Siemens and Diamond Energy to Pilot Demand Response in the Commercial Building Sector in Singapore [Press Releases]
Siemens and Diamond Energy have signed a Memorandum of Understanding today, to collaborate on a multi-phased Demand Response services implementation, commencing with a pilot project that aims to demonstrate the feasibility of implementing customised technology and solutions to deploy IL operations, and to explore demand response in The Siemens Centre in Singapore.
The existing IL scheme in the National Electricity Market of Singapore enables consumers to be paid in return for having a portion of their electricity supply on standby for temporary interruption. Demand Response is a further enhancement to the electricity market which allows consumers to reduce or shift their power usage during peak demand periods in exchange for payments. In this way consumers are rewarded for being flexible in their electricity consumption and are able to benefit from having lower electricity purchase costs.
Under a multi-year partnership, a Demand Response pilot programme will be implemented by Siemens and Diamond Energy in a first of its kind pilot project at The Siemens Center in Singapore located at 60 MacPherson Road. Siemens will supply components such as smart meters and other communication equipment. It will also conduct site surveys for equipment installation, and supervise installations with engineering services provided by Diamond Energy.
Diamond Energy, the largest Interruptible Load Aggregator in the National Electricity Market of Singapore, will manage the IL operations and the pilot demand response programme using its proprietary platform. It has been working with the industrial and manufacturing sectors to participate in the IL scheme since 2006.
Following the completion of the pilot project, Siemens and Diamond Energy intend to showcase and present the technology and solutions under the pilot project to suitable potential customers in Singapore, to promote further implementations.
“Our mission at Diamond Energy is to provide energy management solutions that can help our customers lower their operating costs through our revenue generating Demand Response services, while contributing to a sustainable environment,” said Mr Zainul Abidin Rasheed, Chairman of Diamond Energy Group. “An effective Demand Response programme will bring about market-wide benefits in many areas, including pricing of electricity, resilience of the power system, and infrastructure planning and design.”
“The future of energy is a key concern globally, especially in terms of sustainable generation, intelligent distribution, and efficient consumption,” said Mr Lothar Herrmann, CEO of Siemens Pte Ltd. “Through this pioneering pilot project with Diamond Energy, Siemens hopes to be able to present, together with Diamond Energy, an innovative and efficient smart energy solution for commercial properties in Singapore and beyond.”
This pilot project is timely, as the Energy Market Authority (EMA) is reviewing the implementation of a Demand Response programme in the National Electricity Market of Singapore. Siemens and Diamond Energy believe that this project will provide a case study on the feasibility of demand side management operations which can be implemented in commercial buildings, and how the overall efficiency of the energy market in Singapore can be improved as a result.
Mr Chee Hong Tat, Chief Executive, Energy Market Authority of Singapore said, “The EMA is continuously seeking ways to enable consumers to manage their electricity consumption and enhance energy efficiency. One idea we are studying is the Demand Response initiative, which has also been implemented in some overseas jurisdictions. The project between Siemens and Diamond Energy can serve as a useful pilot on how businesses can benefit from demand side management initiatives. I hope it will encourage more companies to participate in such activities.“
The pilot project, when completed, is expected to provide significant reductions to the energy usage of The Siemens Center when called upon. Under the IL scheme, Diamond Energy will make payments to the participating contestable consumers based on their availability to reduce their electricity demand by pre-determined quantities when asked to do so.