On Monday, Singapore listed energy, utility and infrastructure developer Sembcorp Industries announced that it is partnering with the city-state’s government-owned utility SP Group (SP) on a renewable energy credits trading and services platform. Billed as a “one-stop global solution to help corporates and consumers achieve their sustainability goals,” the platform’s launch is planned for the first quarter of 2021.
The Sembcorp-SP platform will include a marketplace for the trading of renewable energy certificates (RECs) and carbon credits, and provide carbon consulting services. RECs are a recognized way of achieving green targets and a credible means for buyers to report that consumed energy comes from renewable energy sources. Carbon credits are tradable certificates that allow buyers to offset their greenhouse gas emissions (GHG) by supporting projects aimed at reducing GHG emissions.
Carbon consulting services will include analysis, advisory and strategy development to assist corporates in achieving carbon emission reduction targets.
In 2015, Singapore pledged to reduce its carbon emissions by 36 percent from 2005 levels by 2030, and to stabilize emissions with the aim of peaking around 2030. The national target is to halve emissions from its peak to 33 million tons of CO2 equivalent by 2050, with a view to achieving net zero emissions as soon as viable in the second half of the century.
In a joint statement, SP Group Chief Executive Officer Stanley Huang said: “This platform complements SP Group’s full suite of sustainable energy solutions that enable individuals and corporates to achieve a low-carbon, smart energy future. We contribute through deep experience and a strong track record of serving our strong base of 1.6 million industrial, commercial and residential customers in Singapore and the region, as well as operating the world’s first blockchain-powered RECs platform.”
Sembcorp Industries Group President and Chief Executive Officer Wong Kim Yin added, “Our partnership with SP is timely as more customers pivot towards low-carbon energy goals. We are well positioned to add value through our strong global energy expertise, digital innovation and renewables portfolio. This offering, together with the 2,600MW renewable energy assets we have developed across key markets, enables Sembcorp and our customers to contribute actively towards a sustainable future.”
SP Group, through its existing REC platform, already offers corporates an automated solution to buy and sell RECs by the I-REC Standard. In addition, SP operates a retail “Green Credits” program that allows individuals and households in Singapore to purchase RECs via their SP Utilities App, and match their electricity consumption with an equivalent amount of green energy produced to support renewable energy generation.
The Sembcorp REC platform offers customers high liquidity and flexibility with a stable source of RE100-recognised RECs. As an aggregator, Sembcorp combines qualified RECs from sellers for sale to customers seeking high quality sources. With its strong supply base of RECs and access to other renewable energy generators in Singapore and the region, Sembcorp will add to the list of third-party assets offered on the combined platform.
SP Group is a leading utilities group in the Asia Pacific, which owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and sustainable energy solutions in Singapore and China.
As Singapore’s national grid operator, it serves about 1.6 million industrial, commercial and residential customers.
Beyond traditional utilities services, SP Group also provides a suite of sustainable energy solutions such as cooling and heating systems for business districts and residential townships, electric vehicle fast charging and green digital energy management tools for customers in Singapore and the region.
For its part, Sembcorp has a balanced thermal and renewable energy portfolio of over 12,600MW, with over 2,800MW of renewables, battery storage and energy-from-waste capacity. Sembcorp’s urban arm is acknowledged as a leading Asian building and infrastructure developer, with a strong track record of transforming raw land into sustainable urban developments.
Sembcorp Industries has total assets of over S$23 billion (about $17 billion), is listed on the main board of the Singapore Exchange, is a component of the Straits Times Indexand multiple sustainability indices, including the FTSE4GoodIndex, the Dow Jones Sustainability Asia Pacific Index and the iEdge SG ESG indices.