Buying Green Electricity through the Open Electricity Market (OEM)

Since the rollout of the Open Electricity Market (OEM) in Singapore, consumers are not only given the opportunity to switch their electricity retailers, they are also allowed to purchase and switch to green energy.

However, despite the option to choose green energy, trends seem to indicate a slow adoption of these options. At the launch of the OEM in 2018, electricity retailers such as Tuas Power Supply and PacificLight Energy gathered over 1,000 sign-ups compared to solar-friendly Sunseap with only a 3-digit figure. Green electricity is also often misunderstood in Singapore.

What is Green Electricity?

Green electricity is electricity generated using renewable sources such as solar, hydropower, wind or geothermal heat energy. These resources can be replenished, renewed and are not scarce in nature, thus a lot better for our environment.

Forms of Green Electricity

There are two forms of green electricity in Singapore’s casel: clean energy (which is directly generated from solar) and carbon neutral electricity. Due to low solar penetration in Singapore, most of the green electricity that we use falls under carbon neutral electricity.

So what exactly is carbon neutral electricity?

Unlike clean energy which is generated through renewable sources, carbon neutral electricity is still generated through fossil fuels. However, electricity retailers obtain carbon credits to offset your energy usage, so you still maintain carbon neutrality on the electricity which your household has consumed.

For example, iSwitch in Singapore obtains carbon credits which are certified by the UN under the initiative Climate Neutral Now, launched in 2015 in hopes to encourage individuals and businesses to achieve net-zero carbon emissions or a carbon neutral world.

Thus, if you are purchasing carbon neutral electricity for your home or business, your carbon emissions will be fully offset through these carbon credits, reducing your carbon footprint!

My Green Credits Scheme

In October 2020, SP Group also launched their version of carbon credits, called My Green Credits, allowing customers to offset emissions from their electricity use. If you prefer to purchase your own credits instead of going through a retailer, you can now buy your own green credits through SP Group’s mobile application.

While green credits are not really tangible, its projects are. SP Group allows customers to purchase green credits and support existing projects, starting out with the Katoen Natie rooftop solar project in Singapore and the Krong Pa solar farm in Vietnam, and the list is likely to grow.

Green Electricity Retailers

Want to find out more?

If you are interested in switching to green electricity or just finding out what options you have, here are the retailers that you can go to!

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