As Singapore moves towards net-zero emissions by 2050, we will see a proliferation of Distributed Energy Resources (DERs).
While DERs on their own may be small and distributed across multiple locations in Singapore, they can be aggregated to operate as a single generator to provide energy and ancillary services to the grid. This aggregated digital platform of DERs is also known as a Virtual Power Plant (VPP).
VPPs have shown potential of contributing to system needs in other jurisdictions. There is currently no regulatory framework allowing the aggregation of DER via a VPP to provide energy and ancillary services in the Singapore Wholesale Electricity Market (SWEM).
In view of the potential benefits that VPPs can bring to our power system, EMA intends to pilot VPPs via a regulatory sandbox to inform the regulatory framework for VPPs.