Singapore, 8 March 2022 – The National Environment Agency (NEA) will enhance the grant support cap for energy efficient technologies under the Energy Efficiency Fund (E2F). The support cap will be raised from the current 50 per cent to 70 per cent of qualifying costs per project from 1 April 2022. This will further lower the barrier for manufacturing companies, including SMEs, to adopt energy efficient measures, which will help reduce their energy costs and carbon emissions. The grant application and disbursement process for the E2F will be simplified to help applicants save both time and costs. NEA will also work with the Singapore Institute of Technology (SIT) to develop the next phase of the Energy Efficiency Technology Centre (EETC), which offers low-cost energy assessments for SMEs. These measures will support manufacturing SMEs to identify and invest in energy efficiency projects, and to prepare for a low-carbon future.
2 NEA administers the E2F which was launched in April 2017. The E2F supports companies in the industrial sector, including small- and medium-sized enterprises (SMEs), to improve energy efficiency. The E2F supports various energy efficiency and low carbon initiatives, such as investing in energy efficient equipment or technologies, energy management information systems, water-cooled chillers using low-global warming potential refrigerant, energy assessments and resource efficient design of new facilities. Currently, the E2F grant scheme co-funds up to 50 per cent of the qualifying cost of such projects.
3 As of January 2022, the E2F has supported 27 energy efficient technologies projects. These include retrofits of LED lighting, high efficiency air-conditioning systems, variable speed air compressors and boiler systems. These projects have achieved an estimated annual carbon abatement of around 1,600 tonnes, which is equivalent to taking about 500 cars off the road.
Increased E2F Grant Support for Adoption of Energy Efficient Technologies
4 In order to encourage a higher take-up of the grant, NEA will increase the maximum grant support cap for adoption of energy efficient technologies, currently at 50 per cent of the qualifying costs, to 70 per cent of the qualifying costs. The grants awarded to projects will vary, based on the carbon abatement achieved. Projects that achieve higher carbon abatement are eligible for higher grant support. E2F applications received by NEA from 1 April 2022 will be eligible for this increased support cap. The industry is encouraged to take advantage of this higher support and invest early in energy efficient technologies.
Simplifying Grant Application and Disbursement Process
5 NEA is also making it simpler for companies to utilise the E2F to save them both time and cost. The measurement and verification of energy savings will be streamlined, while grant application and disbursement processes for standard retrofits projects involving LED lighting or small energy efficient air-conditioners will be simplified.
6 The enhancements will take effect from 1 April 2022. Please refer to the Annex for more details on the enhanced E2F grant.
Affordable Energy Assessments with the Energy Efficiency Technology Centre (EETC)
7 Companies starting out on their energy efficiency journeys are encouraged to tap on the affordable energy assessments offered by the EETC, a collaboration between NEA and the Singapore Institute of Technology (SIT) since 2020. The energy assessments will help companies establish an accurate picture of their current energy profile, allowing them to make informed decisions on the measures they could invest in to improve their energy efficiency.
8 Over and above energy assessments, the EETC is also developing Singapore’s workforce – training a pipeline of engineering students in industrial energy efficiency, and upskilling existing engineers or energy efficiency practitioners. NEA will be partnering SIT to develop the next phase of the EETC to develop manpower capabilities in energy efficiency as Singapore transits to a low-carbon economy. Enhancements to the EETC will include setting up a training-and-simulation centre to provide a facility for learners to learn and practise their craft in a controlled and safe environment, while replicating real-world conditions. More details will be announced when ready.
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Details on the Enhanced Energy Efficiency Fund for Energy Efficient Technologies
Encourage manufacturing companies, particularly SMEs, to invest in energy efficient equipment or technologies
Co-funding of up to 70 per cent of the qualifying costs which include:
- External manpower
- Equipment or technology
- Professional services
Singapore GST is excluded
Disbursement requests must be audited by an external Certified Public Accountant (CPA) appointed by the company if the grant amount is more than $100,000. All costs incurred for engaging the CPA shall be borne by the company.
Grant Eligibility Criteria
All Singapore-registered owners or operators of existing or proposed manufacturing facilities (i.e. SSIC code from 10XXX to 32XXX) with group annual sales turnover of less than S$500 million. The facility where the project will be implemented must be sited and operating in Singapore.
Project Eligibility Criteria
The project must involve installation and use of energy efficient equipment or technologies with proven track record of energy savings in an industrial facility. The project must result in measurable and verifiable energy savings.
Examples of Eligible Projects
(Efficacy of at least 100 lumens/watt)
Air-Conditioners, including Variable Refrigerant Flow (VRF) systems
(Listed as 4/5 ticks under NEA’s Energy Labelling Scheme)
(Registered as IE4 and above under NEA’s Minimum Energy Performance Standard)
Compressed Air System
Chilled Water System
Air Handling Units
Furnaces and Ovens
Heat Recovery System
Measurement and verification (M&V) requirement
M&V requirement waived for motor, lighting (excluding lighting controls), and air-conditioner (including variable refrigerant flow system) retrofit projects.
For all other projects, applicants must submit an M&V Plan and an M&V report before and after project implementation respectively. Details include:
- M&V methodology to measure and verify the realised carbon abatement after implementation;
- Baseline and post-implementation energy performance measurements; and
- Carbon abatement calculations.
A facility-level M&V approach* can be considered when the project(s) implemented are expected to reduce facility energy consumption by at least 10 per cent of the type of consumed energy (e.g. electricity). For example, a company could implement multiple projects on separate systems that collectively yield a significant amount of energy savings.
*NEA will assess on a case-by-case basis if a system-level M&V would be appropriate.
 Global Warming Potential (GWP) is a measure of the warming effect of a gas relative to the warming effect of an equivalent mass of CO2 usually over a 100-year time horizon
 Audit by an external CPA will be waived for grant amount not exceeding $100,000.