TransitionZero’s latest report reveals that Singapore could save at least $185m annually by 2030 through the adoption of hourly carbon-free electricity (CFE) procurement. This approach, which involves matching clean energy supply with demand on an hourly basis, is projected to reduce gas fuel costs significantly and enhance grid efficiency.
The report suggests that achieving a 70% hourly CFE score could lower system costs by $16m compared to annual matching. This would require 2.4 gigawatts (GW) of solar and 0.5 GW of battery storage, secured through power purchase agreements by commercial and industrial buyers. The study indicates that hourly matching could lead to 16–22% greater emissions reductions at higher CFE scores, with potential annual fuel savings reaching up to $264m.
Regional interconnectors, such as those with Indonesia and Malaysia, are expected to further boost solar and battery generation, displacing costly gas usage and supporting system balancing. These interconnectors could increase Singapore’s base CFE score from 2.7% to 10%, cutting overall fuel emissions by 2.8 million tonnes of CO2 annually.
Isabella Suarez, Southeast Asia Lead Analyst at TransitionZero, stated, “Hourly matching transforms corporate procurement into a system-level asset. It helps displace high-cost fuel use, supports battery flexibility, and complements—not replaces—Singapore’s import ambitions.”
Singapore’s energy strategy includes plans to import 6 GW of low-carbon electricity by 2035 and raise its carbon price to SGD 80 per tonne of CO2 equivalent by 2030. TransitionZero’s CEO, Matt Gray, described hourly matching as a “no-regrets” strategy, emphasising its potential to drive significant fuel cost savings and support national climate objectives.
