S$23 million in grants awarded to 3 power generation companies for energy efficiency projects
SINGAPORE: A total of S$23 million in grants has been awarded by the Energy Market Authority (EMA) to three power generation companies for energy efficiency projects that will reduce their carbon emissions, said the authority on Tuesday (Oct 27).
The three companies are Senoko Energy, Tuas Power Generation as well as YTL PowerSeraya.
Making the announcement at Singapore International Energy Week (SIEW), Second Minister for Trade and Industry Tan See Leng said the move is “just one aspect” Singapore is working on to achieve a cleaner and more efficient energy future.
But even as Singapore shifts towards other cleaner energy sources, liquefied natural gas (LNG) will continue to be a substantial part of Singapore's energy mix in the near future, he added.
Dr Tan noted that natural gas made up 26 per cent of Singapore’s energy mix in 2001, and has risen to 95 per cent today.
“Yet it is only more recently, with the liberalisation of Singapore’s energy market and the commencement of operations of the LNG terminal in 2013, that we have been able to tap on LNG on such a large scale,” he added.
“And since then, LNG has played a progressively bigger role in electricity generation and other industry needs. This is exemplified by how many power generation companies that have started using more efficient gas turbines, and how refineries and petrochemical companies have switched to LNG for their operations.”
READ: Singapore rolls out initiatives to help companies reduce carbon emissions, increase energy efficiency
These grants are part of the Genco Energy Efficiency Grant Call - under the enhanced Industry Energy Efficiency Package - that will co-fund up to 50 per cent of energy efficiency projects by power generation companies.
The grants awarded correspond to the carbon abatement achieved through the projects, subject to a cap of up to 50 per cent of the project’s qualifying costs.
The projects will be implemented between now and 2024, said EMA in a press release.
When completed, the projects are expected to achieve an annual carbon abatement of over 30 kilo tonnes per annum. This is equivalent to taking about 9,200 cars off the roads annually.
"Lowering our carbon emissions by promoting greater energy efficiency within our power generation sector is critical in our fight against climate change," said EMA chief executive Ngiam Shih Chun.
"We are heartened by the power generation companies’ efforts to be more energy efficient and will continue working with them towards a more sustainable energy future."
EMA will launch the second run of Genco Energy Efficiency Grant Call in January 2021, in order to continue their support of power generation companies in "improving their energy efficiency and lowering their carbon emissions", it said.
Energy and the fuel sources used to generate it “forms the bedrocks” of an economy and powers it forward, said Dr Tan in closing.
“LNG has proven to be such a bedrock. For the present and the foreseeable future, it will not only continue to play a substantial role in Singapore’s energy mix, it will also help the world address the challenges of climate change,” he said, adding that advancements in technology could also see hydrogen becoming a key energy resource.
“However, to harness these resources, industries, organisations, and governments have to work together to plan and implement new strategies to ensure that today’s needs are met whilst addressing tomorrow’s challenges.”