Singapore, 8 March 2017 – The National Environment Agency (NEA) today announced several enhancements to the Energy Conservation Act (ECA)[1]. These enhancements, slated to come into effect from 2018, include strengthening the measurement and reporting requirements for greenhouse gas emissions, requiring companies to undertake regular energy efficiency opportunity assessments and introducing minimum energy performance standards for common industrial equipment and systems. These new measures will help Singapore to achieve its pledge under the Paris Agreement on climate change to reduce emissions intensity[2] by 36% from 2005 levels by 2030, and to stabilise greenhouse gas (GHG) emissions with the aim of peaking around 2030.

2          The industry sector is the largest energy consumer and contributor of greenhouse gas (GHG) emissions in Singapore – accounting for more than half of the total. Our companies achieved an energy efficiency (EE) improvement rate of only 0.4% in 2014 and 0.6% in 2015, as compared to the 1-2% per annum achieved in leading countries such as Belgium and the Netherlands. We will need to achieve these higher levels of energy efficiency in order to meet our Paris obligations - there is thus room for our industries to become more energy and carbon efficient.

Mandatory GHG measurement and reporting (M&R) requirements for top industrial emitters

3          Under the ECA, registered companies are required to report energy data and non-energy data related to GHG emissions. The ECA currently does not require companies to submit their data based on an approved monitoring plan, nor to adopt specific methodologies in their computations. There is room to improve the quality control and quality assurance processes of our M&R system to ensure that the standards and hence data collected is aligned with international standards.

4          The ECA enhancements will thus ensure a more robust and rigorous measurement and reporting requirement of GHG emissions accounting. Larger industrial facilities will be required to submit a monitoring plan for NEA’s approval and an enhanced GHG emissions report based on the approved monitoring plan. In addition, facilities now also have to adopt specified methodologies, in line with international best practices and internationally recognized protocols such as the World Resources Institute’s Greenhouse Gas (GHG) Protocol, International Standards Organization (ISO) and the Intergovernmental Panel on Climate Change (IPCC) guidelines. Robust GHG emissions data will form the cornerstone of a carbon pricing regime.

Enhanced energy efficiency measures for new and existing facilities and major expansions

5          Companies investing in new industrial facilities and major expansions will be required to review their new facility design for energy efficiency and also measure and report the energy performance of key energy-consuming systems[3].  Industrial equipment have very long lifespan and hence, it is important to introduce these measures upfront before the facility has been built. Through these measures, companies will potentially benefit from lower capital expenditure at the outset and reduced operating and maintenance costs over time from best practices such as right-sizing of facilities.

6          To encourage companies to reduce their energy consumption, companies with existing facilities will be required to strengthen their energy management practices by implementing a structured energy management system. Studies have shown that implementing structured energy management systems in companies can result in energy savings of at least 10% to 15% in the first few years. Companies will also be required to conduct energy efficiency opportunities assessments (EEOAs) periodically, to identify technically and economically feasible energy efficiency improvement measures.

Minimum Energy Performance Standards for common industrial equipment and systems

7          To phase out lower-efficiency equipment models and transform the market towards more efficient equipment, NEA will be introducing Minimum Energy Performance Standards (MEPS) for common industrial equipment and systems.

8          Based on energy performance reports submitted by companies under the ECA, many common industrial equipment and systems are operating at low efficiencies. With the introduction of MEPS, companies will enjoy lower energy consumption and hence life-cycle costs. NEA will first introduce MEPS for motors from 2018, and progressively extend the coverage to other industrial equipment and systems.

Energy Efficiency Fund (E2F)

9          NEA will be consolidating its existing incentive schemes and grants to promote the adoption of industrial energy efficiency measures into a single fund called the Energy Efficiency Fund (E2F). This fund will be redesigned to better support companies, including SMEs, to develop and implement measures to improve energy efficiency. More details on the E2F will be released by NEA in end-March 2017.

10        Details of the ECA enhancements are provided in Annex A.

For more information, please contact us at 1800-CALL NEA (1800-2255 632) or submit your enquiries electronically via the Online Feedback Form or myENV mobile application.

 

ANNEX A

ECA Enhanced Requirements

Mandatory GHG reporting for top industrial emitters

Enhanced energy efficiency measures for new and existing facilities and major expansions 

 

 

Minimum Energy Performance Standards (MEPS) for common industrial equipment and systems