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Developments in the National Electricity Market of Singapore (NEMS)

Presented by Toh Seong WahDeputy Chief Executive Officer

8 July 2015

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Agenda

NEMS Features and Recent Market Performance• Overview of NEMS

• Market performance in H1 2015

NEMS Evolution• Past and upcoming developments in the NEMS

Future Developments

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NEMS Features and Recent Market Performance

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National Electricity Market of Singapore (NEMS)

Market Features• Co-optimisation of energy, reserves, and regulation

• Security-constrained dispatch on a half-hourly basis

• Nodal pricing

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Drivers of Energy Prices

Security / transmission constraints

New generation

Tendering of vesting

Vesting Contract Quantity

Oil price

Supply disruptions

Demand projections

Demand Response

(DR)

Market competition

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Uniform Singapore Energy Price (USEP)

Entry of first new generation

company since market start

Registered capacity <10,000MW

Registered capacity >=10,000MW and

<11,000MW

Registered capacity >=11,000MW and

<12,000MW

Registered capacity >=12,000MW

Global economic downturn

Gas supply disruptions

Registered capacity in NEMS

exceeds 11,000MW

Data as at 21 June 2015

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Market Performance in H1 2015

Data as at 21 June 2015

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Periods Reaching Security Constraint Limit in H1 2015

1,450MW

750MW

USEP

Bus price range

Data as at 22 June 2015

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NEMS Evolution

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NEMS Market Participant Mix

Solar(350MW)DR

(50MW)

Data as at 21 June 2015

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Price Simulations Under Varying Supply Scenarios

High price incident on 28 May 2015

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Developments in NEMS Market Design

Interruptible Load

Introduction of Vesting Contracts

Embedded Generation

Reserve Envelope Modelling

Mixed Integer Programming (MIP) for regulation and reserve

Regulation Eligibility Check enhancement

Tie-Breaking of offers

Constraint Violation Penalties

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Mixed Integer Programming (MIP) for Reserve• Fairer allocation of reserve payments

• Lowers the risk to power system security

• Post-analysis shows full compliance

Tie-breaking of Offers• Aligns methodology to other developed power markets

• Increased dispatch stability for tied units

• Post-analysis shows successful tie-breaking rate

Developments in NEMS Market Design

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Upcoming NEMS Developments

Automatic Financial Penalty Scheme (AFPS)• Incentivises compliance to dispatch schedule

• Greater compliance enhances power system security

Demand Response (DR)• Improves market efficiency through enhanced price

discovery

• Promotes efficient investment decisions for system expansion

• Provides additional resource to improve system reliability

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USEP vs. Vesting Price

Data as at 21 June 2015

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Related Developments

SGX Electricity Futures Volume and Open Interest

SGX Electricity Futures Forward Curves

Data as at 19 June 2015

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NEMS Information Services

Subscription to NEMS data packages available• More details at https://www.emcsg.com/data

Power Market information

Power System information

Gas Market and System information

Real-time Power Market data

(eg. forecasted demand, energy prices)

Power System data

(eg. generation outage plans)

Gas System data

(eg. Projected Gas Curtailment Schedules)

Market trading reports Real-time advisory notices

Offer data

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EMC Fees vs. Tariffs

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EMC Fees

By April 2012, EMC Fee has halved since the market started

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Future Developments

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Future Developments

Business Development Initiatives• Secondary Gas Market

• FOB Singapore SGX LNG Index Group (SLInG)

Continued Commitment to the NEMS• Dedicated to bringing added value to our market

participants

• Fostering a vibrant NEMS to better handle the challenges of tomorrow

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Questions?

Thank you

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Important Notice:

© 2015 Energy Market Company Pte Ltd. All rights reserved. Unless authorised by law, no part of this presentation may be reproduced or distributed without prior permissionfrom Energy Market Company Pte Ltd (EMC). This presentation is meant only for general information and nothing in it may be construed as advice. Whilst EMC has takenreasonable care in the preparation of this presentation, EMC does not warrant its suitability for any purpose. You should always consult your professional advisors beforerelying on this presentation to make any decision.

If you have any specific queries about this presentation, you can write to info@emcsg.com.