National Energy Efficiency & Conservation (EE&C) Policy€¦ · Helps to maintain carbon neutrality...
Transcript of National Energy Efficiency & Conservation (EE&C) Policy€¦ · Helps to maintain carbon neutrality...
National Energy Efficiency& Conservation (EE&C)
Policy
Department of Renewable Energy
April, 20181
Outline of the Presentation
• Vision and Mission
• Organogram of DRE
• Trajectory of the EE&C Policy Formulation
• EE&C Policy Structure
• Policy Contents
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Department of Renewable Energy (DRE)
Vision
Provision of diverse forms of green and renewable energy solutions
and energy efficiency options aimed at enhancing energy security
and sustainable development of the country.
Mission
To promote all forms of available and viable renewable energy
resources and technologies from supply side of energy chain
through applied research, development, capacity building,
demonstration projects and devising appropriate incentive
schemes while actively embracing energy conservation and
efficiency measures from demand side of energy chain.
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Department of Renewable Energy
Alternate DivisionPolicy and
Coordination Division
Research and Development
Division
Program Coordination
Section
Rural Electrification
Section
CDM Section
Research Section
Energy Conservation
Section
Solar Section
Wind Section
Bio-energy Section
Hydropower Section
Trajectory of the Policy formulation
Sl.No
Activity Date
1. GNHC approved the concept note of the EE&C policy 11th April 2014
2. Face to face consultation with stakeholders Aug & Sept 2014
3. 1st stakeholder consultation workshop (framework) 26th Sept 2014
4. Bilateral stakeholder consultation (policy matrix) 20-24th April 2015
5. Presentation of 1st draft policy to individual stakeholders
1st -9th Dec 2015
6. Final stakeholder consultation workshop 19th April 2016
7. Finalization of the draft policy May- July 2016
8. 2nd PPCC meeting with directives on review of the draft policy
26th January 2017
9. Draft Policy approved in the 3rd PPCC meeting 31st March 20175
Trajectory of the Policy formulation
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Activity Date
10. Draft policy uploaded on Ministry’s website for comments
13th May 2017
11. Comments from GNHC to PPD, MoEA 18th August 2017
12. Review of the Policy and Stakeholder consultation (MoF) 5th October 2017
13. Approval by Ministry on the draft Policy and sent to GNHC
2nd and 9th
November 2017
14. Comments from GNHC to DRE via email 4th Dec 2017
15. Final draft policy sent to GNHC by PPD, MoEA 11th Dec 2017
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Presentation to policy screening members
Presentation to Committee of Secretaries
22nd Dec 2017
7th March 2018
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Structure of the EE&C PolicySection 1: Introduction
Section 2: Rationale
Section 3: Title and Operative period
Section 4: Objectives
Section 5: Building Sector
Section 6: Appliance Sector
Section 7: Industrial Sector
Section 8: Transport Sector
Section 9: Institutional Arrangement
Section 10: EE&C Action Plan
Section 11: Monitoring & Evaluation
Section 12: Amendments
Section 13: Interpretation of the Policy
Section 14: Definitions of concepts
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1: Introduction
1. Importance of GNH as development philosophy and its
focus on developing national plans
2. Narrates about country’s impressive GDP growth with
increased urbanization and reduced poverty rate.
3. The EDP 2016 emphasizes the requirement to adopt this
EE&C policy and pursue energy efficient productive
activities in the four major sectors.
4. Helps to maintain carbon neutrality commitment and befits
the country’s Nationally Determined Contribution.
5. EE&C potentials are based on findings from the detailed
energy audits carried out in energy consuming sectors
(Building, Appliances, Industry and Transport).
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2: Rationale➢ EE&C measures will contribute to global commitment on the
climate change front to UNFCCC and other international forums
• Increasing economic prosperity is expected to drive up the country’s demand for energy, including fossil fuels like petroleum products.
• Lower intensity of energy use hence decoupling economic growth from consumption of energy resources and carbon emissions.
➢ Pursuit of EE&C measures will also align with the United Nation’s Sustainable Development Goals.
• Reduced energy intensity will contribute to climate action through reduction in GHG emissions
➢ Freeing up energy resources for export and earn additional revenues to support socio-economic development goals (In 2014, export- 5,179 million kWh with earning-10,698 Million, Import Nu 8,432 million).
• Annual saving potential in electricity consumption, averaged over 15 projected years Nu 320.00 Million per annum @2.07 per Unit -155million kWh annually)
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2: Rationale continued➢ Import bill for transport fuel increased from Nu 1.1 Billion to
8.4 Billion in 2014. Efficient fuel usage, promotion of public
transport system, fuel efficient vehicles, electric/hybrid cars
can address in reducing the fuel consumption.
➢ If 10% of the vehicle fleet becomes electric, the annual
saving is estimated at Nu 467.00 Million.
➢ EE&C measures in the building sectors, which consumes
significant fuel wood for cooking and heating, will reduce
the consumption and reduce the pressure on forests and
enhance carbon sequestration capacity.
➢ Adoption of energy efficient production processes and
technologies will improve the productivity, profitability and
competitiveness of our industries by lowering the operating
costs.
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3: Title, Operative Period & Enforcement
1. This Policy shall be known as “National Energy Efficiency &
Conservation Policy 2018”.
2. This Policy will come into effect from XXXX date of
approval by the cabinet and remain in force until
superseded or modified.
3. All EE&C measures are governed by this Policy.
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4: Objectives1. Improve energy security by reducing energy intensity in
the Country through adoption of EE&C measures.
2. Create enabling environment for adoption of EE&C
measures by various actors in the economy,
3. Reduce adverse impacts of energy consumption from
fossil fuels, and contribute towards achiveing the Country’s
global commitment to remain carbon neutral.
4. Provide long term direction for a systematic approach for
implementation of EE&C action plan by soliciting
coordination among relevant stakeholders.
5. Create enabling environment for the private sector
participation in adopting EE&C measures in the Country.12
5: Building Sector
In 2014, the building sector contributed 42% of the total energy
consumption. The energy performance can be improved
focussing on retrofit measures of existing buildings and
mandating energy efficient designs for new buildings.
Proposed Measures:
1. MoWHS to develop energy efficiency building codes and
align with legal framework. MoWHS will also look into
energy efficient construction materials for buildings.
2. Establish Energy Auditing and Reporting guidelines.
3. Encourage hotel industry to adopt EE&C measures and
recognize green hotels,
4. Develop capacity at all required levels to fulfil the policy
objectives.
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6: Appliance Sector
The Energy performance of the appliances can be
improved through a systematic effort of lowering the
average wattage of appliances by replacing the current
stock of appliances with more energy efficient products.
Proposed Measures:
1. NA shall develop technical specifications for the select
set of appliances and BSB to develop Standards and
Certification Scheme to promote consumer access to
energy efficient appliances.
2. MoF shall incorporate the EE$C aspects into the Public
Procurement system.
3. Explore appropriate fiscal incentives to off-set the higher
prices of labelled appliances and to accelerate
penetration of energy efficient appliances in the market.14
7: Industry Sector
The 2014 study showed that the energy consumption by the
industry sector contributes about 37% of the total energy
consumed in the Country, which can be reduced by
encouraging adoption of energy efficient technologies,
processes and building capacities within the industry sector.
Proposed Measures:
1. Industrial energy performance can be improved through
retrofits, refurbishment, technology transfer and process
modifications. This can be done with better coordination,
workshops, development of bench marks for the
industries,
2. NA will develop energy audit and reporting guidelines,
3. Carry out capacity building measures to adopt improved
technologies and processes.
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8: Transport Sector
In 2014, the energy consumption from industry sector
contributed to 17% of the total energy consumption. The
Energy performance can be improved by adoption of
sustainable transportation modalities like use of
electric/hybrid cars, mass transport system and proper
planning.
Proposed Measures:
1. MoIC will promote energy efficient transport system
including mass transport system.
2. NA will commission technical studies and research for
applicability of alternative fuels in vehicles.
3. All relevant agencies will incorporate EE&C aspects
while planning city/town developments.
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Section 9: Institutional Arrangement
1. Department of Renewable Energy (DRE), MOEA as NA anddefines its specific roles.
2. Department of Trade (MoEA) in collaboration with DRC(MoF) to monitor the import and sale of energy efficientproducts.
3. Ministry of Finance for considering the EE&C financinginstruments as recommended by NA and EE&C aspects tobe incorporated into the public procurement system.
4. GNH Commission for revewing the implementation statusand effectives of the Policy.
5. MoIC to facilitate implementation of EE&C measures in thetransport system.
6. MoWHS to develop energy efficient building codes and usethe provision of this policy as an input for integrated andgreen urban planning.
7. Thromdes/Dzongkhag Admininstrations to implement andenforce energy efficient building codes. 17
Section 9: Institutional Arrangement
8. Bhutan Standards Bureau (BSB) to certify energy performanceof the energy efficient appliances and equipment.
9. Bhutan Electricity Authority (BEA) to recategorization of HV, MVand LV Indsutries based on energy consumption andconnected load. Explore tariff instruments to incentivize EE&Cmeasures, ensure the transformer sizing and distribution systemsare optimized for energy efficient operation.
10. National Environment Commission (NEC) for consolidation ofall relevant information to prepare country’s climate changemitigation related to EE&C measures and facililate flow ofclimate finance for implementation of EE&C measures.
11. Deparment of Industries (DoI) and DCSI to coordinate withBCCI and ABI to promote and implement EE&C measures inthe industries.
12. Private sector will adopt the EE&C measures as prescribed bythe comptetent authorities.
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Section 10: EE&C Action Plan
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➢ Major energy cosnuming sectors are: Building and Appliances
sector (270,356 TOE), Industry sector (241,972) TOE and
Transport sector (121,218 TOE).
➢ The detailed energy audits and technical studies carried out
in 2014, showed substantial techno-commercially achievable
energy savings potential that will be carried out through
implementation of EE&C action plan.
➢ For the promotion of EE&C measures, the NA shall utilize the
Renewable Energy Development Trust Fund (REDTF)
established under the Alternative Renewable Energy Policy
(AREP) 2013 and amendment thereof or any other innovative
funding mechanism established by the Government.
Section 10: EE&C Action Plan
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➢ RMA shall classify bank lending for EE&C projects which lead
to increased energy efficiency in production processes or in
technologies, as “Priority Sector Lending”. The NA shall
collaborate with RMA in identifying the category of EE&C
projects eligible for priority sector lending.
➢ The GNHC and the MoF shall explore access to international
funds, in the form of climate finance and/or other
development finance assistance. Based on the proposal
submitted by the NA, the MoF and GNHC shall review EE&C
proposals and provide funding support to EE&C measures
wherever deemed necessary.
➢ The NA shall coordinate with relevant agencies for
identification of funding options from international
development partners to support EE&C projects.
Section 11- Monitoring and
Evaluation
➢ The NA shall develop a monitoring, reporting and
verification mechanisms to periodically assess the
effectiveness and relevance of EE&C programs.
➢ The NA will update concerned stakeholders regarding
policy formulation and implementation status.
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Section 12- Amendments
➢ The Government may amend this Polict, as and when
required, with at least one update in every five years.
Howeever, the terms and conditions of agreements, which
are in effect for the existing projects, shall not be
subjected to these amendments.
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Section 13- Interpretation of the
Policy
➢ In the event of conflict of interpretation, the Ministry of
Economic Affairs shall on behalf of the Government, be
the authoirty to interpret various provision of this Policy,
which shall be final and binding.
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Section 14- Definitions
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Thank You
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