SGX buys energy trading firm stake to enter electricity market
SINGAPORE, Aug 6 – Singapore Exchange Ltd (SGX) said today it is buying a 49 per cent stake in the operator of the city-state’s wholesale electricity market.
The exchange is paying an initial S$17.64 million (RM44.09 million) for just under half of the Energy Market Company (EMC), which runs the National Electricity Market of Singapore (NEMS).
SGX said in a statement that the deal should enable it to develop a market for electricity derivatives.
“The demand for electricity and energy products will increase in line with Asia’s growth and this acquisition will position SGX to take advantage of these opportunities,” said Magnus Bocker (picture), SGX’s chief executive.
The NEMS is the first liberalised electricity market in Asia, according to its website. – Reuters