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National Energy Efficiency and Conservation Policy

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National Energy Efficiency and Conservation Policy Technical Assistance Consultant’s Report Project Number: 46389-001 2015 Republic of the Union of Myanmar: Institutional Strengthing of National Energy Management Committee in Energy Policy and Planning (Financed by the Japan Fund for Poverty Reduction and the Technical Assistance Special Fund) FINAL REPORT Prepared by TA 8356-MYA, Felix Gooneratne, Consultant, International Institute for Energy Conservation For the Oil & Gas Planning Department of the Ministry of Electricity & Energy This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proprosed project’s design. Asian Development Bank Energy Efficiency & Conservation Policy, Strategy and Roadmap MYANMAR TABLE OF CONTENTS Executive Summary 1 INTRODUCTION ........................................................................................... 1 1.1 Report Structure ........................................................................................... 1 2 ENERGY EFFICIENCY ACTIVITIES IN MYANMAR ................................................. 2 2.1 Introduction .................................................................................................. 2 2.2 Current Energy Situation in Myanmar ............................................................. 2 2.2.1 Summary of Energy Situation ................................................................................................. 2 2.2.2 Energy Supply and Consumption Characteristics...................................................................... 4 2.2.3 Electricity Supply and Consumption ........................................................................................ 5 2.2.4 Electricity Demand Profile and Forecast .................................................................................. 7 2.3 Past and Current Energy Efficiency Activities ................................................... 8 2.3.1 Past Energy Efficiency Initiatives and Outcomes ...................................................................... 8 2.3.2 Energy Efficiency and Conservation Activities of the Ministry of Industry ................................... 9 2.3.3 Planned Energy Efficiency Initiatives ..................................................................................... 10 3 ENERGY EFFICIENCY POTENTIAL .................................................................. 11 3.1 Introduction ................................................................................................ 11 3.2 Industrial Sector – EE Best Practices and Technologies .................................. 12 3.2.1 Pulp and Paper Industry ...................................................................................................... 12 3.2.2 Iron and Steel Industry ....................................................................................................... 17 3.2.3 Cement Industry ................................................................................................................. 18 3.2.4 Textile and Garment Industry .............................................................................................. 21 3.2.5 Sugar Industry .................................................................................................................... 23 3.2.6 Rice Milling Industry ............................................................................................................ 25 3.2.7 Ceramic and Brick Industry .................................................................................................. 27 3.2.8 Thermal Power Plants .......................................................................................................... 30 3.2.9 Summary of Potential Energy Savings in Industrial Sector ...................................................... 33 3.3 Commercial Sector Assessment .................................................................... 34 3.4 Residential Sector Assessment ..................................................................... 34 3.5 Public Sector Assessment ............................................................................ 36 3.6 Barriers to Energy Efficiency Implementation ................................................ 36 3.7 Energy Saving Targets ................................................................................. 37 3.7.1 Data Limitations .................................................................................................................. 37 3.7.2 Approach ............................................................................................................................ 37 3.7.3 Energy (Electricity) Saving Potential by Sector ...................................................................... 38 3.7.4 Potential Biomass Savings .................................................................................................... 39 3.7.5 Calculation of EE Policy Target ............................................................................................. 39 4 PROPOSED ENERGY EFFICIENCY POLICY ........................................................ 41 4.1 Current Energy Efficiency Related Policies ..................................................... 41 4.1.1 National Energy Policy ......................................................................................................... 41 4.1.2 Other Related Policies .......................................................................................................... 42 2015 i Energy Efficiency & Conservation Policy, Strategy and Roadmap MYANMAR 4.2 Proposed Work Program for EE&C under the Energy Policy ............................ 43 4.2.1 Required Legal and Regulatory Frameworks to Support EE&C ................................................ 43 4.2.2 Dedicated Department of EE&C Implementation ................................................................... 43 4.2.3 Capacity Building and Awareness Programs .......................................................................... 43 4.3 Vision Statement ......................................................................................... 43 4.3.1 Core Values of Energy Efficiency .......................................................................................... 44 4.4 Goals and Objectives ................................................................................... 45 4.4.1 National Energy Saving Potential .......................................................................................... 45 4.4.2 Overall Policy Goal for Energy Efficiency ............................................................................... 45 4.5 Strategic Objectives .................................................................................... 46 4.6 Monitoring and Evaluation ........................................................................... 46 5 PROPOSED ENERGY EFFICIENCY ROADMAP .................................................... 47 5.1 Background ................................................................................................ 47 5.2 Proposed Activities by Sector ....................................................................... 47 5.3 Common Activities ....................................................................................... 50 5.4 Capacity Building of EECD ............................................................................ 53 5.5 Implementation Roadmap............................................................................ 54 5.6 Proposed Myanmar National EE Roadmap ..................................................... 55 5.6.1 Year 1 – Establishment of EECD, Capacity Building and MEPS for Appliances .......................... 55 5.6.2 Year 2 - Short Term Activities .............................................................................................. 56 5.6.3 Year 3 – Medium Term Activities .......................................................................................... 58 5.6.4 Year 4 - Long Term Activities ............................................................................................... 59 6 IMPLEMENTATION PLAN ............................................................................. 60 7 CONCLUSIONS AND RECOMMENDATIONS ....................................................... 61 8 ANNEXES ................................................................................................. 63 8.1 Proposed Energy Efficiency Strategy ............................................................. 64 8.1.1 Introduction ........................................................................................................................ 64 8.1.2 Vision ................................................................................................................................. 64 8.1.3 Goals and Objectives ........................................................................................................... 65 8.1.4 Strategic Framework ........................................................................................................... 65 8.1.5 Common Issues of the Energy Efficiency Strategy ................................................................. 67 8.1.6 Strategic Objectives per Sector ............................................................................................ 67 8.1.7 Structure and Functions of EECD .........................................................................................
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