- Establishes Future Energy Fund with $5 billion for low-carbon investments.
- Centralizes gas procurement to diversify energy sources and ensure supply.
- Empowers EMA to manage costs, access infrastructure, and handle emergencies.
The Ministry of Trade and Industry (MTI) introduced the Energy Transition Measures and Other Amendments Bill to Parliament, aiming to amend the EMA Act, Electricity Act, and Gas Act. These changes will:
- Introduce guardrails for the electricity market.
- Strengthen the Energy Market Authority’s (EMA) regulatory capabilities.
- Establish the Future Energy Fund.
Singapore’s power generation, primarily from natural gas, accounts for 40% of its carbon emissions. To reach the 2050 net-zero target, Singapore must decarbonize its power sector while maintaining energy security and cost competitiveness. This requires updating regulatory frameworks to support various decarbonization pathways.
Following consultations with the public and industry stakeholders, the Bill includes several critical proposals:
- Future Energy Fund:
- Announced at Budget 2024, this $5 billion fund will support investments in low-carbon energy sources.
- “The Government will ensure prudent use of funds and oversight over projects,” said the MTI.
- Centralized Gas Procurement:
- Establishes a Central Gas Entity (CGE) to aggregate demand and centralize procurement for power generation companies.
- This aims to diversify energy sources and secure sufficient gas supplies.
- Cost Recovery for Energy Initiatives:
- EMA can recover costs for initiatives related to energy security, market development, and decarbonization from benefiting entities.
- “EMA will exercise these powers only when necessary and with due care,” noted the MTI.
- Shared Access to Critical Infrastructure:
- EMA can direct owners of critical energy infrastructure to allow access for other licensees, ensuring energy security and reliability.
- Approval for Repurposing Key Assets:
- Owners must seek EMA’s approval before repurposing critical electricity and gas assets to safeguard energy security.
- Power Rationing During Emergencies:
- EMA gains the authority to implement power rationing to maintain system stability during supply disruptions, similar to measures in France and Germany.
- “EMA will implement power rationing as a last resort and lift measures expeditiously,” emphasized the MTI.
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These measures are designed to support Singapore’s energy transition, ensuring a secure, sustainable, and competitive energy future.