The energy landscape in Singapore has been evolving at an increasing pace, with a focus on sustainable renewable energy at its core. From a firm reliance on oil and gas, the country has been embracing various sources of renewable energy.
Working towards the Singapore Green Plan 2030, organisations have been looking at ways to adapt their energy policies and function in tandem with the plan. Small and Medium Enterprises (SMEs), which form the backbone of our vibrant economy, are no exception.
These businesses help to contribute significantly to our nation’s prosperity, innovation, and employment, and it is of paramount importance for them to seek a variety of sustainable energy solutions and plans to help the country’s progress towards a greener future.
Profiting with policies
Whilst the aim of the adoption of renewable energy is to achieve a goal of net zero emissions by 2050, SMEs in Singapore might still struggle in even taking the first step on this journey towards a more sustainable future.
A major setback that countries across the region and the world have observed when adopting green technologies has been the upfront costs. Early adopters of renewable energy have stated that these costs have been a major hurdle in enticing more enterprises to embrace green energy, but global projections foresee a reduction in costs in the time to come for these technologies.
Despite this, many enterprises work with modest capital and wonder if the long-term benefits of embracing renewable energy sources would be worthwhile. To help alleviate the situation, the government of Singapore has set in place various policies and incentives to help bolster the adoption of these solutions.
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With a variety of grants, subsidies, and tax incentives catered to SMEs across the board, these companies can rest easier knowing that the government is enabling them to transition into sustainable energy solutions. With these incentives, SMEs will face a significant reduction in the upfront costs of adopting these green technologies, helping them get started in their journey towards a greener Singapore.
Harnessing the sun
While we understand the cost constraints that come with the adoption of new technologies, the long-term benefits of embracing such solutions save more money in the long run.
The benefit of harnessing solar energy helps SMEs greatly, especially with the country of Singapore being located so close to the equator, ensuring a steady stream of daylight throughout the year. The adoption of this technology helps SMEs reduce their electricity bills whilst enhancing their sustainability profile, which is also an attractive incentive for venture capitalists and businesses looking to invest in companies with the potential to grow thanks to a sustainable infrastructure set in place for the long haul.
For SMEs that cannot afford their own PV systems, there are various other options to help make use of clean energy via solar installations, such as Power Purchase Agreements (PPAs). Enterprises can look at entering partnerships with renewable energy developers, such as LHN Energy, to purchase renewable energy over a period that is convenient for the company, which then allows them access to clean energy bar the upfront costs of infrastructure installations on their respective premises.
A notable case study to consider is the recent 15-year Power Purchase Agreement (PPA) between Management Corporation Strata Title No. 695 (MCST 695) and LHN Energy. LHN Energy will invest in, supply, and install an approximately 352kWp Solar PV System on the rooftop of the building that houses the Textile Centre of Singapore. The renewable energy generated from the solar PV system will partially meet the building’s energy demand, reducing its carbon footprint and marking another step forward in the creation of a sustainability-conscious Singapore.
“Our drive behind this endeavour is a dual commitment: strategically managing our electricity expenses while playing our part in preserving a habitable environment for future generations. We’ve selected LHN Energy as our trusted partner due to their competitive offerings and shared sustainability vision, assuring us of their capacity and dedication to bring our green vision to fruition,” said Mr Teo Chee Ho, Stanley, Chairman of MCST 695.
Benefiting the brand
Prioritising sustainability provides companies with a competitive advantage. By demonstrating a commitment to environmental stewardship, SMEs can enhance their brand image, attracting a wider customer base, both locally and internationally, whilst securing partnerships with other like-minded businesses and, of course, potential investment opportunities from family offices and venture capitals.
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Embracing the myriad varieties of sustainable energy solutions also helps to encourage creativity and innovation within SMEs. It indubitably necessitates the futureproofing of your business, creating a forward-looking approach that looks at fostering a culture of adaptability and resilience that SMEs require to face the challenges imposed by the rapidly evolving business landscape of Singapore.
An example of ways that SMEs can look at improving their sustainability initiatives, apart from the installation of solar panels or the purchase of clean energy, is also the adoption of Electric Vehicles (EVs). A growing number of enterprises are replacing internal combustion engine vehicles with EVs for their fleet of vehicles to reduce the carbon footprint further whilst also installing and providing EV charging infrastructure for their employees and the community at large.
Embracing such solutions not only helps to enhance the brand’s image but is also a necessary step forward in the right direction towards a greener Singapore.
For a better tomorrow
In conclusion, the adoption of renewable energy solutions is fast becoming a necessity rather than a choice for SMEs and bigger enterprises within Singapore.
It not only offers economic advantages, ensures regulatory compliance with various governmental policies, and enhances competitiveness at a local and international level, but it also most predominantly contributes towards a greener and more sustainable future.
As the country looks to bear the standard of sustainability and innovation within the region, SMEs need to play their part in embracing these solutions. Through the reduction of their carbon footprint and environmental impact, SMEs can help mitigate climate change to preserve our planet for a brighter and more sustainable tomorrow for future generations to come.
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Image credit: LHN Energy
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