Singapore has the most developed renewable energy market among ASEAN countries in terms of policies, installed capacity, and procurement approaches. In addition, many ASEAN developers choose Singapore as their starting point for expanding their business in the region. Recently, the Singaporean government has introduced various incentives to stimulate the adoption of renewable energy by enterprises. Additionally, the government has also launched the Green Market Incentive Scheme, which categorizes buildings into different levels of green buildings and provides tax incentives and subsidies to encourage green energy demand.
Singapore is relatively limited in its development of renewable energy due to its small size, and its current focus on solar construction has posed the risk of over-reliance on a single source of energy. As a result, Singapore began purchasing hydroelectricity from Laos in 2021. The electricity is transmitted across four countries, starting in Laos, traveling through Thailand and Malaysia, and ending in Singapore. Currently, Singapore is pursuing various cross-border power purchase projects. However, such actions come with certain risks, including unaccounted carbon emissions from the transmission process and over-reliance on imported electricity.
Singapore's short-term goal is to achieve a peak solar deployment of at least 2 GW by 2030, which would be sufficient to meet the annual electricity demand of 350,000 households. Due to the intermittent nature of solar energy and its vulnerability to weather conditions, Singapore is deploying energy storage systems to enhance grid resilience. In February 2023, Singapore launched a 285-MWh energy storage facility on Jurong Island, expected to be operational in six months. Deployment of regional grids is also considered a key objective in Singapore's energy transition, with plans to import up to 4 GW of low-carbon electricity by 2035, accounting for 30% of Singapore's projected electricity supply. This proportion of electricity is expected to meet current renewable energy demand If achieved as scheduled.