New Bill Strengthens EMA’s Ability to Regulate and Ensures Energy Transition
On August 6, 2024, Singapore introduced the Energy Transition Measures and Other Amendments Bill in Parliament, which aims to enhance the nation’s energy security. The bill includes several key provisions, including emergency power rationing, centralized gas procurement, and the establishment of a new fund to support energy transition.
The Energy Market Authority (EMA) will be empowered to direct power rationing during emergencies when electricity supply is disrupted. However, EMA assures that power rationing will be implemented only as a “last resort” and will be lifted as soon as possible. This measure is part of broader preparations to safeguard Singapore against potential energy disruptions, even after the nation successfully navigated the global energy crisis in 2021 and 2022.
One of the bill’s core proposals is the establishment of a regulatory regime for centralized gas procurement. By creating a Central Gas Entity (CGE), EMA aims to aggregate demand for gas from power generation companies, ensuring a more diversified and reliable energy supply.
The bill also introduces a framework for cost recovery to fund initiatives designed to strengthen energy security and decarbonize the power sector. EMA will be authorized to recover costs from those who benefit from these initiatives but assures that the process will be managed carefully to keep energy prices in check.
Additional measures include enabling shared access to critical infrastructure and requiring EMA approval for the repurposing of energy assets to ensure continued energy security and system reliability. The bill also paves the way for the creation of the Future Energy Fund, which will receive an initial investment of S$5 billion to support Singapore’s adoption of low-carbon energy technologies.
These steps reflect Singapore’s commitment to adapting to global energy challenges while ensuring energy security, economic stability, and environmental sustainability.
