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Update (16 Dec 2020)
As part of continued efforts to support greater solar deployment while managing system reliability, EMA is studying new technical and market solutions to address solar intermittency in a more cost-effective manner. This includes looking at potential ways to manage requirements for regulation reserves assolar adoption scales up. Hence EMA is deferring the implementation of IPM, and intends to consult industry on the enhanced IPM in 2H 2021, with an implementation timeframe of around 2023. EMA also intends to review the eligibility criteria for ‘grandfathering’ and will provide clarity to industry in duecourse.
Update (30 Oct 2018)
The consultation paper had indicated that EMA was reviewing the implementation timing of the Intermittent Price Mechanism, taking into account factors such as the timing for the implementation of carbon tax and the level of IGS capacity in the system. The EMA has since considered that implementing the IPM as soon as practicable will send the right price signal for industry to consider and implement their own measures to address intermittency. Hence the IPM is projected to be implemented around 2020, after the relevant market rules and IT system have been changed.
The consultation has closed for comments.
Intermittent Generation Sources (“IGS”) typically comprise renewable energy generation such as solar and wind energy, where the power output fluctuates,depending on the weather and environmental factors. Based on current technologies, solar generation offers the greatest potential for deployment in Singapore. Solar energy brings about multiple benefits to Singapore, as it generates no carbon emissions and requires no fuel imports.
To ensure the sustainable growth of IGS, a balance has to be struck between the benefits of IGS and intermittency costs it imposes on the system. Hence, it is appropriate to consider a mechanism to allocate the fair share of reserves costs to IGS (henceforth referred to as the Intermittency Pricing Mechanism (“IPM”) in tandem with carbon tax. This paper articulates the proposed allocation method of reserves costs through the IPM to better recognise the characteristics and effects of IGS on the power system, particularly in anticipation of the growth of IGS capacity in Singapore. The IPM will determine the reserves cost based on all possible instances of complete or partialelectricity supply reduction from all types of generation, to ensure that the cost of reserves is allocated fairly to all generation types that contribute to the need for reserves, including IGS.
EMA is seeking views on the proposed methodology for the IPM identified in this consultation paper.
Please submit written feedback to goh_chia_jin@ema.gov.sg, lyana_yeow@ema.gov.sg and ren_kejia@ema.gov.sg by 31 October 2017. Alternatively, you may send the feedback by post/fax to:
Attn: Ms Lyana Yeow
Energy Market Authority
991G Alexandra Road, #01-29
Singapore 119975
Fax: (65) 6835 8020
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