Excellencies and Distinguished Guests,

Ladies and Gentlemen,

1. The global energy landscape has become significantly more challenging this year. The closure of the Strait of Hormuz continues to disrupt global energy flows, and the situation may escalate further following the recent Houthi attacks on Saudi Arabia’s airport and energy infrastructure. All this comes just four years after the 2022 energy crisis.

2. Why do these crises matter? Because energy is an existential priority. Our economic growth and quality of life depend on continued access to reliable and affordable energy. Difficult though it is for a small city state, Singapore must also play our part in the global effort towards decarbonisation.

3. Singaporeans know our Water Story well. Over the years, we have transformed our water landscape into a source of strength. We must now undertake a similar transformation on energy.

4. This is why, at the start of this month, the Government took the significant step of renaming the Ministry of Trade and Industry, MTI, as the Ministry of Energy, Trade and Industry, or METI. This was the first time the Ministry was renamed since its creation in 1979, almost 50 years ago.

5. The inclusion of Energy in METI’s name reflects how we are raising our ambitions for the next phase of the energy transition.

6. Our approach will be anchored in five ‘Cs’: Confidence, Competitiveness, Carbon, Connectivity, and Cost. We must ensure our system resilience continues to be a source of confidence, harness energy to bolster our competitiveness, pursue low-carbon energy pathways, and deepen connectivity with our partners. All of this must happen contemporaneously while keeping costs in check. Let me elaborate on each pillar.

Confidence

7. First, because energy is existential, we must ensure that our system resilience continues to be a source of confidence for our people.

8. The crisis in the Strait of Hormuz will not be the last of its kind. Singapore will not be able to insulate ourselves from global or regional shocks. When there is a supply crunch, countries may also prioritise their own domestic needs. This trend of resource nationalism is particularly concerning, especially if it undermines established contractual agreements. Such moves will increase business risks and deter investments in the energy sector, with negative long-term implications. For energy importers like Singapore, we will have to take into account the increased risks of such supply disruptions. This is why we have established multiple lines of defence to give ourselves the ability to mitigate the impact of disruptions and ensure adequate energy supplies across a wide range of scenarios.

9. First, we have diverse sources of gas. When Singapore first started importing gas, all our gas was piped from neighbouring countries. Today, about half of our gas is imported as LNG from a global diversified portfolio of sources, such as the US, the Middle East and Australia. We will also expand our LNG throughput capacity by 50%, once the second LNG terminal comes online by 2030. This allows us to continue importing more gas from all over the world.

10. Singapore GasCo will help Singapore procure gas for the power sector. GasCo was formed last year. We have a capable and experienced team, led by Mr Alan Heng, that is ready to deal with gas supply contingencies. Earlier this year, when shipments from Qatar were disrupted, the GasCo team swung into action very quickly to secure replacement gas.

11. We continue to plan for our future gas needs. In August 2026, GasCo launched its first-ever request for proposal to procure gas for Singapore’s longer-term needs post-2028. GasCo is on track to award its first contracts by 2027. We have made it very clear to GasCo that reliability of supply must be a key criterion in its assessment of suppliers.

12. Second, the Government has established fuel reserves comprising a mixture of gas and diesel. The Energy Market Authority (EMA) requires that our electricity-generating turbines be able to run on either gas or diesel. Our power plants can thus draw from our reserves when there is a severe disruption to gas supplies.

13. Third, we build strong and mutually beneficial partnerships with countries and industry, including those from beyond our region. Last week, during PM’s visit to the Middle East, Singapore renewed an MOU on Cooperation in LNG and Low-Carbon Technology with QatarEnergy and signed an MOU on a Joint Energy Taskforce with the Abu Dhabi National Oil Company.

14. Today, Saudi Arabia and Singapore are announcing our joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027. This arrangement enhances the resilience of the Saudi crude oil supply chain in Southeast Asia, as well as contributes to Singapore's energy security and resilience in the event of supply disruptions. Saudi Aramco will sign an MOU with EMA and JTC later today, and we aim to conclude negotiations in a few months’ time. Similarly, GasCo has also signed an MOU with PTT in Thailand to explore cooperation in areas such as LNG supply optimisation. We are continually on the lookout for collaborations to strengthen supply chain resilience.

15. Our preparations have allowed us to mitigate the worst of this crisis. While prices have risen this year, there have been no fuel shortages or power outages. But supply chains can always be disrupted by the unexpected turns of events.

16. As you would have read over the weekend, Indonesian gas suppliers have reduced their piped gas exports to Singapore. The reduction is less than 2% of our total daily gas demand. We have dealt with similar disruptions in the past without incident, because of all the measures we have invested in and build up over many years.

17. So, for Singapore, we can keep calm and carry on. Our households and businesses can be assured that our energy security is always at the top of our minds. We will continue to maintain and expand our options, strengthen our partnerships around the world, and build even greater resilience. We cannot predict every disruption, but we will always ensure that Singapore is prepared for them. As the Chinese saying goes, ‘未雨绸缪，方能处变不惊’. This means by preparing well ahead of time, we can face any change in circumstances with calm and confidence. This is METI and EMA’s mission and our commitment to our people, businesses and stakeholders.

Competitiveness

18. Second, we must harness energy to bolster our economic competitiveness.

19. Singapore’s electricity demand is projected to rise rapidly over the next decade as our economy grows. We are also attracting more electricity-intensive investments, such as semiconductor companies and data centres. Our ability to scale our generation and grid capacity to meet these needs will be increasingly important. Simply put, the fastest megawatt will be the winning megawatt.

20. Today, EMA will release a Five-Year Energy Infrastructure Plan, which will showcase how we are expanding our power system to meet new electricity demand. This will be the most significant build-up of our energy infrastructure in decades.

21. Five new power plants will come online between 2026 and 2031, which will grow our overall generation capacity by 26% from around 12 GW today. EMA is currently evaluating proposals for further generation capacity to come online in 2032 and beyond.

22. We are prepared to facilitate the entry of more new power plants if needed, to support new economic investments. Where necessary, the Government is prepared to step in to ensure that sufficient capacity is available.

23. We are also actively expanding the grid, which is the backbone of our power system. To support growing industrial demand in areas like Changi, Pasir Ris and Paya Lebar, 7 new substations will be built by 2031, stepping up from the 4 built over the past 5 years.

24. We are laying more underground power cables, the expressways that bring electricity from power plants in the southwest and north to homes and businesses islandwide. Today, we have about 7,700 km of underground transmission cables. By 2030, we will grow this network by 18% to approximately 9,100km. This is more than 35 times the length of our entire MRT network.

25. EMA will coordinate this build-up with wider infrastructure developments across Singapore to minimise disruption to residents, commuters, and businesses.

26. But our planning does not stop at the next five years. We will continue to plan many years ahead.

27. EMA recently announced plans to study the feasibility of developing an energy infrastructure cluster on Pulau Tekong, which could include a third LNG terminal, hydrogen-compatible natural gas power plants, and facilities for importing electricity. This will help us to strengthen our energy security and support our green energy transition.

28. Our power system will also get more complex as we integrate more diverse and variable energy sources. The grid must be able to handle greater variability in both electricity supply and demand.

29. This is why Energy Storage Systems – or ESS – will play a critical role in supporting Singapore's future power system.

30. ESS, such as batteries, can discharge electricity within a response time of a few seconds. These assets can perform multiple functions. For example, solar output can vary throughout the day due to weather conditions. ESS helps to maintain balance in the power system by storing excess electricity during periods of high solar generation and releasing the stored energy when solar output is lower or when the system is under stress. ESS can also support grid stability by providing fast-response backup that can be activated within seconds when there is an unexpected power outage.

31. Today, I am pleased to launch our industry consultation paper for a National ESS Vision. The paper seeks views on how we can unlock the full potential of ESS and maximise the value of each storage asset in land-scarce Singapore. Today, we have about 350 MWh of ESS. We hope to triple this and achieve just over 1 GWh of ESS by 2030. We will work closely with industry players, researchers and other stakeholders to realise this goal.

Carbon

32. Third, we must pursue every possible low-carbon energy pathway – especially indigenous sources that contribute to our resilience – to lay the foundations for a future 2050 low-carbon energy mix. This is no mean feat for a small, alternative-energy-disadvantaged island-state such as Singapore.

33. Solar remains Singapore's most viable indigenous renewable energy source. We are on track to reach the target of 3 gigawatt-peak of solar deployment by 2030, which we announced earlier this year. We are now pushing ourselves to expand deployment to 4 gigawatt-peak by 2035. Minister of State Gan Siow Huang will share more tomorrow.

Decarbonisation Technologies

34. We are also investing in newer technologies that increase the efficiency of solar panels, which will help maximise our domestic solar potential as a land-constrained country.

35. I am pleased to share that we are working with EDP APAC and GCL Perovskite on a proposed pilot of next-generation solar panels in Singapore.This will be the first project that we intend to take forward under our new Singapore Pilots for Energy and Enterprise Decarbonisation programme, or SPEED. The project will demonstrate progressively higher-efficiency tandem perovskite-silicon panels under Singapore’s tropical conditions, with the aim of eventually generating more solar energy using the same amount of space in the 2030s.

36. This is just one example of how we are investing in the broader technology and innovation ecosystem to advance the next generation of low-carbon technologies.

37. We have made this a clear priority through the $800 million Decarbonisation Grand Challenge, which will establish a robust pipeline of research, development, and demonstration projects.

38. Today, I am pleased to announce the launch of the Power Decarbonisation Funding Initiative, with $75 million to develop low-carbon technologies for cleaner and more secure power generation. This is the third major Funding Initiative launched under the Decarbonisation Grand Challenge, coming soon after the Industry Decarbonisation Funding Initiative which DPM announced last week. Together, these initiatives will help fund research in promising technologies that enable the decarbonisation of our power and industry sectors.

39. While these are important near-term steps, they will not deliver our energy transition on their own. Many of these new technologies are intermittent and difficult to scale. For example, even with a bigger push, solar can meet no more than 10% of our projected electricity demand in 2050.

40. Ultimately, we need sources of low-carbon energy that can meet baseload demand at utility-scale.

41. One option is to use hydrogen, and we have taken some steps in this direction. We continue to study the possibility of piloting ammonia direct combustion in Jurong Island, and our upcoming Combined Cycle Gas Turbines will be able to take in a blend of natural gas and hydrogen.

42. But there are fundamental constraints in scaling up hydrogen. Slower than expected global market development has kept costs high. Furthermore, when used for energy generation, hydrogen suffers from an energy penalty at every step of production, transportation, and combustion. Technology can reduce this penalty, but cannot completely eliminate it.

43. That is why we are also seriously studying two other promising pathways.

Nuclear

44. First, nuclear energy.

45. We have been progressively building our capabilities to make an informed decision on the potential deployment of nuclear energy in Singapore.

46. Next year, we will undertake the International Atomic Energy Agency (IAEA) Integrated Nuclear Infrastructure Review (INIR) Mission to independently assess our capabilities across key areas such as nuclear safety, radioactive waste management, and emergency planning. Should Singapore eventually decide to adopt nuclear power, the Government is committed to upholding the highest standards of nuclear safety, security, and safeguards in full accordance with our international obligations.

47. Even as we prepare for the Review Mission, we are doubling down on building a pool of nuclear experts and professionals within Singapore. We will do this in three ways.

48. First, I am pleased to announce a new Nuclear Manpower Development Programme for the public sector. This programme will facilitate on-the-job exposure for Singaporean public officers at leading global nuclear organisations, to help them strengthen their nuclear-related skills and competencies.

49. Second, we will support our broader ecosystem via the new Nuclear Manpower Development Programme (Industry). With growing interest in nuclear energy globally, the nuclear industry could bring significant opportunities and new career pathways both domestically and internationally. This programme will support opportunities for professionals in selected Singapore-based companies to gain hands-on experience with trusted international partners.

50. Third, to grow our pipeline of local talent, NUS and NTU are working towards launching a joint Master’s programme in nuclear engineering in 2027.

51. Even if Singapore eventually decides not to deploy nuclear energy, the capabilities and expertise we are developing today will continue to serve us well, particularly as interest in nuclear energy grows across Southeast Asia and around the world. To support dialogue among key stakeholders, Singapore will host the inaugural International Atomic Energy Agency (IAEA)@SIEW Forum tomorrow, which will examine how ASEAN and the wider region can safely and responsibly harness the potential of nuclear energy.

Geothermal

52. Second, geothermal energy.

53. Last year, I shared that Singapore launched a non-invasive geophysical survey by a consortium of world-leading consultants, to assess our geothermal potential for power generation.

54. The consortium has delivered their preliminary results. They estimated that the technical potential of geothermal energy for power generation is more than sixty times our annual electricity consumption of around 60 terawatt-hours (TWh).

This is a very good start.

55. Given these positive preliminary findings, EMA will appoint a team of experts to study the feasibility of deploying next-generation geothermal power plants in Singapore. This will not be straightforward. For instance, as our geothermal resources are located several kilometres underground, the amount of electricity we can eventually generate will depend on the cost and technical feasibility of extracting these resources, as well as the pace of advances in deep drilling technology. Our dense urban environment will also affect how many geothermal power plants we can feasibly deploy. Most importantly, we must keep safety as a top-of-mind consideration.

56. We are at the start of our journey, and have not yet made a decision on whether to deploy geothermal in Singapore. It could take many years before we get to that decision point. Nevertheless, we will explore this option seriously.

Connectivity

57. Fourth, we must look beyond our borders and deepen connectivity with our partners.

58. A connected regional grid, with countries trading electricity and sharing reserve capacities, would lend considerable momentum to the energy transition not only for Singapore, but also our neighbouring countries.

59. We are thus committed to facilitating the progress of our low-carbon electricity import projects. Later today, EMA will award a Conditional Approval to Sembcorp Utilities to import up to 1.3GW of renewable electricity from and through Peninsular Malaysia to Singapore. With its consortium partners, Petronas, Tenaga Nasional Berhad, Gentari, and PetroVietnam Technical Services Corporation, Sembcorp intends to source low-carbon electricity imports from multiple sources, including offshore wind from Vietnam and solar power from Malaysia.

60. This expands the range of options and potential pathways for Singapore to import low-carbon electricity from Malaysia. It builds on the progress made in August this year, when EMA granted Conditional Approvals to two projects to import a total of 900MW of low-carbon electricity from Johor.

61. In parallel, we are working to put in place the necessary infrastructure and regulatory frameworks to facilitate electricity imports.

62. We have made significant progress on the infrastructure front. Last October, Singapore Energy Interconnections, SP PowerAssets, and Tenaga Nasional Berhad signed a Joint Development Agreement to conduct detailed technical and commercial studies for a new subsea interconnector between Singapore and Peninsular Malaysia.

63. I am pleased to share that we have reached an important milestone in this project, with marine subsea surveys along the proposed subsea interconnector route commencing this month. This marks a concrete step forward in adding up to 2GW of new interconnection capacity between Singapore and Peninsular Malaysia by 2030, which will complement the 1 GW of capacity via our existing interconnector.

64. On regulatory frameworks, we are working to ensure that corporate offtakers can credibly use the Renewable Energy Certificates – or RECs – associated with cross-border electricity trade to support their sustainability reporting. To this end, EMA and Malaysia’s Energy Commission have established a joint working group to harmonise our approaches to tracking and accounting for cross-border RECs.

65. Even as we make progress on these fronts, it does not mean that we are pursuing imports at all costs. Import projects will ultimately need to offer a viable and competitive price relative to other decarbonisation pathways, including the use of offsetting international carbon credits. We will therefore continue to calibrate our imports ambition according to the pace of regional collaboration and market conditions.

Cost

66. As we pursue the 4 ‘Cs’ of Confidence, Competitiveness, Carbon, and Connectivity, there is a vital fifth ‘C’ that we must always keep top of mind: keeping costs in check.

67. Achieving our goals will not be cheap. It will certainly not be free. It will require trade-offs and significant investments.

68. We must thus strike the right balance. Decarbonisation will come with costs, but we will not pursue decarbonisation at all costs. It must never come at the expense of our livelihoods and system security. We will ensure that our market frameworks support a competitive and commercially sustainable power sector, and that our households and businesses do not face an undue burden.

69. We will continue to provide targeted support, including U-Save rebates to help households manage utility bills, as well as grants to help businesses improve energy efficiency and reduce costs, such as the Energy Efficiency Grant and Resource Efficiency Grant for Emissions.

Conclusion

70. Many of today’s announcements are new, but their foundations have been built steadily over many years.

71. Our task now is to build on these foundations with the same resolve with which we wrote Singapore’s water story.

Together, we can write the next chapter of Singapore’s energy story and secure reliable, resilient, and low-carbon energy for generations to come.

72. Thank you very much.