Centre for Energy (ACE) places emphasis on the
implementation of CCT to curb the release of
carbon dioxide (CO 2 ), sulphur dioxide (SO 2 ) and
nitrogen oxide (NO) into the atmosphere.
Making the Region’s Buildings Energy
Efficient (Source ASEAN POST, December
26, 2018)
Member states of the Association of Southeast
Asian Nations (ASEAN) intend to reduce regional
energy intensity by 20% by 2020 and 30% by
2025, compared to 2005 levels. According to the
ASEAN Centre for Energy (ACE), the region is on
track to reach its goals as energy intensity levels
have seen a downward trajectory between 1995
and 2014.
Nevertheless, future projections like these
still require concentrated efforts to ensure that
they are realised. A constructive method to reach
this goal would be to improve energy efficiency.
Energy efficiency is an important indicator that
environmental and economic challenges are being
met in a rapid and cost-effective manner.
ensuring that air conditioners are installed with
an energy saving inverter which reduces power
consumption.
This is just one of many ways buildings can be
made to be more energy efficient.
According to recommendations by the
International Energy Agency (IEA), buildings in this
region should comply with building energy codes
and minimum energy performance standards
(MEPS). They should also aim for net-zero energy
consumption and strive to improve the energy
efficiency of building envelopes, systems, and
critical building components.
The most effective way of improving energy
efficiency in buildings is to engage with energy
service companies (ESCOs) which provide a
broad range of energy solutions. These services
include the designing and implementation of
energy savings projects, retrofitting, energy
conservation, energy infrastructure outsourcing,
power generation and energy supply, and risk
management. ESCOs have been adopted widely
especially in more developed ASEAN states like
Singapore, Malaysia, Thailand and Indonesia and
are fast becoming a popular financing vehicle
across ASEAN.
Improving energy efficiency of buildings
Financing energy efficient buildings
Buildings are an important piece of the energy
efficiency puzzle. According to the United
Nations Environment Program (UNEP), buildings
are responsible for upwards of 30% of global
greenhouse gas (GHG) emissions. Moreover,
more than 50% of the planet’s new buildings are
constructed in Asia yearly and the building sector
constitutes an estimated 25% of overall energy
consumption.
Earlier this year, it was reported that Southeast
Asia was faced with a “cooling crisis” as more
people are cranking up their inefficient air-
conditioning systems. This has had a negative
knock-on effect on the environment as the
electricity used to power these systems is provided
by coal-fired power stations.
While it is true that one could just switch off
the air-conditioner, the region’s hot and humid
weather would make that an unpopular decision
in most office buildings. The solution then lies in
ensuring that electric devices run efficiently on
as little electricity as possible. In this case, by
One thing to keep in mind is that any effort to
improve energy efficiency in buildings will incur
additional costs. The advantage is, thanks to the
energy saved, building owners or tenants will save
more money in the long term.
Installing energy efficiency systems opens
up bountiful opportunities for investment.
According to a report by the United Nations (UN)
and Singaporean financial service provider, DBS,
residential and commercial building sectors are
estimated to have investment opportunities of
USD88 billion and USD64 billion, respectively. The
returns on such projects are incredibly attractive –
at times exceeding 20%.
While energy efficiency projects can be
financed completely by private financiers, the
Government can also play a role. For example, in
Malaysia, the Energy Performance Contracting
Fund helps finance projects with a target financing
size of no higher than USD3.8 million and a tenure
of no longer than seven years.
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