Things have gone really well for the Singaporean electricity markets. Since the creation of the Singapore Electricity Pool in 1998, the start of the National Electricity Market of Singapore (NEMS) in 2003, and the stepwise deregulation of the consumer market, the electricity supply has become one of the most reliable in the world. The Energy Market Authority (EMA), set up in 2001, has successfully promoted an efficient and competitive market. But while the last group of retail consumers is about to be deregulated, darker clouds have arrived which will affect the future of the development of the electricity market.
In the last few years a lot of newly developed infrastructure has been commissioned. More that 3,000 MW of modern Combined Cycle Gas Turbine power generation capacity has been build. A new LNG terminal is now supplying almost 20% of Singapore’s gas demand. Although companies are expected to operate commercially driven, the crossroad between liberal market development and regulation provides many biased incentives.
The Singapore Power Desk explains and clarifies the commercial set-up of the Singaporean market and to highlight the biased incentives as a result of regulation. The postings are the result of our detailed studies done over the last few years. We encourage you to comment and discuss the topics at hand.