Mr Sharael Taha: To ask the Minister for Trade and Industry with increasing electricity demand from new investments in energy-intensive sectors and the retiring of older power generation plants (a) what is the plan to ensure grid reliability and to generate above the required reserve margin of 27 per cent; (b) whether older power generation plants will be considered for continual operation if the newer plants are not ready; and (c) whether such consideration will put our transition to low- or zero- carbon power generation plans at risk and its impact to our environment.
Written Answer by Minister for Trade and Industry Gan Kim Yong
1. The reserve margin, which provides for planned and unplanned outages of generating units to safeguard the reliability of our power system, is currently above the 27% required reserve margin (RRM).
2. To ensure sufficient generation capacity, EMA has introduced a new Centralised Process. Moving forward, EMA will launch a Request for Proposal if additional generation capacity is needed in our power system. Only companies awarded a license under this process may plant new generation capacity. EMA has launched the first request in July 2023 for new generation capacity needed in 2028. This process strikes a balance between ensuring sufficient capacity for grid security and reliability while minimising the risk of overcapacity.
3. Should there be delays to new generation capacity coming online, EMA will work with the generation companies on mitigation measures, such as to review the retirement plans of the older generation plants.
4. Such delays are not expected to be prolonged, and will not fundamentally affect our plans to decarbonise the power sector by 2050.