Energy Development in Singapore: Legislation & Policies for Low Carbon Growth
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1 Energy Development in Singapore: Legislation & Policies for Low Carbon Growth Social Science Issues in Energy & Environment 4 th International Symposium on Energy & Environment The Oberoi Hotel, Mumbai, 10 th December 2012 Melissa Low, Energy Analyst esimlyx@nus.edu.sg 1
2 Overview Context Introducing Singapore Legislation and Policies for Low Carbon Growth Other mitigation efforts Outlook for Singapore 2
3 Profile of Singapore Urban city-state of just 712.4km² Average temperature 26.9 C, rainfall 2,300mm/year Gentle topography, highest point 164m Population: 5.07 million Population density 7,126 persons per km² Highly developed economy with GDP of S$ billion in 2010 Source: Singapore Energy Statistics
4 Energy Supply Singapore imports all fuel required for energy needs In 2001, fuel oil was dominant source for generation of electricity at 72% Since then, natural gas has taken over as dominant fuel source at 81% in 2009 Electricity generated by diesel, syngas and refuse incineration remain around 4% Source: Energy Market Authority of Singapore, Singapore Energy Statistics
5 Energy Processing & Export In 2009, Singapore had a total of 84 Mtoe of energy exports 98.6% were petroleum products including refinery gas, ethane, LPG, aviation gasoline, paraffin wax etc. Source: Singapore Energy Statistics
6 Electricity consumption Source: Lowcarbonsg.com based on statistics from Energy Market Authority and Singapore Department of Statistics 6
7 Carbon Dioxide Emissions Source: Lowcarbonsg.com based on statistics from Energy Market Authority and Singapore Department of Statistics 7
8 GHG Emissions Singapore s total GHG emissions for year 2005 was 40,377 kilo tons (40 Mt) 48% attributed to electricity generation Per capita carbon emissions remains high (9.46 tons) due to small population and high level of economic activity 8
9 Key Carbon Dioxide Contributors Source: National Climate Change Strategy,
10 Climate Change / Energy Statistics CO 2 emissions from combustion of fossil fuels Energy consumption per dollar GDP (% improvement from 2005 levels) Carbon intensity of electricity generation 3 Household electricity use per capita Unit Kt 39,905 38,524 39,465 43,454 % kgco 2 /kwh NA 2 MWh Green vehicles - Natural Gas vehicles - Hybrid vehicles - Electric vehicles No. No. No ,057 1 Source: National Environment Agency (2012) Key Environmental Statistics ,443 1, ,578 2, ,366 3,
11 Energy Legislation Market deregulation/liberalization since 1995 Energy Market Authority Act 2001 Electricity Act 2001 Energy Conservation Act
12 12
13 Energy Market Authority of Singapore Act (Chapter 92B) An Act to establish and incorporate the Energy Market Authority of Singapore, to provide for its functions and powers, and for matters connected therewith. Note: Part III Functions, Duties and Powers of Authority Part V General Powers of Enforcement Second Schedule Powers of Authority 13
14 Energy Market Authority EMA was set up in April 2001 to liberalize the electricity and gas markets and ensure security, reliability and adequacy of power system EMA oversees the regulation of electricity, piped gas industries and district cooling in designated areas EMA oversees both the Energy Market Authority of Singapore Act (Chapter 92B) and Electricity Act (Chapter 89A) Regulations made pursuant to the powers conferred under the Electricity Act (Chapter 89A) and are currently in force so come under purview of EMA 14
15 Electricity Act (Chapter 89A) An Act to create a competitive market framework for the electricity industry, to make provision for the safety, technical and economic regulation of the generation, transmission, supply and use of electricity, and for other matters connected therewith, to repeal the Electrical Workers and Contractors Licensing Act (Chapter 89 of the 1985 Revised Edition), and to make consequential amendments to certain written laws. 15
16 Energy Conservation Act Energy Efficiency-related legislation across various sectors will be consolidated in an Energy Conservation Act that will be introduced in FY2013 The proposed mandatory energy management practices will affect companies that consume more than 15 GWh of energy annually, or 1.29 ktoe of energy. Objectives To help Singapore achieve the target of a 35% improvement in energy intensity by 2030, from 2005 levels. To improve the energy performance of companies and thus making them more competitive in the global economy. To complement existing schemes and capability building programmes which provide support for companies investing in energy efficiency To ensure a co-ordinated approach to standards setting for energy efficiency across all sectors 16
17 Other legislation and regulations Energy Market Authority Act Electricity (Electrical Workers) Regulations Electricity (Composition of Offences) Regulations Electricity (Cable Detection Workers) Regulations Electricity (Contestable Consumers) (no. 2) Regulations Electricity (Electrical Installations) Regulations Gas Act Gas (Metering) Regulations Gas (Supply) Regulations Codes of Practice District Cooling Act 2001 District Cooling Supply Services Code *See for more information 17
18 Energy Policies Strategies Diversifying Energy Supply Managing Energy Demand Support Innovative Energy Solutions Policy interpretation Legislation Switching from fuel oil to natural gas Policy of not subsidizing energy costs Energy Efficiency Policies Energy and Carbon Targets R&D Solar 18
19 Policy of not subsidizing energy costs Liberalization of the electricity and gas markets 75% of demand in electricity retail market opened to competition Energy Market Authority of Singapore (EMA) regulates the electricity industry to allow the market to set the price but sets price controls for the monopoly electricity grid company Price regulation is incentive based, rewarding the grid company for efficiency gains Benefits are passed on to consumers in form of lower grid charges Ensures a level playing field Freedom to invest and innovate Transparent, fair and consistent application of the rules 19
20 Energy Efficiency Policies Energy efficiency Liberalization of the energy sector Improvements in generation efficiency Switching to cleaner fuels Designing for efficiency Energy efficiency improvement assistance scheme Grants for energy efficient technologies Energy Conservation Act 2013 (Singapore Certified Energy Manager Training Grant) Promoting the use of public transport Source: E2 Singapore Managing road usage: Vehicle quota system, electronic road pricing Improving fuel economy Promoting green vehicles Promoting fuel-efficient driving habits Building regulations Building labels Green building design guide Mandatory energy labeling scheme Minimum energy performance standards 20
21 21
22 Energy and Carbon Targets 35% improvement in energy intensity by 2030, from 2005 levels 25% improvement of carbon intensity from 1990 level by % reduction of carbon emissions below BAU by 2020 Source: E² Singapore Report (2010), MTI (2006), Singapore Green Plan
23 Energy and Carbon Target Milestones Energy intensity improvement by 15% between 1990 and 2005 CO₂ intensity is below world average, at 0.17kg CO₂/2000S$ in 2007 Dropped by about 39% (from 0.28kg CO₂/2000S$) from 1990 to 2007 Source: Low Carbon Singapore 23
24 Energy Policy Group Inter-ministry policy group chaired by Mr Peter Ong, Permanent Secretary of MTI EPG is responsible for the formulation and coordination of energy and energy-related policies and strategies Comprises senior representatives from the Ministry of Finance; Ministry of Foreign Affairs; Ministry of the Environment & Water Resources; MTI, Ministry of Transport; Agency for Science, Technology and Research; Building and Construction Authority; Economic Development Board; Energy Market Authority; Land Transport Authority; and National Environment Agency Since March 2006, the EPG has studied a wide range of energy issues, including the power and transport sectors; energy efficiency; climate change; energy industry; energy R&D; and international energy cooperation. 24
25 Energy Grants To support upstream, downstream commercially-relevant R&D Clean Energy Research Program (2007) S$50mil Solar Energy Fuels Centre (2010), part of the Energy Research NTU (ERI@N) S$200mil EMA Market Development Fund S$5mil EDB Solar Capability Scheme S$20mil EDB Clean Energy and Research Test-bedding (CERT) S$17 mil Grant for Energy Efficient Technologies (GREET) 50% of project cost, cap at S$2mil Solar Research Institute of Singapore (SERIS) (2008) S$130mil 25
26 National Policy Reports National Energy Policy Report, Nov 2007 National Climate Change Strategy, Mar 2008 Sustainable Development Blueprint, Apr
27 Inter-Ministerial Committee on Climate Change (2007) Source: NCCS 27
28 National Climate Change Secretariat (2009) Lead and coordinate Singapore s domestic and international policies, plans and actions on climate change so as to secure a sustainable living environment for our future generations Aims to achieve these objectives by adopting a Whole-of- Government approach and working with the People and Private sectors to devise and implement cost-effective mitigation and adaptation solutions, reap the opportunities arising from addressing climate change challenges and contribute towards global efforts to address climate change Allocated a budget of $14.13 million or 4.1% of the PMO s total budget in FY
29 National Communications (2000, 2010) Source: NCCS 29
30 Public Perception towards Climate Change Source: National Climate Change Secretariat Public Perception Survey
31 Public Perception towards Climate Change Source: National Climate Change Secretariat Public Perception Survey
32 Public Perception towards Climate Change Source: National Climate Change Secretariat Public Perception Survey
33 Suggestions for Green Living Households Improve energy labels on household appliances by adding information to make costs and benefits clearer Transport Redesign train cabins to encourage better passenger behavior Adopt and emissions-based or fuel-efficiency based vehicle tax system Buildings Expand the Green Mark scheme to include environmental impacts such as materials and air pollution Small & Medium-sized Enterprises Develop a library of energy efficiency practices as a reference for SMEs Others Incorporate climate change issues formally into school curriculum 33
34 Government s response to suggestions Households National Environment Agency reviewing design of labels to possibly include operating costs of appliances Transport Emissions-based tax is in the works Soon buyers of highly fuel-efficient new cars may enjoy up to S$15,000 of rebates, while those with polluting models may pay up to the same amount in penalties Buildings Building and Construction Authority is building a Web-based carbon emissions calculator that takes into account a building s lifespan and major construction materials Small & Medium-sized Enterprises UN Environment Program has developed a guide for Asia, Government is studying the development of a compendium of best practices suitable for Singapore 34
35 Energy Conservation Act 2013 Aimed at consolidating energy efficiency-related legislation across various sectors Affects: companies that consume more than 15 GWh of energy annually, or 1.29 ktoe of energy Includes: Appointment of energy managers Reporting of energy use Submission of energy efficiency improvement plans for large energy users 35
36 Outlook for Singapore Climate change and the post-kyoto regime create degree of uncertainty that Singapore and ASEAN-China will have to face and make difficult decisions about Increasing population and urban densities leading to increased energy consumption are significant concerns in the future Singapore will continue the pursuing policy of not subsidizing energy costs, energy efficiency policies, setting energy and carbon targets and invest in R&D Diversifying our energy supply further to possibly include LNG and electricity imports (consultations ongoing by EMA) Solar energy will continue to be an important energy source for Singapore for mitigation 36
37 References Doshi, T. K., N. S. D Souza, L. P. Nguyen, T. H. Guan (2011). The Economics of Solar PV in Singapore, Discussion Paper EE/11-01, Energy Studies Institute, Singapore. Copy available from Dr. Tilak Doshi E² Singapore Report Available online at: Energy Conservation Act (2010) Available online at: Energy Research NTU Available online at: Energy Market Authority Annual Report 2010/2011 Available online at: Energy Market Authority (2009) Introduction to the National Electricity Market of Singapore Available online at: Energy Market Authority (2008) Handbook for Photovoltaic Systems Available online at: Energy Studies Institute Available online at: 37
38 References HDB Infoweb (2011) First Solar Leasing Project in Singapore Available online at: Low Carbon Singapore (2009) Singapore s Carbon Dioxide Emissions Per Capita and Carbon Intensity Available online at: Ministry of Trade and Industry (2006) Feature Article: Benchmarking Singapore s Energy Intensity Available online at: National Climate Change Strategy (2008) Available online at: National Climate Change Secretariat (2011) Solar Energy Primer Available online at: National Climate Change Secretariat (2011) Public Perception Survey 2011 Available online at: Solar Energy Research Institute of Singapore(SERIS) Available online at: Sustainable Blueprint Singapore (2009) Available online at: Singapore Energy Statistics (2011) Available online at: Tropical Marine Science Institute (2009) Assessment of Alternative energy potential using Geographic Information Systems (GIS) Copy available from Dr. Durairaju Kumaran Raju tmsdkr@nus.edu.sg 38
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