Mr Lim Hng Kiang's reply to Parliament Questions on Energy

Question No 437 of Notice Paper No 289 of 2007

Name and Constituency of Member of Parliament
Dr Lam Pin Min, Member for Ang Mo Kio GRC.

Question
To ask the Minister for Trade and Industry (a) what is the current extent of energy supply from solar energy technology; and (b) whether there are long term plans to tap on this alternative source of energy, in view of the high oil prices and finite supply of oil and natural gases.

Answer
The use of solar energy in Singapore is still very limited. Our total installed capacity for generating solar energy is currently only 0.15 MW, compared with our peak electricity demand of more than 5,000 MW. Even buildings with installations for tapping solar energy cannot meet their own needs from solar energy generated, and they have to tap electricity from the grid.

This situation is not unique to Singapore. The use of solar energy is still in its infancy in most parts of the world.According to the International Energy Agency (IEA), renewables such as geothermal, wind, solar and other combustible waste accounted for only 2 % of global electricity generated in 2004. Solar photovoltaics (PV) alone accounted for just 0.005 %.

The main reason is cost. Current technologies for tapping solar energy are still not efficient. Solar-derived electricity is thus two to three times more expensive than our electricity tariffs for households.While costs will decline with the advent of better technology, fossil fuels such as oil and gas will still remain a dominant part of the global fuel mix in the medium term.Singapore is no exception.

Nonetheless, our energy strategy is to continue to diversify our energy sources and invest in research and development in clean energy, including solar energy.To facilitate new energy technologies such as solar, we have adopted open and flexible regulations, such as removing the market participation fee for all facilities that are paid for export to the grid. EMA has also put out information on how to install and connect photovoltaic systems to the grid. The National Research Foundation has set aside $170 million for research into clean energy, with a focus on solar energy. EDB has launched a $17 million Clean Energy Research and Test-bedding platform to test-bed solar photovoltaics, and to determine the optimal solar energy systems for Singapore.