This ChannelNewsAsia report caught my eye this morning – “Easier entry for green energy suppliers”.
Unfortunately, reality is not as rosy as the headline.
The electricity market in Singapore is tightly controlled, and previously monopolised by Singapore Power – a corporatised body spun off from a government statutory board.
Liberalisation first started in January 2003, and it has been a slow process. The industry regulator Energy Market Authority (EMA) is doing it in slow, painful phases, beginning with the commercial sector.
The “easier entry” above simply refers to the scrapping of a relatively paltry $5,000 joining fee to join the energy market as an energy provider.
More than 4 years later, the entire domestic market of 1.2 million households in Singapore remain tightly bound to one company – SP Services (which happens to be a subsidiary company of Singapore Power).
It’ll be 2009 before a pilot trial to let the average consumer buy from other electricity providers even begins. Give or take another 2 years for the trial to be completed and analysed, it will easily be 2011 before we begin to see real alternative choices in the electricity market.
Even more astonishingly, the same CNA report above says that Singapore is planning to test by 2009 if renewable energies e.g. solar and wind power, can be fed into our national power grid.
I’m no energy expert, but it sounds like a relatively straightforward task. The Chief Executive of the wholesale market operator, Energy Market Company (EMC), Mr Dave Darlson himself admitted “there are no technical constraints to prevent renewable energy generators from joining the market“.
All these delays are highly unfortunate. The reason is simple – solar power.