Singapore Hits 2025 Solar Target Early, Signs Carbon Deal

Singapore has surpassed its 2025 solar target earlier than expected, reaching 1.5 gigawatt-peak (GWp) of installed solar capacity by the close of 2024. This was announced last week by senior minister Teo Chee Hean in parliament and is an important milestone toward the nation's overall goal of installing at least 2 GWp of solar energy by 2030. Teo, who is also chairman of Singapore's Inter-Ministerial Committee on Climate Change, emphasized that the milestone is more than a threefold jump from the nation's solar capacity in 2020.

Singapore’s electricity consumption currently stands at approximately 8 gigawatts (GW). If the country successfully deploys 2 GWp of solar energy as planned, this could potentially supply around a quarter of the nation’s present electricity needs under optimal conditions. However, given the expected growth in energy demand, the 2 GWp of solar capacity is projected to account for only about 3 per cent of Singapore’s total electricity consumption by 2030.

Since it has a limited land base, Singapore has been using creative solutions to increase its renewable energy capacity. Solar energy is the most promising option for renewable energy in the country, and steps to optimize its use include equipping rooftops with solar panels and creating floating solar farms. In 2021, Singapore introduced one of the world's biggest inland floating solar farms that could produce as much as 60 megawatts (MW) of electricity. This year, the development of the nation's largest floating solar farm with a capacity of 141 MWp will begin. Upon operation, it will be adding around 7 per cent of Singapore's 2030 solar deployment goal.

In spite of these developments, experts expect solar power to continue to be a relatively minor player in Singapore's overall energy mix. Even with full deployment, estimates by energy think tank Ember project that the technology will produce less than 20 per cent of the nation's electricity needs by 2035. This is a limitation that has prompted Singapore to look at other energy solutions, such as nuclear power. The government has already produced 40 nuclear energy and safety professionals, and it plans to increase this number to 100 in anticipation of possible future deployment.

In addition to its success in renewable energy, Singapore has also been increasing its carbon trading programs. Last week, the nation signed a new carbon trading deal with Bhutan, adding to its list of carbon offset agreements under Article 6 of the Paris Agreement. This deal is in line with others made with Ghana and Papua New Guinea so that Singapore can employ carbon credits from its partner countries to balance its emissions. The deals need strict regulations to avoid double counting so that the credits utilized by Singapore are proportionately adjusted in the host nations' inventories of greenhouse gases.

During the parliamentary question session, Teo was queried on the part played by carbon credits in Singapore's strategy to limit emissions at about 60 million tonnes of carbon dioxide equivalent by 2030. Though he did not give exact numbers on how many offsets Singapore will use, he stressed the need to ensure that there is clarity in carbon credit transactions. The National Climate Change Secretariat director-general for climate change earlier said that one of the most significant problems with international carbon markets is the uncertainty over which credits can be reduced, causing some nations to hold off selling credits until they have obtained their own climate targets.

Singapore's developing artificial intelligence (AI) industry was also mentioned in the discussion and its potential contribution to energy consumption. Workers' Party MP Dennis Tan questioned whether Singapore's AI aspirations were included in the nation's recently filed 2035 nationally determined contributions (NDCs) under the Paris Agreement. He proposed that the government consider formulating voluntary energy reporting guidelines for AI models, which could be made compulsory later. Such policies, he contended, would incentivize AI developers to become more energy-efficient in their approaches, e.g., employing smaller, task-oriented models rather than large, general-purpose models.

Tan also underscored the possibility of ripple effects from such rules, which can spur demand for energy monitoring technology and infrastructure across the AI sector. Such transformations, he noted, would enable companies to make informed choices about the energy efficiency of AI solutions they implement. Singapore's leadership in embracing AI regulations that support sustainability, he implied, will put local players ahead of foreign peers as demand for low-carbon AI accelerates.

Responding to these fears, Teo said Singapore's Ministry of Digital Development and Information would tackle plans for cleaner data centers during an upcoming committee debate. The government has already started making the nation's digital infrastructure more environmentally friendly, but how AI is shaping energy demand continues to be an issue for debate.

Having been the first country to meet early solar deployment objectives, expanding carbon trading infrastructure, and mounting efforts toward sustainable AI, Singapore also continues to affirm its position of leadership in the pursuit of climate action and green energy innovation. Still, difficulty lies in matching economic development and sustainability, specifically as energy need increases with improving technology.