Our Energy Story

Overview

Discover how the Singapore Energy Story sets the vision towards a net-zero energy future.

Energy Supply

Gain insights into the four switches that power Singapore’s economy and our daily lives.

Energy Demand

Discover ways to enhance energy efficiency and lower your carbon footprint.

Energy Grid

Explore how EMA ensures a reliable and secure energy supply for everyone.

Energy Market Landscape

Learn about the intricacies of Singapore’s energy market structure and operations.

Regulations & Licences

Regulations

Stay up-to-date with the latest regulations, policies and frameworks governing the energy sector.

Licences

Learn about the licences that EMA issues to different stakeholders in the energy sector.

Regulatory Publications

Read about the Codes of Practice and Circulars that EMA publishes to regulate the energy sector.

Partnerships

Calls for Proposal

Collaborate with EMA in co-creating innovative solutions for the energy sector.

Consultations

Give your comments and feedback on EMA’s policies and regulations.

R&D Engagements

Discover how EMA works with stakeholders to catalyse new and innovative digital technologies.

Talent Development

Learn about EMA’s efforts in nurturing talent and cultivate interest in the energy sector.

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Review of the Long Run Marginal Cost Paramenters for Setting the Vesting Contract Price for 2021 and 2022

Industry Sector:

Update

30 Sep 2020:

EMA has drawn up the draft Determination Paper and Consultants’ draft reports. Please submit any written feedback via attachments at https://go.gov.sg/draft-determination-on-lrmc-vesting-parameters by 5pm on 21 Oct 2020. The format for submission of comments is shown inAppendix 1. You are requested to include a soft-copy of your comments in both PDF and Microsoft Word format in your submission.

20 Aug 2020:

The consultation has closed for comments.

Consultation

The Energy Market Authority (“EMA”) implemented vesting contracts on1 Jan 2004. The objective of the vesting regime is to enhance economic efficiency in the electricity market by mitigating the exercise of market power by the generation companies (“gencos”). The vesting contracts mandate a specified amount of electricity (viz. the vesting contract level) to be hedged at a specified price (viz. the vesting contract price). This removes the incentives for gencos to withhold their generation capacity to sustain inefficient spot prices in the wholesale electricity market.

The vesting contract price is set based on the long run marginal cost (“LRMC”) of the most efficient generation technology that accounts for at least 25% of the system demand in Singapore. The most efficient technology at present is the F-class combined cycle gas turbine (“CCGT”). EMA reviews and determines the vesting contract price parameters biennially or when necessary in accordance withthe published EMA’s Procedures for Calculating the Components of the Vesting Contracts(“Procedures”). EMA appointed WSP Consultancy Pte Ltd(“WSP”) and KPMGSingapore(“KPMG”) (“Consultants”) to review the LRMC parameters for setting the vesting contract price for 2021 and 2022.

EMA invites comments and feedback on the Consultation Paper and Consultants’ draft reports. 

Submit Responses

Please submit any written feedback via attachments at https://go.gov.sg/consultation-on-lrmc-vesting-parameters by 5pm on 20 Aug 2020. The format for submission of comments is shown in Appendix 1 of the consultation document. You are requested to include a soft-copy of your comments in both PDF and Microsoft Word format in your submission.

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Industry Sector:

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