EXPERIENCES IN ASIA FOR INTEGRATION OF SMART GRIDS AND RENEWABLES:

THE SINGAPORE STORY

ISGAN Workshop 8 March 2016

Mr Eugene Toh, Director, Policy Department, EMA

EMA – who we are and what we do

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S’pore’s LNG Terminal

Research & Development

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“Keep the lights on”

Lead agency for energy matters in Singapore

Industry Regulator . Industry Developer & Promoter . Power System Operator

S’pore International Energy Week (SIEW)

Renewables Technology

Competitive Market

Building a Smarter Grid

• Singapore has one of the most reliable electricity systems in the world. Compared to other systems, Singapore’s grid has many “smart grid features” already built in, such as the Supervisory Control and Data Acquisition (SCADA) system, which allows remote monitoring and control of key installations.

• Smart grid initiatives will build on the existing core system to continue to deliver

efficient outcomes and value for stakeholders, including licensees and electricity consumers.

• Smart grid developments do not only pertain to physical infrastructure, but also encompass putting in place the policies, ecosystem and competencies within the industry to bring about the intended outcomes.

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3 Key Thrusts, Underpinned by Relevant R&D

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Strengthen core infrastructure

developments in electricity and gas

sectors

Develop enabling infrastructure and

policies to drive smart grid

developments

Develop a smart grid community

and facilitate uptake of smart grid applications

Research and development in relevant areas

Strengthening Core Infrastructure Developments

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KEEPING THE LIGHTS ON

Leverage on technologies and ICT to keep the system reliable and secure, including enhancing efforts to improve efficiency within sector, and

enhancing cybersecurity

Ensure that we have sufficient electricity and gas supply to meet Singapore’s demand

through land reservation

Developing Enabling Infrastructure and Policies to Drive Smart Grid Developments

• Developing “enablers” in infrastructure and policies to enable the necessary smart grid technologies to take off when they are commercially viable.

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Extension of

Retail Contestability

Launch of

Demand Response Programme

Launch of

Electricity Futures Market

Facilitate the Deployment of Solar

Energy

• Since the first phase of retail market liberalisation, Singapore has progressively opened the retail electricity market to competition to give consumers more options to manage their energy cost.

• To enable this, we are developing Advanced Metering Infrastructure (AMI) - to measure and read half-hourly electricity consumption data of these consumers, and potentially facilitate value-added services such as demand response or energy managements systems.

• This will empower more Commercial and Industrial consumers to source for better deals and buy electricity at competitive prices.

• The long term goal is to allow all consumers to choose their retailer of choice.

Lowering of Retail Contestability Threshold

More Consumers will be Eligible to Buy Electricity from Competitive Retail Packages

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Extension of

Retail Contestability

10,000 kWh

2003 8,000 kWh

1 April 2014

4,000 kWh

1 Oct 2014

2,000 kWh

1 Jul 2015

Fully Contestable

2H 2018

• Win-win outcomes for system and consumers • System benefits: Improves reliability and system efficiency through more intelligent

technologies

• Consumer benefits: Reduced bill size from avoided electricity cost and incentives payments for participation

Empowering Consumers with More Control Over Energy Usages

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Launch of

Demand Response Programme

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Consumption

Household

Industry and

Commercial

Demand Response

Energy Efficiency

Consumers voluntarily shift their electricity usage in

response to prices or supply conditions in the

electricity market for a short period of time.

Consumers

permanently

reduce electricity

usage by changing

consumption

behaviour

Power

generation Transmission

Distribution

• An Electricity Futures Market allows the trading of standardised contracts of electricity products into the future at specified prices.

• It provides a platform for generation companies to hedge their commercial and operational risks; and lower the barrier to entry for new independent retailers.

• This in turn allows consumers to lock in long term prices; and utilise the transparent prices provided by the futures market to negotiate their electricity retail packages with electricity retailers.

New Avenue for Consumers to Negotiate Long Term Electricity Prices

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Launch of Electricity Futures

Market

• Market interest in solar has been growing in Singapore. Since 2008:

The number of installations has increased from 30 to 886 (end 2015);

The installed capacity has increased from 0.3 MWac to 43.8 MWac (end 2015).

• The take-up is expected to accelerate over the next few years, as prices fall and

technology continues to improve.

Designing Smart Regulatory Framework for Solar Energy

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Facilitate the Deployment of

Solar Energy

• Previous status quo: either a producer or consumer, where electricity and revenue flow in single directions

• New paradigm: emergence of “prosumers”, where electricity and revenue can flow in both directions

Emerging Paradigm of “Prosumers”

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Consumption

and

Production

Household

Industry and

Commercial

Power

Generation

Transmission

and Distribution

Facilitate the Deployment of

Solar Energy

Enhancing the regulatory

framework for solar

Programme to aggregate

solar lead demand in

government buildings

Fostering a pro-business

environment by facilitating

new solar business models

PUBLIC

PRIVATE

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Supporting Solar “Prosumers” through Public-Private Collaboration

Facilitate the Deployment of

Solar Energy

Allowing Solar “Prosumers” to Receive Payment in an Expedient and Least Effort Manner

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BEFORE AFTER

Electricity

Market

Operator

Electricity

Market

Operator

Solar

Owners

Solar

Owners

Electricity

Retailer/

Provider

Electricity

Retailer/

Provider

Bill Bill

Market registration required for payments for excess solar energy

Payments for excess solar energy through Central Intermediary without

onerous market registration

Facilitate the Deployment of

Solar Energy

Creating Flexible System to Support Smart Business Models

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Furthermore, with the Electricity Futures Market, solar independent retailers could offer a blend of green retail contracts to suit consumers’ needs.

Facilitate the Deployment of

Solar Energy

Building Smart Grid Competencies through Manpower Developments

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The National Energy Competency Framework (NECF)

is available at www.poweringlives.sg

To leverage on the existing National Energy

Competency Framework (NECF) as the baseline and identify specialised grid-related competencies (e.g. network monitoring, equipment condition monitoring, maintenance of network systems etc).

To better equip our workforce with the necessary training, EMA works closely with Singapore Institute of Power and Gas (SIPG) to develop new training programmes, related to Smart Grids.

Moving forward, the NECF could be enhanced to include new competencies and skillsets to meet the requirements of this development, if necessary.

Fostering a Smart Energy Community for Research & Development Initiatives

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Pulau Ubin Micro-grid – Renewable Integration

(on-going)

IES pilot in Punggol – to test behavioural changes

(completed)

NTU Eco-campus

“Living labs” to test energy solutions for Singapore, such as demand-side

management initiatives

Funding Smart Technologies and Solutions

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• Established a $25 million Energy Storage Programme (ESP) to develop technologies that enhance overall stability and resilience of the power system.

• The funds will support development and integration of large scale, cost-effective systems for Singapore’s power system.

• Grid level energy storage could be used to reduce demand during peak periods; as reserves for frequency regulation; and to support the deployment of solar energy.

Developing New Emerging Technologies to Support a Smart Energy Nation

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Staying Ahead to Power a Smart Grid Nation

FOSTERING INDUSTRY INNOVATION BY BEING PRO-BUSINESS Address industry’s needs and enhance the regulatory framework in order to facilitate commercially viable business models and foster a pro-business environment

ENABLING GREATER COMPETITION IN THE ENERGY MARKET Lower barriers to entry and regulatory enhancements allow new industry players to enter the solar and electricity retail markets

CREATING ENERGY CHOICES FOR CONSUMERS More consumers are able to benefit from different energy sources as well as innovative energy price plans

THANK YOU

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