The Energy Efficiency Fund (E2F) in Singapore is an umbrella scheme consisting of 5 different grants to support businesses with industrial facilities to improve energy efficiency (EE). Energy Efficient Technologies grant support companies to adopt energy efficient equipment or technologies. The grant supports manufacturing companies to upgrade their equipment ahead of the carbon tax increase. Further, the E2F consolidates existing energy efficiency incentive schemes administered by the National Environment Agency (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.
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. NEA will place greater emphasis on improving manufacturing SMEs’ energy efficiency efforts with the support of the Singapore Economic Development Board.
The National Environment Agency (NEA) will enhance the grant support cap for energy efficient technologies under the Energy Efficiency Fund (E2F). The support cap will be raised from the current 50 per cent to 70 per cent of qualifying costs per project from 1 April 2022. This will further lower the barrier for manufacturing companies, including SMEs, to adopt energy efficient measures, which will help reduce their energy costs and carbon emissions.
NEA will also work with the Singapore Institute of Technology (SIT) to develop the next phase of the Energy Efficiency Technology Centre (EETC), which offers low-cost energy assessments for SMEs. These measures will support manufacturing SMEs to identify and invest in energy efficiency projects, and prepare for a low-carbon future. Currently, the E2F grant scheme co-funds up to 50 per cent of the qualifying cost of such projects. As of January 2022, the E2F has supported 27 energy efficient technologies projects. These include retrofits of LED lighting, high efficiency air-conditioning systems, variable speed air compressors and boiler systems. These projects have achieved an estimated annual carbon abatement of around 1,600 tons, which is equivalent to taking about 500 cars off the road.
Projects that achieve higher carbon abatement are eligible for higher grant support. E2F applications received by NEA from 1 April 2022 will be eligible for this increased support cap. The industry is encouraged to take advantage of this higher support and invest early in energy efficient technologies.
NEA is also making it simpler for companies to utilize the E2F to save them both time and cost. The measurement and verification of energy savings will be streamlined, while grant application and disbursement processes for standard retrofit projects involving LED lighting or small energy efficient air-conditioners will be simplified.
Companies starting on their energy efficiency journeys are encouraged to tap on the affordable energy assessments offered by the EETC, a collaboration between NEA and the Singapore Institute of Technology (SIT) since 2020. The energy assessments will help companies establish an accurate picture of their current energy profile, allowing them to make informed decisions on the measures they could invest in to improve their energy efficiency. The National Environment Agency of Singapore has increased its grant for Energy Efficient Technologies up to 20% starting last month, the supported maximum was raised from 50% to 70% of qualifying expenditures per project. These projects have saved an estimated 1,600 tons of carbon each year, which is the equivalent of taking 500 cars off the road. NEA is also making it easier for businesses to use the E2F to save time and money.
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