A Timeline of the Demand Response Program in Singapore

2012:  Demand Response implementation: EMA introduces a public consultation paper

• The Energy Market Authority (EMA) issued a public consultation paper on 22 October 2012 to seek feedback on the suggested approach to implementing a Demand Response programme in the National Electricity Market of Singapore (NEMS).

2013: FINAL DETERMINATION PAPER 2013 PUBLISHED

Key feedback incorporated after public consultations:

• Retailers are allowed to opt out of the program, forgoing both the benefits and uplift charges

• The requirement for loads to be curtailed within 10 minutes is revised, dispatch is to be based on the loads’ ramp-up and ramp-down rates 

• The price floor to be set at a dynamic level based on 1.5 times the Balance Vesting Price, instead of a fixed price floor

• Penalties are to be imposed only if licensed load providers are compliant with less than 95% of their dispatched schedule

A review after 3 years was decided.

2016: Implementation of the Demand Response (DR) Programme

• In April 2016, EMA introduced the DR program, allowing consumers to reduce their electricity consumption in response to high wholesale electricity prices, thereby enhancing system reliability and market efficiency.

2023: Launch of the Demand Side Management (DSM) Regulatory Sandbox

• EMA initiated a two-year regulatory sandbox to enhance participation in the DR and IL programs, aiming to increase system flexibility and grid resilience.

• 76 MW of curtailment capacity (43.4% increase compared to the previous year)

• $28.4M in payouts (33% increase compared to the previous year)

2024: Proposed Enhancements to DR and IL Programmes

• BESS-enabled Energy Generation is allowed to participate as a Demand Response Asset 

• A sandbox program is announced for BESS participation (greater than 1 MW and less than MW) 

• Diesel generators, steam turbines, and other energy generation sources are not allowed to participate, to prevent investment in less efficient energy sources 

• Trial period of 6 months for new Load Registered Facilities, with 2 event concessions

• Revised penalty formula such that during TPC activations

Demand Response has been present in the Singapore market for some time now. It has evolved and, with most steps, become more lucrative for participants.