Singapore will appoint a team of experts to study the feasibility of building next-generation geothermal power plants, after a preliminary survey found that the technical potential of geothermal energy beneath the island is more than 60 times the country’s annual electricity consumption of around 60 terawatt-hours (TWh).
Announcing the move on Monday, Dr Tan See Leng, Minister for Energy, Trade and Industry (METI) called the findings “a very good start”, but cautioned that the city-state has not yet decided whether to deploy the technology.
“We are at the start of our journey… It could take many years before we get to that decision point. Nevertheless, we will explore this option seriously,” he said at the Singapore Energy Lecture during Singapore International Energy Week (SIEW).
The geophysical survey, carried out by a consortium of international consultants, was conducted last year. Tan said the amount of electricity Singapore could eventually generate would depend on the cost and technical feasibility of reaching resources located several kilometres underground, the pace of advances in deep drilling, and how many plants could fit in a dense urban environment.
The quest for net zero
Geothermal and nuclear energy are the two pathways Singapore is “seriously studying” to supply low carbon power that can meet baseload demand at utility scale, Tan said. Solar, the country’s most viable local renewable source, can meet no more than 10 per cent of projected electricity demand in 2050 even with a bigger push. he noted.
Singapore aims to achieve net zero greenhouse gas emissions by 2050 under its long term emissions strategy and commitment to the Paris Agreement on climate change.
Hydrogen also faces fundamental constraints, Tan added, citing slower-than-expected global market development that has kept costs high, and an energy penalty at every stage of production, transport and combustion.
The country continues to study a possible pilot of ammonia direct combustion on Jurong Island, and its upcoming combined cycle gas turbines will be able to burn a blend of natural gas and hydrogen.
Building nuclear expertise
On nuclear, Singapore will host an International Atomic Energy Agency (IAEA) Integrated Nuclear Infrastructure Review (INIR) mission next year to independently assess its capabilities in areas such as nuclear safety, radioactive waste management and emergency planning.
METI and the Energy Market Authority (EMA) launched three schemes on Monday to build local nuclear expertise, which they said would help Singapore assess whether advanced nuclear technologies suit its power system and prepare for the INIR mission. The agencies stressed that Singapore has not yet made a decision on nuclear energy.
The Singapore Nuclear Manpower Development Programme will pair government agencies with global nuclear organisations, giving public officers on-the-job exposure at nuclear technology companies, engineering, procurement and construction (EPC) firms and other organisations, in areas such as technology assessment, project development, licensing and regulation.
EMA will sign partnership agreements at SIEW with Canadian engineering firm AtkinsRéalis, China National Nuclear Corporation Overseas and US reactor developer X-energy, and expects to add more. The programme starts in 2027 and will be rolled out progressively.
A separate Nuclear Manpower Development Programme (Industry) will fund staff from selected Singapore-based companies, by invitation, to join training programmes and industry attachments with international partners, positioning local firms for nuclear opportunities overseas.
A third scheme, the Singapore Future Energy Fellowship, will bring in international energy leaders to give independent advice on Singapore’s long-term energy strategy. The first batch of fellows, all with nuclear expertise, will be appointed this year.
The National University of Singapore and Nanyang Technological University are also working towards launching a joint master’s programme in nuclear engineering in 2027.
“Even if Singapore eventually decides not to deploy nuclear energy, the capabilities and expertise we are developing today will continue to serve us well,” Tan said.
Solar and storage strategies
Singapore is on track to meet its target of 3 gigawatt-peak (GWp) of solar by 2030 and is now aiming for 4 GWp by 2035, Tan said.
To squeeze more power out of limited space, the government is working with EDP Asia Pacific and GCL Perovskite on a proposed pilot of tandem perovskite-silicon panels under tropical conditions. It is the first project Singapore intends to take forward under its new Singapore Pilots for Energy and Enterprise Decarbonisation (SPEED) programme.
Tan also launched an industry consultation paper on Singapore’s National Energy Storage Systems (ESS) vision. Singapore currently has about 350 megawatt-hours (MWh) of storage, and hopes to triple this to just over 1 gigawatt-hour (GWh) by 2030 to help balance increasingly variable solar output and provide fast-response backup to the grid.
A new S$75 million (US$58.5 million) ‘Power Decarbonisation Funding’ Initiative will back research into low carbon technologies for cleaner and more secure power generation. It is the third funding initiative under the S$800 million (US$624.5 million) Decarbonisation Grand Challenge, following the Industry Decarbonisation Funding Initiative announced by Deputy Prime Minister last week.
The EMA also separately awarded conditional approval to Sembcorp Utilities on Monday to import up to 1.3 gigawatts (GW) of renewable electricity from and through Peninsular Malaysia.
Sembcorp’s consortium partners – Petronas, Tenaga Nasional Berhad (TNB), Gentari and PetroVietnam Technical Services Corporation – intend to draw on sources including offshore wind from Vietnam and solar power from Malaysia.
The approval builds on conditional approvals granted in August to two projects to import a combined 900 megawatts (MW) of low carbon electricity from Johor.
Marine subsea surveys have also begun this month along the proposed route of a new interconnector between Singapore and Peninsular Malaysia, which is expected to add up to 2 GW of capacity by 2030 on top of the existing 1 GW link.
The project is being developed by Singapore Energy Interconnections, SP PowerAssets and TNB under a joint development agreement signed last October.
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Decarbonisation will come with costs, but we will not pursue decarbonisation at all costs.
Dr Tan See Leng
EMA and Malaysia’s Energy Commission have set up a joint working group to harmonise how cross-border renewable energy certificates are tracked and accounted for, so that corporate buyers can credibly use them in sustainability reporting.
But Tan stressed that Singapore is not pursuing imports “at all costs”. Projects will need to offer a competitive price relative to other decarbonisation pathways, including the use of international carbon credits, and the country will calibrate its ambitions to the pace of regional collaboration and market conditions.
The announcements come against a backdrop of global energy turmoil. Tan said the closure of the Strait of Hormuz continues to disrupt global energy flows, and the situation could escalate further after recent Houthi attacks on Saudi Arabia’s airport and energy infrastructure.
Earlier this month, Singapore renamed the Ministry of Trade and Industry as the Ministry of Energy, Trade and Industry - the first change to the ministry’s name since 1979 - to reflect what Tan called raised ambitions for the next phase of the energy transition. The government’s approach will rest on “five Cs”: confidence, competitiveness, carbon, connectivity and cost.
“Decarbonisation will come with costs, but we will not pursue decarbonisation at all costs,” Tan said. “It must never come at the expense of our livelihoods and system security. We will ensure that our market frameworks support a competitive and commercially sustainable power sector, and that our households and businesses do not face an undue burden,” he added.
While prices have risen this year, Singapore has experienced no fuel shortages or power outages, Tan said. A recent reduction this week in piped gas exports from Indonesian suppliers – which attracted considerable attention on the state of relations between Singapore and its bigger neighbour – amounts to less than 2 per cent of Singapore’s total daily gas demand, he said.
To shore up supply, Saudi Arabia and Singapore announced their joint intent to store Saudi crude oil at the Jurong Rock Caverns, an underground facility on Jurong Island, from the second half of 2027.
EMA and JTC Corporation exchanged a memorandum of understanding with Saudi Aramco at SIEW as a first step, and Tan said both sides aim to conclude negotiations within a few months.
The caverns lie about 150 metres below ground and can hold up to 1.47 million cubic metres of liquid hydrocarbons, according to JTC. The volume set aside for Saudi crude has not been disclosed. The stored oil would help meet Singapore’s needs during supply disruptions while strengthening Saudi supply chains in Southeast Asia.
Saudi Energy Minister Prince Abdulaziz bin Salman Al-Saud, speaking by video at the conference, said the arrangement would bolster the kingdom’s supply network and support Singapore’s preparedness. Aramco runs a similar crude storage arrangement with Japan in Okinawa.
Singapore GasCo, the state gas procurer formed last year, has launched its first request for proposals for gas supply beyond 2028 and expects to award contracts by 2027. A second LNG terminal due by 2030 will raise import capacity by 50 per cent.
” So, for Singapore, we can keep calm and carry on,” Tan said. “Our households and businesses can be assured that our energy security is always at the top of our minds.”
