GLOBALISATION looks less appealing than insularity and self-sufficiency in today’s environment. What options are there for countries such as Singapore, though, which have limited land mass and natural resources?
The answer likely lies in the strengthening of national infrastructure and the expansion of international ties. When it comes to energy security, that translates into investments in the national grid and a continued diversification of energy sources.
Singapore’s journey to food and water security illustrates the power of diversification. The country imports over 90 per cent of its food from some 170 countries, and relies on the “four national taps” of local catchments, imported water, recycled water and desalination for steady supply.
This diversification strategy has kept chickens in supply during the Covid-19 pandemic, and water flowing during periods of drought.
Today, 95 per cent of Singapore’s power comes from natural gas delivered via pipelines and liquefied natural gas imports. These sources of gas are varied, which safeguards national energy security to some extent.
In the current geopolitical climate, however, the more power sources Singapore can include, the better. Additionally, the country’s net-zero ambitions require an increased use of renewable sources such as solar, hydrogen and even nuclear.
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Supporting a wide variety of energy sources requires a state-of-the-art energy grid, and grid resilience is the one element of national energy security that Singapore has full control over.
While rarely talked about, grid investments have the potential to make the biggest difference.
Singapore’s energy security strategy
As a small country with limited natural resources, Singapore has long acknowledged its exposure to global demand and supply shocks, as well as price fluctuations.
The country’s energy security strategy includes:
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diversifying its sources of gas;
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building solar capacity;
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importing energy from around the region; and
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exploring new low-carbon alternatives.
Publicly available data shows progress on all these fronts. Solar capacity, for instance, hit 1,543.9 megawatt-peak last year, up 29 per cent year on year. The country is on track to hit its goal for solar capacity to meet 10 per cent of demand by 2050.
Agreements have also been signed to improve low-carbon electricity from Indonesia, Laos, Malaysia and Vietnam. Imports of low-carbon electricity via Asean grid links are expected to supply 30 per cent of demand by 2035.
In new technologies, meanwhile, Singapore is making waves with investments in hydrogen and nuclear capabilities. Under the National Hydrogen Strategy, the aim is for hydrogen to meet up to half of Singapore’s power needs by 2050, with pilots underway, and feasibility studies for small modular reactors have begun.
An example of progress already in motion is the upcoming hydrogen-blended gas facility – the first of its kind in Singapore – at the Pulau Seraya Power Station, expected to deliver up to 600 megawatts to the grid by 2027.
Why the grid matters
Binding these various sources is the national grid infrastructure, which is most easily described as the electricity-delivery mechanism. The grid consolidates power from rooftop solar, offshore imports and future nuclear plants, and delivers what is needed to homes and businesses.
The grid is also responsible for ensuring that fluctuating electricity supply can consistently meet the needs of commercial and retail customers, both in terms of stability and in times of surges.
Demand for electricity is accelerating more rapidly than the rate of economic growth thanks to the rise of electric vehicles, digitalisation of work and the computing needs of artificial intelligence (AI).
Given its importance to so many processes, electricity supply in any modern economy needs to be uninterrupted. It also needs to be able to respond to peaks and troughs throughout the day and across various locations. Electric cars will be charging in housing estates through the night, but in business locations during the day.
A modern, digitalised and smart grid uses sensors, data analytics and automation to balance supply and demand in real time. Faults are isolated, flows are rerouted, and voltage and frequency are stabilised. AI can also forecast demand and send power to where it is needed most.
In Singapore, much of this work is done by EMS II – an enhanced energy management system with solar forecasting, situational awareness and automatic controls, to manage renewables and gas networks. This system will require consistent upgrades and improvements if it is to keep up with changing energy requirements.
On top of powerful software, grid investments include higher-capacity cables and integration with local battery storage. These cables should be able to deliver power over long distances without substantial power loss. Battery energy-storage systems, meanwhile, are particularly important to smooth out the swings that come with integrating renewable sources.
High-voltage direct current (HVDC) transmission is another solution being explored globally, offering the ability to move large volumes of clean energy across long distances more efficiently. In Europe, this is being demonstrated through projects such as the Sofia Offshore Wind Farm, where GE Vernova is supplying the HVDC converter system to enable reliable transmission of power to the UK grid.
The case for grid investments
An investment in Singapore’s grid infrastructure can be viewed as an investment in decarbonisation. The International Energy Agency estimates that global grid investments must double to US$600 billion a year by 2030 to meet climate goals. For every dollar invested in renewable energy, it is estimated that another dollar must be invested in grids.
Grid investments are also national security investments. They reduce exposure to gas-price volatility and geopolitical risk. They enable cheaper, cleaner imports, and unlock domestic solar and hydrogen projects.
Finally, a fully modernised national grid can help position Singapore as Asean’s clean energy hub. By helping to standardise interconnection codes and build shared operating platforms, Singapore can encourage Asean interconnectivity and support energy security – and even cooperation – for the region.
The path to energy security is clear: treat the grid as the strategic asset it is. A modern, smart grid will underpin energy security. By investing now in transmission, controls and storage, Singapore can seamlessly plug in solar, hydrogen, nuclear and imported energy, and secure its power future.
The writer is Asia-Pacific regional leader for grid solutions at GE Vernova
