New formula in place to save 6 Billion

New formula in place to save 6 Billion

If the successful implementation of Minimum Energy Performance Standards(MEPS) and the Energy Efficiency Conservation Policy (EECP) can beachieved, an investment of $1 billion in energy-efficient technologies hasthe potential to yield benefits exceeding $6 billion. This information waspresented during the 6th Islamabad Policy Exchange event hosted by PRIME(Policy Research Institute of Market Economy).

The event drew attendance from government and private sector policypractitioners. The discussion primarily centered around introducing EECPand MEPS in Pakistan, as presented by the National Energy Efficiency andConservation Authority (NEECA). The Islamabad Policy Exchange serves as aplatform for open policy discussions among stakeholders, conducted underChatham House rules. Experts at the event informed the audience about themechanics of these new policies, the necessary infrastructure to supportthem, and strategies for advocacy.

They emphasized the need to cultivate a culture of energy efficiency inPakistan, whether through advertising or NEECA’s policy initiatives.Furthermore, the experts highlighted the core objectives of MEPS and EECP:

1. Reducing energy inefficiency in both residential and commercialsettings.

2. Mandating minimum energy performance standards for all industries.

3. Promoting energy audits to ensure provincial and local-level businessesoperate efficiently.

These policies will be enforced across all provinces, with potential finesof up to Rs. 1 million to be determined by the Cabinet. The planningcommission will oversee coordination with provincial and local governmentsin their respective regions.

The experts also pointed out challenges faced by NEECA in policyimplementation, including a lack of testing facilities for technologyefficacy and insufficient prioritization compared to other governmentprojects.

Concerns about bureaucracy and red tape surrounding energy audits wereraised, along with the need for greater awareness among businesses aboutthe benefits of energy auditing. Industries fear penalties fornon-compliance with MEPS and EECP, potentially leading to subsidyrevocations.

Additionally, there is a general public mistrust of the government’sability to increase consumer savings through MEPS and EECP. Advocacy andpromotion efforts are deemed essential to ensure compliance with thesepolicies. Regarding energy auditing, firms have received incentives,including the first 100 energy audits being free.

NEECA can introduce special seals to signify energy-efficient appliancesand equipment, guaranteeing their tested efficiency. Leveraging communitiesacross Pakistan can help promote the concept of energy efficiencyeffectively.