228 G. JINDAL ET AL.
The retail sector consists of seven retailers that are affiliated to the
seven-generation companies, and as of August 2018, another twenty-six
companies holding retail licenses. Finally, a government-held company,
SP Services Ltd., acts as the Retailer of Last Resort and is responsible for
settlement of bills, meter reading, and collection of charges for use of the
electricity transmission system.
The electricity sector (and natural gas market) in Singapore is regulated
by the Energy Market Authority, a statutory board under the Ministry of
Trade and Industry. Specifically, for the electricity sector, EMA approves
technical and market standards, issues market licenses, and is responsible for protecting consumers’ interests. It also houses the Power System
Operator, which is responsible for ensuring the reliability of electricity
supply. The overall energy policy is set by the Energy Division of MTI
with the aim of supporting economic growth, addressing energy security,
economic competitiveness, and the environmental sustainability (Energy
Market Authority 2016).
Singapore’s Electricity Market
Singapore is home to Asia’s first liberalized electricity market. With the
deregulation process in 1995, the incumbent’s electricity and gas operations were split into six different companies—three generation companies,
a transmission & distribution, and a retail company. Three years later,
Singapore launched the first wholesale market in Southeast Asia, a simple
day—ahead market called the Singapore Power Pool (SPP). In 2003,
electricity trading moved to the National Electricity Market of Singapore
(NEMS), which is a pool-type wholesale market that uses bid-based,
security-constrained economic dispatch with locational marginal pricing.
The NEMS is a real-time only market and does not operate a day-ahead
market as is the practice in many electricity markets in the United States.
Rather, it bears close resemblance to the Australia National Electricity
Market and the New Zealand market.
NEMS co-optimizes the procurement of energy and two other ancillary services: Reserves for maintaining frequency in times of generator/demand outage, and Regulation for maintaining real-time balance
with generation and demand. For every half-hour dispatch interval, generators are required to submit ten Price–Quantity bid pairs for energy, five
Price-Quantity bid pairs each for of the two categories of Reserve, and
five Price-Quantity bid pairs for Regulation. The Power System Operator
The retail sector consists of seven retailers that are affiliated to the
seven-generation companies, and as of August 2018, another twenty-six
companies holding retail licenses. Finally, a government-held company,
SP Services Ltd., acts as the Retailer of Last Resort and is responsible for
settlement of bills, meter reading, and collection of charges for use of the
electricity transmission system.
The electricity sector (and natural gas market) in Singapore is regulated
by the Energy Market Authority, a statutory board under the Ministry of
Trade and Industry. Specifically, for the electricity sector, EMA approves
technical and market standards, issues market licenses, and is responsible for protecting consumers’ interests. It also houses the Power System
Operator, which is responsible for ensuring the reliability of electricity
supply. The overall energy policy is set by the Energy Division of MTI
with the aim of supporting economic growth, addressing energy security,
economic competitiveness, and the environmental sustainability (Energy
Market Authority 2016).
Singapore’s Electricity Market
Singapore is home to Asia’s first liberalized electricity market. With the
deregulation process in 1995, the incumbent’s electricity and gas operations were split into six different companies—three generation companies,
a transmission & distribution, and a retail company. Three years later,
Singapore launched the first wholesale market in Southeast Asia, a simple
day—ahead market called the Singapore Power Pool (SPP). In 2003,
electricity trading moved to the National Electricity Market of Singapore
(NEMS), which is a pool-type wholesale market that uses bid-based,
security-constrained economic dispatch with locational marginal pricing.
The NEMS is a real-time only market and does not operate a day-ahead
market as is the practice in many electricity markets in the United States.
Rather, it bears close resemblance to the Australia National Electricity
Market and the New Zealand market.
NEMS co-optimizes the procurement of energy and two other ancillary services: Reserves for maintaining frequency in times of generator/demand outage, and Regulation for maintaining real-time balance
with generation and demand. For every half-hour dispatch interval, generators are required to submit ten Price–Quantity bid pairs for energy, five
Price-Quantity bid pairs each for of the two categories of Reserve, and
five Price-Quantity bid pairs for Regulation. The Power System Operator