Case study

Energy Market Authority, Singapore

Helping the Republic of Singapore to revolutionize its electricity market

In one of the fastest yet most precisely controlled implementations of its kind, PA helped the Republic of Singapore to launch a fully competitive electricity market – the first of its kind in Asia – combining industry best practice with technical and business innovation.

The Singapore Government’s efficiency targets are being spectacularly achieved: after just a few months wholesale electricity prices have come down by around 10% and the cost of meeting reserve energy requirements has fallen by around 70%. The new market is also satisfying other key objectives, such as transparency of pricing and encouragement of inward investment into Singapore.

PA’s contribution focused on three major areas: market design, programme management and development of IT systems. A multi-skilled PA team collaborated closely with five direct clients and many more stakeholders on planning and trialing the new market, ensuring that the industry was able to face this momentous transformation with confidence.

The market went live smoothly on 1 January 2003, following a two-and-a-half year collaboration between PA and the regulator, the Energy Market Authority of Singapore (EMA).