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Feature
New Energy Realities —
What Does It Mean For You? By Tim Rockell & Peter Godfrey The British Chamber’s Energy & Utilities Business Group held its year-end Breakfast Club event in December 2016. Entitled “New Energy Realities — What Does it Mean for You?”, this panel session served as a post-Singapore International Energy Week (SIEW) event to review key themes and look ahead at prospects for the sector in 2017. This article summarises the issues and key takeaways from the discussion.
D
uring the panel event with speakers James Cameron (HSBC), Edwin Khew (Sustainable Energy Association of Singapore), Ng Wai Choong (Energy Market Authority), Goh Swee Chen (Shell) and Peter Godfrey (Energy Institute), the following questions were addressed alongside themes emerging from the SIEW. Attendees gained insights into how local and regional impacts would affect their roles in 2017 and new opportunities for the sector in Singapore. • With commodity prices in a “lowerfor-longer” environment, what are the impacts on investment flows and funding mechanisms in the energy sector? • What are the impacts from the trend to increase renewables in the energy system? What will be the reaction of the oil and gas industry to this trend in Southeast Asia?
• Should Singapore be a leader in technology and innovation and; what are the implications for the sector?
The world is transforming around us
The International Energy Agency’s end of 2016 forecast suggest that there will be a major transformation of the global energy system over the coming decades as governments aim to tackle climate change and energy efficiency takes effect. Singapore’s Minister for Trade & Industry (Industry) Mr S. Iswaran at SIEW said that new energy realities are characterised by lower-for-longer energy prices, new impetus of greener energy systems and key advances in technologies and energy systems and networks. Is there an under calculation around the interplay of old energy, and gas as a
transitional fuel, in a move to renewables following commitments given by nations in COP21? Old energy — fossil fuels including coal — is not going away. Nuclear remains a significant part of the energy mix. There is a miscommunication somewhere. A number of financial institutions and investors are quite binary in their views. Many European investors will not make new investments into greenfield or high emission projects. Coal however continues to play a significant role in the power sector.