THE government has outlined six new strategies to strengthen Singapore's energy industry and sharpen its competitiveness to meet the challenges of energy security and climate change.

Presenting the National Energy Policy Report on Monday, Trade and Industry Minister Lim Hng Khiang said it presents a holistic framework that balances Singapore's economic competitiveness, energy security and environmental sustainability to secure energy for growth.

It also set the target of increasing the value-add to the energy industry from $20 billion to $34 billion, and tripling jobs from 5,700 to 15,300.

Mr Lim, giving details of the new energy strategies at the Singapore Electricity Roundtable at the Raffles city Convention Centre, also announced the setting up of an Energy Studies Institute (ESI), a multi-disciplinary, autonomous energy research body at the National University of Singapore, which will look into energy economics, energy security and the environment.

Energy security has re-emerged as a key priority in regional and national agenda, with oil price soaring by 70 per cent in less than a year - from about US$53(S$76) in January to more than US$90 now.

The upward spiral is fuelled by Asia's strong economic growth and energy demand, compounded by under-investment in production capacity, geopolitical conflicts and adverse weather conditions in energy producing countries, which have held back supply.

Climate change
Climate change has also emerged as a major global environmental challenge.

Mr Lim said competitive markets will remain a cornerstone of Singapore's energy policy, with focus on the consumers.

The Energy Market Authority has started a pilot Electricity Vending System free up the electricity retail market.

If successful, households and other small consumers will in future be able to choose their own electricity retailers and price plans, in the same way they can do so for telecommunications.

Another key plank of the new strategy is to diversify energy sources as a protection against supply disruptions, price increases and other threats to energy security.

As part of this, a liquefied natural gas terminal is being built. Other efforts include R&D, test-bedding and demonstration of promising new energy technologies.

'Due to our geographical constraints, we have very little alternative energy sources beyond oil and gas. But at this point, we should not write off other energy options. As technology improves, more energy options will become viable for Singapore,' said Mr Lim.

Improve energy efficiency
The third strategy is to improve energy efficiency, which will not only save on energy costs, but also contribute to environmental goals.

The Government has developed a comprehensive national energy efficiency plan to promote the adoption of energy efficiency measures, raise public awareness, and build capability in energy efficiency.

For example, all new buildings and existing buildings undergoing major retrofitting work must meet a minimum green building standard, starting from next year.

Develop energy industry
The fourth strategy is to develop the energy industry.

Noting the tremendous opportunities in the energy sector, Mr Lim said besides growing the oil refining and energy trading sector, the government is also pursuing growth opportunities in clean energy, including solar energy, biofuels and fuel cells.

It has committed more than $300 million to build up the energy R&D capabilities.

Said the minister: 'Overall, our goal is to increase the value-added of the energy industry from $20 billion to $34 billion by 2015, and to triple the employment in the industry from 5,700 to 15,300.'

The fifth strategy is to step up international cooperation with key energy producers and take an active part in energy and energy-related discussions in major fora such as Asean, the East Asia Summit, the Asia-Pacific Economic Cooperation, and the United Nations Framework Convention on Climate Change.

The last strategy calls for a whole-of-Government approach.

'We need multiple Government agencies to put their heads together to deal with the complexities of energy. Apart from the Energy Policy Group, which was formed last year, several agencies have formed new units to manage the energy challenge.'

'The Ministry of Trade and Industry now has an Energy Division. The Economic Development Board and the National Environment Agency have set up inter-agency programme offices for clean energy and energy efficiency respectively,' said Mr Lim.

He added that the Energy Market Authority has also expanded its role from energy market regulation to take on the task of energy policy and planning.

EMA will take on a more developmental role for the energy sector, with the goal of enhancing Singapore's energy security and competitiveness.