Singapore, a vibrant city-state renowned for its multiculturalism and cutting-edge infrastructure, is undergoing a significant transformation in its energy sector. With a population density among the highest globally, Singapore’s approach to managing its energy needs is both innovative and forward-looking.
The country has set ambitious goals for renewable energy, aiming to achieve an installed solar capacity of 2 GW by 2030. The shift toward renewable energy is set to accelerate further, with plans to import an additional 6 GW of green energy from neighboring countries by 2035. This transition reflects Singapore’s commitment to diversifying its energy mix and reducing its heavy reliance on natural gas, which currently accounts for approximately 95% of electricity generation.
However, Singapore’s unique circumstances pose challenges for modernizing the power grid. Since the 1970s, new overhead power cable installations for electricity distribution have been minimal, with nearly all electrical infrastructure now located underground. While this approach has kept the cityscape visually clean and less prone to weather-related disruptions, it also makes grid upgrades and maintenance more complex and costly.
Building a Digital and Resilient Energy Future
The increasing penetration of solar energy, coupled with the rise of electric vehicles and anticipated green energy imports, underscores the need for a comprehensive upgrade to Singapore’s electrical infrastructure. Recognizing this, Singapore’s Energy Market Authority (EMA) and SP Group have partnered to create the «Future Grid Capabilities Roadmap», a forward-looking initiative designed to prepare the nation’s grid for a new era of energy complexity.
This roadmap focuses on ensuring that the power system remains resilient and capable of adapting to changing energy demands. It will address several key challenges that arise from integrating more distributed energy resources (DERs), such as rooftop solar installations, battery energy storage systems (BESS), and electric vehicle charging infrastructure.
The grid’s transformation will revolve around three main pillars:
Harnessing Distributed Energy Resources
DERs will be leveraged to enhance grid resilience by providing not only energy but also ancillary services, such as demand response. This could help shift energy consumption to off-peak periods, easing the strain on the grid during peak times.
Digitizing Grid Operations:
With a nearly entirely underground power infrastructure, optimizing grid management is crucial. AI powered solutions like a real-time Digital Twin will play a pivotal role in modernizing grid control and maintenance, improving efficiency, and reducing the reliance on manual processes.
Maintaining Grid Stability:
As the share of renewable energy sources grows, ensuring stability in the power supply will be a priority. The roadmap aims to explore innovative solutions to maintain grid reliability while integrating more variable energy sources like solar power.
Through these initiatives, the EMA and SP Group are not only preparing Singapore for an energy transition but also setting a benchmark for how densely populated, urban environments can achieve sustainable and resilient energy futures. This collaborative approach will help ensure that Singapore continues to lead the way in energy innovation while meeting its decarbonization goals.
As part of the global energy transition, Plexigrid supports these efforts by contributing to innovative grid solutions that help countries like Singapore manage new energy complexities. This partnership represents a proactive step toward a future where smart, digitalized grids enable seamless integration of renewable energy, paving the way for a sustainable tomorrow.
Demand Response Program for Non-Residential Consumers
In 2022, EMA introduced a two-year regulatory sandbox aimed at helping commercial and industrial companies optimize their energy use, while increasing the system flexibility and enhancing the grid resilience. Participating companies will be required to manage their electricity demand when called upon and will receive payments as an incentive for lowering their demand on the national power grid.
Participants in this program have reduced their consumption through an electricity retailer or aggregator. Also, if the capacity to reduce their demand is greater than 0.1 MW, they have been able to do so directly through the market.
Business consumers who participate will receive financial incentives when prompted to adjust their electricity usage based on market price signals. This helps to lower wholesale electricity prices during peak periods by avoiding the need to activate more expensive generation units. By reducing electricity consumption during peak times when prices are typically higher, consumers can make more efficient investment decisions. In the long run, this decreases the need for costly generation units that are only used occasionally to meet peak demand.
Additionally, consumers can utilize on-site backup generation to minimize the amount of electricity drawn from the grid. Running backup generators for short durations allows organizations to reduce their grid dependency when necessary, contributing to the overall stability of the electricity network.
These strategies enable consumers to play a proactive role in energy management, while also benefiting financially through incentive programs that reward reductions in energy usage during critical periods.
The Energy Market Authority and SP Group are set to launch Singapore’s inaugural Residential Demand Response (R-DR) pilot programme in the latter half of 2024.
This initiative empowers households with smart meters to proactively manage their electricity usage during peak demand times. By participating, residents can contribute significantly to a more resilient and sustainable energy future. Together, let’s embrace this opportunity to reshape our energy landscape.