SPEECH BY MR LEE
YI SHYAN, MINISTER OF STATE FOR NATIONAL DEVELOPMENT AND TRADE
& INDUSTRY AT THE OPENING OF PV
ASIA PACIFIC EXPO AND ASIAN PV INDUSTRY ASSOCIATION ON TUESDAY, 1
NOVEMBER 2011, 1130HRS AT MARINA BAY SANDS EXPO AND CONVENTION
CENTRE
Your
Excellencies
Mr
Shi Dinghuan (石定环),
Counsellor of State Council and Executive Vice President of Chinese
Research Association
Dr Shi Zhengrong (施正荣), Chairman of the Asia Pacific PV Industry
Association
Ladies and
Gentlemen,
Introduction
Good morning. Welcome to the
Singapore International Energy Week (SIEW) where we bring together
policymakers and industry leaders to discuss key issues in the
energy sector. I am pleased that Singapore was selected to host the
inaugural PV Asia Pacific
Expo.
Global Trends in Renewable
Energy Adoption
Countries today are
increasingly subjected to volatile energy prices and uncertainties
in energy security. This has been marked by rising fossil fuel
prices and threats to oil supply due to unrest in the Middle East
and North Africa. The global response to climate change has also
spurred the search for cleaner forms of energy. In this regard,
renewable energy has emerged as a promising alternative to fossil
fuels.
The International Energy
Agency (IEA) estimates that the share of renewables in global
electricity generation will increase from 20 per cent today to
almost a third in 2035. As part of this global shift, investments
in solar PV generation are estimated to exceed US$1
trillion[1].
This presents a remarkable opportunity for the solar PV industry,
especially in Asia.
Asia Pacific as the New
Growth Frontier in Solar
The Asia Pacific region is
already manufacturing most of the solar modules used globally. The
region is also viewed as the next growth frontier in solar power,
as Asian countries balance their increasing energy demand with
tightening supply and carbon constraints. At present, four
countries in this region, namely Japan, China, India and Australia,
are among the top ten markets in the world. By the middle of the
decade, the region is expected to contribute about 30 per cent of
the global solar market[2].
Take China, for example, where domestic solar capacity is projected
to double in 2011[3],
and India, where favourable government policies are encouraging
large-scale solar
installations.
At the same time, many
European countries are beginning to reduce their incentives for
solar in line with its declining cost. The European experience
offers valuable lessons to policy makers in this region. To
encourage the adoption of renewable energy, it is important to
consider a comprehensive set of policy measures, including
capability building, investing in R&D, and overcoming market
barriers such as a lack of
information.
Singapore as a Key Partner
for the Solar Industry
Singapore’s strengths in
electronics and strong connectivity with the Asian sun-belt region
give us an advantage in the solar industry, and we are playing a
key role in partnering companies to serve the Asian
market.
We have also invested in
several key enablers to build our capabilities in solar
manufacturing and system
integration.
One important enabler is our
investments in R&D and technology development. The Energy
Innovation Programme Office (EIPO) was recently allocated $195
million for energy R&D, and solar will be an important area of
research. The Government also launched a $300 million National
Innovation Challenge (NIC) in energy resilience to help Singapore
improve energy efficiency, reduce carbon emissions and increase
energy options over the next 20
years.
The vanguard of our R&D
investments is the Solar Energy Research Institute of Singapore or
SERIS. Led by Professor Joachim Luther, SERIS has developed in
recent years to become one of Asia’s leading solar research
institutes. The goal of our R&D efforts is to accelerate the
cost and efficiency improvements of solar panels, and improve the
integration of PV with the
grid.
Extending beyond R&D,
Singapore also offers a “living laboratory” for companies to
test-bed and commercialise innovative energy solutions. In
particular, we aim to build up system integration capabilities in
the urbanised tropical
environment.
Over 80 per cent of
Singaporeans live in high-rise public housing developments known as
HDB estates. Recently, we designated a HDB new town, Punggol, as
Singapore’s first Eco-Town, where we will promote sustainable
living and demonstrate environmentally-friendly energy solutions.
As part of this initiative, HDB recently pioneered a solar leasing
scheme where the rooftops of 45 blocks in Punggol were offered as a
site for PV systems. This scheme will allow the industry to develop
innovative project financing and system integration capabilities,
and we intend to do more as the cost of solar energy
declines.
Singapore is Well-Positioned
to be a Clean Energy Hub for the
Region
With our strategic location,
engineering capabilities and strong financial sector, Singapore is
becoming a hub for companies to structure solar projects for the
region.
Several solar companies have
already taken advantage of Singapore as a base to grow their
Asia-Pacific markets. For example, MEMC, with over 7,500 staff
worldwide and sales of more than US$2 billion in 2010, will be
headquartering its global cells and modules business and related
R&D operations in Singapore. Heraeus, a leading supplier of
solar pastes, will open its new world-scale manufacturing and
R&D facility in Singapore this
Friday.
Some Asian companies are
also choosing to internationalise their businesses from Singapore.
For example, Trina Solar has chosen to locate its regional
headquarters and R&D centre here to manage its Asia-Pacific
businesses outside China. They will be announcing more details
today, and we are excited about these
developments.
Launch of PV Asia Pacific
(PVAP) Expo and Asian PV Industry Association
(APVIA) Singapore is pleased to host the inaugural PV Asia
Pacific (PVAP) Expo. The Expo serves as a gathering of key decision
makers and is a marketplace for the exchange of ideas to grow the
sector. This is an industry with great potential and it is timely
that the PVAP Expo has been organised to tap on the industry’s
growth opportunities. With the participation of many of the world’s
leaders in the industry, this is also shaping up to be one of the
key solar-related events in the
region.
I am also pleased to
announce the establishment of the Asian PV Industry Association
(APVIA) in Singapore, the first of its kind in the region. APVIA
[pronounced A-P-V-I-A] will bring together Asian industry leaders,
research scientists and national solar associations to forge links
with policy makers, conduct training and market studies and
formulate strategies for growth. As different stakeholders in this
region converge here, APVIA will provide a coordinated voice to
advance the solar industry in
Asia.
Conclusion
In conclusion, I am
encouraged to see that the solar industry is gaining momentum as we
ride this wave of cleantech growth opportunities. I wish all of you
a fruitful time at the PV Asia Pacific Expo, and a successful
inaugural meeting of
APVIA.
Thank
you.
[1]
International Energy Agency World Energy Outlook
2010. Assuming
new policies scenario, i.e. countries implement all currently
planned policies for renewable
energy.
[2]Lux Research
[3]Bloomberg New Energy
Finance