Long-Term Savings For Short-Term Costs

Source : The Straits Times, Feb 9, 2008

SAVINGS of up to $1,000 a year on air-conditioning bills await home owners at The Oceanfront @ Sentosa Cove condominium.

Developer City Developments, known for its green condominiums, has installed energy-efficient air-conditioners at the 250-plus multimillion-dollar flats.

Although green features such as these air-conditioners and solar-powered lighting take up 3 to 5 per cent of a building’s construction cost, City Developments says it brings long-term savings in property maintenance and emissions reduction.

It has calculated that energy savings at its Sentosa Cove condominium will total $290,000 a year or up to $1,000 per apartment.

Pursuing sustainable development - in terms of infrastructure, public education and incentives - is not cheap, but green companies and environmentalists say there are long-term gains.

Apart from green buildings, another example is solar energy. It is costly to introduce, although it is the best clean-energy option for Singapore given its year- round tropical weather.

Using today’s electricity rates, the executive director of the Singapore Environment Council, Mr Howard Shaw, calculates that it will take 10 to 15 years for such an investment to turn in a profit.

But Mr Shaw argues it makes sense given the way oil prices have moved: ‘We’ve all seen how quickly oil prices escalated in recent months.

‘Placing in renewable energy infrastructure may be a way to ensure a more secure energy supply, one that will cost us less should oil prices rise to $200 to $300 a barrel,’ says Mr Shaw.

That head start can be seen in the Scandinavian countries such as Iceland, Norway and Denmark.

These countries began developing renewable energy sources like geothermal, hydroelectric and wind power after the oil price shocks of the 1970s.

Singapore took its first steps only last March when it announced a $170 million fund to research and develop clean energy projects.

MP Charles Chong (Pasir Ris-Punggol GRC) cites transport as one area where Singapore can do more.

He wants compressed natural gas (CNG), which is cleaner than diesel or petrol, to power more buses and taxis here.

But his wish runs smack into one major obstacle. There are too few points where these vehicles can re-fuel. There is only one at Jurong Island, and three more will open this year at Mandai, Jalan Buroh and Serangoon North.

It is not viable to set up more because the current number of CNG vehicles is not enough to support a wider network.

Official figures show Singapore has 334 natural gas vehicles and 381 hybrid vehicles on the road.

Hybrid cars run on both batteries and petrol. They consume 15 to 40 per cent less fuel and emit fewer pollutants than conventional vehicles of the same size running on petrol.

However, hybrids cost 10 to 20 per cent more, even with the Government’s 40 per cent rebate on their open market value, which excludes the certificate of entitlement premium and road tax that a car owner has to pay.

So, what is standing in the way of Singapore going green boils down to two main factors: high prices of green products and the absence of scale to make it viable for companies to invest.

These have, in turn, impeded consumer buy-in, says City Developments managing director Kwek Leng Joo.

Public education on protecting the environment is therefore needed to make such efforts viable, he adds.

NOT CHEAP AND NOT ENOUGH NUMBERS

What is standing in the way of Singapore going green boils down to two main factors: high prices of green products and the absence of scale to make it viable for firms to invest.