2. The Changing Energy Landscape Economic Competitiveness Energy Security Environment / Climate Change New Opportunities

3. Re-Emergence of Energy Security Strong demand Increasing cost of production Political risk Narrowing of supply- demand gap Energy Investments

4. Energy Security in Singapore Singapores Crude Oil Imports (2006) Source: IE Singapore Singapores Electricity Fuel Mix (1H2007) Source: EMA

5. No Silver Bullet Strong growth in renewable energy, but contributions still small Nuclear Fossil fuels will still contribute around 80% of global energy supply Improve efficiency Clean use of fossil fuels Carbon sinks Global Primary Energy Supply Source: International Energy Agency MTOE 2004- 2030 CAGR 1.8% 6.6% 1.3% 2.0% 0.7% 2.0% 1.3%

6. Establishment of Energy Policy Group Energy Policy Group Economic Competitiveness (MTI) Energy Security (MFA) Environment / Climate Change (MEWR) Industry Development (EDB)

7. National Energy Policy Framework: Energy for Growth Economic Competitiveness EnergySecurity Environmental Sustainability STRONG AND SUSTAINED ECONOMIC GROWTH Manage Trade-Offs Exploit Convergence

8. Energy Policy Group: Six Key Strategies 4. Develop Energy Industry and Invest in Energy R&D 3. Improve Energy Efficiency 2. Diversify Energy Supplies 5. Step up International Cooperation 1. Promote Competitive Markets 6. Develop Whole-of-Government Approach

9. Vibrant and competitive electricity and gas markets Strategy 1: Promote Competitive Markets Competitive markets to help keep energy affordable Electricity Vending System to enable full retail contestability Encourage the market to innovate Correct for market failures Electricity Vending System

10. Strategy 2: Diversify Energy Supplies Energy diversification to protect against supply disruptions and price increases Avoid becoming overly dependent on any energy supplier In competitive markets, companies have incentives to diversify Governments role is to create an open and flexible framework that allows diversification But specific policies may still be necessary at times when market does not provide for sufficient diversity Import of LNG by 2012

11. Facilitating Introduction of New Energy Technologies Research and development A*STARs Energy Technology R&D Programme SINERGY Centre National Research Foundation $170m Test-bedding and demonstration $17 m Clean Energy R&D and Testbedding Programme (CERT) $5 m Market Development Fund Reducing costs and facilitating grid connection Reduce cost of plugging into grid and participating in the electricity market Publication of Handbook for Photovoltaic Systems

12. Keep Our Energy Options OpenCoal Cost competitive Pollution controls CO2 emissions Ash disposal Hydroelectric, geothermal & wind Cost competitive and clean But not available or viable in Singapore Solar Clean, plenty of sun in Spore But high cost and intermittent supply are key constraints Biomass & waste-to-energy Cost competitive and clean Limited potential Nuclear power Stringent site requirements Need for long term solution for disposal of nuclear waste

13. Strategy 3: Improve Energy Efficiency Using energy more efficiently can reduce our dependence on imports and enhance our security Also reduces carbon intensity, air pollution and business costs Establishment of Energy Efficiency Programme Office, led by NEA Development of comprehensive national energy efficiency plan Sectoral approach – power generation, industry, transport, buildings and household sectors Intelligent Lighting Tri-generation System Smart Meters

14. MARKETS Transport Power Industry Building Deliver Energy Solutions Fossil Energy Non Fossil Energy Oil Gas Coal SolarFuel Cells Biomass WindOthers Strong technology foundation SECURITY CLIMATE CHANGE URBAN- ISATION ECON GROWTH Integrate Grid Management Test & Integration Trade (fuels, carbon) Energy Services DRIVERS Strategy 4: Build Energy Industry and Invest in Energy R&D

15. Solar OilBiomassH 2 /Fuel Cells Widen our Lead in Oil and Develop New Verticals Gas

16. New R&D Programmes EDBs Clean Energy Research & Test-bedding Programme A*STARs SINERGY Centre A*STARs Energy Technology R&D Programme NRFs Clean Energy Programme

17. Strategy 5: Step up International Cooperation Promote regional and international energy cooperation to further our energy interests Promote security of vital energy sea lanes in the region Promote Singapore as a centre of energy research and excellence

18. Strategy 6: Develop Whole-of-Government Approach to Energy Policy Energy Policy Group Economic Competitiveness (MTI) Energy Security (MFA) Environment / Climate Change (MEWR) Industry Development (EDB) MTI Energy Division Clean Energy Programme Office Energy Efficiency Programme Office

19. Thank You