Singapore has punched above its weight in the global fight against climate change since the ratification of the 2015 Paris Agreement. Aside from implementing a Carbon Tax, Singapore has set a goal to have solar energy fufill 10% of the nation’s energy mix, with a longer term mission of halving emissions by 2050.
Renewable energy is set to play a major role in realising Singapore’s low carbon future, with solar power being touted as a promising renewable energy source. According to the National Climate Change Secretariat, Singapore is aiming to increase its installed solar capacity to 350 MWp by 2020, and 1 GWp beyond 2020, equivalent to powering about 210,000 4-room HDB dwellings.
However, challenges such as land constraints remain in deploying solar energy on a large scale. One highly viable approach to catalyse this shift is peer-to-peer (P2P) energy trading models, which potentially maximises the rooftops of commercial and residential buildings to fulfill Singapore’s solar potential.
P2P energy trading models usually comprise 4 components; prosumers (individuals who own the means to produce renewable energy, such as solar panels, who both produce and consume energy), consumers, an energy grid, and a secure platform to facilitate transactions.
In a nutshell, these models allows prosumers to sell excess energy to consumers at their own agreed upon terms and prices.
So, why is peer-to-peer energy trading primed to be the next game changer for electricity?
On the public sector front, governments such as those in Japan and Europe have faced considerable challenges of balancing subsidies and tariffs to encourage the uptake of clean energy. While popular, the approach of relying on feed-in-tariff requires a significant amount of subsidies from the government. P2P energy trading models solves this problem as the cost are significantly lowered. Power companies have access to more green energy at no additional cost and may even earn revenue.
While P2P energy trading holds many benefits, it remains a relatively new energy model in Asia. However, more countries are exploring alternative energy trading models in recent years, with some having embarked on their own P2P energy trading trials. Apart from Singapore, energy authorities in Australia, Japan, Thailand, and Malaysia are also exploring the potential of P2P energy trading.
With Electrify’s P2P energy trading platform—Synergy—we have developed SolarShare in collaboration with Senoko Energy and ENGIE Factory to showcase the commercial viability of P2P energy trading. This is Singapore’s first peer-to-peer commercial energy trading platform powered by Synergy. Through SolarShare, we can trade energy across Singapore’s main power grid between prosumers and consumers, where participants can monitor their energy flow and choose their preferred green energy supplier. Prosumers with solar panels installed on their rooftops will be able to sell their excess green energy for a better return, while consumers can use SolarShare to convert to green energy at competitive prices, supporting their local community.
Utilizing SolarShare and Electrify’s Synergy technology, we can definitely see peer-to-peer energy trading as the preferred energy model for renewable energy trading across the world within the next decade, encouraging the growth and demand for sustainability. We have our sights set on changing the energy landscape of Asia amid the climate change conversation, and will continue to stay the sustainable energy cause in collaboration with our partners. Want to make history with SolarShare? Register your interest at http://www.solarshare.sg