Message from Our President and Chief Executive Officer

The success of our business depends on our commitment to high standards of business conduct, respect for the environment, close relationships between our partners and our people, and our contribution to Singapore.

Welcome to Tuas Power’s second Sustainability Report. In this report, we provide a comprehensive set of information on our social, environmental and economic performance in 2012 and 2013.

The last two years have been marked with significant developments. We replaced our Stage I steam plant with a more energy efficient combined cycle plant (CCP5) and commissioned our first integrated multi-utilities plant at the Tembusu Multi-Utilities Complex (TMUC) at Jurong Island.

The Singapore LNG terminal commenced operations in 2013, enhancing the security of fuel supply and spurring the growth of new gas-fired combined cycle plants. This surge in new capacity outstripped the growth in electricity demand, exerting a downward pressure on electricity prices. The market will need some time to absorb the new capacity.

Amidst the challenging landscape, we maintained open communication with our regulator, Energy Market Authority (EMA) and work closely with them to ensure safe and reliable power supplies for the people of Singapore.

Apart from economic challenges, the industry was focused on manpower development to ensure a sustainable workforce in the power industry. The Ministry of Trade and Industry set up the Power Sector Manpower Taskforce (PSMT) in 2012. The gencos provided recommendations on identifying, developing and affirming strategies required to build up our industry’s manpower capabilities. These recommendations were supported by the Singapore government, and the actions were initiated in 2013, led by EMA.

Another key challenge we face alongside every player in our sector is how to provide Singapore with the power it needs, whilst minimising the impact of climate change. Given our country’s lack of natural resources and limited options for renewable energy, our focus has and always will be on becoming as energy efficient as possible. We invested in combined cycle technology and a multi-utilities plant in TMUC – both offering high system efficiencies. 2013 also marked the year that the Singapore Energy Conservation Act came into force. We take this new regulation as an opportunity for innovation and have set up an energy management system to drive conservation and efficiency efforts.

We have diversified our fuel sources to ensure delivery of reliable and consistent power supplies. As a result, we are now using several types of fuel to power our plants comprising of fuel oil, diesel, natural gas, coal and biomass. We remain committed to ensuring our energy and greenhouse gas emissions intensities improve over time.

The success and development of our business is dependent on our commitment to high standards of business conduct, respect for the environment, the close relationship with our staff, customers and all those in our supply chain, and our contribution to the wider community of Singapore. I remain confident that we have in place a sound framework of sustainability policies and management systems to help us achieve success as we look to the future.

I wish to pay tribute to our staff. Without their skills, innovative thinking and perseverance, we would not have successfully executed our significant investments. Within this report you will find information and data about the steps we have taken to ensure their well-being. Though we did not meet our target of zero Lost Time Injury (LTIR) in 2013, we have initiated corrective actions to prevent and eliminate recurrence in future.

I hope that you find this report interesting and informative and that it contributes to the discussion about the sustainability of Singapore’s energy supplies. If you have any comments or questions, please e-mail us at sustainability@tuaspower.com.sg or via the link on our website.

Mr Lim Kong Puay

President and Chief Executive Officer