Mr Teo Ser Luck at the World Engineers Summit on Climate Change 2015

SPEECH BY MR TEO SER LUCK, MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY, KEYNOTE SPEAKER FOR TRACK 3: SUSTAINABLE ENERGY AT THE WORLD ENGINEERS SUMMIT ON CLIMATE CHANGE 2015 ON WEDNESDAY, 22 JULY 2015, 2.30PM AT SUNTEC SINGAPORE CONVENTION & EXHIBITION CENTRE

Distinguished guests,

Ladies and gentlemen,

Good afternoon.

Introduction

I would like to extend a warm welcome to all our local and international friends who are here for the World Engineers Summit on Climate Change 2015. I hope you had a great start to the summit this morning and are now ready to go into the discussion track on sustainable energy.

Introduction – Increasing Energy Demand with Global Urbanisation

Sustainable energy, energy that is secure, environmentally-friendly, yet cost-competitive, is a critical need of every economy. Global urbanisation is driving up the demand for energy as well as other resources such as water and food. The World Bank estimates that about 80%¹ of the increased demand for urban energy over the next two decades will come from cities in developing countries. Population growth, rising affluence, and changes in climate will further intensify the demand for energy, making access to it less certain.

Singapore’s National Energy Strategy

Singapore is dependent on imports of oil and natural gas to meet our energy needs. Hence, we are fully exposed to energy price volatility and supply risks arising from developments in the global energy markets. Singapore has developed strategies to balance the objectives of energy security, economic competitiveness and environmental sustainability.

First, Singapore is taking steps to diversify our energy sources to enhance our energy security and the price competitiveness of our energy supplies. Currently, more than 90% of Singapore’s electricity is generated using natural gas, the cleanest fossil fuel. Our only option just a few years ago was to import piped natural gas from our neighbours. The opening of our first liquefied natural gas (or LNG) terminal in 2013 has allowed us to diversify our sources of gas - Singapore presently imports LNG from sources as diverse as Australia, Equatorial Guinea, and Trinidad & Tobago. It has also provided opportunities for Singapore to benefit from changes in the global gas market, enhancing the price competitiveness of our energy supplies.

Second, Singapore is exploring other options to diversify our energy mix beyond LNG. We are currently focusing on solar photovoltaics and scaling up its deployment, as solar is the most economically and technically viable renewable energy option for us. To this end, we launched the SolarNova programme, which aggregates the demand for solar energy across government buildings and spaces, to yield savings from economies of scale. The programme also seeks to demonstrate solar energy’s viability in Singapore, and in doing so, catalyse further adoption by the private sector.

Third, we are continuing with efforts to promote more efficient energy use across our economy. As part of contribution to the post-2020 climate change agreement, Singapore intends to reduce our Emissions Intensity by 36% from 2005 levels by 2030 and to stabilise our emissions with the aim of peaking around 2030. This is a stretch target given that Singapore is already one of the least carbon intensive economies in the world, being ranked 113th out of 140 countries.²

One of our key strategies to meet this target is enhancing our energy efficiency, which will simultaneously reduce our carbon footprint and help businesses and households save costs. We do so through a holistic suite of measures, ranging from incentive schemes, capability development, piloting new business models and regulation. Some of our initiatives include the Green Mark incentive scheme for buildings, the Singapore Certified Energy Manager (SCEM) training scheme, as well as an energy efficiency financing pilot scheme.

Finally, we continue to invest in the research, development and demonstration (RD&D) of innovative energy technologies that help us achieve our energy goals. Since 2007, the Government has allocated $665 million to the Energy National Innovation Challenge and the Energy Strategic Research Programme. The Energy National Innovation Challenge seeks to find and deploy cost-competitive energy solutions that improve energy efficiency, reduce carbon emissions and broaden energy options. It is complemented by the Energy Strategic Research Programme, which aims to develop the clean energy industry by building a vibrant clean energy ecosystem with a critical mass of companies, skilled manpower and R&D capabilities.

Role of Engineers in Sustainable Energy Development

Our energy strategies and plans cannot be implemented without a strong base of engineering professionals. They have been instrumental in bringing us to where we are today and are helping to shape the future landscape of our energy sector. For instance, they ensured that the LNG terminal was built to the best engineering standards for the safe, efficient and smooth delivery of natural gas. They have helped hundreds of buildings in Singapore attain the BCA Green Mark with outstanding performance in energy and water efficiency, environmental protection and other aspects. Engineers are also undertaking cutting-edge research at the Experimental Power Grid Centre, to develop future energy technologies in areas of electrical power networks, energy distribution and renewable energy sources.

Looking ahead, we will need a strong pipeline of engineers to see through the implementation of various projects in the local energy sector, while contributing in the global arena to promote international environmental sustainability. Our engineers will need to support all aspects of sustainable energy, including making advances into alternative sources of energy; and finding efficient, flexible and reliable ways to transmit and distribute energy.

To help engineers play their roles effectively, Singapore is focusing on developing manpower capabilities as another thrust of our energy strategy. Our aim is to upgrade our manpower capacity and capabilities to drive the continued growth of the energy sector. I mentioned the SCEM scheme earlier. It is run by the Institution of Engineers, Singapore (IES) in collaboration with the National Environmental Agency (NEA) to train engineering professionals as effective energy managers. I understand that to date, a total of 665 engineers and 80 associate level managers have received their SCEM certification. The Energy Market Authority (EMA) is also working closely with the power industry, the Union of Power and Gas Employees and the Workforce Development Agency (WDA) to raise the level of professionalism, develop competencies and provide opportunities for skills upgrading. The National Energy Competency Framework (NECF) launched by EMA last month outlines the career pathways and associated competencies for both technical and non-technical jobs in the power industry. Students and mid-career professionals alike will benefit from using the framework as a reference for both pre-employment training and continuing education and training.

Importance of Engaging the Youths in Building Sustainable Energy

The youths of today play a vital role in shaping the future of Singapore’s energy landscape, not just as users of energy, but also as potential talent for the energy sector. It is important to excite them to think about the challenges in the energy sector and inspire them to consider careers in this exciting space. They will need to be convinced that an engineering career in the energy sector will be rewarding and will provide them with ample opportunities to contribute to Singapore’s sustained growth. The participation of the industry is crucial in this regard and I hope that many of the organisations here today will take a closer look at how they can interact with and engage our young energy-conscious individuals.

I understand that IES has organised the inaugural Energy Innovation Challenge as part of this year’s National Engineers Day. I think it is an excellent initiative, as it gives students a golden opportunity to apply classroom knowledge in an actual quest for alternative energy sources, with the guidance of engineering professionals. I am sure that the participants have had an enriching and memorable experience and I hope that they will continue to pursue their passion in the energy sector.

Thank you for giving me this opportunity to share Singapore’s energy strategies and our plans to build capabilities to support the long-term development of the sustainable energy sector with you. I hope that this and the other discussions at this summit will enable us to learn from one another, exchange best practices and develop strategies that will strengthen the energy sustainability of our economies.  

Thank you.

¹ http://esi.nus.edu.sg/docs/event/final-energy-and-sustainable-cities-report.pdf

² IEA Key World Energy Statistics 2014