Energy Efficiency in South Asia: Opportunities for Energy Sector Transformation
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Energy Efficiency in South Asia - Asian Development Bank
ENERGY EFFICIENCY IN SOUTH ASIA
OPPORTUNITIES FOR ENERGY SECTOR TRANSFORMATION
Ram M. Shrestha, Tika Ram Limbu, Bijay Bahadur Pradhan, Amnaya Paudel, and Pratik Karki
DECEMBER 2021
Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
© 2021 Asian Development Bank
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Tel +63 2 8632 4444; Fax +63 2 8636 2444
www.adb.org
Some rights reserved. Published in 2021
Printed in the Philippines
ISBN 978-92-9262-556-6 (print); 978-92-9262-557-3 (electronic); 978-92-9262-558-0 (ebook)
Publication Stock No. TCS200435
DOI: http://dx.doi.org/10.22617/TCS200435
The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.
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Notes:
In this publication, $
refers to United States dollars.
ADB recognizes Ceylon
as Sri Lanka and Vietnam
as Viet Nam.
On the cover: Energy efficiency is an important component of sustainable energy development. Energy efficiency improvement options in the energy supply and demand sectors all play a crucial role for such development.
Cover design by Francis Manio.
Contents
Tables and Figures
About the Authors
The authors of this study are Ram M. Shrestha, Tika Ram Limbu, Bijay Bahadur Pradhan, Amnaya Paudel, and Pratik Karki. Ram M. Shrestha is an Emeritus Professor of the Asian Institute of Technology, Thailand. Tika Limbu is currently Principal Portfolio Management Specialist at the Bangladesh Resident Mission of the Asian Development Bank. Bijay Bahadur Pradhan is a doctoral candidate at Sirindhorn International Institute of Technology, Thammasat University, Thailand. Amnaya Paudel and Pratik Karki are independent researchers.
Foreword
A sustainable energy system bears special significance to the member countries of the South Asia Subregional Cooperation (SASEC) Program. Accounting for over one-fifth of the world’s population, SASEC member countries still depend on fossil fuels, which have adverse effects on the environment and implications on energy security and climate change. As such, the wider deployment of renewable energy and energy-efficient technologies is a growing imperative in South Asia.
Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability is an operational priority of the Asian Development Bank (ADB) under its Strategy 2030. Through clean energy financing, ADB is actively supporting its developing member countries in their pursuit of low-carbon and climate-resilient development.
This ADB study analyzes various issues regarding energy efficiency and the development of sustainable energy systems in SASEC member countries: Bangladesh, Bhutan, India, Nepal, and Sri Lanka. It also provides an overview of the national institutions along with policies, laws, regulations, and initiatives on energy efficiency and conservation in these countries.
Recognizing the important role that regional cooperation plays in the promotion of energy efficiency, this study discusses different avenues for collaboration among governments in the national, state, and local levels. It also highlights opportunities for changes in energy mix that are beneficial to these countries and others in South Asia. Various technologies that can be developed and deployed in the region to help conserve energy and save costs are also identified.
The findings and information presented can provide national energy planners, policy makers, and other stakeholders in South Asia with a better understanding of how and why energy efficiency is essential to achieve sustainable and low-carbon economic development.
PRIYANTHA WIJAYATUNGA
Director
Energy Division
South Asia Department
Asian Development Bank
Acknowledgments
This report benefited from useful information and numerous documents on energy development, energy efficiency related regulations, policies, and programs related to the five countries in South Asia, i.e., Bangladesh, Bhutan, India, Nepal, and Sri Lanka. The lead author (Ram M. Shrestha) profoundly thanks Tilak Siyambalapitiya, Resource Management Associates (Pvt) Ltd, Colombo for sharing several useful energy audit reports on enterprises in Sri Lanka as well as to W.J.L. Shavindranath Fernando and Ananda Namal, both from the National Engineering Research and Development Centre, Colombo for sharing useful information on energy usage and technologies involved in some production activities of Sri Lanka. The lead author has greatly benefited from his years of research collaboration with the Asia-Pacific Integrated Model (AIM) team at the National Institute of Environmental Studies (NIES), Japan, particularly in the application of the AIM/Enduse model, which was used to analyze some major issues in the present study. The lead author is grateful to Toshihiko Masui, NIES, for his valuable comments and suggestions during the initial stage of this study.
The lead author wishes to thank Nazmun Nahar, Bangladesh Resident Mission, ADB, Dhaka; Tschewang Norbu, Bhutan Resident Mission, ADB, Thimphu; Jiwan Acharya, India Resident Mission, ADB, New Delhi; Ranishka Yasanga Wimalasena, Sri Lanka Resident Mission, ADB, Colombo; Priyantha Wijayatunga, ADB, Manila; and Pushkar Manandhar, Nepal Resident Mission, ADB, Kathmandu for their help in arranging his meetings with experts in different organizations during his country visits. He thankfully acknowledges the support of Bundit Limmeechokchai, Sirindhorn International Institute of Technology, Thammasat University, Thailand.
The lead author also expresses his grateful appreciation to the following persons for the helpful discussions he had with them during his country visits and for providing useful information for the study; they are, however, not responsible for the views expressed in this report:
Harsha Wickramanayake, Sri Lanka Sustainable Energy Authority; Bhasara Sirisinghe, Resource Management Associates (Pvt) Ltd, Colombo; Wijekoon Banda, Ceylon Electricity Board (CEB); Ronald Comester, CEB; Sulakshana Jayawardena, Ministry of Power and Renewable Energy, Colombo; Sherin Authukorala, Sri Lanka National Transport Commission; V.R. Rupasinghe, Sri Lanka Transport Board; and Rahula Atalage and Amal S. Kumarage, University of Moratuwa, Sri Lanka.
Al Mudabbir Bin Anam, German International Cooperation (GIZ), Dhaka; Siddique Zobair, Sustainable and Renewable Energy Development Authority (SREDA), Dhaka; Monowar Islam, Chairman, Bangladesh Energy Regulatory Commission; Ahmad Mukammeluddin, Japan International Cooperation Agency (JICA), Dhaka; and Mohammad Anis and Tanuja Bhattacharjee, World Bank, Bangladesh.
S.P. Garnaik and Banshi Shukla, Energy Efficiency Services Limited (EESL), New Delhi; Ashok Kumar, Bureau of Energy Efficiency, New Delhi; Vipin Rohila, National Productive Council, New Delhi; Manu Maudgal, GIZ, New Delhi; and Ashish Jindal, EESL, New Delhi, India.
Mewang Gyeltshen and Dawa Zangmo, Department of Renewable Energy, Thimphu; Dawa Chogyel, Department of Industries; Bhimlal Suberi, Ministry of Information and Communications; Karma Dupchu, Director, Ministry of Works and Human Settlement; and Tshewang Zam, National Environment Commission, in Bhutan, as well as Nima Tshering, Bhutan Electricity Authority; Om Bhandari, International Finance Corporation, Thimphu; and Sangay Dorji, Bhutan Chamber of Commerce, Thimphu.
Narayan Chaulagain, Nepal Energy Efficiency Programme/GIZ, Kathmandu; Madhusudhan Adhikarai and Raju Laudari, Alternative Energy Promotion Centre,