EXPLORING THE REGULATORY AND FINANCING LANDSCAPE OF VIRTUAL POWER PLANTS (VPP) IN SINGAPORE

Abstract

Renewable power expansion, spearheaded by Solar Photovoltaic (PV), is experiencing a robust surge propelled by the global energy crisis and policy initiatives. Given the multifaceted importance of clean energy in our societies today, Southeast-Asian legislations have accelerated renewable energy deployment and Singapore is well on track to meeting the 1,500 megawatt-peak goal of solar deployment by 2025. According to the latest International Energy Agency (IEA) report, global renewable capacity additions are set to soar by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023. However, the integration of distributed resources remains a challenge in the context of a progressively deregulating electricity market like ours. Virtual Power Plants (VPPs) are still undergoing extensive research and development, thus remains a relatively unexplored concept in Singapore. Although regulatory bodies are ramping up efforts to ease the transition to decentralised generation, investors are deterred by the bottlenecks caused by market conditions and price instability, impeding the outlook on VPPs. To tackle the above-mentioned limitations faced, this thesis proposes an overview of the regulatory enhancements of Singapores' electricity market utilising a more holistic approach for industry, research and consumer entities -- through the realistic exploration of the regulatory and financing structure behind VPPs, given the state-of-the-art technologies. In summary, navigating the ever-changing energy mix requires shifts in the electricity paradigm, to overcome market barriers and thus realise the full potential of VPP deployment in Singapore.