Beginner’s Guide on Starting an Energy Management Business in Singapore
We are constantly utilizing energy wherever we go and in everything we do. Our consumption of energy is perplexing as we are used to having it within reach. It revolves around us all the time. It is little wonder that starting an energy business in Singapore is deemed viable.
Generally, people associate energy with electricity. We indeed harness power from nature. You cannot create or destroy energy. It is converted from one form to another. Hence, we look to natural energy and convert it into the energy we can utilize.
Singapore has constant development in almost every corner of the island. With its 5.8 million people living on the island, Singapore needs to ensure energy efficiency for everyone. The lack of natural energy resources makes renewable energy an urgent prospect of exploration. There has been a surge of foreign investment in the energy business in the city-state. Here is the guide on starting an energy management business in Singapore, which explains the industry practice, business registration, licenses, and permits.
Although small in size, Singapore is the first to have a wholesale energy market. To further create a competitive energy market, the city-state has now opened its electricity market. This move enables residential consumers and business consumers to buy electricity that fits their needs.
There is no longer a single monopoly for the electricity market. Consumers have several options to buy from electricity providers. These providers can now share the weight of maintaining power plants among them; hence, the cost can be cheaper. Over 90 percent of our electricity is derived from natural gas since it is the cleanest form of fossil fuel. It is Singapore’s dominant fuel until there are other sustainable sources.
Tapping Into Energy
Local and foreign businesses looking into starting an energy management business in Singapore have several options to choose from.
Rich oil countries may not necessarily have the expertise to conduct processes related to the petroleum industry. There are upstream, midstream, and downstream segments of the industry, and each has its processes.
Before gas was monetized, gas was a by-product of crude petroleum. Until then, it was left to burn. If you have the technical know-how to manage natural gas, this is an option.
Being an island on the equator, Singapore has a promising solar energy source. There are more opportunities in the solar energy sector if you wish to start an energy management business.
Other Low Carbon Energy
Besides solar, the city-state actively looks for other low-carbon energy sources such as wind or hydrogen. This is to lower the island’s carbon footprint in general.
Vehicle Charging Stations
As the island is phasing out petrol-powered vehicles, more are opting for hybrid and electric vehicles. Hence, we need more charging stations.
Although Singapore imports most of its energy, there are many aspects of the energy industry where businesses of all sizes can participate. The energy market in Singapore is strictly regulated. Singapore faces endless energy challenges, and the island needs to innovate its power sector to ensure energy is sufficient at all times. The government of Singapore is very encouraging in helping enterprises to start an energy business in Singapore.
Although the energy laws are extensive, getting a Singapore corporate service provider for help will enable startups and foreign businesses to understand the market better. For starters, all electricians and electrical workers must be certified and licensed. This is to ensure all electrical works are safe for use. Hence, a startup could provide licensed electricians for new wiring, rewiring, and extension work.
Energy Business Registration
Singapore is ranked among the easiest countries to register a business. If you plan to start an energy business here, you could start engaging with 3E Accounting for your guide to company registration. The Energy Market Authority (EMA) in Singapore is the regulating body for the energy market. It includes policy papers for each energy sector, licensing, and grant opportunities.
Before registering your energy management business, it is wise to understand how your niche expertise will aid the energy market itself. After thorough research on specific energy segments, you can register a company at the Accounting and Corporate Regulatory Authority. Whether you are a foreigner wishing to set up a company or a local startup, here’s the place to get your company registered. You can do it yourself, but preparing the documentation may set you back.
Thus, appoint a Singapore company incorporation services provider to do it for you. You can take a breather and provide the necessary documents as our experts advise you along the way.
Licensing in the Energy Sector
Since the EMA is the regulating body for the energy industry in Singapore, all relevant licenses are approved by EMA. All businesses setting up in Singapore will now need to obtain licensing via the GoBusiness licensing portal. It is a one-stop center for all business licensing. But at some point, you may need help to obtain specific licensing such as electrical installation licenses or gas shipping licenses.
Electricity licensing is required for businesses involved in electricity, retail, and transmission, wholesale electricity market, and market support services. The following are the electricity licenses available for interested companies:
- Power generation companies – applies to companies generating units of 10MW or above.
- Retailers – applies to companies selling electricity to consumers. Under the Open Electricity Market, these consumers are residentials and small businesses.
- Wholesalers – applies to companies that trade in the wholesale electricity market.
- Market Support Services – applied by companies that provide reading electricity meters, meter data management, and facilitate access to consumers’ wholesale electricity market.
Since gas is the dominant fossil fuel of Singapore, there are also gas licenses available for related companies:
- Gas Importers – companies, may import natural gas into Singapore in liquid natural gas (LNG) or pipeline natural gas.
- LNG Terminal Operator – companies with this expertise will be receiving, storing, regasifying LNG for delivery, or reloading onto LNG vessels for export.
- Gas Onshore Receiving Facility Operator – these are companies involved in receiving and preparing gas for delivery to users
- Gas Retailers – applies to companies supplying gas to retail consumers.
Renewable energy in Singapore is undergoing intensive research and innovation by many companies. Thus, many opt to install solar photovoltaic panels to generate energy and sell it back to the national power grid. There is much more advice you can get when you are serious about starting an energy business in Singapore. Contact us at 3E Accounting today to get your business powered on.