Open Electricity Market – Is Singapore Ready For It?
Following
its soft-launch in April 2018, the Open Electricity Market (OEM) is
all set for a zone-wise rollout throughout Singapore starting
November 1, 2018. The success of this project during the soft-launch
has encouraged, as well as, catalysed its extension to all consumers
islandwide. However, is Singapore ready for this new measure?
Table of Contents:
What
is the Open Electricity Market?
Launching
the Open Electricity Market means that consumers can choose to buy
electricity from any retailer of their choice, as opposed to the
earlier system, wherein, they had to rely on SP Group for their
electricity supply. Consumers can now choose from among the plethora
of standard and non-standard plans offered by other electricity
providers, which are not only cheaper, when compared to the regulated
tariffs, but also suit the unique requirements of various households
and businesses.
Are
There Any Guidelines For the Participating Retailers?
To
prevent retailers from resorting to dishonest marketing practices,
they have been banned from door-to-door marketing activities in the
vicinity of residential areas. The reason is simple; the companies
may try to sway the customers into buying electricity from them by
giving cash rebates or free electricity offers, for the sole purpose
of acquiring the maximum market share. The Energy Market Authority
(EMA) may take action against retailers who violate its guidelines
owing to the fact that however alluring such tactics are for
consumers, they might not be the cheapest or the most eco-friendly.
Are
There Any Other Goals For the OEM?
The
OEM also aims at catalysing its solar energy production via
participating retailers, so as to achieve a solar photovoltaic power
target of 350MW by 2020. To realise this aim, several projects have
been launched. One such project is the SolarNova Project which awards
tenders from time to time. The third tender under this project, which
is the largest one yet, has been given to Sembcorp Solar Singapore
which intends to construct rooftop solar systems starting the third
quarter of 2018 and culminating by the second quarter of 2020. The
fourth tender is yet to come in 2019.
Are
There Any Challenges to Generating Solar Energy?
One
major setback to this is the lack of abundant space for the
installation of large-scale solar systems. Being a key financial hub,
and possessing all the crucial resources, such as capital raising,
urban planning, efficient management and legal structuring, Singapore
may assist in the development of renewable energy in Southeast Asia.
Final
Thoughts
The
new electricity market structure in Singapore not only aims at
providing consumers with great electricity plans but at developing
renewable energy islandwide too – with a special focus on solar
energy. To add, many other measures are also being taken for
switching from conventional to non-conventional energy resources. For
instance, the carbon tax scheme which imposes $5 per tonne of
greenhouse gas emission is also an effective strategy in the same
direction. Being the “sunny island” that Singapore is, there is
an abundance of solar energy – the OEM is one of the key projects
that aims at effectively tapping into the available clean energy
resources.
Click the following to know more about a retailer
that powers the change in Singapore’s Open
Electricity Market.
