Singapore solar investments save US$97 million in fossil fuel costs

Solar energy investments saved Singapore an estimated US$97 million (S$123.8 million) in fossil fuel import costs related to power generation during the first five months of 2026. According to a report by the Finland-based Centre for Research on Energy and Clean Air (CREA), these savings were primarily driven by avoided natural gas imports following energy price spikes caused by the crisis in the Strait of Hormuz.

CREA analyst Isaac Levi noted that the savings demonstrate the benefits of Singapore’s solar expansion programme, which has been underway since 2020. Approximately US$40 million of the total savings resulted from avoiding the additional premiums imposed on natural gas during the Hormuz crisis.

Despite these savings, the report highlighted that Singapore’s continued reliance on imported fossil fuels—which account for over 95 per cent of the nation's power generation—resulted in US$8.1 billion in additional gross fossil fuel costs in the six months following the outbreak of the US-Iran war. This placed Singapore 13th among 171 territories for extra fossil fuel import costs, trailing behind nations like China, India, and the United States.