Singapore’s energy scene is experiencing one of its most revolutionary decades. As the city-state speeds up its plans for sustainability, electrification, and technology growth, the Energy Market Authority (EMA) has predicted a substantial increase in electricity demand — an unmistakable indicator of opportunity and challenge for the country’s policymakers, industries, and energy suppliers.
According to the EMA’s latest projections released on 27 October 2025, Singapore’s electricity demand is expected to grow between 2% and 5% per annum through 2035, compared with the roughly 1.9% average annual growth seen over the past decade. The surge is attributed to rapid advancements in advanced manufacturing, digital infrastructure, data centres, and transport electrification. Collectively, these industries will redefine the country’s energy needs and impact how it sources, processes, and consumes electricity.
Key Drivers of Increasing Demand
The country’s strategic location as a technology, finance, and innovation hub internationally has resulted in the acceleration of energy-demanding industries in areas such as the digital and manufacturing sectors. Exponential growth of data centres due to cloud computing, AI applications, and fintech services has been a major driver of increased energy consumption. Data centres alone now account for around 7% of total electricity consumption in Singapore, a number that will continue to grow as AI workloads grow.
In the meantime, clean mobility and advanced manufacturing are also set to be major drivers. The country’s push towards transport electrification — from electric cars (EVs) to public transport — is introducing an additional dimension of continued demand. Singapore’s strategy of retiring internal combustion engine vehicles by 2040 means that the EV value chain will be a key driver of future electricity demand.
Besides, the country’s continued digitalisation and smart-city projects have boosted the consumption of electricity on the industrial and domestic fronts. As customers embrace smart devices, IoT technology, and electric products, total per capita energy demand is set to rise consistently.
Diversifying and Decarbonising Energy Sources
To meet this rising demand sustainably, EMA has outlined a multi-pronged strategy that balances energy security, affordability, and environmental responsibility. The cornerstone of this plan is low-carbon energy imports, with Singapore targeting up to 6 gigawatts (GW) of imported clean energy by 2035 — enough to supply roughly one-third of its total electricity needs.
These imports will be largely from regional partners under the ASEAN Power Grid project, with Singapore being able to access solar, wind, and hydroelectric power from neighboring countries like Malaysia, Indonesia, and Vietnam. Not only does this regional cooperation further the city-state’s green aspirations but it also enhances the collective energy resilience of Southeast Asia.
Locally, Singapore is increasing its solar capacity through rooftop installation and floating solar farms. The country’s floating solar installation at Tengeh Reservoir is still among the world’s largest inland solar installations, representing Singapore’s dedication to optimising renewable potential in the face of scarce land.
But since renewable energy is intermittent in nature, EMA emphasized the need for energy storage and smart grid technology. Singapore has also heavily invested in battery storage systems and grid management software in order to maintain stability despite fluctuating renewable inputs.
Energy Efficiency and Demand Management
In addition to expanding supply, the EMA is also pursuing demand-side management to discourage high consumption and encourage energy efficiency. These include programs that incentivize households and industries to install energy-efficient technology, use smart meters, and get involved in dynamic pricing plans that reward off-peak energy consumption.
EMA’s long-term strategy also incorporates digital innovation — using artificial intelligence and data analytics to predict patterns of demand and improve distribution. Through the integration of technology and sustainability, Singapore wants to preserve its global competitiveness without letting its carbon footprint get out of hand.
Implications for Businesses and the Economy
For companies that do business in Singapore — especially manufacturing, logistics, tech, and data service companies — this new energy picture holds both a challenge and an opportunity. Companies are being spurred to get in line behind the country’s Green Plan 2030 by enhancing energy efficiency, shifting toward renewable energies, and disclosing sustainability data publicly.
A greener grid also puts Singapore in a stronger position as a more desirable base for global companies placing ESG objectives high on their agendas. With growing global investors placing greater emphasis on sustainability, the EMA’s forward-thinking action puts the city-state as a competitive and reliable business centre.
Looking Ahead
The Energy Market Authority’s new outlook highlights a fundamental reality: Singapore’s energy transformation is not merely about keeping the lights burning — it’s about energizing the next chapter of national development sustainably. As the economy expands and electrification intensifies, the test will be to reconcile growth with sustainability, so that every extra watt of power fuels long-term value instead of green expense.
Singapore’s model — disciplined, data-driven, and forward-looking — might be used as a blueprint for other countries facing the same crossroads of digital expansion and climate stewardship. With clear policies, regional collaboration, and an innovation-driven approach, the EMA is positioning Singapore as a world leader in clean, secure, and smart energy management.
