The Energy Conservation Act (“ECA“) came into force in 2013 (and was enhanced in 2017) and applies to energy-intensive facilities in the industrial sector with an annual energy consumption of 54 terajoules (TJ) or more.
From 21 November 2023 to 20 December 2023, the National Environment Agency (“NEA“) is seeking feedback on two new requirements under the ECA to expand the Energy Efficiency Opportunities Assessment (“EEOA“) requirements and the responsibilities of the Energy Manager. The new requirements are slated to come into effect in the fourth quarter of 2025.
First, the ECA requires companies investing in new ventures with potentially large energy consumption (“Energy Intensive Companies“) to apply for Planning Permission or the Plan Lodgement scheme with the Urban Redevelopment Authority (“URA“). If the works/venture satisfy the prescribed criteria, the Plan Lodgement Scheme allows the works/venture to be lodged with URA and will be considered authorised without further need to apply for Planning Permission.
Presently, Energy Intensive Companies that apply for Planning Permission are required to conduct EEOA. NEA proposes to require Energy Intensive Companies that apply for the Plan Lodgement scheme to also conduct EEOA. The intent is to ensure that all new energy-intensive industrial facilities have considered and incorporated economically feasible energy/carbon efficiency opportunities into their design.
Second, the ECA requires registered corporations (“RCs“) to appoint qualified energy managers to, among others, prepare energy use reports, prepare energy efficiency improvement plans, and assist the RCs to comply with Energy Management System (“EnMS“) and EEOA requirements. NEA proposes to formally extend the role of the energy managers to include preparation and endorsement of the EnMS and EEOA reports. This increases the responsibilities of the energy managers and potentially, their liabilities.
To read the public consultation document, click on the following link:
- Public Consultation on Proposed Administrative Amendments to the Energy Conservation Act (available on the REACH website at https://www.reach.gov.sg/)
