Strategic Energy Management For Resilience

1

Energy Conservation Act

Energy Use Reports and

Energy Efficiency Improvement Plans 2014

Kwek Chin Hin

Head (Industrial Energy Efficiency)

7 Oct 2015

2

OutlineSingapore’s GHG Profile1

2 Industrial Energy Efficiency

Programmes

3 Key Findings from 2014 ECA

Submissions

4 Next Steps?

3

Singapore’s GHG

Profile1

Breakdown of projected 2020 BAU Greenhouse Gas (GHG) emissions (77 MT)

In Jul 2015, Singapore submitted its INDC* stating its intention to reduce

emissions intensity by 36% from 2005 levels by 2030, and stabilise emissions to

peak around 2030

Singapore’s GHG Emissions & Mitigation Plan

Buildings• Raise EE standards

• Support on-site

generation of solar

energy

Industrial• Incentivise

investment in EE

• Strengthen

regulations

• Build capability

Household• Raise EE of

households

appliances

• Promote energy-

saving behaviour

Transport• Increase public

transport mode

share

• Encourage walking

and cycling

* Intended Nationally Determined Contribution

4

60.2%13.8%

14.5%

7.6%

3.9%

Industrial

Building

Transport

Household

Others (waste, water, other electricity use)

Largest

energy

consuming

sector

5

Industrial EE

Programmes2

Current Industrial EE Landscape

Regulations and Standards

Capability Development

Incentives

Characteristics of

Industrial Sector

• Heterogeneous

with complex

processes

• EE considered as

peripheral

• Exposed to global

competition

Approach

6

Regulations and Standards

7

Mandatory Energy Management Practices under Energy Conservation Act (ECA)

• Mandatory energy management practices introduced in Apr 2013

• Energy-intensive users in the industrial sector consuming 54 TJ or more each year must:

- appoint a SCEM-certified energy manager

- monitor and report energy use and GHG emissions

- submit energy efficiency improvement plans

Incentives

8

EE Design of New Facilities (DfE)

• Co-funds 50% (cap at $600k) of cost of design workshops to integrate energy and resource efficiency improvements into development plans early in the design stage

Audits of Existing Facilities (EASe)

• Co-funds up to 50% (cap at $200k) of cost to conduct energy audits to identify EE improvements

Investment in EE Technologies (GREET / IA)

• Co-funds up to 20% (cap at $4mil) of investment cost for uptake of EE technologies; or

• Provides additional 30% investment allowance against taxable income on top of normal capital allowance for EE investment

Capability Development

9

Energy Efficiency National Partnership (EENP)

• EENP Learning Network & National Energy Efficiency Conference

• EENP Awards

Singapore Certified Energy Manager (SCEM)

• Training and certification programme in energy management

• Requirement for ECA energy managers

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Key Findings from

2014 ECA

Submissions3

ECA Coverage

11

40%

13%1%

1%

45%

Primary Energy Consumption

Industrial

Transport

Commerce &Service

Household

Energy &Transformation

65%

18%

12%

5%

Final Energy Consumption

Industrial

Transport

Commerce &Service

Household

Others

83%

63%

Energy Use by Manufacturing Facilities

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Petroleum Products

50%

Natural Gas30%

Electricity14%

Steam5%

• Petroleum products &

natural gas accounted

for 80% of total energy

use

• Electricity accounted

for 14% of total energy

use

Rest of energy sources1%

* Excludes secondary energy from transformation of primary energy, e.g. steam generated from natural gas within the facility

EnergySource*

38%

19%

12%

10%

6%

15%

Electricity Consuming Systems

Process Specific Systems

Cooling & Refrigeration Systems

Gas Compressors

Pumps

Compressed Air Systems

Others

64%

19%

15%2%

Fuel Consuming Systems

Furnaces /Kilns /Ovens /Dryers (Direct heating)

Co-generation

Boilers /Hot Oil Systems (Indirect heating)

Others

System-Level Energy Use

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Fuel Electricity

1.00

1.10

1.20

1.30

1.40

1.50

10 100 1,000

SEC (TJ/TJ)

Fuel Energy (TJ/Year)

Estimated Data Measured Data

Benchmarking of Industrial Systems

14

MoreEfficient

LessEfficient

0.5

0.7

0.9

1.1

1.3

1.5

0 1000 2000 3000 4000 5000 6000

SEC (kW/RT)

Cooling Load (RT)

66%

0.8kW/RT0.7 kW/RT

37%1.25 TJ/TJ

Boilers

Chilled Water Systems

0.00

0.05

0.10

0.15

0.20

0.25

0.30

5 7 9 11 13 15

SEC (kWh/Nm3)

Pressure Ratio (Pout/Pin)

Poor Range

Good Range

47%

More Efficient

Less Efficient

Compressed Air Systems

Poor Range

Good Range

Poor Range

Good Range

System-Level Reporting

15* Energy Performance = Energy Consumption / Output

Estimated47%Measured

53%

Energy Consumption

Estimated46%Measured

54%

Output

Estimated62%

Measured38%

Energy Performance*

1,880Energy-

Consuming Systems

Reported

• 62% of reported systems’ energy performance were estimates

• More than half of companies did not measure one-third of the important parameters

EE Measures to be Implemented (2014 -2018)

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• Investment outlay of most

measures was < $1 mil

$0

$50

$100

$150

0

100

200

300

400

<3 3 - 7 >7

Pro

ject

ed

An

nu

al S

avin

gs(M

illio

ns)

No

. of

EE M

eas

ure

s

Projected Payback (Years)

No. of EE Measures Projected Annual Savings (S$)

• Payback of 62% of measures

was < 3 years

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

0

100

200

300

400

500

600

<S$1 mil S$1 mil - S$10 mil >S$10 mil

Pro

ject

ed

An

nu

al S

avin

gs(M

illio

ns)

No

. of

EE M

eas

ure

sInvestment Outlay Per Measure

No. of EE Measures Projected Annual Savings (S$)

EE Measures to be Implemented (2014 -2018)

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• Most measures

involve

improvements to

cooling &

refrigeration systems

and retrofitting of

lighting systems

• Co-generation and

heat recovery

measures are

expected to yield

most energy savings

$0

$10

$20

$30

$40

$50

$60

$70

$80

0

20

40

60

80

100

120

140

Pro

ject

ed

An

nu

al S

avin

gs(M

illio

ns)

No

.of

EE M

eas

ure

s

Type of EE Measures

No. of EE Measures Projected Annual Savings (S$)

EE Measures to be Implemented (2014 -2018)

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• Most companies have

short planning horizon

for EE improvement

measures Short economic

cycles

Conservative

estimates

• The estimated annual

EE improvement over

the first 2 years is 0.7%

201421%

201540%

201624%

201711%

Year of

Implementation (Total expected

energy reduction)

2018 and beyond4%

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Next Steps?4

Industrial EE Best Practices

Energy

Management

Maturity

Basic energy

management practices

• Implement energy

management system, e.g. ISO

50001

• Conduct regular energy audits

• Install EE equipment

Many of these best practices are

mandated in several countries,

e.g. EU, USA, China, South

Korea

Best practices in

energy management

For More Information

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www.e2singapore.gov.sg

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THANK YOU