top of page



 Market Dynamics of the Singapore Power Sector

  • Market characteristics:

    • Even though the power sector is de-regulated, government continues to play important role for shaping the energy mix, investment and fuel procurement in Singapore.

    • Energy mix is dominated by gas capacity with similar efficiency since 2013. 

    • Gas procurement strategy and gas market dynamics have material impact on spark spread of CCGT plants in Singapore. 

  • Investment Opportunities:

    • Imports: Power import is one of the key strategies that Singapore government has adopted to meet its CO2 emission target in the long term.  It is looking to import 3.5-4.0 GW of base-load green power from other countries by 2035.

    • Local investment: The government is actively seeking to get investors to plant local CCGT, solar and battery energy storage capacity. 

    • New technologies: The government is mulling to provide special incentives for pilot hydrogen (H2) facilities before rolling out big scale hydrogen infrastructure. 

  • Key Themes to Watch in the near-term:

    • How will the gas procurement policy evolve/change given all the uncertainties in the coming years?

    • How much will the spot wholesale market prices and the retail prices fall from the unsustainable high level seen in 2022-2023. 

      • New local capacity is going to be commissioned in 2025-2027, including OCGT capacity invested by EMA and three new H-class CCGT units invested by Sembcorp, Keppel and PowerSeraya. ​

      • Some import capacity may start to flow to Singapore in 2024-2026, including the planned import from Peninsular Malaysia and Bulan Island in Indonesia. 

      • Singapore government has also introduced secondary price cap; and it is procuring vested contracts for the non-contestable customers, which can increase the contracted volume of the Gencos and reduce their incentives to bid aggressively to push up prices

Key Lessons from Singapore Electricity Market Liberalization are:


  • Market reform can take a long time to reach the end-state desirable design and a phase-wise approach (like Singapore) has many benefits.

  • Even though the first round of reform in Singapore is imperfect, it still provides useful and necessary learning lessons for the market stakeholders and the government.

  • Robust reform on the market structure is critical to create an efficient and effective competitive electricity market that provide confidence to the investors that a level-playing field is created for everyone.  It can also reduce the scope and need for conduct regulation.​

  • Commercial arrangement, such as vesting contracts, can be created to successfully mitigate the potential unduly exercise of market power of some of the Gencos in Singapore.

  • Retail competition can be rolled out in phases.

  • Flexibility has material values in a small market like Singapore.

bottom of page