Five new natural gas-fired power plants, an expanded power grid and increased energy storage capacity are among the key areas of development.
SINGAPORE: Singapore will embark on a five-year energy infrastructure plan to meet growing demand, with more power plants, an expanded power grid and increased solar capacity among the key developments.
The plan outlines Singapore’s upcoming infrastructure developments covering power generation, natural gas, the electricity grid, solar deployment, energy storage and low-carbon electricity imports.
According to the Energy Market Authority (EMA), Singapore's peak electricity demand as of August was 8.6 gigawatts (GW). Peak demand could reach between 9.9GW and 13GW by 2031.
“This increase will mainly be due to new demand from energy-intensive sectors such as semiconductor manufacturing and data centres, as well as wider use of electric transport,” EMA said in a media release on Monday (Oct 26).
“The pace of demand growth will depend on when these new developments come onstream.”
Delivering a lecture at the start of Singapore International Energy Week 2026 on Monday, Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng said the five-year plan would be the "most significant build-up of our energy infrastructure in decades".
He noted that over the past weekend, Indonesia began cutting gas supplies to Singapore. The reduction amounts to less than 2 per cent of the country’s total daily gas demand.
Dr Tan said Singapore has dealt with similar past disruptions without incident due to measures it had invested in over many years.
“So, for Singapore ... we can keep calm and carry on,” he added, reiterating his remarks on the topic after the People’s Action Party’s conference on Sunday.
“Our households and our businesses can be assured that our energy security is always at the top of our minds. We will continue to maintain, we will continue to expand our options, strengthen our partnerships around the world, and build even greater resilience.”
Singapore will not be able to "insulate" itself from regional or global shocks, such as the crisis in the Strait of Hormuz.
During a supply crunch, countries may prioritise their domestic needs, he said.
“This trend of resource nationalism is particularly concerning, especially if it undermines established contractual agreements. Such moves will increase business risks and deter investments in the energy sector, with negative long-term implications,” the minister added.
“For energy importers like Singapore, we will have to take into account the increased risks of such supply disruptions. And this is why we have established multiple lines of defence to give ourselves the ability to mitigate the impact of disruptions and to ensure adequate energy supplies across a wide range of scenarios.”
NEW SOLAR TARGET
To maximise domestic solar deployment and diversify Singapore’s energy supply, more solar capacity will be added to reservoirs, vacant land sites and building rooftops, EMA said.
The authority said that Singapore has achieved 2.3 GWp of solar capacity to date and is "well on track" to meet its existing solar target of deploying 3 GWp of solar by 2030.
It will work towards an expanded solar deployment target of 4 GWp by 2035.
Dr Tan said that solar energy is still Singapore's "most viable indigenous renewable energy source".
But even with a bigger push, solar power can meet no more than 10 per cent of the country’s projected electricity demand in 2050, he added.
EXPANDING POWER GRID
The power system will grow more complex as Singapore integrates more diverse and variable energy sources, said Dr Tan, adding that the grid must be able to handle greater variability in both electricity supply and demand.
Singapore is projected to invest up to S$5.3 billion (US$4.15 billion) between 2025 and 2029 to expand its power grid - 11 times the investments over the preceding five years.
These investments will support the building of seven new transmission substations by 2031, up from four in the previous five years.
The transmission cable network, which carries large amounts of electricity at high voltage from power plants to different parts of Singapore, will be expanded from around 7,700km currently to about 9,100km by 2030.
The distribution network, which comprises lower-voltage substations and electricity cables that deliver electricity to homes, industries and organisations will be strengthened to support new sources of supply and demand, such as solar panels and electric vehicle charging.
To support longer-term transmission needs as electricity demand grows, Singapore is studying the feasibility of more than tripling the length of cable tunnels from about 50km currently.
Cable tunnels allow for faster expansion of the grid, easier access to electricity cables for maintenance, and lower frequency and duration of road works for grid upgrades, such as laying new cables.
The extended network will also support areas with strong demand growth, such as Tampines Wafer Fab Park.
“Singapore’s electricity transmission and distribution network, such as substations and electricity cables, must also be expanded over time to support growing electricity needs,” said EMA.
NEW POWER PLANTS
Between 2026 and 2031, five new natural gas-fired power plants will be operational, which will expand Singapore’s electricity generation capacity by around 26 per cent from about 12 GW currently.
EMA is also evaluating proposals for additional natural gas-fired power plants that will be operational by 2032.
The agency will launch more requests for proposals over the next five years if electricity demand continues to grow strongly.
Singapore is also studying the feasibility of establishing a new energy cluster at Pulau Tekong.
New energy infrastructure on the island could include hydrogen-ready natural gas-fired power plants, a liquefied natural gas (LNG) terminal, and other low-carbon energy technologies.
Alongside additional power plants, Singapore is boosting its LNG regasification capacity from 10 million tonnes per annum (Mtpa) to 15 Mtpa when the second LNG terminal at Jurong Port becomes operational by 2030.
Further expansion of the first LNG terminal at Jurong Island is also being studied.
"Coupled with expansion of the natural gas transmission network, Singapore’s gas supply system will be poised to serve existing and new power plants reliably and with resilience," EMA said.
Natural gas contributes around 95 per cent of Singapore’s electricity needs currently.
BOOSTING ENERGY STORAGE CAPACITY
Singapore will also increase its energy storage capacity from around 350 megawatt-hours (MWh) currently to just over 1 gigawatt-hour (GWh) by 2030.
Energy storage systems help to balance fluctuations in energy supply and demand. These will play a critical role in supporting the future power system, Dr Tan said.
Such systems can respond quickly to supply disruptions. They can also store electricity when spare network capacity is available and discharge it during peak demand while network upgrades are underway.
This helps strengthen the reliability and stability of the power system, while managing fluctuations in renewable energy generation.
"These developments increase the need for flexibility – the ability to adjust electricity supply and demand when needed," EMA said.
As part of its plans to boost capacity, EMA has launched an Energy Storage Systems Vision and Industry Consultation Paper for the industry to propose practical energy storage technologies, business models, and projects that can be commercially deployed at scale.
The authority will also gather feedback on existing rules, technical requirements, and infrastructure constraints that could hinder the deployment of energy storage systems and how these can be addressed.
It will also develop requirements governing how these systems operate and enable them to be centrally controlled when necessary, depending on their size and role in the power system.
EMA is also seeking interest in forming an industry-led workgroup to share experiences, develop practical solutions and address barriers to deploying energy storage systems.
“Singapore’s power system is changing. Electricity demand is expected to grow rapidly over the next several years, driven by new large demand loads such as semiconductors, data centres, and electrification of the transport system,” said EMA.
The Ministry of Energy, Trade and Industry (METI) and Saudi Arabia's Ministry of Energy also announced on Monday a joint intent to establish a crude oil arrangement in Singapore.
Under the proposed arrangement, Saudi crude oil would be stored at the Jurong Rock Caverns on Jurong Island, and storage operations are expected to start in the second half of 2027.
The stored crude oil will support Singapore's energy needs should there be a supply disruption, and would also "enhance the resilience of Saudi crude oil supply chain in Southeast Asia".
EMA and JTC Corporation exchanged a memorandum of understanding with the Saudi Arabian Oil Company as a first step towards realising this arrangement.
LOW-CARBON ELECTRICITY IMPORTS
Singapore is also expanding its sources of low-carbon electricity imports, with EMA granting conditional approval to Sembcorp Utilities to import 1.3GW of electricity to Singapore.
Sembcorp Utilities is working with MY Energy Consortium and Petrovietnam Technical Services Corporation to source and integrate low-carbon electricity from regional and domestic resources, including offshore wind from Vietnam and solar power from Malaysia.
Over the next few years, the consortium will continue to develop the project, including obtaining approvals from the various jurisdictions, concluding power purchase agreements with buyers, and securing sufficient financing.
Sembcorp Utilities is working towards starting electricity imports from the project by 2035.
"Low-carbon electricity imports form a key part of Singapore’s strategy to decarbonise the power sector," EMA said.
Singapore has to date granted conditional approvals and conditional licences to electricity import projects from Australia, Cambodia, Indonesia, Malaysia, and Vietnam.
"EMA will continue to engage companies with credible and commercially viable proposals that can contribute to the decarbonisation of Singapore’s power sector,” it added.
To facilitate the flow of low-carbon electricity imports, Singapore will progressively develop sufficient electricity import landing sites to connect subsea cables to its power grid.
Detailed feasibility studies for a second electricity interconnection between Singapore and Peninsular Malaysia are underway. If realised, the interconnector could support up to 2GW of capacity by 2030, complementing the existing link which allows up to 1 GW of bi-directional electricity flows.
“Singapore will continue to monitor electricity demand and review its energy infrastructure plans based on evolving needs, to ensure that the power system remains reliable and resilient even as demand grows,” said EMA.
Dr Tan said that a connected regional grid where countries trade electricity and share reserve capacities would “lend considerable momentum to the energy transition” for Singapore and neighbouring countries.
Even as the government pursues decarbonisation, it must never come at the expense of Singapore’s livelihoods and system security, Dr Tan said.
“We will ensure that our market frameworks support a competitive and a commercially sustainable power sector, and that our households and businesses do not face an undue burden,” he added.