The Singapore government will set up a new Future Energy Fund and inject $5 billion to help the nation transition towards cleaner energy sources, says Deputy Prime Minister Lawrence Wong in his Budget 2024 speech on Feb 16.
Natural gas is the cleanest fossil fuel, says Wong, and Singapore is looking to build a second liquefied natural gas (LNG) terminal. However, relying on natural gas will not help Singapore achieve its net-zero goal, which has a 2050 deadline.
That said, importing low-carbon electricity from the region will involve investments such as upgrades to Singapore’s existing power grid, he adds. Singapore will also have to invest in new infrastructure to support the rollout of hydrogen power in the future.
Moving from a system fully dependent on natural gas to one powered by clean energy will require “significant effort and costs”, says Wong, which the private sector may not be willing to undertake alone.
Thus, the government will provide some catalytic funding for the energy transition. This will give Singapore confidence to “invest in good time, put us in a better position to move quickly on critical infrastructure, and enhance our security in clean energy”, says Wong.
Singapore does not have many options for clean energy, notes Wong, with no potential for tidal or wind power. In addition, Singapore does not have enough land for mass deployment of solar power, adds Wong.
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The government is exploring other sources of energy, including hydrogen and geothermal, and does not rule out nuclear power in the future, says Wong.
“Nuclear technologies are advancing rapidly, with smaller, safer and more fuel-efficient designs… We will build up our capabilities, so that we can critically assess the evolving technologies in this space and decide on the feasibility of nuclear deployment one day in the future.”
Read more about Budget 2024 on The Edge Singapore.
