SINGAPORE: The Energy Market Authority (EMA) is set to experiment with the deployment of energy storage systems (ESS) in Singapore, in a move that could bring cost savings for consumers.
ESS are batteries or other forms of technology deployed on the power grid to store electricity when demand is low and discharge it when demand spikes.
This reduces the need to upgrade infrastructure like substations or transformers to cater to short-term peaks in electricity demand, which in turn could provide savings for consumers.
EMA will test the technology through SP PowerAssets’ use of ESS at a substation in Bedok to smoothen electricity supply during high demand in homes. This is the first time the company is using ESS to do this.
SP PowerAssets is a subsidiary of SP Group.
“This is an alternative approach to upgrading transformers at the substation,” EMA said. “If successful, ESS can allow the electricity grid to be more cost-effective, providing savings to consumers.”
But it is too early to tell if this technology will lead to lower electricity prices. EMA will test the concept before deciding whether to deploy it on a large scale. If deployed, EMA will then determine how much cost savings consumers can get.
Another benefit is the ESS’ ability to increase levels of solar energy in Singapore’s energy mix, allowing the country to meet its climate change commitments. When paired with solar panels, ESS can store solar energy and overcome its intermittent nature.
“We see energy storage solutions as a key technology that will enhance our energy resilience, enable higher levels of solar power adoption and provide significant benefits to Singapore and Singaporeans,” Minister for Trade and Industry Chan Chun Sing said in opening remarks at the Singapore International Energy Week on Tuesday (Oct 30).
While ESS is a relatively new technology, it has been deployed on a small scale in countries like Australia and the US, where it has shown that it can optimise and regulate the delivery of power.
“We encourage industry to invest in ESS solutions to optimise their energy use and provide new solutions and business models to our market,” EMA said in a release on Tuesday.
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