How does Singapore generate electricity?

With limited natural resources, land constraints, and no domestic fossil fuel reserves, Singapore has to reply on imports for nearly all its energy needs and to generate electricity. Currently, natural gas is the primary source for electricity generation, but the government is actively integrating solar energy, regional power grids, and low-carbon alternatives to decrease dependence on imports and diversify energy sources. Businesses are also investing in renewable power and energy efficiency technologies.

This article explores how Singapore generates electricity and how both the public and private sector are innovating to move to cleaner, more resilient energy systems.

How does Singapore generate electricity?

Singapore gets electricity from the below sources. Let’s take a look at these in more detail:

1. Natural gas

Singapore generates over 95% of its electricity from natural gas. The country started moving away from oil-powered electricity plants in the early 2000s. This shift has helped decrease carbon emissions, as natural gas emits 50% less CO₂ than coal. However, being a fossil fuel, it still contributes to greenhouse gas emissions.

To solve this problem, power companies are finding ways to use energy more efficiently and switching to cleaner options. For example:

• Tuas Power, one of Singapore’s major energy providers, plans to bring in clean electricity from solar farms in Batam, Indonesia, starting in 2027. This initiative is expected to supply up to 600 MW of renewable energy.
• Keppel Electric and Mitsubishi Heavy Industries are exploring hydrogen-ready gas turbines to prepare for a future shift to zero-carbon energy sources. Mitsubishi has already conducted hydrogen co-firing tests at Keppel’s facilities. This also means that current power plants can be modified to use cleaner energy sources.

2. Solar energy

Solar energy contributes around 1% to Singapore’s total energy mix. However, the government has set a big goal: to generate at least 2 gigawatts of solar power by 2030. That's enough to power approximately 350,000 households annually.

Singapore doesn’t have much land available, so it can’t build large solar farms like other countries. Instead, it uses rooftops, reservoirs, and offshore areas to expand solar power.

Take Tengeh Reservoir Floating Solar Farm, for example. Covering 45 hectares, it has 122,000 solar panels and can generate 60 MWp of electricity. That's enough to power all of Singapore’s five water treatment plants. Meanwhile, it decreases carbon emissions by 32 kilotonnes annually.  

Floating solar farms have the below advantages:

• Using reservoirs for solar panels saves space since no extra land is needed.
• Water keeps the panels cool and thus helps them produce more energy.
• The panels stop too much evaporation from the reservoir and hence decrease water loss.

3. Biomass through waste-to-energy (WTE) plants

Singapore also generates electricity from biomass mainly through waste-to-energy (WTE) plants and biogas production.

Since Singapore has limited land, the government focuses on reusing waste instead of just throwing it away. Waste is turned into energy, making the process more efficient and sustainable.

Singapore’s waste-to-energy incineration plants supply around 3% of the country's electricity while decreasing landfill waste. The four WTE plants are:

• Tuas One Waste-To-Energy Plant
• Keppel Seghers Tuas Waste-To-Energy Plant
• Tuas South Incineration Plant
• Senoko Waste-To-Energy Plant

These WTE incineration plants process over 12,000 tonnes of waste daily.

• They burn solid waste at high temperatures.
• Heat from burning waste is used to produce steam.
• Steam powers turbines, which generate electricity.
• Residual ash from the process is collected.
• Ash is transported to Semakau Landfill, Singapore’s only landfill, to help minimize its growth.

Taking a closer look at Singapore's solar energy plan

Singapore is focusing more on solar energy as a key part of its plan for a cleaner and greener future.

Singapore’s solar targets for 2030

Under the Singapore Green Plan 2030, the nation aims to deploy at least 2 GWp of solar energy by 2030. This capacity is projected to generate sufficient electricity to power approximately 350,000 households annually.

To achieve this target, Singapore is exploring innovative solar deployment strategies, including:​

• Rooftop solar panels: Installing solar panels on the roofs of homes, offices, and factories to generate electricity.
• Floating solar panels: Placing solar panels on reservoirs to save land space and make good use of water bodies.
• Offshore solar panels: Testing the idea of putting solar panels in the sea to increase solar power without using up land.

Challenges in solar adoption

Despite the clear benefits, there have been many challenges in scaling up Singapore's solar energy adoption:​

• Unstable solar power: Singapore gets a lot of rain and cloudy weather. This makes solar energy production uneven.
• Limited space: Land in Singapore is expensive and scarce, making it hard to build large solar farms.
• Storing solar energy: Since solar power isn’t always available, Singapore needs good storage solutions to keep electricity stable. In February 2023, the country launched a large battery system on Jurong Island to help store energy and strengthen the power grid.

Regional power grids: How imported clean energy powers Singapore

Singapore is expanding its regional power grid connections to import clean electricity from neighboring countries:

Singapore’s power grid expansion

Singapore is actively increasing its energy security and sustainability. It's importing low-carbon electricity from neighboring countries, including Malaysia, Indonesia, and Laos.

In September 2024, Singapore approved plans to import an extra 1.4 GW of solar power from two projects in Indonesia. Before this, it had already agreed to import 2 GW of solar power.

This means Singapore plans to import a total of 3.4 GW from Indonesia. These projects will use underwater cables to send electricity to Singapore. They're expected to start working by late 2027. ​

Furthermore, Singapore has been importing hydropower from Laos through the Lao-Thai-Malaysia-Singapore Power Integration Project.

Real-life example: Laos-Singapore green energy import project

In June 2022, Singapore commenced the importation of renewable hydropower from Laos through the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP). This setup allows up to 100 MW - 200MW of electricity to travel from Laos to Singapore using existing power links in Thailand and Malaysia. ​

The goal of this project is to strengthen energy security and support clean energy across ASEAN, however, there have been challenges. As of October 2024, Thailand had not finalized its agreement to extend the project. Meanwhile, Malaysia proceeded to supply power directly to Singapore through the LTMS corridor, with exports commencing in September 2024.

Moreover, variations in global natural gas prices have affected how much electricity Singapore imports from Laos. This highlights the challenges of buying power from other countries and the need for stable agreements between nations. ​

Target to import 6 GW of low-carbon electricity by 2035 ​

Singapore plans to import 6 GW of low-carbon electricity by 2035, which will make up about 30% of the country’s electricity supply.

To support this, the government will offer 30-year import licenses to companies that supply low-carbon electricity. This will make the projects financially sustainable and encourage more businesses to invest in clean energy.

Benefits of regional cooperation

Beyond just securing electricity supply, Singapore's push for regional energy cooperation has many advantages:

Enhanced energy security

Importing low-carbon electricity from Malaysia, Indonesia, and Laos will help Singapore decrease its dependence on natural gas. Using different energy sources helps avoid the consequences of global supply issues and sudden price changes.

Regional renewable energy development

Singapore has long-term deals with neighboring countries to help them build more renewable energy sources. For example, Indonesia is developing large solar farms, and Laos is working on hydropower projects. These partnerships bring in more investment for clean energy. This helps Singapore, along with the entire region, move toward a greener future.

Reduced carbon footprint

With a goal to import 6 GW of low-carbon electricity by 2035, Singapore replaces fossil fuel-generated electricity with cleaner alternatives. Hydropower from Laos and solar power from Indonesia are renewable solutions that align with Singapore’s net-zero emissions ambitions.

How businesses can contribute to Singapore’s energy transition

The government leads Singapore’s shift to clean energy, but businesses also need to take part. Making their operations more sustainable can help companies decrease emissions, follow new regulations, and help the country reach its net-zero goals. Here’s how businesses can play a crucial role.

1. Understand your carbon footprint

Being aware of where emissions come from is one of the first steps towards sustainability. Many corporations now use ESG software like Zuno Carbon to track, measure, and decrease their carbon footprint. Advanced end-to-end ESG software helps companies identify emission hotspots and optimize their energy usage. This helps businesses apply data-driven strategies that lead to meaningful carbon reductions.

2. Set transparent net-zero goals

Committing to net-zero requires clear, measurable sustainability targets backed by concrete action plans. For example, DBS Bank has taken a clear, measurable approach to net-zero. The bank aims to achieve net-zero operational emissions by 2026 and net-zero financed emissions by 2050. Its strategy includes:

• Decreasing direct emissions through energy efficiency and responsible resource consumption.
• Switching to renewable energy to power operations.
• Engaging clients in high-emission industries to support their sustainability transitions.

DBS has already started phasing out coal financing. Plus, it is aligning its policies with the International Energy Agency (IEA) Net Zero Emissions scenario.

Invest in renewable energy

Businesses can adopt solar energy or purchase green power to actively decrease their environmental impact. For example, Amazon Web Services (AWS) is investing in on-site and off-site solar projects to power its data centers sustainably.

AWS has made notable progress in its renewable energy efforts:

• Singapore solar projects: AWS partnered with Sembcorp for a 17.6 MW rooftop solar project and Sunseap for a 62 MW ground-mounted solar system, both now operational
• EDP renewables collaboration: AWS invested in a 100 MW solar park in Mississippi under a 15-year PPA.
• 100% renewable energy goal: AWS met its target seven years ahead of schedule, with major investments in the Asia-Pacific region.

Meet sustainability reporting regulations

Singapore's carbon tax and ESG disclosure requirements have become more stringent. Businesses must adopt thorough sustainability reporting frameworks to accurately measure their sustainability performance and disclose their environmental impact.

Zuno Carbon’s end-to-end ESG solution helps companies measure emissions, report ESG performance, and decarbonize their value chains. The platform simplifies emissions tracking through AI-driven tools, enabling accurate data collection and smooth collaboration. It supports the generation of audit-ready ESG reports aligned with multiple global frameworks such as GRI (Global Reporting Initiative), CDP (Carbon Disclosure Project), and TCFD (Task Force on Climate-related Financial Disclosures).

In conclusion, the answer to 'How does Singapore generate electricity?' is evolving rapidly. While natural gas still leads, solar, waste-to-energy, and regional power grids are shaping the future. Singapore’s energy transition is a long-term commitment that requires the collective efforts of the government, businesses, and regional partners.

With innovative solutions like floating solar farms, regional power grids, and AI-driven carbon tracking, the country is progressing steadily towards a more sustainable and secure energy future.

Ready to take action? Zuno Carbon’s end-to-end ESG software helps businesses track, manage, and decrease their carbon emissions while ensuring compliance with Singapore’s evolving sustainability regulations. Book a demo with Zuno Carbon today and move to a greener future!

Frequently Asked Questions (FAQs)

1. What is the main source of electricity in Singapore?

Most of Singapore’s electricity comes from natural gas. It is a cleaner option than coal but still produces carbon emissions. Around 95% of the country's electricity is generated using natural gas.

2. How much of Singapore’s energy comes from solar?

Solar energy makes up less than 1% of Singapore’s total electricity supply. The country is expanding its solar power capacity with projects like floating solar farms to make better use of available space.

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