CLIMATE CHANGE AND SINGAPORE
Energy Efficiency and Renewable Energy
Opportunities for Businesses
20 January 2015
This document was prepared by the National Climate Change Secretariat (NCCS), the
Building and Construction Authority (BCA), the Economic Development Board (EDB), the
Ministry of the Environment and Water Resources (MEWR), the Ministry of Trade and
Industry (MTI), and the National Environment Agency (NEA), to invite public views on
addressing climate change and promoting green growth.
Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
Introduction
In 2010, the
Singapore’s overall
fossil fuel (primary
oriented economy,
overseas markets.
industrial sector and buildings sector contributed about 55% and 17% of
emissions respectively.1 The emissions are due to direct combustion of
emissions) and electricity use (secondary emissions). As an exportmuch of the energy used by our industry is to make products for
2
Singapore’s national energy policy framework seeks to balance economic
competitiveness, energy security, and environmental sustainability considerations. In
addition to pricing energy right and thereby encouraging conservation through price signals,
improving energy efficiency is also one of our key strategies to reduce our energy and
carbon footprint. However, energy efficiency measures are sometimes not implemented due
to market imperfections such as a lack of information and higher upfront costs.
3
Singapore is already relatively energy and carbon efficient – our carbon emissions
per GDP is lower than most countries.2 But there is scope to further enhance energy
efficiency through advanced technologies and continued innovation. Energy efficiency also
brings about benefits such as cost savings and energy security, in addition to emission
reductions.
Energy Efficiency Opportunities
4
Industry. Singapore’s manufacturing sector contributes close to 20% of Singapore’s
gross domestic product. This sector accounts for more than half of Singapore’s energy
demand due to energy-intensive activities such as oil refining, petrochemicals production,
and pharmaceutical and semiconductor manufacturing.
5
According to the Intergovernmental Panel on Climate Change (IPCC)’s Fifth
Assessment Report (AR5), a scenario with the global application of wide-scale upgrading,
replacement and deployment of best-available technology could reduce energy intensity3
from current levels by 25% across the industrial sector. Emerging technologies such as
improved waste heat utilisation may further reduce energy intensity by up to 20% before
technological limits are reached.4
6
Discussions with companies have identified energy efficiency improvement
possibilities for manufacturing such as advanced control systems for automation and
process control, better heat recovery/waste heat utilisation, and premium class efficiency
motors. However, companies have also highlighted various considerations. For example,
retrofitting and equipment upgrades may not be immediately possible due to capital or
operational constraints. One suggestion was thus to improve access to capital financing.
1
The buildings sector refers to all non-residential buildings e.g. offices, retail spaces, mixed-use industrial.
th
Singapore is ranked 113 out of 140 countries, among the best performing 20% globally. Source: 2014 Key
World Energy Statistics report by the International Energy Agency (IEA).
3
Energy intensity refers to energy consumed per dollar GDP.
4
Source: IPCC AR5 Working Group III.
2
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
7
Currently, the Grant for Energy Efficiency Technologies (GREET) aims to encourage
businesses to invest in energy efficient equipment or technologies. Companies can apply for
funding of up to 20% of the qualifying costs, capped at $4 million per project. In 2014, SDCL5
was appointed to establish a private sector-led pilot financing program for up to S$200
million to fund energy efficiency projects.
8
Other government schemes, such as Design for Efficiency (DfE) and Energy
Efficiency Improvement Assistance Scheme (EASe), help companies identify energy
efficiency opportunities at the design and operational phase respectively (e.g. through
energy audits).6 Various government agencies have also introduced capability building
schemes to raise or develop competencies in energy management, such as the Singapore
Certified Energy Manager (SCEM) programme, the Energy Services Companies (ESCOs)
Accreditation scheme, and the Energy Efficiency National Partnership (EENP)7.
9
The Energy Conservation Act (ECA), which came into force in 2012, will also help
identify areas of improvement and enhance understanding of energy performance across
different industries and companies over time. Under the ECA, energy-intensive users in the
industrial and transport sectors are required to appoint at least one energy manager, report
energy use and emissions, and submit energy efficiency improvement plans annually.
10
In July 2014, SPRING announced that $17 million had been set aside to help some
300 SMEs achieve at least 10% energy savings over three years. These savings will be
achieved through audits, energy monitoring systems, energy efficiency project
implementation, and capability development. Management-level and technical training
courses provided by the Sustainable Energy Association of Singapore also support SMEs
with the knowledge and tools to finance and deploy energy efficiency technologies.
11
In addition to energy efficiency, enhancing carbon efficiency of the industrial sector is
also important in managing emissions. Possible measures to achieve this include switching
to using cleaner fuels for energy demand (e.g. using natural gas for boilers instead of fuel
oil), and reducing non-CO28 greenhouse gas (GHG) emissions from industrial processes.
Some of these measures may incur costs for businesses, and the impacts will need to be
studied and considered.
12
Buildings. The buildings sector accounted for about 37% of Singapore’s total
electricity demand in 20139. Studies have found that using more efficient technologies, good
design practices, and behavioural changes could translate into large energy savings in
5
Sustainable Development Capital LLP (SDCL) is a financial and investment advisory firm. It finances
environmental and social infrastructure assets and services.
6
Information on government incentives and schemes for energy efficiency can be found at:
http://www.e2singapore.gov.sg/
7
The EENP organises regular workshops and conferences to facilitate learning and sharing of EE solutions and
best practices, and also gives out awards annually to recognise companies with good energy management
systems, good EE projects and outstanding energy managers.
8
Non-CO2 emissions from the industrial processes accounted for about 2.4% of Singapore’s total emissions in
2010. Source: Singapore’s First Biennial Update Report
9
Source: Singapore Energy Statistics (SES) 2014
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
buildings. These efficiency measures typically achieve pay back well within the building’s
lifetime.10 Specific opportunities to reduce energy use include improved building design
practices, more efficient cooling, lighting technologies and appliances, and the adoption of
small-scale renewables.11 The Buildings Energy Efficiency Roadmap, jointly developed by
BCA and Nanyang Technological University (NTU), found potential energy efficiency
improvements in Singapore due to new technology adoption of up to 40-60% in 2030
compared to ‘best-in-class’ buildings in 2013.
13
Discussions with building owners and relevant stakeholders have identified energy
efficiency opportunities in Singapore such as installing or retrofitting building management
and information systems (BMIS), high-efficiency air-conditioning & mechanical ventilation
(ACMV) systems, and improving thermal performance so that less energy is used for
cooling. There are also opportunities to reduce emissions from buildings through deploying
renewable energy on buildings. Some challenges to greater energy efficiency in buildings
include not fully utilising installed systems for energy management, and split incentives12
between building owners and tenants.
14
Singapore introduced the Green Mark (GM) scheme to promote environmentallyfriendly and energy efficiency buildings in January 2005. Since then, the number of green
buildings in Singapore has grown from 17 in the first year, to about 220013 in September
2014. This is shown in Fig 1.
10
Source: IPCC AR5 Working Group III
Source: New Climate Economy Report 2014
12
Different objectives as those responsible for paying energy bills (the tenant) may not be the same entity as
those making the capital investment decisions (the landlord or building owner)
13
This translates to about 63 million square meters of gross floor area, or 26% of total built-up area in Singapore.
11
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
Figure 1: Green Mark Building Projects in Singapore (Cumulative)
Number of
building projects
2500
58.4
45.6
2000
36.1
1500
22.9
1000
500
0
15.3
1.1
17
2.1
33
5.7
10.0
127
GFA
63.3 (million m2)
2195
2002
1556
1170
732
427
239
60.0
50.0
40.0
30.0
20.0
10.0
0.0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
(Sep
2014)
15
To accelerate the pace towards meeting the national target of ‘greening’ 80% of all
buildings by 2030, BCA has rolled out a comprehensive suite of initiatives and policies,
including the Green Mark Incentive Scheme (GMIS) for both new and existing Buildings, the
Green Mark Gross Floor Area (GM GFA) incentive scheme, and the Green Mark Incentive
Scheme for Existing Buildings and Premises (GMIS-EBP)14.15 The pilot Building Retrofit
Energy Efficiency Financing (BREEF) scheme was also introduced by BCA in 2011 to
facilitate financing16 for energy efficiency projects.
16
Since 2008, new buildings and existing buildings undergoing major retrofits have
been required by regulation to achieve minimum GM standards.17 In September 2014, the
inaugural Building Energy Benchmarking Report (BEBR) was published to spur stakeholders
at all levels to initiate and implement improvements in building energy efficiency. The BEBR
14
The $50 million GMIS-EBP was launched in September 2014, and is the first targeted initiative to engage small
and medium enterprises (SMEs) to improve energy efficiency standards of their buildings and premises. This
enables tenants and occupants to play a bigger role in Singapore’s green building movement.
15
More
information
on
the
Green
Mark
Incentive
Schemes
can
be
found
at:
http://www.bca.gov.sg/Professionals/Technology/technology.html
16
This financing is provided by participating financial institutions (PFIs). More information is available here:
http://www.bca.gov.sg/GreenMark/breef.html
17
These legislative requirements were expanded in 2012, mandating annual submission of building energy
consumption data for existing building owners, and achieving the minimum Green Mark (GM) standard whenever
building cooling systems were installed or replaced. To ensure that the building cooling systems continue to
operate efficiently, new and existing building owners are also required to carry out three-yearly energy audits
upon notice from the Commissioner of Building Control.
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
found that energy efficiency of buildings, measured by the Energy Utilisation Index (EUI),
improved by 5% between 2008 and 2013. This is shown in Fig 2.
Figure 2: Energy Utilisation Index Trend of Commercial Buildings
17
In addition, the government is playing an active role in greening public sector
buildings through the Public Sector Taking the Lead in Environmental Sustainability
(PSTLES)18 initiative. The PSTLES initiative, the suite of GM incentives provided, and the
requirement for Government Land Sales (GLS) in strategic growth areas to meet higher
prescribed Green Mark standards, are some of the key initiatives available to push the
boundaries of building performance beyond code requirements.
18
Within the buildings sector, data centres are significant consumers of energy19. As
Singapore’s data centre industry is expected to grow, it is important for data centres to be
energy efficient and sustainable. To achieve this, the BCA-IDA Green Mark for Data Centres
and the Green Data Centre Standard (SS564) were introduced. The Green Data Centres
technology roadmap, commissioned by IDA in 2014, identified several important measures
that will improve the energy sustainability of data centres in the future, such as reducing
energy required for cooling and improving energy management.
19
To promote greater innovation and development of green building and green data
centre solutions, the Government has committed $98 million to funding the Green Buildings
Innovation Cluster (GBIC) and the Green Data Centre Programme. The GBIC will provide a
18
2
Under the PSTLES initiative, all new public sector buildings (with more than 5,000 m of air conditioned area)
2
will obtain the GM Platinum rating while all existing public sector buildings (with more than 10,000 m of air
PLUS
conditioned area) will achieve at least GM Gold
rating by 2020.
19
In 2010, the total electrical energy usage of DCs was about 3.6% of Singapore’s total electricity consumption.
Electricity accounts for more than 50% of operating expenditure of a typical DC in Singapore. The Infocomm
Development Authority (IDA) estimates that a typical large data centre (DC) in Singapore consumes energy
equivalent to 10,000 households. Source: NEA DC Energy Efficiency Benchmarking Report 2012
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
platform to demonstrate promising building solutions and build capabilities in energy
efficiency. In addition, the Economic Development Board (EDB) has launched the PreProject Innovation Consortium initiative, which brings players from different parts of the
building industry ecosystem together during the design and planning stage for integrated
design and development of innovative green buildings solutions.
Renewable Energy Opportunities
20
Solar energy is currently the most economically and technically viable clean energy
source for Singapore. The government aims to raise the adoption of solar power in our
system to 350 Mega-Watt-peak (MWp) by 2020. This is about 5 per cent of 2020 peak
electricity demand, a significant increase from the 24 MWp of installed capacity in late 2014.
The emergence of solar leasing and other services in the private sector will further facilitate
the deployment of solar PV. For example, there is an online platform which functions as a
solar exchange marketplace to help potential buyers of solar PV systems estimate expected
installation costs and energy savings. In addition, information on solar PV systems,
meteorological information, and solar industry contacts can be found at the National Solar
Repository of Singapore.
21
Various companies and institutions across Singapore have installed solar PV
systems. One example is Keppel Seghers, which set up a 1 MWp PV system on a waste
water treatment plant to supply solar energy for water treatment. Another example is the
Singapore American School, which installed a 1MWp system that meets about 10%20 of the
school’s energy needs.
Figure 3: The Singapore American School’s 1 MWp Solar PV System
Source: Sunseap Leasing
20
Source: The Straits Times
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Energy Efficiency and Renewable Energy Opportunities for Businesses
20 January 2015
Questions
Energy Efficiency






What are the a) opportunities and benefits, b) challenges for your business/ your
company if there is greater national emphasis or support for energy efficiency?
What would it take for businesses/ buildings to accelerate development or
deployment of energy efficiency solutions? What are the key considerations?
Do you/ your business/ your company have the information to make better energy
management decisions? What needs to be done to get the information and how
can this information be made more accessible?
Will minimum energy efficiency standards for generic equipment such as motors,
cooling systems and compressor systems help facilitate your energy efficiency
initiatives? Why or why not?
[For financiers] What are the key issues/risks financial institutions face in
providing loans/financing for energy efficiency projects, and how can these issues
be addressed?
[For SMEs] Are there any specific barriers to energy efficiency for small and
medium enterprises?
Renewable Energy



What are some key considerations that influence whether you/ your business/
your company will harness solar PV in Singapore?
What would help accelerate take-up of clean energy in the industry and building
sectors?
[For financiers] What are the key issues/risks financial institutions face in
providing loans/financing for the purchase of solar PV panels? How can these
issues be addressed?
Other Feedback

Please share any other comments on increasing energy efficiency or raising
renewable energy deployment in the industry or buildings sector in Singapore.
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