The energy policy framework of Singapore sets the following objectives: (i) to promote competitive markets, (ii) to diversify energy supplies, (iii) to improve energy efficiency, (iv) to build energy industry and promote research and development, (v) to promote international cooperation, as well as (vi) to develop whole-of-Government approach.
Singapore aims to be a centre for research and development in Renewable Energy. With its limited natural resources, the country is very dependent on external energy supply. Currently, Singapore electricity around 76% is generated by piped natural gas imported from neighbour countries in particular Malaysia and Indonesia.
National Climate Change Strategy Blueprint (2012) outlined the plan to reduce CO2 emission by 7-11% by 2020. Energy Conservation Act (ECA) came into force in April 2013. The act combines several conservation legislations from various sectors together. It requires companies with high energy consumption (more than 54 TJ energy-use per annum) as well as companies from certain sectors (manufacturing, energy supply as well as water supply and waste management) to register with the National Environmental Agency (NEA) and to implement energy management. This includes appointment of energy manager and annual reports on energy use and emissions. Among the topics to be covered in the Energy Use Report are: types and quantities of energies used for consumption, production, or sale as well as evaluation of energy patterns changes from the previous years.
Due to its limited domestic energy resources, Singapore relies mainly on the external energy supply. Fossil fuel is the major source of energy to the energy mix (Figure 1).
Singapore's Total Final Energy Consumption in 2016 (%)
Source: EMA. Singapore Energy Statistics 2018
The situation in the power sector is different from the final energy consumption as the majority of electricity in Singapore is generated from natural gas (95%). The share of conventional fuels in power sector is very high. Only 3% of electricity can be supplied from renewable energy sources (Figure 2).
Singapore's Electricity Generation in 2015 (%)
Source: EMA. Singapore Energy Statistics 2018
Two electricity tariffs systems are currently applied in Singapore that based on the consumer type: residential and commercial/industrial. The tariff for residential users is a flat rate, which denotes that the same tariff per kWh applies to all household regardless of their consumption level. The tariffs for commercial/industrial sector depend on the connecting voltage level and time of use (Figure 3). The consumer connected to the high voltage is subject to a lower tariff. Utilization of electricity during off-peak is also charged with lower tariff.
The electricity tariffs are regulated by the Energy Market Authority (EMA). There are four components which contribute to the total electricity tariff: energy cost which is paid to the generation companies, network cost which is paid to the power assets, market support services fee, and market administration and power system operation fee. The tariffs are subject to a quarterly revision.
According to the EMA, Singapore has already achieved 100% electricity access as the whole population is connected to the electricity grid.
Electricity tariffs in Singapore (as of March 2018)
Source: Singapore Energy Market Authority (EMA)
Note: Conversion rate from SGD (Singapore-Dollar) to USD (US-Dollar) is 0.73 (as of December 2018). Price excluding GST