Speech by Minister for Trade and Industry (Energy and Industry) Dr Tan See Leng at the Groundbreaking Ceremony of PacificLight Power’s 670MW Power Plant

Mr Yu Tat Ming, Chief Executive Officer of PacificLight Power

Distinguished guests,

Ladies and gentlemen,

1. Good morning to all of you.

2. I am pleased to join you today in Jurong Island for the groundbreaking of PacificLight's new 670MW Combined Cycle Gas Turbine, or CCGT, power plant.

3. Let me congratulate PacificLight, Mitsubishi Power, Jurong Engineering, and all of your partners on this very important milestone.

4. This project represents a significant investment of S$1.2 billion for Singapore's power sector, and it comes at an important time for Singapore’s energy sector. As our economy evolves and our energy needs continue to grow, we must ensure that our energy system remains reliable, capable of supporting future demand and ready for the transition to a lower-carbon future.

5. In fact, I just rushed here from the grand opening of the VisionPower Semiconductor Manufacturing Company in Tampines. It took me about an hour to come from the northeast of Singapore to the southwest of Singapore. And I can tell you that they built the plant with an amazing speed, in under 22 months. They started to roll out the wafers, and they want to plant more. In fact, they have shared that we are at the cusp of a huge super cycle in semiconductors. So I think this planting could not have been more timely. Thank you very much and congratulations once again to PacificLight Power.

Powering Singapore's Growth

6. Our power generation companies are critical partners in this journey with us. Singapore's peak electricity demand is projected to grow at a faster pace in the coming years, driven by advanced manufacturing, the digital economy, the rapid rise of AI and transport electrification. This is not unique to Singapore. Around the world, countries are racing to secure the energy capacity needed to power this next wave of economic growth.

6. In many respects, the fastest megawatt is the winning megawatt. As energy increasingly shapes important investment decisions, it will be important to provide the power at scale – at the scale and the speed that is needed to meet our businesses’ needs. We must therefore continue investing in new generation capacity to ensure that Singapore can provide reliable and competitively priced energy for our future growth.

7. PacificLight's new 670MW plant is the largest power plant to be built in Singapore. It increases PacificLight’s total generation capacity by 70%. It will add significant capacity to our power system and support the energy needs of new investments.

Strengthening Singapore's Energy Security and Reliability

8. Even as we grow our system to meet higher demand, we must ensure that our system remains robust amidst an increasingly uncertain global energy landscape shaped by geopolitical developments and supply chain disruptions.

10. In the past five years alone, we have already gone through two energy crises. Singapore has thus far been able to withstand the impact of energy supply chain disruptions from the ongoing conflict in the Middle East because of our multiple layers of defence to shore up the security of our energy supplies. This includes our GasCo which can procure additional LNG cargoes if needed, as well as our domestic fuel reserves which we can turn to if needed.

11. PacificLight has also designed this facility with resilience in mind by co-locating the CCGT with an on-site Battery Energy Storage System. This is a first in Singapore. The forward-looking design will enhance the plant's operational resilience and flexibility, strengthening its ability to respond to contingencies and support system recovery when needed.

Advancing Energy Sustainability

12. Lastly, even as we power our plants with natural gas today, we must also continue preparing for a low-carbon future. As an alternative energy disadvantaged country, this journey will not be easy, but we must still explore every possible pathway and ready ourselves for when the new pathways do come onstream and become viable.

13. PacificLight's new plant reflects this forward-looking approach. It is hydrogen-ready, capable of operating on at least 30% hydrogen from inception and transitioning to 100% hydrogen in the future. This new hydrogen-ready facility will also reinforce Jurong Island’s position as a leading hub for new energies and emerging low-carbon solutions. By investing in such future-ready infrastructure today, we are laying the foundations for a more sustainable energy system for tomorrow.

Conclusion

14. Let me conclude by sharing that in just a few days, the Ministry of Trade and Industry will become the Ministry of Energy, Trade and Industry, or METI. This change reflects the greater focus we are placing on energy, given its vital role in our economic growth, climate goals and national resilience.

15. Achieving our energy objectives will require continued close collaboration between the Government and industry. The Government will continue working hand in hand with PacificLight and other industry players to advance our energy objectives together. It is only through a commercially vibrant energy ecosystem that we can collectively secure our energy future.

16. So congratulations once again to PacificLight and all of your partners for coming alongside with us and on today's very significant milestone. Thank you very much.