Singapore


	The Japan Times WORLD EYE REPORTS SINGAPORE

©THE JAPAN TIMES	Thursday, October 30, 2003

Power for a power economy

The energy sector plays an important role in providing the impeccable infrastructure for which Singapore is renowned. But, the landscape in which the power sector operates has changed dramatically over the last two years. In July 2001, the government deregulated the power supply sector, allowing companies to enter the retail market and heightening competition.

Currently the largest power generation company in Singapore, PowerSeraya is positioning itself to reap the benefits of Singapore’s highly competitive and deregulated electricity market.

Shum Siew Keong, managing director of PowerSeraya

To remain the dominant player in the industry, PowerSeraya has devised a two-point strategy to increase its 34 percent market share. The company’s first line of attack is through the introduction of Orimulsion fuel from Venezuela.

“Going into Orimulsion is our breakthrough. Aside from our new combined cycle plants, we are also converting our steam plants to be able to use this competitively priced fuel,” explains the Managing Director Shum Siew Keong.

“Concurrent with this project, we have teamed up with Kansai Electric and IHI to put in new facilities which are more environmentally friendly. This way, we are using our current assets more efficiently and improving our environment significantly. We are a pioneer in this industry and are the first to introduce Orimulsion fuel into Singapore’s electricity generating landscape,” he adds.

Lau Gar Ning, CEO of Tuas Power

PowerSeraya’s second stratagem is to avail of the retail segment of the electricity industry that is progressively opening up within Singapore.

“To avoid a monopolistic structure within the retail sector, there are five active retailers who are targeting the contestable consumers. We are positioning ourselves to grow along the lines of this market. We are focusing our strengths and resources on industrial and commercial consumers, which comprise approximately 70 percent of the distribution load in Singapore,” says Shum.

“These are exciting times within the industry. With a direct understanding of our customers’ needs and concerns we will be able to provide customized solutions for their different requirements. We want to be the best customer driven competitor in the field,” he also says.

Another of the more innovative and leading players in Singapore’s power sector is Tuas Power, which was established in March 1995. It was the first company to compete with the state-owned incumbents in the power generation market and later became the first to enter the retail power market in Singapore through its subsidiary Tuas Power Supply in 2001.

Despite the increasingly competitive prices and low price caps, Tuas Power’s strategy of providing quality service backed by the outstanding reliability of its power plants has enabled it to retain an impressive 25 percent share of the generation market. Its retail market share also held strong.

“The reliability of our plant is the key success factor for us. If the availability and reliability of our plant are kept high, we will be able to capitalize on opportunities that may present themselves in the new market. We are very proud that our four generators manufactured by Mitsubishi and Hitachi had a 100 percent reliability record last year,” recalls Lau Gar Ning, CEO of Tuas Power.

Tuas Power is also constantly evolving to meet the needs of changing market requirements. The company has progressed over the last few years from a company focused solely on power production to one with a fully integrated portfolio of business in power generation, trading and retail.

As the retail market further opens up, Tuas Power is currently focused on supplying electricity to small and medium enterprises in Singapore while it prepares to serve the private household market segment over the next two years.

The company has strengthened its partnership with Mitsubishi to build blocks 3 and 4 of its Stage II facilities, which will be fully operational by the end of 2005 and bring its total generation capacity to 2,670 MW. The four combined cycle power plants are more fuel efficient and are expected to lower the company’s fuel costs.

With the completion of our Stage II power plants, we expect to increase our market share to 30 percent in 2006. This project is already ahead of schedule," says Lau.

He is also set on broadening the horizons for Tuas Power: "My vision is to take Tuas Power out of Singapore into the region. In the months to come we would like to use our experience and know-how to work with new partners in the region.

TOP

Home About Us Careers Contact Us Reports Advertisers About Japan Times