Budget 2025: S'pore to study potential deployment of nuclear energy

To ensure Singapore's energy resilience, the government will be studying the potential deployment of nuclear energy in the country.

During his Budget 2025 speech on Feb. 18, Prime Minister Lawrence Wong highlighted the need for clean power, describing it as a "major national imperative".

While one solution is to import low-carbon electricity from countries like Malaysia and Thailand, having a domestic source of clean energy is key as well.

"Our options are inherently limited because we do not have the natural resources nor the land to meet our needs using hydro, wind or solar power," said Wong.

Continuing to develop capabilities

Aside from low-carbon hydrogen, which Wong stated is tough to scale up commercially due to challenges in its production, storage and transportation, nuclear is "one established low-carbon energy source that is used globally".

Interest in nuclear energy has been increasing worldwide, and Wong added that Singapore's neighbours, Malaysia and Indonesia, have experience in nuclear technologies, having operated research reactors for some time.

As such, Singapore has been keeping a close eye on nuclear energy developments, as well as progressively building capabilities in nuclear safety.

This is "to keep our options open", Wong said.

Singapore will therefore continue to build up its capabilities and experience in civilian nuclear power, particularly in that of small modular reactors, which "have better safety features than conventional reactors".

Wong continued:

"Within the government, we will reorganise ourselves to provide greater emphasis on this work. We will need new capabilities to evaluate options and to consider if there is a solution that Singapore can deploy in a safe and cost-effective way."

Future Energy Fund

Wong also announced that he will be adding S$5 billion to the Future Energy Fund.

He emphasised on the need to "make major investments" in new infrastructure, and said that this cash flow will "further support our critical undertaking to secure clean power for Singapore".

The fund was set up in March 2024 to aid in the transition towards a net-zero future, and will provide financial support for energy transition projects.

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