Electric Power Systems
Singapore
Overview
2004 2005 2006 (estimated)
Total Market Size 3416 3785 3482
Total Local Production 1759 2441 2414
Total Exports 4569 6221 6574
Total Imports 6226 7646 7642
Imports from the U.S. 1390 1887 2296
Footnote: Exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The above statistics are unofficial estimates
Figures are in millions of US$
The electricity supply system is highly developed. Demand is expected to grow at an average annual rate of at least 5.0% to approximately 8,000MW over the next decade. In the last two years, the demand for electricity grew by an average of 4.2% per year as a result of strong economic growth.
The Energy Market Authority (EMA), a statutory board under the Ministry of Trade & Industry, is the regulator of electricity, piped gas and district cooling services. It was set up to drive the liberalization of both the electricity and gas industries in Singapore and to facilitate a competitive market. Singapore’s total generating capacity is 11,406MW – a breakdown is provided below. Peak demand for electricity is approximately 50%.
Temasek-owned Senoko Power has a generating capacity of 3,300MW, while Power Seraya, also Temasek-owned, has a generating capacity of 3,100MW; together they account for the biggest share of total electricity generation in Singapore. Tuas Power, also a subsidiary of Temasek Holdings, has a generating capacity of 2,670MW.
SembCorp Cogen (Singapore’s first privately developed independent power producer, and a government-linked company) with a 785MW generating capacity and Island Power with 800MW are two smaller generating companies that cater mainly to chemical and petrochemical plants located in the Jurong Petrochemical Complex. Others include Keppel Merlimau Cogen with 500MW of generating capacity and the National Environmental Agency with 251.2MW, which is primarily for their own consumption.
Electricity retailers are Keppel Electric, SembCorp Power, Tuas Power Supply, Senoko Energy Supply, Seraya Energy (holds 25% of the contestable retail market share) and Island Power. Strong economic growth has the retailers optimistic that demand for electricity will continue to increase.
Best Prospects/Services Return to top
Several trends are developing within the power sector that will have a bearing on current and future business opportunities for U.S. companies. Existing utilities will restructure themselves to meet new challenges posed by a liberalized market. Retailers may begin to offer or bundle a range of products and services for their customers. Generators will diversify their feedstock to improve generation efficiencies and ensure security of supplies. Local utilities will apply their management expertise and investment capital to pursue opportunities in the sector outside Singapore.
Electricity Consumption (GWh)
Year Domestic Manufacturing Other Industries Total
2003 6,507.1 13,706.7 11,777.9 31,985.7
2004 6,524.8 14,446.2 12,200.2 33,171.2
2005 6,750.3 15,005.0 13,005.8 34,761.3
Source: Singapore Yearbook of Statistics
Demand for power quality equipment and micro power systems is expected to increase, and new opportunities in the services sector, especially for those with prior experience in a liberalized energy market, may prove attractive. Currently, market drivers have been commercial and industrial customers such as high-rise buildings, hospitals, shopping complexes and manufacturing facilities that have purchased power systems for "stand-by" purposes.
At the last POWER-Gen Asia 2005 show held in Singapore, 18 U.S. firms exhibited and close to 5,000 trade visitors from various countries attended. POWER-GEN Asia is the region's premier power conference and exhibition. It offers genuinely exciting opportunities for international and national industry professionals to further their aims in this rapidly expanding power market.
Opportunities
Overall exports from the U.S. in this sector for 2006 are estimated to be at least 20% higher than the previous year. In addition, upcoming opportunities in Singapore offer strong future sales prospects for U.S. companies.
Industrial customers, especially in the chemical and wafer fabrication industries, have become increasingly interested in the relative ‘quality’ of the power they purchase. As businesses rely more heavily on modern, high-tech processes, variations in flow or voltage can damage and disrupt sensitive electronics, computers and microprocessors. Thus customers look to various types of power conditioning equipment to protect their sensitive equipment, and retailers explore bundling sales of such equipment in the range of services they offer to electricity buyers. The opportunities include "power enhancers," such as surge suppressors, voltage regulators and isolation transformers, and "power synthesizers," including motor generators, standby power supply and uninterruptible power supply with auxiliary generators.
With the liberalization of the electricity industry and the introduction of differential pricing to encourage large power users to distribute their demand over the day between peak and off-peak hours, such equipment will likely be in greater demand to help optimize energy usage and reduce energy purchasing costs. There may also be opportunities for suppliers of micro power systems or generator sets.
Resources
Trade Shows
Power-Gen 2008/9
(Date to be confirmed)
Relevant Singapore Government Offices
Energy Market Authority
Singapore Economic Development Board (SEDB)
U.S. Commercial Service, Singapore Contact
CHAN Yiu Kei, Commercial Specialist
Email: yiukei.chan@mail.doc.gov