Written reply to PQ on high-energy sector conservation targets, incentive mechanisms and infrastructure security amid Middle East disruptions

Question:

Ms Rachel Ong: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) how does the Government ensure high-energy consumption sectors, such as petrochemicals, semiconductors, power generation, ports, aviation, and data centres, actively contribute to national energy conservation; (b) what targets, monitoring, incentives, or enforcement mechanisms exist; and (c) how can these sectors, together with essential services and critical infrastructure, support Singapore's energy security during prolonged energy disruptions amid the situation in the Middle East. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  While the situation in the Middle East has affected supply chains, Singapore has not experienced severe energy disruptions. We have taken steps to reduce risks of disruption to our electricity generation, such as those shared in our Ministerial Statements on the impact of the Middle East situation on 7 April.

2.                  That said, all sectors can contribute to our energy resilience through energy conservation. For example, under the Energy Conservation Act (ECA) administered and enforced by the National Environment Agency (NEA), high-energy consumption sectors, such as manufacturing, power, water, and waste management must comply with mandatory energy management practices. Companies in these sectors with facilities that consume 54 terajoules or more of energy per year (equivalent to 15 GWh per year) are required to appoint certified energy managers, monitor and report energy use, conduct energy efficiency opportunities assessments, and implement energy efficiency improvement plans. Under the ECA, companies with energy intensive systems such as water-cooled chilled water systems in industrial facilities must also comply with mandated Minimum Energy Efficiency Standards.

3.                  Contravention of ECA requirements will result in penalties, including fines. Since the introduction of the ECA in 2012, companies have achieved energy savings of about 2,700 terajoules (or 750 GWh) per year, which is enough to power approximately 165,000 Housing and Development Board 4-room flats.

4.                  Beyond regulations, the Government supports companies to invest in and improve their energy efficiency. For instance, the Government recently announced the expansion of the Energy Efficiency Grant Base Tier, which provides co-funding for pre-approved energy efficient equipment, to all sectors, and extended this support for another year, to 31 March 2028. The Resource Efficiency Grant for Emissions also supports manufacturing facilities and data centres in undertaking projects that improve their energy efficiency and reduce emissions.