MR NG Weng Hoong's commentary, 'S'pore needs to rethink energy policy' (ST, Aug 26), suggested a switch to alternative energy, or reducing or at least maintaining our energy demand in order to reduce Singapore's reliance on fossil fuels for our energy supply.

There is consensus that fossil fuels - oil, natural gas and coal - will continue to be the dominant fuels that will meet the bulk of the world's energy needs.

They are more economical than many alternative energy sources, and there are adequate reserves to meet global energy demand for at least the next 40 years (longer for coal).

The US Energy Information Administration has projected that fossil fuels will still account for some 86 per cent of total world energy demand in 2030.

Although renewable energy sources are becoming more economically competitive, their share of total demand is projected to increase by only one percentage point to 9 per cent in 2030.

In Singapore, about 80 per cent of our electricity today is generated from natural gas. This is the cleanest and most energy-efficient option, compared to oil or coal.

We have limited renewable alternatives. Due to our geography, we are unable to tap geothermal or hydro sources. Our wind speed and tidal differences are also not high enough for significant electricity generation.

Electricity from photovoltaic technology still costs more than three times the average Singapore electricity pool price.

Besides, even if we covered most of the available rooftop space in Singapore with solar panels, we would be able to meet only about 3-4 per cent of Singapore's annual electricity consumption, using today's solar technology.

To meet the energy needs of a growing population and economy, we thus have little choice but to import more natural gas. The building of an LNG terminal will allow us to diversify our sources of gas supply and improve energy security.

At the same time, the Energy Market Authority will ensure that our electricity market stays open to alternative technologies as they arise and become viable for Singapore.

We agree with Mr Ng that we should look actively into energy conservation so that we keep demand growth down.

The Building and Construction Authority encourages the construction of energy-efficient buildings, by requiring air-conditioned buildings to comply with the Envelope Thermal Transfer Value. It also awards the Green Mark label to buildings which use energy and water efficiently.

The National Environment Agency has partnered the Singapore Environment Council to launch an Energy Labelling Scheme to educate consumers on efficient air-conditioners and refrigerators.

In addition, the Energy Efficiency Improvement Assistance Scheme helps companies to engage specialists to study their energy consumption and recommend measures to save energy.

Also, domestic consumers are alerted through their utility bills if their electricity consumption exceeds the national average.

Through such programmes, we hope that Singapore households and companies will do more to conserve energy.

Choo Wai Chan (Mrs)
Director
Corporate Communications
Energy Market Authority