Mr S Iswaran, Minister in the Prime Minister’s Office,
Second Minister for Home Affairs and Second Minister for Trade & Industry,
Distinguished guests,
Ladies and gentlemen

I am pleased to welcome you to the Energy Market Authority’s 10th Anniversary celebrations this evening.

EMA was formed in 2001 as the regulator of Singapore’s energy market, building on the strong foundation laid by the Public Utilities Board. At that time, it was conceived that EMA would have four key roles.  First, to promote a competitive and well-functioning electricity and gas market. Second, to safeguard the interests of consumers in ensuring competitive prices and adequate standards.  Third, to promote the efficient use of energy utilities and fourth, to represent Singapore’s interests in regional and international energy forums such as ASEAN and APEC.

Establishing a Competitive Market

Back in 2001, we were only in the early phase of market deregulation.  The newly-formed EMA, which was charged with the task of overseeing the liberalisation process, faced a steep learning curve.  It had to learn very quickly from the energy market models of Australia and New Zealand, and decide on the model that would work in Singapore.

By 2003, EMA was able to bring together existing industry players and the new Energy Market Company to operationalise the electricity wholesale market, which allowed generation companies to compete for market share.  EMA also successfully liberalized the retail market in phases between 2003 and 2006.  The results are heartening.  In 2000, about 75% of Singapore’s electricity was generated using fuel oil and only 20% using gas.  Today, about 80% of our electricity is generated from natural gas, which is cheaper and cleaner than using fuel oil.  75% of the total electricity demand has also been made contestable, and large consumers have the flexibility of buying electricity from different retailers or the wholesale electricity market based on their consumption requirements.

Our gas supply security will be enhanced when the liquefied natural gas (LNG) terminal is up and ready by mid 2013.  It will allow us to buy and import natural gas from the global gas market.  To leverage on this, EMA has facilitated the development of more than 3,500 MW of new gas-fired generation capacity which will use regasified LNG.  This growth, contributed by the existing smaller power generation players and new entrants to the domestic market, will further boost electricity supply and increase market competition, and will ultimately benefit Singapore consumers.

Developing Singapore’s Energy Sector 

EMA’s mandate in recent years has also been expanded to look into industry development and fostering further growth of Singapore’s energy sector.  To achieve this, EMA has led various efforts aimed at establishing Singapore as an energy hub.  These include R&D initiatives, pilot projects and test-bedding schemes for advanced energy technologies in areas such as power generation, smart grids, energy efficiency and clean mobility.

For example, more recently, EMA has launched the Intelligent Energy System and Electric Vehicles test-beds, and will continue to seek new opportunities to collaborate with the industry to try out promising energy technologies that will further develop Singapore as a “Living Lab”.

To build awareness globally for Singapore’s energy sector, EMA has been organising the annual Singapore International Energy Week (SIEW) since 2008.  This year’s energy week will be held from 31st Oct to 4th Nov, focusing on the theme of “Securing Our Energy Future”.  SIEW has made huge strides over the years, and we hope that the event will continue to be a leading platform for robust dialogues on energy policies, as well as showcasing the key trends and technologies in the global energy sector.

Looking Ahead

EMA has indeed come a long way in a relatively short span of 10 years.  But EMA would not have been able to achieve what it had accomplished without the help from many of you seated in the audience – our industry partners, union leaders, colleagues from other government agencies and last but not least, our former and current staff.  On behalf of EMA, I would like to express my sincere appreciation to everyone of you for all your hard work and invaluable service and contributions. 

I am confident that with everyone’s support, we will continue to make further progress in our efforts to improve Singapore’s energy security, enhance the competitiveness of our energy market and develop a dynamic energy sector.

I would now like to welcome our Guest of Honour for this evening, Mr S Iswaran, Minister in the Prime Minister’s Office, Second Minister for Home Affairs and Second Minister for Trade & Industry, to deliver his speech. Minister, please.