Power Supply & Distribution in the Open Electricity Market

Power Supply & Distribution in the Open Electricity Market

Mar 14, 2019, 10:18:53 PM News

On 18 September 2018, Singapore experienced a blackout affecting 146,797 households and businesses across 19 areas of the island but power was restored within 38 minutes. Assuming this blackout had been for a longer duration, the inconvenience caused among the masses would have been humongous.

This incident highlights how vital a reliable power supply is in providing electricity to everyone and Singapore exemplifies this clearly.


How is Electricity Produced in Singapore?

Firstly, electron production is carried out by the power generation plants which primarily uses natural gas. Other sources of power generation include coal and petroleum products like diesel, fuel oil, etc. Whereas 95% of energy production makes use of natural gas, other sources are also utilized owing to the need for energy security.

Moving From Conventional to Non-conventional Energy Resources

Apart from the conventional methods of energy production, which are primarily based on the combustion of fuels, Singapore also gives due importance to energy production using non-conventional sources such as solar energy. Often referred to as a "sunny island," Singapore receives 50% more solar radiation than the temperate countries. This paves the way for electricity production using rooftop solar photovoltaic systems.

Is This Power Supply Reliable?

Though power failures are relatively uncommon throughout Singapore, owing to effective maintenance of equipment and tracking of suspicious incidents that may affect the power supply as well as remedial measures in response to such incidents, outages may happen due to varied reasons, based on which they are classified as follows:-

Planned Outages: The periodic scheduled shutting down of power systems for maintenance.

Unplanned Outages: The outages resulting from unexpected component failures which have the potential of a blackout.


How is This Produced Electricity Supplied Throughout the Island?

Once generated, the produced electricity reaches the homes, offices, and factories, initially making way through SP Group-owned and Energy Market Authority (EMA)-operated national grids, and flowing over the transmission and distribution network. While consumers throughout Singapore were supplied electricity by SP Group at regulated tariffs until now, the electricity market underwent liberalization, and the concept of the Open Electricity Market was introduced.

What is the Open Electricity Market (OEM)?

The OEM is an initiative by the EMA to make the marketplace more competitive, thus benefiting consumers in multiple ways. The Open Electricity Market started extending to all consumers in Singapore in a zone-wise rollout, starting November 1, 2018. Consumers who used to buy electricity from SP Group at regulated tariffs can now switch to any retailer of their choice. The advantage of an open electricity market lies primarily in the freedom of choice for consumers to choose plans based on their needs.

Final Thoughts

The national grid in Singapore is managed to world-class performance standards to maintain its power quality. This, coupled with the introduction of the Open Electricity Market has made the lives of people quite convenient. They can choose to buy electricity from any retailer of their choice that suits their requirements and that too at great prices.

Visit the following site to find out more about a leading company that generates electricity and contributes to the
power supply in Singapore.




Published by Sarthak Sharma

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