Perspectives on Success Factors for National Energy Efficiency Programs

Dilip R. Limaye
Lead Consultant, Energy Efficiency ECO-Asia Clean Development and Climate Program Asia Clean Energy Forum Manila 20 June 2011

ECO-Asia Clean Development and Climate Program

Why National Energy Efficiency Programs?

Energy efficiency is critical to national priorities
Sustaining economic growth Meeting future energy needs cost-effectively Enhancing energy security Reducing local environmental impacts Mitigating global climate change

Despite the low cost and high potential, EE implementation has been low Many barriers to EE implementation Need for national commitment to scaling up energy efficiency Designing national programs to overcome barriers
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Implementing Energy Efficiency

Policies Legislation

National Energy Efficiency Programs

Regulations Strategies

Institutional Structures

Programs

ECO-Asia Clean Development and Climate Program

Examples of National EE Programs in Asia

Country India Programs
Energy Conservation Act, 2001 National Mission on Enhanced Energy Efficiency (NMEEE) BEE Programs for EE improvement National Energy Conservation Law Commitment to Energy Efficiency Improvement in FYPs National Demand-Side Management Regulations National Energy Efficiency Law Vietnam National Energy Efficiency Program (VNEEP)

China

Vietnam

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International Perspectives

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Recent Studies
World Bank Institutional Frameworks for Energy Efficiency Implementation (2008) IEA Energy Efficiency Governance Handbook (2010) World Bank Enhancing Institutional Governance for Energy Efficiency in developing Countries (2010) UN-ESCAP Strengthening Institutional Capacity to Support Energy Efficiency in Asian Countries USAID ECO-Asia CDCP EE Policies and Regulations in Six Asian Countries

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National EE Policies
EE policies are based on various national priorities
Country/Region North America Many EU Countries Eastern Europe Asia Priorities Shaping EE policies Energy Security Reducing long-term energy costs Energy Security Climate Change Mitigation Sustainable Economic Growth EU Accession Reducing supply shortages Sustaining Economic Growth

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Typical Contents of EE Legislation

Rationale for EE Definition of government powers to promote and enforce efficient use of energy Establishment of EE institutional structure for the EE agency Creation of a Governing body for EE agency Definition of powers and responsibilities of the EE agency Increasing information and awareness of energy efficiency Budget provisions for EE agency Creation of en Energy Efficiency Fund Development of energy efficiency standards and labeling Requirements for energy auditing Training and certification of energy auditors and energy managers Authorization for issuing implementation regulations

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Examples of Energy Efficiency Regulations

Demand-Side Management Appliance Standards and Labeling Building Codes and Standards Energy Auditing Requirements Certification of Energy Auditors Certification of Energy Managers Vehicle Efficiency Standards Data Collection and Reporting Financial Incentives Enforcement and Penalties

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Institutional Structures
MODEL DESCRIPTION EXAMPLES USA, Denmark, Thailand, China France, Sweden, Mexico, Brazil New Zealand, India, Japan, So. Africa U.K., Ireland, Greece Korea, Finland, Norway Poland, Germany Austria, Croatia

1 2 3 4 5 6 7

Government Agency with broadbased energy responsibilities Government Agency focusing on EE/RE/SE/GCC Government Agency focusing on EE only Independent Statutory Authority focusing on EE and RE/SE Independent Corporation owned by the Government Public/Private Partnership Non-Governmental Organization

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Perspectives and Lessons Learned

ECO-Asia Clean Development and Climate Program

Major Success Factors

National commitment to energy efficiency needs to be well-articulated Energy efficiency legislation Stand-alone preferable to broad energy law Legislation must be supported by strong implementing regulations Responsibilities for implementing laws and regulations must be clearly specified Creation of an energy efficiency agency Enforcement procedures are critical Public awareness and information
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ECO-Asia Clean Development and Climate Program

Success of EE Agency Depends on:

Legislative mandate Adequate budget Sufficient staff Training and capacity building of staff Collaborative relationships with other responsible government agencies Enforcement responsibilities and capabilities Strong leadership Emphasis and feedback from monitoring and evaluation of results

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Thank you
Dilip R. Limaye ECO-Asia CDCP dlimaye@attglobal.net

ECO-Asia Clean Development and Climate Program