28 November 2024

On 21 October 2024, the Energy Market Authority (“EMA”) announced that it is developing a Future Grid Capabilities Roadmap (“Roadmap”) to support the energy transition and launched a consultation paper and call for regulatory sandbox proposals to explore the benefits of virtual power plants (“VPPs”).

Background

As Singapore decarbonises its power sector, the nation’s energy supply mix will become more diverse with the growing deployment of domestic solar and electricity imports. The electricity grid will also increase in complexity with the addition of distributed energy resources (“DERs”) such as rooftop solar photovoltaics, battery energy storage systems, and electric vehicle chargers. In a media release, EMA highlighted the initiatives it has embarked on to develop capabilities for the future grid to support this transition.

Future Grid Capabilities Roadmap

The Roadmap, which EMA is developing in collaboration with SP Group, will outline challenges associated with the changing context of Singapore’s power system and identify key focus areas to transform the electricity grid to manage new complexities, including:

  • harnessing DERs to strengthen grid resilience by providing energy, ancillary services, or demand response services to shift energy usage to off-peak periods;
  • enhancing grid planning, control, and maintenance efforts such as through the development of digital solutions such as the grid digital twin, distributed energy resources management system to optimise manpower and reduce manual processes; and
  • exploring solutions to maintain grid stability as the share of renewable energy in Singapore’s energy mix increases.

The Roadmap, which will be launched later this year, will set the direction to build Singapore’s future grid capabilities through a combination of research and development, pilot projects, and deployment efforts. The focus areas and initiatives aim to support the energy transition by fostering targeted innovations that enhance grid resilience and reliability.

Regulatory sandbox for virtual power plants

The consultation paper and call for regulatory sandbox proposals to explore the benefits of VPPs is part of EMA’s efforts to harness DERs. A VPP is a digital platform capable of controlling, optimising, and aggregating a network of DERs across various locations, to operate as a single generator to provide energy and ancillary services to the electricity grid. This can unlock the potential for DERs to play a greater and broader range of roles in supporting the energy transition. EMA invites the industry to submit VPP sandbox proposals by 31 December 2024.

Reference materials

The following materials are available on the EMA website www.ema.gov.sg: