PRESENTATION ON Energy Efficiency Initiatives & Legal Framework in Pakistan

1. PRESENTATION ON Energy Efficiency Initiatives & Legal Framework in Pakistan

2. 1989 1993 1996 1997 1985 1986 Autonomous Agency Established through Federal Government’s Resolution No.S.R.O.4(KE)/86, dated the 23rd December, 1986 Under the Ministry of Planning & Development First MD Appointed, Budget Allocated, Recruitment Initiated Transferred to the Ministry of Water and Power Status Changed to Attached Department in Ministry of Environment Transferred to Ministry of Environment ENERCON to NEECA Journey Started as USAID Project 2011 till to date October 2016 August 2018

3. Sectors Covered under NEECA Act

4. 1. Chairman– Federal Minister for Power Division 2. Vice Chairman – Secretary, Power Division Members: • Federal Secretaries (Finance, Petroleum & Natural Resources, Planning, Science & Technology, Industries, Housing & Works, Climate Change) • Provincial Secretaries (Designated Departments) • Chairman OGRA & NEPRA • Managing Director NEECA • One Nominee from Chambers of Commerce & Industry • One Person from Agriculture sector nominated by the Federal Govt. • Five sectoral experts as members from the Private Sector (Power, Industry, Transport, Agriculture & Livestock and Buildings)

5. As per NEECA Act “Designated Agency” means an agency designated as such by the Board or a Provincial Government for the purpose of this Act NEECA Board to notify Designated Agencies nominated by the respective Provincial Departments including GB & AJK AJK PDO AJK W&P Department GB

6. ☒Yes ☒No ☐Yes ☐Partial ☐No ☐Partial ☐Partial ☒No ☐Yes Establish Infrastructure Minimum Energy Performance Standards (MEPS) Prepare NEEC Policy Roles of Designated Agencies for accelerating energy efficiency at the Provincial level: -Regulatory -Developmental - Facilitation Developing national policy will primarily be a responsibility of the Authority. Inputs from all the federating units will be received before seeking approval from the board and required forums. Development and notification of minimum energy performance standards (MEPS) will be the responsibility of the Authority. No province shall issue MEPS on its own accord. Provinces to be involved in MEPS development process. The Provincial Agencies may establish testing laboratories or designate accredited laboratories for EE testing in consultation with NEECA. Relationship b/w the Authority and Provincial Designated Agencies

7. ☐Yes ☐No ☒Partial ☒Partial ☐No ☒No ☐Yes ☐Yes ☐Partial ☐No ☒Partial ☐Yes Prohibit manufacture sale or import of energy in-efficient equipment Prescribe and implement building energy code. Establish system of designated consumers and audits Display of Pakistan Energy Labels The provincial designated agencies shall act as enforcement arms of the Authority in their respective provinces. Enforcement to be done in consultation and approval from the Authority. NEECA shall develop the Certification Scheme for Energy Managers/Auditors and shall implement in consultation with The provincial designated agencies. DA’s may assign designated consumers in consultation with NEECA. Energy audits / assessments for demonstration purpose can be initiated by the agencies in consultation with NEECA. Introducing labels for appliance products shall be responsibility of NEECA. Provincial agencies can assume surveillance, verification and testing role in consultation with NEECA and have to enforce labeled products based public sector procurement. The Provincial Designated agencies may amend and notify the BEC to suit local climatic conditions in consultation with NEECA and get endorsement by Board. NEECA will develop National enlistment mechanism for the Architectures /Engineers/relevant Firms for generating BEC compliance reports. Private firms/3rd parties could also be engaged by NEECA & DAs to check BEC compliance reports to be submitted to respective Development Authorities, TMAs etc and inclusion of BEC Compliance Report Mechansim in the existing by laws. Relationship b/w the Authority and Provincial Designated Agencies

8. ☒Yes ☐No ☒Partial ☐Partial ☐Yes ☐No ☐No ☐Yes ☒Partial ☒No ☐Yes ☐Partial Demonstration, R&D Create awareness and disseminate information Recommend financial and fiscal incentives Program Development for EE promotion Penalties for inefficient practices. The Provincial Designated agencies may recommend the Authority regarding financial and fiscal initiatives for EE and MEPS which can be implemented with Board’s approval and could be submitted as budget proposal by NEECA. The Provincial Designated agencies may develop programs in their respective provinces for EE and MEPS related activities with prior approval from the Authority / board. Penalties will be prescribed by the Authority for inefficient EC practices . The Federal Gov. will establish the EC tribunals ☒Yes ☐No ☐Partial The Provincial designated agencies may create awareness and disseminate information regarding promotion of EC practices in the respective provinces in coordination with NEECA.NEECA will act as an information house for EE&C. Provincial designated agencies can take their own initiatives on R&D and EC demonstration activities. The Authority will be kept informed to maximize ripple effect, awareness and to build upon work carried out previously by ENERCON.NEECA will also include DA’s in its R&D initiatives. Relationship b/w the Authority and Provincial Designated Agencies

9. Efficiency Improvement - a Least Cost Mitigation Option Energy Savings/Demand Suppressing Potential through Energy Efficient Appliances 500-1000 MW/annum

10. THANK YOU

11. Energy Efficiency Potential & Loss • Total Primary Energy Supply (PES)= 80 MTOE • Total Final Energy Consumption =50 MTOE • Transformation + Transmission Losses= 30 MTOE • Average 25% End Use Efficiency Loss= 13 MTOE • (Inefficient wires, industrial processes, appliances and motor vehicles) • Total Loss= 43MTOE (>50 % of PES ) • Imported Energy = 34 MTOE (>10 Billion USD ) • (As per SBP report on Imports Payment By Commodity) ENERGY FLOW CHART 2016-17

12. Road Map for Energy Efficiency & Conservation Programs

13. Road Map • Summer Action Plan: • Support of Designated Agencies(DAs) required in Dissemination and Implementation of Guidelines prepared by NEECA with regard to rationale usage of electricity in the offices of the Federal Government as well as Provincial Governments • Adoption of Standard Industrial Classification Codes: • Ministry of Energy (Power Division) on the recommendation of NEECA & Pakistan Bureau of Statistics have directed DISCOs/PITC to update their Industrial Consumer Record with proper Business Descriptions & Standard Industrial Classification Codes in next 2-3 months. The DA s are suggested to mobilize their Provincial Electrical Inspectors to coordinate with the respective DISCO representative for cross checking the data being updated. for industrial consumers in their respective jurisdiction areas. • Sensitizing & Developing Projects for Low Power Factor Consumers Paying Penalties • NEECA will collect and share the information with DA’s about Low Power Factor consumers paying penalties to initiate survey, awareness and develop projects like installing Automatic Power Factor Controllers starting from overloaded Transformers/Feeders having higher number of such consumers. Engineering Universities could be engaged for the task in next 3-6 months.

14. Road Map • Development of Energy Efficiency Specific PC-1 & Organization Structure: • NEECA will assist in developing the PC-1 and Organization Structure keeping in view the nature & type of support required from Designated Agencies(DAs) to help assist in implementing various measures as per provisions of the NEECA Act. • Institutional Arrangements: • EE&C implementation is a cross-sectoral activity and will require support from various agencies at any point in time. NEECA shall work out on institutional arrangement at National Level which will outline the roles and responsibilities of relevant agencies in the promotion and implementation of EE&C measures. DA’s are suggested to share their proposed institutional arrangement mapping keeping in view different sectors specified in the Act. • Supporting Role of DA’s in Ongoing/Pipeline Projects : • DAs to support as one of the main stakeholders in Provincial level activities such as trainings, NEEC Policy Consultative workshops, Energy Audits, pilot projects specifically the Zig-Zag Brick Kiln Project, notifications to respective C&W departments and monitoring for procurement of labeled appliances, collection of general registered vehicular type data,Tractors Tune Up Workshops, Integration of NEECA endorsed DC fans under development in SHS (Solar Home Systems) projects, JICA household Surveys in Punjab and Sindh etc.

15. Road Map Way Forward • Preparatory Activities • Sectoral Program Design Master Document • Funding arrangement for the implementation of the Roadmap • International Collaboration • Institutional strengthening in other relevant departments • Development of Monitoring Framework for the EE Roadmap

16. Salient Ongoing Projects

17. Energy Audit of Public Buildings - A-Block(Pak Secretariat) The main objective of the Building Energy Audit was to find out how energy flows in the building and what should be done to improve end use efficiency to optimize energy use in the building without compromising recommended comfort level and determining the financial implications involved in improving the energy use characteristics in the building. The Scope also covered water saving potential. The implementation of only one measure an investment of about 1.2 million Pak Rs, average 55,000 units (50%) reduction has been recorded. Further, retrofitting of appliances with energy efficient ones will significantly reduce the billing amount of the entire A-Block. The motion sensors have been installed in the selective corridors A-Block. HMI screen/sub-meters were also installed at 2nd-Floor.

18. The survey performed by M/s NEC in coordination with our team was quite helpful for us in the area of energy conservation. Three of the recommendations given by the team seems worthwhile at the moment. These are; • Solar Energy as an alternate source of power • Improve Instrument Air Distribution to avoid unwanted pressure loss or leakage • Installation of suitable VFD on Cargo Lifts • We have received all the information pending at M/s NEC and our team is now working in detail to devise the strategy in executing the above points. I will let you know in case we require any further services from your organization. • Imran SabirEngineering Manager

19. General Sector-Wise Electricity Consumption

20. Energy Labeling • Informative labels that are attached to manufactured products and describe a product’s energy performance in the form of energy use, efficiency, or energy cost. • Creates consumer awareness to buy more efficient appliances. • Encourages manufacturers to improve standards of products and use efficiency for sales campaign. Two main types: Endorsement Labels and Comparative Labels Comparative Labels Endorsement Labels

21. Availability of Accredited Lab (PCSIR). • MEPS for fans – Adopted and Notified by PSQCA. • Fan manufacturers interested in voluntary adoption of MEPS and projection in electronic and press media. • Labeling scheme already introduced. • Approx. 8-9 Million Fans* penetrate the local market annually, out of which 50% are ceiling fans. JICA analysis and ADB Report show that fans consume the most amount of electricity in Pakistan. • There is an average saving potential of 40-60 Watts per ceiling fan. Assuming 4.5 Million ceiling fans, if manufactured as per 3 Star rating, could save up to 180-270MW per annum. * Final Report on Institution – Building and Promotion ofEnergy Saving, JICA-March 2015 Why Fans are preferred?

22. BRANDS HAVING ENERGY LABELLED PRODUCTS • ALNOOR • Ceiling (1) • Bracket (0) • Pedestal (0) • STARCO • Ceiling* (5)** • Bracket (1) • Pedestal (1) • ASIA • Ceiling (1) • Bracket (0) • Pedestal (0) • BELVIN • Ceiling (1) • Bracket (0) • Pedestal (0) • TAMOOR • Ceiling (1) • Bracket (0) • Pedestal (0) • LAHORE • Ceiling (1) • Bracket (0) • Pedestal (0) • GFC • Ceiling (4) • Bracket (1) • Pedestal (1) • ROYAL • Ceiling (1) • Bracket (0) • Pedestal (0) • PAK PUNJAB • Ceiling (2) • Bracket (0) • Pedestal (0) • WAHID • Ceiling (2) • Bracket (0) • Pedestal (0) • SUPER INDUS • Ceiling (2) • Bracket (0) • Pedestal (0) • SUPER ASIA • Ceiling (1) • Bracket (0) • Pedestal (0) • PAKFAN • Ceiling (1) • Bracket (0) • Pedestal (0) • PARWAZ • Ceiling (1) • Bracket (0) • Pedestal (0) • YUNUS • Ceiling (1) • Bracket (0) • Pedestal (0) Notes: *Fan Type **No of models labelled

23. Status of Energy S&L in Pakistan MEPS launched: MEPS to be launched: • CFLs • LEDs • Fans • Air conditioners • Motors

24. Draft MEPS developed with JICA support and submitted to PSQCA for Adoption of Standards Tubular fluorescent lamp Refrigerator Television Microwave ovens

25. Enabling Environment for ELS

26. Introduction of Energy Efficient Zig-Zag Brick Kilns in Pakistan • >45 Zig-Zag Kilns under Construction (10 are operational). • Regulations Issued by Punjab Government for Construction of Zig-Zag Kilns Only. • Capacity Building of 3000 Brick Kiln Owners & Related Professionals completed. • HEC Approved Technical Development Fund Project of 8 Million Pak Rs developed by NEECA and NUST on “Retrofitting of Brick Kilns to Improve Energy Efficiency and Environmental Impact” . • Further International Assistance through CCAC, ICIMOD, GEF and UN in Pipeline.

27. Schools Energy Efficiency Activities About 3000 Students from Level 2 – Level 6 from public and private schools participated in Spelling Competitions based on Stories focusing on Conservation of Environment, Water & Energy.

28. Projects With International Partners • UNEP-GEF Funded Energy Efficient Lighting Project • EU Competitive Grant based Project on Implementation of Resource and Energy Efficient Technologies in the Sugar Sector of Pakistan (IREET) • National Certification Scheme For Energy Auditors, UNEP • JICA Technical Cooperation for Energy Labeling Regime • Sustainable Energy Efficiency Initiative for Industries, UNIDO • Energy Efficient Brick Kilns, International Centre for Integrated Mountain Development, NEPAL • Technical Support by USAID on Building Energy Codes Revision and Capacity Building • Projects in Pipeline with ADB, IFC, CCAC , IUCN, RSPN, MoCC(GEF) • UNDP/Ministry of Climate Change Support to NEECA for Developing Chapter on Second National Communication • kfW Green Procurement Program to make Public Buildings Energy Efficient • World Bank NDC Partnership Support facility – Strategic Support for Energy Efficiency in Pakistan (Roadmap Development & Optimization)

29. Project Title: Delivering the Transition to Energy Efficient Lighting in Residential, Commercial, Industrial, and Outdoor Sectors in Pakistan Executing Agency: National Energy Efficiency & Conservation Authority (NEECA) Co-Executing Agency: United National Environment Program(UNEP) Background

30. To secure significant global climate change mitigation and environmental benefits by instituting efficient lighting policies and creating a framework for innovative financial mechanisms that promote innovative and high efficiency products. Project Components • Developing a National Efficient Lighting Strategy • Strengthening monitoring, verification and enforcement (MVE) capacities in Pakistan to ensure an effective transition to efficient lighting • Design for a “Lighting Funding Window” in Pakistan through Revolving Loan Fund (RLF) • Accelerating the use of light emitting diodes (LEDs) and controls Project Objective

31. EU Switch-Asia Programme Implementation of Resource and Energy Efficient Technologies in the Sugar Sector of Pakistan (IREET) Background Initiated by the European Union and SWITCH Asia II is the action response of the European Commission to the priorities set in the Strategy Paper for Asia(2014-2020) to tackle Sustainable Consumption and Production. The Programme aims to promote • Sustainable growth • Contribute to economic prosperity • Poverty reduction • Mitigation of Climate Change By enhancing resource efficiency of the sugar sector through adoption of R&EE technologies.

33. Project Objective: To avoid greenhouse gas (GHG) emissions by developing and promoting a market environment that will stimulate investments in renewable energy and energy efficiency project in industry which, in turn, will support industrial development in Pakistan. Project Components and Expected Outputs : 1. Develop policy and Regulatory framework to support the uptake of EE and RE in industry 2. Investments in RE and EE in industry 3. Create platform for promoting investment and sustainability

34. Development and supporting of 10 National Consortiums, each comprising of EnMS Consultant, energy auditor, sectoral expert, and trainer, to implement EnMS in 4-5 industrial units (total 50 units in all) • The implementation process to be supported by UNIDO international consultant through Training Webinars and Workshops. • The industrial units to be supported by UNIDO through energy grants for promoting energy optimization interventions during EnMS process. • Expected that EnMS implementation will culminate in atleast 30 units with sizeable energy saving optimizations and atleast 10 units to go for ISO 50001 certification. Work Plan on Energy Management System

35. Project for Developing Effective Phasing out Strategy(AC & Refrigerators)/ Program of Inefficient Appliances to Support Energy Standards and Labeling Regime • Background • JICA assisted in Launch of the Pakistan Energy Label Scheme in 2016 and experts were deputed for short time intervals. • Salient Activities • JICA to send 3 Energy Experts to assist NEECA under their new technical cooperation for introducing MEPS for AC & Refrigerators on Mandatory Basis for 2.5 Years. Following Main Activities shall be carried out: • Baseline Survey • Strategy & Action Plan for Mandatory ES&L • Awareness and publicity plan for consumers, distributers/retailors & manufacturers • Rules & Regulations for Mandatory ES&L.

36. UNEP Climate Technology Centre Network Support for Developing National Certification Scheme For Energy Auditors

37. Background • The request submitted by NEECA to the UNEP Climate Technology Center & Network (CTCN), which is the operational arm of the UNFCCC Technology Mechanism based in Denmark, has got an initial approval for developing a National Certification Scheme for Energy Auditors. CTCN will depute experts free to cost for developing, institutionalizing and executing a National certification scheme for energy auditors/managers. Once established, the scheme would facilitate the energy auditing and related activities in a streamlined manner. • Project Components • Four project components and associated main activities are: • Identification of Designated Consumers • National Certification Scheme • Training of Relevant Professionals • Draft Regulations to Support Implementation of Roles as defined in National Certification Scheme.

40. Miscellaneous Energy Efficiency in Industrial Boilers Current Population (Industrial Boilers): 6000+ Approximately 30% -35% of the total are more than 40 years old Approximately 60-70% of the boilers operate in between 60%-70% efficiency. Efficient Boilers operate on upto 93 % efficiency Replacement Cost: US $ 0.2-0.3 Million for Average Sized Boiler Payback 1-3 Years

41. Miscellaneous • Boiler Furnace Tune-ups Average Annual Savings/Boiler 45 - 70 TOE 25,000-40,000Rs per Boiler Tune Up Twice A Year Pay back = less than 6 months (if variable factors remain constant e.g. fuel quality, pressure modulation etc. ) • Burner Controls Average Annual Savings/Burner70 - 90 TOE 3-4 Million Pak Rs(Fan/Burner Control/Overhaul/VFD/O2 Trimming System) Simple Pay back = less than 12 months (the system adjusts itself to the variable factors) • Steam System Upgrade Average Annual Savings/Industry120 -150 TOE 0.5-5 Million Pak Rs(Steam Traps, Process Optimizing, Monitoring System, Waste Heat Recovery Systems) Simple Pay back = 4-20 months • Electrical System Up-gradation per Industry Average Annual Savings/Industry5 -15 TOE 0.5-5 Million Pak Rs Pay back= 2-3 Years

42. Miscellaneous

43. Miscellaneous Efficient Design Upto 30% Retrofits + Efficient Appliances 30-40% Efficient Design +Retrofits +Efficient Appliances + Training of Occupants Up to 60 % EE Potential in Buildings

44. Miscellaneous Interventions in Pipeline Mandatory Energy Standards & Labeling Regime for Motors, Pumps , Electric Water Geysers, Washing Machines Products Registration Portal Establishment of Appliance Testing Labs -Products Registration -Reporting Module Energy Labeling Regime

45. Building Sector Activities Building Energy Audits , Centralized HVAC Energy Assessments, Installation of Building Energy Management Systems Development/Revision & Implementation of Energy Conservation Building Codes for Commercial & Residential Buildings Buildings Energy Rating System Energy Efficient Products Installation in 5 Million Houses under Prime Minister Scheme

46. Industry and Power Sector Activities

47. Transport Sector Activities

48. Agriculture Sector Activities

49. Training and Outreach Sector Activities

50. THANK YOU