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Regional Energy Efficiency Initiatives in South Asia: A Diagnostic Assessment

Session 28: Clean Energy Access in South Asia June 08, 2012, Manila Dr. Thierry Lefèvre, CEERD

Asia Clean Energy Forum 2012 - Session 28 Mr. June 08, 2012, Manila Felix Gooneradne, IIEC

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SASEC Subregional Energy Efficiency Initiative

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Presentation Outline
• SASEC and The SASEC Cooperation on Energy
– The South Asia Subregional Economic Cooperation (SASEC) Program – SASEC Working Groups – SASEC Cooperation in Energy – Energy Efficiency Context in the SASEC Countries – Concept of the Energy Efficiency Road-Map

• CDTA 8025 - SASEC Subregional & Sri Lanka Energy Efficiency Initiative
– CDTA 8025: Objectives and Deliverables

• CDTA 8025: Initial Findings from On-going Activities
– Initial Findings per Country – Summary of Initial Findings

• Preliminary Conclusions
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SASEC and The SASEC Energy Cooperation

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The SASEC Program
• The South Asia Subregional Economic Cooperation (SASEC) Program is helping transform challenges into opportunities in one of the world's poorest, most densely populated areas. It is an initiative to promote economic cooperation between Bangladesh, Bhutan, India, and Nepal. • ADB supports the SASEC program mainly through: (i) Capacity building and institutional strengthening activities, (ii) Various regional cooperation initiatives, and (iii) ADB-financed projects and technical assistance.

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SASEC Working Groups
• At the Second High Level Forum (HLF) held in August 2010 at the Asian Development Bank (ADB) Headquarters in Manila, the participating countries from South Asia agreed, and requested ADB assistance in the three priority areas of transport, energy, and trade facilitation for regional cooperation work. • As a result, the SASEC Working Groups were constituted around these three key areas: Transport, Trade facilitation, and Energy. • The objective of the Energy Working Group was to identify and prioritize energy projects and associated technical assistance.

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SASEC Cooperation in Energy
• At the Energy Working Group Meeting held on 21 October 2011 in Bangkok, the delegates endorsed the Program for Regional Cooperation in Energy within SASEC Countries and Sri Lanka to achieve, among others, the following objectives:
– diversifying the energy resources and strengthening energy security; – increasing power generation including renewable energy; – developing a regional power grid and promoting power trading; – sharing of energy resources; – enhancing economic opportunities; and – exploring opportunities for climate change mitigation through clean and renewable energy resources, energy efficiency, and tapping benefits of CDM where feasible.
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Energy Efficiency Context in the SASEC Countries
• Energy Efficiency plays a critical role in addressing Energy Security, Economic and Environmental objectives. Some research has indicated that countries in the South Asian region could save up to 60% of energy adopting energy efficient use when compared with current consumption, while reducing the dependency to imported fossil fuel, mitigating climate change and improving air quality. • Currently, SASEC countries do not have sufficient tools to analyze more accurately the potential for energy efficiency and to give precise directions for energy efficiency policy makers. Even if the situation varies among countries, energy statistics and data from national sources are lacking, are not updated or are inconsistent; human resources in the national institutions are generally limited and cooperation between countries has focused so far on the supply side or grid interconnection issues.
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Concept of the Energy Efficiency Road Map & Regional Action Plan
• SASEC countries could definitively benefit from developing a Common Strategy for Energy Efficiency (EE). Such cooperation would have the advantages to provide a framework for country mobilization, to pool knowledge and analysis tools, to strengthen and combine the training and research capabilities, and finally, to enable benchmarking thanks to exchanges of best practices. • Therefore the objectives of a Technical Assistance (TA) and Capacity Development (CD) action would be to promote more efficient use of energy within the SASEC region through the development and use of adequate tools and of a Road Map / Regional Action Plan / Regional Master Plan for Cooperation on Energy Efficiency.

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Concept of the Energy Efficiency Road Map & Regional Action Plan (2)
The specific objectives of the CD & TA would be to: a. Enhance awareness of high level decision makers on energy efficiency benefits, policies and technologies: strong Government support is notably needed to ensure the sustainability of energy institutions, the provision of adequate human resources, the adaptation of the legal frameworks and the enforcement of laws aiming at facilitating access to sustainable data and development of statistics collection and management. b. Assess energy saving potential and provide EE tools & methods for the energy institutions / agencies staff: the implementation of a uniform set of EE tools for the SASEC countries would provide for more transparency within the common policy making processes.
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Concept of the Energy Efficiency Road Map & Regional Action Plan (3)
b. (continued) These tools would enable the definition of objectives and targets for the Region, contribute to monitoring actions and help check whether countries are on track compared to their targets. They will be needed for reporting requirements of national or international institutions such as donors or governments. c. Develop a Road Map / Regional Action Plan for Cooperation on Energy Efficiency The following flow chart (next slides) provides an overview of the conceptual approach, activities and scheduling which are the basis of the present CD & TA:

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Concept of the Energy Efficiency Road Map & Regional Action Plan (4)
ACTIVITIES
Project Kick‐off Meeting  and Inception  Workshop Fact Finding Mission to  SASEC Countries

PURPOSE
Discussion of Countries Status: Energy Policy, Database, etc. (EE, RE, Conventional  Energy…) ‐ Establish the Policy Framework ‐ Analyse Information System and Available Database  (Economy, Social, Environment & Energy) ‐ Identify Stakeholders (high level /Policy, technical  level /Statisticians, Planning officers...) ‐ Discuss with Policy Makers on desired orientation of  the project ‐ Identification of the Countries' Background and  Base Year, Energy Policies Status and future  Orientation ‐ Identification of the expected benefits from the  SASEC EE Initiative ‐ Identification of the potential contributions to the  SASEC EE Initiative
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PHASE I - APPRAISAL

Preparation of the  SASEC EE Technical  Report

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Concept of the Energy Efficiency Road Map & Regional Action Plan (5)
ACTIVITIES PURPOSE
‐ Following discussions held during the Fact Finding  Missions and the preparation of a SASEC EE Technical  Report, prepare a SASEC EE Road Map & Action Plan  ‐ Consultation with SASEC Stakeholders on the SASEC  EE Road Map & Regional Action Plan ‐ Presentation of SASEC EE Road Map & Regional  Action Plan ‐ Discussion and Recommendations for the preparation  of the Final SACEC's EE Road Map & Regional Action  Plan

PHASE II - PREPARATION OF EE&C AP

Preparation of a  SASEC Draft EE Road  Map

SASEC Energy Working  Group Meeting

Final Report: SASEC  EE Road Map and  Action Plan

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CDTA 8025: SASEC Subregional Energy Efficiency Initiative

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CDTA 8025 SASEC Energy Efficiency Initiative
• In line with precedent conceptual framework, ADB intends to develop a SASEC Subregional and Sri Lanka Energy Efficiency Initiative Road Map. For this, a Capacity Development Technical Assistance (CDTA) is available to conduct a diagnostic review of the member countries on Energy Efficiency (EE) related issues, such as:
– – – – – – database for energy supply and demand forecast, existing regulatory framework on EE, government capacity to implement EE initiatives, potential of EE investments, environmental and social issues, assessment of local technology and project development capabilities, – EE market, – local contractual framework, customs and duties, etc.
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CDTA 8025 Objectives and Deliverables
• Such diagnostic review will be utilized to develop a comprehensive SASEC Technical Report on EE situation and EE databases, which could be utilized for the development of a framework for SASEC Sub-regional and Sri Lanka EE Initiative, EE Road Map and Action Plans. • The activities to be undertaken by the Consultant include, but are not limited to:
– Inception Report presenting the SASEC Subregional and Sri Lanka experience, local developments, and demonstration of energy efficiency and conservation benefits, drawing from a desk review and discussions with the stakeholders in the SASEC member countries and Sri Lanka on their objectives and plans to enhance EE at national and regional levels.

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CDTA 8025 Objectives and Deliverables (2)
– Fact Finding Mission & Draft Technical Report: The Fact Finding Mission will help reviewing each countries on:
(i) the state and gaps of energy information systems and energy data base; (ii) the status and progress of energy policies including conventional energy, renewable energy, energy saving and conservation and efficiency; (iii) the current barriers and advantages for the development of common EE framework, benchmarking, indicators; and (iv) the vision of each of the SASEC’s countries and Sri Lanka in relation with the development of a Subregional EE initiative framework and action plan, as well as the possibility to develop a Subregional EE master plan.

The Technical Report will present the review and propose recommendations to overcome the identified problems, and a potential way forward.
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CDTA 8025 Objectives and Deliverables (3)
– Fact Finding Mission (cont.)
• The 1st Fact Finding Mission was implemented on 25-27 March in Sri Lanka, Then the following FFMs were implemented: • In India from 7 to 11 May 2012; • In Bhutan from 17 to 19 May 2012; • In Bangladesh from 21 to 24 may 2012; • The last FFM will be implemented in Nepal from 10 to 13 June 2012. • Minutes of these FFMs have been prepared and are being revised by the Countries stakeholders.

– Regional Policy Workshop (Asia Clean Energy Week, ADB)
The consultants presents the initial findings from the Fact Finding Missions to SASEC Countries and discuss with the participants on these initial findings.
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CDTA 8025 Objectives and Deliverables (4)
- SASEC Draft Technical Report: The SASEC Technical Report will include, among others:
1) 2) 3) 4) 5) 6) 7) 8) 9) Energy demand forecasts, assessment of energy saving potential; Advices on development of updated and comprehensive Subregional database on EE; Energy indicators including energy efficiency and conservation indicators as best practice; Status of EE Conservation Acts and policies; Assessment of local technical and project development capabilities; Status of ESCOs, Financial institutions, etc. engaged in EE Initiatives; Recommend the regional future action plan; and Future capacity development technical training program (if any); EE Investment portfolio in the SASEC sub region and Sri Lanka.

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CDTA 8025 Objectives and Deliverables (5)
- SASEC Draft EE Road Map: The SASEC Draft Road Map will include:
1) 2) 3) 4) The overall and country specific targets; SASEC objectives and strategies; Priority actions to be undertaken by SASEC countries; (iv) country specific action plans, expected results in terms of energy saving and conservation, and Regional cooperation for capacity development and sharing of best practices.

It will also advise for the supportive tools, such as:
1) 2) 3) A monitoring program to follow-up the action plan; Information system and a database on energy efficiency and conservation measures; Guidelines and best practices on energy efficiency and conservation.
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CDTA 8025 Objectives and Deliverables (6)
– SASEC Energy Working Group Meeting The consultant will present the SASEC Draft Technical Report on EE Initiative and the SASEC EE Road Map with recommendations for Action Plans during the SASEC Energy Working Group meeting. The documents will be finalized incorporating the input, feedback and recommendations from the SASEC and Sri Lanka Members of the SASEC Energy Working Group, and the report will be submitted for delegates’ endorsement.

The timeframe set for the implementation of this CDTA is from February to September 2012.
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Initial Findings from the on-going Fact Finding Missions to SASEC Countries

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CDTA 8025 Initial Findings - Sri-Lanka
Identification of Contributions to SASEC EE Initiatives:
• Regional Centre for Lighting (RCL): The RCL was established to be a Center of Excellence for Lighting in the region. The RCL focuses on: – Promotion of EE lighting technologies – Testing of lighting products to international standards – Catalyzing regional manufacture of EE lighting products – Training and Education to create a sustainable lighting in South Asia The RCL could be used for a variety of SASEC activities related to energy efficient lighting. • Hosting of Regional Training Programs: Sri Lanka has the capacity to host regional training programs and seminars; including the provision of technical resources. The Nodal Agency (SLSEA) could be the focal point for coordinating training programs.

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CDTA 8025 Initial Findings - Sri-Lanka (2)
Identification of Initiatives from SASEC EE Initiative:
a) Training and Capacity Building: Energy Efficiency & Conservation • Energy Auditing • Energy Efficient technologies • Energy Management • Energy Awareness Renewable Energy • RE Technologies – wind, biomass, PV, biogas • RE Technology applications and design Monitoring & Verification • M&V procedures for EE projects Service Providers • ESCO operations and services • Financial Institutions

b) Standards and Testing: Establishment of a Regional Testing Laboratory for electrical Appliances Energy Benchmarking in key sectors Development of Roadway lighting guidelines c) Other: Establishment of a Regional Center for Energy Efficiency & Conservation under SASEC that would coordinate all SASEC Initiatives. Asia Clean Energy Forum 2012 - Session 28 June 08, 2012, Manila

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CDTA 8025 Initial Findings - India
Identification of Contributions to SASEC EE Initiatives:
• Bureau of Energy Efficiency (BEE) can act like a knowledge partner for other countries to help develop/run policies on energy efficiency. • Electric Lamps & Component Manufacturers Association of India (ELCOMA) can play a key role in developing efficient lighting market in SASEC countries. • Proactive utilities like North Delhi Power Limited (NDPL) can be engaged to create awareness about DSM in other SASEC countries. • Creation of Institution like Indian Renewable Energy Development Agency (IREDA) in other countries.

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CDTA 8025 Initial Findings - India (2)
Identification of Initiatives from SASEC Regional Program:
a) Training and Capacity Building: Energy Efficiency & Conservation • Create knowledge transfer platform, in the form of workshops, seminars etc. • Training of professionals and regulators/policy-makers. Monitoring and Evaluation • Training to create Energy Auditor scheme b) Standards and Testing: Regional test labs for S&L check testing. c) Other: Creating regional excellence centers for different sectors, or to enhance existing centers like the one in Sri Lanka- Regional Center of Excellence in EE Lighting (RCL)

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CDTA 8025 First Findings - Bhutan
Identification of Contributions to SASEC Initiatives: • Operation and maintenance of mini and micro hydro power plants is one area where Bhutan (through BPC) could assist other SASEC countries who are currently embarking on Rural Electrification programmes.

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CDTA 8025 First Findings – Bhutan (2)
Identification of Initiatives from SASEC Regional Program:
a) Training and Capacity Building: Energy Efficiency & Conservation • Capacity building in Formulation of EE policy • Capacity building of technical staff within utilities • Development of targeted DSM/EE programs. b) Standards and Testing: Harmonization of EE standards for electrical appliances and capacity building in implementation c) Other: A regional activity in the transport sector using electric or hybrid vehicles could be considered under SASEC.

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CDTA 8025 First Findings - Bangladesh
Identification of Initiatives from SASEC Regional Program:
a) Training and Capacity Building: Energy Efficiency & Conservation • Demonstration project in key EE technologies • Capacity building in all aspects of EE&C including EE awareness and promotion programmes • Capacity building of financial institutions including Green Banking concepts (low interest loans based on social impacts of projects) • Low interest loans for system and technology upgrades – substations, pre‐paid metering, etc. • Development of policy on net‐metering • Establishment of an Energy Conservation Fund Monitoring & Verification • Capacity building of regulators in the area of EE and provision of required tools and equipment for Monitoring & Evaluation • Development program for professional energy auditors b) Standards and Testing: Regional testing laboratories for electrical appliances c) Other: Interaction with Indian energy agencies Asia Clean Energy Forum 2012 - Session 28 June 08, 2012, Manila

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Summary of Initial Findings

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EE Initiatives from SASEC Regional Program
(Countries Expected Benefits)
Training /Capacity Building  Sri Lanka  India  Energy Efficiency and Conservation          Energy Auditing     EE Technologies     Energy Management / DSM   Energy Policy       EE Awareness Renewable Energy        RE Technologies     RE Application and Design     RE Policy   Monitoring and Verification          M&V Procedures for EE Projects Service Providers        ESCOs operations and services     Financial Institutions   Standards and Testing          Testing Laboratory     Energy benchmarking in key sectors   Development of Guidelines   Others        Regional Center for coordinating EE&C activities     Establishment of regional test lab for S&L   Regional activity for Electric or Hybrid vehicles     Bhutan                                                Bangladesh                                              
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Proposed Contribution to SASEC EE Initiatives
(Countries Contributions)
Sri Lanka 
                       

 
a) Regional Centre for Lighting (RCL):  The RCL was  established to be a Center of Excellence for Lighting  in the region.  The RCL focuses on:  • Promotion of EE lighting technologies  • Testing of lighting products to international  standards  • Catalyzing regional manufacture of EE lighting  products  • Training and Education to create a sustainable  lighting in South Asia  The  RCL  could  be  used  for  a  variety  of  SASEC  activities related to energy efficient lighting.  b) Hosting of Regional Training Programs:  Sri  Lanka has the capacity to host regional training  programs and seminars; including the provision of  technical resources.  The Nodal Agency (SLSEA)  could be the focal point for coordinating training  programs. c)  Bureau  of  Energy  Efficiency  (BEE)  can  act  like  a  knowledge  partner  for  other  countries  to  help  develop/run policies on energy efficiency.  

India 
                       

Bhutan 

Bangladesh

   

 

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Proposed Contributions to SASEC EE Initiatives (2)
Sri Lanka  d)  Electric  Lamps  &  Component  Manufacturers   
Association of India (ELCOMA) can play a key role in  developing  efficient  lighting  market  in  SASEC  countries.  e)  To  create  regional  excellence  centers  for  different sectors, or to enhance existing centers like  the  one  in  Sri Lanka‐  Regional  Center of  Excellence  in EE Lighting (RCL)   f)  Creation  of  Institution  like  Indian  Renewable  Energy  Development  Agency  (IREDA)  in  other  countries.   g) Proactive utilities like North Delhi Power Limited  (NDPL) can be engaged to create  awareness  about  DSM in other SASEC countries.  h)  Operation  and  maintenance  of  mini  and  micro  hydro  power  plants  is  one  area  where  Bhutan  (through  BPC)  could  assist  other  SASEC  countries  who are currently embarking on Rural Electrification  programmes.

 

India                         

Bhutan 

Bangladesh

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Preliminary Conclusions

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Preliminary Conclusions
• Up-to now, only four (4) Fact Finding Missions (FFMs) have been implemented in Bangladesh, Bhutan, India and Sri Lanka, and an additional FFM will be implemented in Nepal on 10-13 June 2012. From the analysis of Initial Findings presented in precedent Tables it is possible to see that:
– Most of the benefits expected by SASEC Countries from the SASEC EE Initiative seems to be common, and are:
• Trainings and Capacity Building needs
– – – – – – Energy Efficiency & Conservation: Auditing, EE technologies, DSM, Policy, etc ..; Monitoring and Verification: M&V Procedures for EE projects; Service Providers: ESCOS, Financial Institutions, etc.. Testing Laboratories; Energy Benchmarking in key sectors; Development of Guidelines.

• Standard and Testing:

• Regional Center for Coordinating EE&C Activities. • Regional Testing Facilities for S&L. • Regional Excellence Centers for different sectors, or to enhance existing centers.

– In addition, some countries in the SASEC Region are more advanced than others in some of above fields and have offered their support and cooperation for the implementation of these SASEC Regional Activities. Asia Clean Energy Forum 2012 - Session 28 June 08, 2012, Manila

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Preliminary Conclusions (2)
• A Draft SASEC EE Road Map will be proposed and discussed with all SASEC Stakeholders taking into account the common needs and benefits expected by the Countries from the SASEC EE Initiatives, and which will also integrate the active participation of the more advanced countries from the Region in the implementation of the SASEC EE Road Map & Action Plans. It is expected that the Draft EE Technical Reports by Country will be finalized by end of June 2012, and then submitted to the comments and recommendations of the SASEC Stakeholders. A Draft EE Technical Report for the SASEC Subregion will be then finalized by mid-July 2012. A Draft SASEC EE Road Map is expected to be finalized by end of July 2012, and will be also submitted for consultation to the SASEC Stakeholders. The Final SASEC EE Road Map & Action Plans should then be available by end of August 2012, and will be submitted to the SASEC Energy Working Group Member. Final Discussion of the SASEC EE Road Map & Road Map will be carried on by end of September 2012 at the occasion of the SASEC Working Group Meeting. Final SASEC EE Road Map & Action Plan will then be available by mid-October 2012.
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Thank you for your attention!

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