Publication

25th May 2000, The Straits Times

New moves to beat energy guzzlers

Plans include new pricing strategies, incentives for power companies to get customers to use less electricity

By DOMINIC NATHAN

THE plug is being pulled on inefficient energy use, in a move that could save billions of dollars needed for new power plants.

A government report on energy efficiency released yesterday recommended new pricing strategies to discourage electricity guzzlers, although it did not say who the targets would be.

A radical suggestion involves allowing players like Singapore Power to make money from helping their customers use less energy.

Demand-side management, as it is called, is already practised in the United States and could see a utility company earning revenue from a share of the savings it helps customers achieve.

Currently, utility companies here will see a drop in revenue if they promote efficiency and cut electricity demand.

Other recommendations made could result in mandatory energy audits for heavy users, and better-designed public housing that will keep occupants cool through natural ventilation rather than air-conditioners.

For domestic users, look out for new labels identifying energy-efficient airconditioners, refrigerators and washing machines.

And utility bills will soon tell if a customer is using too much energy compared with others living in homes the same size.

Other ideas suggested include tapping energy through using solar panels and wind turbines, and promoting the use of energy efficient vehicles instead of petrol guzzlers.

In putting together its 28-page report, the committee of senior civil servants and academics, headed by Senior Parliamentary Secretary (National Development) Koo Tsai Kee, looked at the regulatory framework and the electricity market and how the public sector can lead efforts in energy efficiency.

Explaining the rationale for the changes, the report noted that by 2007, another 3.3 gigawatts (GW) of power will be needed, on top of the present 5.5 GW.

This is based on the Public Utilities Board's projection that annual electricity demand will grow by 5.3 per cent a year, to meet the needs of a growing population and higher living standards.

To feed this demand, the report said, "the projected capital cost will range from $2.6 billion to $4.1 billion depending on the type of power plant to be installed by generation companies."

And if all five proposed desalination plants are built to supply 100 million gallons of water a day, then making water alone will take up 8 per cent of total energy consumption, based on 1995 levels.

At the same time, energy prices will rise, as demand grows worldwide and oil reserves are slowly being exhausted.

Another global trend which prompted action here is the growing international concern about carbon dioxide emissions and their effect on the world's climate.

This may result in international pressure to contain Singapore's carbon dioxide emissions, which means, again, curbing energy consumption.

Developed countries have shown that their economies can grow without energy consumption going up as well, whereas growth in energy demand here has outstripped economic growth.

The report said: "Energy efficiency measures therefore do not hinder economic growth and the well-being of the country, but are instead complementary.

"Being energy efficient would sharpen Singapore's competitive edge in a global market and strengthen Singapore's resilience to energy shortages and disruptions in the future."

RECOMMENDATIONS: to boost energy efficiency

Power supply

Introduce new pricing strategies to discourage heavy users of electricity.
Spur the development of demand side management, where power companies make money from helping customers save energy. Currently, utility companies lose revenue if they were to promote efficiency and reduce demand.

Homes

Utilities bill to show prominently the average electricity consumption of different sized flats.
Labels on airconditioners, refrigerators and washing machines to tell if the model is energy efficient.
Study how solar energy and wind energy can be tapped for facilities in common areas.

Buildings

Audit energy use in large public sector buildings and set targets to boost energy efficiency.
Set energy efficiency standards for public and private housing.
Make audits mandatory for all buildings above five years whichuse energy inefficiently.

Transport

Facilitate the introduction of energy efficient vehicles as soon as possible, while continuing to encourage the use of public transport.

Industry

Introduce energy efficiency standards and best practices for the manufacturing sector by studying the experience of other countries.
Study if large industrial consumers should be required to carry out energy audits and whether they should be given incentives to improve.

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