SINGAPORE: Singapore will take several pre-emptive measures to safeguard its energy supplies amid global disruptions that have pushed market prices to new highs.
Standby fuel facilities will be established for power generation companies (gencos) to draw upon to generate electricity if needed, said the Energy Market Authority (EMA) on Tuesday (Oct 19) as it laid out three measures.
“We are working closely with all gencos to track their fuel supply levels and generating capacity, and will provide the standby fuel to them if gas supplies are affected or there is a need to ensure reliable electricity supply to consumers in Singapore,” the authority added.
EMA said it has also informed gencos to contract sufficient fuel to at least meet the demands of customers of their retail arms.
Companies looking to sell their excess natural gas supply have been informed to provide other gencos with the first right of refusal, before they can divert or sell the excess gas to other parties.
Finally, gencos will be directed to generate electricity using fuel from the standby facilities if needed, to maintain system stability, said EMA.
“These pre-emptive measures are extraordinary but necessary to secure our fuel and electricity supply. We will review if these measures are still needed by Mar 31, 2022,” it added.
“During this period, we urge consumers to conserve energy where possible. EMA will continue to monitor developments in the global and domestic energy sector closely and will introduce further measures if necessary.”
EMA noted last week that the “exceptional” circumstances in the energy market have caused several electricity retailers to cease operations. Ohm Energy and iSwitch have announced that they are exiting the Singapore market, while Union Power said on Monday that it is dropping 850 accounts amid high energy prices.