EMA eyes establishing regulatory sandbox for the energy sector

They want industry players to test new products and services in a safe space.

The Energy Market Authority (EMA) of Singapore is following the footsteps of the Financial Technology sector in setting up a regulatory sandbox for players to test their new products.

"The establishment of a regulatory sandbox can create an environment where regulations can be relaxed within parameters, to promote innovation in Singapore’s energy sector. It also allows the regulator to assess the impact of new products and services before deciding on the appropriate regulatory treatment," EMA said in its consultation paper.

EMA noted that whilst the Sandbox cannot remove all risks, as failure is an inherent characteristic of innovation, the environment can provide the necessary safeguards to contain the consequences of failure on consumers and the energy market.

More so, the sandbox can provide an avenue for EMA to review its regulatory frameworks and to provide appropriate regulatory support to firms.

With this, EMA seeks feedback from the public on the planned regulatory sandbox. It will be accepting comments until July 27.

Click here to see EMA's consultation paper.