Partnering with Singapore's Clean-Tech Initiatives 2013

Partnering with Singapore’s Clean-tech Initiatives 2013 ©Green Technology Asia Pte Ltd

THE OPPORTUNITY

The acceptance of Climate Change by the world’s leading economic institutions, including the IBRD and World Bank, and the prescription of clean technologies as a partial solution to slowing and possibly halting the otherwise inevitable damage to the world’s coastlines, ocean health, desertification, rainfall and weather extremes with resulting catastrophes in food production, loss of arable land, forced migrations, political upheavals and the increase of armed conflict, make the development and application of clean technologies has been accepted by Singapore, not only vital to global survival, but also good business.

The overall responsibility for directing climate change and green technology policy in Singapore comes under the National Climate Change Secretariat , Prime Minister’s Office of Singapore www.nccs.gov.sg. The NCCS released a National Climate Change Strategy in 2012 titled “Climate Change and Singapore: Challenges. Opportunities. Partnerships” (A copy is available as a pdf download from their website).

The interest of the Singapore Government is broadly two fold: to preserve and protect Singapore and its citizens from the impacts of climate change, and to position the economy to take advantage of the economic opportunities that clean tech is offering. In addition to a clear sighted recognition of the threat climate change poses to the region, the Singapore Government also recognizes the opportunity for economic growth in harmony with goals of lower carbon consumption, energy efficiency and energy and water conservation.

By 2015, the GOS anticipates Cleantech sector will contribute S$3.4 billion to Singapore’s gross domestic product (GDP) and employ 18,000 people, with Clean Energy contributing S$1.7 billion to GDP and 7,000 jobs. Clean Energy is an important sector in the Cleantech industry. There is a strong focus on solar energy in Singapore, given its strategic location in the tropical sunbelt and its semiconductor capabilities. There is also emphasis on wind energy, biomass, tidal energy, smart grids, green buildings, energy efficiency and carbon services. This will not only include technologies adaptable to Singapore’s domestic market, which is limited for renewables but for the much larger regional markets, one example Singapore’s involvement in China’s Eco-City projects through Temasek Holdings’ Singbridge www.singbridge.sg.

In support of these goals, the Government has instituted an aggressive and wide ranging campaign of programmes, grants, subsidies and other incentives, as well as a comprehensive programme of public awareness. In 2007, Singapore allocated nearly S$700 million to develop five key pillars: R&D, developing manpower, grooming Singapore-based enterprises, branding our industry Disclaimer: The information in this paper is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information in this paper.

2 internationally and growing a vibrant industry ecosystem. The city also welcomes Cleantech companies to use Singapore as a ‘Living Lab’ to testbed and demonstrate innovative solutions before scaling up for the rest of the world.

The Energy Innovation Programme Office (EIPO), formerly known as Clean Energy Programme Office (CEPO), is Singapore’s key inter-agency workgroup responsible for planning and executing strategies to develop the energy sector in Singapore. Since its inception in 2007, EIPO has launched several key initiatives, including the establishment of public sector R&D centres, competitive funding and talent development programmes.

Dedicated with an additional S$195 million from the National Research Foundation in 2011, EIPO is led by the Singapore Economic Development Board (EDB) and the Energy Market Authority (EMA). EIPO reports to an executive committee co-chaired by Chairman EDB and Permanent Secretary, Ministry of Trade and Industry.

Many of these funds can be accessed by foreign companies under conditions which may include finding a local joint venture partner, establishing an independent presence in Singapore or through co-funding arrangements. Other funds may provide support for the testing and purchase of foreign technologies, goods and services.

GOVERNMENT POLICY

Carbon Pricing and Feed in Tariffs

The Singapore Government has on several occasions stated it will not implement feed-in tariffs, taking the orthodox economic position that this will tend to distort prices. However, there are other practical reasons mitigating against PV installations; 80% of Singaporeans live in high rise buildings, limiting roof space. Tenancy periods (and indeed building life) tends to be shorter than the 20-25 year estimated payback period for PV installations. There remains the possibility of rooftop leasing to utilities, which has the added attraction of raising rent revenues.

Solar Power Purchase Agreements

The first grid connected system in Singapore was inaugurated in March 2006 with a peak capacity of 14.48 kWp and an estimated annual yield of 19,000 kWp. The system was installed on the roof of the German-European school by SUNSET Solar Energietechnik in a joint venture with Deutschen Energie- Agentur GmbH www.dena.de/en/

The pioneer SPPA in Singapore is currently being initiated by the Housing Development Board (HDB) in the eco town of Punggol. HDB has awarded a tender to lease three mega watt peak solar PV systems. Under the tender solar system developer Sunseap to design, finance, install, operate and maintain the solar systems. Under the agreement Pasir Ris-Punggol Town Council will have a service agreement with Disclaimer: The information in this paper is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information in this paper.

Sunseap to pay for the power generated and used, at a preferential rate of up to 5% discount off the retail tariff. To date the HDB has committed S$15M for the installation of a 3MW peak solar PV system for 175 blocks of flats. This is the second project

a) Keppel Seghers NEWater Development Company, which is owned by K-Green Trust, has installed a 1- megawatt system at its NEWater plant in Ulu Pandan. This is currently the largest system in a single location in Singapore and the first renewable energy system in Singapore to power water recycling. b) Greenpac, a manufacturer of environmental packaging solutions, is implementing a 330 kilowatt peak (kWp) system on their industrial building rooftop. Resulting energy savings will also help Greenpac achieve Green Mark certification by the Building and Construction Authority, or BCA. c) Sakae Holdings will install a 270 kWp system on the roof of Sakae Sushi’s factory at Paya Lebar, which also houses rainwater harvesting and food waste-to-energy systems. d) Cambridge Industrial Trust intends to install a 150 kWp solar PV system on the roof of their light industrial building at 30 Toh Guan Road, as part of their sustainability efforts, and to achieve Green Mark certification for all their industrial and commercial properties by 2014.

FUNDING

Funding schemes for clean technology come under eight agencies of government:

- Building and Construction Authority www.bca.gov.sg - Economic Development Board www.edb.gov.sg

Disclaimer: The information in this paper is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information in this paper.

- Land Transport Authority www.lta.gov.sg - National Environment Agency www.nea.gov.sg - National Parks Board www.nparks.gov.sg - PUB, the national water agency www.pub.gov.sg - SPRING Singapore www.spring.gov.sg - Urban Redevelopment Authority www.ura.gov.sg

In addition, Singapore’s A*Star www.a-star.edu.sg funds clean tech and related research programmes through its associated Research Institutes, Universities and Polytechnic Colleges. These include Nanyang University’s Institute of Environmental Science and Engineering iESE www.iese.ntu.edu.sg

There are currently over nine discrete funding areas and over twenty separate active funding programs. These include subsidies, fast write off and tax breaks, however a number that were initiated in 2007 and have now expired.

Current programmes which offer opportunities include:

A. ENERGY EFFICIENCY

1. Grant for Energy Efficient Technologies (GREET)

The Grant for Energy Efficient Technologies (GREET) is co-administered by NEA and EDB and provides funding for the Singapore-registered owner or operator of existing or proposed industrial facilities to invest in energy efficient equipment or technologies. Companies must be a partner in the EENP program and have implemented an energy management system. Typical funding is provided up to 20% of the qualifying costs and capped at $4 million per project. Qualifying costs include: - Manpower cost - Equipment and materials - Professional services

Only projects with a payback of more than 3 years and up to 7 years are eligible for funding. All grants are made on a reimbursement basis. Other terms and conditions are detailed on the NEA website.

B CLEAN ENERGY

2. Clean Energy Research and Test-bedding Programme (CERT) (completed)

The Clean Energy Research and Test-bedding Programme (CERT) by the Clean Energy Programme Office (CEPO) and managed by EDB, is a $17 million funding initiative for local and foreign companies and organisations to test and implement clean energy technologies at suitable sites. CERT involves three key partners: the R&D organisations, the technology providers, and the implementers. The R&D organisations will lead and conduct test-bedding activities, while the technology providers will be private sector companies providing the Clean Energy equipment and technologies to participate in the test-bedding. Government agencies which are providing the test-bedding location and facilitating the project are the implementers.

This five year program initiated in 2007 is now completed.

3. Clean Energy Research Programme (CERP) 2007

The Clean Energy Research Programme (CERP) by the National Research Foundation (NRF) is a $50 million funding initiative for Institutes of Higher Learning, public sector agencies, private companies based in Singapore, and not-for-profit research laboratories, to conduct research and development projects in clean energy. The R&D projects are submitted based on calls for proposals in domains specified by the Clean Energy Programme Office (CEPO). Funding support is up to 70% or 100% of approved direct qualifying costs of a project.

This program, initiated in 2007 is now completed

4. Solar Capability Scheme (SCS)

Under the Solar Capability Scheme (SCS), EDB provides funding for new private buildings to install solar technologies. The building must be certified with minimum Green Mark Gold rating by BCA, and the minimum solar system installed should be 10 kWp. The funding provided is between 30% to 40% of the total capital cost and capped at $1 million.

5. Market Development Fund

The Market Development Fund is a $5 million funding initiative by the Energy Market Authority to help in the test-bedding of new electricity generation technologies such as solar, wind, hydrogen and fuel cell, which has significant potential and value in the electricity market.

C GREEN BUILDINGS

6. Green Mark Incentive Scheme for Existing Buildings (GMIS-EB)

The government recently announced in the Sustainable Singapore blueprint that it has set a target for 80% of the existing building stock to achieve at least Green Mark Certified rating by Disclaimer: The information in this paper is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information in this paper.

2030. A $100 million Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) was set up by BCA to encourage private building owners of existing buildings to undertake improvements in energy efficiency. The scheme provides a cash incentive that co-funds up to 35% of the costs for energy efficiency improvements and capped at $1.5 million.

7. Green Mark Incentive Scheme for New Buildings (GMIS-NB)

The enhanced $20 million Green Mark Incentive Scheme for New Buildings (GMIS-NB) by BCA is to accelerate the adoption of green building technologies and design practices. The enhanced scheme provides cash incentives to developers, building owners, project architects and M&E engineers, who achieve at least a BCA Green Mark Gold rating in the design and construction of new buildings.

8. Green Mark Gross Floor Area Incentive Scheme (GM-GFA)

The Green Mark Gross Floor Area Incentive Scheme (GM-GFA) by BCA and URA is to encourage the private sector to develop buildings that attain the higher Green Mark ratings. URA will grant additional floor area over and above the Master Plan Gross Plot Ratio (GPR) control, up to 1% for Green Mark Gold Plus developments and up to 2% for Green Mark Platinum developments, and subject to a cap of 2,500 sqm for Gold Plus and 5,000 sqm for Platinum.

9. MND Research Fund for the Built Environment

The MND Research Fund for the Built Environment is a $50 million funding initiative by the Ministry of National Development (MND) and managed by BCA. The objective of the fund is: - To encourage and support applied R&D that will raise the quality of life and make Singapore a distinctive global city - Under the MND Research Fund, some key focus areas include sustainable development projects such as integrating solar technologies into building facades. The fund covers 30% to 75% of the qualifying cost of the project, subject to a cap of $2 million.

D WATER AND ENVIRONMENT TECHNOLOGIES

10. Water Efficiency Fund (WEF)

The Water Efficiency Fund (WEF) by PUB encourages companies to be more efficient in managing their water demand or promote water conservation in the community. For feasibility studies, PUB will co-fund 50% of the study cost, subject to a cap of $50,000. For water audits, PUB will co-fund 50% of the water audit cost, subject to a cap of $5,000. For community campaigns and programmes, PUB will co-fund 50% of organising the programme, subject to a

7 cap of $5000. Funding is also available for water recycling efforts and use of alternative source of water.

11. Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech)

The Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech) is an initiative by the Environmental and Water Industry Development Council (EWI) and managed by EDB. The Fast-Tech scheme aims to grow environmental and water start-ups by providing financial incentives and mentoring by specialized incubators. Funding is provided up to $500,000 per company or up to 85% of qualifying costs, over two years.

12. Technology Pioneer (TechPioneer) Scheme

The Technology Pioneer (TechPioneer) Scheme by the Environmental and Water Industry Development Council (EWI) aims to accelerate the commercialization of new environment and water technologies by bringing together both technology vendors and users to apply jointly under this scheme. Funding is provided up to $2 million or 30% of total qualifying costs for a technology user.

13. Incentive for Research and Innovation Scheme (IRIS)

The Incentive for Research and Innovation Scheme (IRIS) by the Environmental and Water Industry Development Council (EWI) funds Institutes of Higher Learning (IHLs), Research Institutes and Singapore companies to research and develop new environmental and water technologies (EWT) that lead to significant and sustainable growth opportunities in the EWT industry. Funding is provided up to 100% for IHLs, public sector agencies and non-profit research entities, and up to 70% for companies and for-profit research entities.

14. Environmental Technology Capability Development Programme (EnviroTech CDP)

The Environmental Technology Capability Development Programme (EnviroTech CDP) by SPRING helps local environmental small and medium enterprises (SMEs) to enhance their enterprise competitiveness and industry innovation. The EnviroTech CDP covers applied research, product development and commercialisation. Funding is provided for a portion of the project qualifying costs, which include manpower, equipment, materials, and professional services.

15. Innovation Voucher Scheme

The Innovation Voucher Scheme (IVS) by SPRING aims to encourage local SMEs to work with public Knowledge Institutions (KI) like the Centres of Innovation (COIs) to test new technology Disclaimer: The information in this paper is provided without any representations or warranties, express or implied. We make no representations or warranties in relation to the information in this paper.

8 and innovative ideas. All SMEs can apply for an innovation voucher worth S$5,000 from SPRING, which can be redeemed at participating KIs such as the Centre of Innovation in Environmental and Water Technology (EWT COI) in Ngee Ann Polytechnic, for advice and to develop new products and processes.

16. Innovation for Environmental Sustainability (IES) Fund

The Innovation for Environmental Sustainability (IES) Fund is managed by NEA and helps companies to implement innovative environmental projects. The proposed project must have strong innovation and early adoption elements, and help Singapore meet its goal of environmental sustainability. The IES Fund provides funding to cover some of the qualifying cost of the project, up to a maximum of $2 million.

E GREEN TRANSPORT

17. Land Transport Innovation Fund (LTIF)

The $50 million Land Transport Innovation Fund (LTIF) by LTA encourages research initiatives in land transport research and pilot trials for a more viable and sustainable land transport system. Funding is provided up to 90% of the total project cost and capped at $1 million per project.

F WASTE MINIMIZATION

18. 3R (Reduce, Reuse, Recycle) Fund

The 3R Fund by NEA is a $8 million co-funding scheme to encourage organisations to implement waste minimisation and recycling projects. Funding is provided up to 80% of the qualifying costs and subject to a cap of $1 million per project, and depends on the quantity and type of waste reduced or recycled.

G ENVIRONMENTAL MANAGEMENT SYSTEM

19. Local Enterprise Technical Assistance Scheme (LETAS)

The Local Enterprise Technical Assistance Scheme (LETAS) by SPRING helps SMEs to engage an external consultant to implement quality management and IT systems, including the ISO 14001 Environmental Management System standard. Funding is provided up to 50% of consultancy cost, subject to a maximum grant cap of $5,000.

H ENVIRONMENTAL INITIATIVES

20. 3P Partnership Fund

The 3P Partnership Fund by NEA aims to encourage organisations, companies and individuals from the People, Private and Public (3P) sectors to work together to develop environmental initiatives and promote environmental ownership. First-time applicants would receive no more than 50% of the eligible costs, while for other applicants, the Evaluation Panel will determine the grant to be offered based on the merits of the submission.

I CLEAN DEVELOPMENT MECHANISM

21. Clean Development Mechanism Documentation Grant

The Clean Development Mechanism (CDM) Documentation Grant by NEA encourages companies to develop CDM projects in Singapore. Funding is provided up to 50% of the qualifying cost of engaging a carbon consultant to develop a new methodology and Project Design Document (PDD), or only up to 30% if the carbon consultant develops a PDD using an existing approved methodology. The maximum amount of funding for a CDM project is capped at $100,000.

About GTAsia

Green Technology Asia Pte Ltd is a consulting company, headquartered in Singapore, with a specific practice in market introduction and market development for clean technologies into ASEAN and North Asia. www.greentechasia.com

Our team brings deep collective experience as successful and trusted practitioners in clean technologies and related areas, with a wide range of senior level contacts in industry and government throughout the region. We have a proven track record in accessing government grants, loans and subsidies for new and established technology businesses, and are ideally placed to support Canadian companies enter and grow in these important markets.

Our range of services include:

Market Readiness - Assessment of client’s market readiness, business model, investor interest - Mentoring

Local and regional market entry - Market surveys - Test marketing - Interim representation - Due diligence on sales representation, - After sales service and market support - Interim management - Local staffing

Joint ventures and licensing - Finding and assessing potential j.v.partners - Assisting in licensing agreements, licensing follow-up, valuations and IP protection

Technology co-development - Matching appropriate researchers, programmes and partnerships for technology co- development

Financing - Providing or sourcing private sector loans and equity financing - Advising on eligibility and conditions for GOS support - Assisting in accessing GOS grants and subsidies - Providing local eligibility for GOS financing where this is required - Providing local Directors for Singapore registered companies