ABSTRACT
Taking an electrical storage system as a form of system flexibility and Singapore as the case country, this study presents how incorporating system flexibility into a regional power trade model could affect the integration of renewable energy into the grid and the amount and trajectory of carbon dioxide (CO2) emissions. It presents two key findings. First, the more power trade is allowed in the integrated regional electricity market, the higher the amount of CO2 emissions. The integrated regional electricity market appears to push underutilised generation technologies to the limit. Second, the incorporation of system flexibility into the integrated regional electricity market appears to decrease the amount of CO2 emissions and flatten their trajectory. Three policy implications are derived. First, the region needs to adopt generation technologies which can help the region sustain the decreasing trend of CO2 emissions. Second, it is advised to implement stronger carbon measures. Third, it is encouraged to consider deploying more electrical storage systems.
