singapore plans to diversify energy sources. Now, 76 per cent of electricity is generated using piped gas from Indonesia.
The rest of its fuel mix consists of fuel oil, followed by refuse, then diesel.
Singapore plans to import liquefied natural gas by 2012.
Mr Lim said: 'A more diversified energy system will help protect us against supply disruptions, price increases and other threats to energy security.'
The Government believes that a competitive market aids diversification.
The private sector is best placed to decide which technologies and fuels to use, rather than a top-down fuel mix prescribed by the Government, the report said.
The third strategy is to lift energy efficiency, that is, to do more with less energy. Policies include encouraging public transport usage and 'green' buildings.
Speaking to reporters, Mr Lim said oil prices are largely dictated by outside forces.
'There is very little that we can do to affect worldwide demand or supply. But what Singapore can do is to work harder at energy efficiency and consumption.'
Fourthly, Singapore plans to tap into growing demand for refined oil products and renewable energy to develop its economy. The aim: to generate $34 billion in annual economic activity and 15,300 jobs by 2015.
The fifth and sixth strategies are to step up international cooperation and to take a 'whole-of-government' approach. The Energy Policy Group is chaired by Permanent Secretary for Trade and Industry Peter Ong, and made up of officials from several ministries and agencies such as the Economic Development Board and the EMA.
The Government also announced the launch of a new Energy Studies Institute at the National University of Singapore, to conduct research into energy economics, energy security and the environment.
On test: New way to lower electricity bills
Tania Tan, Straits Times 13 Nov 07
Consumers can choose from six power suppliers much in the same way that they pick their cellphone plans
COMPETITION in the electricity market has helped stave off price increases amid soaring oil prices over the past six years.
And introducing more competition - this time in the sale of electricity to Singapore's households - will help consumers again by giving them more flexibility in picking the price plan that best suits their usage needs.
Underscoring the importance of freeing up the electricity market, Minister for Trade and Industry Lim Hng Kiang said that this 'has always helped keep power prices low'.
And this is why competitive markets will remain 'a cornerstone' of Singapore's energy policy, added Mr Lim, who was at the opening of the Singapore Electricity Roundtable at the Raffles City Convention Centre.
About a decade ago, the Public Utilities Board was the sole provider of all electricity services in Singapore.
The Government then restructured the industry, separating the generating of power from its distribution and also from the sale of power by the electricity retailer to the end consumer.
The business of power generation was first liberalised, and this saw the establishment of several privately owned power generation companies such as Tuas Power and PowerSeraya.
These companies were free to choose their own means of generating power.
And the diversification of energy sources led to lower electricity bills as generation companies looked for more energy-efficient means of power production, explained Mr Lim.
Since 2001, prices for oil - the favoured fuel for power plants - have leapt by over 200 per cent, said Ms Wong Mui Quee, director of the market department at the Energy Market Authority.
By contrast, electricity tariffs have increased by less than 10 per cent in the same period.
So far, businesses - which account for about 75 per cent of Singapore's total energy consumption - have been reaping the most gains from competition.
This is because they can buy their power directly from power companies, whereas Singapore households must buy their power from one electricity retailer: SP Services.
The next stage of liberalisation will therefore allow consumers to buy from retailers other than SP Services as part of a new Electricity Vending System (EVS) that was introduced last month.
If successful, the project, which is slated for completion in mid-2009, will see six retailers - Keppel Electric, SembCorp Power, Tuas Power Supply, Senoko Energy Supply, Seraya Energy and market incumbent SP Services - hitting the market with more competitive prices, spelling lower bills for users.
'With a change of vending system and better technology, we hope to give households the same choice,' said Mr Lim.
Allowing for multiple retailers will give consumers the ability to pick the electricity plan best suited to their needs, just like picking a mobile phone plan.
For example, those who work during the day and are at home only at night may be able to select price plans that provide cheaper electricity from the evenings instead.
Alternatively, households with heavy electricity usage may want to buy their power in bulk, akin to unlimited talktime on a mobile phone plan.
Currently, households are charged a flat rate of about 21 cents per kWh, which they purchase exclusively from SP Services.
'If we do it the traditional way, it is very prohibitive for the individual consumer, who pays $100 or $200 for their electricity every month,' said Mr Lim.
'We want to see how households, too, can reap the benefits of competition just like the wholesale market.'
What if oil hits US$120 a barrel?
Erica Tay, Straits Times 13 Nov 07;
IF OIL prices were to continue soaring, the best response, it seems, is to use energy more wisely.
Asked if Singapore had a crisis management plan should oil prices reach a tipping point of US$110 (S$159), or even US$120 a barrel, Trade and Industry Ministry Lim Hng Kiang told reporters: 'We are a price taker. There is very little we can do.
'I think our best solution going forward is a long-term one - towards efficiency and conservation and towards a more competitive market,' he said, on the sidelines of the Singapore Electricity Roundtable yesterday.
The price of crude oil, which stands at around US$96 a barrel, is the result of market forces and we have to learn to adapt to higher energy prices, he added.
Solar power is not yet a viable alternative for Singapore, so 'we have to be realistic', he said.
Solar energy will be competitive in five to 15 years, but it is not likely to replace other energy sources, particularly gas.
'At most, it may contribute maybe 2 per cent, maybe 5 per cent of our needs,' he reckoned.
Separately, Mr Lim told Parliament yesterday that Singapore's total installed capacity for generating solar energy is only 0.15 MW, very small compared with the peak electricity demand of more than 5,000 MW.
Even buildings with installations for tapping solar energy cannot meet their own needs from solar energy generated, and they have to tap electricity, like everyone else, from the national grid.
The use of solar energy is in its infancy in most parts of the world, because it is still relatively costly.
'While costs will decline with the advent of better technology, fossil fuels such as oil and gas will still remain a dominant part of the global fuel mix in the medium term. Singapore is no exception,' added Mr Lim.
Read more!
Posts
visitors since Nov 07