Singapore will be seeking bids to increase its electricity generation capacity by 2028 to meet the growing energy demand as the Government moves towards a centralized process to coordinate such investments by the private sector. The Energy Market Authority (EMA) will launch a request for proposals in the second half of 2023. Based on EMA’s preliminary forecast, system peak demand in Singapore is projected to grow at a compounded annual growth rate of 4% – 6%, with demand reaching between 10.1 gigawatts (GW) and 11.7 GW by 2028.
The market currently dictates investments in new power generation technology and capacity. Power generation companies (gencos) make decisions regarding electricity production based on various commercial factors, including their own business strategies, electricity demand projections, and price signals in the Singapore Wholesale Electricity Market.
To mitigate the risks of fluctuating electricity prices and potential blackouts, the Energy Market Authority (EMA) is currently seeking public and industry input on a proposed centralized process framework. This framework establishes a comprehensive approach to ensure Singapore maintains an adequate overall generation capacity. Under the proposed centralized process, EMA will monitor Singapore’s generation capacity and forecast electricity demand to determine the amount of generation capacity needed to meet the nation’s needs five years ahead.
(Sources: Energy Market Authority; The Straits Times)
