Power Generation, Transmission & Distribution 2026 Comparisons

Last Updated July 21, 2026

Law and Practice

Authors



Orrick, Herrington & Sutcliffe LLP is a global law firm dedicated to serving the technology and innovation, energy and infrastructure, finance, and life sciences and healthtech sectors. Its Singapore office serves as a gateway to its work across South and Southeast Asia. Its local partners bring over 100 combined years of experience in the region, delivering full-service solutions for its most transformative energy and infrastructure (E&I) projects. Orrick has one of the largest E&I teams amongst international firms in Singapore with six E&I-focused partners. Its Singapore-based team of partners includes Chambers Band 1 projects & energy advisers and an international arbitration partner, with lawyers qualified in Singapore, Indonesia, India, Australia, England and Wales and the United States.

Singapore’s power industry is substantially unbundled: power generation and retail electricity markets operate through competitive market arrangements, while transmission and distribution are treated as a regulated natural monopoly. The market-support function is also centralised, with SP Services acting as the sole market support services licensee. Singapore also has a competitive wholesale electricity market with spot bidding. Consumers in Singapore (including households and small businesses) have a range of electricity retail options that enables them to benefit from competitive electricity prices.

The primary legislation governing the electricity sector in Singapore, including regulating generation, transmission, distribution, retail, import and export, and use of electricity, is the Electricity Act 2001 of Singapore (the “Electricity Act”). Other licensable activities include the provision of market support services, and the operation of and trading in the wholesale electricity market. Under the Electricity Act, a transmission licensee, transmission agent licensee, market support licensee and wholesale electricity market operator licensee cannot be granted any electricity licence to carry out any other activity other than that set forth in their respective licences.

The regulator of the electricity sector in Singapore is the Energy Market Authority of Singapore (EMA), including licensing and regulatory functions for generation, transmission, import, export, trading, retail, market support services and wholesale market operation.

See 1.2 Principal State-Owned or Investor-Owned Entities for more details on the other key stakeholders in Singapore’s electricity sector.

Singapore’s principal power industry stakeholders are split between competitive commercial generators and retailers and a regulated grid monopoly within the SP Group. The key players and stakeholders in Singapore’s electricity market include the following.

  • Regulator – the EMA (see 1.1 Law Governing the Structure and Ownership of the Power Industry).
  • Power generation – there are currently 21 entities that hold an electricity generation electricity licence in Singapore and are therefore licensed to engage in the generation of electricity in Singapore. The most up-to-date version of this list of entities from time to time can be found on the licensees directory on the EMA’s website. As of the date of writing, all of these 21 entities are private limited companies (whether wholly or partially owned by private sector entities or otherwise), other than the National Environment Agency (which is a statutory board).
  • Transmission – there is currently only one transmission licensee in Singapore, being SP PowerAssets Ltd (SPPA), which owns the Singapore power grid, delivers electricity island-wide, and comprises a high voltage network (transmission network) and a low voltage network (distribution network). SP PowerGrid Ltd (SPPG) is the agent appointed by SPPA to build and maintain the power grid, and is licensed as an electricity transmission agent. Both SPPA and SPPG are members of SP Group. Singapore Energy Interconnections (SGEI), a government-linked company tasked with development and operating cross-border electricity interconnections, was established in April 2025. SGEI’s mandate covers the planning, construction, ownership and operation of regional power links. All developers proposing to export electricity to Singapore must engage SGEI to confirm that their technical designs and project specifications are compatible with Singapore’s landing-site and grid infrastructure. SGEI is supported by SP PowerInterconnect, a subsidiary of the SP Group, which provides technical expertise in transmission and distribution asset design, engineering and operation.
  • Operator of wholesale electricity market – the Energy Market Company (EMC). See 2.1 The Wholesale Electricity Market for further details.
  • Retail of electricity – there are currently 18 entities that hold an electricity retailer electricity licence in Singapore and are therefore licensed to engage in the retail of electricity in Singapore. These retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers. The most up-to-date version of this list of entities from time to time can be found on the licensees directory on the EMA’s website. As of the date of writing, all of these entities are private limited companies (whether wholly or partially owned by private sector entities or otherwise).
  • Market support services – there is currently only one entity licensed to provide services such as the reading of electricity meters, management of meter data and facilitation of access to the wholesale electricity market, which is SP Services Ltd, a member of the SP Group.

There are no specific statutory restrictions on foreign ownership of electricity companies or assets. Instead, Singapore applies an ownership and control regime under Part 4A of the Electricity Act, which applies to “any person” acquiring interests in, or control over, designated electricity licensees, designated entities and designated business trusts. There are restrictions under the Electricity Act on shareholding that apply to ownership of designated electricity licensees, designated entities and designated business trusts (designated persons). Separately, the Significant Investments Review Act 2024 of Singapore (SIRA) operate as a broader national security investment screening overlay for critical entities, and is intended to complement existing sectoral safeguards. The conditions of electricity licences may also impose conditions around the acquisition of shares by the licensee in certain other electricity and/or gas licensees.

A designated electricity licensee, a designated entity and the trust-manager of a designated business trust must notify the EMA if any entity acquires an equity interest in such designated person that would result in it holding between 5% or more but less than 12% of the total equity interest in such designated person. This does not apply to a pro forma change, being a transaction between a person and its associate that results in the transfer to either of them of any equity interest in a designated person without any change to the equity percentage interest held by the person in such designated person immediately before the transaction.

Further, the EMA’s prior approval is required in the following circumstances.

  • A person seeks to become a 12% controller, 25% controller, 30% controller, 50% controller, 75% controller, or an indirect controller of a designated person.
  • A person seeks to cease to be a 50% controller or 75% controller of a designated person.
  • A person seeks to acquire, as a going concern, the business (or part thereof) of:
    1. a designated electricity licensee, conducted pursuant to its licence;
    2. a designated entity, relating to its transmission system or the relevant licensable activity by reason of which it is a designated entity; or
    3. a designated business trust relating to a transmission system or any part thereof in respect of which the business trust is established.

A 12% controller, 25% controller, 30% controller, 50% controller, and 75% controller generally refers to a person who by itself or with its associates holds 12%, 25%, 30%, 50% or 75%, respectively, or more of the total equity interest in or voting power, or is in a position to control 12%, 25%, 30%, 50% or 75%, respectively, or more of the voting power in a designated person.

“Indirect controller” generally refers to a person, by itself or with its associates, who is in a position to determine the designated person’s policy or in accordance with whose directions, instructions or wishes the designated person’s directors or officers or trustee-manager (as applicable) are accustomed or obliged to act. There are certain exceptions, including the CEO, director, chairperson of the board whose appointment has been approved by the EMA, and a person who provides advice in a professional capacity.

A “designated electricity licensee” means a transmission licensee, transmission agent licensee, and any other electricity licensee so declared as such by the Minister. As already mentioned, there is only one transmission licensee and one transmission agent licensee in Singapore, being SPPA and SPPG, respectively. A further 11 electricity licensees have been declared as a “designated electricity licensee” under the Electricity (Designated Electricity Licensees, etc, under Part 4A) Notification 2025.

  • EMC (see 2.1 The Wholesale Electricity Market for more details on EMC’s role and function).
  • Keppel Merlimau Cogen Pte Ltd.
  • Meranti Power Pte Ltd.
  • PacificLight Power Pte Ltd.
  • SembCorp Cogen Pte Ltd
  • Senoko Energy Pte Ltd.
  • Taser Power Pte Ltd.
  • Tuas Power Generation Pte Ltd.
  • YTL PowerSeraya Pte Limited.
  • Keppel Sakra Cogen Pte Ltd.
  • PLM Power Pte Ltd.

A “designated entity” means an entity that is not an electricity licensee that owns a transmission system or any part thereof or which the EMA is satisfied will engage in or is engaging in any licensable activity under the Electricity Act that is critical to Singapore’s energy security and reliability, and in each case, which is declared as such by the Minister.

A “designated business trust” means a business trust established wholly or partly in respect of a transmission system or part thereof and that has been declared as such by the Minister.

See 1.3 Foreign Investment Review Process.

The EMA is the regulator of the electricity sector in Singapore and administers the Electricity Act, the key legislation governing the electricity sector. As regulator, the EMA, amongst other things, ensures fair competition and protects consumers’ interests.

The EMA is also an industry developer (charged with advancing Singapore’s energy industry), and planner and operator of Singapore’s energy system. Its mission is to build a sustainable, resilient, dynamic and efficient energy market and system.

There have been several material legal and regulatory developments affecting Singapore’s power and energy transition framework over the past year.

Energy Transition Measures and Other Amendments Act 2024 of Singapore (ETM Act)

A significant change for the power industry is the staged commencement of the ETM Act. The ETM Act was passed on 9 September 2024 and amends the Energy Market Authority of Singapore Act 2001 of Singapore, the Electricity Act and the Gas Act 2001 of Singapore. From 1 July 2025, several provisions came into force to facilitate shared access to critical energy infrastructure and strengthen energy system planning. These include powers for the EMA to direct owners or occupiers of critical energy infrastructure to allow electricity or gas licensees access to infrastructure where required for their functions.

The ETM Act also introduced approval obligations for repurposing key electricity and gas assets. The EMA is expected to balance commercial interests against energy security and system reliability when assessing repurposing requests.

Centralised Gas Procurement and Singapore GasCo

A further development is the establishment and implementation of Singapore GasCo, established to centralise the procurement and supply of natural gas to the power sector. The legislative framework supports this change by requiring prescribed generation entities that require gas to obtain gas only from the holder of a gas importer’s licence for central import, unless the EMA otherwise allows.

Minimum Energy Efficiency Standards for Industrial Facilities

Another material development is the commencement of the Energy Conservation (Amendment) Act 2024 on 1 December 2025, replacing Section 26B of the Energy Conservation Act 2012 of Singapore to create a broader framework for minimum energy efficiency standards (MEES) for prescribed energy-consuming systems. Under the new Section 26B, a registered relevant person must assess and monitor prescribed energy-consuming systems and submit reports to the Director-General.

Where a prescribed energy-consuming system does not meet the prescribed MEES, the Director-General may direct the registered relevant person to carry out maintenance or take other measures to ensure compliance, reassess the system and submit an assessment report.

Proposed Emissions Standards Code for Generation Units

The EMA’s consultation on the proposed Emissions Standards Code is also a material regulatory development, although it appears to remain a consultation rather than a finalised code in the official sources reviewed. The consultation sought comments on a proposed code to guide implementation of emissions standards for new and repowered fossil fuel-fired generation units.

The standards themselves originate from the EMA’s 2023 policy decision. The EMA announced in October 2023 that it would put in place emissions standards for new and repowered fossil fuel-fired generation units and would consult on a code of practice to enforce those standards. The EMA stated that Tier 1 units expected to run regularly would need to comply with a 0.355 tCO₂e/MWh emissions intensity limit. The proposed code would set minimum conditions for generation licensees, including obligations relating to emissions monitoring, reporting, validation and hydrogen readiness.

New Carbon Market Initiatives

Singapore also launched new carbon-market initiatives on 28 October 2025, which are relevant to the wider energy-transition landscape. The initiatives include voluntary carbon market guidance on the role of carbon credits in corporate decarbonisation, discussions with leading corporates to establish an industry-led buyers’ coalition, and a new Financial Sector Carbon Market Development Grant.

The Guidance on Role of Carbon Credits in Corporate Decarbonisation (the “VCM Guidance”) was jointly developed by the National Climate Change Secretariat, the Ministry of Trade and Industry and Enterprise Singapore, in partnership with the Singapore Sustainable Finance Association, industry partners, academics and international organisations. The VCM guidance is intended to help companies use and disclose carbon credits as part of a credible decarbonisation plan. It also states that Singapore supports companies’ participation in well-functioning carbon markets and voluntary use of high-quality carbon credits as part of a credible decarbonisation plan.

The Monetary Authority of Singapore will set aside SGD15 million over three years until 2028 from the Financial Sector Development Fund to support financial institutions in building carbon-market capabilities and in developing innovative financing solutions and platforms for carbon-project financing, trading, insurance and related services.

There have been several recent policy and initiative announcements that may materially affect Singapore’s power industry over the medium to long term. Policy attention is increasingly focused on diversifying Singapore’s energy mix through cross-border electricity imports, centralised gas procurement, energy storage and other low-carbon alternatives.

A key policy direction is the scaling up of low-carbon electricity imports. Singapore aims to import around 6 GW of low-carbon electricity by 2035, equivalent to approximately one-third of its energy needs. The EMA has issued Conditional Approvals to 11 low-carbon electricity import projects from Australia, Cambodia, Indonesia, Sarawak (Malaysia) and Vietnam, with six projects having progressed to conditional licences. These developments indicate that cross-border interconnectors, regional power trading and related grid infrastructure will become increasingly important to Singapore’s power sector.

Singapore has also announced and implemented initiatives to strengthen fuel security and support decarbonisation. Singapore GasCo has been established to centralise procurement and supply of natural gas to the power sector, with prescribed generation entities generally required to procure gas from the holder of a central import gas licence unless the EMA permits otherwise. In parallel, Singapore is pursuing further decarbonisation-related initiatives, including minimum energy efficiency standards for prescribed energy-consuming systems, a proposed Emissions Standards Code for new and repowered fossil fuel-fired generation units, and carbon-market initiatives covering voluntary carbon credit guidance, a potential buyers’ coalition and financial-sector support for carbon-market capabilities.

Singapore’s electricity sector is one of two fully liberalised and open markets in the Association of Southeast Asian Nations (ASEAN) region. Its foreign investment and business-friendly commercial environment, politically stable landscape, business-friendly and clear laws and transparent, absence of corruption and effective justice system make it an attractive jurisdiction for power sector participants.

A distinctive feature of Singapore’s power market is the combination of competitive wholesale and retail markets with a single national grid. Generation companies bid to sell electricity into the wholesale market every half-hour, while electricity retailers buy electricity in bulk from that market and compete to sell to consumers. At the retail level, the open electricity market allows consumers to buy electricity from SP Group at the regulated tariff, from a retailer under a price plan, or from the wholesale electricity market through SP Group, while physical supply remains unchanged because SP Group continues to operate the national grid.

Another noteworthy feature is that Singapore is pursuing an energy transition from a position of structural resource constraint. Singapore continues to rely on natural gas for around 95% of power generation, while solar is its most viable domestic renewable source but is expected to meet only up to 10% of projected electricity demand in 2050, mainly due to land constraints. As a result, Singapore’s transition strategy is unusually outward-facing: it aims to import around 6 GW of low-carbon electricity by 2035, equivalent to around one-third of its energy needs. This makes cross-border electricity imports, regional interconnectors, centralised gas procurement through GasCo, and emerging technologies such as energy storage and low-carbon alternatives particularly important to Singapore’s power industry.

The EMC operates and administers the wholesale electricity market.

Power generation companies bid to sell electricity in the wholesale electricity market every half-hour. Depending on electricity demand and supply, the price of electricity in the wholesale electricity market changes every half-hour. Electricity retailers buy electricity in bulk from the wholesale electricity market and compete to sell electricity to consumers. Real-time and historical half-hourly trading data, including the Uniform Singapore Energy Price (USEP), nodal energy prices, reserve prices, regulation prices, wholesale electricity prices and price cap parameters, are published on EMC’s NEMS prices platform.

The EMA has introduced a Temporary Price Cap (TPC) mechanism as a “circuit breaker” activated during high and sustained periods of extreme price volatility in the wholesale electricity market. The TPC was introduced from 1 July 2023 and is expected to apply only for short durations when triggered. The EMA states that the TPC does not affect the fundamentals of the wholesale electricity market or the operations of generation companies. The TPC activates when the moving average price exceeds the moving average price threshold and deactivates when the moving average price falls to or below the threshold after being active for at least 48 periods. Bi-weekly TPC parameters can be found on the EMA’s website.

High-load consumers, including data centres, are generally addressed through Singapore’s contestability and demand-side participation frameworks rather than through a special wholesale price category. Contestable consumers may buy electricity from a licensed retailer, directly from the wholesale market, or indirectly through SP Services, and a direct market consumer must register with the EMC, purchase only for its own consumption, and enter into the necessary arrangements with the Power System Operator, the Market Support Services Licensee and SP PowerAssets.

Large business consumers can also participate in demand-side programmes. Under the EMA’s Demand Response programme, eligible business consumers may voluntarily reduce consumption when wholesale prices are high and receive a share of the resulting savings, while the Interruptible Load programme compensates eligible consumers for being on standby to reduce demand when needed for system reliability.

There has been no export of electricity from Singapore to any other jurisdiction to date. The export of electricity is a licensable activity under the Electricity Act and no electricity exporter electricity licence has been issued by the EMA.

The import of electricity into Singapore from other jurisdictions is a licensable activity under the Electricity Act as well, and three entities have been granted such a licence – Keppel Electric Pte Ltd (expiring in January 2028), Sembcorp Cogen Pte Ltd (expiring in September 2026) and Sembcorp Power Pte Ltd (expiring in December 2026). These licences are in relation to the following import trials/pilot schemes.

  • Lao PDR-Thailand-Malaysia-Singapore Power Integration Project – launched in June 2022, the first phase allowed for up to 100 MW of renewable hydropower being imported from Lao PDR to Singapore through Thailand and Malaysia via existing interconnectors, and the second phase, which is what Keppel Electric Pte Ltd’s current electricity importer electricity licence covers, allows for up to 200 MW of electricity imported from Lao PDR and Malaysia.
  • 100 MW Malaysia ENEGEM Pilot – launched on 15 April 2024 by Malaysia’s Ministry of Energy Transition and Water Transformation, for the purchase of green electricity from Malaysia’s electricity supply system to be supplied to Singapore via the Energy Exchange Malaysia (ENEGEM) Platform.

The foregoing are precursors to Singapore’s journey to reach its goal of 6 GW of low-carbon electricity imports by 2035. Singapore started this process in July 2022, when the EMA invited interested companies to submit proposals for importing up to 4 GW of electricity into Singapore. That initial target of 4 GW has been subsequently increased to 6 GW, in view of the “continued strong interest from credible parties to participate” in such projects. To date, the EMA has issued Conditional Approvals to 11 projects to import low-carbon electricity from Australia, Cambodia, Indonesia, Sarawak (Malaysia) and Vietnam. Six projects have made substantive progress and were awarded conditional licences. However, no electricity importer electricity licence has been awarded for any of these projects as yet.

Singapore has historically been heavily reliant on natural gas imported from Malaysia and Indonesia via pipelines, and remains so (albeit with a slight decrease over the past five years or so). In the first half of 2025, based on EMA’s published information on its website, natural gas accounted for 93.1% of Singapore’s fuel mix, of which other energy products (such as municipal waste, biomass and imports) accounted for 3.0%, and solar PV accounted for 2.5%. As a comparison, in 2019, natural gas accounted for 95.6% of Singapore’s fuel mix.

See 2.5 Surveillance to Detect Anti-Competitive Behaviour.

Competition in the wholesale electricity market or the retail electricity market in Singapore is regulated by the EMA under the Electricity Act.

The principal electricity sector competition law is Part 7 of the Electricity Act, which prohibits anti-competitive agreements and abuse of dominance in any wholesale electricity market or the retail electricity market in Singapore. The Singapore Electricity Market Rules are also important because they govern wholesale operations of the National Electricity Market of Singapore and establish the Market Surveillance and Compliance Panel market-monitoring and compliance framework. In addition, the sector-agnostic Competition Act 2004 of Singapore is administered by the Competition and Consumer Commission of Singapore and prohibits anti-competitive agreements, abuse of dominance and mergers that substantially lessen competition.

The Electricity Act prohibits agreements, decisions and concerted practices that have as their object or effect the prevention, restriction or distortion of competition in any wholesale electricity market or the retail electricity market in Singapore. Examples include price-fixing, limiting or controlling electricity generation, limiting market development or investment, sharing markets or sources of supply, applying dissimilar conditions to equivalent transactions, tying unrelated obligations to contracts, and providing for acquisition of shares or assets of an electricity licensee.

The Electricity Act also prohibits conduct amounting to abuse of a dominant position in any wholesale electricity market or the retail electricity market in Singapore if it may affect trade within Singapore. Examples include imposing unfair purchase or selling prices, limiting electricity generation or market development to the prejudice of consumers, applying dissimilar conditions to equivalent transactions, and imposing unrelated supplementary contractual obligations.

The EMA may investigate where it has reasonable grounds to suspect an infringement of the foregoing prohibitions. During an investigation, the EMA may issue written notices requiring a person to produce specified documents or information relevant to the investigation. The EMA may also apply to the District Court for a warrant to enter premises where there are reasonable grounds to suspect that relevant documents are on the premises and would not otherwise be produced or might be concealed, removed, tampered with or destroyed.

After investigation, the EMA may decide whether an agreement infringes the Electricity Act and issue directions to address the infringement. The EMA may require the entity to modify or terminate an infringing agreement and, where the agreement concerns acquisition of shares or assets of an electricity licensee, require disposal of the relevant shares or assets within a specified period. For abuse of dominance, the EMA may require the entity to modify or cease the conduct.

The EMA also has the power to impose a financial penalty for infringement, capped at the higher of SGD1 million or 10% of the annual turnover of the entity’s business in Singapore, ascertained from the latest audited accounts.

The main legislation governing the electricity sector in Singapore, including the construction and operation of generation facilities in Singapore, is the Electricity Act. An entity operating a utility-scale generation facility will generally require a generation licence, while smaller grid-connected generating units may require a wholesaler licence, depending on nameplate capacity. Generation licensees must comply with their licence conditions, the Singapore Electricity Market Rules and applicable EMA codes and standards, including obligations to maintain a reliable, efficient, coordinated and economical system of electricity generation.

The Electricity (Electrical Installations) Regulations are also relevant to the use and operation of electrical or supply installations associated with generation facilities, including requirements for electrical or supply installation licences, licensed electrical worker involvement, inspection, testing and certification of fitness. Separately, general construction, land use, building control, workplace safety and fire safety approvals may apply to the physical construction of a generation facility.

New generation capacity is increasingly shaped by the EMA’s Centralised Process, which coordinates private-sector investment in generation capacity to ensure sufficient capacity and system reliability. Under this framework, the EMA conducts annual reserve-margin projections, and if projected reserve margins fall below the required reserve margin of 27%, the EMA may launch a request for proposal (RFP) for the private sector to build, own and operate new generation capacity. The EMA has used this process to invite proposals for new hydrogen-ready combined cycle gas turbine units, including the April 2026 RFP for units of at least 600 MW, each to be operational in 2031 and 2032.

Other key laws affecting generation facilities include the Environmental Protection and Management Act 1999 of Singapore, which regulates pollution control and air emissions, including standards for air impurities from fuel-burning equipment and industrial plant; the Carbon Pricing Act 2018 of Singapore, which applies carbon tax to industrial facilities with annual direct greenhouse gas emissions of at least 25,000 tCO₂e; and the Energy Conservation Act 2012 of Singapore, which imposes energy management, reporting and Energy Performance Monitoring obligations on energy-intensive electricity-sector facilities. For gas-fired plants, the Gas Act 2001 of Singapore and centralised gas procurement framework are also relevant, as prescribed generation entities requiring gas must generally procure it from the holder of a central import gas licence unless the EMA permits otherwise. The EMA has also consulted on an emissions standards code for new and repowered fossil fuel-fired generation units, covering emissions monitoring, reporting, validation and hydrogen-readiness obligations.

From an electricity sector regulatory perspective, the authority and approval to construct and operate a commercial generation facility in Singapore is primarily given through the relevant electricity licence issued by the EMA under the Electricity Act. An entity operating a generating unit with a nameplate capacity of 10 MW or more will generally require a generation licence, while a smaller grid-connected generating unit of 1 MW or more but less than 10 MW will generally require a wholesaler licence.

There is no single consolidated public hearing process under the Electricity Act for the construction and operation of generation facilities. However, project proponents must separately obtain generally applicable construction, land-use, building control, workplace safety, fire safety and environmental approvals where relevant.

From an electricity sector regulatory perspective, the authority and approval to construct and operate a generation facility in Singapore is given by the EMA pursuant to the relevant electricity licence issued under the Electricity Act. A generating unit with a nameplate capacity of 10 MW or more will generally require a generation licence, while a grid-connected generating unit of 1 MW or more but less than 10 MW will generally require a wholesaler licence. Generation licensees must comply with their licence conditions, the Electricity Act, the Singapore Electricity Market Rules and applicable codes of practice and standards.

There are other permits and licences that apply generally to undertake construction works that would also apply to any works for the construction of generation facilities. Depending on the nature of the facility, additional conditions may arise under the environmental, carbon pricing, energy conservation, workplace safety, fire safety and building control regimes. For example, environmental approvals may impose conditions requiring the installation or operation of fuel-burning equipment, control equipment or treatment plant, changes to operating methods, use of specified fuel, testing and record-keeping.

The typical terms and conditions imposed on a Generation Licence relate to matters such as compliance with applicable laws and market rules, technical and operational performance, safe and reliable operation of the generating units, dispatch and market participation, reporting, outage coordination, and compliance with directions and codes issued or approved by the EMA. The Electricity (Electrical Installations) Regulations may also apply to associated electrical or supply installations, and provide for licensing, inspection, testing and certification requirements.

Modifications of an electricity licence are governed by the Electricity Act. In essence, the EMA may modify licence conditions if it is satisfied that the modification is requisite or expedient having regard to its statutory functions and duties. Before doing so, EMA must give notice to the relevant licensee and other licensees likely to be affected by the modification, state the proposed modification and reasons, and allow at least 28 days for written representations, which the EMA must consider before proceeding.

A private proponent for the siting, construction and operation of a generation facility does not generally have standalone eminent domain, condemnation or expropriation rights to acquire land for the project. Rights to the surface of land for a generation facility are typically obtained through ordinary land arrangements, such as ownership, lease, licence, easement or other contractual arrangements with the relevant landowner. Where the project is located on state land, industrial land or land controlled by a statutory board or government-related land agency, the relevant land grant, lease or licence would need to be obtained from the appropriate authority or landowner.

The Electricity Act does, however, confer limited statutory works powers on a generation licensee for purposes connected with the activities authorised by its electricity licence. A generation licensee may install, inspect, maintain, repair, alter, replace or remove electric lines, electrical plant and related structures or apparatus under, over, in, on, along or across land, premises, streets or bridges, and may execute works incidental to those purposes. These powers are not equivalent to ownership or compulsory acquisition rights: the licensee acquires no right other than a right of user in respect of the relevant land or property.

The licensee must compensate any person who suffers damage or loss of value to property as a result of works carried out under these statutory powers. The amount is to be agreed between the licensee and the affected person, and may include an annual payment for the use of land or immovable property for the licensee’s purposes. If compulsory acquisition of land is required, this is a state process under the Land Acquisition Act rather than a private right of the generation project proponent; the SLA states that private land may be acquired for public purposes and that affected landowners are paid market value compensation under the Land Acquisition Act.

It is a condition of a generation electricity licence issued by the EMA that the licensee must, unless a specific exception is made by EMA, obtain the EMA’s prior approval before retiring any of its generating units. Any decommissioning must comply with applicable codes and rules, including the Transmission Code and Market Rules.

The main legislation governing the electricity sector in Singapore, including the ownership, construction and operation of transmission networks in Singapore, is the Electricity Act. The applicable electricity licence for the ownership, construction and operation of transmission networks in Singapore is the transmission licensee electricity licence, and the conditions of such licence would also apply to such ownership, construction and operation.

There are other permits and licences that apply generally to undertake construction works that would also apply to any works for the construction of transmission networks. Environmental reviews may be required as part of applying for, obtaining and complying with such construction permits and licences.

From an electricity sector regulatory perspective, the authority and approval to construct and operate a transmission network in Singapore is given by the EMA pursuant to a transmission licensee electricity licence issued by the EMA under the Electricity Act. There are other permits and licences that apply generally to undertake construction works that would also apply to any works for the construction of transmission networks.

As mentioned above, there is only one transmission licensee electricity licence issued in Singapore, to SPPA. There is no specific application process. In determining whether to grant or extend an electricity licence, the EMA is required under the Electricity Act to consider various factors, including, amongst others, that person’s ability to finance the relevant activity, its experience and ability to perform, and whether that person is related to any electricity licensee.

From an electricity sector regulatory perspective, the authority and approval to construct and operate a transmission network in Singapore is given by the EMA pursuant to a transmission licensee electricity licence issued by the EMA under the Electricity Act. There are other permits and licences that apply generally to undertake construction works that would also apply to any works for the construction of transmission networks.

There is only one transmission licensee electricity licence issued in Singapore, to SPPA. The terms and conditions of such licence are publicly available on the EMA’s website, and include conditions covering issues such as training of cable detection workers, electricity cable damage prevention, compliance obligations and requirements relating to provision of transmission services, preparation for emergencies and security arrangements.

Modifications of a transmission licensee electricity licence is governed by the Electricity Act. In essence, the EMA may modify licence conditions by giving notice to the relevant licensee and other licensees likely to be affected by the modification, and must consider any written representations made in response to such notice.

SPPA’s transmission licensee electricity licence issued by the EMA authorises SPPA to, amongst other things, undertake the planning, development and construction of the transmission system or any refurbishment or augmentation thereof as required to enable the provision of transmission services.

The Electricity Act also empowers transmission licensees to carry out certain installation and other works for any purpose connected with the carrying on of the activities authorised by its licence. In exercising such rights, the licensee only has rights of a user in respect of the relevant land or property and does not acquire any other rights under the Electricity Act. The licensee is required to give advance notice to the owner or occupier of the land before entering to carry out such works, and such owner or occupier can lodge an objection to the EMA within a prescribed period. The EMA is then required to hold an inquiry and give each party an opportunity to be heard. The EMA can then authorise the carrying out of the work subject to conditions as it sees fit. The EMA’s decision is expressed to be final.

In terms of compensation, the Electricity Act expressly states that the licensee is not liable for or required to pay any person any fee, charge or expense for the right to enter or use any land or premises to carry out the work it is empowered to carry out as mentioned above. However, the licensee is required to pay compensation to any person who suffers damage or loss of value to such person’s property as a result of the licensee’s work. The amount of such compensation is to be agreed between the licensee and such person, and may include an annual payment for the use of land or immovable property for the licensee’s purposes.

Separate approval(s) are required if the licensee wishes to enter or use land or premises belonging to another government or statutory authority, or another electricity licensee.

An electricity licence issued by the EMA under the Electricity Act is required for the transmission of electricity in Singapore; no person (other than the EMA itself) may engage in the transmission of electricity in Singapore unless authorised pursuant to such a licence. No transmission licensee may be granted an electricity licence to carry out any activity other than the transmission of electricity.

In determining whether to grant or extend an electricity licence, the EMA is required under the Electricity Act to consider various factors, including, amongst others, that person’s ability to finance the relevant activity, its experience and ability to perform, and whether that person is related to any electricity licensee.

There is currently only one transmission licensee in Singapore, being SPPA. See 1.2 Principal State-Owned or Investor-Owned Entities.

Charges for the provision of transmission services are regulated by the EMA under the terms of SPPA’s transmission licensee electricity licence issued by the EMA.

Under such licence, SPPA is required to develop a cost recovery methodology setting out the basis on which such charges will be made. The methodology and any proposed revisions thereto are required to be submitted to the EMA for approval prior to such charges being levied. SPPA’s licence also sets out certain objectives and considerations which such methodology and any revisions must be developed in accordance with.

SPPA is also required to publish statements that must provide the basis on which such charges are levied.

It is a condition of SPPA’s transmission licensee electricity licence issued by the EMA that it shall provide non-discriminatory access to persons similarly situated for services comprised within SPPA’s authorised business.

Also, as a condition of its transmission licensee electricity licence, SPPA is required to develop its cost methodology and any revisions thereto such that the fees and charges for the provision of transmission services do not discriminate between any persons or classes of persons similarly situated.

The principal laws that govern the construction and operation of electric distribution facilities are the same as that for transmission networks, see 4.1 Constructing and Operating Transmission Lines and Associated Facilities. There is no explicit standalone regime for storage and microgrids specifically.

The regulatory process for obtaining approvals necessary to construct and operate electric distribution facilities is the same as that for transmission networks. See 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities.

The typical terms and conditions imposed in approvals to construct and operate electric distribution facilities are the same as that for transmission networks. See 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities.

The position with respect to eminent domain, condemnation or expropriation rights in order to obtain surface access and use for distribution facilities is the same as that for transmission networks. See 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities.

SPPA (together with SPPG as its agent) is the sole entity that deals with electricity distribution, as well as transmission. See 4.5 Monopoly Rights to Provide Transmission Services.

The establishment and regulation of distribution charges are governed by the same principles as that for transmission charges. See 4.6 Transmission Charges and Terms of Service.

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Law and Practice in Singapore

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Orrick, Herrington & Sutcliffe LLP is a global law firm dedicated to serving the technology and innovation, energy and infrastructure, finance, and life sciences and healthtech sectors. Its Singapore office serves as a gateway to its work across South and Southeast Asia. Its local partners bring over 100 combined years of experience in the region, delivering full-service solutions for its most transformative energy and infrastructure (E&I) projects. Orrick has one of the largest E&I teams amongst international firms in Singapore with six E&I-focused partners. Its Singapore-based team of partners includes Chambers Band 1 projects & energy advisers and an international arbitration partner, with lawyers qualified in Singapore, Indonesia, India, Australia, England and Wales and the United States.