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SINGAPORE: SOLAR HUB IN ASIAGOH CHEE KIONG

EXECUTIVE DIRECTOR, CLEANTECHECONOMIC DEVELOPMENT BOARD

29TH JUNE 2015

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Singapore’s Solar Industry Strategy

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§ S$350 million funding to grow Clean Energy with focus on solar energy announced by Prime Minister Lee in 2007

§ Announced in 2011: Additional S$195 million in R&D funding and S$300 million for National Innovation Challenge on Energy Resilience

Singapore has identified clean energy as a key growth area

March 27 2007

Prime Minister Lee Hsien Loong

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Singapore is the regional hub for solar innovation and project development

Epicentre for Innovation and

Commercialisation • New technologies, applications and business models

• Customisation for tropics

Global control tower for project development and system

integration• Engineering centre• Supply chain management• Project development &

financing

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Singapore is the solar hub for Asia Pacific

International solar companies

Local solar companies

Wide range of regional HQ, R&D, system integration, project development and manufacturing activities

*This list is not exhaustive

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Singapore has a growing Energy Management Ecosystem

Grid AnalyticsCharging Service

ProviderCar Sharing Service ProviderDeveloper of Smart Charging Network System

Smart Communications

Platform, Sales & Biz devt team for Asia

Engineering Team for AMI Solutions

Co-Innovation Lab for Energy

Mgmt & Demand Response

Advanced Metering Infrastructure

Smart Communications Platform,

Project execution team

Home Energy Mgmt R&D team

Smart Utilities R&D team

Total Energy Solutions Incubation team

Energy Management Systems

Smart Energy Business

Incubation Centre

Smart Grids/Microgrids

Services

Asian COE for smart grids

Green Data

Centres

R&D and testbedding

Demand Response

Demand Response Provider

Asia Biz devt & Project execution

teams

Regional Headquarters

Global HQ in cloud-based energy mgmt

Smart Grids Centres of Competence/ Project Execution teams

Electric Vehicles

Grid Simulation & Modelling

Centre of Excellence for Grid Simulation & Modelling

Consulting services

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4 main drivers to support industry growth

TECHNOLOGY MARKET CAPITAL TALENT• Strong

commitment to research & innovation

• Solar Energy Research Institute of Singapore (SERIS)

• Living labs with growing base of local projects

• Springboard to Asian Sunbelt market

• Growing base of project financing and VC/PE firms

• Specialised manpower training programmes and scholarships

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Solar Energy Research Institute of Singapore (SERIS)Asia’s top solar research institute, outside of Japan5 research domains

Novel PV concepts Silicon PV PV modules

Solar Energy

Systems

Solar & Energy

Efficient Buildings

Deputy CEOProf Thomas ReindlProf Armin Aberle

International Research Leaders

CEO

§ Cell cost reduction and efficiency improvements

R&D collaborations with industry

§ All-back-contact high efficiency solar cells

§ Accelerate solar deployment across government

§ Central coordination and aggregation of solar demand by EDB & HDB

§ Build up local capabilities in solar leasing and system integration

§ Achieve cost savings, reduce carbon footprint & enhance energy diversification

§ Opportunities to develop solutions to manage intermittency

Target of 350 MWp of solar across government

by 2020

SolarNova ProgrammeGovernment taking the lead for solar adoption

Source: The Straits Times, 7 March 2014Army Camps

Public Housing Estates (HDB)

Schools

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§ PUB aiming for energy independence (50% reduction) in water facilities in 10 years§ S$11 mil floating PV trial project by EDB, PUB and SERIS in Tengeh

reservoir§ Encourage industry participation for R&D and testbedding§ Benefits: (i) improved solar module performance, (ii) reduced water

evaporation§ Up to 1MW of 100kW systems in Phase 1, ~ 3MW of systems in Phase 2§ 7 PV companies have been selected for Phase 1

Floating PV Testbed

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New Business and Financing Models

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Innovative business models in the solar industry

• No upfront CAPEX required

• Users pay for solar electricity instead of systems

• Increasing system/tender sizes

• No upfront CAPEX required

• Users pay for solar electricity instead of systems

• Increasing system/tender sizes

Solar Leasing (PPA)

• Solar generated on rooftop is “consumed” at another location

• Backend accounting of green credits by retailer

• Solar generated on rooftop is “consumed” at another location

• Backend accounting of green credits by retailer

Offsite PPA• Building owner provides

rooftop space to solar company

• Solar asset owner exports solar energy to grid directly

• Building owner provides rooftop space to solar company

• Solar asset owner exports solar energy to grid directly

Rooftop Leasing

• Direct ownership• Customer pays a fixed

monthly fee for a period of time until cost plus interest is recovered

• Direct ownership• Customer pays a fixed

monthly fee for a period of time until cost plus interest is recovered

Direct Ownership/Hire Purchase

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Financing Mechanisms

Business Trust

Green Bonds

Crowdsourcing

• Similar to yieldcos listed in the US e.g. Terraform Power and 8point3

• Enables recycling of capital

• Allow private and public companies to tap on the bond market to finance solar assets

• Allow investors to invest small sums into solar assets for a return over time

Futures Market

Exchange Platform

• Enables hedging to help companies mitigate risk of future electricity price changes

• Matchmaking of customers who want to install PV with system integrators

Enabling Platforms

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Project development and financing

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Rise of ASEAN 600+ million population market with fast-growing middle class

ASEAN Economic Integration AEC – a region with free

movement of goods, services, investment, skilled labour & freer flow of capital.

Growth Potential of ASEAN1999 to 2012, ASEAN

grew by 5.5% annually. Despite some headwinds, growth rates expected to sustain.

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ASEAN: promising RE market supported by microgrid solutions

• One in five of Southeast Asia's 600 million people do not have access to electricity

• Countries pushing for rural electrification e.g. Indonesia intends to complete 90% of electrification by 2025

• ASEAN’s demand for energy is expected to increase by 80 percent between 2013 and 2035

• RE expected to be one of key contributors

Rural Electrification

Growing Energy Needs

Geography of ASEAN• Geography of ASEAN requires offgrid/ microgrid

solutions§ 17,500 islands in Indonesia§ 7,100 islands in the Philippines

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Singapore is the Ideal Platform to Access Growing Solar Markets in APAC

• Largest solar market in Southeast Asia with >500MW of installed capacity

• Target of 3GW by 2021

• 2nd largest market in the world

• 12 GW expected to be installed in Japan in 2015

• >3GW installed capacity

• RE target of 23% of electricity supply by 2020

• Largest solar market in the world

• Target of 100GW in 2020

THAILAND

JAPAN

CHINA

SINGAPORE

APAC – world’s largest solar market

• ~50% of global PV demand• 35% annual growth from 2013

AUSTRALIA

• Promising solar market

• Target of 100GW by 2022

INDIA

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Equity Players RE Debt Financing Advisory / Consultancy

Multilateral/Export CreditFirst Business Trust

Framework in the World

Project Developers / System Integrators

Vibrant project development & financing ecosystem

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“Solar Plus”

2020

LOADSGENERATION SOURCES

TRANSMISSION & DISTRIBUTION

Thriving EV/car sharing ecosystem

High solar penetration with leading expertise in intermittency management

Natural gas trading hub; vibrant energy derivatives market

World-class grid infra in stability and efficiency Sophisticated

implementation of behavioural economics for energy users

Demand response adoption and acceptance

Integrated approach to develop global leadership in sustainable energy management

Singapore Aspires For Leadership In Sustainable Energy Management

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Singapore’s Key Clean Energy Initiatives

SolarNovaLOAD

SGENERATI

ON SOURCES

TRANSMISSION & DISTRIBUTION

EV Phase 2

Singapore Power

Centre of Excellence

REIDS Energy Demonstrator at Semakau

Floating PV

Demand Response

Energy Storage

Programme

EcoCampus

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Renewable Energy Integrated Demonstrator – Singapore (REIDS)Southeast Asia’s first hybrid micro-grid which will test integration of solar, wind, tidal, diesel, storage and power-to-gas technologies at Semakau Landfill

Smart Grid and Microgrid Innovation PlatformsSingapore Power Centre of Excellence• S$30 million investment to build up our national grid operator’s innovation capabilities• Companies to leverage partnership to establish R&D and business activities in

Singapore

Near-commercialisation technologies for electricity,

gas, cooling and commsnetworks

Singapore Power

Centre of Excellence

Singapore Power

Centre of Excellence