The Energy Market Authority (EMA) said initiatives by the Singapore Mercantile Exchange (SMX) and Singapore Exchange (SGX) to push energy trading platforms are encouraging and could pave the way for a carbon trading market here.
But that’s unlikely to be anytime soon, as there are still many factors holding it back.
EMA CEO Lawrence Wong said this to reporters ahead of the upcoming Singapore International Energy Week at end-October.
A network of charging stations for electric vehicles is in the pipeline, with a tender up for the building of the infrastructure. And the EMA will announce the winner of the tender soon.
This is just one of many key announcements being made in the lead up to Singapore International Energy Week from October 27 to November 4. .
Others include the winner of the multimillion-dollar pilot project for a smart grid that allows consumers to optimise power use, and winners of the Smart Energy Challenge, launched to identify innovative ideas.
EMA said attendance to the annual summit has been doubling each year and they expect over 10,000 participants this year.
Wong said: “There is also greater interest from the political side and we are getting energy ministers from the region - from Southeast Asian countries, China and from the Middle Eastern countries.
“They are interested to come because we have been able to succeed in growing the energy event. They see this as a platform which they can come together and discuss energy issues which are relevant to them and to the region.”
And with increased interest in the energy space, EMA expects the trading of energy-related instruments to mature.
It sees potential for a carbon trading market, especially following the debut of the SMX and energy-related securities.
However, EMA said this is unlikely to happen near to mid-term as the market is not yet ready, as it largely depends on global trends and political conditions improving.
