The Future

Is Renewable:

Targets and Policies

by Country

Phillip Riley Research Series

Singapore | April 2017

2

Introduction

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of Australia, the United States and various Asia Pacific nations. The reports look into

the countries’ renewable energy potential, climate change targets and the success of

their policy to date. Each report focuses on the current and future use of renewable

energy and takes into account the political, geographical and economic challenges

unique to each nation.

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The Future

is Renewable:

Targets and Policies

by Country

Singapore | April 2017

Author:

Daila Ziedars

4

Targets and Policies by Country:

Singapore

Singapore is different to all the other countries we have reported about so far and the

measures it is taking to combat climate change are subsequently also very different.

The combination of extremely limited resource availability and a dense island

population mean that cleaning up the energy mix and reducing carbon emissions is a

real challenge for Singapore. It has no fossil fuel resources and very little opportunity

to use renewables but emissions-reducing measures do need to be implemented as it

is host to several emissions-intensive industries, like petroleum refining and aviation.

Singapore is making the best of its situation by focusing on energy efficiency and

becoming a hub for technology and research in alternative energy solutions. Many

policies and programs have been introduced so that Singapore still contributes to the

global effort to mitigate global warming.

In 2009, Singapore committed to reducing emissions 16% below business-as-usual

(BAU) levels by 20201. Following that, Singapore also pledged to extend these

emissions reduction goals as a signatory of the Paris Agreement. They have now

committed to reduce emissions intensity (emissions per unit of GDP) 36% below 2005

levels by 20302. The government of Singapore has set out a four part plan to meet

these targets, called the Climate Action Plan.

Energy efficiency is often seen as the “low hanging fruit” in emissions reduction

schemes but for Singapore, with its limited alternative energy options, it is the

backbone of their measures and the first part of their Climate Action Plan. There are

many aspects to this part of the plan including improving the efficiency of industrial

businesses, introducing building standards, strengthening vehicle fuel efficiency

standards, boosting public transport use and setting Minimum Energy Performance

1 National Climate Change Secretariat Strategy Group, Singapore’s Climate Action Plan, 2016, https://www.nccs.gov.sg/sites/nccs/files/NCCS_Mitigation_FA_webview%2027-06-16.pdf2 http://www.climateactiontracker.org/countries/singapore

5

Singapore

Standards (MEPS) for household appliances. Since the industrial sector is responsible

for a large portion of Singapore’s emissions, the government is targeting some of the

most emissions-intensive industries like petroleum refining, petrochemicals and

semiconductor manufacturing. They estimate that energy use by 2030 could be 20%

lower than BAU levels with energy efficiency measures in place1 so are looking to assist

industrial energy users with energy efficiency schemes and tax incentives. An aspect of

the energy efficiency plan that has already had some success is the Building and

Construction Authority’s Green Mark program. This has set a benchmark for

sustainable buildings and already 31% of buildings in Singapore have been awarded a

‘Green Mark’ for their efforts1 .

The second part of the Climate Action Plan is reducing carbon emissions from

electricity generation. Currently, Singapore generates the majority of its electricity

using natural gas, over 90%3, and is aiming to get this percentage up to 96%2. The use

of natural gas was increased to displace high-emissions oil-fired generation. Singapore

has looked into the potential for utilising local, renewable resources in its energy mix

but the options are limited. Unfortunately, wind speeds are too low for turbines, there

are no rivers available for hydro and there is no geothermal resource. Power

generation from biomass is not considered viable due to Singapore's small land size for

crops and nuclear power has been ruled out for now for the same reason - limited

space for exclusion zones. Being an island state, Singapore does have the potential to

utilise the ocean in power generation but the seas are quite calm in the area and most

of the coastal space is used by Singapore’s many ports. The only renewable resource

that can really be considered is solar.

Singapore does have decent solar irradiation but there are also fairly regular periods of

cloud cover and with its large urban population, urban solar systems have to contend

with shading from buildings. Utility-scale solar farms are not likely to be built as they

3 http://www4.unfccc.int/ndcregistry/PublishedDocuments/Singapore%20First/Singapore%20INDC.pdf

6

Singapore

usually take up a lot of land, which is in short supply in Singapore, and also do not

provide a consistent baseload supply of electricity alone. Despite all this, solar is being

used in Singapore more and more. There are some interesting programs and policies in

place to encourage its uptake and the government of Singapore has set a target to

increase peak solar installed capacity from 47 MW (in 2016) to 350 MW by 20204. By

2030, solar could account for 8% of total electricity on the grid4, which is significant

when considering all the challenges it has to overcome.

The government initiated a program called SolarNova, which is designed to accelerate

the uptake of solar. Through the SolarNova program, solar demand across all

government agencies is aggregated to get them bulk-buying power. They sign long-

term Power Purchase Agreements (PPAs) with private sector owner/operators of solar

panels for their solar power. The government agencies benefit by getting better pricing

and also the facilities that did not have the right circumstances for operating their own

PV systems gain access to the clean energy market. The government sector is leading

the way with the adoption of renewables but businesses are also seeing the benefits.

In 2015, Apple revealed it would power all its Singapore operations with solar energy -

the first company to do this in Singapore. They have a PPA with local solar company

Sunseap to buy power from 800 buildings to cover its needs5. These sorts of off-site

PPAs are becoming more common as many business do not have their own generation

capability.

Aside from solar, Singapore is also expanding its waste-to-energy field and some large

companies are installing co-generation and tri-generation systems in their facilities. For

example, GlaxoSmithKline Vaccines have installed a 1.8 MW tri-generation plant that

produces electricity, hot water, steam and chilled water and is saving the company

$1.4 million annually in energy costs1.

4 National Climate Change Secretariat Strategy Group: Singapore’s Approach to Alternative Energy, 2016, https://www.nccs.gov.sg/climate-change-and-singapore/national-circumstances/singapores-approach-alternative-energy5 https://www.edb.gov.sg/content/edb/en/industries/industries/clean-energy.html

7

Singapore

The third part of Singapore’s Climate Action Plan is developing their low carbon

technology sector. Singapore is promoting itself as an alternative energy “test-bed”

and is supporting a lot of research and development of low carbon technology for the

region. Researchers get assistance through a $900 million Urban Solutions and

Sustainability scheme, which funds research into solving the intermittency problems of

renewables (e.g. smart controls, storage, weather forecasting), smart meters and

demand side management, the effectiveness of interconnecting microgrids, integrating

renewables into the urban landscape and floating solar PV farms, amongst many other

projects. Singapore’s good financing capabilities and supportive government attracts

renewable energy companies from around the region to work on innovative projects

and get them to commercial stages.

The last part of the Climate Action Plan is about encouraging collective action.

Singapore is supportive of international actions and cooperation on climate change.

Domestically, the government is educating its citizens about climate change,

greenhouse gas emissions and energy efficiency, and the role that they can play. They

understand that having an engaged population goals makes the targets more

achievable.

In the government’s 2017 budget, it was announced that a carbon tax would be

introduced by 2019. The tax will be applicable to mostly upstream emitters like power

generators and heavy industry as opposed to small consumers. The tax provides

further incentive for companies to clean up their act and it will further stimulate the

development of clean energy technology. The revenue of the carbon tax will be used

to fund other emissions reduction measures.

The Climate Action Tracker has concluded that Singapore’s efforts in limiting global

warming to 2 degrees are inadequate and its targets are weak. They state that with the

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Singapore

current policies in place, Singapore’s emissions by 2030 will be a 123% increase on

1994 levels2 and given Singapore’s economic capabilities they could really stretch their

targets. Singapore is one of the world’s biggest hubs for aviation and navigation and

this is an enormous source of emissions (more than 3 times Singapore’s domestic

emissions2). Singapore is in a position to encourage these sectors to reduce their

carbon intensity and could become a role model internationally for industries that

often are disregarded in national emissions reduction plans.

Despite all this, Singapore’s plans for action against climate change are practical, given

their limited resource availability. There was no alternative energy industry in

Singapore prior to 2007 but by 2015, 100 clean energy companies had moved there5

and, given the government assistance and support available, this number will likely

continue to grow. Although renewables will not play a large role into the future,

Singapore will continue to be test-bed for innovative energy solutions and cutting-edge

clean energy research.

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Resource: https://www.ema.gov.sg/cmsmedia/Publications_and_Statistics/Publications/SES/2016/Singapore%20Energy%20Statistics%202016.pdf

natural gas95%

coal1% petroleum

products1%

others3%

Electricity generation by fuel type, Singapore (2015)

0

2

4

6

8

10

12

201420132012201120102009200820072006200520042003200220012000

t C

O2/p

op

ula

tio

nCO2 emissions per capita, Singapore (2000-2015)

**From fuel combustion onlyResource: http://www.iea.org/statistics/statisticssearch

0 20 40 60

2010

2011

2012

2013

2014

2015

Installed solar PV capacity (MW peak)

Solar PV installations, Singapore

non-residential

residential

Resource: https://www.ema.gov.sg/cmsmedia/Publications_and_Statistics/Publications/SES/2016/Singapore%20Energy%20Statistics%202016.pdf

natural gas77%

petroleum products

20%

others3%

Electricity generation by fuel type, Singapore (2010)

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National Climate Change Secretariat Strategy Group, Carbon Pricing, https://www.nccs.gov.sg/climate-change-and-singapore/domestic-actions/reducing-emissions/carbon-pricing

Sustainable Energy Association of Singapore (SEAS), Energy Efficiency, http://www.seas.org.sg/index.php?option=com_seasarticles&view=article&id=3&Itemid=

Sustainable Energy Association of Singapore (SEAS), Carbon Emissions, http://www.seas.org.sg/index.php?option=com_seasarticles&view=article&id=4&Itemid=

The Business Times, Singapore makes progress in testing renewable energy technologies, 2016, http://www.businesstimes.com.sg/energy-commodities/singapore-makes-progress-in-testing-renewable-energy-technologies

Asia Biomass Office, Renewable Energy Industry Policies in Singapore, https://www.asiabiomass.jp/english/topics/1303_05.html

International Energy Agency (IEA), Tax Incentive for Energy-saving Equipment, 2012, https://www.iea.org/policiesandmeasures/pams/singapore/name-22106-en.php?s=dHlwZT1yZSZzdGF0dXM9T2s,&return=PG5hdiBpZD0iYnJlYWRjcnVtYiI-PGEgaHJlZj0iLyI-SG9tZTwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy8iPlBvbGljaWVzIGFuZCBNZWFzdXJlczwvYT4gJnJhcXVvOyA8YSBocmVmPSIvcG9saWNpZXNhbmRtZWFzdXJlcy9yZW5ld2FibGVlbmVyZ3kvIj5SZW5ld2FibGUgRW5lcmd5PC9hPjwvbmF2Pg

Further Resources