28 Jan, 2019 9:32 AM / by Quek Leng Chuang
The National Electricity Market of Singapore (NEMS) has some unique characteristics, that presents the everyday electricity consumer advantageous opportunities. Compared to many other liberalised markets in developed urbanised cities, the Singapore market is presently relative stable. Here is why.
2015 marked a watershed in the chronological appreciation of the NEMs. 95% of all power generation in Singapore had adopted Liquefied Natural Gas (LNG) as fuel. Then in April 2015, the Electricity Futures Market (EF) opened. Which allowed consumers, generators and other stakeholders to manage their electricity price risk directly, instead of by proxy with High Sulfur Fuel Oil (HSFO) and United States Dollar (USD).
Being essentially totally dependent in LNG, absolves our electricity market from the vicissitudes of a mutli-fueled and sometimes mutually exclusive stresses to cost of power generation. While arguable, the Singapore government has also invested much to building a good LNG infrastructure, which help provides much needed fuel security any electricity market needs.
Singapore Power (SP) PowerGrid owns, operates and maintains 23,000 km of cables, transformers, and transmission devices, that make up the lifeline of the national electrical grid. From the arterial line connecting the power plants to the meter at your front door.
Equatorial Singapore doesn’t have seasonal climates, and geographically blessed with extremely low probability of natural catastrophes and swings of unpredictable weather. Simplifying modelling and forecasting consumption demand.
Over Supply of Generating Assets Vs Peak Demand
There is no paucity of supply assets in Singapore, with supply assets being more than twice the Max Peak demand. Layered on this a well structured, and tested demand response system that serves as a virtual backup power generating backup system.
The market operators
While main market operators all have an almost fiduciary obligation to provide and maintain stability in the market that is so necessary that electricity consumers have grown accustomed in entitlement. SP Grid, Energy Market Company (EMC) and even Power System Operator (PSO), Market Service Support Licensee (MSSL) etc while all registered as private entities function in unison with this coherent mission.
These unique characteristics make the electricity market and relative stable one. The stirling management and balancing generators’ supply with consumer demand by the Energy Market Company. The wholesale prices since 2015, has been relatively stable. Make it particularly advantageous for consumers to procure power directly at wholesale prices.
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Written by Quek Leng Chuang
LengChuang is a chemical engineer and an expert in carbonomics. He is the founder and owner of Environmental Solutions (Asia) Pte Ltd.