Energy Efficiency

Industrial Sector

The industry sector is the largest energy-consuming sector in Singapore and hence there is significant potential for energy savings through better and sustained energy management. Better energy management leads to improvement in energy efficiency, which minimises energy wastages, cuts energy costs and helps companies reduce their bottom lines. 

  • Energy Conservation Act (ECA)

The ECA was enacted in June 2012, and the Energy Conservation (Energy Management Practices) Regulations came into force on 22 April 2013. Through the ECA, mandatory energy management practices were introduced, aiming to focus management attention on proper energy management, as well as to level up laggards that manage energy use inadequately. 

In June 2017, the ECA was enhanced to stipulate more energy management practices as part of Singapore's efforts to achieve its pledge under the Paris Agreement on climate change to reduce emission intensity by 36% from 2005 levels by 2030, and to stabilise emissions with the aim of peaking around 2030. 

The enhancements include strengthening the measurement and reporting requirements for greenhouse gas emissions, requiring companies to implement energy management system,  undertake regular energy efficiency opportunity assessments or implement energy performance monitoring, and introducing minimum energy efficiency standards for common industrial equipment and systems.

Find out more about the up-coming enhancements to the ECA.

1. News Release
2. Energy Conservation (Amendment) Act 2017

  • Mandatory Energy Management Practices for Existing Industrial Facilities

With effect from 22 April 2013, a corporation will be a registrable corporation under the ECA if it meets the following qualifications:

  1. It has operational control over a business activity which has attained the energy use threshold (54TJ of energy used per calendar year) in at least 2 out of the 3 preceding calendar years; and

  2. The business activity is carried out at a single site and is attributable to one of the following sectors:
  • manufacturing and manufacturing-related services;
  • supply of electricity, gas, steam, compressed air and chilled water for air-conditioning; and
  • water supply and sewage and waste management.

Once registered, corporations will be required to implement the following energy management practices:

  1. appoint an energy manager;
  2. monitor and report energy use and greenhouse gas emissions annually; and
  3. submit energy efficiency improvement plans annually.

Click here to find out more.

Useful Documents and Tools

  1. Industry Briefing on the Mandatory Energy Management Requirements (25 & 26 March 2013) [PDF, 1.23 MB]
  2. Mandatory Energy Management Requirements Brochure [PDF, 1.04 MB]
  3. Energy Consumption Calculator: Assess whether the Annual Energy Consumption of a Company exceeds 54 TJ [XLS, 79.5 KB]
  4. Step-by-step Guide to Registering with NEA via the EDMA portal [PDF, 2.95 MB]
  5. FAQ
  
  • Registration and Submission Portal

The online portal facilitates registration of companies and submission of energy use reports and energy efficiency improvement plans as required under the ECA. Companies who are under the ambit of the Public Utilities (Water Supply) Regulations can use the same portal to submit notifications and water efficiency management plans to the Public Utilities Board.

  • Mandatory Energy Management Practices for New Industrial Facilities and Major Expansions

With effect from 1 October 2018, owners of New Ventures (new industrial facilities and major expansions of existing facilities) with an estimated Annual Energy Consumption (AEC) ≥ 54TJ must review the facility design for energy efficiency and develop economically feasible energy efficiency opportunities, by conducting an energy efficiency opportunities assessment (EEOA) and submitting the EEOA report.

An owner of a New Venture is also advised to plan for and install meters and instruments at energy-consuming systems that account for at least 80% of the New Venture facility’s annual energy consumption.

Click here to find out more.

  • Mandatory Energy Management Practices for Registered Corporations (RCs)

With effect from 1 January 2020, a registered corporation under the ECA must, for each relevant business activity under its operational control, conduct an Energy Efficiency Opportunities Assessment (EEOA) for the relevant business activity, and submit an assessment report endorsed by a certified EEO assessor to NEA before the expiry of their respective six-year assessment period.

The EEOA shall cover:

  1. Energy Consuming Systems (ECSs ) consuming fuel or energy commodities totalling at least 80% of the total energy consumption of the business activity; and
  2. Other ECSs consuming energy output from systems identified in (A), either directly or indirectly.

In the identification of ECSs that make up at least 80% of the total energy consumption, RCs shall make use of the data acquired during a chosen reference period of 12 consecutive months within the six-year assessment period.

Click here to find out more.

MEES for water-cooled chilled water systems was introduced as part of the National Environment Agency’s (NEA) on-going efforts to improve energy efficiency in Singapore industry. 

With effect from 1 December 2020, water-cooled chilled water systems in new industrial facilities (NIF) must conform to MEES requirements.

With effect from 1 December 2025, MEES requirements is extended to existing energy intensive facilities registered under the Energy Conservation Act and other existing industrial facilities. 

Click here to find out more

The introduction of MEPS for common industrial equipment and systems will lead to the phase out of inefficient models from the market and catalyse the transformation of the market towards more efficient models. Besides enjoying life-cycle cost savings from lower energy consumption, companies will also reduce their carbon footprint.


  • Three-phase 50 Hz induction motors

With effect from 1 October 2018, single speed, three-phase 50 Hz induction motors must have a minimum energy efficiency level of IE3.

  • Three-phase Variable Refrigerant Flow (VRF) air-conditioners

With effect from 1 April 2021, all three-phase VRF air-conditioners must comply with MELS and MEPS.  

Click here to find out more.

  • Energy Efficiency Grant (EEG)

The EEG aims to support businesses in their sustainability journey by co-funding investment in energy efficient (EE) equipment.

Click here to find out more about the EEG.

  • Resource Efficiency Grant for Emissions (REG(E))

EDB’s Resource Efficiency Grant for Emissions (REG(E)) supports manufacturing facilities and data centres to be more energy efficient and improve competitiveness. Grant support for REG(E) will correspond to the amount of carbon abatement, up to the maximum cap of 50% of qualifying costs.

The EENP is a voluntary partnership programme to support companies in their energy efficiency efforts through learning network activities, energy efficiency-related resources, incentives and recognition.

Join the EENP to enjoy discounts on training programmes and workshops on energy efficiency and energy management.

An ESCO is a company dedicated to provision of energy efficient technology and services including financing, design, implementation and management of projects.

Find out more about ESCO Accreditation Scheme and the list of accredited ESCOs here.

The Energy Efficiency Promotion Centre (EEPC) serves as a convenient one-stop centre for providing industrial energy efficiency related resources.  Companies may contact EEPC for assistance on the mandatory energy management requirements under the Energy Conservation Act, energy efficiency investments, information on energy efficiency measures, available incentives, energy efficiency training, or to link up with knowledge partners.

EEPC contacts:
Email: nea_eepc@nea.gov.sg

7 ENERGY CONSERVATION TIPS FOR BUSINESSES

Tip 1: Practise simple energy saving tips for buildings

i. Air-con

a. Set air-conditioning temperatures to 25°C or higher, and ensure units are serviced regularly to maintain efficiency. Each degree raised reduces energy needs by around 10%.

b. Install sensors, timers or smart controls on air-conditioning systems to optimise electricity usage, particularly when spaces are not in use.

c. Practise hybrid cooling. Switch to a fan after using air-conditioning for a short while to maintain comfort, while saving energy.

ii. Lighting

a. Switch to LED lighting throughout the building, including common areas, stairwells, and car parks.

b. Install occupancy and motion sensors in meeting rooms, common areas, and car parks to automatically switch off or dim lighting when spaces are not in use.

iii. Others

a. Opt for energy-efficient appliances with higher tick ratings to reduce electricity consumption.

b. Devices like TVs, routers, and computers on “standby” continue to consume power when plugged in. Switching off at the power socket avoids unnecessary energy use.

c. Set lifts and escalators to energy-saving mode during off-peak hours, and consider switching off escalators when not in use.

d. Implement green leases to align landlords and tenants on shared energy-saving goals.

Tip 2: Optimise processes to maximise energy savings

i. Optimising operational processes such as upgrading to energy-efficient equipment, fine-tuning operating parameters and production schedules, and deploying real-time monitoring systems can reduce energy consumption while boosting productivity and cost savings.

ii. Where relevant, facilities can explore waste heat recovery solutions, ensure proper insulation, and perform regular equipment maintenance to minimise unnecessary energy losses.

iii. When procuring new equipment and making capital investment decisions, companies should factor in energy performance and life-cycle costs including energy consumption, maintenance, and operational costs to identify more energy-efficient options that deliver greater long-term savings.

 Tip 3: Strengthen your in-house energy management expertise

i. Building in-house energy management capabilities supports implementation of energy efficiency improvement measures.

a. Companies can develop this expertise by sending staff for energy management training at local institutes such as the new Energy Efficiency Training Facility (EETF), launched in Feb 2026 by the Energy Efficiency Technology Centre (EETC) of Singapore Institute of Technology.

b. The EETF is intended to serve the practical training needs of various initiatives which includes the Energy Efficiency Upskilling Programme under the EETC and Singapore Certified Energy Manager Programme, helping companies develop a pipeline of local energy management talent and strengthen their energy efficiency capabilities.

ii. In addition to training, companies are encouraged to establish comprehensive energy management systems and policies to promote staff participation and a culture of ongoing improvement. Providing training and raising awareness empower employees to identify and pursue energy-saving opportunities in their day-to-day operational roles.

iii. Companies can also set clear energy performance indicators with quantified baselines and targets, so that efficiency and progress are tracked and further reductions in usage can be achieved over time.

Tip 4: Understand your energy use with an energy audit

i. The first step to conserving energy and improving energy efficiency is understanding current energy use patterns. Energy-intensive facilities, such as buildings and industrial complexes, can conduct energy audits to systematically identify opportunities to enhance energy efficiency, reduce energy consumption and lower electricity costs.

ii. Regular energy audits or energy efficiency opportunities assessments help facilities identify areas of energy wastage and uncover opportunities for both immediate and long-term savings. These audits allow for a systematic review of energy usage, helping industrial facilities to target inefficiencies and prioritise corrective actions.

iii. How businesses can conduct energy audits

Tip 5: Invest in easily accessible low-carbon solutions

i. Businesses and industries can tap on accessible and financially attractive low-carbon solutions like solar panels to reduce energy consumption.

a. The upfront cost of installing solar panels has decreased significantly in recent years with payback periods that could be as short as 5 years, relative to the general lifespan of a solar panel which is around 20 years. There are also solar installers who offer solar leasing or rent-to-own schemes that allow building owners to enjoy the benefits of solarisation, with little or no upfront cost. Against the backdrop of rising energy prices, this makes the economics of installing solar panels increasingly favourable and can help to cut down on purchased electricity.

b. An example of a company leading the way in the adoption of renewables is MSD. Between 2021 and 2024, MSD (Singapore branch) quadrupled their energy savings from 2.27 GWh to 9.50 GWh. This is in part due to the adoption of solar energy system deployment which led to 2,163 tCO2e abatement per year.  

ii. Alternative Cooling Technologies (ACTs) are energy-efficient methods of cooling indoor spaces that use less electricity. Compared to conventional air-conditioning and mechanical ventilation systems, ACTs offer up to 50% energy savings while maintaining the same level of thermal comfort and have been adopted in several developments.

a. Buildings adopting commercially viable ACTs can expect a payback period of approximately 4 to 10 years, along with lower maintenance costs as they eliminate the need to maintain air-side equipment. Commonly adopted ACTs include Hybrid Cooling, Passive Displacement Cooling, Radiant Cooling, Active Chilled Beam, and Mixed-Mode Ventilation. To find out more and explore suitable options for your building, visit the ACT webpage.

Tip 6: Tap on funding support for energy efficiency projects/energy-efficient equipment

i. Energy Efficiency Grant (EEG). The Government will expand the EEG (Base Tier) to all sectors, and has extended it for another year up to 31 Mar 2028 to further encourage adoption of more energy efficient appliances and equipment in light of the Middle East situation.

a. Companies can also apply to the EEG (Advanced Tier) which is designed to support businesses that wish to make larger investments in energy-efficient projects that can demonstrate energy savings above 350t lifetime carbon abatement. The EEG (Advanced tier) is applicable to specific sectors including Construction and Manufacturing. Refer to this link for more information on the EEG.

ii. Resource Efficiency Grant for Emissions (REG(E)). Manufacturing facilities and data centres can also tap on REG(E) to support their decarbonisation and emissions reduction projects.

a. An example of a company which was awarded REG(E) is Micron. Since 2021, Micron Singapore has achieved >150 GWh in energy savings and reduced >200,000 MT CO2e in direct emissions. This was due to the installation of advanced Hydrofluoroolefins chiller systems with Chiller Plant Optimisation System which garnered > 33 GWh in energy savings and >50,000 tCO2e reduction in direct emissions. Micron also set up the Catalytic central greenhouse gas (GHG) abatement system which removed 95% of fluorinated GHG and saw a 90% fuel consumption reduction compared to regular abatement technology.

iii. The Green Mark Incentive Scheme for Existing Buildings 2.0 (GMIS-EB 2.0) supports building owners in undertaking energy efficiency retrofits to reduce their buildings' energy consumption. Some examples of such works from past applicants include upgrading to more energy-efficient air-conditioning and lighting systems, installing solar photovoltaic (PV) systems, or deploying energy management systems to optimise overall energy consumption. The funding quantum is based on the carbon abated from the retrofit works and tiered according to the Green Mark certification level achieved.

Tip 7: Rinse and Repeat – We can all play our part to conserve energy.

i. As energy efficient technology and know-how develop and change over time, it is important for companies to keep abreast of the latest energy efficiency developments/technologies, continue to uncover energy efficiency opportunities, learn best practices from each other, and implement energy optimisation measures.