SINGAPORE Law and Practice Contributed by: Adam Moncrieff, Karthik Kumar, Lynette Lim and Kelly Choo, Orrick, Herrington & Sutcliffe LLP
Generation licensees must comply with their licence conditions, the Singapore Electricity Market Rules and applicable EMA codes and standards, including obli- gations 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 elec- trical or supply installations associated with genera- tion 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 gen- eration 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 impuri- ties 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 Sin- gapore, which imposes energy management, report- ing 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 rel- evant, 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 stand- ards code for new and repowered fossil fuel-fired gen- eration units, covering emissions monitoring, report- ing, validation and hydrogen-readiness obligations. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities From an electricity sector regulatory perspective, the authority and approval to construct and operate a commercial generation facility in Singapore is pri- marily 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 gener- ally require a wholesaler licence. There is no single consolidated public hearing pro- cess under the Electricity Act for the construction and operation of generation facilities. However, project proponents must separately obtain generally appli- cable construction, land-use, building control, work- place safety, fire safety and environmental approvals where relevant. 3.3 Approvals to Construct and Operate Generation Facilities From an electricity sector regulatory perspective, the authority and approval to construct and operate a gen- eration facility in Singapore is given by the EMA pur- suant 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 gener- ally require a wholesaler licence. Generation licensees must comply with their licence conditions, the Elec- tricity Act, the Singapore Electricity Market Rules and applicable codes of practice and standards. There are other permits and licences that apply gener- ally to undertake construction works that would also apply to any works for the construction of genera- tion facilities. Depending on the nature of the facility, additional conditions may arise under the environmen- tal, carbon pricing, energy conservation, workplace
310 CHAMBERS.COM
Powered by FlippingBook