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Energy Efficiency in Transport Sector

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Energy Efficiency in Transport Sector Energy Efficiency in Transport Sector Department of Renewable Energy Ministry of Economic Affairs Royal Government of Bhutan December 2015 Energy Efficiency in Transport Sector This report is a part of the studies conducted for the formulation of the draft Energy Efficiency and Conservation Policy of the Royal Government of Bhutan. The studies were conducted by Ernst and Young LLP, India as part of the Energy Plus Program:Promoting Clean Energy Development in Bhutan. This project was funded by the Government of Norway and administered by the Asian Development Bank under ADB TA- 8630 BHU: F-003 Energy Efficiency. Disclaimer: This report is intended solely for the purpose of drafting the Bhutan Energy Efficiency and Conservation Policy. It provides an outline of energy consumption in the Transport Sector. Relevant agencies may use this report as a source of information on Energy Efficiency in Transport Sector in Bhutan. However, professional advice must be sought for making decisions or implementing the recommendations. The Department of Renewable Energy and Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this report. 1 Energy Efficiency in Transport Sector Acknowledgement This report on Energy Efficiency in Transport Sector for Bhutan was initiated by Department of Renewable Energy (DRE), Ministry of Economic Affairs (MoEA), Royal Government of Bhutan (RGoB) with assistance from Government of Norway and Asian Development Bank (ADB) under the Energy Plus Programme. DRE and Ernst & Young LLP (EY) are thankful to ADB for providing the opportunity to conduct this study. DRE, EY and iTrans team express their sincere gratitude to all representatives of Department of Roads under Ministry of Works and Human Settlement, Phuentsholing Thromde, Policy and Planning Division under Ministry of Information and Communications, Road Safety & Transport Authority, and Thimphu Thromde for their valuable inputs and support. 2 Energy Efficiency in Transport Sector Table of Contents List of Tables .................................................................................................................................... 6 List of Abbreviations......................................................................................................................... 7 Executive Summary ......................................................................................................................... 9 1. Introduction ............................................................................................................................... 11 2. Transport Sector in Bhutan ....................................................................................................... 12 2.1. Mobility issues of urbanization ...................................................................... 12 2.2. The Business as Usual Future ....................................................................... 15 3. Baseline Scenario Development from Primary Survey ............................................................. 19 3.1. Survey Methodology .......................................................................................................... 19 3.2. Distance covered by different vehicles ........................................................... 20 3.3. Maintenance cost ......................................................................................... 21 3.4. Fuel efficiency of different vehicle segments ................................................... 21 3.5. Occupancy of different vehicles ..................................................................... 22 3.6. Fuel consumption ........................................................................................ 22 3.7. Barriers to EV shift ....................................................................................... 23 3.8. Energy consumption in Business As Usual Scenario ........................................ 23 3.9. Road condition and Energy Efficiency ............................................................ 24 3.10. Potential strategic implications of baseline scenario ....................................... 28 4. Energy Efficient Transport Strategies ....................................................................................... 30 4.1 Public Transit .................................................................................................. 32 4.2 Non-Motorized Transport ................................................................................... 34 4.3 Electric Vehicles .............................................................................................. 36 4.4 Fuel or Energy Taxes ........................................................................................ 36 4.5 Eco driving training .......................................................................................... 37 4.6 Recommendations to achieve the impact of strategic interventions ........................ 38 5. Quantification of Energy Efficient Strategies – The CBA .......................................................... 40 5.1 The PT introduction – Mode shift to PT ................................................................ 40 5.2 Construction of footpaths – Mode shift to NMT .................................................... 42 5.3 Eco driving training for bus drivers..................................................................... 44 5.4 Improving road conditions by constructing well paved carriage way ....................... 45 5.5 Emission Reduction and Energy Savings for all interventions ................................ 48 5.6 Conclusions .................................................................................................... 51 3 Energy Efficiency in Transport Sector 6. Strategies for a Comprehensive EE approach ......................................................................... 52 6.1 Bundling for increased efficacy .......................................................................... 54 6.2 Prioritization of projects .................................................................................... 54 6.3 Consensus building to maximizing impacts ......................................................... 57 6.4 The Policy Matrix for an Energy Efficient Bhutan .................................................. 59 7. References ................................................................................................................................ 65 8. Annexures ................................................................................................................................. 69 8.1. Annexure 1- Data from Survey ....................................................................... 69 8.2. Annexure 2: Reference unit values for PT introduction scenario ........................ 73 4 Energy Efficiency in Transport Sector List of Figures Figure 1: Urban & Rural Population Forecasts (Bhutan) 2006-2040 ............................................. 12 Figure 2: International Linkages .................................................................................................... 13 Figure 3: Location of Bhutan and Main Trading Connections ....................................................... 14 Figure 4: Vehicle growth trend, 2005-2014 ................................................................................... 16 Figure 5: Segregation of Vehicle Numbers by Type, Population and Registration Region in Percentages ................................................................................................................................... 17 Figure 6: Passenger flow trend, 2001-2013 .................................................................................. 18 Figure 7: Expected vehicle growth trend in Bhutan ....................................................................... 18 Figure 8: Distance travelled by different vehicles in a year ........................................................... 20 Figure 9: Maintenance cost of different types vehicle ................................................................... 21 Figure 10: Fuel efficiency of different vehicles in Bhutan .............................................................. 21 Figure 11: Average occupancy of a typical passenger vehicle in Bhutan ..................................... 22 Figure 12: Fuel consumed in a year by different vehicles in Bhutan (litre).................................... 22 Figure 13: Barrier to EV shift ......................................................................................................... 23 Figure 14: Energy Consumption by different segment of vehicle in Bhutan.................................. 23 Figure 15: Actionable and non-actionable energy consumption in BAU scenario ........................ 24 Figure 16: Different Type of Roads in Bhutan ............................................................................... 25 Figure 17: Road inventory audit coverage – 94 locations spread all over Bhutan ........................ 25 Figure 18: Total Net Petroleum Imports in Kilolitres for the period 2010 to 2104 ......................... 28 Figure 19: Mode share of Thimphu city ......................................................................................... 35 Figure 20: Road without walking facility in Thimphu...................................................................... 35 Figure 21: Road with on street parking and high stairs but no place to walk, Phuentsholing
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