Singapore increases energy efficiency and plans to engage new energy sources
Over the next decade, Singapore`s energy demand is expected to grow at a projected compounded annual growth rate of about 1.2 to 1.8 percent, to reach around 57,900 to 62,200 gigawatt hour (GWh) in 2027. The actual energy demand will vary depending on GDP and population growth rate.
Promoting more efficient use of energy is a key prong of Singapore`s energy strategy. It will reduce the carbon footprint and enhance Singapore’s energy security and economic competitiveness. The Government has thus adopted a mix of regulations, incentives, and capability building measures to encourage energy efficiency improvements in the industrial, building and household sectors.
The Ministry of the Environment and Water Resources (MEWR) has recently enhanced the Energy Conservation Act to strengthen energy efficiency practices among companies, and plans to implement Minimum Energy Performance Standards (MEPS) for common industrial equipment. The Minister for Finance has also announced that the Government aims to implement a carbon tax from 2019.
Capability building efforts include the Energy Efficiency Fund administered by the National Environment Agency (NEA) which provides support for companies to undertake design reviews, energy audits, and equipment retrofits. The Economic Development Board (EDB) supports energy efficiency initiatives in the manufacturing sector through various incentives, such as the Productivity Grant, Investment Allowance, as well as energy efficiency financing programmes. Small and medium-sized enterprises can tap on SPRING’s Capability Development Grant to adopt energy efficient solutions that can help improve their business capabilities.
In the building sector, the Government has been driving the shift towards more environmentally sustainable buildings. As of January this year, there are close to 3,000 Green Mark building projects in Singapore, which is approximately one-third of the total building stock. Our target is to have 80 percent of all buildings achieve BCA’s Green Mark standards by 2030.
For households, the Government has sought to raise awareness of energy efficiency products through the Mandatory Energy Labelling Scheme (MELS). In addition, inefficient household appliances are weeded out from the market through Minimum Energy Performance Standards (MEPS). As a result, the average energy efficiency of refrigerators has improved by about 26 percent since 2008.
Besides improving the efficiency on the demand side, Singapore will continue to explore new options in the energy supply to address energy security, competitiveness, and sustainability needs. Among alternative energy options, solar photovoltaic (PV) currently has the greatest potential for wider deployment in Singapore. In 2014, a plan to raise the adoption of solar energy in our system to 350 megawatt peak (MWp) by 2020 was announced. Looking beyond 2020, Singapore plans to further raise the adoption of solar power in our system to 1 gigawatt peak (GWp). Singapore will increase solar adoption by investing in research, development and demonstration (RD&D) in solar PV and related energy technologies; addressing market barriers to deployment; as well as enhancing regulatory framework.
Press-release at the official web-site of the Ministry of Trade and Industry of Singapore