10 SOLAR PV IN SINGAPORE IN THE ABSENCE OF SUBSIDIES
241
capabilities. With prices for regulation averaging at less than S$20 per
MWh over the last three years (Energy Market Company 2018b), there
seems to be no business case for the private sector to invest in electricity
storage for this purpose.
In 2016, the EMA released a consultation paper on developing a
holistic policy framework that will eventually govern technology and
applications for agnostic integration of energy storage solutions in the
electricity market. The objective of the framework was to answers questions such as—which energy storage applications can provide the most
value in Singapore’s market; are there commercially viable business
models for ESS projects; and what modifications can be made to the
regulatory framework or wholesale market design to accommodate certain
unique characteristics of storage (Jindal 2017). While EMA’s consultation
papers generally lead to Final Determination Papers that contain mandatory rules or processes to be followed by relevant market participants, the
result of this consultation was a “Policy Paper,” which was defined by the
EMA as a “living document” in the sense that it will be open to review
and will continue to evolve as ESS business models and applications evolve
(Energy Market Authority 2019).
In its current state, the Policy Paper recognizes the potential for electricity storage facilities to provide several services in the electricity market,
to enable higher integration of intermittent PV, and to defer investment in grid infrastructure upgrading. However, the paper does not
provide any special payments or compensation mechanism for ESS’ superior performance as compared to thermal generators in providing certain
market services (Energy Market Authority 2018d). Rather, it mentions
that Singapore will continue to evaluate whether it needs new market
services such as Fast Response Reserves and the use of electricity storage
assets in providing these.
The Policy framework aside, two electricity storage demonstration
projects are being developed in Singapore under an 18 million-dollar
grant award from the EMA and Singapore Power. One is a 2.4 MW/2.4
MWh Lithium Ion battery, and the other is a 0.25 MW/2 MWh
vanadium redox flow battery.
Conclusion
Solar PV is the crucial pillar of Singapore’s strategy to reduce its GHG
emissions and achieve its climate change targets. With the government
241
capabilities. With prices for regulation averaging at less than S$20 per
MWh over the last three years (Energy Market Company 2018b), there
seems to be no business case for the private sector to invest in electricity
storage for this purpose.
In 2016, the EMA released a consultation paper on developing a
holistic policy framework that will eventually govern technology and
applications for agnostic integration of energy storage solutions in the
electricity market. The objective of the framework was to answers questions such as—which energy storage applications can provide the most
value in Singapore’s market; are there commercially viable business
models for ESS projects; and what modifications can be made to the
regulatory framework or wholesale market design to accommodate certain
unique characteristics of storage (Jindal 2017). While EMA’s consultation
papers generally lead to Final Determination Papers that contain mandatory rules or processes to be followed by relevant market participants, the
result of this consultation was a “Policy Paper,” which was defined by the
EMA as a “living document” in the sense that it will be open to review
and will continue to evolve as ESS business models and applications evolve
(Energy Market Authority 2019).
In its current state, the Policy Paper recognizes the potential for electricity storage facilities to provide several services in the electricity market,
to enable higher integration of intermittent PV, and to defer investment in grid infrastructure upgrading. However, the paper does not
provide any special payments or compensation mechanism for ESS’ superior performance as compared to thermal generators in providing certain
market services (Energy Market Authority 2018d). Rather, it mentions
that Singapore will continue to evaluate whether it needs new market
services such as Fast Response Reserves and the use of electricity storage
assets in providing these.
The Policy framework aside, two electricity storage demonstration
projects are being developed in Singapore under an 18 million-dollar
grant award from the EMA and Singapore Power. One is a 2.4 MW/2.4
MWh Lithium Ion battery, and the other is a 0.25 MW/2 MWh
vanadium redox flow battery.
Conclusion
Solar PV is the crucial pillar of Singapore’s strategy to reduce its GHG
emissions and achieve its climate change targets. With the government