New measures aim to save costs and enhance grid resilience.
Singapore’s Energy Market Authority (EMA) is expanding its Demand Response Programme, enabling more businesses to save on electricity costs while earning financial rewards by cutting energy usage during peak demand.
How It Works
Participants in the programme, such as businesses with battery energy storage systems (ESS) or electric vehicle (EV) charging stations, adjust their electricity consumption during peak hours by:
Using stored energy from in-house batteries.
Shifting operations to off-peak periods.
This reduces reliance on the grid, alleviating stress during high-demand or unexpected outages.
Achievements and Expansion
Between 2023 and mid-2024, the programme delivered over $700 million in savings to electricity buyers, including retailers. Deputy Prime Minister Gan Kim Yong announced its expansion at the Singapore International Energy Week 2024, stating that companies like ComfortDelGro, with nearly 1,000 EV charging stations, will join the initiative.
The programme’s broader adoption aims to address challenges posed by Singapore’s transition to renewable energy, such as intermittent solar energy and variable electricity imports.
Eligibility and Benefits
Eligible businesses include commercial and industrial firms buying electricity from retailers or the wholesale market. Key criteria include:
Battery capacity: Between 1MW and 10MW.
Reduction capacity: At least 0.1MW during peak periods, with adjustments required on three minutes’ notice.
Participants can earn incentives based on reduced electricity prices, with payments averaging $2,800 per megawatt-hour (MWh) in 2023. Penalties apply for those delivering less than 80% of promised energy reductions.
Broader Impact
EMA estimates over 400MW of untapped demand flexibility in Singapore, with over 100MW utilised during a two-year pilot. This energy reduction equates to powering nearly 300 four-room HDB flats for a month.
Residential consumers are also engaged through a demand flexibility pilot offering cash rewards for reducing electricity use during peak periods.
Economic and Environmental Benefits
The programme has eased pressure on wholesale electricity prices, reducing costs by approximately $200 per MWh from January to September 2024. It also supports businesses managing higher operational expenses amid inflation.
With this initiative, Singapore aims to enhance its energy grid’s resilience, optimize costs, and support its sustainable energy goals.
