In recent years, with climate change and rising oil prices, countries around the world have increasingly focused on environmental protection and the development of clean energy. The densely populated island nation of Singapore is particularly committed to becoming one of the world's clean energy hubs, attracting significant investment in clean energy.
Three years ago, the Singapore government announced a funding of S$350 million to promote research and development programs for clean energy, especially solar energy. The Inter-Ministerial Committee on Sustainable Development (IMCSD) announced a blueprint last year to allocate S$1 billion over the next five years to create a greener, energy-efficient, and sustainable Singapore. One of the goals is to improve energy efficiency by 35% from 2005 levels by 2030. Additionally, the Economic Strategies Committee (ESC) recommended in February this year that 5% of Singapore's energy demand should come from renewable energy by 2020.
Multinational corporations are flocking to the Lion City.
Singapore's emphasis on clean energy and substantial investments have attracted multinational corporations to establish operations here.
The Norwegian renewable energy group (REC) has invested S$2.6 billion to build the world's largest integrated solar manufacturing center in Singapore. The group's Chief Operating Officer, John Andersen, stated that when deciding on the location for the center, the group received over 200 proposals, and ultimately, Singapore's investment environment, tax incentives, skilled workforce, and land advantages led the group to choose this location.
Andersen said: “Singapore is well-regulated, very transparent, and there are no unexpected events.” Singapore serves as a gateway to Southeast Asia, and the production of solar wafers, batteries, and modules can rival that of the semiconductor and high-end electronics industries. It is already a well-known semiconductor hub, with its precision engineering and chemical industry capabilities fully applicable to the solar energy sector.
This September, Sichuan Hanlong Group from China announced it would invest US$100 million to establish an overseas headquarters for Concentrated Photovoltaics (CPV) in Singapore by 2012, focusing on technology research and development, system integration, and market development. The company will also expand into solar photovoltaic markets in Australia, India, the Americas, the Middle East, and Africa through its local headquarters. Additionally, the company will establish an assembly integration center in Singapore to provide technical support, after-sales service, equipment maintenance, repairs, technical training, and power plant management services for solar power projects in neighboring countries. On the other hand, the company will collaborate with the Solar Energy Research Institute of Singapore (SERIS) to establish a CPV research center.
Encouraging the development of small and medium-sized enterprises.
Singapore's investment in clean energy has also encouraged the development of local small and medium-sized enterprises. Horizon Energy Systems is a local company primarily developing clean energy products for the aviation industry, which began operations and research and development in Singapore in 2009. The company holds a significant position in the global aviation industry, collaborating with leading aircraft manufacturers to provide Aeropak fuel cell power generation systems, integrating them into unmanned aerial vehicles to triple their flight time. The company states that Singapore has long been regarded as a strategic base for cutting-edge clean technology research and development, leveraging Singapore's advanced position in the green sector and various support for development.
Increasing investment in research and personnel.
The fruitful research and development outcomes in the clean energy sector are also a reason for Singapore's rise in the clean energy field.
One of Asia's most comprehensive solar research centers, the Solar Energy Research Institute of Singapore (SERIS), was established in 2008. SERIS will fully leverage the research advantages of the National University of Singapore in nanoscience, silicon thin-film technology, and semiconductor processing, investing S$130 million over five years.
At its inception, the institute successfully recruited 25 outstanding researchers and plans to increase the total number to 90 over the next five years. The center is currently led by Professor Joachim Luther, a renowned solar scientist and former chairman of the Fraunhofer Institute for Solar Energy Systems in Germany.
As global environmental issues intensify, the importance of the clean energy industry is increasing. With the government's efforts, Singapore is gradually developing into a clean energy hub. A favorable business environment, strategic geographical location, and support for research and development will attract more and more clean energy operators to Singapore.
