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|Title:||A GREEN ENERGY POLICY AND NEW ELECTRICITY MARKET OF SINGAPORE (NEMS)||Authors:||AMANDA ONG HWEE FANG||Issue Date:||2004||Citation:||AMANDA ONG HWEE FANG (2004). A GREEN ENERGY POLICY AND NEW ELECTRICITY MARKET OF SINGAPORE (NEMS). ScholarBank@NUS Repository.||Abstract:||Fossil fuels have been the dominant fuels used to meet the growing demands in transport, electricity generation and manufacturing. Global warming is one of the most threatening environmental effects of using fossil fuels. Being clean and inexhaustible, the renewable energy sources provide a long-term sustainable solution to the rising world energy demand, the deteriorating global climate and the unsustainable energy consumption patterns. However, the high costs of Renewable Energy Sourced-Electricity (RES-E) technologies is a major obstacle to the development of renewable energy in the electricity market, and the costly RESE technologies are unable to compete with the conventional power plants using fossil fuels. This problem may be further accentuated by the liberalisation and privatisation of electricity markets in many countries. The least-cost design of liberalised electricity markets tends to favour conventional power plants using fossil fuels, rather than power plants using the costly RES-E technologies. To promote RES-E in liberalised electricity markets, support schemes have been implemented in various countries since the 1990s. Three main types of RES-E support schemes are the Feed-in Model (FIM), the Tender System and the Tradable Green Certificate (TGC) System. The objectives of this study are to learn from the practical experience of various countries in implementing RES-E support schemes, to investigate the adequacy of the NEMS in internalising the environmental costs of electricity generation, and to propose a green energy policy to achieve the least-cost technological development and market penetration of renewable energy sources in the New Electricity Market of Singapore (NEMS). The findings of the study show that the RES-E support schemes in various countries differ in implementation details such as the certificate size and the level of penalty of a TGC System. Adjustments to the different domestic TGC Systems are needed to achieve a harmonised framework for an international TGC System. Other findings reveal that NEMS is inadequate in internalising the environmental costs of electricity generation and the least-cost design of the liberalised electricity market may impede the promotion of RES-E. However, with the implementation of appropriate policy instruments such as the RES-E support schemes, the liberalisation of the electricity market can produce a positive effect of motivating RES-E power producers to be constantly in search of the most cost-effective RES-E technologies, and therefore stimulating technological advancements in RES-E. Electricity market liberalisation also provides an opportunity for RES-E power producers to compete for a share of the electricity market, which was previously controlled by government-owned utilities. By synthesising the findings of the study, a green energy policy is proposed to promote the least-cost technological development of renewables through the use of RES-E support schemes and eventually, to develop a national TGC System as part of the international TGC System. Besides environmental benefits, renewables can provide energy security to a resource-scarce Singapore. The RES-E support schemes would also attract investors to invest in Singapore, which boosts the economic development of Singapore and provides employment opportunities. Recommendations for future areas of research and implementation include the application of the RES-E schemes in other areas such as waste management and transport.||URI:||http://scholarbank.nus.edu.sg/handle/10635/150039|
|Appears in Collections:||Master's Theses (Restricted)|
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