Reliability has become a large concern for Singapores electricity market. Singapore recently experienced five power outages in less than two years, which resulted mainly from Natural Gas supply disruptions. These outages occurred even though Singapores electricity market has abundant reserve margins. According to the EMA, the combined installed electricity generating capacity in the country will reach more than 10,200 MW by the end of 2006, almost double the peak demand of 5,200 MW. The government of Singapore established a high-level Energy System Review Committee (ESRC) to evaluate options for improving the reliability of the market. Short-term solutions include the use of natural gas-fired generation plans that can operate with diesel in the event of a prolonged natural gas disruption (cogeneration plants), the installation of additional independent power producers, and the establishment of two natural gas sources for each power plant. LNG imports are a longer-term option.

Despite overcapacity, new power stations have been introduced or are under construction. This appears to be an effort to introduce newer, more reliable power plants that burn natural gas rather than Coal. The newest player in the electricity generating sector is SembCorp Cogen, which built an 815-MW power station in early 2002 that consists solely of natural gas-fired combined cycle gas turbine (CCGT) technology. Since that time, all new power plants in Singapore have been cogeneration CCGT facilities. Keppel Energy plans to commence operations at a 500-MW cogeneration CCGT plant by the end of 2006. In 2005, Tuas Power commissioned two new 360-MW CCGT units. Senoko Power, Singapores largest generating company, produces only 60 percent of its power from CCGT plants and has been the slowest to bring new cogeneration units on-stream.