SINGAPORE: Measures used by the authorities so far have helped to make sure uninterrupted energy provide and stabilised wholesale electricity prices here, said Second Ressortchef (umgangssprachlich) for Trade and Industry Tan Discover Leng in Parliament on Tuesday (Aug 2).
This means there is no need to bring the electricity marketplace under state manage within the short in order to medium term, he or she added in response to the parliamentary question.
The measures consist of setting up standby fuel facilities which usually generation companies, or even gencos, can draw from to generate electrical power when their natural gas supplies are disrupted. Authorities also needed gencos to bolster their own stockpile associated with fuel.
Doctor Tan noted the world has been facing an energy crunch given that last September, along with global gas costs increasing significantly.
Global energy markets are set to remain “volatile and elevated”, given the protracted conflict in Ukraine and a seasonal increase in energy demand from countries during the forthcoming winter.
Since Singapore relies on brought in natural gas to generate close to 95 per cent from the electricity, domestic power prices would not become spared from volatility in global markets, Dr Tan mentioned.
“The higher fuel prices internationally will result in higher household electricity prices, ” he added.
“While the electricity prices will have to reflect the higher cost of electricity production, it is essential that the global volatility does not disrupt our own electricity supply and impair the functioning of our domestic power market. ”
Dr Tan said the Energy Market Expert (EMA) will carry on and monitor the situation closely and “will not hesitate to expose new measures when necessary”.
Asked by MP Yip Hon Weng (PAP-Yio Chu Kang) in the event that there are considerations in order to diversify Singapore’s electrical power sources, the minister reiterated that the Federal government has been actively taking a look at ways to diversify and preserve the country’s energy security.
Other than the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, EMA has an ongoing request for proposal to import up to four gigawatts of electricity by 2035.
“EMA provides received various plans from countries in the area and beyond, showing the abundant renewable energy potential within this region, ” said Doctor Tan.
“We welcome these proposals, and we will diversify our own supply sources to obtain a reliable and lasting supply for Singapore. ”
Apart from electricity imports, the country will also continue to positively preserve some of its existing energy suppliers, while exploring additional energy sources such as solar energy and low-carbon alternatives like hydrogen.