On Monday, 26 April 2021, ASEAN Centre for Energy (ACE) held a workshop concerning ASEAN Energy Transition which raises the topic of “Energy Efficiency and Conservation (EE&C)”. The event moderated by Dr. Nuki Agya Utama as Executive Director of ACE and presented by four (4) speakers: Mr. Muhammad Rizki Kresnawan as Technical Officer of Modelling & Policy Planning (MPP) Department at ACE, Mr. Bintang Widhana as Technical Officer of Renewable Energy and Energy Efficiency (REE) Department at ACE, Mr. Patrick Blake as Programme Management Officer at United Nations Environment Programme (UNEP), and Mr. Rizky Fauzianto as Team Leader of ASEAN-Germany Energy Programme (AGEP).

Discussion session presented by Mr Rizki

This workshop aims to engage relevant parties and stakeholders to gain more understanding of EE&C efforts in ASEAN. During the Opening Remark, Dr. Nuki Agya Utama stated that this workshop aims to improve ASEAN Member States (AMS) capabilities to accelerate energy transition and achieve the aspirational Energy Intensity Reduction target under APAEC Phase II: 2021 – 2025.

The first topic presented by Mr. M. Rizki Kresnawan delivered “Achieving APAEC Phase II: 2021-2025 EE&C Target Based on the Findings of 6th ASEAN Energy Outlook (AEO6)”. It is stated that in 2018 as the baseline year, energy intensity achieved the target by reaching a reduction up to 21%, yet ASEAN still has its Regional Target in 2025: 23% RE share in Total Primary Energy Supply and 35% RE share in Installed Power Capacity, also 32% Energy Intensity Reduction based on 2005 level. Based on AEO6 findings, the industry and transportation sectors contribute the most demand reduction, followed by the buildings (residential and commercial). Thus, Mr. Rizki showcased several sectoral recommendations in this presentation. First, for industry sector, is to adopt ambitious efficiency measures and emission standards and adopt renewable energy such as biomass and solar. For the transportation sector, it is suggested to adopt more robust demand and supply-side policies for both biofuels and electric vehicles, keep pursuing the vehicle efficiency target, strengthen vehicle emission and fuel quality standards, and invest in public transit and non-motorized transport to reduce the need for driving. Last but not least, the recommendation for residential and commercial sector is to make stronger energy efficiency requirements for buildings, enhanced building codes and efficiency standards for appliances. These recommendations should be implemented soon because it will accelerate the achievement of the regional target and will be beneficial for the ASEAN member states.

Going forward, Mr. Bintang Widhana brought to view the second topic regarding the “EE7 Initiatives under APAEC Phase II and ASEAN EE&C Training and Certification.” Various methods that can be applied to increase EE&C effort are discussed, such as: harmonize standards (ISO 16358) through Regional and National Policy Roadmap, continued by RRT test of national test laboratory in compliance with ISO 16358 and ISO 5151; ASEAN Regional Lighting Market Assessment Project adopt the national policy roadmap; organize business forum and match making activities for EE&C projects (AEBF and CEFIA). Also, the annual ASEAN EE&C Awards. ASEAN EE&C Awards has been organized as an annual event to promote awareness in reducing energy intensity, share best practices, encourage private sector participation, promote energy management in industry to increase competitiveness, and reduce energy consumption. Certification and training in ASEAN for energy management have been conducted through AEMAS and currently under revamping; Product Registration System (PRS) and ASEAN Energy Database System (AEDS) to digitize the national and regional energy database. Particularly, this presentation also explained further about EE&C potential for industrial, residential, commercial, and building, transport, financing, technical capacities, and market verification and enforcement sector.

Mr. Patrick Blake, who represented United for Efficiency (U4E) discussed the UNEP-U4E support on the implementation of EE&C under APAEC Phase II. He highlighted the findings of ASEAN has the opportunities to achieve energy efficiency up to 198 TWh from the Business-As-Usual (BAU) or equivalent to US$21 Billion in electricity bill. Indonesia and Vietnam play a crucial role in achieving the projection by saving 75 TWh and 39 TWh , especially in lighting and cooling products. Blake stressed that U4E had assisted countries to transform its market through the adoption of U4E Integrated Policy Approach. Further, he explained the importance of the Product Registration System (PRS), which encourage data exchange and transparency of allowed energy-efficient products in the region with the intention of both providing access to reliable data for the policymakers and consumers to choose highly efficient products besides allows monitoring and reducing barriers on the market. Additionally, he mentioned the current policy intervention carried out by U4E to accelerate the energy efficiency in Lighting Products by implementing the Regional Lighting Roadmaps on the national level. Meanwhile, on cooling products, development of Minimum Energy Performance Standard (MEPS), harmonization of Air Conditioner (AC) testing standards, sustainable public procurement and energy efficiency modelling complemented the effort for AMS to achieve the high ambition projection. In order to support countries further, U4E provided Model Regulations Guidelines to be used for countries in need.

The last presenter, Mr. Rizky Fauzianto, specified the GiZ support in the implementation of EE&C under the ASEAN-German Energy Programme (AGEP) Phase III by elaborating the past, present and future of the cooperation.  During phase I, AGEP has generated 4 (four) reports on developing financial support mechanisms for sustainable EE&C implementation and mapping of green building code in regional level while supporting local projects both in Indonesia (Green Chillers) and Vietnam (4E Phase I).  Currently, AGEP Phase II are working on the regional EE financing through potential business matchmaking, which will be completed in June 2021. Continuity of the 4E project in Vietnam, which previously focused on developing legal and regulatory frameworks, is now shifted to facilitating technicalities and Research and development, including capacity building. Further, AGEP also posed as Secretariat to Vietnam Energy Partnership Group (VEPG) to bridge Vietnam Government and international partners with the objectives to enhance participation of private sector and financial institutions. Onward, there are two favored plans by GiZ to continuing the support to ASEAN. Firstly, through the possible extension of the project when it ends in 2022 with smart buildings, energy performance benchmark, and building labels. Second, establishes DKTI-ASEAN with project revolves around development of action plan for sustainable refrigerant use, digital energy audit and EMS, and provide platforms to bring together private sector and development banks.

The workshop followed by discussions and recommendations led by Dr. Nuki, which streamlined into several topics such as the connection between EE and climate change, economic development and COVID-19.  He wrapped up by emphasizing the urge of government support on a tax incentive for hybrid and EVs, building infrastructure, increasing finance and the business matchmaking sector to increase EE&C are important. With AEO6, sharing experience across countries can be achieved to better cooperate despite financial and policy issues.