Producing & Distributing Power In Singapore’s Open Electricity Market

Electricity Market

Almost everything runs on electricity – from the kitchen refrigerator down to the television in the living room. Electricity has become so relevant to our lives that it is almost impossible to do without it, especially in technologically-driven Singapore.

The processes of generating electrons to serving customers with the finished commodity is actually not that much of a mystery.

Let’s see how generated electricity travels from generation plants down to the sockets in your houses and offices.

Electricity Generation

There are different sources that are used to generate power in Singapore including natural gas, coal, and petroleum products. This diversification of sources is a measure to ensure energy security for the nation. That being said, 95% of our electricity supply is derived from natural gas; a clean form of energy.

Electricity Market
Solar energy is one promising source of alternative energy for Singapore due to the island’s strategic position. It receives 50% more solar radiation as compared to other countries with similar climate. Adding to the fact that it receives sunshine throughout the year, solar energy might be one mainstream source of energy in the future.

Power generation plants utilise these different sources of energy to generate electrons. Through the national grid owned by SP Group and operated by the Energy Market Authority (EMA), the power is distributed to power points which will eventually be consumed via electrical sockets.

Power Blackouts and Outages

In Singapore, there are two forms of outages: planned and unplanned. Planned outages occur when generation plants or a fraction of the national grid is shut down so that maintenance could be carried out. Planned power outages have never been known to impact consumers in Singapore.

In contrast, unplanned power outages are only possible when there is a sudden breakdown in any of the components that is used to manage generation, transmission or distribution systems. However, when systems fail all of a sudden, the EMA steps in with their standby plants. In some cases, the standby plants are able to fill in the gap until the damaged component is fixed. In other cases, it may not be good enough, thereby resulting to a total blackout for the affected areas.

Electricity Market

Open Electricity Market (OEM)

In a bid to provide flexibility to consumers, yet keep electricity prices competitive, the EMA launched the Open Electricity Market. With this initiative, Singaporeans now have more options to choose who they want to purchase electricity from.

The supply and flow of energy will still be the same reliable one that Singaporeans are used to. The only thing that is changing is one’s electricity bill at the end of the month. Consumers no longer have to stick with the regulated tariffs from SP Services if they do not want to. Different retailers now offer different price plans based on one’s power consumption habits and other consumer-based preferences (e.g. duration of contract, energy source).  Every house and business owner should explore the thirteen electricity providers in the market to learn which one suits them most.

Click the following link to learn more about a leading electricity generating company and retailer which contributes to the power supply in Singapore.