Singapore is set to establish the Future Energy Fund by the end of 2024, a strategic initiative aimed at supporting the country’s shift toward a sustainable and low-carbon energy future. With power generation currently responsible for about 40% of the nation’s emissions and 95% of electricity derived from natural gas, the urgency for a transition is clear. The fund is designed to facilitate this shift by financing infrastructure projects utilising low-carbon alternatives such as hydrogen and domestic electricity imports from regional sources. This move is part of Singapore’s broader effort to decarbonize its power sector in response to the global energy transition from fossil fuels.
The establishment of the Future Energy Fund is particularly critical for Singapore, a nation with limited domestic renewable energy resources. The fund will help mitigate the inherent challenges of adopting nascent energy technologies that often require substantial initial capital and are subject to significant commercial and geopolitical risks. By setting aside resources to support such ventures, the government aims to catalyze projects that secure low-carbon energy supplies essential for meeting the country’s decarbonization goals. This proactive approach ensures that Singapore can continue to progress towards achieving net-zero emissions while maintaining its economic competitiveness and energy security.
Potential projects likely to receive backing from the Future Energy Fund include the development of undersea cables for importing low-carbon electricity and the construction of new hydrogen terminals and pipelines. These infrastructures are vital for reducing the reliance on conventional fossil fuels and transitioning to more sustainable energy sources. As Singapore moves forward with these initiatives, the Future Energy Fund will play a crucial role in shaping the country’s energy landscape, making it an attractive destination for investments in green technology and sustainable practices, aligning with global efforts towards environmental sustainability and economic resilience.
(Source: Energy Market Authority)
