MEDIA CENTRE

Keynote Address by Lavan Thiru at Energy Efficiency Day 2025 - Mainstreaming Energy Efficiency as the Economy’s First Fuel

Distinguished attendees,

Ladies and Gentlemen,

1. Good afternoon to all. I am excited to be here and a big thank you to PE2 for inviting Infrastructure Asia to this event dedicated to Energy Efficiency, which is a topic of significant interest to InfraAsia. 

2. Let me start with a quick introduction of InfraAsia – we are a project facilitation office fully funded by the Singapore government to support Asia’s sustainable infrastructure development. We work with like-minded partners in the region – like the PPP Center of the Philippines, Department of Energy, multilateral development banks and PE2 – to catalyse project development and financing opportunities.  

Scaling Energy Efficient across Asia as Sustainable Infrastructure

3. At InfraAsia, we view Energy Efficiency as a form of infrastructure. Energy Efficiency shares many attributes with traditional infrastructure projects, such as having scalability and replicability, and requiring long-term investments, which would often bring about systemic benefits. For example, Energy Efficiency measures like building insulation, efficient cooling, and smart grids go beyond benefitting individual buildings or homes – they help reduce peak demand, stabilise the grid, and ease the strain on our existing infrastructure. Hence, it is our view that in order for energy transition to happen, right-sizing energy demand through energy efficiency is a critical element.

4. Energy Efficiency investments often require upfront costs, but they pay off in the long run by cutting down energy consumption and lowering utility bills. This is similar to traditional infrastructure projects like roads and bridges, which also need significant initial costs but provide long-term benefits. Typically, energy efficient investments have payback periods from six to eight years.

5. The investment required for Energy Efficiency varies across countries, but the overall opportunity is substantial, with a projected one trillion-dollar investment potential opportunity in emerging markets over the next decade. According to the International Energy Agency (IEA), the global building stock is expected to grow to 415 billion square metres by 2050. Additionally, the International Finance Corporation (IFC) estimated that to meet climate agreements, three to five percent of buildings must undergo refurbishment annually to improve energy efficiency. Just for context, that number stands at 1% today, so we are talking about tripling. 

6. We are also getting more data points suggesting that Energy Efficiency increases building property values and rents¹. The reduction of energy consumption and operating costs make energy-efficient buildings more attractive to buyers and investors. Tenants are also more willing to pay higher rents for energy-efficient spaces due to the lower utility costs and improved comfort. A report conducted by the Australian Property Institute summarised the key findings of six studies on US green office buildings and concluded that overall property values were higher in green certified buildings. These studies showed a sale price premium of up to 26% and a rental premium of up to 17% for properties with improved energy performance.

7. While the investment opportunity in Energy Efficiency is vast, it’s clear that more needs to be done to close the gap as I mentioned earlier. Last year, COP29 found that the world is falling behind on the goal to double energy efficiency by 2030. With investments in renewable energy outpacing those in Energy Efficiency, the call has now been made for a threefold increase in Energy Efficiency investment by 2030. Narrowing down to Southeast Asian markets till 2030, the opportunity set for Energy Efficiency through cooling and building automation alone could be sized between 17 to 20 billion dollars.

8. Across InfraAsia’s work in Southeast Asia, countries like the Philippines, Vietnam and Indonesia have emerged as bright sparks for Energy Efficiency, with their green building codes, Energy Efficiency laws and significant emissions reduction commitments. 

9. In particular, the Philippines is a particularly exciting market for Energy Efficiency. The Department of Energy (DOE) has been actively fostering partnerships between the government and the private sector to develop and deploy energy-efficient technologies, enhancing energy conservation and management practices. PE2 also plays a crucial role advocating for regulatory advancements and improved market conditions to amplify the effectiveness of the Energy Efficiency and Conservation Act. Given that, like Singapore, the Philippines has a higher energy price, Energy Efficiency is not a good-to-have but a must-have for our economies. 

10. Recognising these regional opportunities, InfraAsia is working with partners across the region, drawing on Singapore’s experience in advancing Energy Efficiency solutions. Singapore is firmly committed to reducing emissions and meeting its 2030 climate targets, with Energy Efficiency as one of the most effective strategies². Our journey began 20 years ago with the launch of Green Mark, a green building rating system under the Building and Construction Authority (BCA), that has driven sustainable practices in the built environment. 

11. In addition, as part of our broader sustainability efforts under the Singapore Green Plan 2030, the Singapore Green Building Masterplan (SGBMP) sets ambitious targets to drive Energy Efficiency and decarbonisation in the built environment. Singapore’s '80-80-80' vision aims to green 80% of buildings, achieve an 80% improvement in Energy Efficiency for top-performing green buildings, and ensure 80% of new developments meet Super Low Energy (SLE) standards by 2030. Today, more than 50% of Singapore’s buildings have been greened, with continued efforts to accelerate progress towards these targets. 

12. One of the government’s net-zero initiatives recently announced is a $300 million investment to enhance Energy Efficiency in public sector buildings and test-bed innovative solutions. This includes retrofitting energy-consuming systems and deploying smart technologies in public offices, hospitals, and transport hubs to optimise energy use. These efforts aim to scale green technologies, reduce energy consumption, and support Singapore's low-carbon transition. 

13. Aligned with its policies, Singapore has developed a robust Energy Efficiency ecosystem:

• Our consultants provide strategy advisory, energy audits, and Green Mark certification.
• We have Singapore-based firms that manufacture energy-efficient chillers, motors (e.g., Danfoss), lighting (e.g., Signify), or provide district cooling solutions (e.g., Keppel district heating and cooling systems [DHCS]).
• In construction, companies offer low-carbon cement (e.g., Engro) and recycled materials (e.g., Samwoh).
• Over 20 accredited Energy Services Companies (ESCOs) in Singapore provide performance-based Energy Efficiency projects, ensuring guaranteed savings with minimal or zero upfront costs.
• Singapore also has a wide range of energy monitoring and analytics firms, many of them are home-grown and internationally recognised start-ups.
• Lastly, as a financial hub in the region, financial institutions and banks in Singapore offer various green financing options.
  
  

14. Singapore’s Energy Efficiency journey and ecosystem are demonstrated in a few projects. Keppel Bay Tower is Singapore’s first commercial building to achieve BCA’s Green Mark Platinum (Zero Energy) certification. The project delivered over 30% energy savings — equivalent to 2.2 million kWh annually — resulting in cost savings of about USD 300,000 per year (converted from SGD 400,000). This sets a strong benchmark for sustainable commercial buildings in Singapore.

15. Energy Efficiency efforts in business parks also play a crucial role. C&W Services, the facilities and engineering arm of Cushman & Wakefield, was appointed to conduct a comprehensive energy audit, Green Mark recertification, and Energy Performance Maintenance to improve the asset value of a newly acquired building. With C&W’s expertise, the building’s chiller plant room achieved over 15% energy savings, meeting Green Mark recertification requirements. Additionally, proactive maintenance strategies helped extend the lifespan of the chillers, ensuring long-term sustainability and cost savings. This case demonstrates the value of continuous monitoring and strategic maintenance in maximising Energy Efficiency in large commercial properties. 

16. Beyond Singapore, energy optimisation efforts have also made an impact in the Philippines. A high-end mall, developed by a leading local real estate company, partnered with a Singapore ESCO – bbp.  This resulted in a 24% improvement in chiller plant efficiency, translating to an annual energy savings of 1.1 million kWh. With a best efficiency achievement of 0.794 kW/RT, the project was completed seamlessly — without disruptions to the mall’s 24-hour operations and zero equipment replacement. This case highlights how strategic optimisation, powered by innovative solutions, can drive significant energy savings while maintaining business continuity.

17. In recent years, InfraAsia has studied market gaps for Energy Efficiency and identified key barriers to scaling Energy Efficiency. First, many building owners still find Energy Efficiency solutions capital-intensive and lack the awareness of technical and financial options. Second, while solution providers in developing countries struggle with limited alternative project financing, financiers find the ticket size of financing Energy Efficiency projects, which can be anywhere between $200,000 to $2 million, too small to justify investments due to the risks and due diligence requirements. Third, despite existing Energy Efficiency guidelines and supporting policies, weak enforcement in many markets limits their impact.
 
18. To overcome barriers, InfraAsia announced the Energy Efficiency Aggregation Platform (EEAP) in 2022. By consolidating a pipeline of projects, EEAP aims to connect key stakeholders – building owners, technology providers, and financiers, to bridge market gaps. On the demand side, InfraAsia has been working with local governments, conglomerates, and ESCOs such as Keppel, bbp, G-Energy, and ENGIE to aggregate regional Energy Efficiency projects across the region. By pooling demand, EEAP enables greater investment viability, making financing solutions more accessible. 

19. At the same time, business models for Energy Efficiency are evolving. We now see MDBs and private investors – including banks and fund managers – stepping in to finance long-term performance-based contracts, commonly known as the “ESCO model”. This model offers clear benefits, such as guaranteed energy and cost savings, and no upfront costs for the client. On the supply-side, InfraAsia is collaborating with MDBs like the IFC to curate financing solutions tailored for Energy Efficiency projects.

20. By viewing Energy Efficiency as infrastructure, governments and private investors can work together to: (i) provide dedicated funding and financing mechanisms, (ii) develop and implement policies and regulations that support energy efficiency, (iii) encourage public-private partnerships to drive energy efficiency investments, and (iv) prioritise Energy Efficiency in national and local infrastructure plans. 

21. This perspective can help unlock the full potential of Energy Efficiency as a first fuel to scale, contributing to a sustainable, resilient, and low-carbon energy future.

22. Singapore is limited by its size but the expertise that has been honed over the last 20 years is ready to work with regional partners to help realise the vision, not just from a solution provider but also from financing. The future of sustainability lies in integrated solutions like Energy-as-a-Service (EaaS) — optimising supply, enabling decarbonisation, managing demand, and enhancing Energy Efficiency. As businesses and cities push for greater resilience, collaboration is key. 

23. We welcome local companies in the Philippines to partner with us and Singapore-based firms — whether for projects locally or across Asia. By working together, we can drive innovation, unlock new opportunities, and build a more energy-efficient and sustainable future for our cities. 

24. Thank you, and I look forward to further discussions about innovative solutions, financial models and instruments capable of scaling energy efficiency across our cities.