Energy Usage Trends and Future Energy Conservation Plans

Mr Azmoon Ahmad asked the Minister for the Environment and Water Resources (a) what has been our energy usage in the last 10 years and what is the forecast for the next 10 years; (b) whether our future energy needs can be met and what is the plan to meet this demand; (c) whether our green environment initiative has borne results on energy usage and what more can be done; and (d) whether the Ministry will consider (i) turning off some street lamps on expressways and major roads after midnight till 5.00 am to save energy; and (ii) incentives for private residences to install solar panels.

Our annual energy demand grew from 38,300 Gigawatt hour (GWh) in 2005 to 50,300 GWh in 2015, representing a compounded annual growth rate (CAGR) of 2.8%. Over the next decade, energy demand is expected to grow at a slower rate, with a projected CAGR of about 1.2% – 1.8%. This is due to factors, such as lower projected growth rates for gross domestic product and population.

Singapore has adopted a liberalised market environment which encourages efficiency and competition. We do not subsidise energy and rely on price signals from the wholesale electricity market. Based on current projections, there is sufficient supply to meet electricity demand for the next 10 years. Nonetheless, the Government has taken steps to improve our energy security, competitiveness and sustainability. For example, we built the liquefied natural gas (LNG) terminal to diversify our energy sources and we are pushing for greater adoption of solar energy.

The Member has also asked whether our green initiatives have helped to reduce our energy consumption. Yes, it has. Let me give a few examples.

The industrial sector is the largest energy user in Singapore, accounting for 67% of total energy consumption in 2014. The Government uses both incentives and regulations to improve energy efficiency amongst companies. So far, 60 projects have been approved under the Grant for Energy Efficiency Technologies (GREET) scheme. These projects are expected to yield energy savings of S$726 million. We also introduced the Energy Conservation Act in 2012 requiring energy-intensive facilities to put in place energy management practices.

Another energy-intensive sector is the building sector. Since 2005, the Government has been driving the adoption of energy-efficient design and solutions towards more environmentally sustainable buildings. To date, there are more than 2,800 green building projects in Singapore translating to about one-third of the total building stock. Our target is to have 80% of all buildings green by 2030. The Government will also lead by example to attain relevant Green Mark ratings for all large and mid-sized public sector buildings by financial year 2020.

For households, since the introduction of the Mandatory Energy Labelling Scheme and the Minimum Energy Performance Standards in 2008 and 2011 respectively, we have seen improvements in the energy efficiency of household appliances that contribute to a significant share of the household electricity bill, such as air-conditioners and refrigerators. These efficiency improvements will translate to annual energy savings of more than $100 million for households. Going forward, we will be including more appliances under these initiatives.

The Member has also asked about street lighting. Singapore follows international guidelines for street lighting. For the safety of all road users, the Land Transport Authority (LTA) will not be switching off street lights on our roads between midnight and 5.00 am. However, LTA will be switching to Light Emitting Diode street lights, which consume 25% less energy than regular street lights.

Notwithstanding this, there is clearly room for us to do more. Singapore is an alternative energy disadvantaged country. That is why improving our energy efficiency is a key strategy to achieving our pledge at the Paris Agreement. We will continue to improve our policies as well as test new technologies, such as smart homes, smart grids, zero-energy buildings and electric vehicles. Although we do not provide incentives or subsidies for energy, we have introduced regulatory enhancements to facilitate the entry of renewable energy, such as solar energy, across all sectors, including private residences. Lastly, we are working to further increase public awareness and participation in conserving energy.