Transcript National Energy Policy Report (Mr Tan Huai Tze)

The Changing Energy Landscape
Economic Competitiveness
Environment / Climate Change
Energy Security
New Opportunities
Re-Emergence of Energy Security
Political
risk
Increasing
cost of
production
Energy
Investments
Narrowing of
supplydemand gap
Strong
demand
Energy Security in Singapore
Singapore’s Crude Oil
Imports (2006)
Qatar
13.5%
Other
Middle
East
7.1%
Vietnam
4.4%
Australia
4.5%
Malaysia
3.7%
UAE
10.5%
Kuwait
18.0%
Singapore’s Electricity Fuel Mix
(1H2007)
Natural
Gas
75.8%
Refuse
2.3%
Others
5.4%
Diesel
0.3%
Fuel Oil
21.6%
Saudi
Arabia
32.8%
Source: EMA
Source: IE Singapore
No Silver Bullet
 Strong growth in
renewable energy, but
contributions still small
Global Primary Energy Supply
18000
MTOE
20042030
CAGR
16000
6.6%
Other
renewables
 Nuclear
14000
1.3%
 Fossil fuels will still
contribute around 80% of
global energy supply
Biomass
and waste
12000
Hydro
2.0%
Nuclear
0.7%
Gas
2.0%
Oil
1.3%
Coal
1.8%
4000
2000
Source: International Energy Agency
2030
0
2015
 Carbon sinks
6000
2004
 Clean use of fossil fuels
8000
1990
 Improve efficiency
10000
Establishment of Energy Policy Group
Energy Policy
Group
Economic
Competitiveness
(MTI)
Energy
Security
(MFA)
Environment /
Climate Change
(MEWR)
Industry
Development
(EDB)
Economic
Competitiveness
Environmental
Sustainability
Energy
Security
STRONG AND SUSTAINED ECONOMIC GROWTH
Exploit Convergence
Manage Trade-Offs
National Energy Policy Framework:
Energy for Growth
Energy Policy Group:
Six Key Strategies
1. Promote Competitive Markets
2. Diversify Energy Supplies
3. Improve Energy Efficiency
4. Develop Energy Industry and Invest in Energy R&D
5. Step up International Cooperation
6. Develop Whole-of-Government Approach
Strategy 1:
Promote Competitive Markets
 Competitive markets to help keep energy affordable
 Electricity Vending System to enable full retail
contestability
 Encourage the market to innovate
 Correct for market failures
Vibrant and competitive
electricity and gas
markets
Electricity Vending System
Strategy 2:
Diversify Energy Supplies
 Energy diversification to protect against supply
disruptions and price increases
 Avoid becoming overly dependent on any energy supplier
 In competitive markets, companies have incentives to
diversify
 Government’s role is to create an open and flexible
framework that allows diversification
 But specific policies may still be necessary at times when
market does not provide for sufficient diversity
Import of LNG
by 2012
Facilitating Introduction of New Energy
Technologies
 Research and development
 A*STAR’s Energy Technology R&D Programme
 SINERGY Centre
 National Research Foundation $170m
 Test-bedding and demonstration
 $17 m Clean Energy R&D and Testbedding Programme (CERT)
 $5 m Market Development Fund
 Reducing costs and facilitating grid connection
 Reduce cost of plugging into grid and participating in the
electricity market
 Publication of “Handbook for Photovoltaic Systems”
Keep Our Energy Options Open
Coal
• Cost competitive
• Pollution controls
• CO2 emissions
• Ash disposal
Solar
• Clean, plenty of sun in S’pore
• But high cost and intermittent
supply are key constraints
Biomass & waste-to-energy
• Cost competitive and clean
• Limited potential
Hydroelectric, geothermal & wind
• Cost competitive and clean
• But not available or viable in
Singapore
Nuclear power
• Stringent site requirements
• Need for long term solution for
disposal of nuclear waste
Strategy 3:
Improve Energy Efficiency
 Using energy more efficiently can reduce our
dependence on imports and enhance our security
 Also reduces carbon intensity, air pollution and
business costs
 Establishment of Energy Efficiency Programme
Office, led by NEA
 Development of comprehensive national energy
efficiency plan
 Sectoral approach – power generation, industry,
transport, buildings and household sectors
Tri-generation
System
Smart Meters
Intelligent
Lighting
Strategy 4: Build Energy Industry and
Invest in Energy R&D
DRIVERS
MARKETS
Energy Solutions
Transport
SECURITY
CLIMATE
CHANGE
Trade
(fuels, carbon)
Energy
Services
Grid
Management
Test &
Integration
URBANISATION
ECON
GROWTH
Power
Deliver
Integrate
Fossil
Energy
Gas
Biomass
Oil
Coal
Industry
Non Fossil
Energy
Fuel Cells
Wind
Solar
Others
Strong technology foundation
Building
Widen our Lead in Oil and Develop New
Verticals
Oil
Gas
Solar
H2 /Fuel Cells
Biomass
New R&D Programmes
NRF’s Clean Energy Programme
EDB’s Clean Energy Research &
Test-bedding Programme
A*STAR’s Energy Technology R&D
Programme
Efficient
Building
Systems
Utility
Communications
Internet
Consumer Portal
& Building EMS
A*STAR’s SINERGY Centre
Dynamic
Systems
Control
Distribution
Operations
Advanced
Metering
Renewables
PV
Control
Interface
Plug-In Hybrids
Data
Management
Distributed
Generation
& Storage
Smart
End-Use
Devices
Strategy 5:
Step up International Cooperation
 Promote regional and international energy cooperation to
further our energy interests
 Promote security of vital energy sea lanes in the region
 Promote Singapore as a centre of energy research and
excellence
Strategy 6: Develop Whole-of-Government
Approach to Energy Policy
Energy Policy
Group
MTI Energy
Division
Economic
Competitiveness
(MTI)
Energy
Security
(MFA)
Environment /
Climate Change
(MEWR)
Industry
Development
(EDB)
Energy Efficiency
Programme
Office
Clean Energy
Programme
Office
Thank You