Renewable energy in Singapore

Singapore is an island country with a population currently estimated to be 5.8 million. With its urban density and limited land space and resources, the Government has invested (and continues to do so) in building a sustainable environment and finding alternative energy options in order to, amongst other things, strengthen energy security of supply to satisfy the country’s energy demands and needs, and to also meet its carbon targets. In this regard the Singapore Government has introduced and implemented various plans to tackle the problem of climate change.  

Climate change is a multi-faceted problem requiring a multitude of solutions. The Government is tackling this complex problem by utilising not only clean energy but also renewable energy, whilst at the same time maintaining sustainability. Part of this solution is  the Singapore Green Plan 2030 (the “Green Plan”) which is an environmental blueprint which sets out Singapore’s ‘green’ strategies, initiatives and targets. 

The continued focus on developing a sustainable environment and transitioning to alternative ‘cleaner-greener’ energy options whilst enhancing energy security in the country is somewhat hampered by limited land area and resources. The Singapore Government has invested considerable amount of time and resources in both the renewables and clean energy markets, to get around these restrictions.  

To illustrate what has been taking place recently in the renewables and clean energy space, we focus on three key recent developments: 

1. cross border low-carbon or renewable electricity projects;  
2. solar energy deployment; and  
3. exploring hydrogen as a low-carbon solution (not produced from fossil fuels). 

These are summarised below. 

As part of Singapore’s initiatives and efforts to boost diversification in energy supply sources, on 25 October 2021 the Energy Market Authority (“EMA”) announced plans to import up to 4GW of low-carbon electricity imports into Singapore by 2035. This is intended to contribute to around 30% of Singapore’s electricity supply. Predominantly, the sources of electricity will be renewable such as solar and hydro-power.  

As part of developing the regulatory and technical framework for renewable electricity imports into the country, EMA has conducted import trials which will enable it to assess and continue to refine the framework.  

Below is a summary of the import trials: 

1. 100MW electricity imports trial from Peninsular Malaysia – In October 2021, EMA appointed YTL PowerSeraya Pte Ltd (“YTL PowerSeraya”) as the importer for the 100MW electricity imports trial from Peninsular Malaysia, scheduled to commence in 2023. In January 2023, YTL PowerSeraya and TNB Power Generation Sdn Bhd (“TNB Genco”), a wholly-owned subsidiary of Tenaga Nasional Berhad (“TNB”) jointly announced their agreement to export 100MW of electricity from Malaysia to Singapore via the newly upgraded interconnector. YTL PowerSeraya will purchase electricity from TNB Genco. This will be the first time electricity from Malaysia will be supplied to Singapore on a commercial basis. Coupled with the news of Malaysia’s announcement of the lifting of its ban on export of renewable energy, this 100MW import by YTL PowerSeraya could very well mark the first of many other commercial transactions for electricity (including those from renewable sources) between Singapore and Malaysia, further strengthening Singapore’s “regional grid architecture” plan. 
2. Pilot with a consortium led by PacificLight Power Pte Ltd (“PLP”) to import 100MW equivalent of non-intermittent electricity from a solar farm in Pulau Bulan, Indonesia. Electricity will be supplied via a new interconnector that directly connects the solar farm in Pulau Bulan to PLP’s power station in Singapore.  
3. The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (“LTMS-PIP”) – this project commenced on 23 June 2022 where up to 100MW of renewable hydropower will be traded from Lao PDR to Singapore via Thailand and Malaysia utilising existing interconnectors. This is the first renewable energy import into Singapore and the first multilateral cross-border electricity trade involving four ASEAN countries, with Keppel Electric being the first entity to be issued an electricity importer licence by EMA. As part of the LTMS-PIP project, Keppel Electric Pte Ltd (“Keppel Electric”) and Electricite du Laos (“EdL”) signed an initial two-year power purchase agreement. To support the Green Plan and to address the rising demand for renewable energy and energy transition, Keppel and EdL are also working together on the development of renewable energy tracking, verification and assurance through Renewable Energy Certificates, and other long-term renewable electricity supplies. 

Following the successful commencement and implementation of the LTMS-PIP project there are two further important developments on the horizon: 

1. the grant of a conditional approval from EMA to Keppel Energy Pte. Ltd. (“Keppel Energy”) for the import of 1GW of renewable electricity, generated from solar, hydropower and possibly wind power, from Cambodia into Singapore and as a result of this grant, Keppel Energy has signed a long-term power purchase and export agreement with Cambodia’s Royal Group Power (“RGP”) for RGP to supply and export the electricity and for Keppel Energy to import utility-scale low-carbon electricity into Singapore; and 
2. signing of a Memorandum of Understanding on Renewable Energy Cooperation between Singapore and Indonesia which is designed to establish a cooperative institutional framework to facilitate investments in developing the renewable energy manufacturing industries in Indonesia and electricity trading projects between the two countries. 

Despite its geographical limitations, Singapore is known for its modern infrastructure and focus on technological advancement. These two characteristics, together with the Government’s continued pursuit for clean sustainable energy solutions, complement Singapore’s solar energy potential. According to the EMA, Singapore “receives an average annual solar irradiance of 1,580 kWh/m2/year and about 50% more solar radiation than temperate countries”1; therefore, making solar PV generation as one of the renewable energy sources for wider deployment in Singapore.  

Singapore’s solar capacity has increased by more than nine times since 2015 and panels can now be found on many public housing rooftops, commercial buildings, inland floating systems, and major tourist attractions such as the ‘Gardens by the Bay’. In addition, the country has created and employed the following programmes, developments and improvements which highlight the Government’s commitment towards achieving its target of producing at least 2 gigawatt-peak of solar PV capacity by 2030 (this is equivalent to powering approximately 350,000 households):  

1. the SolarNova programme was introduced in 2014 and co-led by the Housing Development Board (“HDB”) and the Economic Development Board (“EDB”). One of the programme‘s objectives is to encourage the use and drive the demand for solar PV across the public sector. In this respect, HDB has also recently announced its eighth solar leasing tender under the SolarNova programme for the installation of solar panels (with a solar capacity of 113MW) in more than 1,000 HDB blocks and 100 government sites which is expected to be completed by the third quarter of 2026; 
2. the HDB Green Towns Programme – this was introduced in 2020. The programme’s objective is to implement sustainable living to HDB towns by 2030 through usage of solar panels and other non-solar initiatives such as smart LED lighting, urban water harvesting system, and cool coatings;  
3. development of floating solar farm - this floating solar farm is in the Tengeh Reservoir and has a capacity of 60MW. The success of this development will likely lead to the investment of similar projects in Singapore and in the region; 
4. research and development - the Solar Energy Research Institute of Singapore (“SERIS”) focuses its research on enhancing the efficiency and cost-effectiveness of solar technologies. SERIS collaborates with local and international partners to develop innovative solutions, such as advanced solar cells, energy storage systems, and smart grid integration; 
5. various improvements to adopt solar energy - the EMA has also implemented various improvements in the market and regulatory framework to aid in the use and adoption of solar energy. These improvements include the Enhanced Central Intermediary Scheme which allows consumers with smaller solar panel systems to sell their excess electricity into the wholesale electricity market through SP Services (a subsidiary of the SP Group – a state-owned electricity and gas distribution company), and the Solar Generation Profile which enables consumers with embedded solar PV generation to estimate their solar generation output instead of installing the relevant metering systems at each generation point. 

Whilst the global hydrogen market is fairly nascent, it is gathering a degree of momentum.  Singapore is considering the development of a hydrogen economy, believing that it could be an important focus area that can contribute to its commitment to decarbonisation, sustainable living, strengthening energy security and tackling climate change. 

In October 2022, the Government launched the National Hydrogen Strategy, emphasising that Singapore recognises low-carbon hydrogen as a key solution to achieving net zero emissions on the basis that hydrogen does not release greenhouse gases when combusted and hence, can be used as a low-carbon fuel or feedstock. Therefore, with technological developments, hydrogen can be utilised as a potential alternative to fossil fuel in industries including, manufacturing, and transportation. This allows implementation of the government’s policy to switch from fuel oil for power generation and complimenting the country’s other renewable initiatives.  

In short, Singapore’s National Hydrogen Strategy focuses on the following: 

1. Experimenting with hydrogen technologies that are developed and nearing commercial readiness. As part of this experiment, the Government plans to launch a small-scale commercial project on utilising ammonia for power generation, including being involved in the BOO model for low or zero-carbon ammonia power generation and bunkering solutions on Jurong Island (Singapore’s main industrial area for housing refineries, olefins production and chemical manufacturing facilities). 
2. Research and development work to develop, advance and improve hydrogen related technologies, including establishing processes and framework for the import, transportation, storage, handling, managing and utilisation of hydrogen as well as ammonia. 
3. Cooperation and partnership with industry and international partners in the supply chain for low-carbon hydrogen, such as forming a trading and financing system for the global supply and trade of low-carbon hydrogen. 
4. Development of land and infrastructure planning for the import, storage, distribution and transformation of hydrogen into a power source and phasing the implementation stages vis-à-vis safety policies and procedures, technological advancements and cost assessments. 
5. Working with the relevant industry and education sectors to support workforce training so as to ensure that enterprises and workers in Singapore have the skills to learn and accommodate new opportunities resulting from the hydrogen market. 

Practically, due to Singapore’s limited land area and the country being ‘resource-constrained’, it is unlikely for hydrogen to be produced locally. However, as an alternative, the Government recognises the importance for Singapore to become the net importer and trader of hydrogen through international cooperation and partnerships. With this in mind, the country’s focus and investment in research and development work, together with the other key developments as listed above, will continue to be an essential part of the National Hydrogen Strategy.