Perks for more S'pore firms to cut peak-period electricity usage

More businesses will reap savings and earn rewards by lowering their energy usage during peak periods under an expanded programme by the Energy Market Authority (EMA).

- Shabana Begum

For example, businesses that own battery energy storage systems (ESS) of a certain capacity can reduce the electricity they draw from the grid during peak periods by relying on their in-house batteries to run operations.

While a direct benefit of this programme is lower electricity costs and financial incentives for participating businesses, adjusting electricity demand in response to peaks will relieve stress on the grid during high-demand periods and unplanned outages.

This is especially important in the future when Singapore greens its electricity mix. Solar energy is intermittent due to cloud cover, and electricity imports can be potentially variable due to availability, market conditions and transmission constraints.

EMA introduced this "demand flexibility" scheme through a two-year pilot in 2022, which included participants from energy-guzzling industries.

Announcing an expansion to the Demand Response programme on Oct 21, Deputy Prime Minister Gan Kim Yong said businesses with ESS and ComfortDelGro, which has electric vehicle (EV) charging stations, will be joining the programme.

He was speaking on the first day of the annual Singapore International Energy Week at the Sands Expo and Convention Centre.

Peak electricity demand usually happens in the afternoon, when commercial and industrial activities are running at full speed. When demand is high, wholesale prices from the Singapore wholesale electricity market also rise.