EMA: Saving energy for a brighter future

Business Times 4 Nov 09;

WHEN Singapore's Energy Market Authority (EMA) first flagged plans two years ago to let households choose the service provider they wanted to buy electricity from, there were not a few raised eyebrows as to how this vision could materialise. Would it mean more hassle for the consumer? Might it not end up being 'too high tech' for the older folk to understand?

It's a radical idea for Singaporeans long used to buying power at a regulated price from just one supplier. Yet EMA is compelled to explore such possibilities - and more - in its pursuit of energy efficiency, a major strategy to combat climate change and to create a sustainable future.

Among the various government agencies given the task of advancing Singapore's energy efficiency agenda, 'the thrust of EMA's efforts is aimed at promoting competitive energy markets', David Tan, deputy chief executive officer (energy planning and development) of EMA, said in an e-mail interview.

'We have gone a long way in restructuring and liberalising our electricity and gas markets. Energy, whether electricity or petrol, is priced properly and not subsidised. This ensures the right incentives to avoid over-consumption, and to economise on the use of energy,' he added. Industrial and commercial customers have been able to exercise choice in buying electricity since 2003.

Now, EMA is exploring how to fully open up the remaining 25 per cent of the retail electricity market - which comprises mainly households - through the use of new technologies including smart meters, said Mr Tan.

In countries such as Britain, households already enjoy such power purchasing freedom.

'Our aim is to allow consumers to purchase electricity from a range of retail packages offered by different suppliers. Consumers will then be in a better position to monitor, manage and optimise their electricity consumption,' Mr Tan said.

He added that consumers could, for instance, shift their non-essential electricity usage to off-peak periods when the electricity price is likely to be lower.

'This would help to level out the fluctuation of electricity demand throughout the day, and thereby improve the overall efficiency of the power system.'

Significant strides have already been made with the nation's power generators switching out of carbon-intensive oil-fired steam plants to cleaner technology such as natural gas- fired units.

Between 1990 and 2005, Singapore's energy intensity - which is a proxy for energy efficiency - improved by 15 per cent due to the adoption of better technology in power generation and the more productive use of energy in other sectors, according to the National Environment Agency.

Yet more can be done. EMA chief Lawrence Wong is expected to reveal some of the major efforts underway to initiate Smart Grids in Singapore, at a conference during the Singapore International Energy Week in November.

Smart Grids, which governments around the world, including the United States, are eager to set up, are touted as a more intelligent distribution of electricity to homes and businesses.

One feature of the high-tech system is, meters would become more responsive, allowing families to monitor consumption and hence cut their power bills. Also, alternative sources of energy - such as the unused power of electric cars, which EMA is test-bedding and hoping to see on the roads from 2010 - could be fed into the grid. The bottom line: Energy-saving and cost- saving.

The beginnings of a microgrid system with power-generating sources like solar, wind, and biomass could be implemented first on Pulau Ubin, a 1,020-hectare island just off the mainland. EMA is currently reviewing a consultancy's concept plan for the development and implementation of clean, renewable energy solutions for the rural island, said Mr Tan.

He added the agency was also seeking industry feedback to gauge the level of interest to participate in the Pulau Ubin project. 'We should be ready to announce more details towards the end of the year,' he said.

These developments are on top of EMA's efforts to set off more sparks in green research circles. Last year, EMA launched a $25 million Energy Research Development Fund, to be spent over five years, to facilitate the deployment of innovative energy solutions here, including in clean energy.

In 2007, the country's Research, Innovation and Enterprise Council announced that $170 million would be set aside to groom the clean energy sector as a key growth industry for Singapore.