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Powering a Bright Energy Future

- Note by Lim Sam San, Vice President (Retail)

for-emailer-and-article-note-from-sam The electricity industry has seen rapid changes and development over the years, which have been both challenging and exciting at the same time. Volatile energy prices are just one of them. While there has been a recent slide in fuel oil prices, the wholesale energy prices in Singapore are being pushed upwards as demand increases due to high temperature and limited combined cycle gas turbines (CCGTs) in the system.

In the long term, Seraya Energy foresees that Singapore’s electricity demand will continue to grow in line with population and economic growth. Though Singapore is not spared from the impact of the Eurozone Financial Crisis, the country is still maintaining a positive growth forecast of 1 to 3 percent GDP for the year 2012. The hotter weather over May and June this year also lifted overall demand level, which put it between 6000MW and 6200MW during peak hours. Longer-term, the country’s steady growth rate will see electricity demand rise between 1 to 3 percent annually till 2018.

Another challenge the industry has to grapple with includes concerns over energy security. The entry of Liquefied Natural Gas (LNG) in 2013 will help meet demand that is rising in tandem with the population and economic growth. As an additional fuel source, LNG will offer stability in gas supply for power generation. That said, it may also lead to uncertainty on pricing as LNG prices are tagged to Brent Oil while current pipe prices are tagged to High Sulphur Fuel Oil (HSFO). This may lead to greater uncertainty for consumers to predict future electricity prices. As it is, Seraya Energy is already receiving more requests from customers seeking to lock in long-term contracts pricing.

To tackle on-going challenges in a fast-changing energy landscape, we need to seek new ways and opportunities to better serve the energy needs of our customers, so they can focus on their core business. Together with our parent company which is now known as YTL PowerSeraya, we continue to collectively contribute to a dynamic energy sector.

I certainly look forward to another great year of partnership with our customers and business partners and hope you will continue to join us in our journey as we constantly seek new ways to power a bright energy future for all.

Yours Sincerely
Lim Sam San
Vice President (Retail)
Seraya Energy

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