Singapore expands energy mix and infrastructure to counter resource nationalism

Singapore is preparing for a more volatile global energy market by broadening its energy mix and upgrading its power infrastructure, Minister for Energy, Trade and Industry Tan See Leng said at the Singapore International Energy Week conference on Oct. 26. The city-state will continue to rely on natural gas, which supplies about 95% of its electricity, while increasing low-carbon options such as solar power and exploring emerging technologies like nuclear and geothermal energy.

Tan noted that recent reductions in Indonesian gas supplies, though modest, highlight the risk of resource nationalism and the need for diversified import sources. About half of Singapore's gas is now imported as liquefied natural gas from a global portfolio that includes the United States and Australia, and the Energy Market Authority requires power plants to retain diesel capability for severe disruptions.

"We must ensure our system resilience continues to be a source of confidence, harness energy to bolster our competitiveness, pursue low-carbon energy pathways, and deepen connectivity with our partners... while keeping costs in check," Tan said.

The minister announced a five-year plan to expand the power system from 2026, featuring five new power plants, seven substations, additional underground transmission cables and offshore infrastructure, as well as a target to triple energy-storage capacity to one gigawatt-hour. Singapore aims to raise its solar capacity to 4 GW-peak by 2035, up from a refreshed target of 3 GW-peak for the end of the decade, representing roughly 5% of projected 2030 electricity demand. A pilot project with Chinese firm GCL Perovskite will test next-generation perovskite solar panels that could improve efficiency.

A $75 million research initiative will fund low-carbon technologies, and Singapore is studying nuclear and geothermal options. While no decision has been made on nuclear deployment, officials will be sent to leading nuclear organisations to build expertise. Consultants have identified geothermal potential exceeding 60 times the country's current annual electricity consumption, though deployment timelines remain uncertain.

To strengthen regional connectivity, the Energy Market Authority gave conditional approval for Sembcorp Utilities to import up to 1.3 GW of renewable electricity from Peninsular Malaysia, with plans for a new subsea interconnector that could add up to 2 GW of capacity by 2030. Singapore targets to import 6 GW of low-carbon electricity from neighbours by 2035, accounting for about 30% of its demand.

"This marks a concrete step forward in adding up to 2 GW of new interconnection capacity between Singapore and Peninsular Malaysia by 2030, which will complement the 1 GW of capacity via our existing interconnector," Tan said.

The announcements also include an agreement with Saudi Arabia to store crude oil in the Jurong Rock Caverns from 2027, providing additional strategic reserves.

Overall, Singapore aims to reinforce its energy security, diversify supply sources and expand clean-energy capacity while managing costs and maintaining system reliability.