Energy demand in Singapore will increase, particularly from data centres, which account for seven per cent of the city’s electricity consumption, and is expected to rise to 12 per cent by 2030 – Copyright AFP ROSLAN RAHMAN
Satish Cheney
As huge data centers drive up already enormous energy demands, the small city-state of Singapore is looking for clean energy in the deserts of Australia and the rainforests of Malaysia.
This week, Australia announced the construction of a massive solar farm that will ultimately supply Singapore with two gigawatts (GW) of electricity via an undersea cable.
Singapore aims to reduce carbon dioxide emissions to a minimum by 2030 and become carbon neutral by 2050, but is heavily dependent on oil and gas imports.
The city lacks the conditions for generating wind or hydropower. Although the city aims to generate two gigawatts from locally installed solar systems by 2030, there is no space for large solar parks.
However, demand is expected to continue to rise, particularly from data centers, which already account for seven percent of Singapore’s total electricity consumption.
By 2030, this share is expected to rise to 12 percent.
To meet this demand, Singapore’s Energy Market Regulatory Authority has already granted conditional approvals for the import of 1 GW from Cambodia, 2 GW from Indonesia and 1.2 GW from Vietnam.
It is a mix of solar, wind and hydropower, a popular but sometimes controversial energy source in the region, which is linked to deforestation and the environmental destruction caused by the construction of dams.
– “Many challenges” –
According to think tank Ember, imports of renewable energy are expected to cover at least 30 percent of Singapore’s electricity by 2035.
However, there are “many challenges,” warned Niels de Boer, chief operating officer at the Nanyang Energy Research Institute, including transmission distances, energy losses and intermittency.
Plans call for 4,300 kilometers (2,670 miles) of submarine cable and the project still requires approval from Singapore’s energy regulators, the Indonesian government and Australian indigenous communities.
Some of these problems are already being felt in the city-state, such as complications related to hydropower transmission from Laos via Thailand and Malaysia, says Ong Shu Yi, ESG research analyst at the OCBC banking group in Singapore.
There could be “disagreements about the nature of energy transmission between different countries and competition between economies for access to renewable energy.”
Singapore currently relies on imported fossil fuels, which can, however, be purchased on the open market.
“A large-scale bilateral agreement on importing renewable energy limits Singapore’s strategic flexibility,” says Zhong Sheng, senior research fellow at the Institute of Energy Studies at the National University of Singapore.
In the event of disruptions, “there may be few alternative renewable energy sources available to compensate.”
It is therefore crucial for Singapore to diversify its renewable energy sources.
“The more you can diversify, the better your energy security,” says Euston Quah, director of the Economic Growth Centre at Nanyang Technological University in Singapore.
“This additional Australian energy supply source can only be a good thing.”
According to experts, Singapore could also reduce the risk by involving regional organizations such as ASEAN.
– “Global Trend” –
The city is unique in some respects: its increasingly high electricity demand is five times higher than the regional average.
But the country is far from the only one looking abroad to meet its needs, says Bradford Simmons, senior director of energy, climate and resources at Bower Group Asia.
According to the International Energy Agency, Thailand already imports 12 percent of its electricity generated from coal and hydropower.
The “mismatch” between countries that can produce renewable energy and those with enormous demand will “only increase the incentives for international electricity trading,” Simmons said.
“Singapore is just part of a larger global trend.”
Demand from Singapore is also promising for the region’s “huge, untapped renewable energy potential,” says Dinita Setyawati, senior analyst for Southeast Asia’s electricity policy at Ember.
This could “drive an energy transition in the region and boost ambitions in the field of renewable energy,” she told AFP.
From Laos to Malaysia’s Sarawak region, officials are explicitly citing Singapore’s request when discussing plans to boost renewable energy production.
And the city-state’s appetite and financial resources could help remove obstacles, Zhong says.
“The urgency and scale of efforts are often influenced by domestic politics, raw material endowments, financial capabilities and technological capacity,” he told AFP.
“Singapore’s leadership in this area could lead to better coordinated regional efforts in the transition to a low-carbon energy transition.”
