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Sustainable Energy Development in Singapore: Legislation and Policies
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    Sustainable Energy Development in Singapore: Legislation and Policies Sustainable Energy Development in Singapore: Legislation and Policies Presentation Transcript

    • Sustainable Energy Development inSingapore: Legislation & PoliciesPolitical, Social and Economic Implications of Sustainable EnergyDevelopment in South East AsiaAsian Youth Energy Summit – Reshaping Sustainability in Asia25 March 2012Melissa Low, Energy Analystesimlyx@nus.edu.sg 1
    • 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$303.65 billion in 2010Source: Singapore Energy Statistics 2011 2
    • 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 2011 3
    • 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 2011 4
    • Electricity consumptionSource: Lowcarbonsg.com based on statistics from Energy Market Authority and Singapore Department of Statistics 5
    • Carbon Dioxide EmissionsSource: Lowcarbonsg.com based on statistics from Energy Market Authority and Singapore Department of Statistics 6
    • 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 7
    • Key Carbon Dioxide ContributorsSource: National Climate Change Strategy, 2008 8
    • Climate Change / Unit 2007 2008 2009 2010 Energy StatisticsCO2 emissions fromcombustion of fossil Kt 39,905 38,524 39,465 43,454fuelsEnergy consumptionper dollar GDP (% % 10.1 15.1 12.1 16.0improvement from2005 levels)Carbon intensity ofelectricity kgCO2/kWh 0.5233 0.5016 0.4761 NA2generation3Household electricity MWh 1.36 1.27 1.33 1.32use per capitaGreen vehicles- Natural Gas No. 485 3,443 4,578 5,366vehicles No. 1,057 1,999 2,641 3,335- Hybrid vehicles No. 1 1 5 10- Electric vehicles Source: National Environment Agency (2012) Key Environmental Statistics 2011 9
    • Energy Legislation• Market deregulation/liberalization since 1995• Energy Market Authority Act 2001• Electricity Act 2001• Energy Conservation Act 2013 10
    • 11
    • Energy Market Authority of Singapore Act (Chapter 92B)An Act to establish and incorporate the Energy MarketAuthority of Singapore, to provide for its functions andpowers, 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 12
    • 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 13
    • Electricity Act (Chapter 89A)An Act to create a competitive market framework for theelectricity industry, to make provision for the safety,technical and economic regulation of the generation,transmission, supply and use of electricity, and for othermatters connected therewith, to repeal the ElectricalWorkers and Contractors Licensing Act (Chapter 89 of the1985 Revised Edition), and to make consequentialamendments to certain written laws. 14
    • 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 15
    • 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 www.ema.gov.sg for more information 16
    • Energy Policies Strategies Policy interpretation• Diversifying Energy • Legislation Supply • Switching from fuel oil to• Managing Energy natural gas Demand • Policy of not subsidizing• Support Innovative energy costs Energy Solutions • Energy Efficiency Policies • Energy and Carbon Targets • R&D • Solar 17
    • 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 18
    • Energy Efficiency Policies Energy efficiency • Liberalization of the energy sector • Managing road usage: Vehicle • Improvements in generation efficiency quota system, electronic road pricing • Switching to cleaner fuels • Improving fuel economy • Designing for efficiency • Promoting green vehicles • Energy efficiency improvement assistance scheme • Promoting fuel-efficient driving habits • Grants for energy efficient technologies • Building regulations • Energy Conservation Act 2013 • Building labels (Singapore Certified Energy Manager • Green building design guide Training Grant) • Mandatory energy labeling scheme • Promoting the use of public transport • Minimum energy performance standardsSource: E2 Singapore 19
    • 20
    • Energy and Carbon Targets • 35% improvement in energy • 25% improvement of carbon intensity by 2030, from 2005 intensity from 1990 level by levels 2012 • 16% reduction of carbon emissions below BAU by 2020Source: E² Singapore Report (2010), MTI (2006), Singapore Green Plan 2012 21
    • Energy and Carbon Target Milestones • Energy intensity improvement • CO₂ intensity is below world by 15% between 1990 and average, at 0.17kg 2005 CO₂/2000S$ in 2007 • Dropped by about 39% (from 0.28kg CO₂/2000S$) from 1990 to 2007Source: Low Carbon Singapore 22
    • 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. 23
    • 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 Institute @ 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 24
    • National Policy Reports• National Energy Policy Report, Nov 2007• National Climate Change Strategy, Mar 2008• Sustainable Development Blueprint, Apr 2009 25
    • Inter-Ministerial Committee on Climate Change (2007)Source: NCCS 26
    • 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 FY2011 27
    • National Communications (2000, 2010)Source: NCCS 28
    • Public Perception towards Climate ChangeSource: National Climate Change Secretariat Public Perception Survey 2011 29
    • Public Perception towards Climate ChangeSource: National Climate Change Secretariat Public Perception Survey 2011 30
    • Public Perception towards Climate ChangeSource: National Climate Change Secretariat Public Perception Survey 2011 31
    • Suggestions for Green LivingHouseholds• Improve energy labels on household appliances by adding information to make costs and benefits clearerTransport• Redesign train cabins to encourage better passenger behavior• Adopt and emissions-based or fuel-efficiency based vehicle tax systemBuildings• Expand the Green Mark scheme to include environmental impacts such as materials and air pollutionSmall & Medium-sized Enterprises• Develop a library of energy efficiency practices as a reference for SMEsOthers• Incorporate climate change issues formally into school curriculum 32
    • Government’s response to suggestionsHouseholds• National Environment Agency reviewing design of labels to possibly include operating costs of appliancesTransport• 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 penaltiesBuildings• Building and Construction Authority is building a Web-based carbon emissions calculator that takes into account a building’s lifespan and major construction materialsSmall & 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 33
    • 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 34
    • ReferencesDoshi, T. K., N. S. D’Souza, L. P. Nguyen, T. H. Guan (2011). “The Economics of Solar PV in Singapore,” DiscussionPaper EE/11-01, Energy Studies Institute, Singapore.Copy available from Dr. Tilak DoshiEmail:E² Singapore ReportAvailable online at: http://www.e2singapore.gov.sg/Energy Conservation Act (2010)Available online at:http://app.mewr.gov.sg/data/ImgCont/1386/2.%20Factsheet_Energy%20Conservation%20Act%20%5Bweb%5D.pdfEnergy Research Institute @ NTUAvailable online at: http://www3.ntu.edu.sg/erian/announcements.htm#SolarfuelsEnergy Market Authority Annual Report 2010/2011Available online at: http://www.ema.gov.sg/media/files/annual_reports/EMA_Annual_Report_2011.pdfEnergy Market Authority (2009) Introduction to the National Electricity Market of SingaporeAvailable online at:http://www.ema.gov.sg/media/files/books/intro_to_nems/Introduction%20to%20the%20NEMS_Jul%2009.pdfEnergy Market Authority (2008) Handbook for Photovoltaic SystemsAvailable online at:http://www.ema.gov.sg/media/files/books/pv_handbook/20080509114101_9803_PV_Handbook_25apr08.pdfEnergy Studies InstituteAvailable online at: http://www.esi.nus.edu.sg 35
    • ReferencesHDB Infoweb (2011) First Solar Leasing Project in SingaporeAvailable online at:http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/6B313D60012ADD5D4825790C002DC8A1?OpenDocumentLow Carbon Singapore (2009) Singapore’s Carbon Dioxide Emissions Per Capita and Carbon IntensityAvailable online at:http://www.lowcarbonsg.com/2009/05/14/singapores-carbon-dioxide-emissions-per-capita-and-carbon-intensity/Ministry of Trade and Industry (2006) Feature Article: Benchmarking Singapore’s Energy IntensityAvailable online at:http://app.mti.gov.sg/data/article/5842/doc/ESS_2006Q3_EnergyIntensity.pdfNational Climate Change Strategy (2008)Available online at: http://app.mewr.gov.sg/web/Contents/ContentsNCC.aspx?ContId=452National Climate Change Secretariat (2011) Solar Energy PrimerAvailable online at: http://www.nccs.gov.sgNational Climate Change Secretariat (2011) Public Perception Survey 2011Available online at: http://www.nccs.gov.sgSolar Energy Research Institute of Singapore(SERIS)Available online at: http://www.seris.nus.edu.sg/Sustainable Blueprint Singapore (2009)Available online at: http://app.mewr.gov.sg/web/Contents/ContentsNCC.aspx?ContId=452Singapore Energy Statistics (2011)Available online at: http://www.ema.gov.sg/media/files/publications/SES2011.pdfTropical Marine Science Institute (2009) Assessment of Alternative energy potential using GeographicInformation Systems (GIS)Copy available from Dr. Durairaju Kumaran RajuEmail: tmsdkr@nus.edu.sg 36