The Energy Market Authority (EMA) of Singapore has introduced an incentive scheme to award up to $44m to operators of the first two advanced combined cycle gas turbines (CCGTs) in the country.
This initiative aligns with the country's strategy to enhance the efficiency of the power sector and reduce carbon emissions.
The selected recipients, Keppel's Infrastructure Division and Sembcorp Industries, are anticipated to implement these advanced CCGTs by December 2026.
EMA said advanced CCGTs are a leap forward in power generation technology, with each unit capable of producing around 600MW, which is a substantial increase compared to the existing CCGTs that generate up to 400MW each.
The two CCGTs by Keppel and Sembcorp are projected to emit at least 200,000 tonnes (t) less carbon annually compared to existing plants.
This is reportedly comparable to cutting down the carbon emissions from roughly 80,000 households in Singapore over the course of a year.
Despite their efficiency, these CCGTs face initial challenges due to increased reserve costs, as they require additional backup power for emergencies.
Therefore, the incentive scheme aims to mitigate this cost disadvantage for the early adopters, ensuring that the transition to more efficient technology is financially viable.
As the adoption of advanced CCGTs increases, the reserve costs will be spread across a larger number of units, thereby reducing the cost per CCGT.
In the long term, the efficiency gains are expected to surpass the additional costs, thereby eliminating the cost disadvantage.
EMA highlights the key role of hydrogen-ready advanced CCGTs in Singapore's transition towards a low-carbon energy future.
These power plants will provide a stable, dependable, and efficient baseload power generation capacity, supporting the country's growing solar energy initiatives, low-carbon electricity imports, and other sustainable solutions.
Last year, EMA conditionally approved Sun Cable’s proposal to import 1.75GW of low-carbon electricity from Australia.
