Under the Energy Efficiency Fund (E2F), Singapore’s National Environment Agency has increased its grant for energy-efficient technologies to up to 20% from last month, with the maximum supported increased 50% to 70% of eligible expenses per project.
This reduces the barriers for industrial companies, including SMEs, to adopt energy-efficient solutions that will help them save money on energy and reduce their carbon emissions. The E2F grant application and payment process has been simplified to save applicants time and money.
The Energy Efficiency Technology Center (EETC), which provides low-cost energy assessments to SMEs, will also be developed in conjunction with the Singapore Institute of Technology (SIT). These policies will help manufacturing SMEs identify and finance energy efficiency projects, as well as prepare for a low-carbon future.
The E2F was introduced in April 2017 and is administered by the NEA. It helps industrial organizations, including small and medium-sized enterprises (SMEs), to increase their energy efficiency. The E2F supports a variety of energy efficiency and low-carbon activities, including energy assessments and the design of resource-efficient facilities. Currently, the E2F grant program co-finances up to 50% of the eligible costs of these projects.
The E2F funded 27 energy-efficient technology initiatives in January 2022. LED lighting, high-efficiency air conditioning systems, variable-speed air compressors, and boiler systems are among them. These projects have saved around 1,600 tons of carbon every year, which is equivalent to taking 500 cars off the road.
The amount of money given to projects will depend on the amount of carbon saved. Higher financial funding is available for projects that achieve a greater reduction in carbon emissions. From April 1, 2022, E2F applications accepted by NEA will be eligible for this higher support cap. The sector is encouraged to take advantage of the increased funding and invest in energy efficient solutions as soon as possible.
NEA also makes it easy for businesses to use E2F to save time and money. The procedure for measuring and verifying energy savings will be simplified, as will the grant application and payment processes for conventional retrofit projects involving LED lights or small energy-efficient air conditioners.
Companies just starting their energy efficiency journey should take advantage of EETC’s affordable energy ratings, which have been available since 2020 through a collaboration between the NEA and the Singapore Institute of Technology (SIT).
Energy assessments will help businesses get an accurate view of their current energy profile, allowing them to make informed decisions about what energy efficiency improvements they can make.
In addition to energy assessments, EETC also strives to develop Singapore’s workforce, including training a pipeline of engineering students in industrial energy efficiency and upskilling engineers or practitioners in existing energy efficiency.
As Singapore transitions to a low-carbon economy, NEA will work with SIT to build the next phase of the EETC, which will focus on building human capacity in energy efficiency. The EETC will be enhanced by the creation of a Training and Simulation Center, which will allow learners to study and practice their craft in a controlled and safe environment while simulating real-world settings.
The grant aims to encourage manufacturers, especially small and medium-sized enterprises, to invest in energy-efficient equipment or technologies by co-financing up to 70% of eligible costs, such as labour, equipment or external technology, as well as services.
The award is available to all Singapore-registered owners or operators of existing or planned manufacturing facilities with an annual group turnover of less than S$500 million. The project implementation facility must be located and operational in Singapore.
The project must include the installation and use of energy efficient equipment or technology in an industrial facility with a documented history of energy savings. The project must result in measurable and verifiable energy savings.