Summary of Mandatory Energy Management Under Singapore’s Energy Conservation Act

The requirements for mandatory energy management under Singapore’s new Energy Conservation Act has come into force this Earth Day on 22 April 2013.

The Act requires large energy consuming companies to register with the National Environment Agency (NEA) and implement mandatory energy management practices. Companies are required to appoint an energy manager, monitor and report energy use and greenhouse gas emissions, and submit annual energy efficiency improvement plans.

Registration of Companies

Any company that is registrable must apply to NEA by 22 October 2013 to be registered.

A company is registrable under the Act if its operations meet the energy use threshold of 54TJ of energy used per calendar year in at least 2 out of the 3 preceding calendar years, and the business activity is carried out at a single site for the following sectors:

• manufacturing and manufacturing-related services
• supply of electricity, gas, steam, compressed air and chilled water for air conditioning
• water supply and sewage and waste management

The energy use threshold is derived from one or more types of fuel (natural gas, crude oil and petroleum products, solid fuel, derived gases, non fossil-based fuel, peat, biomass and fuel derived from biomass, and hydrogen) or energy commodities (electricity, steam, chilled water, and compressed air).

Appointment of Energy Manager

A registered company must appoint at least one energy manager with these qualifications (with effect from 1 April 2014):

• hold a Singapore Certified Energy Manager (Professional Level) certificate issued by the Institution of Engineers, Singapore; or
• hold such other qualification and experience which NEA may approve

Companies have to notify NEA of the appointment of its first energy manager not later than 30 days after registration, and of every appointment of an energy manager within 30 days of the appointment.

Energy Use Report

A registered company must submit an energy use report by 30 June of each year, prepared and reviewed by the energy manager and endorsed by the chief executive of the company.

For each relevant business activity relating to its operation, the energy use report should contain:

1. quantity of each type of fuel or energy commodity in the inventory, and their net calorific value or energy content value, and unit of measure
2. quantity of each type of fuel or energy commodity purchased or sold, or used for the purposes of producing or providing energy, and their net calorific value or energy content value, and unit of measure
3. quantity of each type of fuel or energy commodity produced for purposes of producing or providing energy, and their net calorific value or energy content value, and unit of measure
4. information of energy-consuming systems (aggregate energy consumption of which shall not be less than 80% of the total energy consumption of the business activity)
5. specific energy consumption
6. reasons for increase or decrease in specific energy consumption compared to that reported in the previous year to the extent necessary for a reasonable understanding of the significant factors that affected the energy efficiency of the business activity
7. information relating to processes or activities resulting in greenhouse gas emissions
8. information on type, quantity and unit of measure of each fuel or energy commodity used as feedstock to produce products containing carbon
9. basic process diagram(s) showing the energy-consuming systems and the general process and energy flow

For each business activity not relevant to its operation, the energy use report should contain:

1. the estimated aggregate energy consumption as a percentage of the company’s total energy consumption
2. the estimated aggregate energy production as a percentage of the company’s total energy production
3. the estimated aggregate greenhouse gas emissions as a percentage of the company’s total greenhouse gas emissions

 Energy Efficiency Improvement Plan

A registered company must submit an energy efficiency improvement plan by 30 June of each year, and include the following information for each relevant business activity:

1. description of energy efficiency measures to be implemented or completed
2. update on the progress of energy efficiency measures described in the previous energy efficiency improvement plan submitted
3. information on difference in energy consumption for each measure implemented

For the submission of energy use report and energy efficiency improvement plan, companies will be required to make their first submission in 2014.

Companies are not required to be certified to the ISO 50001 Energy Management Systems standard, but are encouraged to do so.

Visit the NEA website for more information and details on the Energy Conservation Act

Source credit: NEA

Image credit: Oil refinery by jkpics via stock.xchng