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Innovation, agility ‘key to seizing new opportunities in changing energy environment’

SINGAPORE — Sluggish global energy markets and an increased global focus on combating climate change following the Paris agreement may pose challenges, but they also offer opportunities that Singapore is well positioned to capture, the International Advisory Panel (IAP) on Energy, chaired by Minister for Trade and Industry (Industry) S Iswaran, concluded yesterday.

SINGAPORE — Sluggish global energy markets and an increased global focus on combating climate change following the Paris agreement may pose challenges, but they also offer opportunities that Singapore is well positioned to capture, the International Advisory Panel (IAP) on Energy, chaired by Minister for Trade and Industry (Industry) S Iswaran, concluded yesterday.

The IAP encouraged Singapore to seize opportunities for clean energy growth and continue its efforts increasing the deployment of renewables, particularly in solar photovoltaics (PV). There has been a significant take-up rate for solar PV in recent years, due to the increasing price competitiveness of solar energy, the IAP noted.

Singapore should continue to pursue policy initiatives that support innovation and maintain flexibility and options for the future, it said. There are ample opportunities in the renewables space to further integrate solar PV through associated technologies such as energy storage, given rapid advancements in technology and business models, IAP noted.

“Singapore is a small economy in the global context and in the energy markets we are price takers. So whether it is the volatility in the global gas markets or a push towards more renewals due to climate change considerations and, based on our own domestic needs, Singapore needs to be more agile and nimble in the way we respond. Our objective is securing competitively priced energy,” Mr Iswaran said.

“We need to be clear on policy flexibility and at the same time create opportunity to participate in development of not just for our own needs but also for the opportunities and needs of the region particularly in Asean (Association of South-east Asian Nations)and Asia,” he added.

Beyond domestic deployment, there are significant economic opportunities for Singapore to be at the forefront of efforts to develop clean energy solutions for the region, IAP noted.

Singapore, it said, should build on its existing ecosystem that brings innovation and investments together for the clean energy sector, with skilled manpower and strong links between research institutions and industry. Singapore should also collaborate with Asean and Asian partners to provide platforms for solutions to be tested for wider deployment that serve regional needs and development.

The IAP also agreed with Singapore’s policies to ensure energy security and offer gas users greater flexibility through a portfolio of options, including long-term LNG contracts, piped natural gas, and spot import of LNG.

Lauding Singapore’s efforts to develop a regional liquefied natural gas trading hub, the IAP noted that Singapore enjoyed the advantage of trust and transparency alongside a developed ecosystem for commodities trading and financial services.

The IAP encouraged Singapore to explore opportunities to improve liquidity in LNG trading through initiatives such as LNG bunkering, the SGX LNG Index Group price index, and other solutions like small-scale LNG/Compressed Natural Gas for the region.

The IAP, set up by the Ministry of Trade and Industry, comprises top energy executives and thought leaders from around the world.

In its fifth biennial meeting, the IAP met during the Singapore International Energy Week to discuss Singapore’s energy policies against the backdrop of an increased global focus on combating climate change following the Paris agreement and the sluggish global energy markets.

The Paris agreement signed last year is aimed at keeping global warming below 2°C. In a significant move towards arresting climate change, around 200 nations, including Singapore, have signed a legally binding deal to cut down on greenhouse gases used in refrigerators and air-conditioners.

Singapore, accordingly, is committed to reducing the use of factory-made hydrofluorocarbon gases to help slow climate change.

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