Lin Yanqin and Esther Fung
yanqin@mediacorp.com.sg

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 in
ternational 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.