226 G. JINDAL ET AL.
Singapore is also considered to be “alternate energy disadvantaged.”
Its average wind speeds of 2–3 m/s are not enough to install wind power
which generally requires winds faster than 6 m/s. Furthermore, the seas
are calm and tidal range is relatively narrow; thus, there is no potential
for tidal energy. In fact, the low wind speeds and calm seas are factors
that have made Singapore a historically significant trading port. Much of
Singapore’s terrain lies within 15 meters of the sea level, and there is no
fast-flowing river, thus hydropower is also not feasible. Finally, Singapore’s
high population density and land scarcity render nuclear power and locally
sourced biomass unviable.
Thus, currently the most viable domestic renewable energy option for
Singapore is solar PV. Consequentially, the development of solar PV is a
crucial mitigation strategy for Singapore to achieve its Nationally Determined Contribution target, namely its pledge to the 2015 Paris climate
agreement to achieve a 36% reduction in emissions intensity from 2005
levels by 2030, and to stabilize its emissions with the aim of peaking
around the same time. Toward achieving this target, Singapore has set in
place, a target to install 350 MW of solar PV capacity by 2020, and to
reach 1 GW of installed capacity “beyond 2020.” Before discussing the
strategy and challenges to large-scale growth of solar PV in Singapore,
the following section provides a brief introduction to Singapore’s electricity sector, its liberalized electricity market, and the electricity pricing
framework.
Singapore’s Electricity Sector
In 2017, Singapore’s annual electricity consumption was approximately
49.5 GWh, with a peak demand of about 7.2 GW. Electricity demand
has risen with a compound annual growth rate of 2.8% since 2005 (35.5
GWh), largely driven by consumption from industry, which comprises of
about 40–42% of total electricity consumption, followed by the commerce
& services sector, and households, which constitute the remaining 37
and 15%, respectively (Energy Market Authority 2018a). A study by the
electricity market regular estimates that over the next ten years, electricity demand will grow at a compound annual growth rate of 1.3–1.9%,
depending on factors such as population growth, temperature changes,
and GDP growth rates among others. By 2028, Singapore’s peak demand
is expected to range between 8400 and 8980 MW and annual electricity
demand could grow to 64.6 GWh (Energy Market Authority 2017a).
Singapore is also considered to be “alternate energy disadvantaged.”
Its average wind speeds of 2–3 m/s are not enough to install wind power
which generally requires winds faster than 6 m/s. Furthermore, the seas
are calm and tidal range is relatively narrow; thus, there is no potential
for tidal energy. In fact, the low wind speeds and calm seas are factors
that have made Singapore a historically significant trading port. Much of
Singapore’s terrain lies within 15 meters of the sea level, and there is no
fast-flowing river, thus hydropower is also not feasible. Finally, Singapore’s
high population density and land scarcity render nuclear power and locally
sourced biomass unviable.
Thus, currently the most viable domestic renewable energy option for
Singapore is solar PV. Consequentially, the development of solar PV is a
crucial mitigation strategy for Singapore to achieve its Nationally Determined Contribution target, namely its pledge to the 2015 Paris climate
agreement to achieve a 36% reduction in emissions intensity from 2005
levels by 2030, and to stabilize its emissions with the aim of peaking
around the same time. Toward achieving this target, Singapore has set in
place, a target to install 350 MW of solar PV capacity by 2020, and to
reach 1 GW of installed capacity “beyond 2020.” Before discussing the
strategy and challenges to large-scale growth of solar PV in Singapore,
the following section provides a brief introduction to Singapore’s electricity sector, its liberalized electricity market, and the electricity pricing
framework.
Singapore’s Electricity Sector
In 2017, Singapore’s annual electricity consumption was approximately
49.5 GWh, with a peak demand of about 7.2 GW. Electricity demand
has risen with a compound annual growth rate of 2.8% since 2005 (35.5
GWh), largely driven by consumption from industry, which comprises of
about 40–42% of total electricity consumption, followed by the commerce
& services sector, and households, which constitute the remaining 37
and 15%, respectively (Energy Market Authority 2018a). A study by the
electricity market regular estimates that over the next ten years, electricity demand will grow at a compound annual growth rate of 1.3–1.9%,
depending on factors such as population growth, temperature changes,
and GDP growth rates among others. By 2028, Singapore’s peak demand
is expected to range between 8400 and 8980 MW and annual electricity
demand could grow to 64.6 GWh (Energy Market Authority 2017a).