Singapore Energy Lecture by Min(EST) Tan See Leng at the 2025 Singapore International Energy Week

Excellencies and Distinguished Guests,

Ladies and Gentlemen,

1. Good morning and a very warm welcome to the 18th edition of the Singapore International Energy Week (SIEW).

2. This year’s theme – “Envisioning Energy Tomorrow, Building Systems Today” – could not be timelier. Just as SG60 marks a new chapter in our Singapore Story, we are also embarking on the next chapter of our Energy Story.

3. This chapter begins against a challenging backdrop.

a. Rising geopolitical uncertainties have led to countries reassessing their climate ambitions, placing renewed emphasis on economic resilience and self-sufficiency, at the expense of decarbonisation efforts.

b. Yet, nature will wait for no man. Climate change continues to accelerate, and its impact will profoundly affect how we live, work, and thrive.

4. For Singapore – a small low-lying island and an alternative-energy disadvantaged city-state – these challenges are far more acute. To secure a low-carbon energy future for generations to come, we must plan smarter and work harder.

a. We have made significant strides in our energy transition, and will continue to work towards our decarbonisation goals with urgency and resolve.

b. Even as we do so, we must remain clear-eyed about the trade-offs. Decarbonisation will come with costs, but cannot and will not be at all costs.

c. We will continue to strike the right balance between sustainability, security, and cost-competitiveness – this is the energy trilemma we must navigate.

5. In the spirit of SIEW, let me share more about the four key components of this new chapter – “S” for sustainable pathways, “I” for interconnectivity, “E” for ecosystem resilience, and “W” for workforce capabilities.

Sustainable Pathways: Diversifying for the Future

6. First, “S” for sustainable pathways. We must pursue a diversified portfolio of sustainable energy pathways to build the future we envision. It is unlikely that any single solution will suffice, just as there is no one-size-fits-all solution to decarbonisation.

7. What does this future look like for Singapore? The exact energy mix will depend on the technological and commercial trajectories for different pathways. But we continue to be guided by clear objectives, which I shared earlier, complemented by flexibility in implementation to seize opportunities as they emerge and scale.

8. Some fundamentals are already clear:

a. First, our future energy mix will be a blend of indigenous sources with imported green electrons and molecules.

b. Second, we must be ready to support all promising sustainable pathways – from established technologies to frontier options.

Solar

9. Among indigenous sources, solar remains our most viable renewable energy option. With over 1.7 gigawatt-peak (GWp) of installed capacity today, we are well on track to achieving our ambition of at least 2 GWp earlier than 2030.

10. We will continue to maximise every ray of sunshine we receive, through:

a. Encouraging all businesses and homeowners to install solar panels within their premises, by streamlining regulatory processes; and

b. Exploring the potential of innovative urban applications such as solar canopy structures and building-integrated photovoltaics.

11. Even so, solar will likely supply, at most, 10% of our total projected electricity demand in 2050 due to land constraints. So, it is necessary but it is still insufficient for us.

Geothermal

12. That is why we are studying other pathways, such as our geothermal resource potential that can provide us with firm baseload power.

a. We launched our first nationwide non-invasive geophysical study last year, and will better understand how much geothermal energy we can harness by this time next year.

Nuclear

13. We are also seriously studying the potential deployment of nuclear energy, especially newer technologies such as small modular reactors. Nuclear energy has the potential to be a safe, reliable, and cost-competitive option for Singapore.

a. PM Lawrence Wong said earlier this year that the Government would reorganise ourselves to place greater emphasis on capability building.

b. We have since formed dedicated nuclear energy teams within key agencies to lead these efforts – namely, the Nuclear Energy Office within the Energy Market Authority (EMA) and the Nuclear Safety Division within the National Environment Agency (NEA). These teams will focus solely on nuclear energy issues, and I hear they are hiring actively.

c. We are also actively collaborating with international partners.

i. Singapore signed the “123 Agreement” with the United States (US) in July last year, as well as a similar Cooperation Agreement with France in May this year.

ii. In September, the US approved Singapore’s addition to the Part 810 list of Generally Authorised Destinations, allowing us better access to critical technical information on US nuclear energy technologies.

iii. To further strengthen our expertise, I am pleased to announce that EMA will be signing new Cooperation Agreements with two US organisations, the Idaho National Laboratory and Battelle Memorial Institute, here at SIEW.

d. We understand that the public has many queries about our plans. We will engage the public regularly as we progress on this journey together. For a start, we are releasing a Background Paper on Singapore’s Nuclear Energy Capability Building Journey today to provide an overview of our interests, and the Government’s work on capability building thus far.

Interconnectivity: Tapping into Regional and International Potential

14. Next, “I” for interconnectivity. While our domestic efforts are essential, the energy transition also requires looking beyond our borders.

a. Our energy story is intertwined with those of our neighbours and our international partners. The future for us lies not in isolation, but in interconnection.

b. Whether through the flow of electrons or molecules, we have to forge stronger energy linkages with the region and beyond.

15. Let me start with electrons – cross-border electricity trade is already transforming the landscape in other parts of the world. In Europe, there are already thousands of kilometres of cross-border subsea power cables in operation. In Southeast Asia, the ASEAN Power Grid is key to unlocking the region’s vast renewable energy potential. IEA estimates over 20 terawatts of untapped solar and wind in the region – and even more when hydro and geothermal are included.

a. But these resources may be far from demand centres. Regional interconnectivity bridges this gap and diversifies our shared supply portfolio. During the monsoon season when there is less solar energy, we could rely more on wind farms and hydropower. And vice versa, during the dry season when we pack on solar power. This is how interconnectivity can bring reliable, low-carbon power to everyone.

b. This vision is very much achievable. After all, we already share a dense network of submarine telecommunication cables connecting our digital economies here in Southeast Asia.

16. Singapore cannot build this grid alone; we must partner other countries. We have made strong progress with partners from Indonesia, Malaysia, Vietnam, Cambodia, and Australia.

a. We are working closely with Indonesia to implement the bilateral memorandum of understanding (MOU) on Cross-Border Electricity Trade signed in June this year. With strong support from both governments, I am optimistic that the first wave of electricity import projects will reach financial close soon, and commence flow within this decade.

b. For Malaysia, as announced at the 43rd ASEAN Ministers on Energy Meeting (AMEM) two weeks ago.

i. We have granted Conditional Approval to a project to import around 1 gigawatt of hydropower from Sarawak to Singapore.

This complements the other projects that supply solar or wind power to Singapore and brings the total capacity of Conditional Approvals and Conditional Licences awarded to more than 8 gigawatts.

ii. We are also undertaking a full feasibility study to develop a second interconnector between Singapore and Malaysia. This project could provide up to 2 gigawatts of bilateral interconnection capacity by 2030, to supplement the existing 1 gigawatt of capacity we have from our existing interconnector.

17. Beyond electrons, we can also strengthen interconnections through the flow of molecules.

a. First, we are exploring biomethane as a viable low-carbon fuel – its “drop-in” nature can save us costly asset upgrades, given its compatibility with existing infrastructure.

i. I am pleased to announce that we are establishing a regulatory sandbox of up to 300 megawatts (MW) to catalyse supply chain development and facilitate adoption by key industry players.

Selected power generation companies will be appointed as supply and demand aggregators as early as next year.

b. Second, we are continuing to study the potential of low-carbon hydrogen, including its derivatives such as ammonia. Hydrogen has multiple potential uses — in power generation, industrial processes, and transportation.

i. Earlier this month, we appointed a consortium led by Keppel to move into the next phase of the ammonia pilot project for power generation and bunkering.

Keppel will work with its partners, Sumitomo Corporation and Advario, on the next phase of the project to conduct Front End Engineering Design studies.

c. Third, we are studying the potential of carbon capture and storage technologies for the power sector.

EMA is supporting feasibility studies for pre- and post-combustion technologies conducted by Keppel, Pacific Light, and YTL Power Seraya.

18. All these solutions require constructing interconnections with regional and international stakeholders – building robust supply chains that are supported by clear regulation.

Ecosystem Resilience: Laying the Right Foundations

19. Moving on to “E” for Ecosystem – as our systems grow more complex, our energy ecosystem must also grow more resilient. We will achieve this in two ways.

Enhancing Natural Gas-Based Generation Systems

20. First, even as we embark on our energy transition, natural gas will continue to play a fundamental role in ensuring system reliability.

Given this, we must maximise the efficiency of these generation systems while enhancing the resilience of our gas supplies.

a. Efficiency. We have rolled out an incentive scheme to encourage the adoption of advanced natural gas power plants that are more carbon-efficient. Under this scheme, we are awarding up to S$44 million to Keppel’s Infrastructure Division and Sembcorp Industries to support their deployment of the first two advanced power plants in Singapore by the end of next year.

b. Resilience. We have also implemented measures to enhance the security of our natural gas supplies.

i. In April this year, we established Singapore GasCo to centralise gas procurement for the power sector and construct a sufficiently diversified and resilient gas portfolio, in terms of price index, tenure, and source, for Singapore. GasCo will launch its gas procurement activities early next year.

ii. Just a few days ago, we also celebrated the steel-cutting ceremony for our very first floating LNG storage and regasification unit, which is part of our second LNG terminal. When this terminal commences operations by 2030, it will grow our LNG import capacity by 50% to a total of 15 million tonnes per annum (MTPA). Singapore can continue to import LNG from sources across the world, such as the US, Qatar, and Australia.

Strengthening Grid Infrastructure

21. Second, even as Singapore moves from a homogenous to heterogeneous energy mix, we must ensure the continued reliability of the grid. Today, we are blessed to have one of the most reliable grid systems in the world, where a customer experiences, on average, less than one interruption per year lasting around 10 to 15 seconds.

22. EMA and SP Group are not resting on our laurels.

a. That’s why the Future Grid Capabilities Roadmap was launched earlier this year to set clear directions for future capability building. To develop solutions for identified areas including grid planning and operations, they are exploring the establishment of an SP Technology Laboratory.

b. Any smart grid will require sensors, as they provide the foundation for AI-driven optimisation and predictive maintenance.

SP Group is on schedule to complete the deployment of smart meters to all commercial, industrial, and residential consumers by the end of next year.

23. Through these measures, SP Group will ensure – first, continued grid reliability as greater volumes of intermittent renewable sources are introduced in the coming years; second, improved operational efficiency to ensure our grid charges remain cost-competitive.

Workforce Capabilities: Empowering Transformation

24. Thus far, I have spent a lot of time talking about technology and infrastructure.

But that alone cannot drive transformation. Success depends ultimately on our people, our most precious resource. As Minister for Manpower (and Power), I know this first-hand.

25. This brings me to the final part of my speech, the “W” for workforce capabilities, and how we must prepare ourselves for the energy jobs and industries of tomorrow.

26. Jobs. Recent workforce projections from our biennial Energy Sector Manpower Survey indicated that Singapore’s clean energy workforce would expand by approximately 60%, or approximately 1,000 workers, by 2034, driven by demand in areas such as energy storage and electricity imports. EMA has also refreshed its Clean Energy Jobs-Skills Insights resource, using the findings from its workforce planning study. This is accessible via the EMA and SkillsFuture Singapore websites.

27. Industries. Beyond new growth sectors, we will also transform existing sectors – helping them decarbonise, innovate, and grow. Our goal is not just to get through the energy transition, but to emerge even stronger by capturing new growth opportunities and creating new good jobs for our workers.

28. Jurong Island – currently home to over 100 global energy and chemicals (E&C) companies – will be a key driver. As we celebrate Jurong Island’s 25th Anniversary, I am pleased to announce that its refreshed direction will power the future of low-carbon innovation in the E&C sector.

29. Jurong Island will continue to diversify and drive growth opportunities in specialty chemicals and sustainable products.

a. There has been increasing interest from specialty chemicals players to grow their presence in Singapore, driven by growth in regional demand for higher-quality products. Singapore is well-positioned to tap on this opportunity.

b. We are making good progress in achieving our 2030 Sustainable Jurong Island goals – last year, we saw a 1.4x increase in Singapore’s output of sustainable products from 2019 levels.

30. Jurong Island will also be a global testbed for new energies and low-carbon technologies, and host Singapore’s largest low-carbon Data Centre Park to accommodate up to 700 megawatts of capacity.

a. Earlier this year, we announced that A*STAR will be launching a S$62.5 million Low-Carbon Technology Translational Testbed (LCT3) on Jurong Island.

Companies and startups such as CRecTech, FlueVault, Metha8, and Turnover Labs have since expressed interest in using this cost-effective, modular testbed to scale up emerging technologies for commercial development.

b. Building on this, we will launch our Research, Innovation and Enterprise (RIE) 2030 Strategy next year, significantly growing our R&D commitments to power and industry decarbonisation, with a focus on piloting and deploying low-carbon technologies.

31. All these efforts ensure that Jurong Island continues to be home to great firms and create meaningful career opportunities in the growing green economy.

Closing Remarks

32. To conclude, energy is an existential issue for Singapore.

a. We have achieved substantial progress thus far, but our most significant challenges – and greatest opportunities – lie ahead.

b. We will seek to strike the right balance between sustainability, security, and cost-competitiveness, by pursuing Sustainable pathways, forging Interconnectivity, strengthening Ecosystem resilience, and enhancing Workforce capabilities.

33. Singapore is no stranger to constraints and challenges. But time and again in the Singapore Story, we have re-envisioned constraints as opportunities, and challenges as competitive advantages.

34. Let us build our energy future together. As we step into this new chapter, I invite all of you – our partners in ASEAN and around the world – to join us as we write this important chapter in our journey together.

35. Thank you.