Market Intelligence
Energy Singapore

Singapore Clean Energy

Singapore doubles down on domestic efforts to address its energy needs.

The confluence of factors such as geopolitics, global post-pandemic recovery, climate change and the rise in commodity prices has spurred the global demand for clean energy which includes solar, geothermal, hydrogen, offshore wind, and nuclear.  Singapore meets 95% of its energy needs through imported natural gas and hence recent developments in the energy market has negatively affected Singaporean consumers, companies and energy retailers in the following ways:

  • Electricity tariffs from April to June 30, 2022 increased by an average of 9.9% as compared to the previous quarter.
  • SMEs faced energy bill increases of 300 – 400% in recent months.
  • There are only eight surviving electricity retailers in Singapore, after three of them, including a major market player left since they were not able to cope with the high oil prices.

Singapore is countering the recent turmoil in the energy market to stabilize prices both in the short-term and the long-term through various initiatives.  In the short-term, the government seeks to alleviate the cost-burden that has fallen on consumers and businesses alike in the market through a series of subsidies and policies as listed below:

  • A US$73 utilities credit was given to every Singaporean household as part of a US$1.1 billion support package to help lower-income families and vulnerable groups.
  • The Energy Efficiency Grant – provides local small and medium sized enterprises (SMEs) in the food services / manufacturing and retail sectors with up to 70% support to adopt energy-efficient equipment in pre-approved categories.
  • The Energy Market Authority has launched a temporary electricity contracting support scheme to shield SMEs from recent volatility in the price of wholesale electricity.

In the long-term, the energy reset pillar in the Singapore Green Plan 2030 gives an overview of the plans through four key areas:

  • Green Energy - Extensive deployment of solar panels to 3% of projected energy, diversify electricity supply with clean electricity imports and increase the efficiency of gas-fired power plants to reduce emissions.   
  • Greener infrastructure and buildings - the “80-80-80 in 2030” plan: To green 80% of all buildings and raise the sustainability standard, achieve 80% of new developments as Super Low Energy (SLE) buildings and reach an 80% improvement in energy efficiency for best-in-class green buildings.
  • Sustainable Towns & Districts - Cut energy consumption in HDB towns and districts by 15% 
  • Cleaner-energy Vehicles - All new cars must be of cleaner-energy models and increasing to 60,000 charging points nationwide by 2030.

Additionally, there are complementary efforts to enhance the Singapore Green Plan 2030 vision along with regional and international policies concerning this market:

  • To carry out extensive R&D in alternative shipping fuels like ammonia and hydrogen.
  • Securing approximately US$1 billion worth of offshore wind projects such as substations and wind turbine installation vessels. 
  • Nuclear energy could supply about 10% of the national needs by 2050.
  • The latest ASEAN Plan for Action for Energy Cooperation (APAEC) aims to expand multilateral electricity trading and increase the share of renewable energy in the region to 23% before 2030.

Overall, the clean energy market in Singapore looks strong as Singapore doubles down on domestic efforts to address energy needs while utilizing regional and international partners to further its ambitions.

For more information, please contact Commercial Trade Specialist, CHAN Yiu Kei