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Open a Company in the Energy Sector in Singapore

Open a Company in the Energy Sector in Singapore

Among the industries in which foreign direct investments have increased in the last few years is energy, renewable energy to be more specific. Investments in this sector have rose as a consequence of the incentives granted by the government to those who want to open a company in Singapore with the aim of providing modern and sustainable urban solutions.

Starting an energy company in Singapore implies following various steps and complying with several regulations imposed by the Energy Market Authority (EMA) in the city-state. Our company formation consultants in Singapore can offer information on the laws related to starting a business in the energy industry.

Company registration in the Singapore energy sector in 2024

Following the Commercial Law, foreign and local investors can register any type of business form with the Accounting and Corporate Regulatory Authority in Singapore in order to offer energy services to households and corporate clients in the city-state. Our local advisors can assist with the company formation process in Singapore.

After the Singapore company formation procedure is completed, the business owner must apply for one of the special licenses issued by EMA in accordance with the Energy Act.

Licensing of energy companies in Singapore

The Energy Market Authority issues the following types of permits for those opening companies in the energy sector in Singapore in 2024:

  • an energy generation license;
  • an energy retail license;
  • an energy wholesaler license;
  • a market support services license;
  • a transmission or transmission agent license.

However, a Singapore energy company may also be in charge with the installation of electricity grids for which different licenses such as electrical installation licenses are required. Another requisite for companies operating in the energy industry in Singapore is related to their employees who must have certain qualifications. They must also hold electrical worker or cable detection worker licenses in order to perform their jobs.

Prospects for Singapore’s energy sector

Currently, 95% of Singapore’s energy supply relies on natural gas, much like in other countries around the world. However, the government announced the Green Plan 2030 through which by 2035, it plans for the city-state to use a mix of green and traditional energy supply. By 2050, the city-state is projected to turn to 100% green energy use.

Apart from this, in numbers, the Singapore electricity generation market:

  • is projected to reach a value of USD 60.15 billion by the end of 2024;
  • by 2029, it is also expected to grow at an annual rate of 1.69%.

For full information on the requirements to obtain the licenses necessary to open a company in Singapore in the energy sector in 2024, please feel free to contact us. You can also rely on us for assistance with the company formation procedure.