Out-Law News | 19 Nov 2021 | 7:03 am | 1 min. read
Singapore’s Energy Market Authority (EMA) has issued its first request for proposals (RFP1) to appoint electricity importers to import and sell 1.2 gigawatts (GW) of low carbon electricity to Singapore, beginning by 2027.
Potential importers must be able to demonstrate their reliability of supply, credibility, track record, cost competitiveness, and ability to manage carbon emissions during operations, according to an EMA statement. Proposals should include the proposed generation and interconnector design and the source of supply.
According to the RFP1 (58-page /1.25MB PDF), EMA wants to ensure that the complete portfolio of winning proposals comes from a diversified mix of sources.
William Stroll, an energy expert at Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “The requirement for diversity of supply is an important consideration for Singapore to ensure security of its energy supply. Prior to the launch of this tender round, we have seen a number of proposals floated for the import of electricity from a variety of Asia Pacific countries, including Laos, Indonesia, Malaysia and Australia. Interestingly the RRP1 does not limit the import of power to clean energy only, but the carbon emissions of the power source will be taken into account when reviewing bids.”
The participant must be Singapore-incorporated company. If the participant is a consortium, it may meet this requirement by registering a special purpose company in Singapore.
Imported electricity shall be non-intermittent, meaning “constant and stable during each half-hourly dispatch period”. Proposals with electricity supply from any coal-fired or nuclear power generation will not be accepted.
A participant’s proposal will include an initial bid and a final bid. The deadline for submitting the initial bids is by 1 April 2022 while the final bids are to be submitted by 1 June 2022. Winning proposals will be announced by end October 2022.
In October, the EMA announced its plan to invite two proposals for the supply of 4 gigawatts (GW) of low carbon electricity imports into the country by 2035. In addition to RFP1, RFP2 for the remaining quantities of electricity imports will be issued between April and June 2022, with imports expected to begin by 2035.
03 Nov 2021