Singapore
With a cumulative score of 1.79, Singapore ranks number 15 among emerging markets and number 41 in the global ranking.
- Emerging markets
- Asia-Pacific
1.81 / 5
Power score
1.76 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Singapore aspires to achieve net-zero emissions as soon as viable in the second half of the century but has not committed to a firm net-zero target. Singapore’s long-term low emissions strategy looks to promote energy and carbon efficiency and conservation in industry, the economy and society, while investing in emerging low-carbon technologies and leveraging international collaborations.
In 2021, Singapore launched Singapore Green Plan 2030, a roadmap to advance its sustainability agenda toward its long-term net-zero aspiration. The plan outlines targets across five key pillars – City in Nature, Sustainable Living, Energy Reset, Green Economy, and Resilient Future – to be achieved within this decade.
Nationally Determined Contributions (NDC)
Singapore aims to see emissions peak at 65 metric tons of carbon dioxide equivalent (MtCO2e) around 2030 and to halve emissions from that level to 33 MtCO2e by 2050.
Fossil fuel phase-out policy
Singapore's power market is dominantly natural gas. The country also faces space and resource constraints for the development of renewable energy. There is currently no plan to phase out fossil fuels.
Power
Power policy
Singapore wants to harness four supply “switches” to decarbonize its power sector – natural gas, solar, regional power grids and emerging low-carbon alternatives, coupled with improving efficiency.
Due to the lack of natural resources, solar is the most viable renewable energy option. Singapore targets deploying at least 2 gigawatts of solar capacity by 2030, with an accelerated target of 1.5 gigawatts by 2025. Much of the development is constrained to rooftops and floating solar as the city state’s lack of land resources (indicated by the high population density) has proved an obstacle for ground-mounted grid-scale development.
The SolarNova program, which aggregates demand and rooftop space across public housing, schools and government buildings, has been the driving force for solar PV adoption. To date, the Energy Development Board and the Housing Development Board issued seven SolarNova tenders, committing 380 megawatts of capacity.
Floating solar is also increasingly becoming an area of focus as the government looks to maximize available space for solar installations. In 2021, Sunseap installed a 5-megawatt offshore floating solar plant in the Straits of Johor; Sembcorp has also completed a 60-megawatt floating solar plant on the Tengeh Reservoir. The Public Utilities Board is now looking to study the feasibility of another two floating solar plants with a total of 144 megawatts.
To expand renewable energy options, Singapore is exploring potential power imports from neighboring grids, starting with a proposed 100-megawatt import trial from Malaysia.
Power policies
Power prices and costs
Singapore’s power market is fully liberalized with a competitive electricity wholesale market and retail market. Singapore’s power prices are currently linked to the price of oil: the city-state is 95% dependent on imported natural gas for generation, most of which is purchased at oil-linked prices.
Power market
Most of the existing gas supply contracts are set to expire over the next two years, which could give rise to an increasing role for liquefied natural gas over pipeline gas as companies may prefer the flexibilities of different LNG contracts over the rigidity of long-term pipeline contracts.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
The government does not provide subsidies for renewable energy, but instead relies on introducing regulatory frameworks to facilitate renewable energy’s access to the power market. Although corporate demand for clean energy is healthy and private project developers can secure private power purchase agreements, space and natural resource constraints remain the biggest barriers for large-scale renewable energy deployment.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Since 2018, Singapore has imposed a cap on the number of vehicles allowed to be registered. In its 2020 budget, Singapore further announced it will phase out internal combustion engine vehicles by 2040, allowing only hybrids, plug-in hybrids or zero-emission vehicles.
EV policy
The 2021 budget followed up with additional fiscal incentives in the short term such as a rebate against the additional registration fee (ARF) and the removal of the minimum ARF for battery electric vehicles. The government also increased taxes on petrol to discourage the use of petrol and diesel cars which can help to accelerate the adoption of electric vehicles (EV).
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Under the country’s long-term low emission strategy, Singapore aims to green 80% of its buildings (by gross floor area) by 2030. Several schemes are available to drive sustainability in the construction sector and buildings. Both existing and new buildings in Singapore are subject to minimum environmental sustainability standards, locally known as Green Mark standard. There are seven compliance requirements including energy consumption, air-conditioning system minimum operating efficiency, energy improvement on lighting systems and water consumption monitoring.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
Singapore also developed a Super Low Energy buildings program to encourage the deployment of energy efficiency and renewable energy solutions and development of ‘Zero Energy’ (that are self-sufficient in terms of power generation) or ‘Positive Energy’ buildings (that produce excess power).
Buildings policies
Additional insights
from BNEF
Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
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