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Our Energy Story

Overview

Discover how the Singapore Energy Story sets the vision towards a net-zero energy future.

Energy Supply

Gain insights into the four switches that power Singapore’s economy and our daily lives.

Energy Demand

Discover ways to enhance energy efficiency and lower your carbon footprint.

Energy Grid

Explore how EMA ensures a reliable and secure energy supply for everyone.

Energy Market Landscape

Learn about the intricacies of Singapore’s energy market structure and operations.

Consumer Information

Electricity

Get tips on buying electricity and protecting your family from electrical hazards.

Gas

Learn about purchasing gas and safeguarding your family against gas hazards.

Solar

Access information on installing solar panels at your home and selling excess electricity to the national grid.

Regulations & Licences

Regulations

Stay up-to-date with the latest regulations, policies and frameworks governing the energy sector.

Licences

Learn about the licences that EMA issues to different stakeholders in the energy sector.

Regulatory Publications

Read about the Codes of Practice and Circulars that EMA publishes to regulate the energy sector.

Partnerships

Calls for Proposal

Collaborate with EMA in co-creating innovative solutions for the energy sector.

Consultations

Give your comments and feedback on EMA’s policies and regulations.

R&D Engagements

Discover how EMA works with stakeholders to catalyse new and innovative digital technologies.

Talent Development

Learn about EMA’s efforts in nurturing talent and cultivate interest in the energy sector.

Welcome to EMA's website. We would love to have your valuable feedback.

Today, Singapore has a liberalised electricity industry that promotes effective market competition.

Overview

Over the years, the electricity industry in Singapore was progressively liberalised and restructured. Key developments included opening up our power generation and retail electricity markets to commercial players, as well as introducing a wholesale electricity market with spot bidding. 

With competition in the market, it has led to more efficient generation technologies. Consumers are also able to enjoy competitive electricity prices and a range of electricity retail options. To ensure that our market structure continues to function well amid an evolving global energy landscape, EMA is introducing various guardrails to manage the risks of volatility in our energy market.

Image on how the electricity market works

How the electricity market in Singapore works

Apart from EMA, the other key stakeholders in the electricity market include:

  • Power Generation Companies

Power generation companies compete to generate and sell electricity in the wholesale electricity market every half-hour.

  • Energy Market Company (EMC)

The Energy Market Company operates and administers the wholesale electricity market.

  • Electricity Retailers

Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.

  • SP Services

SP Services, a member of SP Group, is the Market Support Services Licensee (MSSL). It provides services such as the reading of electricity meters, management of meter data and facilitation of access to the wholesale electricity market.

  • SP PowerAssets and SP PowerGrid

SP PowerAssets is the Transmission Licensee which owns the power grid which delivers electricity island-wide.

SP PowerGrid is the agent appointed by SP PowerAssets to build and maintain the power grid. Both SPPA and SPPG are members of SP Group.

Retail Electricity Market

In 2018, EMA completed its final phase of liberalising the retail electricity market. With the Open Electricity Market initiative, the remaining segment of consumers - households and small businesses - have the option of buying electricity from a retailer of their choice while enjoying the same reliable electricity supply.  

As part of EMA's efforts to strengthen the existing power market structure, the regulatory framework for electricity retail licensees  will be enhanced. Our focus is on enhancing consumer protection and ensuring that retailers can withstand extreme market volatilities. The enhancements include:

  • Ensuring retailers have a Tangible Net Worth of at least S$1 million at the time of licence application or renewal, to ensure that they are credible and have sufficient financial standing.
  • Getting retailers to seek EMA’s approval to appoint key appointment holders, to ensure that the individuals leading and managing the companies are fit and proper.
  • Requiring retailers to hedge at least 80% of their retail contract position and provide a performance bond for any unhedged position, to increase resilience against market volatility.
  • Protecting consumers against premature termination of retail contracts.

Wholesale Electricity Market

Power generation companies have to bid to sell electricity in the wholesale electricity market every half-hour. Depending on electricity demand and supply, the price of electricity in the wholesale electricity market changes every half-hour.

Meanwhile, electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers.

To further strengthen the Singapore Wholesale Electricity Market (SWEM), EMA introduced a Temporary Price Cap (TPC) mechanism that acts like a 'circuit breaker' during sustained periods of extreme price volatility in the SWEM. 

Please refer to this page for the bi-weekly TPC parameters, and the Energy Market Company website for the real-time and historical half-hourly trading data.

Power Generation Market

Investments in new power generation capacity have traditionally been driven by power generation companies' considerations such as their individual business plans, outlook on electricity demand and price signals in the Singapore Wholesale Electricity Market (SWEM).

While this approach incentivises innovation and efficiencies in the generation companies' own operations, this may not always result in adequate generation capacity to meet the power system's overall demand.

To ensure that Singapore has sufficient generation capacity in time to come, EMA has introduced a Centralised Process to facilitate and guide private investments in new power generation capacity through a competitive tender.

EMA has also launched two Requests for Proposal (RFP) to invite interested companies to build, own and operate new Combined Cycle Gas Turbine (CCGT). Details of the RFPs can be found here.

Electricity Futures Market

In Apr 2015, EMA collaborated with the Singapore Exchange (SGX) and the electricity industry to launch the Electricity Futures Market (EFM). This initiative aims to enhance market competition for the benefit of consumers.

Drawing the experiences of countries like Australia and New Zealand, an EFM promotes a more efficient and competitive wholesale and retail market, ultimately resulting in advantages for consumers. These benefits include more competitive prices and a wider range of retail choices.

More information on electricity futures trading can be found on SGX's website. In conjunction with the EFM, EMA introduced the Futures Incentive Scheme. In its third run, spanning from 1 July 2021 to 30 June 2023, the scheme provides market making services for the EFM.