Moving from a system powered almost entirely by natural gas to one powered by clean energy would entail significant effort and costs, said DPM Lawrence Wong.
In a bold move to accelerate Singapore’s clean energy transition, the government announced the establishment of a Future Energy Fund, earmarked with an initial $5 billion funding. Unveiled by Deputy Prime Minister and Finance Minister Lawrence Wong during the Budget 2024 speech, this ambitious initiative underscores Singapore’s commitment to embracing low-carbon electricity sources, including solar, wind, and hydropower.
RELEVANT SUSTAINABLE GOALS
Transitioning to Clean Energy
The transition away from a natural gas-dominated energy system to one that prioritizes clean energy is a monumental task. It necessitates the development of critical infrastructure such as submarine cables to import low-carbon electricity and upgrades to the existing power grid. Moreover, the exploration of hydrogen as a potential energy source may require further infrastructure for its generation, storage, and delivery.
“This transition is massive,” DPM Wong emphasized, acknowledging the substantial effort and costs involved. “We need to accomplish this within the next two decades, which, given the scale of the endeavor, isn’t a lot of time.”
Highlighting the financial challenges of such large-scale investments, Wong pointed out that the private sector alone could not bear the cost. Government intervention, in the form of catalytic funding, is essential to spur these initiatives. The Future Energy Fund is set to provide the necessary financial backbone to expedite investments in critical infrastructure, enhancing Singapore’s energy security and positioning the nation at the forefront of the clean energy revolution.
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