Singapore’s electricity market to be made more responsive to demand
The government is launching, through the Energy Market Authority, a consultation process incorporating demand response, where consumers can curtail their demand in response to high prices.
Announcing this at the Singapore Energy Summit on Monday, S. Iswaran, Minister in the Prime Minister's Office, said that such a market for forward electricity products will complement Singapore's wholesale market.
Mr Iswaran claimed that industries will be consulted on how they can put in place control systems to shed energy loads when prices spike. Consumers will be able to hedge their risks by locking in longer-term prices, while power generation companies stand to gain by using the futures contracts to hedge against their fuel price and operational risks during plant outages. Currently, Singapore's electricity supply comes from five power generating companies.
The Government is inviting active stakeholders’ contribution. Singapore is looking to study implementation options and empower consumers by helping them make more informed decisions on energy use. The public consultation will also cover the possibility of an electricity futures market in Singapore, to bring about greater competition in the energy market, which will in turn benefit the end-user.
Mr Iswaran, who is also Second Minister for Trade and Industry noted that futures markets are already well-established for other commodities such as oil and gas. He said that Singapore's Liquefied Natural Gas (LNG) terminal is on track to start operations in the second quarter of next year. With the development of the terminal, Singapore will be well-placed to diversify its gas supply and tap on the global LNG market. Mr Iswaran said the demand for LNG is already stronger than initially expected.
To acknowledge achievements of players in the local energy sector, the Government has launched the Singapore Energy Award. The award will recognise organisations and individuals who have made contributions to develop Singapore's energy sector by enhancing the sector's capabilities and infrastructure, and advancing energy innovation.
Besides the various initiatives to boost Singapore's energy sector, there are also several research projects in areas of renewable energy and electric cars.