Progress of Residential Demand Response Pilot Programme
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the Residential Demand Response (R-DR) pilot as Mr Ang Wei Neng inquired about peak electricity demand periods and potential off-peak price reductions. Minister for Trade and Industry Gan Kim Yong explained that demand typically peaks in the afternoons and warmer months, and reducing this helps lower wholesale electricity prices. He highlighted that residential consumers can already access Time-Of-Use contracts through licensed retailers, which offer lower electricity prices during off-peak periods to help smoothen usage. Furthermore, Minister for Trade and Industry Gan Kim Yong announced that the Energy Market Authority and SP Group will pilot the R-DR programme in the second half of 2024. This initiative will offer households financial incentives for voluntarily reducing electricity usage during peak periods, similar to existing programmes for commercial and industrial consumers.
Transcript
60 Mr Ang Wei Neng asked the Minister for Trade and Industry regarding the Residential Demand Response (R-DR) pilot programme which empowers households equipped with smart meters to reduce electricity consumption during demand peaks in the power system (a) when are the peak demand periods; and (b) whether the Ministry will consider lowering electricity prices during off-peak periods to better smoothen energy usage in households throughout the day.
Mr Gan Kim Yong: Singapore's electricity consumption patterns have been reasonably consistent over the years. Demand typically peaks in the afternoons and overall demand is higher during the warmer months of each year in April, May and June.
Reducing peak demand during the day can lower wholesale electricity prices during peak periods by avoiding the need to operate less-efficient and more expensive generation units.
Time-Of-Use contracts charge lower electricity prices during off-peak periods. For residential consumers, they can already choose to subscribe to such contracts offered by licensed retailers.
The Energy Market Authority (EMA)'s Demand Response (DR) programme also seeks to facilitate reduction in peak demand. Under the DR Programme, commercial and industrial consumers offer to reduce their loads when overall demand is high, in return for incentive payments. For households, EMA and SP Group intend to pilot the Residential Demand Response (R-DR) programme in the second half of 2024, to similarly offer an incentive when these households voluntarily reduce their electricity usage during peak demand periods.