The Future of Energy in Singapore 

Singapore’s Budget 2023 was themed “Moving forward in a new era”, referring to a new era of global precarity marred by geopolitical tensions, weak labour markets and volatile supply chains. Given its small land size, the country has limited energy generation capacity and is heavily dependent on imported natural gas for its energy. In this new era, Singapore finds the very foundations of its economy threatened by transboundary conflict and looming climate change. 

The Singaporean government has made significant strides in addressing energy woes through firm legislation to adapt to these changes. While these policies aim primarily to improve energy efficiency and minimise environmental harm, they also reflect Singapore’s ambitious net zero goals. In fact, as part of the Singapore Green Plan 2030, Singapore aims to “green” 80% of its buildings (by Gross Floor Area), and have 80% of its new buildings be Super-Low Energy buildings by 2030.

Most recently, Singapore has announced the extension of the Energy Efficiency Grant to help selected small and medium-sized enterprises optimise operations to increase energy efficiency and enhance Singapore’s efforts to combat climate change.  

The most significant approach to maximising energy efficiency is to optimise utility usage, particularly in the commercial sector. Within this domain, electricity consumption is dominated by cooling, ventilation, and lighting (Figure 1). A 2013 study conducted by the National University of Singapore (NUS) and the Building and Construction Authority (BCA) revealed that simply retrofitting the base utility equipment of a building, such as its chillers and lights, can lead to a 6 to 40% improvement in energy efficiency. 

Moreover, the benefits of a retrofit project go beyond reducing energy consumption. Replacing old equipment can be cost saving over the long term, and can confer many non-energy related benefits such as improved occupant comfort and increased asset value.

In the next few years alone, Singapore’s carbon tax is set to rise by 400% to S$25/tCO2e, and the new Mandatory Energy Improvement (MEI) regime will mandate all owners of buildings with poor energy performance to conduct energy audits and implement measures to reduce energy consumption. 

As legislation becomes stricter and energy costs rise, the need for energy optimisation becomes all the more pertinent to building owners and tenants. ESM will work closely with our clients every step of the way to achieve energy efficiency goals and ultimately, realize Singapore’s climate-neutral ambitions.

Savills’s Energy and Sustainability Management Team provides turnkey retrofit solutions to optimise energy efficiency. We offer multidisciplinary expertise in asset enhancement management and procurement of energy-efficient building components, with a technical focus on building management systems (BMS), chiller, air handling units and lighting efficiencies. Our services range from concept – energy auditing and Green Mark consultancy – to implementation. 

Get in touch with us today for all your energy and sustainability needs.