Solar energy seen to power S'pore growth

Solar energy seen to power S'pore growth

A key requirement is skilled manpower, says Tony Tan

By Matthew Phan
April 21, 2007
The Business Times

THE solar and clean energy sector could contribute a significant part to Singapore's economy within the next five to 10 years if policies work as planned, said National Research Foundation (NRF) chairman Tony Tan yesterday, at the end of a whirlwind tour of several research institutes in Europe.

Having seen the state of technology in Germany and Switzerland, Dr Tan said he wished Singapore had started down this path a few years ago, but emphasised that the country can organise itself rapidly and that he was optimistic of success.

Questions of environmental sustainability will come to the forefront in coming years, said Dr Tan. 'There has been a lot of talk in the last 10-20 years; the major difference now is that it has moved from the periphery to the centre. It is becoming a central concern to all societies, all countries, and even to companies.'

But with several countries galvanising efforts in clean energy - even China has started to manufacture and export solar panels to Germany - can Singapore leapfrog to the leading edge?

The competitive landscape is actually still open, said Kenneth Tan, executive director of the Economic Development Board's (EDB) new business group.

Unlike with electronics, where major players dominate the market, clean energy is still a fragmented, emerging industry; while there are big players, there is opportunity for Singaporean firms to jostle in, he said.

A key requirement is skilled manpower at both the high-end research and lower-end technician levels, said Dr Tan, who noted that China still has to send panels to Germany for testing.

The NRF will decide whether to establish a centre for solar energy research, akin to Germany's Fraunhofer Institute, one of the world's largest of the kind, he said.

'Unless we take a major step like that, it will be difficult for EDB,' he said. 'We need to have research workers to make companies like SolarWorld believe they should look at Singapore.'

Further, the global solar sector is approaching a breakthrough in terms of bringing costs down to current grid electricity prices, a situation similar to that seen in water, where the cost of treated water was lowered to that obtained from lakes and rivers.

When cost-parity is achieved - which many European experts say could happen within five years - market demand will take off.

'Without a research foundation, we cannot take advantage of this. We need to prepare as early as possible,' Dr Tan said.

Other measures will include test-bedding initiatives and market incentives to allow solar energy to compete with grid electricity, said Mr Tan of the EDB.

Asked about potential risks, Dr Tan turned the question around, pointing out the risk of not diversifying Singapore's energy sources. 'We will be depending on oil and gas.'

Singapore, which gets four-fifths of its power from gas and the remainder largely from fuel oil, is a price taker for energy, said Lim Chee Hwee, director of resources at the Ministry of Trade and Industry (MTI).

Solar holds more promise than wind or tidal energy, he said. Other sources noted the potential instability of biofuel supplies.

Dr Tan said he appreciated the detail with which German and Swiss scientists addressed questions from his high-level Singaporean delegation, which included officials from MTI and the Ministry of Water and Environ mental Resources.

'It's also a sign they take us seriously,' he said.