Energy Transition Measures and Other Amendments Bill introduced in Parliament

27 August 2024

On 6 August 2024, the Energy Transition Measures and Other Amendments Bill (“Bill”) was introduced in Parliament. The Bill seeks to amend the Energy Market Authority of Singapore Act 2001 (“EMA Act”), the Electricity Act 2001 (“Electricity Act”), and the Gas Act 2001 (“Gas Act”) (collectively, “Acts”) to update Singapore’s regulatory regime for energy markets to support decarbonisation, ensure energy security, and keep Singapore’s power sector cost competitive. These measures are part of Singapore’s Long-Term Low-Emissions Development Strategy to achieve net-zero emissions by 2050.

From 8 May 2024 to 5 June 2024, the Ministry of Trade and Industry (“MTI”) and Energy Market Authority (“EMA”) ran a public consultation seeking feedback on proposed legislative amendments to the Acts. On 24 June 2024, a summary of the key feedback and responses from the public consultation was published. Most respondents sought clarification on the scope of the proposed legislative amendments. MTI and EMA have taken the feedback into consideration when finalising the legislative amendments. For more information about the public consultation, please see our article “EMA and MTI seek comments on proposed changes to Energy Market Authority of Singapore Act 2001, Electricity Act 2001 and Gas Act 2001”.

Set out below is a summary of the key features of the Bill:

  • Set up the Future Energy Fund (“FEF”) under EMA: The Government will set up the FEF under the EMA Act, with an initial injection of $5 billion, to support investments for Singapore’s energy transition.
  • Establish regulatory regime for centralised gas procurement: As announced in October 2023, MTI and EMA intend to establish a Central Gas Entity (“CGE”) to aggregate the demand for gas from power generation companies and centralise gas procurement for the power sector. The Electricity Act and the Gas Act will be amended to (i) empower EMA to regulate the CGE, and (ii) introduce the requirement for power generation companies to procure gas solely from the CGE.
  • Allow EMA to recover costs for energy security, market development, and decarbonisation related initiatives: The amendments to the Electricity Act and the Gas Act will allow EMA to recover costs of implementing new initiatives to (i) strengthen energy security, (ii) develop a competitive market, and/or (iii) support the decarbonisation of the power sector. EMA will consult stakeholders and give adequate notice prior to introducing the new initiatives and associated costs. 
  • Facilitate shared access to critical energy infrastructure: The amendments to the Electricity Act and the Gas Act will allow EMA to direct owners of critical energy infrastructure to enter an agreement with licensees to allow licensees to gain access to critical energy infrastructure.
  • Require owners of key electricity and gas assets to seek approval when repurposing assets: The amendments to the Electricity and the Gas Act will require owners of key electricity and gas assets to seek EMA’s approval before repurposing such assets, to facilitate EMA’s system planning and safeguard energy security.
  • Empower EMA to implement power rationing during emergencies: The amendments to the Electricity Act will empower EMA to direct licensees and consumers to ration power so that it can maintain the stability of the power system during emergencies where electricity supply is disrupted.

Reference materials

The following materials are available from Singapore Statutes Online sso.agc.gov.sg, the MTI website www.mti.gov.sg, and REACH website www.reach.gov.sg: