Singapore power and renewable markets H2 2016 Summary: Low electricity prices - not sustainable
Singapore wholesale electricity prices have stayed low throughout 2016. Apart from spikes related to power outages, price movements in recent months are in sync with the changing oil prices and hence the gas prices. Overcapacity in the market and over-contracted gas contract positions from the Gencos have pushed the prices below the operating cost of gas-fired combined cycle plants. The new incumbents without access to piped gas supply are under even greater pressure.