Green energy demand could outpace Singapore’s 6GW import target by 2041

That level would translate to about 3.6GW of imports at a 60% capacity factor.

Green energy demand in Singapore could exceed the country’s targeted six-gigawatt (GW) electricity-import capacity by 2041 as large corporate consumers increase their demand for renewable power, according to a Singapore Sustainable Finance Association report.

Demand is estimated to reach about 19.8 terawatt-hours per year by 2035, which would translate into about 3.6GW of electricity imports at a 60% capacity factor, based on the requirements of Singapore’s conditional electricity-import licences and approvals.

The estimate is based on the intended decarbonisation trajectories of companies across selected sectors and is described as conservative.

The government has identified data centres, semiconductors, and pharmaceuticals as sectors with strong demand for renewable energy.

Most large electricity consumers have set net-zero targets for 2050, whilst some have established milestones in the 2030s, supporting demand for clean power before 2050.

Three factors were identified as key drivers for renewable electricity demand: electricity consumption, ability to pay, and willingness to pay.

Willingness to pay is a key factor, with companies weighing Singapore’s importance to their operations against sector-specific climate requirements and corporate commitments.

Some sectors may also need to meet low-carbon energy requirements in government tenders, with data centres cited as one example.

Corporate commitments such as RE100 and the Energy Efficiency National Partnership can also support demand for renewable electricity.

Companies must weigh the cost of green electricity against retail prices available through short-term contracts.

Their willingness to pay could change as other parts of the region develop the infrastructure needed to support their operations.

The report said companies would consider their competitiveness and profitability in relation to utility costs, alongside regulatory and corporate obligations.