NEA to Launch the Energy Efficiency Fund (E2F) with Greater Emphasis on Improving Energy Efficiency Among Manufacturing SMEs

SMEs can receive co-funding of up to 30 per cent of their investments in energy efficient technologies

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^[1] under the Paris Agreement on climate change.

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.

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^[2]. 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.

For more details on the E2F, please refer to Annex B or visit NEA's website here.

Annex C – Components supported under E2F at a glance

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[1] Under the Paris Agreement on climate change, Singapore has formalised its pledge to reduce its emissions intensity* by 36 per cent 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.

Source: National Environment Agency