Energy Efficiency Investment Outlook and Options
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This document discusses energy efficiency (EE) outlooks, policies, and investment potentials in Malaysia. It notes that EE measures could halve energy demand growth by 2035 according to the IEA, but that 2/3 of economic EE potential remains untapped globally. The document outlines various EE investment options and models in Malaysia, including for energy service companies (ESCOs) and energy performance contracting. It also discusses barriers to EE investments and measures to encourage private sector participation in the EE industry.
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Energy Efficiency Investment Outlook and Options
- 1. By ZAINI ABDUL WAHAB CONNECSYS SDN BHD Palace of Golden Horses 10th June 2015
- 2. EE OUTLOOKS & POLICIES OUTLOOKS ON EE INVESTMENT POTENTIALS ESCOs in EE INDUSTRY INVESTMENT OPTIONS IN EE INDUSTRY THE PRACTICAL APPROACH OF TO IMPLEMENT EE INITIATIVES AT ORGANIZATIONS BARRIERS & COUNTER MEASURES TO GROW INVESTMENTS IN EE INDUSTRY WHAT’S NEXT?
- 4. Economically viable efficiency measures can halve energy demand growth to 2035 Source: IEA
- 5. EE potential used by sector in the New Policies Scenario 2/3 of the economic potential to improve EE remains untapped in the period to 2035 Source: IEA
- 6. Source: McKinsey Global Institute Analysis 2010
- 7. Source:Global Insight, IEA McKinsey Global Institute Analysis Malaysia don’t have EE policy yet & urgently need one!
- 8. 1,327 1,273 1,192 1,101 1,101 1,059 1,059 1,000 978 951 1,036 1,013 1,013 985 1,049 1,091 1,051 1,0701,077 1,037 1,044 1,021 1,059 1,036 1,038 1,050 1,131 1,142 1,345 1,405 1,467 1,566 1,573 1,438 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 Fiscal Year Primaryenergyconsumption/GDP Ton oil eq. / Billion yen 2nd Oil Crisis 1st Oil Crisis Source: METI/General Energy Statistics 10 years Improvement by 30% 10% improved for 20 years Main Improvements: 1. Energy Management 2. Energy Efficient Equipment 3. Efficient Processes Technologies 4. R&D
- 9. Through strong regulatory implementation framework, sustainable funding & holistic approach for focused sectors
- 10. Source: American Council for an Energy Efficient Economy(ACEEE)
- 11. Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings UNEP - GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company. University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business 2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year. 70% inquiries focused on energy management and greenhouse gas emissions & more than ½ questions about sustainability reporting Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year. TOWARDS GREENER BUSINESS PRACTICES & MARKET DEMANDS
- 14. There is a need to have a dedicated policy on EE at the national level &recommended in studies NO SPECIFIC ENERGY CONSERVATION/EFFICIENCT POLICY AT NATIONAL LEVEL
- 15. source: National Energy Security Forum 2012
- 16. Energy demand projected to increase from 2,000 PJ(2009) to 4,013 PJ(2030), average rate of 3.6% /year Short term &long term measures that can be taken is through EE initiatives while working on looking for new energy sources (RE& alternative energy) To balance and reduce the supply and demand gap Source: EPU WE NEED TO CREATE THE EE LINE! TO QUANTIFY!
- 18. EE improves › energy security › fosters economic gains › to reduce human- induced CO2 emissions Policies designed to increase EE have already delivered significant benefits in many countries Worldwide energy consumption › would be 56% higher today if without the various EE policies that have been implemented since 1973 (IEA, 2007a)
- 19. EE Energy Management Energy Management System Consultancy/Advisory Standard &Certification Performance Measurement & Verification EnMS Tools Hardware (meters , sensors & etc) Software (Computerized EnMS) Energy Engineering Energy Efficient technologies Testing, Rating & Labeling R&D, TQM Manufacturing Energy Auditing Capacity Building Education & Awareness Training & Development Policy Policy research & development Regulatory Fiscal & Financial Investments & Funding Analysis & Evaluation
- 20. ALTERNATIVE ENERGY SOURCES High costs ENERGY EFFICIENT TECHNOLOGY SOLUTIONS Medium-high costs Require financial & investment risks assessments SAVE THROUGH BEST PRACTICES & CULTURAL CHANGE – ENERGY MANAGEMENT Low-no costs MORE POLICIES & SUPPPORT MEASURES REQUIRED FROM THE GOVERNMENT TO ENCOURAGE INVESTMENTS FROM PRIVATE SECTOR
- 21. Typical manufacturing companies* can improve their profit margins by 2% within 3 years
- 23. The total market size = US$6.7 billion; Industrial = US$2.9 billion(44%) Commercial = US$3.7 billion(56%) source: www.reexasia.com Biggest potentials in the industrial sector
- 24. Ranked #1 in investment potential & #4 in payback period due to Malaysia’s lower electricity tariff Lagged behind Singapore &Thailand to unavailability of comprehensive regulatory support
- 26. No. Building Year Potential Savings (RM) Implementation Costs (RM) ROI (Year) 1 Ministry Of Health 2010 740,652 1,546,545 2.0 2 MAMPU 2010 254,500 964,737 3.8 3 Ministry Of Human Resource 2010 195,146 405,180 2.1 4 Public Service Department 2010 174,480 897,000 5.1 5 Ministry of Natural Resources &Environment 2010 316,440 963,500 3.0 6 Ministry of Finance 2008 355,892 2,326,259 6.5 7 Selayang Hospital, Selangor 2008 1,612,800 3,294,350 2.0 8 Kuala Lumpur General Hospital, Kuala Lumpur 2008 2,538,705 8,423,740 3.32 9 University Malaya Medical Center, Kuala Lumpur 2008 4,477,067 622,500 0.1 (Source: KeTTHA,2011)
- 27. Investment Tax Allowance (ITA) Pioneer Status for companies that provide energy conservation services Sales & import tax exemption for EE products for EE projects implementation Sales tax exemption for locally manufactured EE appliances (ended in 2012) Implementing Agency: › MIDA & Energy Commission
- 29. An Energy Service Company(ESCO) Develop and implement turnkey, comprehensive EE projects ESCOs offer performance-based contracts (i.e., contracts that tie the compensation of the ESCO to the energy savings generated by the project) as a significant part of their business To ensure credentials, ESCOs must demonstrate the technical & managerial competencies to design & implement projects involving multiple technologies : Lighting Motors & Drives Heating & steam systems HVAC Systems Control Systems Maximum Demand Controls Building Envelope Improvements …at building/industrial facilities
- 30. For EPC Projects Project Funding & Financing Options Engineering & Economic Feasibility Studies Project Design, Engineering & Permitting Project Construction Project Commissioning Operation, spare parts & Maintenance Performance measurements & monitoring Energy performance reporting Consultancy & Advisory Regulatory Compliance Standards & Ratings
- 31. Source: Lawrence Berkeley National Laboratory , National Association of Energy Service Companies, USA September 2013
- 32. Established Registered in September 2000 OBJECTIVES To develop recognized ESCO businesses in collaboration with Government & private sectors. To actively promote the activity of cost reduction and efficiency standards of the industrial and commercial sector To oversee the well being of it’s members To facilitate and do all things necessary towards developing successful energy related projects. To introduce related products and services for the industry To foster healthy co-existence amongst members through ethical professional practices Ensure prestige of services by members www.maesco.org.my
- 34. The foregone benefits represent the ‘opportunity cost’ of failing to adequately evaluate & prioritize EE investments Larger opportunities & increasing global demand, stress on resources & climate concerns-costs that we cannot afford to bear The failure to properly evaluate the benefits of EE likely results in under investment in EE
- 35. •2011-present •PEMANDU-KeTTHA - Energy Commission EPC Program for government buildings •2014-present •MIGHT-MAESCO-Melaka Green Tech Corp. EPC Program for private sectors in Melaka •2010-2016 •JKR(BSEEP Project Team)-UNDP Building Sector Energy Efficiency Project: EE Demonstration Projects •2012-present •KeTTHA LED Lighting Retrofitting Program for government building Delayed until today due to unavailability of the mechanism to pay ESCOs Delayed until today due to the lack of national level EE policy & regulatory framework
- 36. System/ equipment optimization New & energy efficient designs & operational features Retrofitting for energy efficient technologies Renewable Energy options
- 37. LOAN CONVENTIONAL PROCUREMENT ENERGY PERFORMANCE CONTRACTING Performance Guarantee Model GRANTS ENERGY PERFORMANCE CONTRACTING Shared Saving Model PUBLIC PRIVATE PARTNERSHIP INTERNAL EXTERNAL EXTERNAL & BY THIRD PARTIES ENERGY PERFORMANCE CONTRACTING Special Purpose Vehicle
- 38. Traditional Integrated Energy Services Model Source: Government Property Group ,Integrated Energy Efficiency Retrofits and Energy Performance Contracting ,Australia,2011
- 39. “Energy Performance Contracting is when an ESCO is engaged to improve the energy efficiency of a facility, with the guaranteed energy savings paying for the capital investment required to implement improvements”
- 40. Source: Government Property Group ,Integrated Energy Efficiency Retrofits and Energy Performance Contracting ,Australia,2011
- 41. GUARANTEED SAVING Facilities owner takes out “normal” loan (will appear on balance sheet) ESCO guarantees loan can be repaid with savings ESCO pays difference if minimum savings not met Main advantage: ESCO can undertake more projects SHARED SAVING Facilities owner does not take loan (will not appear on balance sheet) ESCO finances project: takes performance & credit risk Facilities owner pays higher % to ESCO Main advantage: Independent of Facilities owner ’s borrowing capacity
- 42. Energy Cost savings based on ACTUAL & MEASURED data-before & after CAPABLE ESCO UNDERSTANDING of the how EPC works & it long term benefits by facilities owners COMPREHENSIVE EPC Contract Document TRUST & TRANPARENCY in strategic partnership to reduce business costs Commitment to get FASTER results!
- 43. Federal, State & local governments in the US invested over $21 billion in EPC since 1997. US Federal Government’s 2009 economic stimulus package-additional $3.1 billion for efficiency in existing federal government buildings Federal & State governments have passed specific laws to facilitate EPC & accept up to 15-20 year payback periods. Research found that EPCs have delivered general benefit to cost ratios of 1.6 to 1, with higher 2.1 to 1 ratios for EPCs in health facilities.
- 44. Victorian Government- Greener Government Buildings Program in 2009. Aimed to save $1 billion in energy & maintenance costs in 25 year To reduce emissions from government buildings by 20% by 2020. A simple government-wide protocol for the EPC process Loans for agencies to implement energy efficiency upgrades Establishing a facilitation unit in the Department of Treasury & Finance A mandate for all agencies to implement energy efficiency upgrades at sites accounting for 20% of agency energy use by 2012 and 90% by 2018. Commenced with a trial EPC covering 16 office buildings, and is now being rolled out across agencies Invested $160 million in 4 years
- 45. Development of manuals on additional models & support-EPC + White Certification › Quality Standards › Comprehensive Refurbishment & link to Facility Management › Norms /Certification › Financing Intensive dialogue with market actors - Building owners - Financial sector - ESCOs Capacity building & Increased awareness, know-how & exchange › Over 100 events organised & created new EPC experts. Pilot projects › 360 buildings screened › 30 more concrete projects received further support › 17 resulted in concrete EPC projects › About 1 million square meters › Energy cost baseline of almost 10 million Euros/year › Estimated energy savings between 10% and over 25%
- 48. Viewed as “Infrastructure Investments” – LOW PRIORITY VS. CORE BUSINESS – don’t fix if not broken Funding through loans/debts WILL IMPAIR “CREDIT CAPACITY” from core business – NO WAY for SMEs/SMIs BENEFITS ARE TOO SMALL TO APPEAR ON CEO’S RADAR SCREEN & to justify “perceived’ operating complexities/risks NOT CONVINCED ON ACTUAL COST SAVINGS ACHIEVED nor aware of proven Measurement & Verification(M&V) methods to ensure sustainability of savings.
- 49. EE programs help manage energy risks - reducing exposure to the high costs of sourcing, transport & energy-intensive upstream products
- 50. MANAGEMENT COMMITMENT ENERGY POLICY PLANNING IMPLEMENTATION & OPERATION SYSTEM & PERFORMANCE CHECKING MANAGEMENT REVIEW Energy saving measures – to bring results in improving energy performance & cost reduction! No management commitment = less impacts = forget it!
- 51. •CEO shows strong & ongoing enthusiasm for EE •To achieve significant results ENSURE TOP MANAGEMENT SUPPORT •Giving the program its own budget responsibility ALIGN RESPONSIBILITIES& BUDGETS •set up new metrics & tools to measure energy consumption •quantify the success & benefits CREATE DATA TRANSPARENCY & INSTALL TARGET TRACKING
- 53. •Clear policy & targets •Comprehensive regulatory & implementation framework •Competencies in institutional set up Strong governance in policies implementation •Competency programs •Career opportunities Technical competencies & human resource capacity •Sources of funds •Understanding risks & mitigating factors in EE investments Sustainable financing & business friendly mechanisms •On green practices •Business opportunities •Impacts to climate change mitigation Information ,education &awareness •Funding •Academic vs. Commercial valuesR&D & commercialization
- 54. SMEs & SMIs - energy audit and guidance Measurement & verification of performance Technical assessment from other ministries/agencies on EE projects for financing /further approval Registration & deployment of experts Fiscal incentives Low interest loans with government guarantee Grant based on annual government budget for specified initiatives and awareness programs Technical Assistance & Advisory Incentives & Financial Assistance
- 55. No Silver Bullet! Public-private Partnership Creating A Market Strong Political Will The Importance Of National Context PROMOTING ENERGY EFFICIENCY INVESTMENTS THROUGH POLICIES IMPLEMENTATION: CASE STUDIES FROM IEA
- 57. CONSERVING NATURAL RESOURCES FOR PRESENT & FUTURE GENERATIONS ADOPTING THE SUSTAINABLE CONSUMPTION & PRODUCTION CONCEPTS Source: RMK11,EPU STRENGTHENING RESILIENCE AGAINST CLIMATE CHANGE & NATURAL DISASTERS STRENGTHENING THE ENABLING ENVIRONMENT FOR GREEN GROWTH
- 58. FORMULATING A COMPREHENSIVE DEMAND SIDE MASTER PLAN EXPANDING DEMAND SIDE MANAGEMENT MEASURES Industries Buildings Households Electrical Energy Transport Energy Thermal Energy
- 59. Strong Governance & regulatory framework Financing & business friendly mechanisms Accountable & competent implementing agency Information, Education & Awareness R&D & Commercialization ENERGY EFFICIENCY Industry Growth Policy Targets Policy Introduction Focused Sectors +Industry Players + Consumers Industry players just need the basic & right “infrastructure” & supports. We can take it from there!
- 60. Look and act on EE holistically & urgently for prioritized ENERGY USERS…not with project-based approaches Consistency, accountability & empowered responsible agency Clear policy goals & targets Commitment on FUNDING resources & mechanism Strong governance & comprehensive regulatory framework Inclusiveness in policies development & reviews
- 61. INTRODUCTION OF POLICY, LAW & AWARENESS IMPLEMENTATION & SUPPORT MEASURES FROM THE GOVERNMENT PERFORMANCE MONITORING& IMPROVEMENTS IMPROVED •National Energy Performance •Competitiveness/ profits •Environmental quality REDUCED •Energy consumption & costs •Pollution & CO2 emission level CREATED •Business & job opportunities •More experts/workers from energy efficiency industry •New source of economic growth •More Direct Domestic Investments
Editor's Notes
- EE/energy saving is the first fuel-a source of energy instead of the an option in O&M activities. Think about it after we consumed the energy or only when we need it
- Which is better for utility companies? Managing current assets with maximized and efficient utilization by the demand(users) or Having to add new assets just to me the increasing demands and facing uncertainties on the business outcomes in the regulated market. Example: In Malaysia, tariff increase purely subject to the government’s decision and directly linked to political climate
- We embrace changes or we will be struggling or out of the business
- Climate mitigation: reducing Malaysia’s carbon footprint To achieve the voluntary target of reducing greenhouse gases (GHGs) emission intensity of GDP by up to 40% in the year 2020, compared to 2005 levels, various mitigation measures were undertaken during the Tenth Plan. Exhibit 6-1 shows Malaysia’s GHGs emission intensity of GDP and per capita in 2011. The Renewable Energy Act was enforced in 2011 to accelerate contribution from green energy such as solar photovoltaic (PV), biomass, biogas and mini hydro in Malaysia’s electricity generation mix. The Act, which enabled the introduction of FiT for RE, has increased installed capacity between 2009 and 2014 fivefold to 243 MW. As of 2013, this initiative reduced GHGs emission by 432,000 tonnes of carbon dioxide equivalent (tCO2 eq). At the same time, energy demand management through the Minimum Energy Performance Standards (MEPS) for domestic appliances was gazetted in 2013. The implementation of the Sustainability Achieved via Energy Efficiency (SAVE) Programme (2011-2013) has reduced energy consumption by 306.9 gigawatt hour (GWh) as shown in Exhibit 6-2. This has resulted in GHGs avoidance amounting to 208,705 tCO2 eq. The retrofitting of four government buildings has reduced electricity use ranging from 4% to 19% monthly, equivalent to RM7,000 to RM130,000 savings.
- http://christopherteh.com/blog/2012/10/electricity-msia-04/
- Substantial direct and indirect savings Energy is one of the few remaining opportunities to reduce costs in manufacturing. Energy accounts for about 5% of costs for an average manufacturing company, more in energy-intensive industries. An energy-efficiency program can save between 10% and 30% of those energy costs within three years. Indirect savings from reduced maintenance, materials, waste and risk increase the benefits, combining to effectively cut direct energy costs by about half. Tax reductions and government incentives boost the savings further in many countries. Most savings come from adapting equipment and processes. In production, typical efficiency measures include more effective motors, drives, boilers, furnaces, pumps, compressors, and ventilation and heating systems. Energy recovery systems can help reduce demand. On-site generation can also reduce costs, and, in some places, manufacturers can sell power back to the grid when they produce more energy than they use. A plan to use energy flexibly, reducing usage during peak times, saves even more.
- www.maesco.org.my
- The failure to properly evaluate the benefits of EE likely results in under investment in EE. The foregone benefits represent the ‘opportunity cost’ of failing to adequately evaluate and prioritize EE investments. This opportunity cost may be very large, and in particular in a context of increasing global demand, stress on resources, and climate concerns, they may represent a cost that we cannot afford to bear.
- Delayed until today due to unavailability of the mechanism to pay ESCOs
- INTERNAL
- Traditional methods The traditional way to deliver energy efficiency upgrades (on the left) generally involves: A government agency procures an energy audit from an engineering consultant or specialist auditing firm. If the audit identifies significant opportunities, the government agency then seeks funding from central agencies. The project often stalls at this point. If the agency secures funds, they then hire contractors to undertake or project manage the works. Once the works are implemented the project ends. Integrated Energy Services Model The Integrated Energy Services process (right) instead focuses government effort on developing a whole-of-government protocol and selecting a lead contractor: The government establishes a whole-of-government protocol for energy efficiency upgrades. This includes establishing access to capital for energy efficiency upgrades that meet a pre-determined return on investment (ROI) target, typically between 7 and 15 per cent per annum. An agency seeks expressions of interest (EOIs) from energy service companies (ESCOs) covering their competencies and previous experience The agency selects three ESCOs to undertake an initial, and free, assessment of energy efficiency opportunities (a ‘Request for Proposal’ (RFP)). Based on these assessments, the agency selects a preferred ESCO. The successful ESCO undertakes a detailed assessment of energy efficiency opportunities (a ‘Detailed Facility Study’) and presents the agency with a set of measures that they guarantee will deliver a certain level of energy savings. If the agency agrees to proceed, the ESCO implements the energy efficiency upgrade and may provide ongoing management of these measures. Alternatively, the ESCO may assist the agency to hire subcontractors to implement the upgrade and help the agency develop a management plan. The ESCO or an independent auditor will monitor and verify the energy savings. This provides a level of surety of actual performance outcomes. Ideally, the contractor and agency form a close partnership with a shared goal to maximise ongoing energy and cost savings. There are a number of options within this type of Integrated Energy Services model, including Energy Performance Contracting (EPC). EPC has the additional benefit of ongoing maintenance and guaranteed energy saving results, with the ESCO underwriting shortfalls in savings if the project does not achieve the agreed objectives. However, in some cases other forms of integrated provider contract may be more suitable (see p6).
- A government-wide energy efficiency upgrade process would deliver the following financial benefits: Direct cost savings from reduced energy use Avoided future costs through reduced exposure to electricity price rises The diagram below shows a hypothetical energy efficiency project and illustrates the benefits that accrue over time through investment in energy efficiency initiatives. The upper curve shows the business-as-usual (BAU) case which shows the cost of supplying energy to a certain facility. In this scenario, costs are increasing over time in line with current forecasts of growth in energy consumption and increases in energy tariffs. At the start of year 1, an energy efficiency contract project is implemented, cutting the site’s energy consumption by 30 per cent. Hypothetical Scenario – energy efficiency costs and savings For illustrative purposes only, it is assumed that the capital cost of the energy efficiency contract is $10 million, with 30 per cent savings on energy costs guaranteed by the ESCO over a payback period of 7 years (i.e. direct cost savings delivered by the project accumulate to the value of the initial expenditure over seven years). In this example there is a cost saving of $1.43 million every year to the customer through reduced energy use, which accumulates to $10 million over the seven year payback period. Energy savings are guaranteed under the project at the current energy price (i.e. year 1 prices). These savings are reflected in the blue area of the chart as the ‘loan repayments’, as the energy savings are used to pay back the initial investment required to undertake the project. Once the loan has been repaid, these funds are then available for other purposes. The green area represents the net recurrent annual savings realised beyond the payback period for the project, as energy use for the facility will theoretically remain at the reduced level (i.e. at 70 per cent of the BAU cost) in perpetuity. Both the blue and green areas refer to a ‘real’ cost saving to government (i.e. money that can be used by the customer for other purposes). The white area directly below the BAU line represents the costs
- The cost savings measurement with significant changes of operations at the facilities. The responsibilities of building owners and the ESCO throughout the contract period. Maintenance, use and modification/ removal of the equipment that was installed by the ESCO by the facilities owner. If the equipment installed by the ESCO is lost or damaged Guarantee of losses and liabilities by ESCO to the facilities owner.
- Securing the base of economic activity BP’s Energy Outlook 2030 predicts that global energy consumption will grow nearly 40% by 2030. Dwindling resources and the rising share of renewable sources will push energy prices up, increasing costs for production, logistics and energy-intensive commodities. Thus, a company’s exposure to energy costs is often much higher than its utility bill, increasing the relevance of efficiency as a key element of strategy. Energy-efficiency programs help manage energy risks by reducing exposure to the high costs of sourcing, transport and energy-intensive upstream products. They help balance demand across different energy sources and providers. On-site cogeneration and long-term supply agreements can reduce demand per output and keep energy costs predictable (see Figure 4). Gaining a better overview of energy market opportunities and upcoming regulatory schemes will help companies remain competitive. For example, they may be able to cut costs by managing demand more intelligently, reducing consumption during peak load times and increasing production when supply is ample.
- basic components in energy management system
- Ensure top management support Unless the CEO shows strong and ongoing enthusiasm for EE, middle managers will show lackluster support for an effort that delivers only marginal savings. Align responsibilities and budgets Often, one unit must invest in efficiency while another unit reaps the savings—a problem if the program’s budget is distributed throughout the company. Giving the program its own budget responsibility can help organizations avoid this fragmentation. Create data transparency and install target tracking Companies often have to set up new metrics and tools to measure energy consumption and to quantify the success and benefits of efficiency programs.
- No SILVER Bullet No single policy category or policy measure can overcome the financial barriers alone. Policy packages-to address multiple financial barriers & making it more relevant, have greater impact, and be more sustainable PPP Allow different barriers to be addressed concurrently and increase the impact of a policy on market transformation. As such they allow more sustainable changes. Creating a market increasing the energy efficiency of buildings in a sustainable manner requires the existence of a market for energy efficiency. This market is currently weak and perceived as too risky. It will require strengthening and increased certainty before private actors are willing to engage further. through policies which combine regulations to be met Voluntary agreements industry players to improve the EE standards of facilities, equipment and appliances. Liberalise the energy supply and services markets to encourage the creation of a market geared towards increased EE Strong political will Market transformation however will not take place without increased involvement from the private sector. Strong political will is required to trigger such increase in private participation. The need for governments to create more favourable conditions for public-private partnerships by increasing certainty through risk-sharing instruments and the promotion of the systematic application of an international framework of measurement and verification protocol The importance of national context the role of national contexts in determining the success and/or failure of any given policy. The specificities of the buildings stock — i.e. whether it is largely inhabited by owners or renters — as well as the energy profile or political structure of a country, are all key features to be considered when designing policy packages the crucial need for policy makers to collect data in a systematic way at the end of each policy programme. Adequate ex-post data is still very scarce and renders comparison between measures and countries much more difficult. Such systematic data collection would enrich future policy analysis
- Source: RMK11,EPU Conserving Natural Resources for present and future generations Adopting the sustainable consumption & production concepts
- ENHANCING DEMAND SIDE MANAGEMENT FORMULATING A COMPREHENSIVE DEMAND SIDE MASTER PLAN ELECTRICAL THERMAL TRANSPORTATION EXPANDING DEMAND SIDE MANAGEMENT MEASURES INDUSTRIES BUILDINGS HOUSEHOLDS
- Look energy management as another business opportunities and for future source growth Energy efficiency as an industry – the future and integral element synchronized in asset management