Speaking on March 4th 2021 at the Committee of Supply 2021, second Minister for Trade and Industry Tan See Leng said that "over the medium to long run, electricity prices…
Do Electricity Prices depend on Supply and Demand?
The Energy Market Company (EMC) determines the Singaporean wholesale electricity price based on supply and demand. It uses a sophisticated model which takes into account the physical characteristics of the…
Singapore’s Power Supply Cushion – How to solve a Problem like Maria
In the last few years, the Power Generation Sector in Singapore has been struggling along with too much production capacity and too low prices. The Supply CushionSupply cushion is the ratio…
Singapore Carbon Tax is a tax on Consumers
In his Budget speech on 20 February 2017, Finance Minister Heng Swee Keat announced plans to implement a Carbon Tax from 2019. The Government is looking at a tax rate in…
Loss-making Power Generation Sector – the Spark Spread Revisited
We reported previously that the Loss-making Power Generation Sector in Singapore requires Bold Steps to improve its gross profit margin (i.e. Spark Spread) and profitability. Investments in new power plants during 2011-2013,…
Vesting Contracts made Singapore Consumers pay 2.7 Billion SGD over last 4 years
The Energy Market Authority (EMA) introduced Vesting Contracts in 2004 to curb the exercise of market power by the power generating companies (the Gencos). These contracts work well when the market…
Loss-making Power Generation Sector in Singapore requires Bold Steps
Things have gone really well for the Singaporean electricity markets and power generation sector. Since the creation of the Singapore Electricity Pool in 1998, the start of the National Electricity…
Singapore’s Market Model
In the wholesale market model that is used in Singapore, generation plants are dispatched based on their offers for electricity. The generation companies (the Gencos) offer electricity based on a Short Run…
LNG Vesting Scheme
In 2010, the Energy Market Authority (EMA) introduced the LNG Vesting Scheme, where LNG is factored in as a source of fuel when determining the Vesting Price of the Vesting…
Vesting Contracts
The Energy Market Authority (EMA) has promoted efficiency and competition in the electricity market for the benefit of consumers. Aiming to curb the exercise of market power by the power…