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Singapore Explores Nuclear Power for a Clean Energy Future

Energy and Utility

Business Honor
20 March, 2025

Small modular reactors could boost energy security and support decarbonization efforts.

Singapore is considering nuclear power as part of its long-term energy strategy to achieve decarbonization and energy security, according to industry leaders. Yoon Young Kim, Schneider Electric cluster president for Singapore and Brunei, highlighted the dependability of nuclear power, referencing the US Energy Information Administration (EIA), which stated a capacity factor of more than 92.3% for nuclear power in 2024. This renders nuclear power plants twice as dependable as natural gas plants.

Kim welcomed Singapore's initiative to develop nuclear energy capabilities, specifically in Small Modular Reactors (SMRs). "SMRs are well-suited for Singapore as it does not have the land and raw materials to produce large-scale renewable energy," Kim said in an interview with Singapore Business Review. "They are manufactured in factories, allowing for quick deployment and uniform quality. They also use less land and water compared to solar-powered facilities.

Singapore is home to a very high concentration of data centers, with a cumulative capacity of more than 1.4 gigawatts, further emphasizing the necessity for reliable energy solutions.

But concerns remain. Sanjeev Gupta, Ernst & Young Global Ltd.'s Asia-Pacific energy market leader, saw the potential for high energy density and low greenhouse gas emissions with nuclear power but warned against safety hazards, waste handling concerns, and initial capital outlays. He advocated a diversified energy mix that includes nuclear, hydrogen, and imported renewable energy to balance sustainability and energy security.

Singapore's commitment to nuclear power can be viewed in its 2025 budget that includes an August 2024 civil nuclear cooperation agreement with the US. Its government also set aside another $5 billion in the Future Energy Fund for energy transition infrastructure, such as low-carbon electricity imports via undersea cables and hydrogen initiatives.

Though nuclear energy promises much, specialists urge that Singapore look elsewhere for a cleaner energy future.