Nexus of Energy Efficiency and Energy Access in ASEAN: Trends and Financing Schemes

Abstract

The Association of Southeast Asian Nations’ (ASEAN) accelerated economic performance and projected growth in recent years requires increasing energy demands across the region. As it plans to reduce energy intensity by 20% by 2020 and 30% by 2025, it is important to realize the of energy efficiency context and optimize its use for the ASEAN energy sector which is now dubbed first fuel rather than hidden fuel or fifth fuel due to its viability in the region.

Some countries in the region, i.e., Malaysia and Thailand, are already stepping up efforts in the development of innovative financing models that combine public and private investments on energy efficiency. Based on common findings, the other countries should also adopt the mechanisms for a smooth transition toward innovative energy efficiency efforts.

The chapter has analyzed sectorial practice & challenges and policy instruments used for energy efficiency management in the ASEAN countries. It has also assessed institutional capacity, financial mechanism, and relevant cases of innovative financing schemes and energy investment mechanisms. Based on the study findings, it is suggested to develop relevant guidelines for project developers and market players specially for revising fossil fuel subsidies. An all-stakeholder contribution, especially private sector participation and an awareness raising campaign for energy investors and general public should be conducted. A transparent and accountable financing, reporting, and verification method should also be followed and successful financing schemes should be replicated in the other ASEAN member states.