Singapore is moving to boost incentives to use solar energy. With more commercial and industrial players installing solar panels, the Energy Market Authority (EMA) plans to simplify the rules so they can gain credits for excess solar power they generate and transfer to the national grid.
But this will apply only to generation units, including solar photo-voltaic (PV) systems, of below one megawatt each, said EMA, which is seeking industry views through a consultation paper.
At present, a company need not hold an electricity-generating licence if it produces power from a unit or units of less than 10MW capacity. But it still has to hold a wholesaler (generation) licence if these are connected to the national grid.
All generation and wholesaler licensees must register and comply with the rules of the Energy Market Company (EMC), which operates the electricity market here.
EMA said that to boost the adoption of solar energy, it has, since 2007, allowed solar-equipped households to transfer excess power to the grid, in exchange for credits, without having to register with EMC.
Households are paid the ‘regulated tariff less grid charges’ for the electricity they supply.
‘This simplified administrative arrangement was provided only for households on the grounds that their solar capacity is small and unlikely to distort the electricity market,’ EMC said.
To support solar efforts here, EMA extended the scheme to the Housing & Development Board’s (HDB) solar test projects at Serangoon North and Wellington Circle in July last year.
HDB is now moving to harness solar energy on a greater scale, having this month announced a $2.3 million plan to install solar panels on 30 public housing blocks in six precincts.
Each of the precincts - Jurong, Aljunied, Telok Blangah, Bishan, Ang Mo Kio and Jalan Besar - will reportedly save about $40,000 a year in electricity costs. Installation of the panels - covering a total area about 1.5 times the size of a football field and serving about 3,000 flats - is slated to start in the fourth quarter of this year.
EMA said that as generators with total installed capacity of less than 1MW ‘do not pose any technical or commercial threat to the system if they fail to operate’, it proposes to extend the credit payback system to non-residential players with generating capacity of less than 1MW.
These players, which need not be electricity market participants, will be compensated by the retailers from which they buy electricity, or SP Services, for power they transfer to the grid, EMA said.
