Insight

Singapore plays a prominent role in the global energy trade - it is one of the world’s largest oil refining centres and its third-largest oil trading exchange behind London & New York. It is also fast becoming a major hub for natural gas.

Singapore’s economic planners are now keen on developing the nation into a global clean energy hub as well.

The clean energy industry covers a wide variety of alternative energy technologies including solar power, wind power, fuel cells, and alternative fuels. It also covers activities such as energy efficiency management and carbon emissions trading.

Government initiatives

The Singapore government has officially committed $350 million to develop the clean energy sector here. This funding will be used to seed R&D, test-bedding and pilot projects to help kick start the sector.

A Clean Energy Programme Office (CEPO) has been set up to coordinate the various government agencies involved in the clean energy thrust, including the Economic Development Board, the National Environment Agency, the Agency for Science, Technology & Research and the Building & Construction Authority.

The goal is to create an ecosystem which will generate $1.7 billion in value-added and 7,000 jobs by 2015.

Key developments

While it’s still early days yet, Singapore’s foray into this emerging sector has already attracted the attentions of a number of the industry’s leading players.

Singapore has been chosen as a base for an energy exchange that seeks to match investors with developers seeking funds for alternative energy projects across Asia. The Renewable Energy Exchange (Asia), set up in collaboration with the Renewable Energy and Energy Efficiency Partnership (REEEP) - an Australian NGO, has already worked on funding several projects ranging from biodiesel plants to hydroelectric plants in SE Asia.

SolarWorld Group, a major player in the solar power industry, recently established its regional headquarters in Singapore. The company intends to provide a wide variety of solar products, systems expertise and solutions for grid-connected and off-grid applications for the entire Asia-Pacific region. The Singapore-based SolarWorld Asia Pacific operations will provide strategic business planning, general management, technical support and sales & marketing coordination for this thrust into the region.

Vestas, the world’s leading wind turbine manufacturer, has set up its Asia-Pacific headquarters in Singapore. The company has also committed to invest $500 million to establish a 150-strong R&D centre here. The centre’s primary aim will be to build up a highly skilled talent pool in wind technology to support Vestas’ large and growing installed base of wind turbines in wind farms across the Asia-Pacific region.

Outlook

The global Clean Energy industry is experiencing robust growth due to rising energy demand and climate change concerns. While the local alternative energy sector is still in its embryonic stages, Singapore has already attracted a number of pioneering investments from leading players in the areas of solar energy, wind power, fuel cells and biofuels.

Clean energy companies will find that the strong manufacturing base, extensive supplier & financial networks, vigorous intellectual property protection regime and established infrastructure & connectivity will make Singapore an ideal location for activities ranging from technology development & test-bedding to manufacturing & headquarters operations.

The future certainly looks bright for those keen on developing careers in the nascent alternative energy space in Singapore