Not feasible for S'pore to avoid net‑zero; all options to cut energy emissions on table: Tan See Leng

Straits Times

27-07-2025

Dr Tan See Leng, Minister-in-charge of Energy and Science & Technology, said Singapore is exploring all possible options in its energy transition.
SINGAPORE - It is no longer feasible nor practical for Singapore to avoid working towards a net-zero future, said Dr Tan See Leng, Singapore's Minister-in-charge of Energy and Science & Technology.
Fluctuations in the prices of fossil fuels due to geopolitical conflicts have driven up energy prices. Dealing with the impacts of climate change, such as rising sea levels, is also critical for Singapore, he said.
'Energy is existential for us, just like water was existential in the 90s,' said Dr Tan in his first formal interview as Minister-in-charge of Energy and Science & Technology on July 21.
The portfolio sits under the Ministry of Trade and Industry, and was created in the
latest round of Cabinet changes in May. Dr Tan was previously Second Minister for Trade and Industry, and he continues to helm the Manpower Ministry in the new Cabinet.
Prime Minister Lawrence Wong had said that science and technology are key drivers of growth, while energy – especially clean energy – will be an important part of his Government's agenda.
Singapore now relies on natural gas, a fossil fuel, for about 95 per cent of its energy needs.
The Republic's goal is to reach net-zero emissions – where the total amount of emissions is balanced by activities to reduce the amount of carbon dioxide in the atmosphere – by 2050.
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Achieving this would require the energy sector, which makes up about 40 per cent of the nation's total emissions, to cut its emissions.
Dr Tan said Singapore is exploring all possible options in its energy transition to ensure its energy needs are met in a sustainable, resilient and cost-effective way.
'Nothing is off the table. We will explore every single pathway, every single possibility, and... make sure it is cost-effective and sustainable,' he said.
During the 90-minute interview, Dr Tan fielded a range of questions about Singapore's energy future, from developments in the Asean power grid, to the country's
exploration of nuclear and geothermal energy , and the role of emerging technologies such as carbon capture and storage.
He acknowledged that Singapore's energy transition will result in higher costs, and said the Government will provide support to help people cope.
For example, utility rebates such as the U-Save rebates help households to offset utility expenses, while climate vouchers are meant to encourage them to switch to green appliances. Meanwhile, he said the Government will work with businesses such as through energy efficiency grants to help them manage this impact.
'It is not going to be possible for the cost to not go up,' Dr Tan said. 'But what we will endeavour to do is to manage that gradient... and supplement it with rebates, with grants to help our local population, our households and businesses.'
The promise of energy imports
Dr Tan said that in the near term, renewable energy imports hold the most promise for Singapore.
The Republic has limited access to renewable energy resources, so importing clean electricity generated elsewhere can help.
In 2024, Singapore
raised its low-carbon electricity import target from 4 gigawatts (GW) to 6GW by 2035. This is expected to make up around a third of the country's energy needs by 2035.
Dr Tan said there is a possibility to increase the target beyond this, depending on partnerships.
The Asean power grid – which will allow countries to share renewable energy resources – is also gaining traction, with a growing number of bilateral discussions on the issue.
For example, Singapore and Indonesia in June
inked three key agreements to strengthen cooperation in clean energy and sustainable development, including agreements on cross-border electricity trade.
A regional grid is a win-win for countries importing and exporting renewable energy, Dr Tan noted.
It will not only help Asean achieve its net-zero ambitions earlier, he said, but also bring about economic growth to the countries. 'Given the vast amount of potential that is within Asean itself, you could unlock significant economic opportunities,' he added.
A
US-Singapore study on energy connectivity in South-east Asia had assessed that building the Asean power grid can generate US$2 billion (S$2.6 billion) annually in research and development, and create as many as 9,000 jobs a year.
Asked if the breakdown of multilateralism around the world helped to focus attention on the importance of the regional grid, Dr Tan said: 'I think that in a way, we've all been encouraged as a result of all of the recent developments.'
He added: 'I don't think there's any one major particular push. It's a whole series of nudges. I think the tariffs could also be one of those reminders to encourage all of us to come together and work even more closely as one united Asean.'
Dr Tan said the other pathways that Singapore is exploring – such as the use of carbon capture technologies, the potential of hydrogen as a clean fuel, or tapping nuclear energy – are 'still some distance away'.
'So I think in the foreseeable next five years, you will see a lot of work on renewable energy imports, and at the same time, still natural gas, and how to decarbonise natural gas.'
The importance of partnerships
Calling his new portfolio a 'redesignation' since he had also overseen energy issues as Second Minister for Trade and Industry, Dr Tan said the new title will help him up the ante in international partnerships.
'It allows a more seamless coordination across the different government agencies within Singapore and also at the same time, when we negotiate internationally,' he said, noting that many countries have dedicated energy ministers.
Dr Tan said that while progress on the Asean grid has been made, challenges remain. These include logistical issues like the need to upgrade existing infrastructure to transfer energy.
This is where Singapore could step in to provide investments, such as initial funding to crowd in more capital for cross-border energy projects.
For example, the Government has appointed Singapore Energy Interconnections, a newly incorporated government-linked company, to specialise in developing cross-border power infrastructure.
Singapore's
$10 billion Future Energy Fund – set up to catalyse investments in clean energy technology that may involve high upfront costs and significant commercial, technological and geopolitical risks – could also provide initial funding.
But to attract other sources of capital, such as from the private sector, government-to-government frameworks will be needed to give investors greater certainty, said Dr Tan.
That would improve the 'bankability' of such projects, he said. 'I think it will attract significant investments, both from public capital, private capital, and even longer-term philanthropic capital.'
Going forward, Dr Tan said natural gas will likely remain a core pillar in Singapore's energy mix.
But its share will change depending on the development of technologies.
'A good position for Singapore is that by the mid-2040s, natural gas will be around just slightly below 50 per cent of our mix,' he said.