1. Energy Efficiency & the Energy
Future in ASEAN
Amit Bando, Executive Director, IPEEC
Bangkok, Thailand
5 June 2013

2. 1.
What is IPEEC?
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3. 2

4. IPEEC is a high level
international forum
 Provides global leadership on energy efficiency by
identifying and facilitating government implementation of
policies and programs that yield high energy-efficiency
gains.
 Aims to promote information exchange on best practices
and facilitate initiatives to improve energy efficiency.
 Formally established in 2009 at the G8 summit in
L'Aquila, Italy and resulting from the Heiligendamm
Dialogue Process.
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5. IPEEC is an
Autonomous Entity
Members account for over 80% of world GDP and energy
use.
EU
United
Kingdom
France
Germany
Italy
Russia
Canada
USA
Japan
Mexico
Republic of
Korea
China
Brazil
India
South
Africa
Australia
Established in 2009 at the G8 summit in Italy; Reports to G20, Clean
Energy Ministerial &others
Facilitates Rapid Deployment of Clean Technologies Worldwide
The IPEEC Secretariatis located in Paris, France
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6. IPEEC - guiding principles
 Improving energy saving and energy efficiency is one of the quickest,
greenest, and most cost-effective ways to address energy security and
climate change as well as to ensure sustainable economic growth
 All countries, both developed and developing, share common interests in
improving their energy efficiency performance
 There is abundant potential for international cooperation among them
 Will contribute to improvement of energy efficiency at the global level
 Developed countries need to play an important role in cooperation with
developing countries
 Accelerating dissemination and transfer of best practices, efficient
technologies and capacity building in developing countries
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7. and Services Follow Parallel
Journeys
Basic research
Applied research
Individual innovators
Demonstration
& sample distribution
General regulation
Early demonstration
Full demonstration
Marketed product
Warranted product
Small group: start-up/
unit in a company
Medium-size operation
Large scale operation
Early adopters & niches
Rational economic purchase
Technology
& market evaluation
General regulation
Specific regulation
General regulation
General regulation
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8. 2.
ASEAN’s Energy
Challenges
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9. A
Context
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10. Urbanization
 Between 2005-2010, urban
population overtook the rural
population
 rising from 49% to 51%
Urban population, Asia-Pacific subregions,
1990 and 2010
 By 2030, a majority or 2.7 billion
people will live in cities and towns
 equivalent to adding a new
town of 137,000 people every
day for next 21 years!
 In the last two decades the Asia-
Pacific urban proportion has risen
by 29%
 more than any other region
Source: Statistical Yearbook for Asia and the Pacific 2011, UNESCA
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11. Energy Intensity
 Today, Asia covers the lion’s
share of the world’s primary
energy consumption
 Between 2007 and 2030, the
region is projected to
account for 45-50% of the
increase in world primary
energy demand
Global Primary Energy Intensity (2009)
 Non-OECD Asian nations will
lead industrial energy demand
by an average of 2.3 to 2.6%
per year
 projected annual growth in
OECD nations of 0.5% / year
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12. Energy Access
 Worldwide, 1.4 billion do not have access to electricity
Almost 800 million in Asia-Pacific
 By 2030, 1.2 billion people globally are expected to remain without electricity
most of them in sub-Saharan Africa and South Asia

 Worldwide, 2.7 billion people rely on traditional use of biomass for cooking
Almost 2 billion in Asia-Pacific
 In Asia-Pacific, the number of people using biomass is likely to decrease
from the current 1.937 billion to 1.769 billion

 Global energy needs are estimated to grow > 50%

developing countries contributing to nearly ¾th of this increase
 To meet the target of achieving universal access to modern energy services
by 2030, investments of US$ 756 billion (or US$ 36 billion per year) is
needed (Source: Energy Plus Report, UN, 2012)
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13. ASEAN Energy
Production
Other renewables
700
Hydro
600
Geothermal
500
Coal
400
Mtoe
800
Gas
Biomass
300
Oil
200
100
0
1990
1994
1998
2002
2006
2010
 Oil & gas sources in Brunei, Cambodia, Indonesia, Malaysia,
Myanmar; Thailand and Vietnam;
 Coal in Indonesia, Malaysia, Philippines, Thailand, Vietnam.
Source: IEA, National University of Singapore
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14. Energy Demand Exceeds
Energy Production
ASEAN
Primary
Energy
Demand
(Mtoe)
 Increasingly, ASEAN will have to rely on energy imports;
 Coal’s importance in the ASEAN energy mix is growing.
Source: ASEAN Center for Energy, 2011
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15. Main Energy Challenges
in the Region
 Energy Security:
Coal use will increase,
 Energy consumption in the transport sector is
expected to rise from 87 Mtoe in 2007 to 300 Mtoe in
2030.
 Energy Poverty:
 Out of the 567 million people living in the ASEAN
region, 160.3 million do not have any access to
electricity.
 For example, only 10% of rural Myanmar has access
to electricity.
 Energy efficiency (EE):
 EE remains low in most sectors.
Source: National University of Singapore, 2012

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16. B
Energy Efficiency
Trends in the
Asia Pacific
Region
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17. Energy Intensity Trends
 Global energy intensity has decreased by 1.4% p.a. since 1990
 Largest reductions found in the regions with the highest energy intensities
(China, CIS and India)

Industry and power generation accounted for almost ½ of that reduction
(about 30% and 15%, respectively)
 Per capita energy consumption to 2030 is likely to grow at about the same
rate as in 1970 - 90 (0.7% p.a.)
 Energy per unit of GDP – continues to improve globally, and at an
accelerating rate
This acceleration is important as restrains the overall growth of primary
energy.
Ex: During the 11th Five Year Plan in China, through various EE initiatives,
energy consumption grew at an annual average of 6.6% compared to
average annual growth rate of 11.2% for the national economy


18. Energy Efficiency Regulatory
Trends Globally
BUILDINGS
 A EU Directive on the energy
performance of buildings (2009)
harmonised standards for new
buildings, making mandatory
buildings certificates for the sale or
rent of dwellings
Regions with efficiency standards on new buildings
 In most countries, standards exist
for both dwellings and service
sector buildings, except in Africa
and in Asia where most often
standards only apply to nonresidential buildings
Source: WEC Survey, 2010

19. Energy Efficiency Regulatory
Trends Globally - 2
LABELLING AND APPLIANCE
STANDARDS
 EU has mandatory labelling
for several electrical
appliances
 In OECD Asia and America,
about 70% of the countries
have implemented labels for
refrigerators
 In Africa, the Middle East
and non-OECD Asia, labels
are not widespread: they
exist for refrigerators in less
than 20%
Source: WEC Survey, 2010
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20. Energy Efficiency Market
Penetration
 Energy efficiency firms attracted nearly $1.1 billion in
venture capital in 2010, almost double that of 2007.*
 LIGHTING: LED is the fastest growing market at a CAGR
of 14.9% from 2011 to 2016

Asia will witness the highest growth (CAGR of 16.6%)
 BUILDINGS: EE market $87.0bn in 2012
 GREEN IT: Cloud computing revenue to continue
worldwide growth at a compound annual growth rate
(CAGR) of 28.8%


Market increase: US$46 billion (2009) to US$210.3 billion (2015)
EE measures could drive total data center energy expenditures
down from $23.3 billion in 2010 to $16.0 billion in 2020 (28%
reduction in GHG emissions from 2010 levels)
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21. Energy Efficiency
Financing Trends
 Energy Efficiency & Renewable Energy deal value rose 40% year on year in
2011
 The rise was fuelled by a big increase in US$1bn plus deals - almost all from
a wave of solar, EE and wind power deals
 The total number of 2011 deals dipped 6% year on year but still high at 570

Rebounded in 2010 off the 2009 low of 319
 Increased deal value is not just coming from the largest deals

Median deal value rose 25% year on year, from US$28.1m to US$35.2m
 Asia-Pacific targets accounted for US$4.6bn but Asia Pacific buyers completed
US$9.4bn of transactions in 2011
 Just under half of this bidder total was accounted for by the two big
European purchases by Toshiba and China National Bluestar.

22. Energy Efficiency
Financing Trends
Asia Pacific deals by sector
Source: Final Renewables Deals 2012 Outlook 2011 Review, PwC.
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23. ESCOs
 The ESCO industry in Asia Pacific is poised to grow
From $3.0 billion in annual revenue in 2009 to $18.5
billion by 2016
 421% increase from 2010 levels

Example: Despite not even being operational until 1998,
annual revenues for China’s ESCO industry to reach $17
billion by 2015, increasing its share of the APAC regional
market to over 90% (Source: Pike Research).

24. 3.
Energy Efficiency:
Opportunities &
Challenges
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25. Energy Saving Potential
in the Region
Based on a Business as Usual (BAU) Scenario & the
Alternative Policy Scenario (APS)
Source: 3rd ASEAN Energy Outlook, 2011
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26. EE Targets in the ASEAN
Region
 For the region: 15% reduction in energy intensity (2005 – 2015)
 Brunei, Indonesia, Singapore & Thailand: 20% energy intensity
reduction (2005 to 2020–2030, depending on the country)
ASEAN Primary
Energy Intensity
1990 - 2030
Source: ASEAN Center for Energy, 2013
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27. Main Barriers to EE
 Many regional organizations have overlapping mandates;
 Target of decreasing energy intensity by 8% (by 2015) for




the ASEAN region is not allocated by country or sector;
The vertical linkages in decision making need improvement:
top level decision makers are hard to reach;
EE action plans are not thoroughly developed - hinders
their timely implementation;
Overall lack of training, capacity & international expertise;
EE related data are lacking; regional information clearing
house could be established;
Source: WEACT Workshop, 2011
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28. Energy Efficiency Planning
in Asia-Pacific
Strengths
Weaknesses
•
•
•
•
• Cost of investments
• Lack of skilled personnel
• Lack of consumer awareness
on need for Energy Efficiency
• Weak in-country R & D
Increases sustainability
Increases energy security
Creates of market leader
Increases energy access
Opportunities
Threats
•
•
•
•
•
• Rebound effect (effort does
not reduce energy
consumption as planned)
• Fall in energy prices leading
to “expensive” conservation
Increased value and lifespan
Investment relief (tax)
Market for new innovations
Socio-economic co-benefits
Competitive advantage

29. Strategies to Promote EE
Strategy
Develop
EEPolicies
&Build
Capacity
Raise
awareness &
disseminateinf
ormation
Promote best
practices
Facilitate EE
Financing
1.
2.
3.
1.
2.
3.
1.
2.
1.
2.
Action
Develop clear policies and plans to promote EE.
Set nationaltargets & develop plans to monitor the
results.
Strengthen human capacity and enhance infrastructure.
Develop and run EE campaigns to raise awareness.
Disseminate information using all appropriate medias
(including energy labels).
Demonstrate best energy practices and successful
cases,
Develop regulation &/or provide incentives to encourage
best practices in facilities.
Build up capacity for all stakeholders.
Develop mechanisms to enhance financing for EE
Increase the involvement of national & international
Source: WEACT Workshop, 2011
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30. More Than Just Energy
Savings
Government Action to Promote Energy Efficiency
Sustainable
Development:
Enhanced Energy
Access
Climate Change
Mitigation:
Reduced GHG
Emissions
Energy
Security:
Reducing
Energy Use
Low Carbon Economy
•Improved air quality
• Jobs created
• Lower energy cost
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31. 5.
Next Steps?
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32. Moving Forward
Governments need to commit by:
 Providing an overarching policy framework combining mandatory
and voluntary policies and strengthening enforcement
 Promoting greater awareness of EE
 Playing an essential role as integrator of the value chain
 Establishing funding mechanisms to jump-start EE financing
 Particularly in the short term
 Institutionalizing standard-selling & enhancing professionalism within
the industry by creating proper accreditation & certification standards
 Publicizing accurate information about EE product suppliers and
ESCOs
 Removing/rationalizing other barriers that distort markets
 Such as energy subsidies
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33. Moving Forward - 2
And Businesses need to
 Move towards an integrated value chain approach where suppliers
extend their service portfolio to offer complete solutions (auditing,
installation, maintenance and financing solutions)
 Develop innovative financing vehicles for EE projects by
collaborating with financial institutions & develop expertise in EE
project financing
 Increase awareness of EE and enhance industry professionalism
 Adopt a more active role in promoting EE and in professionalizing
the industry from within by setting standards and benchmarks –
energy suppliers and ESCOs can lead effort
 Bring in the best practices from experiences in other countries –
multinationals can act as catalysts
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34. Areas where International
Expertise can Help
 Financial mechanisms to promote EE;
 Enhanced EE in industry and buildings;
 Improved energy management;
 Data collection and indicators;
 Development of policies and action plans; and
 Enhanced coordination of regional actions.
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35. Thank you for your attention!
 Any questions? Please contact:
contact@ipeec.org
9 rue de la Fédération
75739 Paris
France
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