Singapore's power demand expected to increase in the next decade

The chief executive of Singapore's Energy Market Authority, who spoke on Monday, said that the expansion of advanced manufacturing and technology in Singapore, as well as the electrification of cars, will increase the growth of power demand in the next decade.

EMA CEO Puah Kok Keong said that electricity consumption would grow between 2% to 5% by 2035. This compares with an average increase of 1.9% in the 10 years up until 2024.

Singapore's power consumption is growing faster than that of its regional neighbours Australia or Japan, even though they are among the highest energy consumers per capita in the world.

"As electricity-intensive industries continue to expand - such as in advanced manufacturing, the digital economy, and electrification of the transport sector - we anticipate continued growth in electricity demand," Keong told .

The majority of this increase in demand will be met by natural gas which is responsible for 95% of the electricity generated. Singapore, despite its land shortage, is increasing domestic renewable production and hoping to boost clean power imports from neighbours.

Singapore aims to import six gigawatts (or about one third of its power) of low-carbon electricty by 2035. Malaysia currently provides about 1% (or a little more) of Singapore's low-carbon electricity.

Grid interconnection will be key in reducing Southeast Asia's increasing reliance on fossil energy. In 2022, EMA made an announcement that it called "historic", a deal to import hydropower through Malaysia, Thailand, and Laos.

Thailand has not yet finalised the terms of a multilateral extension. Malaysia's Energy Minister said this month that Thailand has delayed renewing the multilateral deal due to "local politics changes." However, he expects Bangkok will finalise an agreement by November.

Keong, without providing any further details, said that "the flow from Lao PDR should begin very soon."

Singapore also plans to import power from Indonesia by 2028. However, Keong stated that imports "from further away" could only be realized closer to 2035.

"Cross border electricity import projects are complicated and require extensive coordination among multiple governments, regulators and developers. He said that these projects could take years. (Reporting and editing by Michael Perry; Sudarshan Varadahan)

(source: Reuters)