Singapore's Solar Investments Save Country $123.8 Million in Fossil Fuel Imports

Singapore's solar investments have been found to save the country an estimated $123.8 million in power-related fossil fuel imports over five months earlier this year, according to a recent report by the Centre for Research on Energy and Clean Air (CREA). The savings came mainly from avoided gas imports, with about $40 million saved from avoiding the additional premium imposed by the Hormuz crisis for natural gas.

The CREA report modelled wholesale-price estimates and found that Singapore's reliance on imported fossil fuels still caused it to incur $8.1 billion in additional gross fossil fuel costs in the six months following the outbreak of the US-Iran war. This placed Singapore 13th among 171 territories for extra fossil fuel import costs during the period.

CREA's Europe-Russia policy and energy analysis team lead Isaac Levi noted that solar still makes up a relatively small share of Singapore's power mix, contributing only about 2% of the country's electricity needs. However, he said that further investments in non-fossil fuel-based sources could help reduce Singapore's exposure to volatile global fuel prices.

Levi suggested that regional power trading could give Singapore access to lower-cost renewable electricity from neighbouring countries when global LNG prices spike. This would diversify its energy supply, reduce reliance on gas-fired power, and help shield consumers and businesses from sudden increases in international fuel prices.