Speech by MOS Teo Ser Luck at the Italy-Singapore Cleantech Forum

Mr Benedetto Della Vedova,
Italian Undersecretary for Foreign Affairs and International Cooperation,

Mr Edwin Khew,

Chairman, Sustainable Energy Association of Singapore,

Members of the Industry,

Distinguished Guests,

Ladies and gentlemen,

I am pleased to join you this morning for this Cleantech Forum organised by the Italian Trade Commission and the Sustainable Energy Association of Singapore (SEAS).  Let me first extend a warm welcome to our Italian colleagues and to all the local companies participating.  I am glad to know that after SEAS’s trip to Italy last year, many Italian companies have taken an interest in Singapore, South-East Asia and the broader Asian region.

Asia is an important market and Singapore is well positioned to be a base for global cleantech players

This is a timely move since the energy needs of Asian countries will rapidly grow in the coming decades, fuelled by continued population growth, rising affluence and economic development.  The recent fall in oil prices has made it cheaper to import energy in the near-term, and technological advances have also made renewable energy options cheaper and more commercially-viable. 

In Singapore, the confluence of these trends has led us to explore how renewable energy sources can contribute a greater share of our energy generation capacity in the future.  In Mar 2014, we announced our plan to raise the adoption of solar power in our system to 350 megawatt-peak (MWp) by 2020, and the launch of the SolarNova programme to coordinate and aggregate demand for solar deployment across Government buildings and spaces. 

We expect that many other countries in Asia are likewise eager to explore how renewable energy options can meet future needs, as well as provide energy security for those of us who are net energy importers.  Therefore, since 2007, we have committed to developing our clean energy sector, and have tapped on our strengths as a leading financial centre to support the region in clean energy project development and financing. 

As research and development is critical to translate these new technologies into commercially-viable solutions, we had also set up an inter-agency Energy Innovation Programme Office (EIPO) to coordinate research and development, pilot and test-bedding initiatives.  Led by the Singapore Economic Development Board and Energy Market Authority, the Programme Office has expanded its coverage from an initial focus on solar energy, and begun venturing into related areas such as smart grids and green buildings.

Singapore’s clean technology cluster is not limited to clean energy.  Our diverse and thriving cleantech cluster includes strong capabilities in water technology, with about 130 local and international water companies.  Our success in developing and implementing water technology is illustrated in how we did not have to resort to water rationing even as we experienced our longest dry spell in 149 years just last year.  We will continue to facilitate the development of the water industry, with a focus on technology innovation and commercialisation through the Environment & Water Industry Programme Office (EWI), which comprises key agencies such as PUB and EDB. 

Our success in building a vibrant cleantech ecosystem in Singapore stems from both our home-grown companies such as Sunseap and Green Koncepts, as well as foreign entrants.  Foreign companies, such as DNV GL, NEC and Panasonic, chose Singapore to serve as their springboard and reference market in Asia as they have found Singapore an excellent location to develop new system-level solutions and business models. Today, I am pleased to announce the launch of a Centre of Excellence for Renewable Energy, to be run by the Sustainable Energy Association of Singapore with funding support from the Asian Development Bank.  We strongly welcome collaboration between the Centre and industry players, to serve as a pathway for continuing education that equips decision makers with knowledge in the strategic areas of policy, technology and financing, so as to continue developing sustainable energy projects for the future.

Our cleantech ecosystem is also well-complemented by strong financial institutions, and a stable of industry-oriented research institutes serving the dual roles of capability and talent development, as well as technology development.  A number of these research institutes and cleantech companies are housed in our CleanTech Park, which I understand some of you will be visiting.  The right environment is needed for the various players to interact, innovate and cross-pollinate ideas. The CleanTech Park was thus conceived to be the choice home for R&D and business activities involving cleantech and sustainable urban solutions.

Industry, academia and government can collaborate and co-create new solutions for Asia

During the 2014 Singapore International Energy Week, we announced plans for Singapore’s, and the region’s, first large-scale integrated microgrid test-bed on Semakau Landfill.  Called the "Renewable Energy Integration Demonstrator – Singapore" (REIDS), this test-bed is led by the Energy Research Institute at the Nanyang Technological University (ERI@N), with support from the EDB and National Environment Agency.  REIDS has already attracted a number of leading energy companies to test pre-competitive solutions, as well as to showcase solutions ready for broader market penetration.  Together with an estimated $8 million of investment in the grid infrastructure, REIDS is expected to draw in an additional $20 million of investments in industry projects.

REIDS aims to integrate a diverse mix of solar, wind, tidal and diesel power generation, energy storage and power-to-gas technologies into a one megawatt hybrid AC-DC microgrid network.  REIDS will demonstrate the operation of a diverse mix of renewable energy power generation options within a stable remote microgrid environment.  The technologies test-bedded at REIDS will give our companies valuable real-world experience to serve the electrical generation needs for island communities and remote villages, as well as to enhance grid stability in developing urban communities. All of these are acute needs in Asia.

Conclusion

While I have described the vast business opportunities in the region, and some exciting developments in Singapore, there is nothing like seeing it for yourself.  I would therefore like to thank all of you for building on your interest in the region and joining us at today’s forum.  I hope that you will all benefit from the networking opportunities, exciting discussions and site visits over the next two days. 

Thank you.