Mr Lim Hng Kiang at the Welcome Dinner of the Inaugural International Energy Week (IEW)

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE & INDUSTRY AT THE WELCOME DINNER OF THE INAUGURAL INTERNATIONAL ENERGY WEEK (IEW) HELD ON 3 NOV 2008, AT 7.30 PM, RAFFLESCITY CONVENTION CENTRE 

Excellencies,

Distinguished Speakers,

Ladies and Gentlemen,

Good evening. Let me first extend a warm welcome to all of you to the inaugural International Energy Week in Singapore.

A New Energy Paradigm

For decades, the world has enjoyed relatively easy access to affordable energy resources. This has brought about periods of unprecedented economic growth and prosperity to many parts of the world, and improved the lives of billions of people worldwide. Today, two key challenges have emerged in the energy landscape which will have vast impact on our way of life.

The first is a growing demand for energy, largely from non-OECD countries, driven by industrialisation and urbanisation as these countries pursue economic growth. This has exerted increasing pressure on the supply of energy resources and resulted in escalating energy prices. The dramatic turn of events in recent weeks, with a global financial crisis and the expected global economic recession has softened near-term demand for energy resources. However, these demand trends are unlikely to abate, and in the longer term, I believe that countries will still be confronted with higher energy prices. A consequence of growing demand and tightening supply is the rise of resource nationalism. Energy security has begun to figure on political agendas as countries scramble for scarce energy resources.

The second challenge is an environmental one. There is growing scientific evidence and consequently, global consensus among governments, that the world is affected by global warming. This is intimately linked to how we harness energy for development and growth, given that the dominant energy source is still fossil fuel based. The energy choices we make now will therefore influence the longer term sustainability of our planet.

Our answers to this twin challenge will not be straightforward. What is clear, however, is that this is a global issue necessitating a global solution. The world needs to move quickly and collectively to reduce our dependence on fossil fuels, and to embrace a new way of doing business and going about our daily lives.A collective global solution requires enlightened government policies, industry investment in clean technology and solutions, as well as groundbreaking technological ideas from research institutes. Every stakeholder has a role to play.

The Singapore International Energy Week, or the IEW in short, was conceived for this purpose. This will be annual event, based in Singapore, where key global leaders from government, industry, research institutes and think-tanks can leverage on the various platforms under the IEW to exchange ideas and discuss solutions to the most pressing energy issues of the day. The various conferences, exhibitions and seminars this week will touch on a broad range of topics, including energy efficiency, alternative energy, climate change and sustainable development.

I am also pleased to note that the flagship Singapore Energy Conference has attracted excellent participation from both the public and private sectors to discuss energy problems facing cities, under the conference theme – “Powering Cities for the Future”. Urbanisation is an unstoppable force. Half of the world’s population is now living and working in urban areas and this proportion is expected to increase going forward. The question of how we can deliver energy solutions more cheaply and cleanly, whilst at the same time enhance the security of supply for this growing segment of mankind will become increasingly pertinent.

Developing, Testing and Delivering New Energy Solutions

Despite being a small country, Singapore can and will contribute to the global effort in addressing the key energy challenges which I talked about earlier. Singapore’s lack of energy options also means that the dilemmas arising from the energy challenge will be felt more acutely by us. As such, it is particularly important that we continue to invest heavily to find new approaches in response to the energy challenge. And we are doing so in three ways – to develop, test-bed and deliver sustainable energy solutions. Let me elaborate.

Develop

In developing our capabilities, the National Research Foundation (NRF) has allocated $170 million for clean energy R&D. Earlier this year, the Clean Energy Programme Office (CEPO) launched the Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore. A*STAR and our various institutes of higher learning also undertake active research across a wide range of disciplines, including fuel cells, hydrogen storage, biomass and biofuels.

Test-bed

Test-bedding is a natural and important next step to bring these technologies closer to the market. In particular, Singapore’s well-developed grid system, urban and tropical environment, and strong government support in infrastructure development makes Singapore an ideal location for test-bedding activities. Already, several test-bedding schemes and initiatives are well underway. The Solar Capability Scheme (SCS), which encourages innovative design and integration of solar energy into new building developments, has seen strong interest from the private sector since its launch earlier this year. In addition, construction of Singapore’s first ZeroEnergyBuilding at the Building and ConstructionAgencyAcademy had just commenced last month. This building will function as a test-bedding centre for Green Building Technologies, among other things.

Deliver

The last, and arguably the most important part, is to fully integrate these new energy technologies into actual energy solutions once the technologies have matured and have been proven feasible. For this, I am pleased to announce the setting up of the Energy Research and Development Fund, or ERDF, by the Energy Market Authority of Singapore.This $25 million fund, to be spent over the next 5 years, will provide financial support to any interested parties, aimed at developing capabilities and knowledge, including the creation of suitable market mechanisms and infrastructure to enable the implementation of new energy solutions. The ERDF will fund projects on a smaller scale initially, to pave the way for larger scale adoption once the energy solutions have proven feasible. For instance, the ERDF could potentially fund work on developing and optimising infrastructure to support the operation of electric vehicles, a new technology source that could fundamentally change how Singaporeans commute in the near future.

Conclusion

The next few days promise to be engaging and interesting, with a comprehensive line-up of events focusing on various pertinent energy issues. I hope you will benefit from these events, and the networking opportunities with such a diverse and experienced gathering.I wish you all a fruitful and engaging week ahead.Thank you.