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4.8. Singapore introduced a carbon tax on greenhouse gas (GHG) emissions through the Carbon Pricing Act that came into force on 1 January 2019. The carbon tax forms part of Singapore's comprehensive suite of mitigation measures to reduce emissions; the tax rate is currently set at SGD 5 per tonne of carbon-dioxide equivalent (tCO2e) from 2019 to 2023. The tax is applied uniformly to emissions from all sectors, including those from the manufacturing, power generation, and water and waste management sectors, with direct reckonable GHG emissions of 25,000 tCO2e or more annually. This covers around 80% of national emissions.

4.9. The carbon tax level and trajectory (post-2023) will be reviewed by 2022. To support companies during the transition, the Government is prepared to spend more than the expected carbon tax revenue of about SGD 1 billion in the first five years to help companies, including small and medium-sized enterprises (SMEs) and power-generation companies (gencos), improve their energy and carbon efficiency by adopting greener and cleaner technologies and practices. In addition to making changes in the energy sector, Singapore has taken action across the economy, such as switching to cleaner-energy vehicles and improving energy efficiency in buildings. To encourage energy efficiency in the industrial sector, the Energy Conservation Act was revised in 2017 to stipulate more energy management practices, which include minimum energy efficiency standards for common industrial equipment and systems.

4.10. (...) The only coal-fired electricity plant in Singapore employs a mix of clean coal (with low-ash and low-sulphur) and biomass to produce steam that is required by industries, as well as electricity. This co-generation process is in general more efficient than the separate production of steam and power. Measures have been put in place by environmental agencies to ensure that the facility meets environmental standards.

4.18. Due to natural conditions (absence of rivers, low average wind speeds, nature of the subsoil, and size and use of the territory), it is not viable to develop hydro-power, tidal energy, nuclear energy, wind energy, or geothermal energy based on current technologies. As a result, solar, biomass, and biofuels are the only feasible options for Singapore's renewable energy supply. Renewable energies are essentially used for electricity generation.

4.19. (...) Today, 95% of Singapore's electricity is generated using natural gas. In addition to accelerating solar deployment, Singapore is also studying emerging technologies such as hydrogen for power generation in the longer term. Due to the lack of alternative energy options, Singapore is also looking into leveraging regional power grids to overcome geographical constraints and access other clean energy sources. Chart 4.4 provides the energy sources mix for the generation of electricity.

4.20. Electricity consumption grew by 8.9% between 2015 and 2019. In 2018, the Energy Market Authority (EMA) launched the Genco Energy Efficiency (EE) Grant Call, which encourages gencos to deploy equipment or technologies that are more energy efficient or competitive.

4.21. In 2018, the Government launched the first grant call for the Genco EE Grant and awarded SGD 37 million to PacificLight Power, Tuas Power, Senoko Energy, and YTL PowerSeraya, to embark on energy efficiency projects. These projects are expected to reduce carbon emissions by over 48 kilotonnes per year.

4.22. Following this award, the 2nd Genco EE Grant Call was launched on 11 January 2021 to continue to support gencos' efforts to improve their energy efficiency and adapt to an increasingly carbon-constrained future. This second grant call is planned to close on 30 September 2021, and the outcome is to be made known to the public by mid-2022.

4.23. The remainder of the electricity comes from refuse/biomass, coal, petroleum products, and solar, but none of these sources accounts for more than 3%, even though Singapore has set targets for 2030 for solar capacity (2 GWp) and storage (200 megawatts).

4.24. The overall share of renewables in Singapore's fuel mix for electricity generation remained constant at approximately 2.8% from 2015 to 2019. The relative share of solar energy increased between 2015 and 2019 (slightly more than 0% in 2015 to 0.36% in 2019). Singapore achieved its 2020 solar capacity target of 350 megawatts peak (MWp) in the first quarter of 2020. The Government subsequently announced new targets of 1.5 gigawatts peak (GWp) by 2025 and at least 2 GWp by 2030.