Singapore power and renewable markets long-term outlook 2016
Singapore wholesale electricity prices (WEP) have further slumped to below SRMC (Short Run Marginal Cost) following the commissioning of the 411 MW Tuaspring CCGT power plant. Power prices in the first three months of this year have averaged US$40/MWh. This is well below the estimated SRMC of CCGTs plants at US$50/MWh and LRMC (Long Run Marginal Cost) of US$65/MWh at a LNG price of 6.8/mmbtu. These prices are expected to remain at current levels over the next two years resulting in negative spark spreads and hence the power plants using LNG only will even have difficulties recovering their SRMC. This has raised doubts over the sustainability of the new entrants.
Electricity prices drop below SRMC of power plants
Negative spark spread over the next couple of years
Reserve Margin increase further
Environmental policy and renewables In this report we introduce a new section covering the renewable and environmental policies in the country and status of renewable growth along with future prospects. In addition, we present the contribution to national emissions from the power sector and analyse the impact of COP21 commitments made by the government for reducing emissions.