Why is keeping regulatory practices up-to-date crucial for energy markets?

Question

Accepted Answer

Keeping regulatory practices up-to-date is crucial because energy systems and risks change faster than fixed rules can handle
Singapore’s Energy Market Authority (EMA) and Japan’s Electricity and Gas Market Surveillance Commission (EGC) signed a memorandum of cooperation to strengthen collaboration on gas and electricity market regulation, with EMA saying regulatory practices must stay up-to-date as the energy landscape rapidly evolves. EMA chief executive Puah Kok Keong linked the exchange with EGC to ensuring a well-functioning energy market and reliable power supply, while EGC secretary general Tatsuya Shinkawa said the collaboration helps both countries respond to challenges in maintaining reliable energy supply and well-functioning electricity markets.
The energy landscape changes quickly, so rules can become outdated
EMA pointed to a rapidly evolving energy landscape as the reason regulatory practices must be kept up-to-date. In general, energy markets can shift due to changes in generation mix, demand patterns, and fuel supply conditions, which can expose gaps in older regulatory approaches that were designed for different operating realities.
Updated surveillance and regulation design help maintain system stability
The MoC includes knowledge exchange on energy market surveillance approaches, regulation design, and system stability measures. As system operating conditions change, regulators typically need to adjust how they oversee market behaviour and how rules are structured so that grid stability and the balance between supply and demand remain manageable.
Reliability depends on oversight that matches new risks and conditions
Puah Kok Keong said the exchanges are part of efforts to ensure well-functioning energy markets and reliable power supply. When market conditions evolve, maintaining reliability usually requires regulators to keep monitoring and rule frameworks aligned with emerging risks, so electricity trading and operational reliability can continue under new patterns of generation and demand.
Cross-border cooperation targets shared challenges in reliable supply and market functioning
EGC said the collaboration enables Singapore and Japan to address challenges in ensuring reliable energy supply and well-functioning electricity markets. For markets connected by global fuel and technology trends, keeping regulatory practices current through cooperation can help both sides respond to similar pressures affecting how electricity and gas systems perform.

Reading history

Hide →

This history is cleared when the page is closed.

Why is keeping regulatory practices up-to-date crucial for energy markets?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends