The Energy Market Authority of Singapore has introduced a new demand response programme enabling customers to voluntarily reduce their demand for electricity, and benefit from decreased energy prices especially when wholesale electricity prices are high or in the case of constrained generation. It integrates demand response into the wholesale electricity market and is anticipated to contribute to overall system efficiencies and result in cost savings for contentious customers.

The programme will begin next year, with interested parties being able to opt-in. Customers who reduce their consumption by 0.1MW (per half hour) are eligible to participate. Customers will also be able to decrease their power demand at different price point through demand side bidding and share in incentive payments paid to demand response providers.

The DR programme also affords customers another way in which to become involved in the National Electricity Market of Singapore (NEMS).It promotes system reliability and reduces wholesale electricity prices with decreases in peak demand, limiting investment in costly generation units used when demand is at its highest.