Consumption also expected to drop in March, reflecting economic slowdown
Ronnie Lim, Business Times 31 Mar 09;
ELECTRICITY demand in Singapore declined in January and February, according to the latest Energy Market Company data - continuing a slide which started last October when the global economic downturn began. March will be no different, say industry sources.
'Electricity demand in January 2009 fell to its lowest level since February 2006 to 4,153 megawatts, owing to the Chinese New Year effect. Demand thereafter rose modestly to 4,340 MW in February,' said EMC, which operates the wholesale electricity market here.
'Comparing year-on- year for January and February 2009, the percentage change in demand remained negative for the fifth consecutive month, with January and February 2009 recording minus 8.6 and minus 1.6 per cent respectively,' the EMC said.
This continues a fall in year-on-year demand which started in the last quarter of 2008 with October recording minus 3.2 per cent, November minus 2.7 per cent and December minus 3 per cent.
'Demand continues to be lacklustre,' said EMC's chief executive Dave Carlson.
While March figures are not in yet, 'this month we are expecting demand to be minus 4 to 5 per cent compared to March 2008', an industry source told BT.
The weak first-quarter electricity demand here - which includes that from industries and businesses - clearly reflects the economic slowdown as a result of the global financial crisis. The Ministry of Trade and Industry earlier forecast a gross domestic product (GDP) contraction of 2 to 5 per cent here this year, although it could be worse.
'No one knows if electricity demand is going to stay negative for the rest of the year,' the industry source said, adding, however, that things will hopefully improve with the start of the new financial year in April, which could see greater activity by companies.
The Energy Market Authority's chief executive Lawrence Wong also said at a regional energy workshop last week that 'no one can tell when the market will bottom out'.
'Energy demand for both industrial and domestic use has tapered off. Coupled with the tightening of credit worldwide, several power producers are now reconsidering their options for new projects, or deferring their commissioning dates. In Singapore, we saw electricity demand at the start of the year drop sharply to levels below that in 2007,' he added.
BT had earlier reported that Tuas Power is holding off by six to 12 months its plans for a $2 billion clean coal/biomass cogeneration plant, with Sembcorp Industries similarly delaying building a second cogeneration plant on Jurong Island.
