energy efficiency initiatives and issues in...
TRANSCRIPT
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Energy Efficiency Hub SE4ALL Workshop on
Doubling the Rate of Energy Efficiency Improvement by 2030 : Options, Implementation Issues and Way Forward
UN City, Copenhagen
16 – 17 June 2014
Energy efficiency initiatives and issues in SE Asia
S. Kumar Professor, Energy field of study
Asian Institute of Technology
Contents Overview of Energy situation in SE
Asia (current and future (2035))
Policies promoting energy efficiency in SE Asia
Barriers to improving energy efficiency in SE Asia
Improving energy efficiency in SE Asia: Issues and Prospects
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Source: WEO, 2013. South East Asia Energy Outlook 3
Background
• The 10 member SE Asian countries energy demand rose two and a half times since 1990, and is currently 3/4ths of that of India
• SE Asean countries are very diverse with vast differences in scale and patterns of energy consumption, and in the endowment of energy resources
(Market Exchange Rate)
Source: WEO, 2013. South East Asia Energy Outlook 4
Energy situation in SE Asia • Energy use landscape
• Fuels: Oil is dominant, followed by natural gas, coal use is increasing, and biomass use is also high
• The ASEAN per capita energy consumption is half the world average, but is expected to increase
• The energy intensity in Southeast Asia improved by only 12% overall from the period 1980 to 2011. This compares with an improvement of 26% worldwide, 38% in OECD countries, 74% in China and 44% in India.
• Subsidies
• About US$51 billion in 2012. • Subsidies to oil was about 68%, and 24% for electricity
Source: The 3rd Energy Outlook http://www.energycommunity.org/documents/ThirdASEANEnergyOutlook.pdf 5
Country Industry Transportation Others Non energy Indonesia 32.4 17.2 43.4 6.9 Malaysia 34.5 42.5 16.8 6.5 Philippines 22.5 40.7 35.4 1.4 Thailand 31.8 30.5 24.7 13.0 Vietnam 21.2 16.6 60.6 1.6 Myanmar 9.9 9.8 78.7 1.7
Sector wise energy consumption of selected countries (%)
Source: WEO, 2013. South East Asia Energy Outlook 6
Energy access in SE Asia
• Per capita energy consumption in SE Asia is half that of world average
v
v v
v
v
v
Source: WEO, 2013. South East Asia Energy Outlook 7
SE Asia energy intensity trends (1980 – 2011)
• Energy intensity in SE Asia is about twice that of OECD
Source: WEO, 2013. South East Asia Energy Outlook 8
2035 Energy situation in SE Asia
• BAU
• Energy demand is expected to increase by 80% (equal to that of Japan’s)
• Oil import spending will triple (to US$ 240 billion)
• Three quarters of the new thermal power plants will use coal
• New investments for energy supply infrastructure will be around US$1.7
trillion (up to 2035), 60% in the power sector
• Energy related GHG emissions are expected to double
Source: WEO, 2013. South East Asia Energy Outlook 9
2035 Energy situation in SE Asia
• Efficient energy scenario (IEA’s WEM) • Energy demand can be cut by 15% • Oil import reduced by 700,000 bpd (US$30 billion) • 20% reduction in coal consumption in power plants (as efficient as in
Japan today) • Regional GDP will increase by 2%, due to reduced spending on energy • Energy intensity will reduce by 1.9% per year until 2035 (0.6% during
1990 - 2011) • Savings would come as follows:
• Industry (42%); Buildings (20%); and Transport (38%) • Energy related emissions will be 19% lower
Source: Tilak K. Doshi and Nahim Bin Zahur, 2013. Energy-Efficiency Policies in the Asia-Pacific: Can We Do Better?
Country Nature of target Base
year
Target
date
Japan Reduce energy intensity by 30% 2003 2030
China Reduce energy intensity by 16% 2011 2015
India Improve energy efficiency by 20% 2007 2012
Thailand Reduce energy intensity by 25% 2005 2030
Philippines Reduce total annual energy demand of
all sectors by 10%
2009 2030
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Energy efficiency targets of selected countries
• In terms of clean energy investments, ADB’s renewable energy investments were $1.4 billion in 2013, while energy efficiency investments were $853 million.
Policy categories to promote Energy Efficiency and Improve Energy Security
RD&D can improve the energy efficiency and develop new/advanced energy technologies.
Providing energy use related information, training, demonstration projects, etc.
Mostly concerned with financial support to accelerate the development and investment in clean energy projects
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Research Development Demonstration (RD&D)
Awareness, Information, Communication
Grant, Soft loan, Tax incentive, etc.
Refers to products/goods’ nameplate to certify that they are cleaner or green or environmental friendly products
To ensure high quality of new environmental friendly products for all consumers
Agreements of action in pursuit of stated environmental objectives which goes beyond the requirements of the regulator or the law
Labeling Standard Setting
Negotiated / Voluntary Agreements
Carbon tax , emission tax , and environment tax (landfill, waste disposal taxes, etc.)
the tradable certificates that verify the energy reduction.
legal requirements on power companies, industry and households with financial penalties for non- compliance.
Taxes Certificates Regulation
Source: Martchamadol J. 2012, Aggregated Energy Security Performance Indicator (AESPI) Development and Its Application to Thailand
RD&D
.
.
Labeling
Standard Setting
Negotiated /Voluntary Agreements
Taxes
Certificates
Regulation
Grant, Soft loan, Tax incentive, Investment schemes, Local measures, feed-in
Awareness, Information, Communication
Upfront measures
Subsidies
Awareness
Prescriptive
Organizational
Market-Based
Command-and-control
Vo
lum
e C
on
tro
l
Low
High
The volume control by the various policy categories
Source: adapted from Oikonomou and Jepma (2007) 12
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Proposed and existing energy efficiency policies
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Proposed and existing energy efficiency policies
Energy Efficiency Goals of selected South East Asian Countries
Source: ADB 2013, and IEA 2013
Energy Efficiency Measures
Technology Small/Large Scale Short, medium to
long term potential Type of energy
Conventional natural gas combined cycle L Short Natural gas
Micro generation combined heat and power S Short Natural gas
Advanced natural gas combined cycle L Short Natural gas
Conventional natural gas combustion turbine L Short to medium Natural gas
Conventional oil combined cycle L Short Oil
Advanced oil combined cycle S and L Short Oil
Conventional oil combustion turbine S and L Short Oil
Advanced oil combustion turbine S and L Short Oil
Coal-mine/ coal-bed methane recovery L Short Coal
Short term
Source: UNDP, 2010. Handbook for conducting Technology Needs Assessment for Climate Change
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Energy Service: Electricity Production Category: Fossil fuel based energy supply
Technology Small/Large
Scale Short, medium to
long term potential Type of energy
Compact Fluorescent Light Bulbs and LEDs S Short Energy saving tech
Solar lanterns S Short Solar
Light tubes S Short Solar
Smart controls S Short Energy saving tech
Day lighting and building design S Short Energy saving tech
Technology Small/Large
Scale Short, medium to
long term potential Type of energy
Improved cook stoves S Short Energy saving tech
LPG and LNG for household and commercial cooking
S Short Natural gas & LPG
Short term
Source: UNDP, 2010. Handbook for conducting Technology Needs Assessment for Climate Change 17
Energy Service: Lighting Category: Energy Saving tech
Energy Service: Cooking Category: Energy Saving tech and Fossil fuel
Energy Efficiency Measures
Technology Small/Large
Scale Short, medium to
long term potential Type of energy
“Smart” appliances and home automation S Short Energy saving tech
Electronic power supplies S Short Energy saving tech
Compact Fluorescent Lighting, LED S Short Energy saving tech
Solar lanterns S Short Solar
High efficiency refrigeration: multi-compressor control
S Short Energy saving tech
High efficiency PC monitors S Short Energy saving tech
High efficiency televisions S Short Energy saving tech
Short term
Source: UNDP, 2010. Handbook for conducting Technology Needs Assessment for Climate Change 18
Energy Service: Demand side management for electricity Category: Energy Saving tech
Energy Efficiency Measures
Technology Small/Large Scale Short, medium to long
term potential Type of energy
Natural gas combined cycle L Medium to Long Natural gas
Integrated coal gasification combined cycle L Long Coal
Supercritical pulverized coal steam cycle L Medium to Long Coal
Ultra-supercritical pulverized coal steam cycle L Long Coal
Medium & Long- term
Source: UNDP, 2010. Handbook for conducting Technology Needs Assessment for Climate Change 19
Energy Service: Electricity Production Category: Fossil fuel based energy supply
Technology Small/Large Scale
Short, medium to long term potential
Type of energy
High efficiency heating, venting, and air conditioning (HVAC)
S Medium to Long Energy saving tech
Energy storage technologies S Long Energy saving tech
Air-sealing S Medium to Long Energy saving tech
Energy Service: Heat for domestic and industrial use Category: Energy Saving tech
Energy Efficiency Measures
Source: ADB, 2013. Same Energy More Power, Accelerating Energy Efficiency in Asia 20
Barriers to improving energy efficiency • Policies are generally focused on voluntary measures , model projects
and awareness, less role for mandatory measures and incentives • Fossil fuel subsidies are prevalent • Institutional framework for implementation energy efficiency measures
needs to be fully developed • Minimum energy standards have been adopted in only half the
countries. • In the transport sector, there are no fuel economy standards • Diffusion of energy efficient technologies in industry sector has been
low (except in some countries in some large industries) due to financing issues, lack of capacity and awareness
• In building sector, most countries have energy codes, but their enforcement and stringency has been varied across countries
Source: TNA reports, 2012 21
Technologies identified by countries • Thailand
• Waste to power generation • Efficient industrial boiler
• Indonesia
• Efficient burners (steel industry) • Waste to energy
• Cambodia
• Efficient stoves • Efficient appliances
• Energy systems will be challenged to satisfy developing the economic aspirations.
• On its current energy path, Asia’s emissions would soon swamp global targets.
• Ensuring affordable energy for the poor is a key to inclusive growth
• The multidimensional energy challenge demands a multipronged approach.
• Nexus and co-benefit approach (besides economic and environmental reasons, social (equity, gender, well being, etc) issues will be important to promote energy efficiency. For example,
• Energy - water (agriculture) – <PV+ efficient pumps + drip irrigation>
• Energy – health (cooking) - <biomass + improved stoves – smoke> - gender
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Issues on improving energy efficiency
• How to address? • Consider the role of policy instruments – which will suit better (eg. case of
Denmark); consider co - benefits
• Technology upgradation and innovation – improving or leapfrogging (Buildings, Transport, Industry, Lighting) - SMEs
• Financing and institutional framework
• Energy management systems – holistic approach
• Behaviour – awareness, education – long term, sustainable
• Sector/geography/etc • Industry, buildings, transport
• Urban, rural – different options
• Supply side (power plants, distribution), demand side (appliances, smart grid)
• Awareness, education • Capacity building; technical skills – job creation
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Some thoughts on improving energy efficiency
