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Collaborating for Change: Sembcorp Industries Leading Southeast Asia's Energy Transition

30 Jul 2024
Featured Stories 30 Jul 2024

Valerie Lee, Head of Corporate Affairs (Singapore & Southeast Asia), Sembcorp Industries

What is Sembcorp’s view on the energy transition in Southeast Asia? What are some of the key issues and challenges to be addressed?

By 2040, Southeast Asia is projected to see a 60% surge in energy demand. This highlights the critical need to diversify energy sources. Although the region is still in its early stages, good progress has been made with significant investments in developing clean energy infrastructure. Several collaborations to explore the deployment of low-carbon technologies are ongoing as well. Many countries are also committed to achieving their net-zero targets.

However, challenges such as funding constraints and power grid integration issues remain. Each country is at a different stage of development and has its unique set of priorities. For instance, some of the larger economies in Southeast Asia will need substantial foreign investments for the transition while cost efficiency and bankability of renewable projects are still a challenge in developing countries.

Energy security, accessibility and sustainability must be considered to ensure a smooth transition to a cleaner energy future.

Closer to home, Singapore is also making its shift towards cleaner energy sources. Where does Sembcorp see itself making a difference in this context?

As a small city-state, Singapore faces challenges in its energy transition due to limited land availability and the lack of access to renewable energy sources such as wind and tidal power. Nonetheless, the government has initiated several projects to decarbonise energy-intensive sectors, collaborate on pathfinder projects, and promote cross-border frameworks. These include the National Hydrogen Strategy to leverage the potential of hydrogen as a decarbonisation pathway, and the recent establishment of the Future Energy Fund to support infrastructure investments and catalyse energy transition projects.

To mitigate these challenges, Sembcorp invests in capabilities and technology. We operate Southeast Asia’s largest energy storage system across two hectares of land in Jurong Island, Singapore. Its rapid response time to store and supply power in milliseconds is essential in mitigating solar intermittency caused by changing weather conditions in Singapore. We have also been working with JTC to solarise temporary vacant land. Our first solar land farm in Tuas, spanning nearly 10 hectares, incorporates a first-of-its-kind integrated rainwater harvesting system. Recently, we were awarded another JTC tender to solarise interim vacant land and rooftops of five buildings on Jurong Island with a contracted capacity of 117 megawatt-peak (MWp).

The 17.6 MWp Sembcorp Tuas Solar Farm will generate enough energy to power about 4,700 four-room Housing Board flats a year.

Singapore is a core market for Sembcorp. We offer a diversified range of product lines across our natural gas and renewables pillars. For over 25 years, Sembcorp has supported Singapore’s growing energy demands, from pioneering the transition of Singapore’s energy source from oil to gas to being a leader in renewables. Our existing gas assets support Asia’s need for energy. To drive decarbonisation, we are working with partners to explore the use of hydrogen and ammonia as a fuel source in the energy and industrial sectors.

What are Sembcorp’s main focus areas in the region regarding renewable energy? 

Within Southeast Asia, Singapore, Vietnam and Indonesia are our focus markets for renewables growth.

As a homegrown energy player in Singapore, we have established ourselves as the largest solar energy player, contributing to over half of the nation’s 2025 target of 1.5 gigawatt-peak (GWp). We have invested in Vietnam for more than 27 years and have built an award-winning brand name through our urban development expertise and are scaling up our renewables portfolio to support the country’s transition goals. This year, we also marked our first foray into utility-scale solar development in Indonesia with a large-scale integrated project that includes 50 megawatt (MW) of solar capabilities and 14 megawatt-hour (MWh) of energy storage in Nusantara.

Through a deal with Gelex Group, Sembcorp will add 245 MW of operational renewable wind, solar and hydropower assets to its current portfolio in Vietnam and expand its renewable presence in the country to over 450 MW.

We recognise that each country has different energy needs and is at varying stages in their energy transition journey. Many countries in the region have abundant renewable energy sources but are still reliant on traditional energy due to financing hurdles, disparity in energy access and cross-border grid connection challenges. Sembcorp will continue to work closely with our regional partners to develop renewable energy projects and low-carbon initiatives that will contribute to a sustainable and resilient transition.

Regional cooperation plays a vital role in achieving Singapore and Sembcorp’s renewable energy goals. Sembcorp has been granted a conditional approval by EMA to import 1.2 GW of renewable electricity from Vietnam to Singapore. We have also signed a joint development study agreement with Indonesian state-owned utility company PT PLN to explore the feasibility of green hydrogen production in Indonesia for export to Singapore.

The deep collaboration between several stakeholders and partnerships are key to these projects.

What motivated Sembcorp to launch its Climate Change Strategy in 2018, and how has the plan evolved?

The launch of our Climate Change Strategy was timely, considering the rapid global shift towards a low-carbon economy which brought about significant disruption, risks and opportunities in the energy market. As a company with a long-standing commitment to sustainability, we recognised our responsibility to reduce emissions and support the energy transition of the economies which we operate in.

The Climate Change Strategy outlined what Sembcorp then viewed as key drivers of the energy transition and why climate change matters to us. In 2021, we unveiled a refreshed plan in 2021, focused on expanding renewables and reducing emissions.

After achieving significant progress against those targets announced in 2021, we recently introduced our 2023-2028 strategic plan with more ambitious targets:

  • By 2028, to increase gross installed renewables capacity to 25GW and halve emissions intensity to 0.15tCO₂e/MWh from 0.29tCO₂e/MWh in 2023
  • By 2030, to reduce absolute emissions by 74% (from 2023 levels) to 2.7 million tCO₂e
  • By 2050, to deliver net-zero emissions (Scope 1 and 2)

How is Sembcorp leveraging advancements in technology to grow its renewables portfolio?

At Sembcorp, we understand the importance of leveraging technology and digital platforms in gaining a competitive edge and solidify our position as a leading renewables player in Asia. Smart technologies can enhance our operations. For example, we use an online monitoring system and drones to track the performance of our solar assets to ensure they are operating optimally. Our solar panel cleaning robots also provide a smarter and more cost-effective solution.

Furthermore, our carbon management business, GoNetZero™ offers a suite of digital services which now includes NetZeroOS, a smart energy asset management platform that enables asset owners and operators to monitor assets and optimise their generation yields.

Drone technology is being used in the operations and maintenance of Sembcorp's floating solar and solar land farms to help perform regular and rapid remote visual inspection of the entire farm.

At the heart of every organisation are its people. How does Sembcorp ensure its employees stay relevant to the dynamic demands of the sector? 

Manpower development is an important part of ensuring the sustainability and long-term growth of our business. As a strong supporter of the SkillsFuture movement, we use the Skills Framework to create our own training programmes and promote a culture of lifelong learning within the organisation. We encourage our employees to build skills and find ways to participate in new areas. For instance, employees who used to run our gas-fired power plants are now also trained to manage our green energy solutions such as Energy Storage Systems.

The Sembcorp Academy is our centralised global learning management platform, featuring a range of learning modules, including instructor-led and virtual sessions, on-the-job training, asynchronous e-learning, and external programmes such as LinkedIn courses. The Academy currently offers close to 400 bite-sized e-learning courses to employees across the group. These courses are holistic and cross-functional, designed to meet Sembcorp’s evolving business needs and capabilities.

And about 60 of these courses specifically focus on renewable energy, aiming to equip all employees with the necessary skills, competencies, and proficiencies to excel in their roles. By emphasising on digital content, our employees are able to upskill remotely, fostering a culture of continuous learning where they are empowered to take charge of their own development.

Besides the Academy, our solar business unit works with Institutes of Higher Learning such as Singapore Polytechnic and Institute of Technical Education to develop certified curriculum focused on solar energy competency. This ensures a high-quality and safety standard during the development of Sembcorp’s photovoltaic systems and in turn, helps with the upskilling of the local workforce in the industry. As a testimony to this, Sembcorp Solar Singapore was conferred the Singapore Energy Award 2022 by EMA for playing a core role in driving capability development in Singapore’s solar industry. That same year, we were also awarded the SkillsFuture Employer Awards (Gold).

What does Sembcorp want to be known for in the journey towards a net-zero future?

Sembcorp’s purpose is to drive energy transition. We are committed to leading this transition as a prominent Asian energy player.

While the path towards a net-zero future is ambitious, we believe it is possible through collective action. Collaboration has been foundational to how we approach our decarbonisation efforts, and we aspire to rally all stakeholders and partners to join us on this journey.

Sembcorp’s inaugural thought leadership forum – Sembcorp Energy Insights 2024 – brought together a distinguished group of industry and government leaders from diverse fields under one roof, fostering a dialogue on the shift towards sustainable energy.

All photos courtesy of Sembcorp Industries


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