Response by Minister of State for Trade and Industry Gan Siow Huang on motion for adjournment on “Singapore Energy Resilience Strategy: An Off-Grid and Micro-Grid Power Using Smart Energy Management Solutions to be Deployed Islandwide”

Introduction

1)             Mr Speaker, I thank the Honourable Member Mr Azhar Othman, for his energising adjournment motion. 

2)             The power grid is like the backbone of our body – it holds the system together, connecting power generation sources and end-consumers. The Government recognises the importance of having a resilient and reliable grid to power our economy and our daily lives. 

3)             A key factor underpinning our grid’s resilience is its interconnectedness. The grid is connected to all our power stations. If any generating unit were to trip, other generating units can ramp up to meet the shortfall. The transmission and distribution network itself is also designed with some redundancy, to minimise the impact in the event of a single equipment failure. 

4)             We recognise that a centralised grid also means that upstream disruptions – such as interruptions to fuel supply – may have system-wide consequences. 

5)             That is why we have diversified our sources of gas supplies and maintain fuel reserves in case of disruptions. 

6)             Mr Speaker, we take our power system reliability very seriously. Singapore has one of the most reliable electricity grids in the world today. In 2025, the average power interruption time was less than one minute per customer on mainland Singapore, and the average frequency of interruptions was about 0.02 times per customer. I would like to thank EMA, SP Group, and Gencos for the hard work that their engineers and workers put in tirelessly to achieve this. 

7)             As we introduce more distributed energy resources and renewables such as solar, the grid design will become even more important. 

a)    On the supply side, our energy mix will become more diverse as we scale up domestic solar and electricity imports. We will have more distributed energy resources across the island, such as rooftop solar panels and battery energy storage systems. Specifically for solar, power generation fluctuates with cloud cover and weather in the daytime. And at night, there is no solar electricity. The intermittency brings new challenges to the system. 

b)    On the demand side, Singapore’s electricity demand is expected to increase significantly with the growth of electricity-intensive loads such as data centres and electric vehicles. There will be greater impetus to manage load profiles to optimise usage of grid capacity. 

8)             We therefore need to accelerate grid innovation to build a more responsive grid, while ensuring system stability and optimising land use.

Singapore’s Energy Resilience Strategy

9)             Let me set out what we are already doing. 

10)          First, we are planning ahead and putting the required infrastructure in place to support the grid of the future. 

a)    EMA and SP Group developed the Future Grid Capabilities Roadmap last year to chart a clear direction for building new capabilities. One concrete outcome is the upcoming SP Technology Laboratory, which will focus on developing new tools and solutions for grid planning and operations. This is essentially the research and development arm that will help keep Singapore's grid ahead of the curve. 

b)    Beyond planning, we are also deploying new physical assets to make the grid more resilient. Sembcorp's large-scale battery energy storage system on Jurong Island is one example. It can respond quickly to sudden shifts in supply, helping to keep the system stable when renewable energy sources like solar fluctuate. 

11)          Second, we are making the grid more flexible and responsive to change. With more solar, batteries, and electric vehicles coming online, the grid needs to be able to handle greater variability in both supply and demand. Flexibility is what allows the grid to absorb those fluctuations without compromising stability. 

a)    EMA's Demand-side Flexibility Roadmap sets out how this will work in practice. Essentially, EV charging stations and smaller battery storage systems can participate in helping to stabilise the grid — for instance, by drawing less power or releasing stored energy when the system is under stress. EMA is currently piloting this with ComfortDelGro to test how it works in a real-world setting. 

b)    EMA will also launch a Virtual Power Plant pilot. Virtual Power Plants are digital platforms that can aggregate and optimise distributed energy resources such as solar and batteries as a single power source to meet demand. 

Off-Grid and Micro-Grid Solutions

12)          Mr Othman raised the idea of deploying off-grid and micro-grid power systems across Singapore, to support grid resilience and also to serve as backup power in the event of potential disruptions. I thank him for his knowledge and ideas. 

13)          Indeed, microgrids are one of several distributed energy solutions that we will study further. 

a)    If managed well, such distributed energy solutions have the potential to provide an additional layer of safeguard by providing energy, ancillary services, or demand response to smoothen peak periods. 

b)    However, their suitability depends on the operating environment and specific needs, provided the safety requirements and technical standards are met. 

c)    Mr Othman suggested the possibility of deploying Battery Energy Storage Systems in HDB blocks and microgrids in every town. We will have to study this further, because high-power battery systems also have to comply with SCDF’s fire safety standards, which could require additional space and safety infrastructure in densely populated HDB blocks. 

d)    Microgrid deployment also comes with real challenges – they could cost more to operate than larger grid systems, and may offer lower power reliability if they lack sufficient reserves and redundancies. To be clear, this is not insurmountable. As technology matures and deployment models evolve, we expect many of these challenges to become more manageable over time. 

14)          Today, microgrids are deployed in Singapore, primarily to support test-bedding of new technologies and in places where there are specific needs. 

a)    The Singapore Institute of Technology has collaborated with SP Group to develop Singapore’s first experimental urban micro-grid on campus. The micro-grid will support test-bedding of new technologies and solutions in a controlled environment, while providing students the opportunity to work with industry partners and energy start-ups. 

b)    In addition, decentralised off-grid energy solutions are commonly deployed by commercial and industrial users. Facilities with critical loads, such as data centres, may invest in on-site generation, battery storage or hybrid systems to enhance reliability, based on their specific needs and constraints. 

15)          Diesel generators are an off-grid solution that is being used today. They are typically deployed as localised backup for individual facilities, such as hospitals and data centres, to continue running their essential operations in the event of a power disruption. 

a)    Battery energy storage system is an alternative source of backup power, although the upfront cost of deploying battery energy storage system is currently still higher than for diesel generators at the same power setting. 

b)    Battery energy storage system also needs to be recharged, unlike diesel generators. As batteries become more cost-competitive, we expect more end-users to deploy batteries as off-grid solutions, if it meets their operational requirements and as a way of lowering their emissions. 

16)          Mr Othman asked about the Pulau Ubin Micro Grid. The Pulau Ubin Micro-Grid was launched in 2013 as an R&D testbed to reduce reliance on diesel for power generation on the island. It is powered by solar PV, supported by a battery energy storage system and diesel generators, and serves about 30 residential and business consumers. Some system reliability issues have surfaced in recent years. And the micro-grid operator, EDP Renewables, is working to upgrade the system to enhance its overall reliability. 

17)          We will continue to study how micro-grids and other distributed energy resources can complement our existing measures to support Singapore's energy resilience. 

Government Support to Enhance Grid Resilience and Innovation

18)          As we do so, we welcome partnerships with the industry on innovative new solutions that can be applied in Singapore, be it on micro-grids or other aspects of grid planning, development, and operations. 

a)    Last year, EMA launched the Energy Grid 3.0 Grant Call. Research consortia were invited to submit proposals aimed at enhancing grid planning and operations capabilities, as well as solutions to manage new needs such as inertia. EMA will publish the results of the grant call soon. 

19)          This year, the Government has set aside $800 million under the Decarbonisation Grand Challenge, to support research and innovation in low-carbon technologies. This includes energy storage systems and grid modernisation. These efforts reflect our commitment to building a resilient and innovative grid, and we look forward to more impactful and transformative partnerships with industry on this front. 

Conclusion

20)          Mr Speaker, the Government is committed to ensuring Singapore’s power system remains resilient and reliable as we navigate the energy transition. We will continue to invest in grid innovation, study developments from around the world, and work closely with industry and researchers to deploy suitable, cost-effective solutions for Singapore. 

21)          Together, we will build a strong backbone that powers Singapore’s future. 

22)          Thank you.