Why Singapore is Asia's ideal testbed for 24/7 carbon-free electricity

Experts at a TransitionZero webinar said Singapore has the ideal conditions to test the 24/7 CFE model. (Photo: iStock)

Singapore is emerging as a potential proving ground for a round-the-clock clean power model, 24/7 carbon-free electricity (CFE), experts said at TransitionZero’s webinar on Modelling 24/7 CFE in Singapore. A new TransitionZero report finds that achieving 70% CFE would cost USD 47 million less in capital expenditure than the conventional annual matching approach.

Most companies today rely on annual renewable energy certificates (RECs) to offset emissions. In contrast, 24/7 CFE ensures that each hour of electricity consumption is matched by clean generation. It represents a “paradigm shift” in how system planners and corporate buyers think about clean energy, said Bala Viswanathan, Energy Officer at SEforALL, an international organization promoting clean energy in partnership with the United Nations.

Achieving 70% CFE would cost Singapore USD 47 million less in capital expenditure than the conventional annual matching approach, TransitionZero finds. (Chart: TransitionZero)

Why Singapore: infrastructure strength and import potential

Commercial and industrial consumers in Singapore currently face limited options to procure clean electricity, largely due to the country’s scarce domestic renewable resources and a generation mix that remains about 95% dependent on natural gas. As a result, annual REC-based matching remains the main pathway to meet Scope 2 decarbonization targets.

Even so, Singapore’s deregulated electricity market, advanced data systems, and financial strength position it as one of the most promising locations in Asia to pilot hourly matching, said Lorenzo Mancini, Head of Sales at renewable energy developer Peak Energy.

Cross-border electricity trade is becoming an integral part of Singapore’s energy strategy. As part of its long-term plan, the country aims to import up to 6 GW of low-carbon electricity by 2035 and has already signed a deal for a subsea cable to import 3 GW from Indonesia.

To fully unlock its 24/7 CFE potential, additional clean energy imports will be required, such as solar power from Indonesia via a 1 GW interconnection, according to the TransitionZero report.

How: domestic storage and regional renewable imports

Optimal combinations of domestic generation, energy storage, and regional renewable imports could help Singapore achieve round-the-clock clean electricity. In the best-case scenario, reaching 70% CFE, the country would need to install about 2.4 GW of solar and 0.5 GW of battery storage, or 433 MW less solar and 200 MW less storage than under an annual matching approach.

This setup would be 19% cheaper for commercial and industrial consumers, while also cutting emissions and reducing overall fuel demand, according to the report.

Building on existing low-carbon electricity imports from Malaysia, Indonesia, Vietnam, and Australia, expanding grid interconnections will be key to supporting higher renewable imports needed for 24/7 CFE. While full regional integration may be ambitious in the near term, progress could begin at the subregional level, starting with stronger grid links among Singapore, Malaysia, and Indonesia, said Peerapat Vithayasrichareon, Senior Energy Analyst at the IEA.

Expanding regional grid links with Malaysia, Indonesia, Vietnam, and Australia will be key for Singapore to securing the renewable imports needed for 24/7 clean power. (Chart: TransitionZero)

However, the heavy reliance on imports also raises energy security concerns. Mancini noted that Singapore might be hesitant to move toward the optimal scenario, remarking, “Singapore might not want to give its light switch to other countries.”

Vithayasrichareon added that in practice, the target share of clean power must be carefully determined. Increasing the CFE share from 70% to 80%, for example, would cause marginal abatement costs to rise sharply.

Despite these challenges, experts agreed that Singapore offers the ideal conditions to test the 24/7 CFE model. If proven technically and regionally, the model could serve as both a climate tool and a competitive advantage for the country. As Mancini put it, “Everyone is waiting to see if and when it’s going to happen.”

Source: TransitionZero, The Strait Times

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