Opening Remarks by Energy Market Authority Chief Executive Lawrence Wong at the Solar Awards Ceremony

Distinguished Guests

Ladies and Gentlemen

1. I am very pleased to join you at this year’s Solar Awards Ceremony event

a) Congratulate the recipients of this year’s award
2. All of us are familiar with the intertwined challenges of energy and climate change

a) Countries all over the world are seeking solutions to balance between energy growth, economic competitiveness and energy sustainability

b) There are multiple pathways to help meet these challenges

c) One strategy is to shift towards clean and renewable energy like solar power with a smaller carbon footprint

3. Solar is one of the more promising sources of clean energy

a) Solar energy has come a long way

b) Solar PV was once a curiosity used for space exploration

c) Today solar electricity is going mainstream, with more than 20 GW of solar PV installed worldwide

4. We are all excited about the potential to decarbonise our fuel mix with solar and other renewable energy

a) But we also have to be realistic about the prospects in Singapore

b) For we face inherent constraints in the deployment of renewable energy

5. One major constraint is in land, especially given our small geographical size

a) Renewable energy sources are low in power density, which means that you need large amounts of land to generate meaningful amounts of power

b) For example, solar PV power requires about 20~30 times as much land as a gas plant to produce comparable amount of power

c) Preliminary analysis – even if we were to cover all the accessible space in Singapore with solar panels, we do not expect it to contribute more than 10 per cent of our electricity consumption

d) Realistically, solar lacks the scale to replace more than a small proportion of fossil fuel use

6. Nevertheless, within the limits of these constraints, we see the potential for more solar energy to be deployed in Singapore

a) At present there are 3 MWp of solar installations in Singapore

b) Grid can easily accommodate more solar power – up to 350 MWp
i. Beyond this threshold, intermittency becomes a problem
ii. Hence additional measures (and cost) will be required to maintain system grid stability

c) So far, the take-up of solar power has been slow
i. Main reason is due to cost
ii. Solar power is still around 2 times more expensive than electricity generated from the grid
iii. But the costs of solar PVs have been declining steadily over the years, and this trend is likely to continue

Falling silicon prices and advances in wafering have contributed to lower module costs Cost savings from economies of scale and efficiency improvements in the balance of plant Conversion efficiency of solar modules (percentage of sunlight striking the solar device that is converted into electric current) is also improving:
1. Efficiency rate has increased by a few percentage points per year to around 15~19 per cent
2. Continued improvements expected

iv. In the solar business, a key reference point for players is when grid parity will be achieved – that is when the cost of solar energy is as competitive as grid-supplied electricity (with a shadow carbon price)

• Falling silicon prices and advances in wafering have contributed to lower module costs

• Cost savings from economies of scale and efficiency improvements in the balance of plant

• Conversion efficiency of solar modules (percentage of sunlight striking the solar device that is converted into electric current) is also improving:

iv. In the solar business, a key reference point for players is when grid parity will be achieved – that is when the cost of solar energy is as competitive as grid-supplied electricity (with a shadow carbon price)

• When grid parity is achieved will vary from country to country, depending on the amount of sunshine and the grid electricity price

• No prediction of when this will happen in Singapore

• But overall trends are positive

• If they continue in the right direction, then should be a matter of time before grid parity is reached

7. To enable Singapore to scale up quickly when solar becomes a cost-effective option, the Clean Energy Programme Office (CEPO), co-chaired by the Economic Development Board and the Energy Market Authority, has rolled out various initiatives to build critical capabilities and catalyse research innovation in this field

a) Solar Capability Scheme (SCS) – encourages innovative design and integration of solar technologies into energy efficient buildings

b) HDB also undertaking a large-scale solar test-bed in 30 precincts

c) Such projects help to deepen our understanding of solar energy, in terms of both technology and economics, so as to better inform policy-making and concurrently develop capabilities in our industry.

8. Another key project is the establishment of a National Solar Repository of Singapore by the Solar Energy Research Institute of Singapore (SERIS), which Professor Luther has just launched today

a) The solar repository will capture relevant information and performance data of solar photovoltaic systems all over Singapore

b) Help share best practices and know-how in system installation and integration in the Singapore environment

c) Also allow us to better assess the impact of intermittent solar power on the stability of the grid, and put in place measures to strengthen the overall reliability of the grid in future

9. Through these initiatives, we hope to develop Singapore as a thought leader and centre for solar technologies in the tropics and in urban settings

a) Singapore has the competitive advantage to excel in this area

b) Grow a vibrant clean energy industry not just to meet our own energy needs, but also to serve the region and beyond

10. To succeed in this endeavour, we need the private sector to continually generate new ideas to push the technology boundary, as well as to leverage on the various programmes that are in place

a) Your innovative projects in solar energy are a critical part of this overall effort

b) I wish you every success in your solar projects

c) Look forward to working with you and other stakeholders to realise our vision of making Singapore a Smart Energy economy.

Source: Economic Development Board