Singapore Energy Market Authority Annual Report 2016-17
Total Page:16
File Type:pdf, Size:1020Kb
SMART ENERGY SUSTAINABLE FUTURE ENERGY MARKET AUTHORITY ANNUAL REPORT 2016/17 2 3 OUR VISION SMART ENERGY, SUSTAINABLE FUTURE “Smart Energy” describes how we seek to harness, deliver and utilise energy in an innovative and efficient way. “Sustainable Future” highlights the need to develop robust energy solutions that endure over time. OUR MISSION ABOUT THE ENERGY MARKET AUTHORITY TO FORGE A PROGRESSIVE ENERGY LANDSCAPE FOR SUSTAINED GROWTH EMA seeks to develop, in partnership with all stakeholders, an energy landscape that is forward-looking, innovative and The Energy Market Authority (EMA) is a statutory board under the Ministry of Trade and vibrant. The aim is to create an energy sector that contributes to sustained growth, for the benefit of all Singaporeans. Industry. Our main goals are to ensure a reliable and secure energy supply, promote We will achieve our Mission and Vision through: effective competition in the energy market, and develop a dynamic energy sector in Singapore. Through our work, we seek to forge a progressive energy landscape for • A Secure Energy Supply We operate the power system and promote the safe use of electricity and gas to ensure that the supply of energy is sustained growth. reliable and secure. • A Competitive Energy Market We promote effective competition with a sound regulatory framework that encourages investment and prevents the exercise of market power. • A Dynamic Energy Sector We develop and promote the energy industry, facilitating the efficient use of energy, and supporting R&D efforts to secure our energy future. • A High Performance Organisation We embrace change and seek continuous improvements in our systems, processes and people. These four goals reflect the key areas of EMA’s work, i.e. system operation, market regulation, industry development and promotion, as well as our own internal drive for organisational excellence. 4 > List of Board Members 5 > Senior Management 5 > Organisation Structure 6 > Securing Singapore’s Energy Future 12 > Ensuring a Competitive Energy Market 18 > Fostering a Dynamic Energy Sector 24 > Fostering a High Performance Organisation 27 > Financial Highlights 31 > Annual Financial Statements 4 5 List of Board Senior Members Management MR NG HOW YUE DR LIEW AH CHOY MR QUEK SEE TIAT MR NG WAI CHOONG MR YEO YEK SENG MR KNG MENG HWEE CHAIRMAN MEMBER MEMBER Chief Executive Deputy Chief Executive Deputy Chief Executive Economic Regulation Industry Regulation Division and Permanent Secretary, Adjunct Professor, President, Division Power System Operation Division Ministry of Law Department of Electrical Council for Estate Agencies & Computer Engineering, MR BERNARD NEE MR SOH YAP CHOON MR SOH SAI BOR National University of Deputy Chief Executive Assistant Chief Executive Acting Assistant Chief Executive Singapore, and Corporate Services Group Power System Operation Economic Regulation Division Chief Executive Officer, and Energy Planning & Division EquiVolt Pte Ltd Development Division (Since 1 April 2017) MR NG WAI CHOONG MR PEK HAK BIN MR THAM MIN YEW MEMBER MEMBER RUSSELL Organisation Chief Executive, Group Chief Executive MEMBER Energy Market Authority Officer, Corporate Vice President, Structure Cronus Energy Pte Ltd Regional President, Asia Business Development, CORPORATE SERVICES GROUP INDUSTRY REGULATION DIVISION Applied Materials • Corporate Communications Department • Electricity Industry Regulation Department • Finance & Administration Department • Gas Industry Regulation Department • Human Resource & Organisational MR CHANG MENG TENG PROFESSOR PHANG SOCK MR YEAP POH LEONG Development Department MEMBER YONG ANDRE POWER SYSTEM OPERATION DIVISION • Information Technology Department Chairman, MEMBER MEMBER • Energy Management Systems Department • Legal Department Squire Mech Pte Ltd Vice Provost (Faculty Senior Partner, • Gas System Supervision Department Dispute Resolution, (Till 31 March 2017) Matters), • Security & Emergency Planning Department Head, Celia Moh Chair and • System Control Department International Arbitration, Professor of Economics, • System Stability & Planning Department Rajah and Tann Singapore Management ECONOMIC REGULATION DIVISION Singapore LLP University • Economic Regulation & Licensing Department • Market Development & Surveillance Department MR KON YIN TONG MS QUAH LEY HOON MR ZIA ZAMAN MEMBER MEMBER MEMBER ENERGY PLANNING & DEVELOPMENT DIVISION Managing Partner, Chief Editor (English Founder and Chief Executive • Energy Technology & Data Department Foo Kon Tan LLP Current Affairs & Officer, • External Relations Department International News), LumenLab, and • Industry Development Department MediaCorp Senior Vice President and • Policy & Planning Department Chief Innovation Officer, MetLife Innovation Centre Pte Ltd IN APPRECIATION We would like to express our appreciation to our former board member, Mr Chang Meng Teng, for his guidance and contribution to EMA. SECURING SINGAPORE’S ENERGY FUTURE Image courtesy of Danny Santos, Singapore Tourism Board. 8 9 Securing Singapore’s Energy Future About 95 percent of our electricity is generated by natural gas. To secure our gas supply, the expansion of the Liquefied FACILITATING SOLAR STRENGTHENING SYSTEM The LNG Terminal underwent a complete shutdown in November Natural Gas (LNG) Terminal to 11 million tonnes per annum will be completed in 3Q 2017. In addition, a nitrogen facility DEPLOYMENT RESILIENCY will enable SLNG to receive LNG with varying specifications from more diverse sources. Meanwhile, construction of the 2016 for tie-in works for a new gas fourth storage tank remains on target for 1Q 2018. EMA has been taking proactive steps Regular studies done by global pipeline. Steps were taken with to facilitate solar deployment in a energy consultancy DNV GL show the industry and power generation EMA appointed Pavilion Gas Pte Ltd and Shell Eastern Trading (Pte) Ltd in October 2016 to meet the next tranche of LNG sustainable manner as the technology that Singapore scored well in terms companies to mitigate the impact of demand. Licences for the two new LNG importers are expected to commence in 2H 2017. Once the new LNG franchise becomes commercially viable. On of grid charges and reliability. gas disruption on end-users and on begins, EMA will allow third-party spot imports and new piped natural gas imports on a case-by-case basis. This will the R&D front, EMA is developing We have one of the most reliable electricity pool prices. enhance the diversity of Singapore’s gas supply sources and encourage greater gas-on-gas competition in the domestic solar forecasting capabilities and electricity grids in the world, with market. energy storage systems to support less than 14 seconds (0.23 mins) the growing deployment of solar of interrupted power supply per photovoltaic (PV) systems. At the customer in 2016. This was much Singapore International Energy Week lower compared with Osaka (4 mins), (SIEW) 2016, EMA launched a solar Hong Kong (23.4 mins), London (33.6 irradiance heat map on its website. mins) and New York (20.53 mins).1 FUEL MIX FOR ELECTRICITY GENERATION This graphical heat map shows the near real-time variations of solar EMA continued to strengthen irradiance across the island. our energy system resiliency and 3.92% 4.08% 4.17% 0.70% 0.66% 0.65% reliability by closely supervising the In 2014, the Government announced real-time operation of the natural a plan to raise the adoption of gas transmission system. This solar energy to 350 MegaWatt peak would ensure security and better (MWp) by 2020. Since then, the coordination in the operations of installed capacity of solar has almost the electricity and gas systems, quadrupled, reaching 129.8 MWp in particularly during a gas system 1Q 2017. Beyond 2020, we plan to emergency. further raise the adoption of solar power in our system to 1 GigaWatt peak (GWp). This will support the achievement of Singapore’s climate 95.38% 95.26% 95.18% 0.59 0.57 change pledge to reduce our 0.013 0.23 0.011 Year 2014 Year 2015 Year 2016 emissions intensity by 36 percent 0.006 from 2005 levels by 2030. Year Year 2014 2015 2016 2014 2015 2016 Natural Gas Petroleum Others Singapore SAIDI (min) Singapore SAIFI SAIDI (System Average Interruption Duration SAIFI (System Average Interruption Frequency Index) measures the average interruption time Index) measures the average number of per customer in minutes interruptions per customer 1 2015 SAIDI figures from DNV GL’s Benchmarking Study of Grid Price and Performance Report. 10 11 ENHANCING OPERATIONAL • Enhancing SPPG’s Letter of PLANNING FOR EXCELLENCE Requirements for earthworks in EMERGENCY the vicinity of high voltage cables PREPAREDNESS EMA continued to work with and high pressure gas pipelines. With cyber threats becoming industry stakeholders to review A new provision was included more advanced and persistent, their maintenance regime as for SPPG to request the EMA reviewed its cyber mitigation part of enhancing the reliability earthworks contractor to stop measures in February 2016, of the electricity network. The work. This is in the event of elevating these from best practices review analysed maintenance damage or suspected damage to to mandatory compliance. EMA practices, plant design, emergency an electricity cable or gas also conducted joint cyber system preparedness and standard operating pipeline. SPPG could then carry resilience readiness reviews with procedures to deal with gas and out the necessary investigations Senoko Energy, YTL PowerSeraya and electricity emergencies. EMA and and repair