Singapore Shares Initiatives for the Energy Market at the Singapore International Energy Week 2013
Mr S Iswran, Minister in the Prime Minister’s Office and Second Minister for Home Affairs and Trade and Industry, shares Singapore’s initiatives for the energy market at the Singapore International Energy Week (SIEW) 2013. SIEW is an annual gathering of global energy leaders from the government, industry and international organisations to discuss energy issues, strategies and solutions. This year’s theme, New Horizons in Energy, highlights the resurgence of new oil and gas supplies, and the emergence of technologies that are shaping global energy dynamics.
Singapore is currently diversifying its energy sources through the new Liquefied Natural Gas (LNG) terminal and preparing for solar energy. The LNG terminal started operations in May this year with a capacity of 3.5 million tonnes per annum (Mtpa), and the eventual plan is to expand the terminal with 4 tanks to boost its capacity to 9 Mtpa by 2016.The terminal helps to enhance energy security and allow Singapore to explore opportunities in LNG trading, break bulking and bunkering.
Singapore is also investing in solar R&D and test-bedding. The Energy Market Authority (EMA) is preparing its power system to effectively incorporate solar energy when it becomes commercially viable, through enhancing its system operations capabilities, building up solar forecasting competencies, developing an understanding of the diversity of solar output across Singapore, and studying how intermittent sources can be accommodated without affecting grid stability.
EMA will be launching a public consultation on the regulatory framework for intermittent generation sources, such as solar energy. This would include consultation on how the market registration procedures can be simplified to allow small consumers with intermittent generation sources to be paid for supplying their excess electricity to the grid.
Another initiative is the introduction of an electricity futures market to complement the spot market, which provides a platform for the electricity industry and consumers to hedge their risks, and bring about more efficient and competitive whole and retail markets. Following a year-long public consultation on the development of an electricity futures market in Singapore, EMA announced that six generation companies have indicated interest to collaborate with the Singapore Exchange to develop the futures market. The electricity futures market will be launched some time in the second half of 2014.
Mr Iswaran also announced that EMA has completed its consultation on incorporating Demand Response as part of the Singapore electricity market and has decided to proceed with the scheme. Demand Response enables consumers to reduce their electricity demand voluntarily in response to high prices. This can moderate price spikes, lower energy costs and generate system-wide savings. The scheme is expected to be implemented in 2015, and more details will be released in a Determination Paper to be released later this week.
SIEW also saw the first Singapore Energy Award being presented to the winners, including the recipient of the Individual Award, Mr Quek Poh Huat, Senior Adviser of Singapore Power; the recipient of the Organisation Award, Senoko Power; and the recipient of the Special Mention Award, Energy Carta.
Source credit: EMA
Image credit: EMA