Joint Venture To Operate Singapore Electricity
M-co Signs World First Joint Venture To Operate Singapore Electricity Market
In a world first, M-co, The Marketplace Company has entered into a joint venture with the regulator of the Singapore electricity industry, to implement and then operate Singapore's new wholesale electricity market. M-co currently operates the New Zealand wholesale electricity market (NZEM).
M-co will work with the Energy Market Authority of Singapore to put in place a new wholesale electricity market for Singapore later this year.
The Energy Market Company Pte Ltd (EMC) currently operates the wholesale electricity market in Singapore, until now EMC has been a wholly owned subsidiary company of the Energy Market Authority. The M-co Group now has a 49 per cent stake in EMC, and the Energy Market Authority has a 51 percent stake.
The New Zealand Government congratulated both M-co and the Energy Market Authority on today's announcement saying this was further evidence of the growing ties between the two countries. Minister of Energy, Hon Pete Hodgson welcomed the venture, saying, "The decision by Singapore to base their wholesale electricity market on the New Zealand model is recognition of the growing ties between Singapore and New Zealand and of the quality of the NZEM operation."
Philip Bradley, M-co's Chief Executive said the company was proud to play such a major role in a key Southeast Asian initiative.
"This deal is a world first and constitutes a major expansion of the M-co Group of companies. We now operate markets in three countries: New Zealand, Australia and Singapore, and we intend to expand further" said Mr. Bradley.
The Energy Market Authority welcomed the enterprise, "The purpose of the joint venture is to tap the expertise and experience of The Marketplace Company Limited in New Zealand," said Khoo Chin Hean, Chief Executive of the Energy Market Authority. "EMA is pleased to join with a partner as experienced as M-co to implement Singapore's new wholesale electricity market."
Mr Bradley also said, "The Energy Market Company provides a great opportunity for an international exchange of knowledge. The joint venture will enable a cross-fertilization of skills. We believe Singapore will benefit from M-co's depth of expertise, and then New Zealand will profit from M-co bringing this experience to bear in our ongoing relationship with the New Zealand electricity industry."
"The design of the Singapore market is similar in key aspects to the New Zealand wholesale electricity market and today's announcement is a significant compliment to the work that has been done by the electricity industry," continued Mr. Bradley. "It is also recognition that the New Zealand market is held in high regard internationally."
To prepare EMC for the new market, M-co New Zealand has seconded its General Manager of Market Operations, Allan Dawson, to be EMC's Chief Executive Officer.
Mr. Dawson was heavily involved in the project to implement New Zealand's wholesale electricity market in 1996 and played a major role in the operation and evolution of this market. In addition, he recently led the project to develop a market for trading "green electricity" in Australia.
M-co's New Zealand office will also provide other experienced professional services to support the operations of EMC.