Singapore to award up to $44m to operators of first two advanced CCGTs

The turbines will be deployed by December 2026.

Singapore’s Energy Market Authority (EMA) is set to award up to $44m under the Advanced Combined Cycle Gas Turbine (CCGT) Incentive Scheme to operators of the first two advanced CCGTs in the city-state.

According to EMA, the scheme is part of efforts to encourage the adoption of advanced CCGTs to improve the power sector’s generation efficiency and reduce carbon emissions.

The CCGTs, operated by Keppel’s Infrastructure Division and Sembcorp Industries, are expected to be deployed by December 2026. These are projected to produce at least 200,000 tonnes less carbon emissions annually than current CCGTs in the power system, equivalent to reducing the carbon emissions of around 80,000 households in Singapore in a year.

EMA noted that given the large capacities of these technologies, they incur additional reserve costs as they require larger reserves for contingencies.

“The scheme will thus help to offset the additional reserve cost incurred for being the first adopters of advanced CCGTs in Singapore,” EMA said.

“As more advanced CCGTs are deployed, the reserve cost is shared across more CCGTs and the cost borne per CCGT will decrease. At that point, advanced CCGTs are not expected to incur any more cost disadvantage compared to current CCGTs as efficiency benefits outweigh the cost,” it added.