In a groundbreaking initiative aimed at managing electricity demand, Singapore is launching the Residential Demand Response (R-DR) program, which will encourage selected households to reduce their power consumption during peak periods. The program is set to begin in the second half of 2024 and will involve around 1,000 homes equipped with smart electricity meters from SP Group, as announced by the Energy Market Authority (EMA) on October 24, 2023.

Participating households will receive notifications via the SP app, prompting them to temporarily decrease or postpone their electricity usage during peak demand times. This could involve deferring the operation of high-energy appliances like washing machines and dishwashers or adjusting air conditioning settings.

Peak demand typically occurs in the afternoons and during the warmer months, with recent statistics showing an increase from 7.3 gigawatts (GW) in February 2023 to 7.9 GW in May 2023, coinciding with higher temperatures. For example, temperatures reached 37 degrees Celsius in Ang Mo Kio on May 13, a record not seen since 1983.

Incentives for Participation
Households that successfully reduce their energy consumption when alerted will be rewarded with financial incentives. While the pilot program is expected to last for six months, specific details regarding the type of incentives will be provided later, as SP Group and EMA finalize the program.

Manpower Minister and Second Minister for Trade and Industry, Tan See Leng, emphasized the importance of consumer participation in maintaining a resilient electricity grid and highlighted the often-overlooked role of demand management in energy security. Ngiam Shih Chun, chief executive of EMA, noted that consumers can significantly impact energy savings and carbon emissions through reduced electricity usage.

As electricity demand is projected to rise at an annual rate of up to 6.5% over the next five years, this initiative aims to enhance the efficiency of the power system by balancing both demand and supply.

This residential program follows a similar initiative for commercial firms, where participants receive payment for reducing their electricity usage during specific times. This commercial effort has successfully increased demand-side resource capacity by 1.5 times to around 100 MW, resulting in savings of approximately S$300 million for energy buyers in the Singapore wholesale electricity market in the first half of 2023.

As of September 2023, SP Group has installed over 834,000 smart electricity meters across residential and non-residential areas, enabling households to monitor their electricity consumption effectively through the SP app.