A presentation for: Conference on Energy Efficiency and Conservation Technologies in Indonesia

(Business Sourcing and Matching Opportunities and Networking Lunch with Business Sector) Hotel Indonesia Kempinski, Jakarta, Indonesia

20 October 2014

EE&C Initiatives in the ASEAN Region

Content

Introduction

ASEAN’s Energy Situation

ASEAN’s Energy Outlook

EE&C Programme in ASEAN

AJEEP Programme

Conclusion

INTRODUCTION

ASEAN’s Profile

2013pl

Population: 625,096 thousand GDP (current price): 2,398,550 US$ million GDP growth: 5.1 percent GDP per capita (current prices): 3,837 US$ Sources: ASEANstats, ASEAN Secretariat

ASEAN Centre for Energy (ACE) Based in Jakarta, Indonesia under the guideline of Governing Council composed of the Senior Officials on Energy (SOE) Leaders of the AMS, envisioned as a catalyst for the economic growth and development of the ASEAN region by initiating, coordinating and facilitating regional as well as joint and collective activities on energy.

ENERGY SITUATION

ASEAN Energy Situation

Total primary energy supply increased from 323 MTOE in 2002 to 620 MTOE in 2011, with growth at 7.5% per annum

• Oil remains as the major energy source in the ASEAN but its growth was relatively slower than others/new and renewable and coal at 7.2% per annum. As a result, its share in the primary energy mix decreased from 43.7% in 2002 to 41.4% in 2011

Primary Energy Mix

ASEAN Energy Situation

Final Energy Consumption

By Sector:

Energy consumption increased at an annual rate of 7.0% from 213 MTOE in 2002 to 390 MTOE in 2011

The other sector: residential and commercial, had the fastest growth at an average annual rate of 8.7% resulting to its increased share of total final energy consumption.

By Fuel Type:

Energy consumption of others which is mostly biomass was the fastest growing at 13.9% per annum

Oil remained as the dominant fuel in final energy consumption but has slower growth rate at 4.1%.

ASEAN Energy Situation

Energy Trade

ASEAN primary energy production was about 707 MTOE in 2011, increased significantly from 420 MTOE in 2002 with annual average growth rate at 6.0%. Natural gas dominated the share

Indonesia, Malaysia and Brunei Darussalam are major sources of natural gas of Japan, South Korea and Chinese Taipei

Source: ASEAN Energy Review and Statistics 2013, ACE

The ASEAN as a whole is a net energy exporter although five of the member states are large energy importers

In terms of oil, the region has become a net importer in 1995 as the rapid increase in oil demand was not matched by oil production

During the year, the ASEAN net oil import of was equivalent to 5.3% of its consumption or 7.9 MTOE

ASEAN Energy Situation

Energy Mix for Power Generation

ASEAN total energy mix for power generation in 2011 was about 169 MTOE, increased slightly from 98 MTOE in 2002, with annual growth rate at 6.2%.

The substantial changes in the share could be attributed to the policies of the government of most member states to reduce electricity generation from oil.

ASEAN also increased its electricity generation from other sources such as geothermal, hydropower, wind, solar and biomass.

ASEAN Energy Situation

Energy Indicators

Source:

AERS 2013, ACE;

WDI 2013, World Bank;

ASEAN Statistics, ASEAN Secretariat

TPES/Pop. 6.03

TPES/GDP,MER 2.00

TPES/GDP, PPP 1.94

AAGR (%)

Ele cons./pop. 4.60

TFEC/pop. 5.48

TFEC/GDP, MER 1.47

TFEC/GDP, PPP 1.41

AAGR (%)

ENERGY OUTLOOK

ASEAN Energy Outlook

Coal will have the highest growth as demand increases in Industry and Power Generation, but due to Transport use Oil will keep its dominance.

Geothermal rise in Indonesia and Philippines, hydropower in Great Mekong Sub-region, and Nuclear in Thailand and Vietnam.

APS TPES will be 18.5% lower than that of BaU by 2030.

Primary Energy Supply: RE shines, but Fossil Fuels keep its dominance

ASEAN Energy Outlook

Final Energy Consumption By Sector: Will grow 195% (BaU), driven by fast growth of

transport sector and increasing per capita income.

But, in APS, Transport demand will be 22.4% lower, Industry 19.3%, and Other sectors 14.5% (In total APS demand will be 17.2% lower than BaU).

By Fuel Type: Oil will remains as the most used fuel ≈ 45%

share by 2030 (both in BaU and APS). By 2030, in the APS, the oil demand can be

reduced by around 18.6%, coal 20.3%, electricity 17.4%, and natural gas 12.6% from BaU.

ASEAN Energy Outlook

Power Generation: Coal and Gas will continue to form bulk of supply Projected to increase 4x by 2030,

Coal and Oil will remain as the backbone of regional electricity generation.

The role of oil will become minimal due to diversification programs in favor of alternative fuels and renewable energy.

Energy Efficiency: Recent plans would make a difference but are they enough? Energy saving goals set by the governments of the 10 ASEAN Member States; energy efficiency and conservation, nuclear energy, renewable energy including biofuels would be able to reduce primary energy consumption. Indonesia: reduce 25%, Thailand 22%, Malaysia 21% and Brunei 20%.

ASEAN Energy Outlook

ASEAN Energy Outlook

Finding and Implications:

As member countries continue to pursue their economic goals, primary energy consumption and CO2 emission in ASEAN will increase almost three folds in the BaU scenario – there will be increasing pressure on energy security and global environmental stability.

If current energy production levels in the region do not increase - the region will have to source out this additional demand from outside the region.

Appropriate energy efficiency and conservation programs, low-carbon technologies and increased shares of non-fossil fuels in power generation - would be needed to reduce carbon intensity and enhance energy security.

EE&C PROGRAMME

EE&C Programme in ASEAN

• Implement capacity building activities through energy audit and intensive seminar-workshops to narrow the gap of the implementation of EE&C.

• Disseminate advanced energy efficient technologies and to promote business development and business-matching activities.

• AJEEP Scheme-2: capacity building and development of business opportunities on EE&C

• AJEEP Scheme-3: assistance in the development of EE&C legal policy framework

ASEAN-Japan Energy Efficiency Partnership (AJEEP)

• Improve establishment of EE&C law and regulations of each ASEAN Member States

• Develop/advance EE standards and labelling program for appliances/equipment in ASEAN region

• Enhancement of the evaluation criteria applied to the ASEAN Energy Awards systems for EE&C buildings and energy management best practices in ASEAN

Energy Conservation Workshop under AJEEP (ECAP)

EE&C Programme in ASEAN

• Funded by METI-Japan

• Jointly implemented by ACE and ECCJ

• Aims to support ASEAN Member States to overcome the barriers on the implementation of promotion measures of energy efficient home appliances by adopting Japanese approaches

Energy-Efficiency Market Transformation with Information Provision Scheme (EMTIPS)

• The world’s first regional certification system for energy managers and energy end-users in the manufacturing and building sector

• Funded by the European Union under the Switch-Asia Programme

• As of January 2014, certified: 129 Local Trainers; ii) 65 Local Auditors; iii) 1686 Energy Managers; iv) 9 Energy End-users; and v) 19 Country Experts

ASEAN Energy Management Accreditation Scheme (AEMAS)

EE&C Programme in ASEAN

• Funded under EU SWITCH-ASIA Programme

• Promotion and deployment of energy efficient air-conditioners in ASEAN

ASEAN Standards Harmonization Initiative for Energy Efficiency (ASEAN-SHINE)

• Established in 2010, funded by MOTIE-Korea

• Jointly implemented by ACE and KEMCO

• Provide capacity building and information sharing on Clean Development Mechanism (CDM), Nationally Appropriate Mitigation Actions (NAMAs) as well as identification of potential EE as mitigation actions

ASEAN+3 Mitigation Cooperation Programme

EE&C Programme in ASEAN

• Launched in 2000

• Southeast Asia’s highest reward for excellence in the field of energy, to promote awareness and private sector participation on EE&C in buildings

• 4 categories: new and existing, retrofitted, tropical, and special submission

ASEAN Best Practices for Energy Efficient Buildings Awards

• Launched in 2007

• Promotion of best practices, innovative and creative energy management demonstrated and applied in buildings and industries towards energy conservation

ASEAN Best Practices for Energy Management in Buildings and Industries Awards

• Launched in 2014

• Build competency in adopting, developing and applying green building principles in the design of the built environment as well as contributing global efforts to reduce CO2 emissions

ASEAN Green Building Awards

AJEEP PROGRAMME

AJEEP Programee

ASEAN-Japan Energy Efficiency Partnership (AJEEP) is a SOME-METI Consultation Programme that was started in 2012 as the continuation of the successful 12 years implementation of ASEAN-Japan EE&C Cooperation 12 year PROMEEC project (dispatch of experts) and 7-year MTPEC program (trainings in Japan) from 2000 to 2012.

Consists of AJEEP-Scheme 2 and AJEEP-Scheme 3 and ECAP (Energy Conservation Workshop under AJEEP).

Objectives:

1. To promote and strengthen ASEAN-Japan Cooperation in EE&C.

2. To narrow the gaps of the capacities such as the regulatory frame work among ASEAN Member States further for enhanced EE&C promotion in the ASEAN region.

3. To disseminate advanced energy efficient technologies and to promote business development and business-matching activities.

AJEEP Programee

ASEAN Private Sectors

ACE

Promote Business

Business Sourcing & Matching

Initiatives of Japanese Private Sector

This scheme forms a capacity building platform/system for EE&C business development by which more private companies could find business opportunities to accelerate improvement in EE&C through applying effective/advanced technologies and products under a well-established EC policy/legal framework and energy management system.

This scheme provides ASEAN with the capacity building programs for applying the advanced technologies and products so as to create more opportunities for private sectors to promote EE&C through business.

AJEEP Scheme 2 Program Objective : “Enhancement of EE&C Promotion by Private Sector”

AJEEP Programee

AJEEP Scheme 3 Program Objective: “Development of the ASEAN Capacity Development System to narrow the Gap of the capacities for EE&C among ASEAN Member States”

In order to contribute to the achievement of the GDP energy intensity reduction target (8%) of AMS, it is essential to narrow the gaps of the capacities among AMSs further for enhanced EE&C promotion in the ASEAN region, especially for Cambodia, Lao PDR and Myanmar to establish better national policy/legal framework including energy management system.

This scheme supports on the capacity building projects which AMSs will implement by themselves based on the achievements of the PROMEEC project.

AJEEP Programme

The future AJEEP activities to be implemented under Scheme 2 Based on CLM countries well establish EC policy/legal framework and energy management system

PROMEEC Program AJEEP Scheme 2

AJEEP Scheme 3

*1: Promotion of Energy Efficiency and conservation *2: Cambodia, Lao PDR and Myanmar

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Financial Scheme (JCM, etc)

EE&C Technologies

Well developed policies and regulatory framework

Development of EE&C Projects

Private Sector Involvement

AJEEP Programme

The future AJEEP activities Promotion of Joint Crediting Mechanism

Contributing to sustainable development of developing countries by not only disseminating of leading low carbon technologies, products, systems, services and infrastructure but also mitigation actions of GHG emission.

Appropriately evaluating the Japanese contributions to reductions or removals of GHG emission in quantitative manner by applying measurement, reporting and verification (MRV) methodologies to use them to achieve Japan’s emission reduction target.

Contributing to the ultimate objective of the UNFCCC by facilitating global actions for GHG emission reductions or removals, complementing the CDM.

CONCLUSION

Conclusion

EE&C is viewed as one of the most effective ways meeting future demand concerning to the energy supply security and global environmental stability.

Imposing EE&C action plans would generate significant potential for the region to reduce growth in energy consumption as well as reducing CO2 emission.

Under the 3rd ASEAN Energy Outlook, if all the Energy Efficiency Action Plan in National Levels are being implemented, ASEAN would able to reduce 1/3 or its energy demand in 2030 from BAU.

Enhanced collaboration of government and the private sector is crucial to effectively translate the benefits of EE&C into reality.

The role of Dialogue Partners, particularly Japan, is very important for ASEAN to enhance its capacity and implement its energy efficiency action plan.

Thank You

www.aseanenergy.org