Investments in solar energy saved Singapore an estimated USD97 million in power-related fossil fuel import costs over five months in 2026, following a spike in energy prices linked to disruptions in the Strait of Hormuz. Nearly all of the savings came from reduced natural gas imports, including around USD40 million from avoiding additional gas premiums associated with the crisis.
Singapore’s solar expansion has reduced the need for imported fossil fuels for power generation since 2020. The country raised its solar deployment target from 2 GWp to 3 GWp by 2030 after achieving its initial target in 2025. Solar currently accounts for around 2 per cent of electricity demand, while the 3 GWp target is expected to meet about 4 per cent of demand by 2030.