Singapore is preparing for a sharp rise in electricity consumption over the coming decade, driven by rapid growth in advanced manufacturing, digital technologies and the electrification of transport. The city-state’s Energy Market Authority (EMA) expects power demand to increase faster than in recent years as its economy becomes more energy-intensive.
According to EMA projections, electricity use is likely to grow between 2 and 5 per cent annually through to 2035, compared with an average of 1.9 per cent over the past decade.
Higher consumption from expanding data centres and growing use of air conditioning is expected to push up demand further, placing Singapore ahead of other developed economies in the region such as Australia and Japan in terms of growth.
Much of the additional requirement will continue to be met by natural gas, which already supplies over 95 per cent of Singapore’s electricity. However, the government is stepping up efforts to diversify its energy sources and expand access to cleaner power.
Limited land availability has made large-scale domestic renewable projects difficult, prompting the country to look towards imports of low-carbon energy from its neighbours.
By 2035, Singapore plans to import about six gigawatts of low-carbon electricity, which would account for roughly one-third of its total supply. At present, only about one per cent of its low-carbon power comes from Malaysia. The government views regional grid connectivity as central to reducing reliance on fossil fuels and strengthening energy security.
Singapore’s earlier agreement to import hydropower from Laos through Malaysia and Thailand was described by the EMA as a milestone in cross-border cooperation. However, progress has slowed as Thailand has yet to finalise terms for extending the deal. Officials in Malaysia have attributed the delay to domestic political changes in Bangkok but remain optimistic that the agreement will be renewed by November.
The EMA expects power flow from Laos to begin in the near future. Plans are also in place to start imports from Indonesia by 2028, while additional supply from more distant partners is likely only towards 2035. The agency has noted that such projects are complex, involving coordination among multiple governments, regulators and developers, and therefore require several years to complete.
Singapore’s energy planners believe that expanding cross-border electricity trade and maintaining investment in clean technologies will be essential for meeting rising demand while ensuring long-term sustainability and reliability of supply.
