Accounting for Potential Volatility in Global Energy Markets in Singapore’s Energy Transition Strategy
Edward Chia Bing Hui asked about Singapore's energy transition strategy regarding global energy market volatility and the safeguards for maintaining decarbonisation goals despite price fluctuations. Gan Kim Yong emphasized the importance of diversifying energy sources for the transition, including natural gas, domestic solar, low-carbon electricity imports, and alternatives. Currently, 95% of Singapore's electricity is generated from natural gas, and efforts are underway to develop a second LNG terminal for secure supplies and to maximize solar deployment towards a target of 2 GWp by 2030. The government is also pursuing low-carbon electricity imports and investing in emerging energy technologies like hydrogen and advanced nuclear, supported by a $10 billion Future Energy Fund to mitigate risks associated with strategic low-carbon projects. A carbon tax has been implemented to appropriately price emissions and fund decarbonisation initiatives.