Singapore to complete power market review by 2026

Mergers and acquisitions may still be approved pending results.

Singapore’s Energy Market Authority (EMA) is reviewing how the power market should be managed going forward, with a target completion by 2026.

In a statement, EMA said this is in line with the new market guardrails and structural shifts in the electricity markets.

Since 2016, the energy regulator has implemented a market share cap of 25% for any generation licensee to prevent market concentration in the Singapore Wholesale Electricity Market (SWEM). Guardrails such as the Temporary Price Cap were then introduced in 2023 to mitigate extreme price volatility in the SWEM.

Pending the completion of the review, EMA said it may permit mergers and acquisitions where the combined entity exceeds the 25% market share cap, provided binding commitments are made to ensure protection of consumers.

EMA will also monitor market offers in both the SWEM and retail market, to ensure compliance with these commitments. The regulator will also oversee market participants’ offers in both markets to ensure sufficient offers of retail contracts in the Open Electricity Market, and take action against instances of anti-competitive behaviour.

Singapore has a pipeline of more than 2.4 gigawatts of new gas-fired power plants coming online over the next four years. It also expects further increases in its domestic solar capacity, and the entry of large-scale low-carbon electricity imports.