Apac
  • Home
  • CXO Insights
  • CIO Views
  • News
  • Conferences
  • Newsletter
  • Whitepapers
  • About us
Apac
  • Admired Tech

    Agile

    AI Healthcare

    Artificial Intelligence

    Augmented Reality

    Aviation

    Big Data

    Blockchain

    Cloud

    Cryptocurrency

    Cyber Security

    Digital Transformation

    Drone

    HPC

    Infrared

    Internet of Things

    Networking

    PropTech

    Remote Work

    Scheduling Software

    Simulation

    Startup

    Storage

    Wireless

  • Banking

    E-Commerce

    Education

    FinTech

    Food and Beverages

    Healthcare

    Insurance

    Legal

    Manufacturing

    Pharma and Life Science

    Retail

    Travel and Hospitality

  • CISCO

    Microsoft

    Oracle

    Salesforce

    SAP

    ServiceNow

  • Business Intelligence

    CEM

    Cloud-based Planning

    Cognitive

    Compliance

    Contact Center

    Contact Tracing

    Contactless Payments

    Content Management System

    Corporate Finance

    CRM

    Custom Software Development

    Data Center

    Enterprise Architecture

    Enterprise Communications

    Enterprise Contract Management

    ERP

    Field Service

    HR Technology

    IT Service Management

    Managed Services

    Procurement

    Product Management

    RegTech

    Revenue Management

Menu
    • Energy
    • Cognitive
    • Digital Transformation
    • E-Commerce
    • Blockchain
    • RegTech
    • IT Service Management
    • Augmented Reality
    • Microsoft
    • Contact Center
    • Collaboration
    • Healthcare
    • MORE
    #

    Apac CIO Outlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIO Outlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    • Energy
    Editor's Pick (1 - 4 of 8)
    left
    Greenfield Development: The View from a Renewable Energy Startup

    Paul Liddell, CIO Redback Technologies

    Tata Power: A Case Study on the use of Technological Innovation, Digitization and Data Analytics

    Anil Sardana, CEO, TATA Power

    Power Factor  Efficiency in the Usage of Electricity

    Joe Coco, EGM - New Ventures, Solgen Energy Group

    Utility was Yesterday, Tomorrow is Internet of Electricity!

    Mathias Steck, Vice President, DNV GL

    Cyber Threats in Energy Companies

    Eric Eifert, SVP, DarkMatter LLC

    The Future of Technology in Unconventional Shale Production

    Jeff Foster, President & CEO, MicroSeismic

    An Integrated Grid at the Intersection of IT and OT

    Matt Wakefield, Director of Information, Communication & Cyber Security Research, Electric Power Research Institute

    Smart Energy Solutions for Industries

    Michael Turwitt, CEO & President, 2G Cenergy Power Systems Technologies

    right

    Balancing Risk Management with Technology in Singapore's Energy Market

    By Andrew Koscharsky, and General Manager, Wholesale and Trading,

    Tweet
    content-image

    Andrew Koscharsky,

    Singapore’s electricity market liberalisation efforts are paying off, with contestable customers now being able to choose their power supply from twice the amount of retailers as before. This increase in competition not only translates to significant cost savings, but also promotes technological advances that empower customers to measure and manage their own consumption behaviour. Retailers are now forced to compete on a broader platform than just price. This fresh capital injection provides a wider platform, encompassing energy efficiency, real time data monitoring, carbon management and new energy products.

    About 70 Percent of Singapore’s load is contestable, with the remaining 30 Percent (mainly residential) opening up to contestability sometime in 2018.

    Risk Management

    The obvious challenge for retailers is penetrating the Sales and Marketing battleground, but an often forgotten risk is the volatile wholesale spot market. The risk management and hedging functions associated with managing unpredictable customer consumption can be quite costly, especially when spot prices are high. The Singapore electricity wholesale market is one of the most volatile commodity markets in the world, with the spot market seeing price excursions capped at +/- SGD $4,500/MWh, settled every 30 minutes. A typical recent day would see price sit at only about SGD$65. As a result, being left long or short due to inaccurate customer forecasts can be unforgiving.

    Such volatility is partly due tothe day to day fundamentals of electricity trading such as transmission, supply outages and unpredictable weather, but also due to the oil price linkage. Singapore’s electricity prices are directly linked to the volatile global oil price because Singapore imports all of its fuel from other countries, all tied to oil linked pricing. This means that retailers and generators are well advised to embrace technology to manage their wholesale market risks.

    The Singapore Stock Exchange (SGX), in collaboration with the Energy Market Authority (EMA) has listed 9 tradable quarterly electricity

    futures contracts. This allows retailers to deal in such financial products to hedge against the above mentioned market risks up to 2 years forward. This new SGX risk management tool allows retailers to buy futures contracts to help manage their wholesale risk as they sell to end use consumers. Conversely, it allows generators to sell futures contracts to manage their margins and revenue streams by locking in a fixed price. However, retailers are still faced with the question of how much electricity to buy to cover the expected retail customer consumption. This is where advanced technology steps in…

    Singapore Loves Technology

    If there is one country that embraces, develops and promotes technology, it is Singapore. As the electricity market continues to liberalise and consumers look to personally manage their own energy costs, the growing ability to do this interactively and through technological metering advances provides a real opportunity for IT service providers and developers.

    Imagine being able to use an app where you can do the following:

    • Buy an electricity retail product from iSwitch which is a mix of fixed price and spot market exposure. Some portion should be fixed to avoid full spot mark exposure. Spot market exposure allows you to take advantage of periods of low spot prices when they occur.
    • Automatically charge your car or home battery only when wholesale spot prices are low.
    • If spot prices are high then advanced software will trigger your battery to automatically discharge back into the grid, allowing an arbitrage and revenue earning opportunity.
    • Turn off non-essential home appliances such as a clothes dryer, pool pump or aircon if spot prices are high with the push of a button on your phone. Alternatively, this can also be automated.
    • Tell the app that you will be away for the next 5 days so there is no need to run the hot water heater or any other stand by appliances such as the TV.

    The above list is only limited by imagination and Singapore can look forward to a host of new IT capital investment to help businesses and homes to save money and also reduce their carbon footprint through more efficient energy usage. While such advances are being worked on in other countries, Singapore is well placed to embrace them faster and more efficiently due to market transparency and geography.

    Alex Dechnicz, Corporate Portfolio Manager at Ausgrid in Australia agrees.

    “Metering technology has dramatically progressed over recent years, providing retailers, commercial customers and now, residential customers with the ability to measure monitor and manage electricity usage to suit their respective needs. Customers have been the key driver for these advancements, seeking solutions to not only obtain the data remotely in 15/30 minute intervals, but then use this data for varied decision-making. E.g. billing, environmental reporting, cost reduction analysis, bi-directional reporting, remote reconnect/disconnect, embedded networks etc. The electricity market is heavily reliant on accurate & timely data. Immediate, multifunctional access to this data empowers all users with the ability to make educated decisions and benefit accordingly.”

    Advanced data technology also allows the retailer to gain real time consumption data, with better granularity. This allows iSwitch to understand customer consumption behaviour more accurately and reduce procurement costs by not over or under hedging against spot market exposure.

    Who would have thought that electricity retailing could be so interesting!

    tag

    Financial

    Energy Efficiency

    Weekly Brief

    loading
    25 Most Promising Energy and Utility Solution Providers

    Featured Vendors

    Infoscope

    Navin Nirmalrajan, MD & CEO

    Smart Utility Systems

    Deepak Garg , Founder, Chairman & CEO

    ON THE DECK

    Other 2021

    Top Vendors

    Content Management System 2020

    Top Vendors

    Previous Next

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Transforming business performance by taking an outside-looking-in customer perspective

    Transforming business performance by taking an outside-looking-in customer perspective

    Graham Perry, Managing Director, BWH Hotel Group Australasia
    Winning the Customer Service Rush During the Holiday Returns Season

    Winning the Customer Service Rush During the Holiday Returns Season

    Mark Abramowitz, SVP Marketing, Service Cloud at Salesforce
    MOBILE APPS IN THE NEW DECADE

    MOBILE APPS IN THE NEW DECADE

    Bibaswan Banerjee, Director, CRM and User Analytics, Klook
    Covid-19 and Lessons from the largest Work from Home Experiment

    Covid-19 and Lessons from the largest Work from Home Experiment

    Vikas Verma, Director Human Resources, United Overseas Bank
    Reimagine the Future of Education in a post-COVID-19 World

    Reimagine the Future of Education in a post-COVID-19 World

    Samson Tan, Head, Centre for Innovation in Learning, National Institute of Education
    A creative approach to remote simulator installations

    A creative approach to remote simulator installations

    Sharon Cooke, CEO, Airways International Ltd
    Priority 2021: Achieving 100% Automation in Finance

    Priority 2021: Achieving 100% Automation in Finance

    Ekaterina Sejourne, CFO, Puma Energy Asia Pacific Pierre Costa, Global CIO, Puma Energy
    Tech Tonic: How technology is helping the travel sector recover from the impact of Covid-19

    Tech Tonic: How technology is helping the travel sector recover from the impact of Covid-19

    Patrice Simon, CTO Data and Analytics, CWT
    Loading...

    Copyright © 2021 APAC CIOoutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy Policy  |  Sitemap |  Subscribe

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://energy.apacciooutlook.com/cxoinsights/balancing-risk-management-with-technology-in-singapores-energy-market--nwid-2760.html