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Singapore Launches Pilot Program to Reward Households for Reducing Electricity Usage During Peak Hours

Residents with smart meters will be incentivized to manage electricity consumption to ease grid demand.

Singapore – A new pilot initiative, Residential Demand Response (R-DR), has been introduced to encourage households to manage their electricity usage during peak demand periods. The program, aimed to start in the second half of 2024, will initially involve around 1,000 households equipped with smart electricity meters provided by SP Group, a local utilities firm.

The initiative seeks to alleviate pressure on Singapore’s electricity grid, which often experiences peak demand in the afternoons and during the hotter months. The Energy Market Authority (EMA) reported that demand peaks typically coincide with times when both residential and industrial energy use is high, especially in hot weather conditions.

When peak demand periods occur, residents will receive alerts via the SP Group app, encouraging them to temporarily reduce their energy usage. Participants may be advised to delay using high-power appliances, such as washing machines or dishwashers, lower the temperature on their air conditioners, or even turn them off.

The goal of the program is to reduce the strain on the power system, preventing price hikes and ensuring stability in energy delivery. In 2023, Singapore witnessed an 8% increase in peak demand from 7.3 gigawatts (GW) in February to 7.9 GW in May, exacerbated by high temperatures, with a record of 37°C in Ang Mo Kio, the hottest in 40 years.

Households play a crucial role in managing demand, contributing to about 15% of the total national electricity consumption. To further incentivize participation, residents who successfully reduce their electricity usage during these peak periods will be rewarded with financial incentives.

This initiative is part of Singapore’s ongoing efforts to ensure a reliable and sustainable energy supply while engaging the public in energy-saving practices.

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