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The consultation closed on 16 Aug 2010 and five companies responded to our consultation, namely SP PowerGrid, SPS, PowerSeraya, Phoenix Solar and Cygnuspower. The respondents’ feedback and EMA’s responses to the feedback are given in the document titled “EMA Response to Feedback from Industry Participants on Consultation Paper ’Review of Policyon Generation with less than 1MW in Installed Capacity’”.
EMA has carefully considered all feedback received. EMA notes that SPS’ IT system for non-contestable consumers billing has been modified recently and can support the extension of the simplified “credit treatment” to all non-contestable consumers (i.e. both residential and non-residential consumers). As such, for non-contestable consumers with generation capacity of less than1MW, the simplified credit treatment will be extended to them and they will bepaid by SP Services at the rate of “regulated tariff less grid charges” for theamount of electricity exported to the grid.
However, for contestable consumers, in light of the constraints around the settlement of payments to contestable consumers and the substantial costs involved, the extension of the simplified “credit treatment” to contestable consumers will be deferred while EMA continues exploring the options and the cost involved to resolve these settlement issues.
The consultation has closed for comments.
There is a growing demand by non-residential consumers to install solar PV systems and request for the simplified “credit treatment” to get paid for solar PV power exported to the grid without having to register with the electricity market. To provide more flexibility to such consumers, we have reviewed the existing policy and propose to further relax the rules by granting the simplified“credit treatment” to consumers as long as the capacity of their power plant, including solar PV systems, is less than 1 MW regardless of whether they are residential or non-residential consumers.
Currently, generators with total installed capacity of less than 1MW are exempted from holding any generation licences as they do not pose any technical or commercial threat on the system if they fail to operate. For this reason, it is proposed that the simplified credit treatment for residential consumers be extended to non-residential consumers with generation capacity of less than 1MW. Such consumers need not be Market Participants and would be compensated by their retailers or SP Services for the electricity exported to the grid. Consumers with generation capacity of 1MW or more would still be required to hold a licence and participate in the market.
EMA is considering extending the simplified credit treatment given to residential consumers to non-residential consumers with any generation plant (including solar PV generation) of capacity of less than 1MW. This extended treatment would encompass both contestable and non-contestable consumers.
For non-contestable consumers, it is proposed that SP services will continue to credit their monthly electricity bill for the electricity exported to the grid based on the “regulated tariff less grid charges”. For contestable consumers, it is proposed that retailers/SP Services could have an arrangement with their customers in the form of an adjustment to reduce their customers’ electricity bills to compensate for the electricity they export to the grid.
EMA invites comments and feedback to the proposals in this Consultation Paper, as well as any proposals on how and at what price to pay contestable consumers with less than 1MW in installed capacity for the electricity exported to the grid.
Please submit all feedback, in writing, to Mr Henry Wong (henry_wong@ema.gov.sg) or Ms Sharon Chuo (sharon_chuo@ema.gov.sg). Alternatively, you may send the submissions by post/fax to:
Economic Regulation & Licensing Department
Regulation Division, Energy Market Authority
991G Alexandra Road, #02-29
Singapore 119975
Fax: (65) 6835 8020
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