Singapore to Improve Energy Efficiency of the Industry Sector

NEA introduces mandatory energy management requirements to reduce energy use and greenhouse gas emissions

In an effort to improve Singapore’s energy efficiency and competitiveness, the National Environment Agency (NEA) has introduced mandatory energy management requirements for large energy users in the industry sector. These requirements will come into effect on 22 April 2013 under the Energy Conservation Act (ECA).

The industry sector accounts for more than half of Singapore’s energy demand. In particular, the large energy users in this sector can play a major role in the national efforts to make Singapore more energy efficient.

The large energy users affected are those with business activities that consume more than 54 terajoules of energy [1] annually in at least two of the three preceding years and whose business activities are attributable to manufacturing and manufacturing-related services; supply of electricity, gas, steam, compressed air, and chilled water for air-conditioning; or water supply and sewage and waste management. (Please see Annex A for more details on key energy management requirements that are stipulated under the subsidiary legislation.)

Starting from 22 April 2013, these companies are required to register themselves with NEA and appoint one or more energy managers to monitor and manage their energy consumption. The companies are also required to report their energy consumption and provide information on processes resulting in greenhouse gas emissions, and submit energy efficiency improvement plans annually beginning in 2014. These requirements affect some 170 companies which operate around 200 large energy consuming premises. To ensure the feasibility and practicability of the detailed requirements, NEA has conducted one-to-one industry consultations and briefings for these companies since the beginning of last year.

NEA has also been working closely with the affected companies to assist them in building up their capabilities for compliance with the mandatory energy management requirements. This was done through capability-building programmes, incentive schemes and training on the use of the online reporting system. A one-stop Energy Efficiency Promotion Centre (EEPC) has also been set up to support companies in their efforts to comply with the requirements under the ECA. Companies can contact the EEPC at 67319871 or nea_eepc@nea.gov.sg. (Please see Annex B for more details on the programmes and schemes that were launched.)

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[1] In comparison, the average annual electricity consumption for a typical 4-room HDB household is about 4.550 MWh of electricity (Source: From SP Services Website, March 2012 to February 2013). 54 TJ is equivalent to the energy consumption of about 3,300 4-room HDB households.

ANNEX A

Details on Key Management Requirements

Registrable Corporations

A corporation is deemed to be a registrable corporation if it has operational control over a business activity which consumes 54 terajoules or more of energy per calendar year in at least two of the three preceding calendar years; and the business activity is carried out at a single site and is attributable to one of the following sectors:

a) manufacturing and manufacturing-related services;

b) supply of electricity, gas, steam, compressed air and chilled water for air-conditioning; and

c) water supply and sewage and waste management.

Such business activity is termed as ‘relevant business activity’ [2] under the subsidiary legislation of the Energy Conservation Act.

Corporations that meet these criteria have to register with NEA within 6 months of qualifying as a registrable corporation using a customised electronic service provided at http://www.nea.gov.sg. For corporations that are already deemed registrable when the Act comes into effect, registration has to be made within 6 months of commencement of the legislation, i.e. by 22 October 2013.

Appointment of Energy Manager

A registered corporation has to appoint from among its employees at least one energy manager, and notify NEA of the appointment of its first energy manager not later than 30 days after registration. With effect from 1 April 2014, all energy managers are required to hold —

• a) a Singapore Certified Energy Manager (Professional Level) certificate issued by the Institution of Engineers, Singapore; or

• b) such other qualification and experience which NEA deems to be substantially equivalent to the above Singapore Certified Energy Manager (Professional Level) certification.

If an energy manager vacates his appointment —

• a) the registered corporation must notify NEA via the electronic service provided at http://www.nea.gov.sg within 30 days after the vacation of the appointment; and

• b) if this energy manager is the only energy manager of the corporation, the corporation has to notify NEA of the appointment of a substitute energy manager within 90 days after the vacation of the appointment.

Periodic Reporting of Energy Use and Information on Processes Resulting in Greenhouse Gas Emissions

Starting from 2014, a registered corporation is required to submit an energy use report annually by 30th June of each year. The report shall cover each business activity under the operational control of the registered corporation and be made using the relevant form provided in the electronic service at http://www.nea.gov.sg.

The energy use report shall contain, in respect of each relevant business activity, the following main information relating to the corporation’s operation during the preceding calendar year, or part thereof for the first report:

• a) details of each type of fuel or energy commodity in the inventory of the corporation as at 1 January and 31 December of the calendar year;

• b) details of each type of fuel or energy commodity purchased, used or sold;

• c) details of each type of fuel or energy commodity produced;

• d) details of each energy-consuming system that is selected for reporting. The corporation should select the energy-consuming systems for reporting such that the aggregate energy consumption of these selected energy-consuming systems is equal or more than 80 per cent of the total energy consumption of the business activity;

• e) specific energy consumption [3] , for example energy consumption per quantity of product produced;

• f) reasons for increase or decrease in specific energy consumption compared to that reported in the previous year;

• g) information in respect of the processes or activities resulting in greenhouse gas emissions; and

• h) basic process diagram(s) showing the energy-consuming systems and the general process and energy flow.

For the other business activities that are not relevant business activities, corporations are to state the following in relation to the operation of all such business activities during the preceding calendar year, or part thereof for the first report:

• a) the estimated aggregate energy consumption as a percentage of the corporation’s total energy consumption;

• b) the estimated aggregate energy production as a percentage of the corporation’s total energy production; and

• c) the estimated aggregate greenhouse gas emissions as a percentage of the corporation’s total greenhouse gas emissions.

Energy Efficiency Improvement Plans

Starting from 2014, a registered corporation is required to submit an energy efficiency improvement plan by 30th June of each year, covering each business activity under the operational control of the registered corporation. The plan shall cover a period of not less than 1 year and not more than 5 years, and be made using the relevant form provided in the electronic service at http://www.nea.gov.sg.

The following information in respect of each relevant business activity is required:

• a) details of each energy efficiency measure to be implemented or completed such as projected reduction in energy consumption and estimated cost of implementation;

• b) update on the progress of energy efficiency measures described in the previous plan submitted; and

• c) results of each energy efficiency measure implemented before the end of the preceding year such as energy savings achieved, and a description of how such savings are measured and verified.

The plan shall include a general description of the energy efficiency measures to be implemented or completed in respect of the other business activities that are not relevant business activities.

For more details of the energy management requirements, please visit http://app2.nea.gov.sg/IndustrySector.aspx.

[2] “Relevant business activity” means a business activity under the operational control of the registered corporation that —

• (a) resulted in the corporation’s registration; or

• (b) would have qualified the corporation as a registrable corporation if it was not already so registered.

[3] “Specific energy consumption” means a measure of the energy consumption of the business activity, that is expressed:

• (a) by reference to a unit of production or service of the business activity; and

• (b) providing a metric (number) and a measure (production unit or unit relevant to the service).

ANNEX B

Programmes and Schemes Launched to Prepare Industry for ECA

NEA has been working closely with the stakeholders to help them build up their capabilities to prepare for the ECA, through capability-building programmes, incentive schemes, training on the use of the online reporting system and other initiatives. Below are some of the schemes and programmes NEA has initiated in partnership with the industry to achieve this goal.

• a) Energy Efficiency National Partnership (EENP) programme – The EENP is a platform to promote the adoption of energy management systems, inform and share good energy efficiency practices with companies through the EENP Learning Network and encourage employee participation in energy efficiency projects through the recognition of their efforts and achievements under the EENP Awards, a national recognition scheme. Key events of the EENP are the National Energy Efficiency Conference (NEEC) and the EENP Awards Ceremony. Last year, the second NEEC was held on 19 and 20 September 2012. On 18 September 2012, NEA organised the EENP Awards Ceremony.

• b) Singapore Certified Energy Manager (SCEM) programme and training grant – The SCEM programme offers a formal training and certification system in the area of energy management. The SCEM training grant covers about 80 per cent of the training cost of the SCEM Professional Level course.

• c) Energy Efficiency Improvement Assistance Scheme (EASe) – The EASe encourages companies in the manufacturing and building sectors to carry out detailed technical assessments of their energy consumption so as to identify potential areas for energy efficiency improvements. Under the EASe, NEA co-funds up to 50 per cent of the cost of such energy appraisals.

• d) Grant for Energy Efficient Technologies (GREET) – The GREET scheme is aimed at encouraging the uptake of energy efficient technologies and support energy efficiency retrofits, by providing a grant to offset part of the investment cost. Under the GREET, co-funding of up to 20 per cent of the qualifying costs is provided, capped at $4 million per project.

• e) Design for Efficiency Scheme (DfE) – The DfE encourages investors in facilities in Singapore to integrate energy and resource efficiency considerations into their development plans early in the design stage. Under the DfE, NEA co-funds 50 per cent of the fees of a design workshop.

• f) Training on Online Reporting System – NEA has developed an online reporting system to facilitate registration of companies and submission of energy use reports and energy efficiency improvement plans. Training sessions on the use of the online system has been conducted for companies to ensure that they are able to use the system effectively.

• g) Energy Efficiency Promotion Centre – To assist companies in their efforts to comply with the mandatory energy management requirements under the ECA, a one-stop Energy Efficiency Promotion Centre (EEPC) has been set up to meet companies’ needs for improving energy efficiency. The centre assists companies on matters relating to the mandatory energy management requirements, provides general guidance, information and related advice on energy efficiency investments and measures, and supports companies to undertake integrated design for new facilities. It helps companies identify service providers, industry energy professionals and energy efficiency experts whom they can engage to meet their specific energy needs and requirements. The centre also assists companies to apply for incentives and grants for their projects. If a capability gap in the industry is identified, it will bridge the gap through training and workshops. The EEPC forges partnerships with strategic knowledge partners to help companies integrate energy efficiency as a strategic management tool.

Source: National Environment Agency