Review of Energy Efficiency Interventions

Asia is expected to become the world's largest energy-consuming region in the foreseeable future. But unless measures are taken to contain energy consumption, it will be increasingly exposed to risks related to energy security and climate change.

Improving energy efficiency is a highly cost-effective alternative to increasing energy availability. A megawatt of power capacity saved - for example, by retrofitting energy-efficient industrial equipment - costs about half that of adding the equivalent coal-fired power-generating capacity.

This evaluation focuses on ADB interventions over the past several years to stimulate energy efficiency investment in industry and buildings. These accounted for more than 85% of the region's energy use in 2008. Both sectors provide a good opportunity for advancing demand-side energy efficiency. The evaluation study analyses a number of ADB-supported energy efficiency projects and interventions in South Asia and the People's Republic of China.

Among the key findings is that energy pricing and market imperfections need to be addressed to propagate energy efficiency investments. It says ADB and governments in developing member countries should support the removal of various barriers to energy efficiency investments in Asia and the Pacific. These include poor awareness among many energy users of readily available energy efficiency options and the high-risk perception of commercial banks of energy efficiency investments.

The study says that in line with the ADB's long-term vision set out in Strategy 2020, ADB is expected to move towards a balanced portfolio of supply- and demand-side energy efficiency interventions. It notes that ADB has already begun supporting some demand-side projects in recent years, and that these could be increased over the next several years in response to client demand and ADB's increased experience in preparing such interventions.



This page was generated from on 28 April 2015