Reimagining Tomorrow’s Market Systems: Insights from the Singapore Electricity Roundtable
At the Singapore Electricity Roundtable 2025, energy leaders came together to discuss how Singapore and the region can manage the rising costs of electricity while pushing ahead with the transition to cleaner power.
The panel featured Puah Kok Keong, Chief Executive of the Energy Market Authority (EMA); Rainer Korte, Commissioner of the Australian Energy Market Commission (AEMC); Toh Seong Wah, Chief Executive Officer of Energy Market Company (EMC); and Vickrem Vijayan, Chief Operating Officer for Singapore at Sembcorp Industries.
Why electricity costs are rising
Mr Puah explained that one key driver of costs is the high price of building new substations and underground cables in land-scarce Singapore. “Laying cables involves roadworks, contractors and even security officers. These costs add up,” he said. EMA regulates connection charges, but rising infrastructure costs are unavoidable.
Mr Korte noted that the problem is global. Australia, for example, is facing supply shortages for transformers and other grid equipment, pushing up costs. “It’s a seller’s market,” he said, adding that this makes it more important to get the most out of existing infrastructure and connect renewables at lower voltage levels.
The role of government support
Mr Vijayan said governments have a crucial role in supporting large-scale energy projects. In Europe, common rules make cross-border power trade easier. In Southeast Asia, however, different regulations between countries add complexity.
“These are billion-dollar projects,” he said. “Commercial bankability is a challenge, especially with risks like export bans or technical failures. Governments may need to do more than just regulate – they may need to help underwrite some of these risks.”
Making the market more flexible
Mr Puah explained that one key driver of costs is the high price of building new substations and underground cables in land-scarce Singapore. “Laying cables involves roadworks, contractors and even security officers. These costs add up,” he said. EMA regulates connection charges, but rising infrastructure costs are unavoidable.
Mr Korte noted that the problem is global. Australia, for example, is facing supply shortages for transformers and other grid equipment, pushing up costs. “It’s a seller’s market,” he said, adding that this makes it more important to get the most out of existing infrastructure and connect renewables at lower voltage levels.
The role of government support
Mr Vijayan said governments have a crucial role in supporting large-scale energy projects. In Europe, common rules make cross-border power trade easier. In Southeast Asia, however, different regulations between countries add complexity.
“These are billion-dollar projects,” he said. “Commercial bankability is a challenge, especially with risks like export bans or technical failures. Governments may need to do more than just regulate – they may need to help underwrite some of these risks.”
Making the market more flexible
Looking ahead, Mr Toh emphasised that flexibility will be the most important feature of Singapore’s National Electricity Market (NEMS). He highlighted three priorities: cross-border imports, solar power, and distributed energy resources (DER).
Imports can improve supply security, but they may also displace local gas plants, which currently provide critical stability for the grid. Solar power is important but intermittent, raising questions about who should bear the costs of managing this variability. “It’s not about penalising solar,” said Mr Toh. “It’s about sharing costs fairly.”
Recent reforms, such as letting batteries join the reserve market, are steps in the right direction. EMC is also looking at shorter dispatch periods to better reward flexibility. DERs, such as virtual power plants where buildings contribute capacity, could also help create a two-way grid.
Facing future uncertainties
The panellists agreed that the path ahead is uncertain. Mr Korte stressed the need for trust and transparency among stakeholders to meet net zero goals. Mr Puah reminded attendees that Singapore’s plan to peak emissions by 2028 depends on securing timely power imports.
Mr Vijayan cautioned against slowing solar growth, arguing instead for stronger support for batteries. Mr Toh called for more transparency in the market to help all players manage risks, while Mr Korte added that customers must be at the centre of future market design to keep costs fair.
Summing up, Mr Puah said: “This journey cannot be taken by government alone. We need to work with companies, market participants and EMC to succeed.”
Imports can improve supply security, but they may also displace local gas plants, which currently provide critical stability for the grid. Solar power is important but intermittent, raising questions about who should bear the costs of managing this variability. “It’s not about penalising solar,” said Mr Toh. “It’s about sharing costs fairly.”
Recent reforms, such as letting batteries join the reserve market, are steps in the right direction. EMC is also looking at shorter dispatch periods to better reward flexibility. DERs, such as virtual power plants where buildings contribute capacity, could also help create a two-way grid.
Facing future uncertainties
The panellists agreed that the path ahead is uncertain. Mr Korte stressed the need for trust and transparency among stakeholders to meet net zero goals. Mr Puah reminded attendees that Singapore’s plan to peak emissions by 2028 depends on securing timely power imports.
Mr Vijayan cautioned against slowing solar growth, arguing instead for stronger support for batteries. Mr Toh called for more transparency in the market to help all players manage risks, while Mr Korte added that customers must be at the centre of future market design to keep costs fair.
Summing up, Mr Puah said: “This journey cannot be taken by government alone. We need to work with companies, market participants and EMC to succeed.”
