Building owners told to phase retrofits over 3 years

Chiller replacements and system upgrades cost $150,000 to over $2m.

Energy-intensive buildings may need to phase retrofits over three years to manage costs that could go as high as $2m, amidst a state push to cut power consumption by 10% starting in the third quarter.

This would help building owners “better manage capital expenditure and minimise operational disruption,” Felcia Zeng, Head of Sustainability Management at CPG Facilities Management Pte Ltd ., told Singapore Business Review.

About 100 buildings in the city-state, including commercial, institutional, and leisure properties, will be covered by the mandatory energy improvement plan, she said in an emailed reply to questions, citing data from the National Environment Agency (NEA).

The policy targets buildings that consume more electricity than 75% of similar structures to maximise carbon reduction.

Extensive retrofitting works such as chiller replacements and building system upgrades cost $150,000 to more than $2m, according to the Building and Construction Authority. 

Although retrofitting could potentially be expensive depending on the scale of the building, it cuts property liabilities such as high utility and maintenance costs associated to aging building systems and raises valuations in the long run, said Tsubasa Bolt, senior consultant, sustainability and resilience office at SJ Group.

“If an upgrade has been done, then you can project that the utility costs would be lower,” he told Singapore Business Review via Zoom. A green building also attracts tenants seeking to cut their own carbon footprint, he added.

Bolt said the payback period for energy efficiency upgrades could be “pretty short.” For large-scale retrofit projects, a phased approach could extend over approximately six years, Zeng said.

They said building owners should prioritise upgrades in heating, ventilation, and air-conditioning, and lighting systems, where they could get the greatest energy-saving gains.

Chilled water systems, a type of air-conditioning system, account for as much as 50% of energy consumption in Singapore, Bolt said.

“If you upgrade your chiller plant to something more efficient, then you see pretty immediate savings,” he said. “Magnetic-bearing chillers are quite common on the market these days.”

Beyond these upgrades, integrating digital technology will be key, whether it’s smart sensors, digital twins, or facility management software, he added.

"We should look at how we can improve the effectiveness of a building’s operation, because that has a real impact on energy efficiency,” Bolt said. “Take your air-conditioner at home, for example. If you don't clean the filters regularly, over time, the unit will consume more electricity to deliver the same performance.”

Digital technologies that show exact performance numbers let building operators intervene more effectively and keep the building operating at peak efficiency, he added.

Zeng said facility management is the key to power consumption monitoring and complying with Singapore’s mandatory energy improvement plan.

“Ultimately, it’s not just about having energy-efficient systems in place, but it is also about how well they are operated and maintained over time,” she said.

“Through proper calibration, integration, and ongoing performance tracking, we help ensure these systems perform at their best, supporting long-term energy and carbon reduction goals,” she added.