SINGAPORE (CNA) – Measures put into place to enhance Singapore’s energy security will be extended to the end of June, the Energy Market Authority (EMA) announced yesterday.
These extensions are in light of the global energy crunch and the conflict in Ukraine, EMA said.
“Global gas prices had increased significantly due to high demand and tight gas supply. The conflict in Ukraine has further exacerbated the risk of disruptions in gas and oil,” the agency said.
As around 95 per cent of Singapore’s electricity is generated from imported natural gas, consumers cannot be shielded from the global volatility and higher energy prices, it added.
“EMA will monitor the situation and consider extending the measures further if necessary, depending on the global energy situation and its impact on Singapore.”
First introduced in October last year, these measures include the establishment of a standby LNG facility which generation companies (gencos) can draw from to generate electricity when their natural gas supplies are disrupted.
Gencos have also been directed to maintain sufficient fuel for power generation, based on their available generation capacity, in addition to the existing requirement for fuel reserves that they are required to maintain under their licences.
Meanwhile, modified rules enable EMA to direct gencos to generate electricity using the gas from the standby LNG facility preemptively, if there are potential shortages in energy supply in the Singapore Wholesale Electricity Market, to maintain power system security and reliability.
These moves have helped ensure sufficient fuel and electricity supply, said EMA.
The authority added that such measures have also stabilised the Uniform Singapore Energy Price to around the cost of electricity production – an average of SGD350 per megawatt-hour (MWh) in the first quarter of this year, compared to an average of SGD460 per MWh in the fourth quarter of 2021.
The Temporary Electricity Contracting Support Scheme (TRECS) – which allows gencos to draw on EMA’s standby fuel facility to generate electricity – will also be extended to the end of June, said EMA.
This has helped large consumers such as businesses – with an average monthly consumption of at least 4MWh – secure fixed price plans and retail contracts with significant fixed price component.
“Thus far, participating gencos and retailers have been providing sufficient supply under TRECS to meet demand, on a voluntary basis,” said EMA.
