Participants are expected to also develop hydrogen and low-carbon solutions in order to develop a greener power system.
Singapore’s power consumption has been steadily increasing, with hot weather pushing peak demand to an all-time high in May. The new 600-megawatt power plant could help alleviate periods of tight supply that have triggered spikes in spot electricity rates.
“With the anticipated growth in energy demand, it is crucial that we establish measures to meet future needs,” says Ngiam Shih Chun, EMA’s chief executive officer.
EMA will also implement an improved regulatory framework for electricity retailers, in order to strengthen the existing market structure. The changes will include requiring power retailers to have a tangible net worth of at least $1 million at the time of licence application or renewal, to ensure they have sufficient financial standing.
See also: Sembcorp’s subsidiary signs agreement for potential import of green electricity from Sarawak
These retailers must also hedge at least 80% of their retail contract position and give a performance bond for any unhedged position.
Retailers will also need to seek the regulator's approval before appointing key office holders.
EMA will progressively roll out the enhancements to its regulatory framework for electricity retailers from August.
