Singapore energy regulator could be authorised to provide ’critical’ services

Tan made the proposal at the second reading of the Energy (Resilience Measures and Miscellaneous Amendments) Bill. He also proposed updates to the relevant aspects of Singapore's EMA Act, Electricity Act and Gas Act to ensure that Singapore's energy supply remains secure and reliable, according to a local press report.

The Energy (Resilience Measures and Miscellaneous Amendments) Bill was proposed by Singapore’s Ministry of Trade and Industry (MTI) and EMA in September. Once in force, the bill would amend the existing Energy Market Authority of Singapore Act, Electricity Act and Gas Act. It would authorise the EMA to acquire, build, own and operate “critical” energy infrastructure and to raise capital or issue bonds to finance the construction of that infrastructure.

According to Tan, such infrastructure includes generating units, energy storage solutions and transmission infrastructure, including those that may be required for cross-border electricity trading.

The EMA would set up safeguards to ensure that it does not compete unfairly with private generation companies. The EMA could also set up a separate subsidiary to own and operate generating units, and would set proper procedures and governance structures to reduce any conflicts of interest.

Jia Lin Ho of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “To date, Singapore largely depends on the private sector to provide for the country’s energy needs. Against the global fuel shortage and uncertainty surrounding the energy market, the broad powers given to EMA will assist Singapore in the early stages of its transition to low carbon alternatives, and it will be interesting to observe how EMA will work with private sector players towards achieving Singapore’s goal to decarbonise its power sector, diversify its energy sources and enhance the country’s energy security. ”