Why Conduct an Energy Assessment?
What is an Energy Assessment?
An energy assessment (or energy audit) is carried out in an existing building or facility with the objective of improving its energy efficiency. It is an investigation involving a detailed analysis of energy flows into and out of a facility. The aim is to identify and quantify areas where energy savings can be made and estimate the amount of savings achievable. These may include improvements to facility design, operation and management. An energy assessment is commonly performed by an Energy Services Company (ESCO). For more information, click on the tab "Energy Services Companies" below.
What are the Benefits of Conducting Energy Assessments?
A lot of potential energy savings can be identified from an energy assessment. From the energy assessments funded by the Energy Efficiency Assistance Improvement Scheme (EASe), every $1 spent on a level III energy assessment generates an average of $5 in annual energy savings.
What is the Scope of Work of Energy Assessments?
There are three levels of energy assessments commonly undertaken by ESCOs.
Level I Assessment – Preliminary or Walk-through
A level I assessment, sometimes referred to as a level I assessment, or preliminary assessment, evaluates the overall energy consumption of the facility and is expected to provide a rough estimate of energy savings, investment costs and payback of the preliminary recommendations.
This assessment is usually designed to determine if the level of energy use of a facility has been reasonable or excessive. It provides initial energy baselines of the facility so that the effect of energy measures may be evaluated. It may or may not involve a site visit. The information given to or gathered by the ESCO needs to be sufficient to enable the overall efficiency of the facility to be ascertained.
The scope of work for Level I appraisal is as follows:
Gather facility-wide energy use on a monthly and/or annual basis;
Derive performance indicators;
Propose broad conclusions and recommendations, with estimated energy savings and payback; and
Submit written report.
Level II Assessment – Standard
A level II assessment identifies the actual amount of energy used by a facility the source of the energy and what the energy is used for. It also identifies areas where savings may be achieved, recommends measures to be taken, and provides a statement of expected costs and potential savings. It also involves short term metering and logging.
The expected scope of work for Level II assessment is as follows:
Follow-up from Level I assessment and report where available;
Detailed facility and systems energy input and energy use;
Reconciliation of energy accounts with loads;
Variation on energy use on a month-to-month basis;
Energy performance indicators;
Recommended improvement work with indicative cost and saving;
Implementation priority and plan;
Alignment of recommendations with client’s energy program; and
Written report and presentation.
Level III Assessment – Comprehensive or Detailed
Level III assessment is similar to a level II assessment except it also involves long-term detailed metering and data logging. A level III assessment provides a detailed analysis of energy usage, the savings that can be made, and the cost of achieving those savings. It may cover the whole facility or may concentrate on an individual item and/or system, such as a single industrial process or one of the services.
The expected scope of work for Level III assessment is as follows:
Follow-up from Level II assessment and report where available;
Define facility/process audited;
Facility/process investigation and detailed measurements;
Detailed metering down to half-hourly time interval where required;
Derive target energy use and develop baseline model where relevant;
Detailed recommendations including costs, savings and accuracy of estimates;
Detailed investment plan;
Suggest refinement to energy policy and energy program; and
Written report and presentation.
What are the Incentives for Energy Assessments?
Companies that wish to conduct an energy assessment can apply for the Energy Efficiency Improvement Assistance Scheme (EASe), which funds up to 50% of the cost of an energy appraisal. For a list of accredited Energy Services Companies (ESCOs) that provides energy assessment services, please click here.
Objective and Form of Assistance
The Energy Efficiency Improvement Assistance Scheme (EASe) is a co-funding scheme administered by the National Environment Agency (NEA) to encourage companies in the manufacturing sector to carry out detailed studies on their energy consumption, also known as energy assessments, and identify potential areas for energy efficiency improvement.
Funding would be provided for up to 50% of the qualifying cost of engaging an expert consultant or Energy Services Company (ESCO) to conduct detailed energy assessments and recommend specific measures that can be implemented to improve energy efficiency. Over a 5-year period, the maximum amount of funding to any single facility is capped at $200,000.
The qualifying costs include the energy assessment fees comprising:
- Use of instrumentation and evaluation tools
Singapore GST is excluded.
The cost of implementing the recommendations of the energy assessment would not be supported under the EASe.
Disbursement of Grants
All disbursements of grants will be made on a reimbursement basis.
The eligibility criteria for the EASe are:
The owner or operator of the manufacturing facility must be registered in Singapore.
The manufacturing facility for which the energy assessment is being carried out must be located in Singapore.
Energy audits of commercial buildings (office, hotel & retail) are not supported under the EASe. The Building and Construction Authority (BCA) currently offers subsidized "health checks" to help commercial building owners understand their central air-conditioning plant efficiency, under the Green Mark Incentive Scheme for Existing Buildings (GMIS-EB "Health Check").
The capabilities of the selected ESCOs should be thoroughly assessed to ensure that they match the needs and requirements of your facility. A list of the accredited ESCOs that provide energy assessment services can be found here.
Qualified internal teams with good track record in carrying out energy assessments of comparable scale and scope may also be considered for funding. Such teams must provide evidence of substantial experience in carrying out energy assessments of the scale and scope intended.
The detailed energy assessment must not have commenced at the time of application. The company must not have signed a contract with the ESCO for the detailed energy assessment at the time of application.
The detailed energy assessment should cover the whole plant or facility. Manufacturing equipment and processes may be excluded from the assessment. For large facilities, a partial assessment covering a complete system or part of the facility may be considered. Besides energy assessments, process plants can also carry out long-term monitoring of individual system components and overall systems to identify efficiency degradation. This is known as Efficiency Monitoring. Such projects are also eligible for funding under EASe.
Through the implementation of the energy conservation and efficiency measures identified by the ESCO, companies have reaped significant energy and cost savings.
Find out more about the buildings success stories here.
Find out more about the industries success stories here.
EASe Process Flow
EASe Process Flow
Energy Services Companies
Energy Services Companies
An energy services company (ESCO) is a company dedicated to the provision of energy efficient technology and services including energy assessments, financing, design, implementation and management of energy efficiency projects.
Engaging an ESCO is one way to identify and implement energy efficiency projects in your facility. If your company lacks time, expertise or experience in identifying and implementing energy efficiency projects, engaging an ESCO can provide the expertise required to identify and implement them.
Types of Services
Companies can engage ESCOs for the range of services given below. Companies can consider the use of an Energy Performance Contract or Guaranteed Energy Savings Performance Contract, which encompasses all the services below.
An energy assessment is a detailed study on the energy consumption to identify and quantify to save energy.
Some ESCOs provide financing for energy efficiency projects. Financing for projects could be available through ESCOs or other sources. Do not let unavailability of funds prevent your company from making energy investments that pay for themselves from energy savings.
The ESCO can provide a guarantee that the project will achieve the promised energy savings. Under a project guarantee, the ESCO will verify that the energy efficiency project meets the energy performance guaranteed, and will make up for any shortfall in savings. To do that, ESCOs will provide project monitoring and verification.
Equipment maintenance and servicing
To achieve the guaranteed energy savings stipulated, ESCOs often will require a maintenance contract of the equipment. Companies can enter into performance contracts for the implementation of the energy efficiency projects. More information on performance contracting can be found here.
Selecting an ESCO
It is important to select an ESCO that matches your needs and requirements best.
1. Request for the ESCO’s project references and track records. Carefully assess their technical expertise and experience in implementing projects of similar scale and scope to yours.
2. Request for the ESCO’s financial statements if project financing is required. Review their financial capability and stability.
ESCO Accreditation Scheme
The National Environment Agency and Building and Construction Authority administer an accreditation programme to enhance the professionalism and quality of services offered by ESCOs. The list of accredited ESCOs in Singapore can be found
Find out more about the ESCO Accreditation Scheme.
Application and Enquiries
Preliminary Energy Assessment
Companies must have conducted a preliminary energy assessment at the time of application.
Formal applications must be made on the prescribed Application Forms and sent to the following address:
c/o Director (Energy Efficiency & Conservation Department)
National Environment Agency
40 Scotts Road #19-00
Download Application Form here.
Download guideline for energy assessment report format here.
All applications must include the following documents:
- Application Form, fully completed
- Business particulars
- ESCO particulars
- Company’s evaluation criteria and constraints for implementing energy saving measures
- Energy assessment scope, schedule, fees
- Latest audited annual/financial report
- Preliminary energy assessment report
- Proposed contract with ESCO
For enquiries, contact: