WHAT IT IS ABOUT
The law made recommendations regarding the development and planning of equipment, the development of new market mechanisms, and energy security.
Tan Discover Leng, the second secretary for trade and industry, claimed that energy rationing might be necessary to maintain power balance in the event of a severe and long disruption to all of Singapore’s fuel imports.
People will have access to electricity for their daily needs, as well as receiving objective for services like medical and communications, and will be given as much advance notice as feasible.  ,
Businesses will not be held responsible if they do not fulfill their obligations by following EMA’s recommendations for power rationing.
Once the situation improves, the rationing measures will be lifted.  ,
” Power rationing is only a last resort. Dr. Tan, who noted that the UK has also implemented power rationing as part of its energy resilience strategy, said it is one part of Singapore’s preparation for an increasingly uncertain world.” I hope we will never have to use it.”  ,
The law establishes the Future Energy Fund for investments in clean energy projects that may involve significant commercial, technological, and geopolitical risks in addition to power rationing.  ,
The initial injection will be S$ 5 billion ( US$ 3.8 billion ) in FY2024, with further top-ups in the years to come.
Other proposals include:
- Owners and occupants of important energy infrastructure can be directed by EMA to grant electricity and gas licensees access to the infrastructure, which may include waterfront jetties and transmission cables.
- Requiring EMA’s approval when repurposing energy and gas assets
- allowing EMA to recover costs incurred as a result of initiatives it takes in order to promote energy security, market growth, and decarbonization. MTI stated that EMA will only take action when necessary and that the ministry must approve proposed new rates. EMA further stated that EMA will not attempt to turn a profit.
- Unless otherwise permitted, requiring prescribed power generation companies to only purchase gas from a central gas company, known as Gasco for the moment. By the end of the current fiscal year, Gasco is anticipated to be established as a government-owned business, which will purchase and supply gas to the power sector, increasing the scale of the operation. Singapore had stated that it would establish Gasco to reduce the volatility of electricity prices.
WHY IT MATTERS ,
Dr Tan said that the proposals will strengthen Singapore’s ability to “plan for and develop a decarbonised, secure, and cost-competitive energy system” against the backdrop of geopolitical, commercial and technological uncertainties which can threaten the country’s energy security.  ,
Given that Singapore still relies primarily on imported natural gas for its energy needs and lacks alternative energy sources, the proposals, particularly those aimed at centralizing gas procurement and power rationing, are intended to ensure energy stability.