SMEs can receive co-funding of up to 30 per cent of their investments in energy efficient technologies
Singapore, 31 March 2017 – The National Environment Agency (NEA) today unveiled details of its Energy Efficiency Fund (E2F) to help industrial companies improve energy efficiency. The E2F which will be rolled out on 3 April, consolidates existing energy efficiency incentive schemes administered by NEA and supports a wide range of energy efficiency efforts, such as energy assessments, energy efficient design of new facilities and energy efficiency investments. The grant application process has been streamlined so that companies implementing energy efficiency improvements identified from energy assessments or energy efficient design reviews can apply for funding support with minimal paperwork. Improving the energy efficiency of the industrial sector – the largest consumer of energy that accounts for 60 per cent of Singapore’s greenhouse gas emissions – is one of the key strategies to reduce emissions and fulfil Singapore’s pledge under the Paris Agreement on climate change.
2 The objective of the E2F is to support industrial companies to design resource efficient facilities, conduct energy assessments to identify energy efficiency measures, and adopt energy efficient equipment or technologies. The implementation of energy efficiency projects and good energy management practices reduces energy consumption and operating costs for companies and has a direct impact on economic profitability and business results.
3 NEA will place greater emphasis on improving manufacturing SMEs’ energy efficiency efforts with the support of the Singapore Economic Development Board. NEA has pre-identified a list of energy efficiency retrofit projects for which the application and processing procedures are simplified. Please refer to Annex A for further details. For example, a manufacturing SME that chooses to replace its existing motor with an energy efficient one only needs to submit the motor energy performance test report issued by an accredited laboratory to NEA for verification of energy savings. Selecting an IE3 motor instead of an IE1 motor would result in energy cost savings per annum ranging from $130 to $4000 and the additional investment can be recovered within 1.2 to 2.4 years. NEA will co-fund up to 30 per cent of the motor replacement project’s qualifying cost. Manufacturing companies can also consider more complex energy efficiency improvement projects, such as high efficiency heating and cooling systems.
4 For more details on the E2F, please refer to Annex B or visit the e2Singapore website at www.e2singapore.gov.sg .
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[1] Under the Paris Agreement on climate change, Singapore has formalised its pledge to reduce its emissions intensity* by 36% from 2005 levels by 2030 and to stabilise greenhouse gas (GHG) emissions with the aim of peaking around 2030. *Emissions Intensity refers to GHG emissions per dollar of GDP, measured in CO2-equivalent per dollar.
[2] Based on a range of 0.75kW to 185kW motors, 24 hours of daily usage and an electricity tariff rate of $0.15/kWh. The upfront cost includes the cost of 1 motor used in normal operation and the cost of a standby motor for redundancy purpose.
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ANNEX A
Infographic Summarising the Energy Efficiency Fund (E2F)
ANNEX B
Factsheet on the Energy Efficiency Fund (E2F)
When
E2F will be launched on 3 April 2017.
What it is
The E2F consolidates existing NEA-administered industrial energy efficiency incentive schemes to improve energy efficiency in the industrial sector. It is designed to support the industrial sector to be more energy efficient through design for efficiency, energy assessment, and adoption of more efficient technologies. At the design stage, E2F provides up to 50% co-funding for industrial companies to review the design of their new facilities to integrate energy and resource efficiency improvements.
Companies are encouraged to carry out periodic energy assessments to understand their energy consumption patterns and identify potential energy improvement opportunities. E2F supports these energy assessments at up to 50% co-funding. For companies which would like to replace their existing equipment with more energy efficient ones, up to 30% of the project costs could be supported under E2F.
Objectives
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To encourage industrial facility owners to integrate energy and resource efficiency improvements into their development plans early in the design stage.
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To encourage industrial facility owners to carry out detailed energy assessment on their facilities’ energy consumption and identify specific areas for energy improvement.
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To encourage manufacturing facility owners to invest in energy efficient equipment or technologies.
Why
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Singapore’s national target is to reduce our emissions intensity by 36% from 2005 levels by 2030, and to stabilise greenhouse gas (GHG) emissions with the aim of peaking around 2030.
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Industrial sector accounts for the lion’s share of greenhouse gas emissions in Singapore.
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Energy efficiency one of the key strategies to mitigate the effects of climate change.
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Data collected shows that large industrial energy consumers in Singapore companies here achieved an annual energy efficiency improvement rate of 0.6% in 2015 and 0.4% in 2014. There is room for improvement. We require the energy efficiency improvement rates to be between 1-2% annually, similar to what leading countries like Belgium and the Netherlands have achieved, to fulfil Singapore’s pledge under the Paris Agreement.
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Industrial sector, including SMEs, face challenges in upgrading the energy performance of their equipment. These challenges include limitation in financial and technical capability, and lack of prioritisation for energy efficiency in many companies.
Key benefits
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Offset part of the upfront costs of designing new facilities efficiently, conducting energy assessments and implementing energy efficiency retrofits for owners of industrial / manufacturing facilities.
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Improve energy efficiency, which in turn, improve competitiveness through reduction in energy consumption and operating costs for the industrial companies.
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Companies can apply to the consolidated E2F, without having to navigate through different incentive schemes to find the correct one that suits their needs.
Details of E2F
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Components supportableunder E2F
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Eligibility of companies
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Grant quantum
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Qualifying costs
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Resource efficient design
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Up to 50%,
capped at $600,000
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Energy assessments
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Up to 50%,
capped at $200,000
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Energy efficient equipment or technologies
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Up to 30%, no cap
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Manpower
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Equipment and materials
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Professional services
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Singapore GST is excluded.
For more information on the E2F, please visit: www.e2singapore.gov.sg.
ANNEX C
Components Supported Under E2F at a Glance
1) Resource Efficient Design
Companies setting up new industrial facilities in Singapore are encouraged to integrate energy and other resource (e.g. water, gas) efficiency improvements into the design of the facility. This is the most cost effective approach to improve the energy performance of facilities. By capitalising on system design synergies, efficiently designed systems can drive capital cost savings from reduced capacity needs in utility systems, as well as lower energy, operating and maintenance costs in the operation phase. Design workshops are focused and collaborative efforts to design facilities to be energy efficient. The E2F co-funds up to 50% of the cost of a design workshop or $600,000 whichever is lower.
2) Energy Assessment
Companies are encouraged to carry out energy audits on operating industrial facilities to identify and quantify areas where energy savings can be made and estimate the amount of savings achievable. These may include improvements to facility design, operation and management. Energy assessments involve detailed assessments of a facility’s energy consumption and development of EE improvement plans. The E2F co-funds up to 50% of the costs of such energy audits, subject to a cap of $200,000.
3) Energy Efficient Equipment or Technologies
Companies operating new and existing manufacturing facilities are encouraged to invest in energy efficient equipment or technologies. The E2F co-funds up to 30% of the investment cost of energy efficient equipment or technologies.