Energy Resilience in Singapore
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Desmond Choo’s inquiry into Singapore’s past energy resilience improvements and future strategies to mitigate potential supply disruptions. Minister for Trade and Industry Gan Kim Yong explained that resilience is managed through gas source diversity, generation capacity adequacy, and grid reliability. Key policies include establishing a centralised gas procurement entity, building a second liquefied natural gas terminal, and implementing a Request for Proposal process for new power plants. The Energy Market Authority also commissioned Meranti Power to operate quick-start gas turbines and maintains a reserve margin above 27% to safeguard system reliability. Furthermore, stringent monitoring by SP Group ensures that annual average grid interruption times remain among the lowest globally at under one minute per customer.
Transcript
22 Mr Desmond Choo asked the Minister for Trade and Industry (a) how has Singapore improved its energy resilience over the last 10 years; (b) what are the potential disruptions to our energy resilience in the next 10 years; and (c) how does the Government plan to further strengthen our energy resilience.
Mr Gan Kim Yong: Singapore addresses energy resilience in three ways: (a) source diversity of natural gas supplies, (b) adequacy of generation capacity, and (c) grid reliability.
First, on source diversity of gas supplies. About 95% of Singapore’s electricity needs are met by imported natural gas. We commissioned Singapore’s first liquefied natural gas (LNG) terminal 10 years ago to enable our power sector to complement the supply of piped natural gas from Indonesia and Malaysia. We are, therefore, able to import LNG from a diverse range of sources, including Australia, Qatar and the US.
During the energy crisis that was brought about by the Russia-Ukraine war, the Energy Market Authority (EMA) introduced a standby LNG facility to ensure that our power generation companies would still have sufficient fuel for power generation.
We expect natural gas to remain an important part of our energy mix. To this end, the Government will establish an entity to centralise the procurement and supply of gas for the power sector. This move will enable us to enter longer-term gas contracts for more stable prices and supply, as well as procure gas from diverse sources.
Singapore LNG Corporation also plans to develop and build a second LNG terminal. This will address growing demand and enable Singapore to meet our power generation needs entirely with LNG, if necessary.
Second, on adequacy of generation capacity. Over the years, we have ensured sufficient generation capacity to meet growing electricity demand. Our current reserve margin is above the required reserve margin of 27%, which is meant to safeguard system reliability in the event of outages of generating units.
To ensure sufficient generation capacity in the years ahead, EMA has introduced a centralised process and will launch a Request for Proposal whenever we anticipate the need for new generation capacity in our power system. EMA launched the first request in July 2023 for new generation capacity to be ready by 2028.
This year, EMA also commissioned Meranti Power to build, own and operate two 340 megawatt Open Cycle Gas Turbine units which can be brought online quickly in less than 10 minutes when there are unplanned supply disruptions.
Finally, on grid reliability. Singapore’s grid has consistently achieved low annual average interruption times of less than one minute per customer. This makes our grid one of the most reliable in the world. EMA holds the national grid operator, SP Group, to stringent grid reliability standards. System demand and transmission network conditions are closely monitored in real time, 24/7, by EMA. SP Group also monitors our distribution network around-the-clock.
EMA will ensure that SP Group continues to invest sufficiently in grid infrastructure to maintain grid reliability.