In a move which has been a boon to Singapore's growing clean technology industry, one of the world's largest integrated wafer, cell and module manufacturing facility was opened in Tuas by Norwegian firm Renewable Energy Corporation (REC) on 3 November last year. The ceremony was attended by Guest-of-Honour, Prime Minister (PM) Lee Hsien Loong, Leo Yip, Chairman of the Singapore Economic Development Board (EDB) and 500 other guests.

At S$2.5 billion (US$1.95 billion), this is the largest single investment ever made by REC and the third largest foreign green field investment ever made by a Norwegian company. The modules produced by REC's new plant for 2011 will offset 25 million tonnes of carbon dioxide emissions throughout its lifetime, producing enough electricity to meet the annual energy needs of 150,000 Singaporean households.

Singapore Chosen for its Skilled Workforce

Over 200 potential sites were considered before REC chose Singapore as the location for the 321,000-square metre state-of-the-art complex. Singapore's highly skilled and motivated workforce, ranging from managers to operators, was the main reason why the country emerged as the ideal location for REC's plant. Singapore's strength in the semiconductor industry also meant that the country has a ready pool of talent with the requisite skills for the clean energy industry. Ole Enger, Chief Executive Officer & President, REC Group, said, "We selected Singapore because it has very competent people, and also because we are very satisfied with the Singapore government.” Enger added that the culture of continuous advancement and improvement also drew the company here.

The project was not without challenges. A few months into the construction of the facility, REC's project was hit by the financial crisis of 2007. Despite this setback, the project pulled through with support from shareholders, banks and the Singapore government. The company managed to complete the first phase of the construction at S$2.5 billion (US$1.95 billion) — 20 per cent below the initial budget and estimates. It has also introduced new capacity targets — initial volumes of 590 MW for modules will be increased to 800 MW in 2012, a 35 per cent increase compared to the original design capacity. When in full operation, the facility is expected to produce 190,000 solar modules per month, which will be exported to Asian, European and American markets.

Asia's Lead Market

The demand for clean energy in Asia has grown at an unprecedented rate in recent years. Japan, China, Taiwan, South Korea and India have ramped up their clean energy efforts. By 2014, Japan, China and India are predicted to have a combined demand of 15 to 20 per cent of the world's demand for solar cells, an increase of nine per cent from 2009. Because Singapore lies at the gateway to Asia, it is an ideal location for global corporations to develop and test new clean energy solutions and technologies for the Asian market.

The Singapore government has set aside S$1 billion (US$781 million) in a sustainable blueprint towards a greener, more efficient and sustainable Singapore. A key component of the blueprint is the promotion of cleantech as a new economic growth area, through governmental support for cleantech research and development (R&D) and manpower training. An established cleantech sector in Singapore is forecasted to contribute S$3.4 billion (US$2.6 billion) to gross domestic product by 2015, while providing 18,000 high quality jobs in Singapore.

Opportunities of the Future

Enger calls the plant's opening a "new dawn” for both REC and Singapore's solar industry. The opening marked the end of a three-year journey since the firm first announced its decision to set up the solar panel manufacturing plant in 2007. REC's investment in Singapore's cleantech sector is highly significant, as its scale will spur related businesses to follow in its footsteps. The country has developed several world-class industries in the past by clustering firms with complementary strengths together.

This model of development is being applied to the clean energy sector as well. "Singapore has developed a blueprint to grow the clean energy industry. This involves attracting high value, capital-intensive investments in manufacturing, developing the equipment and supplier base and building up strong R&D,” said PM Lee. The long-term goal is to grow Singapore into the leading Asian hub for system integration and project development in the clean energy sector.

With regards to REC's investment in Singapore, Yip said, "We congratulate REC on the successful completion and opening of its world-scale solar manufacturing plant. This marks a major milestone in the development of the clean energy industry in Singapore. EDB will continue to work with REC and other industry partners to strengthen the clean energy industry ecosystem through initiatives in research and innovation, as well as the development of a specialised manpower and supplier base."

An REC plant specialist inspects a solar module, one of the 190,000 that will be produced per month when the facility is fully operational