[ad_1]
SINGAPORE, October 26 – Singapore will import electricity from Malaysia next year in a trial to diversify the Republic’s power supply.
Making the announcement today, Trade and Industry Minister Chan Chun Sing said that the two-year trial will begin with the import of 100 megawatts (MW) of electricity.
“We will start with the import of 100 MW of imported electricity over a two-year trial period to see how the market works and see how technical challenges can be overcome.
“This will allow the region to share clean energy sources that different countries may have,” Chan said.
He spoke on the first day of Singapore International Energy Week, an annual energy conference involving international policy makers and industry commentators, held at the Sands Expo and Convention Center in Marina Bay Sands.
In a press release on Monday, the Energy Market Authority (EMA) said it plans to issue a Request for Proposal by March next year for 100 MW of electricity imports. The amount equates to roughly 1.5 percent of Singapore’s peak electricity demand.
The highest monthly peak demand last year was 7,404 MW in May.
Under the proposal, electricity imports could start in late 2021 through the existing electricity interconnector between Singapore and Malaysia.
Singapore currently does not import electricity.
More than 95 percent of Singapore’s electricity is generated from imported natural gas, most of which comes from Malaysia and Indonesia.
“To meet our commitments on climate change, it is necessary to change the way Singapore produces and uses energy. Leveraging regional power grids for cleaner energy resources is a strategy to further diversify Singapore’s power supply, ”EMA said in its statement.
The statutory board added that the test aims to evaluate and refine the technical and regulatory frameworks for importing electricity into Singapore to help facilitate larger-scale imports from the region in the future.
An importer will be selected through an open and competitive selection process. Prospective importers will need to demonstrate, among other things, their track record, their ability to secure demand from Singaporean consumers and how they manage carbon production from the generation supply.
Speaking at the conference, Chan said the test is a way to encourage more players to adopt energy efficient solutions.
“Moral suasion can only go so far. We will have to make sure we have the right market structures, the right incentives to drive the right behavior in a long-term sustainable way. “
In addition to the trial, EMA will also introduce an advanced capacity market in the next few years to provide power producers with greater certainty about power demand in the coming years.
Importers interested in testing can contact EMA at [email protected] for more details. – TODAY
