In Singapore, there is growing interest to deploy Energy Storage Systems ("ESS"), in part because of the increased adoption of Intermittent Generation Sources (“IGS”), and also because of the growing awareness of the potential for demand-side management (“DSM”) activities in the energy market. Due to the unique nature of ESS – it has characteristics of both a load (during the charging process) and a generator (when discharging power) – the industry wants to better understand how ESS can be integrated into the energy market and power system.

The Energy Market Authority (“EMA”) is reviewing the regulatory framework for ESS in Singapore to ensure that the relevant regulations keep pace with the development of ESS technologies, and support evolving business models and innovations. This review also complements the efforts of EMA to provide the industry and consumers with more opportunities to participate in the electricity market, through initiatives such as the Interruptible Load and Demand Response programmes, as well as enhancements to facilitate the entry of IGS. 

In this consultation paper, EMA seeks views on the following areas: (i) the possible ESS business models applicable in the Singapore context; (ii) the regulatory andmarket frameworks to support ESS deployment; and (iii) the possible options for the electricity grid operator to utilise ESS in Singapore. The feedback received from this consultation process will enable EMA to better understand the ESS landscape inSingapore and to enhance the regulatory framework for such technologies. This will in turn provide the industry and consumers with greater certainty on the role of ESS in Singapore’senergy market to catalyse industry innovation and facilitate new business models.