Singapore: How to Attract More Investment in Renewable Energy?

Abstract

Singapore has limited renewable energy potential due to its small surface area and the limited space available. Solar power has the greatest potential. Given the country’s limited spare land, rooftops and vertical spaces on high-rise buildings are of particular importance. Singapore set a target of producing solar energy to cover 350,000 households in 2030 that would be equivalent to 4% of the country’s current electricity demand. In 2019, solar energy accounted for less than 1% of Singapore’s total energy mix. We propose four actions to improve the investment climate for renewable energy in Singapore: develop incentive and regulatory support mechanism; consolidate solar energy governance; mobilise equity investors and lenders; specialise in the long-distance trade of renewable energy, especially in the form of hydrogen.