Less electricity used last year to generate each dollar of GDP
Amresh Gunasingham, Straits Times 8 Sep 09;
THE Singapore economy became more energy efficient last year, squeezing more value from every dollar spent on electricity, even as it cost more.
In other words, it took less electricity to generate every dollar of the gross domestic product (GDP) last year - 13 percentage points less than in 1999.
It is significant that the country's energy efficiency went up in a year of spiralling fuel prices. Fuel costs, which make up half the cost of generating electricity here, have risen by 418 per cent since 1999, noted Mr Benjamin Tang, a senior economic analyst at the Energy Studies Institute in the National University of Singapore (NUS).
With oil prices hitting almost US$150 per barrel last year, electricity tariffs were raised by 21 per cent last October - the highest one-time hike in eight years.
More than $8.2 billion was spent on electricity last year, double the amount from a decade ago, going by figures from the Energy Market Authority (EMA), which regulates the electricity and gas industry here.
Bigger energy bills notwithstanding, the country's increased electricity efficiency comes partly out of the economy's move away from the machinery-intensive, energy-guzzling manufacturing activities towards service-oriented industries such as finance and health care. These knowledge- and skills-based sectors require less inputs of energy to generate income, said Professor Ang Beng Wah of the department of industrial and systems engineering at NUS.
Strides made in the technology of power generation and the more productive use of energy in other sectors are also factors, he added.
With rising affluence and economic growth, household electricity consumption peaked at 6,652 gigawatt-hours last year, an increase of 18 per cent from 1995, noted Mr Joseph Hui, director-general of the environmental protection division of the National Environment Agency (NEA). However, domestic consumption as a proportion of overall consumption has fallen - from 19.7 per cent in 2000 to 17.8 per cent of the 37,940.3 kilowatt-hours consumed last year.
Mr Tang said the double-barrelled effect of the downturn and increased electricity tariffs last year made people tighten their belts. The NEA's drive to persuade households to buy energy-efficient appliances and its challenge to them in April last year to practise energy-saving measures could also have had an effect.
An NEA spokesman said household electricity consumption fell 2 per cent between 2007 and last year. The EMA expects electricity demand to grow by between 3 and 4.5 per cent every year in the coming decade as the economy grows.
But Citigroup economist Kit Wei Zheng said if less power is consumed to generate each dollar of GDP, overall costs will be kept in check.
The global demand for energy is expected to jump 45 per cent between now and 2030, fuelled by economies such as China, India and Brazil, said Dr Bindu Lohani, a vice-president at the Asian Development Bank.
'Green' fridges, air-cons easier on the pocket
They may be pricier, but will offer more savings in the long term
Amresh Gunasingham, Straits Times 8 Aug 09;
PAY a few hundred dollars more for an environmentally friendly refrigerator now and reap the savings in the future.
A survey of 11 major electrical retailers here has shown that going green by opting for more energy-efficient air-conditioning and refrigerator systems could shave as much as $4,000 off household utilities bills.
Energy labelling for these home appliances, whose use can make up as much as 50 per cent of an average household's monthly utilities bill, was made mandatory in January last year.
The National Environment Agency (NEA) conducted a 14-month study of 11 local retailers to assess the life-cycle costs of such appliances by adding the purchase price to the expected usage bill incurred over their lifespan.
Mr Ong Seng Eng, director of resource conservation at NEA, said the study was significant in establishing the impact of mandatory labelling on suppliers as well as the benefit derived from energy savings to consumers.
In the case of an air-conditioning unit, the survey found that although the purchase price of a less energy-efficient model could be a few hundred dollars lower, its life-cycle cost could reach $12,000 - in contrast to around $8,000 for the most energy-efficient model.
This calculation is based on the assumption that a home owner's air-con is used up to eight hours a day annually.
Mr Darren Lim, a sales executive at appliance manufacturer Sanyo, said cost is by far the biggest challenge in convincing consumers of the merits of buying energy-efficient products.
'At the initial stage, the consumer pays slightly more, but over the product's lifespan of about eight years, he saves more,' said Mr Lim. The price of Sanyo's most energy-efficient air-con model was $2,999, he said.
Gain City marketing manager Evonne Lee said the company had observed a 22 per cent jump last year in the purchase of more energy-efficient air-cons compared with three years ago.
'The key reason...is the heightened awareness of energy conservation and the cost savings that come with it,' she said.
Mr Joseph Hui, director-general of the environmental protection division at NEA, said there has to be a change in mindset. 'It is really for their own good to save money because in the end, it goes back to them. If electricity prices were to go up in future, even more savings could be reaped,' he said.
Ms Kang Chai Yen, who is in her 30s, switched to a more efficient air-con system last year. The housewife said the change has shaved $30 off her monthly $120 utilities bill.
More cost savings with green household appliances
Cheryl Lim, Channel NewsAsia 7 Sep 09;
SINGAPORE: Investing in green household appliances will result in more cost savings in the long run, according to results of a study conducted by the National Environment Agency (NEA) on energy efficiency.
More Singaporeans are taking steps to make their households energy efficient. According to NEA, 9 per cent more Singaporeans adopted good energy habits last year, compared to 2007.
Household energy consumption accounts for almost 17 per cent of total electricity consumed in Singapore.
But results from NEA's ongoing "10% Energy Challenge" have revealed a 2 per cent drop in the country's total household energy consumption last year, compared to the year before.
Under the Mandatory Energy Labelling Scheme, the more ticks an appliance has, the more energy efficient it is. Currently, the scheme applies to only air-conditioners, clothes dryers and refrigerators because they consume the most electricity.
But NEA said on Monday there are plans to expand it to other appliances like lighting fixtures. Its survey also showed that energy-efficient appliances are cheaper to run.
The average cost of purchasing and operating an energy-efficient air-conditioner for eight hours a day over seven years is around S$7,000. A less energy-efficient model, with the same usage pattern, will cost slightly over S$12,000.
Likewise, the cost of an energy-efficient fridge will amount to less than S$2,500 for 10 years, while a less energy-efficient model will cost more than S$3,000 on the same usage pattern.
Some 11 electrical appliance retailers were polled during the 14-month energy label study.
Joseph Hui, director-general of environmental protection, NEA, said: "We need to be aware of all the technologies available in other parts of the world and also be aware of the kinds of incentive schemes and various other schemes that are in place, so that what we subsequently implement in Singapore will be practical."
NEA hopes to spread the message through its Energy Challenge Week, which has started last Saturday.
A fair featuring the latest energy-efficient technology and innovation in household appliances will be held at the Marina Square Central Atrium from September 11 to 13.
Various community events will also be held islandwide until September 13. For more information on NEA's energy efficiency programmes, visit www.e2singapore.gov.sg.
Tick here to pay less
Four-tick models let you save 50 per cent more in bills than single-tick ones
Ong Dai Lin, Today Online 8 Sep 09;
IT DOES not cost more to be green.
Consumers who buy an electrical appliance with four ticks for energy efficiency can save almost 50 per cent in its lifecycle costs as compared to what they would have to fork out if they had opted for a one-tick model. Besides, the higher-rated model may not cost more, a survey by the National Environment Agency (NEA) has shown.
Lifecycle costs refer to the price of the appliance and the electricity cost of running it during its lifespan. For instance, a four-tick air-conditioner which uses 6 kilowatts has a lifecycle cost of around $7,500 if it is on for eight hours a day.
In contrast, a one tick model has a lifecycle cost of $12,000.
The survey, carried out from January last year to February this year, involved 11 retailers. It also showed that a big number of consumers are choosing air-conditioners and refrigerators with two ticks.
These accounted for 34 per cent of the sales for air-conditioners and 49 per cent of sales for refrigerators in the survey period.
Four-tick air-conditioners constituted 37 per cent of sales respectively. The sales of four-tick refrigerators was, however, only 8 per cent; three-tick models were more popular at 42 per cent.
Explaining the trend, NEA's director-general of environmental protection Joseph Hui said the low sales of highest-rated refrigerators could be due to the limited range of such models available.
At the same time, only 10 per cent of air-conditioners and 1 per cent of refrigerators sold do not receive any rating from NEA because they are not energy efficient.
NEA's chief executive officer Andrew Tan said he is "delighted" that retailers have increased their range of the more energy efficient appliances. "This can be attributed to higher consumer demand due to increased sophistication of consumers who are now more aware of the energy savings they can reap by adopting energy-efficient models."
To raise more awareness about energy efficiency, NEA has launched its inaugural Energy Challenge Week last Saturday.
The initiative, which includes a fair at Marina Square Central Atrium and activities in the heartlands to promote energy efficiency, will be held until this Sunday.
For information, visit www.e2singapore.gov.sg/
