Energy Efficiency in South East Asia Could Yield Multi-Billion Dollar Bonuses

The Southeast Asian market has great
potential for increasing energy efficiency, but so far countries here are failing
to take advantage of it, says a new study by Roland Berger Strategy Consultants  for the European Chamber of Commerce
(Eurocham) released at the Clean Energy Expo Asia. It found that by 2020,
Southeast Asia could potentially increase overall energy efficiency by 12 to
30%, resulting in savings of US$15 billion to US$43 billion.

Tapping into Southeast Asia’s energy efficiency
market

Jenny Marusiak in eco-business.com (3
November 2011):

The Southeast Asian market has great
potential for increasing energy efficiency, but so far countries here are
failing to take advantage of it.

A new study has found that by 2020, Southeast
Asia could potentially increase overall energy efficiency by 12 to 30 per cent,
resulting in savings of US$15 billion to US$43 billion.

The new report was launched on Thursday by
global consultancy Roland Berger Strategy Consultants and the European Chamber
of Commerce (Eurocham) at the Clean Energy Expo Asia in Singapore.

The study included five Asean countries –
Indonesia, Malaysia, Singapore, Thailand and Vietnam – which together account
for 86 per cent of Asean’s gross domestic product in 2010.

Roland Berger’s managing partner for
Southeast Asia, Joost Geginat, told Eco-Business that the energy efficiency
sector has identified a US$40 billion market in the region. Now the question
is: how do they tap into that, he said.

Willi Hess, chairman of Eurocham’s
sustainability committee, said that energy efficiency technology was vital to
meeting future energy needs, given the rapidly rising demand and the shrinking
fossil fuel resources.

“At the same time, it has a potential to
benefit businesses by reducing costs to consumers, improve competitiveness and
enhance overall productivity,” he noted.

The study’s authors note that while some
progress has been made in Southeast Asia in energy efficiency, major barriers
remain. These include insufficient policies and standards for energy
management, mistrust and lack of communication between energy users and the
suppliers, energy efficiency’s low ranking in business priorities, and a
shortage of funding options for energy efficiency solutions.

According to the study, the answers lie in
getting governments and companies to work together to raise awareness and
capacity for increased energy efficiency in all sectors, including factories,
power plants, households, office buildings, public buildings and retail malls.

Specifically, governments should provide a
comprehensive range of policies that include mandatory and voluntary incentives
to increase energy efficiency, and professional accreditation programmes that
will ensure high industry standards.

The study also recommended that governments
work with industry to integrate energy efficiency improvements at all levels,
from power generation to household use. Part of this would entail setting up
funding schemes to boost energy efficiency financing.

Mr Geginat noted in a statement that the
private sector should do their part too. “Private sectors need to be more
pro-active in developing the energy efficiency market,” he said.

One industry player trying to do that is
global energy services firm Schneider Electric. Speaking to Eco-Business on the
sidelines of the Clean Energy Expo Asia, Schneider Electric vice president Jane
Goh, noted that as power costs rise, growing numbers of large energy consumers,
such as leading property developers and multi-national corporations, are
willing to spend to reduce their escalating electricity bills.

These companies, in addition to those
committed to improving sustainability and transparency in their operations, are
the main drivers of energy efficiency within the building industry, said Ms
Goh.

It helps that government regulations are
imposing stricter standards on building owners. But companies do not need to
wait for a major renovation or equipment replacement to significantly improve
their building’s energy efficiency.

Building design and equipment are only part
of the solution, explained Ms Goh, adding that once a building is operational,
it is up to the building manager to keep operating costs low and make sure
resources are used efficiently.

This is where Schneider comes in, she said,
adding that the firm has helped clients save up to 30 per cent on energy costs
by overhauling the way they manage energy consuming systems such as lighting,
air-conditioning, IT networks, security systems, production equipment and
lifts.

The firm often works with companies on an
organisation-wide basis, meaning that energy management for multiple sites
including offices, factories and other facilities can be rolled into one
location.

After auditing a company’s energy patterns
and consumption, Schneider identifies ways of reducing operating costs through
more efficient electricity and staff management. This often entails automating
the different buildings systems under the control of a single software
programme.

Under this system, energy managers can access
data instantly on a single monitor and be alerted to any problems immediately.
This means building managers can do their jobs more effectively, and building
occupants have more peace of mind, noted Ms Goh.

Eliminating wasted energy through automated
lighting alone can save up to 10 per cent in energy consumption, she said, and
savings such as these mean that companies can recoup their energy saving
investments within one to three years.

The company is also looking at ways to get
building occupants more involved in the energy management efforts by increasing
visibility and transparency, a process Ms Goh said may very well lead to
tenants getting a share of energy costs savings.

Active metering through building management
software systems, which provides feedback to energy managers and building
occupants on their energy consumption, allows energy users to be involved in
the energy conservation process, she noted.

Roland Berger’s Mr Geginat agreed that
multi-nationals have an additional role.

“Multinationals can act as catalysts by
applying the same guidelines for energy utilisation and ensuring that best
practices are adopted across their international operations. These companies
can set the standard in energy efficiency for their industries and acting as
role models in Southeast Asia,” he said.

Source: www.eco-business.com
and www.rolandberger.com