In the context of the global response to climate change, clean energy transformation has become the consensus of the international community and the strategic focus of the development of various countries. In recent years, with technological advancement and cost reduction, the proportion of renewable energy in the global energy structure has continued to increase. Data in 2023 show that global renewable energy power generation will exceed coal power for the first time, accounting for 38% of total power generation. Under the framework of the Paris Agreement, various countries have proposed carbon neutrality goals and promoted the transformation of the energy structure into a clean and low-carbon direction.

As an important energy trading and financial center in the Asia-Pacific region, Singapore faces special energy development challenges. Due to its limited land area and lack of natural resources, Singapore is actively exploring innovative clean energy development paths. By formulating the “Green Development Plan 2030” and the “Singapore Energy Transformation Roadmap”, we have clearly identified the development of clean energy as a national strategic priority and are committed to building a sustainable smart energy system. Singapore plans to increase its installed solar capacity to 2 GW by 2025, and vigorously develop emerging fields such as hydrogen energy and smart grids to create a regional clean energy innovation center.

Singapore’s clean energy development strategy and practical experience have important reference value for Chinese companies. First of all, Singapore’s policy support system, business model innovation and international cooperation mechanisms in the field of clean energy provide useful reference for Chinese companies to expand overseas markets. Secondly, Singapore, as an important hub connecting the Asia-Pacific market, provides a strategic pivot for Chinese clean energy companies to develop regional markets. Third, Singapore’s layout and innovation in emerging fields such as hydrogen energy and smart grids provide important reference for Chinese companies to seize future development opportunities. Data from the beginning of 2024 shows that more than 50 Chinese clean energy companies have set up regional headquarters or R&D centers in Singapore to participate in the construction of the local clean energy market.

An in-depth study of Singapore’s clean energy development strategy and analysis of its successful experiences and existing challenges can provide important guidance for Chinese clean energy companies in formulating overseas development strategies, helping companies better seize opportunities in the clean energy market in the Asia-Pacific region and achieve sustainable development. At the same time, this will also help promote in-depth cooperation between China and New Zealand in the field of clean energy and jointly promote regional energy transformation and green development.

Overview of Singapore’s clean energy development strategy

The Singapore government released the “Singapore Green Plan 2030” in 2021. This programmatic document establishes the overall framework for the country’s clean energy transformation. The plan is jointly promoted by five major departments, including the Ministry of Trade and Industry, the Ministry of National Development, the Ministry of Environment and Water Resources, the Ministry of Transport and the Ministry of Education, and reflects Singapore’s cross-departmental collaborative mechanism to promote clean energy development.

In terms of energy transformation, the Singapore Energy Market Authority (EMA) released the “Energy 2050 Committee Report” in October 2022, proposing a “4 Switches” strategy: natural gas, solar energy, regional grids and low-carbon alternative energy . Among them, the “Solar Energy Development Roadmap” clearly states the goal of solar installed capacity reaching 4 GW by 2030. In 2023, Singapore revised the Electricity Act to further improve the grid connection and trading mechanism of renewable energy, and promulgated the Low-Carbon Hydrogen Standards to provide legal protection for the development of hydrogen energy.

In terms of carbon emission reduction commitments, Singapore has updated its Nationally Determined Contribution (NDC), committing to control greenhouse gas emissions at a peak level of 65 million tons of carbon dioxide equivalent by 2030, and to achieve net-zero emissions by 2050. To achieve this goal, Singapore raised its carbon tax to S$25/ton in January 2024 and plans to further increase it to S$45/ton in 2026 and to S$50-80/ton in 2030.

The short-term goal (2025) mainly focuses on infrastructure construction and demonstration project promotion. Specific details include: achieving 2 GW of solar installed capacity; building at least 3 hydrogen energy demonstration projects; building the first smart grid demonstration area on Jurong Island; achieving 80% of buildings to obtain green building certification. At the same time, it plans to invest S$5 billion in clean energy research and development and demonstration projects during 2024-2025.

The mid-term goal (2030) focuses on large-scale industrial development. The main goals include: reaching 4 GW of installed solar capacity; increasing the proportion of renewable energy in total electricity consumption to 8%; building a complete hydrogen supply chain system; achieving full coverage of electric vehicle charging infrastructure (60,000 charging piles) ; Smart meter penetration rate reaches 100%; greenhouse gas emission intensity is reduced by 36% (compared to 2005).

The long-term goal (2050) focuses on the deep transformation of the energy system. The core goal is to achieve net-zero emissions. Specific paths include: building a regional clean energy trading center; developing into a hydrogen energy hub in the Asia-Pacific region; realizing comprehensive digitalization and intelligence of the energy system; and establishing a regional carbon trading market. The “Energy 2050 Committee Report” also proposed that low-carbon energy (including hydrogen energy and renewable energy) will meet at least 50% of Singapore’s energy needs by 2050.

To ensure that the goal is achieved, Singapore has established a comprehensive policy support system. In terms of financial support, a S$3 billion Green Investments Program and a S$1 billion Low-Carbon Transition Fund have been established. In terms of technological innovation, up to 70% of technological transformation subsidies are provided through the Enterprise Sustainability Program. In terms of talent training, the “SkillsFuture Initiative” is implemented to focus on cultivating professionals in the field of clean energy.

In terms of regulatory framework, Singapore has established a multi-level management system. The Energy Market Authority (EMA) is responsible for overall policy formulation and market supervision, the Ministry of Sustainable Development and Environment (MSE) is responsible for carbon emission reduction-related policies, the Economic Development Bureau (EDB) is responsible for investment promotion, and the Agency for Science, Technology and Research (A*STAR) is responsible for Technical R&D support. The newly established “Office for Green Economy” in 2023 will further strengthen inter-departmental coordination.

This series of policy frameworks and development goals demonstrate Singapore’s determination and systematic thinking to promote clean energy transformation, and provide clear policy guidance and development paths for companies to participate in Singapore’s clean energy market. Especially in emerging fields such as hydrogen energy and smart grids, Singapore is building an innovation ecosystem with regional influence, providing companies with broad room for development.

Analysis of development of major clean energy fields

3.1 Solar energy development

The development of solar energy in Singapore is showing rapid growth. As of the first quarter of 2024, the total installed solar capacity reached 850 MW, an increase of more than 300% from 2020. In the face of limited space, Singapore has innovatively developed “floating solar energy” and “building integrated photovoltaics” (BIPV). The Lake Dengar Floating Solar Project is currently the world’s largest urban floating photovoltaic power station, with an installed capacity of 60 MW and an annual power generation capacity that can meet the electricity needs of 16,000 households.

In terms of technological innovation, the Solar Energy Research Institute of Singapore (SERIS) is a global leader in the research and development of high-efficiency photovoltaic cells. In 2023, the conversion efficiency of the perovskite-silicon stack solar cell developed by the institute reached 31.5%, setting a new world record. The intelligent photovoltaic monitoring system launched by the Singapore Agency for Science, Technology and Research (A*STAR) can optimize the performance of solar energy systems in real time and increase power generation efficiency by 15-20%.

In terms of business model innovation, Singapore has launched innovative mechanisms such as “Solar Leasing” and “Virtual Power Purchase Agreement” (VPPA). The SolarNova plan launched by the Energy Market Authority (EMA) drives the development of the solar energy market through government procurement. The Green Electricity Sale Program, launched in 2023, will allow consumers to purchase renewable energy power directly.

3.2 Hydrogen energy development

Singapore is actively deploying hydrogen energy infrastructure construction. The hydrogen energy supply center planned and constructed on Jurong Island is expected to be put into operation in 2025, with an annual processing capacity of 1 million tons. The Port of Singapore (PSA) is building the world’s first hydrogen port facility and plans to achieve 100% hydrogen energy for heavy-duty vehicles in the port area by 2027.

In terms of technology research and development, the National University of Singapore has established a hydrogen energy research center to focus on hydrogen energy preparation, storage, transportation and application technology research. In 2023, Shell achieved a breakthrough in the new electrolytic water hydrogen production technology jointly developed by the Singapore Agency for Science, Technology and Research, and its energy efficiency increased by 20%.

In terms of international cooperation, Singapore has signed hydrogen energy cooperation agreements with Australia, Brunei, Japan and other countries. Among them, the “Australia-New Zealand Hydrogen Supply Chain Project” plans to supply green hydrogen to Singapore starting in 2026. In early 2024, Singapore and Indonesia signed a green hydrogen development agreement worth US$15 billion.

3.3 Smart grid construction

Singapore’s smart grid development adopts a “four-layer architecture”: physical layer, communication layer, application layer and business layer. The “Smart Grid Standard Framework” released in 2023 establishes unified technical standards and interface specifications. The smart meter deployment plan led by SP Group has been 80% completed and is expected to achieve full coverage by 2025.

In terms of demonstration projects, the Jurong Island smart grid pilot project is progressing smoothly and has achieved real-time response to energy demand and intelligent dispatch of distributed energy. The “Digital Energy Management System” (DERMS) pilot launched in 2024 will integrate 1,000 distributed energy facilities.

In terms of digital transformation, the Singapore electricity market has fully introduced blockchain technology and established an energy transaction tracking system. The digital twin platform developed by SP Group enables real-time monitoring and predictive maintenance of power grid operations.

3.4 Other emerging fields

Although Singapore does not have the natural conditions for large-scale development of offshore wind power, it is actively developing offshore floating wind power technology. The pilot project to be launched in 2023 plans to install three floating wind turbines in the southern sea with a total installed capacity of 15 MW.

In the field of energy storage, Singapore plans to deploy 200 MW energy storage systems by 2025. The Tuas Port energy storage project (100MWh), which will be put into operation in early 2024, uses innovative flow battery technology to significantly reduce energy storage costs. The Energy Market Administration launched the “Energy Storage Innovation Plan”, providing R&D subsidies of up to 70%.

In terms of carbon capture and storage (CCS), Singapore and Indonesia are cooperating to develop storage sites in the South China Sea. The Jurong Island test-bed project achieves a carbon dioxide capture capacity of 100,000 tons per year. The Carbon Pricing Act revised in 2023 will include CCS in the carbon credit trading system.

District energy systems are developing rapidly. The Marina Bay District Cooling System is the largest district cooling project in Asia, saving 40 million kilowatt hours of energy every year. Singapore is planning to build a second district cooling system covering the Jurong Lake area.

To support the development of these areas, Singapore has established a number of special funds:

• Clean Energy Research and Development Fund (S$2 billion)
• Energy Innovation Project Fund (S$500 million)
• Green Building Innovation Fund (S$300 million)
• Low Carbon Technology Commercialization Fund (S$200 million)

At the same time, enterprises are provided with technological upgrading and capacity building support through the “Industrial Transformation Plan” (ITP), and can receive up to 70% of cost subsidies. These measures have effectively promoted clean energy technology innovation and industrialization development, and helped Singapore build a regional clean energy center.

Innovation support system

Singapore has built a multi-level clean energy R&D and innovation system. In terms of the layout of research institutions, an innovation network has been formed with the National University of Singapore and Nanyang Technological University as the core and supported by professional research institutions. Among them, the Solar Energy Research Institute of Singapore (SERIS) focuses on photovoltaic technology research and development, the Energy Research Institute (ERI@N) focuses on the development of smart grid and hydrogen energy technology, and the Singapore Green Building Research Institute (SB-Institute) is committed to building energy-saving technology innovation. The newly established Low Carbon Energy Research Center (LCERC) in 2023 further improves the R&D layout.

In terms of industry-university-research cooperation, Singapore has launched the “Industry Alliance Program” (IAP) to support enterprises and research institutions in joint research and development. As of early 2024, 15 industrial innovation alliances have been established, covering key areas such as energy storage, smart grids, and hydrogen energy. The “Technology Transfer Office” (TTO) established by the Agency for Science, Technology and Research (A*STAR) is specifically responsible for promoting the industrialization of R&D results, and will facilitate more than 200 technology transfers in 2023.

In terms of innovation fund support, a number of special funds have been established. The “Clean Energy Research and Development Fund” (CERDF) provides project funding of up to S$5 million, and the “Energy Innovation Challenge Fund” (EICF) supports the development of breakthrough technologies, with a maximum funding limit of S$10 million for a single project. The newly established “Green Innovation Fund” (GIF) in 2024 will focus on supporting the innovation of start-up companies, with an initial scale of S$500 million.

Talent cultivation adopts a “multi-dimensional” strategy. Through the “SkillsFuture” project, we provide clean energy skills training for working personnel, covering more than 5,000 people. The “Energy Talent Training Program” (ETP) cooperates with multinational companies to train 300 energy professionals every year. The “Green Talent Development Plan” launched in 2023 provides up to 90% training subsidies and plans to train 10,000 clean energy professionals by 2025.

Singapore continues to optimize its clean energy market access policy. The Electricity Law revised in 2023 simplifies the approval process for renewable energy projects and shortens the approval time by 50%. The “Foreign Investment List” lists clean energy as a key encouraged area, allowing 100% foreign ownership. The Energy Market Authority (EMA) launched a “regulatory sandbox” mechanism to support pilots of innovative business models.

The financial support system continues to improve. The Monetary Authority of Singapore (MAS) released the Sustainable Finance Guide to promote the development of green credit. The Green Bond Subsidy Scheme (GBGS) subsidizes up to 50% of the issuance costs of eligible green bonds. The “Clean Energy Investment Fund” (CEIF) established in early 2024 has a scale of S$10 billion, focusing on supporting the development of clean energy companies. Major financial support measures include:

• Loan guarantee for clean energy projects: maximum guarantee amount of S$100 million
• Green technology commercialization loan: 2% annual interest rate discount
• Financing support for energy-saving renovation: maximum financing ratio 80%
• Innovative enterprise venture capital matching: matching investment at a ratio of 1:1

In terms of tax policies, a number of preferential measures have been implemented:

• Investment in clean energy equipment can enjoy 200% accelerated depreciation
• 250% tax credit available for R&D expenditures
• Technology license fees enjoy a preferential royalty rate of 5%
• Qualified clean energy companies can enjoy a 10-year preferential tax rate of 10%
• Investments in energy-saving renovations can receive investment subsidies of up to 50%

The intellectual property protection system continues to be strengthened. The “Patent Law” revised in 2023 adds a fast review channel for green technology, shortening the review cycle to 6 months. The Intellectual Property Office of Singapore (IPOS) has established a dedicated clean energy intellectual property service center to provide patent navigation, value assessment and other services. The “Intellectual Property Strategy 2030” lists clean energy innovation as a key protection area and strengthens law enforcement. Specific measures include:

• Establish an intellectual property assistance fund to subsidize up to 70% of patent application fees
• Provide intellectual property insurance to cover rights protection costs
• Establish an intellectual property evaluation system to support intellectual property pledge financing
• Establish a specialized arbitration center to speed up the resolution of intellectual property disputes

These support measures form a complete innovation ecosystem to provide all-round support for the development of clean energy companies. Statistics at the beginning of 2024 show that the number of clean energy-related patent applications in Singapore increased by 35% year-on-year, and the technology transaction volume exceeded S$5 billion, fully reflecting the effect of the innovation support system. At the same time, through the collaborative innovation of industry, academia and research, a number of internationally competitive clean energy companies have grown rapidly, laying a solid foundation for Singapore to build a regional clean energy innovation center.

International Cooperation and Market Opportunities

5.1 Regional Cooperation Framework

Singapore actively promotes international cooperation in the field of clean energy and plays a key hub role in the ASEAN region. As the chair of the ASEAN Renewable Energy Center, Singapore has taken the lead in formulating the “ASEAN Power Interconnection Master Plan 2025” to promote the integration of regional power grids. The plan clarifies the timetable for cross-border power grid construction and plans to achieve a clean energy transmission capacity of 100 GW in the ASEAN region by 2025. Under this framework, Singapore takes the lead in implementing the “ASEAN Renewable Energy Scaling Plan”, which has driven regional clean energy investment to more than US$20 billion by 2024.

In the field of bilateral cooperation, Singapore has built a comprehensive partnership network. The “Green Economic Partnership Agreement” signed with Australia has opened up in-depth cooperation between the two countries in the field of hydrogen energy, and plans to build the first cross-border green hydrogen supply chain by 2025. The Low Carbon Growth Partnership Agreement with Japan focuses on promoting cooperation in carbon capture technology. The demonstration project jointly invested and constructed by both parties is expected to be put into operation in 2025. The Clean Energy Cooperation Framework Agreement signed with Indonesia in early 2024 further expanded the scope of cooperation to cover renewable energy development, energy storage systems, carbon trading and other fields.

Technology transfer and investment promotion form a complete support system. The “Asia Clean Technology Center” established in Singapore serves as a regional platform to provide intellectual property transactions and technology assessment services through the “Green Technology Bank”. The “Green Investment Promotion Plan” launched by the Singapore Economic Development Board provides comprehensive support to multinational companies, including R&D subsidies, talent training and market access conveniences. The “Foreign Investment Promotion Law” to be implemented in 2024 has further optimized the business environment in the clean energy field, providing “one-stop” services and clear policy guarantees.

5.2 Market opportunity analysis

Singapore’s clean energy industry chain is undergoing profound changes and is nurturing huge development opportunities. In the field of high-efficiency photovoltaic manufacturing, Singapore is becoming an important production base for high-efficiency cells and smart components with its leading technological advantages. The market size is expected to reach S$5 billion by 2025. The rapid development of smart grid equipment manufacturing and energy storage system integration has driven the demand for related technical services. In particular, the market for professional services such as energy management system development and smart grid planning, operation and maintenance continues to expand. Hydrogen energy infrastructure construction is in the ascendant, and investment demand is expected to exceed S$10 billion in the next five years.

Business model innovation is reshaping the energy service market landscape. The “energy as a service” model provides users with one-stop energy solutions through contract energy management, equipment leasing, etc. The market size will reach S$1.5 billion in 2023. Virtual power plants participate in power market transactions by integrating distributed energy resources. Currently, there are multiple commercial operation projects in Singapore. Innovation in energy blockchain applications has brought new opportunities for the digitization of energy assets. The “green electricity trading platform” launched in early 2024 has significantly improved the trading efficiency of renewable energy certificates.

Singapore is building a future-oriented clean energy innovation ecosystem. Intelligent energy storage systems, hydrogen energy infrastructure, energy digitalization and other fields have shown huge investment potential. Especially in distributed energy systems, the application of innovative solutions such as microgrids and virtual power plants continues to deepen. Enterprises need to continue to strengthen their technological innovation capabilities, especially in the fields of digitalization and intelligence, while focusing on business model innovation and making full use of policy support to open up new development space.

As Singapore’s clean energy industry continues to develop, its position as a regional clean energy hub continues to strengthen. The sound international cooperation framework and high-quality business environment provide enterprises with broad development space. It is expected that the scale of Singapore’s clean energy industry will reach S$100 billion by 2030, playing a more important role in promoting regional energy transformation and combating climate change. By deepening international cooperation and seizing market opportunities, Singapore is becoming the most dynamic clean energy innovation and trade center in the Asia-Pacific region.

Enterprise development suggestions

Companies entering the Singapore clean energy market need to have an in-depth understanding of local access policies and regulatory requirements. According to the “Energy Market Access Guide 2024” issued by the Singapore Energy Market Authority (EMA), clean energy companies need to meet multiple requirements such as qualifications, technology and financial strength. Power generation companies need to obtain a power generation license, with a minimum registered capital requirement of S$5 million; energy service companies need to obtain energy service provider qualification certification and be equipped with technical personnel with relevant professional qualifications. Companies must pass Enterprise Singapore’s (ESG) technology assessment to prove that their technology solutions meet local market needs.

In terms of cooperation model selection, companies can adopt different methods according to their own characteristics. Forming a joint venture with local companies is a recommended way to enter the market, as it can quickly obtain market resources and channels. According to the Company Law, foreign capital can hold 100% of the shares in the clean energy field, but cooperation with local companies can enjoy more policy support. For example, the Singapore-Singapore Collaborative Innovation Program (SCIP) provides joint ventures with R&D subsidies of up to 70%. Another feasible way is to gradually expand the market through technology licensing or equipment supply to reduce initial investment risks.

Risk assessment should be based on an in-depth understanding of the Singapore market environment. In addition to technology and market risks, special attention needs to be paid to risks such as changes in policies and regulations, and intellectual property protection. It is recommended that enterprises conduct comprehensive due diligence before entering the market and hire local professional institutions to provide legal and business consulting services. At the same time, some risks can be transferred by purchasing relevant insurance products. The green technology insurance plan launched by the Insurance Authority of Singapore (MAS) can provide comprehensive protection for enterprises.

Localization strategy is the key to business success. This includes not only the local adaptation of products and services, but also the establishment of localized management teams and supply chain systems. Companies can gain a deeper understanding of local market needs by participating in industry organizations such as the Singapore Green Building Council (SGBC). At the same time, we actively participate in industry docking activities organized by the government and establish a local partner network.

In terms of technology reserves, companies need to formulate a clear technology development roadmap. It is recommended to focus on priority technology areas in Singapore, including high-efficiency photovoltaics, smart grids, hydrogen energy utilization, etc. You can carry out joint R&D by cooperating with Singaporean scientific research institutions and take advantage of the Singapore R&D tax credit policy to obtain tax relief of up to 250%. At the same time, a technology early warning mechanism should be established to track technology development trends and policy changes in a timely manner.

Talent deployment strategies need to take into account both local and international talent resources. The “SkillsFuture” program implemented in Singapore provides up to 90% subsidies for companies to train local employees. High-end international talents can be introduced through the “Foreign Talents Program” (Tech.Pass). Companies can cooperate with institutions such as Singapore Polytechnic to establish talent training bases. At the same time, it is recommended to develop a competitive salary system and career development channels to improve talent stability.

Financing plan design needs to make full use of Singapore’s complete financial support system. In addition to traditional bank loans, you can consider financing through the green bond market of the Singapore Exchange (SGX), which enjoys a subsidy of up to 50% of issuance fees. The Green Finance Scheme launched by the Monetary Authority of Singapore (MAS) provides preferential interest rate loans to clean energy companies. Innovative enterprises can also seek venture capital support. Singapore Venture Capital Fund (SEEDS Capital) provides 1:1 matching investment for high-quality projects.

Business model selection needs to consider market maturity and customer demand characteristics. In mature markets, the traditional model of equipment sales and services can be adopted; in emerging markets, innovative models such as “Energy as a Service” (EaaS) are recommended. The contract energy management model can reduce customers’ initial investment pressure and achieve long-term stable returns. Enterprises can also participate in the construction of virtual power plants and create new revenue sources by integrating distributed energy resources.

As Singapore’s clean energy market deepens, companies need to establish flexible and adaptable development strategies. It is recommended to adopt a progressive approach to market development, starting with areas of advantage and then gradually expanding the scope of business. At the same time, we must focus on in-depth integration with the local innovation ecosystem and actively participate in collaborative innovation of the industrial chain. Through reasonable planning and effective execution, companies can achieve sustainable development in the dynamic market of Singapore and use this as a basis to expand into the Southeast Asian regional market.

Typical case analysis

7.1 Successful cases

In the development process of Singapore’s clean energy market, a number of representative successful cases have emerged. Among local companies, the development trajectory of Singapore Solar Technology Company (Sunseap) is the most typical. The company started with small solar installations and has grown into Southeast Asia’s leading clean energy service provider through continuous innovation and market expansion. The key to its success lies in accurately grasping policy guidance, taking the lead in launching the “solar energy as a service” model, and providing clean energy solutions with zero initial investment to industrial and commercial customers. As of 2024, the company’s installed solar capacity under management will exceed 500 MW, and its annual revenue will exceed S$1 billion.

Among foreign-funded enterprises, the Singapore development strategy of Electricite de France (EDF) deserves attention. After entering the Singapore market in 2020, the company adopted a robust localization strategy. It first cooperated with local research institutions to carry out technology research and development, and then quickly gained market share by acquiring local companies. It has established leading advantages in smart microgrids, energy storage systems and other fields, and the energy management platform it developed won the 2024 Singapore Energy Innovation Award. The company pays special attention to intellectual property protection and has registered more than 50 related patents through the Intellectual Property Office of Singapore (IPOS).

In terms of cooperation projects, the large-scale energy storage project jointly developed by Singapore Energy Group (Sembcorp) and Japan’s Mitsubishi Heavy Industries demonstrates a successful paradigm of international cooperation. The project adopted an innovative business model and raised funds through public-private partnership (PPP) to successfully build an electrochemical energy storage system with a capacity of 200 MWh. The project makes full use of various support policies provided by Singapore’s “Energy Storage System Incentive Plan” to achieve the unity of technological innovation and commercial sustainability.

Among innovative model cases, the “Marina Bay Smart Energy Community” project pioneered the application of blockchain technology to energy transactions. The project integrates more than 300 distributed energy facilities by establishing community-level virtual power plants to realize direct transactions of clean energy between users. In the one year since the project has been running, participating users have saved an average of 20% in energy costs, providing replicable experience for the construction of smart energy communities in Singapore.

7.2 Experience Enlightenment

Through the analysis of these successful cases, several key success factors can be summarized. The first is to accurately grasp the policy direction and make full use of government support policies. Enterprises need to conduct in-depth study of policy documents such as Singapore’s Energy Transformation Roadmap 2050 and organically combine business development with policy guidance. The second is to focus on combining technological innovation with localization and improve innovation capabilities through cooperation with local institutions. The third is to adopt a flexible business model and continuously adjust business strategies according to market demand.

In practice, common problems faced by enterprises include insufficient understanding of the local market, poor technological adaptability, and insufficient talent reserves. The key to solving these problems is to strengthen market research, conduct technology adaptability testing in advance, and establish a localized talent training system. For example, you can gain an in-depth understanding of market needs by participating in market consultation meetings organized by the Singapore Energy Market Authority; you can also establish joint laboratories with local universities to conduct technology adaptability research.

Risk prevention measures should be implemented throughout the entire project cycle. It is recommended that enterprises establish a complete risk assessment system, focusing on policy risks, technology risks, market risks and financial risks. Build a multi-level risk prevention mechanism by purchasing relevant insurance products, setting up risk reserves, formulating emergency plans and other measures. At the same time, special attention must be paid to intellectual property protection and corporate rights and interests must be protected through legal means.

Based on the case analysis, the following suggestions are put forward for enterprise development:

We must adhere to the orientation of technological innovation, continue to increase investment in research and development, and maintain technological leadership. Focus on business model innovation and explore service solutions more suitable for the local market. Strengthen strategic cooperation with local enterprises and establish stable partnerships. Pay attention to talent training and team building, and build a localized team with an international perspective. Establish and improve the risk management system to ensure the sustainable development of the enterprise.

For different types of enterprises, development strategies also need to be differentiated. Local enterprises should give full play to their local advantages and enhance their competitiveness through technological innovation; foreign-funded enterprises need to pay more attention to localization strategies and quickly integrate into the market through cooperation. Start-ups can focus on market segments and establish competitive advantages through special services; large enterprises should leverage their resource advantages to create a complete industrial ecosystem.

Through systematic summary and continuous improvement, companies can find a development path suitable for themselves in Singapore’s rapidly developing clean energy market and achieve sustainable growth. These successful experiences not only have important reference value for the enterprise itself, but also provide useful inspiration for the healthy development of the entire industry.

Outlook and Suggestions

Singapore’s clean energy industry is in a critical period of rapid development, and future development trends are diversified. In terms of technology development direction, high-efficiency photovoltaics, intelligent energy storage and green hydrogen technology will become key breakthrough areas. According to predictions from the Energy Research Institute of Singapore (ERI@N), photovoltaic cell efficiency is expected to exceed 30% by 2026, and energy storage system costs will be reduced by 40%. A new generation of perovskite battery technology is breaking through the laboratory stage and is expected to be commercialized in 2025. The hydrogen energy technology route will gradually become clear, with green hydrogen production and fuel cell applications as the main directions.

Market evolution trends show that energy service models will develop in the direction of intelligence and integration. The scale of virtual power plants continues to expand, and it is expected that the managed capacity will exceed 1 GW by 2025. The application of energy blockchain has been further deepened and a more efficient energy trading system has been established. The in-depth implementation of the “Singapore Energy Market Liberalization Plan” will drive the emergence of more innovative business models. The integration and development of distributed energy resources and smart microgrids has become a new trend, and the value of user-side flexible resources will be fully exploited.

In terms of policy adjustment expectations, the Singapore government will further improve the support policy system. The “Green Energy Development Regulations” are expected to be promulgated in 2025, which will provide clearer legal protection for the development of the industry. The carbon pricing mechanism will be gradually improved, with the carbon price expected to increase to S$80 per ton in 2026. The renewable energy quota system may be further expanded to cover more industry sectors.

The competitive landscape is undergoing profound changes. Traditional energy companies are accelerating their transformation to clean energy, international giants are increasing their market presence, local innovative companies are growing rapidly, and market competition is becoming more intense. It is expected that by 2025, market concentration will increase and a number of internationally competitive leading companies will be formed.

At the government level, it is recommended to further improve the policy support system. Accelerate the introduction of the Clean Energy Industry Promotion Law and establish unified industry standards and regulatory frameworks. Expand fiscal and taxation support and provide greater support to key technology research and development projects. Improve the talent training mechanism, strengthen international cooperation, and establish a regional talent training base.

At the enterprise level, it is recommended to adopt a differentiated development strategy. Local enterprises should strengthen technological innovation and enhance core competitiveness; foreign-funded enterprises need to deepen their localization strategy and strengthen integration with the local industrial chain. Innovative enterprises can focus on market segments and create unique advantages; large enterprises should give full play to their comprehensive advantages and build a complete industrial ecosystem.

Industrial chain cooperation should focus on complementary advantages and establish a closer collaborative innovation mechanism. Encourage upstream and downstream enterprises to jointly invest in technology research and development and establish industrial technology innovation alliances. Promote the construction of industrial clusters and form a complete industrial ecosystem. Strengthen international cooperation and establish multi-level technical exchange and market cooperation mechanisms.

Risk prevention requires the establishment of a comprehensive monitoring and response system. Pay attention to multiple dimensions such as technical risks, market risks, and policy risks, and establish an early warning mechanism. Strengthen the protection of intellectual property rights and prevent the risk of technology leakage. Establish an industrial safety assessment mechanism to ensure the healthy development of the industry.

Conclusion

The development of Singapore’s clean energy industry has achieved remarkable results. As of 2024, the installed capacity of renewable energy will reach 2 GW, the smart grid coverage will exceed 80%, and a number of internationally leading demonstration projects will be built. Industrial innovation capabilities have been significantly improved, and a number of internationally competitive enterprises have been cultivated. The policy support system has been continuously improved, market mechanisms have become increasingly mature, and international cooperation has advanced in depth.

But there are still some problems in development. Technological innovation capabilities need to be improved, and there is a high degree of dependence on core technologies. The market size is relatively limited and business model innovation is insufficient. The supply of talents cannot fully meet the needs of industrial development. The degree of collaboration in the industrial chain needs to be further improved.

Opportunities and challenges coexist. The global energy transformation is accelerating and regional cooperation is deepening, providing good opportunities for industrial development. However, international competition has intensified and technological iterations have accelerated, placing higher demands on the innovation and adaptability of enterprises. The uncertainty brought about by climate change also requires great attention.

The future outlook is generally positive. It is expected that by 2030, Singapore will become the leading clean energy innovation center in the Asia-Pacific region and form a complete industrial ecosystem. The proportion of clean energy will reach 30% of the energy structure, and the industry scale will exceed S$100 billion.

Short-term actions are recommended to focus on quickly improving market competitiveness. Enterprises should accelerate the pace of technological innovation, optimize product performance, and improve service quality. The government needs to speed up the implementation of policies, improve market rules, and optimize the business environment. Focus on promoting the construction of demonstration projects and establishing a benchmark effect.

The mid-term development strategy focuses on building an industrial ecosystem. Promote the construction of industrial clusters and strengthen industrial chain coordination. Strengthen talent training and establish a multi-level talent supply system. Deepen international cooperation and expand market space. Improve the financing system and provide sufficient financial support for industrial development.

The long-term layout direction focuses on building international competitiveness. Build a world-leading clean energy innovation center and form a complete technological innovation system. Build a regional clean energy trade and service center to enhance international influence. Promote the transformation of the energy system and achieve sustainable development.

Suggestions for supporting measures include improving the standard system, strengthening financial support, optimizing talent policies, and strengthening international cooperation. Establish and improve industry standards and certification systems to promote the development of market standards. Innovate financial products and services to meet the diversified financing needs of enterprises. Optimize talent introduction and training policies and establish a flexible talent flow mechanism. Deepen international cooperation and establish multi-level cooperation mechanisms.

By systematically promoting these initiatives, Singapore’s clean energy industry will usher in new development opportunities, play a more important role in the global energy transformation, and achieve the strategic goal of sustainable development.