Demand Response (DR) Analytics
A data based understanding, of Singapore's demand response program. All charts are created based on publicly available data from the Singapore Energy Market Company
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When to expect DR activations
DR Activation: Facility has offered (bid ), the load to be curtailed, and this 'bid has been accepted by EMC (Energy Market Company) & PSO (Power Station Operator), thus leading to a curtailment event
Based on 2024 data, there are unlikely to be any events late night/twilight, when no individual might be at the facility (& it might be harder to start with manual DR).
Our hypothesis is that during the morning and evening hours when we see the most activations, solar is not producing at full capacity at these times, yet electricity consumption is high.
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Historical payouts from Singapore Demand Response participation
If a commercial/industrial facility participated with 1 MW of load flexibility, the payouts could be as high as ~968K SGD in 2023.
However, the payouts are volatile, and subject to fluctuation year on year. Higher volatility in USEP (Uniform Singapore Electricity Price) as a well as a higher USEP in general, contribute to higher Demand Response payouts. The other aspects are of-course the number of times & the quantity of loads that are offered for curtailment.
In short, the returns can be very lucrative, however, not assured in the short term.
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Uniform Singapore Electricity Price fluctuates --> DR payout volatility
Implications:
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Payouts from DR will fluctuate
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USEP will react to market situations
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USEP has decreased, 2025 DR results likely to be lower than last few years
Reasons (hypothesized):
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Because of fluctuations in natural gas prices during covid in 2022, USEP was unusually high
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Since then various measures have been taken by EMA to bring USEP down
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DR (SG) enrolled capacity has increased by ~40% in ‘23/’24, showing a strong interest from market
The DSM (Demand Side Management) sandbox was launched in 2023, which could be the reason for ~40%+ increase in 2023 and 2024