Singapore is planning massive structural changes to make itself energy-secure through better policies as well as technology. It plans expansion of its energy industry to $24 Billion by 2015.
Singapore is in an expansion mode of its energy industry to the tune of S$34 Billion (US$ 24 Billion) by 2015, up from the current S$20 Billion, by boosting its oil-trading, oil refining, and sectors of renewable energy, as confirmed by the Singapore government, according to the news published by Reuters.
Escalating oil prices, rising global energy demands, restricted and unsecured supplies from oil-producing nations in addition to climate change due to greenhouse gas emissions are the major challenges confronted by Singapore which is largely dependent on the imports to meet its energy needs.
To deal with these challenges, steps are likely to be undertaken to enhance energy security by diversifying the sources of energy and using a mix of fuels presently used for producing electricity. Traditional sectors like oil-refining and oil-trading would continue their growth, while new sectors like renewable energy and energy products trading have been earmarked as potential growth areas.
At present, more than 75% of Singapore's electricity is produced from Piped Natural Gas (PNG) bought from Indonesia and Malaysia. But rising demand in those countries’ domestic market means that they might fail to go on with the PNG exports to Singapore. Thus, the government contemplates building a Liquefied Natural Gas (LNG) import station by 2012 for secured supplies. The government further intends to extend it close to 2020s if the demand for spot trading arises.
The agenda also intends at improving energy efficiency of Singapore. It also plans to encourage competition in the energy market. The Singapore Government has committed more than $300 Million to boost research and development capabilities, like the Economic Development Board's $17 Million Clean Energy Research and Test-bedding Module.
Singapore is also modernizing the energy industry by making exploring clean energy sources, like solar energy, fuel cells and bio-fuels, to meet growing global as well as regional energy demands.
A Senior Research Analyst at RNCOS opines, “The energy sector is a major money-spinner for Singapore economy. Hence, the government is formulating important steps to ensure stable growth of its energy sector. Also, the rapid increase in the oil and electricity prices across the world will in return give back the total investment made by the government along with interest, considering the main purpose of the government to export its energy sources”.
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