Overview of USEP and Supply Cushion – Jan to Oct 2025

In September, electricity demand in the Wholesale Electricity Market fell by 1.1 percent to 6,552MW, while supply dipped slightly by 0.2 percent to 8,037MW. This led to a 0.7 percentage point increase in the supply cushion to 18.5 percent.

Despite the higher supply cushion and a 1.5 percent drop in fuel oil prices compared to August, the monthly average Uniform Singapore Energy Price (USEP) in September edged up by 2.9 percent to $106.53/MWh  . There were eight periods in September when the USEP cleared above $500.00/MWh, compared to one period in August. Daily USEP in September ranged from $79.50/MWh to $279.24/MWh.

In October, demand rebounded by 0.5 percent to 6,582MW, and supply rose more significantly by 2.6 percent to 8,246MW. This pushed the supply cushion up by 1.7 percentage points to 20.2 percent – the first time it has exceeded 20.0 percent since November 2021.

Additionally, forecasted solar generation (from Periods 15 to 38) reached a record monthly average of 450MW, the highest since solar was incorporated into the Market Clearing Engine on 21 February 2024.

The monthly average USEP in October fell by 4.2 percent to $102.04/MWh, in line with a 4.5 percent drop in fuel oil prices as well as an increase in supply cushion. Daily USEP ranged from $83.59/MWh to $137.28/MWh.