L-Energy's Renewable Energy Certificates helping to transform Singapore's energy market
July 06, 2022 at 02:56
Singapore-based L-Energy is encouraging its customers and the public to be early adopters of renewable energy. Not only can this help them save money on their utility bills, but potentially earn an income when they go green with the use of their Renewable Energy Certificates (RECs).
A property owner who has installed solar panels or sustainable energy power systems in their factory or commercial buildings can now take full advantage of their newly installed "green" asset. Energy that was once purchased from a single power supplier can now be re-sold as an energy commodity (eco-compliant) once the owner's renewable energy source has been connected to the grid. Unconsumed excess energy generated becomes an asset to its owner.
Each REC the owner registers is equivalent to one megawatt-hour (MWh) of electricity produced from a renewable energy source. A typical example would be the rooftop of a mixed-use commercial or private property that has 200 solar panels that can produce up to 140 to 160 megawatt-hours (MWh) of electricity annually. This power supply generated on-site can be used for their plant, equipment, and daily operations or sold in the open market as RECs.
RECs generated can be sold to corporations committed to using 100% renewable energy.
This aligns with the RE100 Companies Agreement, a global initiative that unites the largest corporations committed to using only renewable energy sources for their electricity needs. The goal is to hasten the transition to widespread zero-carbon grids under the leadership of the Climate Group and in collaboration with CDP (formerly Carbon Disclosure Project).
Since the agreement was formally sealed in New York in 2014, more than 360 multinational corporations from around the world have joined the RE100, and its pledge membership numbers are growing.
A big leap forward
The move is part of a radical shift in Singapore's energy sector trends and changing consumer habits that is being driven by forward-thinkers at L-Energy.
According to COO Andy Lim, some of their customers have become "nett-electricity suppliers" to the national grid. After amortising and recouping installation and equipment costs, which on average takes 3 to 4 years, these property owners have become energy suppliers, sending their unconsumed excess energy supply back into the power grid and getting paid for it.
CBDO Bobby Cheng says that it is not uncommon to hear from their customers that they are seeing savings of 30% to 50% of their usual monthly utility bill after installing solar panels and inverters--a great cost advantage in this time of rising energy prices.
After design and installation, L-Energy continues to monitor the solar-powered systems for its customers. Following that, registration of the new asset is the next step. After that, the company trades the asset on behalf of the owners via their value-added partner platform.
Solar and alternative energy is now used more frequently in various locations across Singapore and other countries in the region. L-Energy is seeking out and forming partnerships to deliver credible renewable energy solutions. Working with government agencies, leading businesses, energy providers, and ecosystem partners throughout Asia, ensuring a better future for all.
This is a significant development for the company and its local subsidiary, Sene, which only started in 2017 by designing, constructing, and maintaining small 5 kW solar projects, primarily for Singaporean and Malaysian homeowners in the residential market.
Sene has since taken on projects that have grown in size and scope over the past five years, and as a result, their EPC portfolio now includes operations in Indonesia, Malaysia, Thailand, and Vietnam, in addition to a sizable green energy project in Taiwan.
The business is now searching for opportunities in larger international markets, which include the UK and European markets, after establishing its presence in Southeast Asia.
HRH Prince Charles of the UK gave his keynote address at the COP26 Climate Change Summit in Glasgow in 2021, which supports stricter emission and pollution control standards for the world and a stronger commitment by industries to adherence to the new changing order. Global sustainability experts are also pitching for quicker adoption of greener, cleaner energy solutions in lieu of traditional sources like fossil fuels.
The UK royal family has frequently been in the spotlight, speaking about global environmental concerns. From Prince Philip's patronage of the World Wildlife Fund to the charities and initiatives, Prince Charles has both started and been a patron of (the Prince's Countryside Fund and the Sustainable Markets Initiative in the UK, just to name a few).
Sharing this view is Mr. Wee Kuang Tai, Chairman of L Holding Limited, L-Energy's parent company. Mr. Tai is also a keen supporter of global green initiatives and sustainable energy - supporting collective change and improvement that works towards making the world a better place.
In fact, L Holding Limited had the distinct honour of being a partner of The Queen's Platinum Jubilee Beacons across the Commonwealth Nations, enabling its subsidiary L-Energy to commemorate and partake in these momentous celebrations in Singapore in early June this year.
Mr. Tai believes strongly in "creating a lasting legacy" and he admires Her Majesty Queen Elizabeth II as a true example of steadfastness and enduring leadership.
Growth and sustainability
In addition to implementing green engineering solutions, L-Energy's expansion can be attributed to its value-added services like assisting clients in registering, certifying, and monetizing their new green-energy assets through Renewable Energy Certificates (RECs).
It is anticipated that L-Energy's commercial potential will grow as more environmentally friendly laws are passed by governments and environmental issues are increasingly brought to the general public's attention.
Countries and businesses looking to trade RECs and green assets as a result of the COP26 initiatives will seek credible sustainable solutions to meet carbon emission standards and satisfy their green standards and pledges. In order to reach true sustainability at 100%, any gaps can be filled by purchasing RECs on the open market.
L-Energy, with its business focused on environmentally sound solutions, will see its acceptance across the global markets greatly enhanced. It is anticipated that the company will increase both the scope of its offerings and its commercial potential with the aid of these new opportunities.
Nicholas R. Wong
L-Energy Pte Ltd