Singapore: Singapore Energy Profile

Singapore, officially the Republic of Singapore, is a Southeast Asian island city-state off the southern tip of the Malay Peninsula, 137 kilometres north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the Singapore Strait to its south.

The country is highly urbanised with very little primary rainforest remaining, although more land is being created for development through land reclamation. Part of various local empires since being inhabited in the 2nd century AD, Singapore hosted a trading post of the East India Company in 1819 with permission from the Sultanate of Johor.

The British obtained sovereignty over the island in 1824 and Singapore became one of the British Straits Settlements in 1826. Occupied by the Japanese in World War II, Singapore declared independence, uniting with other former British territories to form Malaysia in 1963, although it was separated from Malaysia two years later. Since then it has had a massive increase in wealth, and is one of the Four Asian Tigers. Singapore is the world's fourth leading financial centre, and its port is one of the five busiest ports in the world. The economy depends heavily on exports and refining imported goods, especially in manufacturing, which constituted 26% of Singapore's GDP in 2005.

In terms of purchasing power parity, Singapore has the third highest per capita income in the world. Singapore is a unitary multiparty parliamentary republic with a Westminster system of unicameral parliamentary government. The People's Action Party has won every election since self-government in 1959. There are slightly over 5 million people in Singapore, of which 2.91 million were born locally.

The population is highly diverse; the majority are Chinese with almost 75% of the total population, while Malays and Indians forming significant minorities. Reflecting this diversity, the country has four official languages: English, Chinese, Malay, and Tamil. One of the five founding members of the Association of South East Asian Nations (ASEAN), the country is also the host of the APEC Secretariat, and a member of the East Asia Summit, the Non-Aligned Movement, and the Commonwealth.

Energy sources

Total installed electricity capacity (2008, source: U.S Dept. of Commerce): 11,500 MW
Natural Gas: 70%
Oil: 30%

Total primary energy supply (2008, source: IEA): 18,523 ktoe
Oil and products: 62.2%
Natural gas: 37.7%
Coal: ~0.01%

Natural gas supply grew by 1.1% between 2008 and 2009, to 6233 ktoe (a lower rate of increase than the 3.5% between 2007 and 2008). Petroleum product supply declined by 25.4% from 2008 figures, to 20 421 ktoe; by comparison, oil supply declined by 5.4% between 2007 and 2008.

In 2009, 41 810 GWh of electricity was generated, which is a 0.2% increase over the 41 717 GWh generated in 2008. Peak request for electricity was 6041 megawatts (MW) in 2009 compared with 6073 (MW) in 2008. Singapore’s power generation is based entirely on thermal power plants, with the exception of small photovoltaic installations connected to the grid. In 2009, the licensed power generation capacity of thermal power plants was 10 230 MW, which includes four large incinerators with a total electricity generating capacity of 275 MW (and a total incinerating capacity of 2.5 million tonnes of solid waste per year). In 2009, Singapore has 31 grid-connected solar photovoltaic installations with total capacity of 442.2 kWp.

The fuel mix for power generation in 2009 is dominated by natural gas (82.1%) with some petroleum products (15.4%) and other fuels (waste & solar) (2.5%). The power generation reserve margin is about 37%, well in excess of Singapore’s 30% minimum reserve margin for power system security.

Reliance

Singapore almost entirely relies on energy imports to meet its domestic energy needs. In 2009, the economy imported 44 136 ktoe of crude oil and 86 266 ktoe of petroleum products. Crude oil refined in Singapore’s oil refineries produced 38 740 ktoe of petroleum products. Some 87.9% of total petroleum products, both those imported and those produced in Singapore’s refineries, were intended for export and international bunkers – the total exported or sent to bunkers was 109 937 ktoe.

Extend network

Singapore has a single grid serving 99.9% of the people. Work has begun on construction of a submarine cable connecting the mainland to Pulau Tekong Island, which is currently relying on diesel generators. The transmission network in the country operates at 400 kV, with 230 kV lines connecting the Senoko power station with the southern, 400 kV part of the grid. Two 230 kV submarine cables connect the transmission system of Singapore Power Ltd. to the Malaysian national grid, at Senoko. Transmission capacity is 200 MW.

Capacity concerns

With natural gas having such a large share in electricity production, the diversification of supply has become an significant issue. This has been highlighted by several power outages since 2003, inclunding a brief outage in 2006 that resulted from a disruption of the gas supply from Malaysia. Such risk has made the potential cost of before shelved LNG importation plans additional acceptable. Following a feasibility study in 2005, the government decided in 2006 to import LNG, and to build an LNG receiving terminal, which is expected to be operational by 2013, with an initial capacity of 3 Mt/year. Meanwhile, Singapore has introduced controls on new piped natural gas imports to allow for the build-up of LNG request until the capacity of 3 Mt/year is fully utilised.

There is as well concern that new developments in generation capacity, particularly in the south-west of the country, will be constrained by lagging developments in the transmission network. Approximately 1,600 MW of new capacity is planned for the region in the immediate next, however, new developments in the transmission network are planned to be completed in 2014, limiting the transmission capacity of the region to the rest of the country for the intervening period.

Renewable energy

Solar energy
The greatest potential for renewable energy in Singapore comes from solar energy. Solar thermal energy for hot water has been implemented commercially in several hotels and large scale catering facilities. However, commercial photovoltaic technologies are still perceived as costly, with low energy yields, and Singapore has been involved in various research efforts envisaging increasing use of renewable energy sources someday through new technological advances that may drive the cost of generation down. The National Research Foundation (NRF) produced a primer on the potential for photovoltaic use in the country in 2011, concluding that peak request on average coincides with peak production potential from PV installations, and that the grid system of the country, with sufficient application of load balancing practices, and peak shaving of PV systems, is suitable for further PV uptake. Singapore further aims to have 35 MWt of solar thermal systems by 2012.

The National Environment Agency (NEA) encourages private and public sector partners to explore and test-bed new technologies (for example solar energy, and fuel cells) through schemes such as the Innovation for Environmental Sustainability (IES) fund, which co-funds innovative environmental projects and the Environmental Test-bedding Initiative, which allows access to public infrastructure for test-bedding purposes. For instance, NEA, together with EDB and EMA (Energy Market Authority), facilitated the installation of a 14.5 kW p grid-connected PV system at the German European School in Singapore.

Biomass energy
Efficient uses of municipal solid wastes have potential for use in large-scale power generation. Wood and horticultural wastes have as well been proposed as potential feedstocks for biomass power generation. In addition, energy recovery from municipal wastes via incinerators has been performed in the country since the 1970s. Several companies in the country have declared an interest in biomass power generation, although current utilisation is still at a demonstration project level. Two full-scale demonstration projects of 1.5 MW are currently operational, utilising woody biomass.

Wind energy
Average wind speeds in the country are 2-3 m/s, indicating a sub-optimal potential for the utilisation of wind energy. However, the potential is being investigated by several companies, notably Cygnus Power, a company that designs and manufactures vertical wind turbines, specifically for low-wind conditions. The company is currently piloting two 1 kW units in urbanised areas. Pilot projects are currently being constructed in suitable areas in the country. The potential for the use of wind kinetic energy as a power recovery mechanism, for example on cooling towers and ventilation systems, is as well being investigated.

Hydropower
There is limited potential for hydro-electric power generation in Singapore, mostly due to the unfavourable geographic conditions in the country.

Geothermal energy
The country has 3 suitable hot springs for electricity generation, with an average temperature of 70 degrees Celsius. A theoretical output of 50 MW is not out of the range of the resource, according to studies. The country’s geothermal resource is particularly characterised by very high heat flow, indicating a significant potential for geothermal energy uptake.

Energy efficiency

The implementation of a competitive electricity market has enabled better efficiency to be completed in the power generation sector. Singapore’s in general power generation efficiency improved from 38% to 44% over 2000–06. This development was driven mainly by the move from oil to combined cycle gas turbines in the generation mix. The Energy Efficiency Program Office (E2PO) expects further generating efficiency improvements and is promoting cogeneration and tri-generation in Singapore.

Singapore’s total final energy consumption (TFEC) was 13,398 ktoe in 2007, a fall of 15.3% from 2007 (15,824 ktoe). In 2008, petroleum products accounted for 76.4% of the economy’s TFEC; electricity, 22.8%; and natural gas, 0.8%. The industry sector share of TFEC, inclunding the production of petrochemical feedstocks, was 67.1%; the transport sector, 18.1%; and the residential and commercial sector, 14.8%. Between 2006 and 2007, the industry sector had the highest increase in energy use (6.8%), followed by the transport sector (3.8%), and the residential and commercial sector (3.8%).

Ownership

Electricity market
In June 2007, Temasek Holdings (www.temasekholdings.com.sg) confirmed its plan to divest all three of its all owned Singapore power generation companies; PowerSeraya (www.powerseraya.com.sg), Senoko Power (www.nwsp.com.sg) and Tuas Power (www.tuaspower.com.sg) over the following 12 to 18 months. Divestment of the three generation companies was considered the next step towards liberalisation of Singapore’s electricity market. The sale of PowerSeraya in December 2008 concluded Temasek’s divestment of its three power generation companies marking the completion of transition to a fully competitive power generation market, a process which began with restructuring Temasek’s generating assets in 1995.

SP PowerAssets Ltd. (http://www.sppowerassets.com.sg/) is the owner and manager of the national transmission network. SP PowerGrid Ltd. (http://www.sppowergrid.com.sg/) has been appointed by SP PowerAssets to carry out the operation and management of the transmission business, as a transmission agent licensee through the Energy Market Authority. Retail of electricity is carried out through the Energy Market Company (http://www.emcsg.com/), which operates the national electricity market. Distribution companies include arms of the major power generation companies, inclunding three other private companies, GMR Supply (Singapore) Pte Ltd, Keppel Electric Pte Ltd, and SembCorp Power Pte Ltd. Non-market participant retailers are not required to register with the EMC, instead purchasing electricity not instantly through the market support services licensee, SP Services Ltd. (http://www.singaporepower.com.sg/irj/portal/spservices).

Natural gas market
In January 2002, PowerGas Ltd (www.powergas.com.sg) divested its contestable business of gas import, production and retail. The manufactured gas production and retail business undertaken by City Gas Ltd, and the natural gas import business undertaken by Gas Supply Ltd transferred to Temasek Holdings. With this divestment, PowerGas Ltd became a gas transporter. Under the new gas industry framework, transportation of natural gas will be regulated. PowerGas Ltd is not allowed to participate in gas import, trading and retailing. No other gas industry participant will be allowed to transport gas. SembCorp Gas Pte Ltd, which had diversified interests in gas transport, import and retail businesses, exited the gas transport business and transferred its gas pipelines to PowerGas Ltd via a statutory transfer under Section 98 of the Gas Act on 15 Sep 2008. . The town gas pipeline network, which is separate from the import and distribution network, serves about 50% of the households in Singapore. Town gas is manufactured and retailed by City Gas Pte Ltd. (http://www.citygas.com.sg/). Senoko Energy Ltd (Importer), Keppel Gas Pte Ltd (Importer), Sembcorp Gas Pte Ltd (Importer and Retailer), and Gas Supply Pte Ltd (Importer and Retailer) are all active in the natural gas sector.

Oil market
The Singapore Petroleum Company (SPC, www.spc.com.sg), a member of the Petrochina group, is a private firm involved in exploration, production, distribution and sale of crude and refined oil and petroleum products. The company as well owns a 50% share in the Singapore Refining Company Plc (http://www.src.com.sg/), which operates the country\\\'s major oil refining capacity.

Competition

In April 2001, the Energy Market Authority (EMA) was formed to regulate the electricity and gas industries and promote competition in these industries. In 2003, the National Electricity Market of Singapore (NEMS) commenced operation. In the NEMS, generation companies compete to sell electricity at each half-hourly interval to the new wholesale electricity market. Generation and distribution are unbundled in the country. The transmission network is privately-owned, and there is one licensed participant in the transmission of electricity, SP Powergrid Ltd.

Liberalisation of the retail market was implemented in phases, with plans to open up the market to full retail competition. The final phase of retail market liberalisation (full retail competition) is under review, which will involve the remaining non-contestable consumers, mainly small businesses and household consumers (additional than 1 million in number) that represent 25% of total electricity sales. The EMA is currently studying how best to introduce retail competition, which would hinge on smart meter technology.

Energy framework

The inter-agency Energy Policy Group, chaired by the Permanent Secretary of the Ministry of Trade and Industry, has developed an energy policy framework to maintain a balance between economic competitiveness, energy security and environmental sustainability. To meet its energy policy objectives, Singapore is focusing on five key strategies:
- Strategy 1: Promote competitive markets to keep energy affordable and ensure economic competitiveness. Correction of any market failures will be made by using market-based instruments or imposing standards and regulations. The private sector will be encouraged to innovate and achieve energy security, and environmental outcomes that Singapore is seeking.
- Strategy 2: Diversify energy supplies to protect against supply disruptions, price increases and other threats. In competitive markets, companies will have incentives to diversify and reduce commercial risks. The government’s role is to create an open and flexible framework that allows diversification to take place.
- Strategy 3: Improve energy efficiency to achieve all the objectives of the energy policy, whilst reducing business costs, pollution and CO2 equivalent emissions. The government has set up the Energy Efficiency Programme Office (E2PO) and developed an energy efficiency plan called Energy Efficient Singapore (E2Singapore). Measures included under the E2Singapore program include measures in all sectors of the economy, from improved building codes to minimum appliance performance standards and labelling, to ESCO establishment and accreditation, and awareness-raising/public capacity building projects.
- Strategy 4: Build the energy industry, and invest in energy R&D, to turn energy challenges into opportunities, and to meet rising world and regional request for energy. Singapore will increase its refining capacity, consolidating its status as Asia’s premier oil hub, and expand its energy trading products to include liquefied natural gas (LNG), biofuels, and carbon emissions credits. Singapore will pursue clean and renewable energy, inclunding solar energy, biofuels, and fuel cells.
- Strategy 5: Step up international cooperation to further the economy’s energy interests, particularly to enhance energy security. Singapore continues to be actively involved in forums, inclunding the Association of South-east Asian Nations, the Asia–Pacific Economic Cooperation, and the East Asia Summit. Singapore as well participates in the United Nations Framework Convention on Climate Change.

Three key documents have been issued by the Government, promulgating the energy policy and strategy of the country: the 2007 National Energy Policy Statement, which deals with consumption issues in the power and transport sectors, inclunding efficiency; the 2008 National Climate Change Strategy, dealing with GHG emissions reduction, mitigation efforts and capacity-building for climate change, and the 2009 Sustainable Development Blueprint, which deals with efficient economic increase and social development strategies.

Energy debates

To further increase the EE of Singapore’s land transport system, the government is focusing on encouraging better use of public transport, with a goal of achieving a 70:30 ratio between public and private transport journeys by 2020. The use of additional fuel efficient vehicles, and reducing congestion on roads in the country, would as well be promoted. Policies under consideration include mandating fuel economy labelling, and efforts to increase public awareness of fuel efficient driving habits.

The EMA recently issued a statement detailing the near-next development plans of the electricity transmission network, to accommodate the growing number of generation projects requiring grid connection in the country, inclunding regulations regarding the maximum permitted export capacities in the network under normal operating conditions, inclunding constrained operation.

Singapore is currently in the process of drafting the National Climate Change Strategy 2012, building on the measures set out in the 2008 strategy. Targeted areas include clean vehicles, the promotion of practical advice for SMEs, and the setting of a minimum National EE Portfolio Standard.

Energy studies

Singapore is member of ASEAN (Association of South-east Asian Nations). Energy has played a vital part in moving ASEAN nations towards economic integration. The ASEAN nations have actively pursued cooperation for the full utilisation of their energy potentials. The ASEAN Vision 2020, adopted in 1997, calls for cooperation to establish interconnecting arrangements for electricity and natural gas through the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects.

Beyond ASEAN, the country is engaged in ASEAN+3, particularly the New Energy Forum for Sustainable Development since 2008; the East Asia Summit (EAS), the ASEAN Regional Forum (ARF), the Asia-Pacific Economic Cooperation (APEC), and Asia-Europe Conference (ASEM) energy co-operation. All of these forums aim to develop the regions’ energy security. For example, within the EAS Energy Cooperation Task-force, Singapore and Australia have co-sponsored an initiative to promote energy market integration.

Role of government

The Ministry of the Environment and Water Resources (MEWR, http://app.mewr.gov.sg) is responsible for climate change and environmental policies, inclunding energy efficiency.

The Ministry of Trade and Industry (MTI, www.mti.gov.sg) is responsible for drafting and implementing energy market policy, inclunding pricing mechanisms.

The Ministry of Foreign Affairs (MFA, www.mfa.gov.sg) is responsible for energy security.

Government agencies

The National Environment Agency (NEA, http://app2.nea.gov.sg/index.aspx) implements environmental policy, inclunding policies relating to energy and its use.

The National Climate Change Committee (NCCC, http://was.nl.sg/details/www.nccc.gov.sg.html) was formed from the National Energy Efficiency Committee in 2006, following the announcement of Singapore’s plans to accede to the Kyoto Protocol. The NCCC is dedicated to promoting energy efficiency, inclunding the research and development of low-carbon and sustainable technologies.

The Energy Efficiency Programme Office (E2PO), a multi-agency committee, promotes and facilitates the adoption of energy efficiency in Singapore under the following four strategic thrusts:

• Stimulate request for energy efficiency
• Develop human and institutional capabilities
• Promote emerging energy efficient technologies and innovation
• Profile and promote energy efficiency internationally

The energy efficiency efforts are targeted at various sectors, such as power generation, industry, transport, buildings and households.

Energy procedure

As part of its strategy to meet its energy policy objectives, the Singapore Government is keen to pursue increase opportunities in clean and renewable energy, inclunding biofuels and solar energy. Several renewable energy initiatives are underway to transaction with the economy’s energy challenges.

• Singapore’s modern, electricity-generating incineration plants make use of renewable waste-to-energy, annually consuming 2.5 million tonnes of biomass and wastes.
• The government’s major focus on RE is solar power. Singapore has established R&D and test-bedding initiatives to help companies and researchers advance the development of solar technologies. Singapore’s test-bedding efforts seek to improve considerate of the best practices for optimising the performance of solar PV systems in tropical, urbanised environments.
• The Housing Development Board (HDB) currently has a SGD 31 million solar test-bed programme that involves solar capability trials in 30 HDB precincts.
• Under a solar leasing model a private company will design, finance, install, operate and maintain 2MWp of solar PV systems. The Pasir Ris-Punggol Town Council will pay Sunseap for solar power generated and consumed at a rate that is not higher than the retail electricity tariff rate.
• The Economic Development Board (EDB) and Public Utilities Board (PUB) will pilot a SGD 11 million floating PV project at Tengeh Reservoir, which aims to assess the feasibility of installing floating solar PV systems as an alternative to rooftop-based installations.

Climate change
In 2009, the Inter-Ministerial Committee on Sustainable Development launched the Sustainable Singapore blueprint, A Lively and Liveable Singapore: Strategies for Sustainable Growth. The blueprint was devised and created to bring about changes that would shape Singapore into a sustainable city-national; it contained strategies and initiatives needed for Singapore to achieve both economic increase and a healthy living environment over the next two decades.

A four-pronged strategy will be employed to achieve the vision for Singapore as a sustainable city. This includes boosting resource efficiency, enhancing the urban environment, building capacities, and fostering community action. The blueprint has a 20-year time-frame, with identified key goals for 2030 and intermediate goals for 2020. The blueprint’s goal for the energy sector is to reduce energy intensity (consumption per dollar GDP) by 20% from 2005 levels by 2020, and by 35% from 2005 levels by 2030.

Energy technology/R&D
R&D is one of the major pillars in Singapore’s comprehensive Sustainable Development Blueprint for building a clean energy industry world hub, where clean energy products are developed, made and exported. With an emphasis on solar energy, the government has provided initial funding support of SGD350 million for the program. By 2015, the clean energy industry is expected to contribute SGD 1.7 billion to Singapore’s GDP, and create 7,000 jobs.

The Clean Energy Programme Office (CEPO), an inter-agency work group, was formed to harmonise increase of the industry. The CEPO has launched several comprehensive programs, inclunding two programs to support the solar industry in Singapore: the Solar Capability Scheme and the Clean Energy Research and Test-bedding Program. Launched in 2008, the SGD20 million Solar Capability Scheme seeks to encourage innovative designs and integrations of solar panels into green energy buildings. In March 2007, the Research, Innovation and Enterprise Council (RIEC) chaired by the Singapore Prime Minister, endorsed Clean Energy as a key increase area for Singapore. The SGD 50 million Clean Energy Research Program to support R&D in clean energy technologies offers funding support of up to 100%.

Energy regulator

The Energy Market Authority (EMA, www.ema.gov.sg) promotes competition in the electricity and piped gas industry, and maintains the security and reliability of the power system. Formed on 1st April 2001, the EMA is a statutory board under the Ministry of Trade and Industry that regulates the electricity and gas industries and district cooling services in designated areas. The EMA has before worked on details for the privatisation of the electricity sector, inclunding efforts to maintain a fasten and reliable electricity industry.

Degree of independence

The EMA consists of seven members, one deputy chairman and the chairman. Board members consist of government representatives, inclunding foreign nationals with experience in the sector, and notable private-sector operators. Funding for the Authority comes from levies imposed on licensed operators, with financial autonomy from the government. However, the Minister of Trade and Industry is allowed to give direction to the authority, for the purposes of fulfilling government mandates, inclunding in cases of national emergency.

Regulatory framework

There are three divisions within the Energy Market Authority (EMA):

The Power System Operation Division is responsible for operating the electricity system and maintaining system security.

The Regulation Division regulates primarily the electricity and piped gas industries.

The Corporate Services Division is responsible for promoting organisational excellence.

Regulation for the electricity sector is established in the Electricity Act (Chapter 89A), and pertain to workers in electricity services, inclunding the installation of equipment, and the rights of consumers.

The EMA is keen to promote the test-bedding of renewable technologies in Singapore, with established support schemes for solar PV installations, inclunding promotion mechanisms for micro- and low-speed-wind technologies, and second-generation biofuels.

Regulatory roles

The EMA is committed:

i. To forging a competitive market,
ii. To promoting high quality performance in the industry,
iii. To nurturing a progressive industry,
iv. To maintaining a fasten and reliable electricity system,
v. To safeguarding consumers\\\' interests.

Pursuant to the Energy Market Authority of Singapore Act (Chapter 92B) of 2004, the EMA is responsible for:
- creating a market framework in respect of the supply of electricity or gas; or other goods or services regulated by the Authority under any written law, which promotes and maintains equitable and efficient market conduct and effective competition or, in the absence of a competitive market, which prevents the misuse of monopoly or market power;
- ensuring that all reasonable demands for the supply of electricity are satisfied;
- protecting the interests of consumers in respect of the quality of electricity supply, gas supply and district cooling services provided;
- protecting the interests of the public in respect of the supply and use of electricity and gas and the provision of district cooling services;
- promoting the efficient use of energy utilities;
- exercising licensing and regulatory functions in respect of electricity, gas and district cooling systems and services, inclunding the establishment of standards and codes relating to any matter in connection therewith;
- advising the Government on national needs, policies and strategies relating to energy utilities, and on matters appertaining to the Authority generally; and
- exercising any other functions and duties conferred on the Authority by or under any other written law.

In addition to this, the electricity tariff for all producers in the country is set quarterly by the EMA and implemented by SP Services, which has billing responsibility.

Energy regulation role

The development of energy policy is the responsibility of the Ministry of Finance, through its Energy Division. As the parent Ministry of the EMA, the Ministry of Trade and Industry is as well involved in energy regulation, although not instantly. Representatives from both Ministries are present on the Board of the EMA.

Regulatory barriers

The drive and impetus for the uptake of renewable energy in Singapore is present and growing. Continued development of the sector, inclunding the creation of pertinent regulations for the improved and increased uptake of renewable energy technologies, is vital for the country\\\'s energy development goals. The institution of financing mechanisms for renewable energy projects, for example, would promote further private- and public-sector involvement, through the removal of the traditional barrier of high start-up capital requirements. Feed-in tariffs are a good example of a proven financing mechanism for the promotion of renewable energy uptake, and are a system currently unused in Singapore.