The Open Electricity Market is a game-changing initiative by Singapore’s Energy Market Operator. The purpose of the initiative is to make it easier for households and businesses in Singapore to buy electricity from renewable energy sources such as solar and wind, or from other players in the market that sell electricity from renewable sources.
As a result, consumers can choose their electricity suppliers and contract lengths. In this article, we explain what an open electricity market in Singapore means for you as a consumer and how you can take advantage of this opportunity.
What is the Open Electricity Market?
The Open Electricity Market refers to the market for the sale and purchase of electricity, which is open to all market players. Electricity buyers can choose sellers in a competitive market. Sellers compete for the electricity buyers’ business by offering the lowest price and by using only renewable energy sources, such as solar and wind.
The Open Electricity Market is an important initiative that drives innovation in the power sector. It will encourage investment in clean energy, spur competition between providers and give consumers more choices as they decide how they would like to buy their electricity. On top of this, it will help consumers save money on their electricity bills. This is because renewable energy sources are less expensive than traditional sources, such as coal or gas power plants.
How will the Open Electricity Market benefit you?
The Open Electricity Market gives you the opportunity to choose your electricity supplier and to contract a fixed amount of electricity for an agreed period. The Open Electricity Market will help you make informed decisions about your energy use by giving consumers more information about their energy use and encouraging competition between suppliers. As a result, you can help save money on your electricity bill.
In addition to helping you reduce your energy costs, the Open Electricity Market also helps Singapore achieve its energy-related environmental commitments under the NDC. By allowing clean energy sources such as wind and solar power to compete on an equal footing with fossil fuel power generation, Singapore’s total emissions will be reduced while at the same time reducing our dependence on imported fuels.
What is the difference between the Open Electricity Market and the existing electricity market?
The electricity market currently allows you to choose your supplier. In addition, it will allow renewable power generators to sell power into the market. However, as a result of these changes, prices will rise as more suppliers enter the market and competition among suppliers increases. This may make it difficult for you to find a supplier that offers good value and matches your energy needs.
In contrast, in the Open Electricity Market (OEM), all electricity producers can compete on equal terms with each other. As a result, you will be able to find a supplier that offers better value for money and the energy needs that you have.
The Open Electricity Market will change the way you buy electricity. As a result, you can take advantage of the OEM to save money on your electricity bill and help Singapore achieve its environmental objectives.