Mr Iswaran at the Launch of Solar Energy Research Institute of Singapore (SERIS)

SPEECH BY MR S ISWARAN, MINISTER OF STATE FOR TRADE AND INDUSTRY at LAUNCH OF Solar ENERGY RESEARCH INSTITUTE OF SINGAPORE (SERIS)on THURSDAY, 21 FEBRUARY 2008, 11:20AM at nus UNIVERSITY HALL, LEE KONG CHIAN WING, THE VISTA (LEVEL 7)

Distinguished guests,

Ladies and gentlemen,

A very good morning.

Introduction

Today marks yet another milestone in Singapore’s development of the clean energy ecosystem. The interplay between the 3Es: Economic Development, Energy and the Environment is one of the foremost concerns of the day. One of the key beneficiaries of this triangle of trade-offs has been the growth of Clean Energy markets which are experiencing an unprecedented boom. The global market for the four benchmark Clean Energy technologies: solar, wind, biofuels and fuel cells, totaled US$55 billion in 2006. Clean Edge, a leading report on the industry, projects that this figure will quadruple to more than US$226 billion in 2016

[1]

.

Singapore has observed this strong growth trend and has put in place a holistic blueprint to establish ourselves as a leading player in the development of Clean Energy solutions. We believe that this trend will continue to accelerate due to the impact of certain strong long-term drivers.

Firstly, concerns over climate change have reached a tipping point in public opinion. Today, climate change issues dominate news headlines and discussions at international foras such as the United Nations, G8, APEC and the recent World Economic Forum at Davos. Secondly, although fossil fuels are expected to continue being the world’s main energy source for some years to come, its non-renewable nature and escalating oil and gas prices will continue to push many countries to adopt renewables to diversify their energy sources. And thirdly, the Clean Energy industry has significant economic spin-offs. For instance, Germany, with its forward-looking policies for Clean Energy, has created more than 200,000 jobs

[2]

in the industry in recent years and is now well-positioned to share its expertise with the rest of the world. As a consequence of these reasons, the world has increasingly turned to the development of the Clean Energy industry and the solutions it offers.

Singapore’s Efforts in Environmental Sustainability

From a broader perspective, the provision of Clean Energy solutions is a key component of sustainable development. And of sustainable development will assume increasing importance as the global economy, especially the likes of China and India, continues to urbanize and industrialize at a rapid pace

Singapore has built up a strong track record in sustainable development over the past few decades. Initially, we did so, out of necessity and in recognition of our constraints. A fitting recognition of the progress that Singapore has accomplished in this field is the joint eco-city project with the Chinese government in Tianjin. The development of this eco-city is a demonstration of the determination of both countries in balancing economic growth with environmental protection and the conservation of resources and energy.

To better coordinate our efforts, the Government has also recently set up two high-level inter-ministerial committees - on sustainable development and climate change respectively. In November last year, the inter-ministry Energy Policy Group also published the National Energy Policy Report (NEPR). This report outlines a national energy policy framework that balances the objectives of economic competitiveness, energy security and environmental sustainability.

These initiatives underscore Singapore’s determination to create an environmentally sustainable city. This effort will integrate many diverse but synergistic fields such as water, environment and waste management, green building technologies as well as Clean Energy.

Focus on Solar Industry Development

Leveraging on our strengths in environmental sustainability as well as our existing manufacturing base, the Government has identified the Clean Energy industry, with emphasis on solar, as a key growth area for Singapore. As a sign of our commitment, the government has allocated a total of S$350 million of public funding, including S$170 million from the National Research Foundation, to develop R&D capabilities and manpower for this sector.

The global solar market was estimated to be US$30 billion last year and is projected to continue its strong growth rate to reach more than US$100 billion by 2011

[3]

. These numbers bear testimony to the substantial economic potential for solar energy. What is even more exciting is the potential for price parity between solar energy and the electricity grid in many locations around the world within the next decade or so. The global solar market will receive a significant boost once grid parity is achieved.

The solar industry is also highly innovative. This is evident from the new wave of start-up and commercial activities in solar technologies that have sprouted in places such as Silicon Valley and Germany. In fact, Clean Energy, including solar, has now emerged as a mainstream venture investment field alongside IT and biotech. Successful R&D has been and will continue to be the differentiating factor between the success stories and the also-rans in such industries.

Solar Energy Research Institute of Singapore (SERIS)

Hence, it is clear that technology development is crucial to the success of Singapore’s solar industry. The establishment of the Solar Energy Research Institute of Singapore, or SERIS, is a prime example of how the Government is taking the lead by accelerating the development of R&D and manpower capabilities.

SERIS will perform quality research and work closely with the industry in solar photovoltaic devices as well as innovative materials for solar and energy-efficient buildings. I am pleased that the National University of Singapore has come forward to host this national research laboratory and that Professor Joachim Luther, an internationally renowned solar R&D leader, is leading SERIS. With such strong leadership and support, I am confident that SERIS will put us on the world map for solar R&D.

Conclusion

In conclusion, I would like to reinforce the Government’s commitment to promote the solar industry. There are already numerous initiatives in place to support and grow this effort. And today, we mark yet another milestone with the launch of SERIS which represents a crucial part of our blueprint to develop our solar industry. Finally, I would like to urge all organizations present today to participate actively in the growing business and research opportunities available in the solar industry in Singapore.

Thank you.

[1] Clean Edge, Clean Energy Trends, March 2007

[2] http://www.bmu.de/english/current_press_releases/pm/40029.php

[3]Photon Magazine October 2007