ISLAMABAD: The Government has approved the first National Energy Efficiency and Conservation Policy 2023.
The National Energy Efficiency and Conservation Authority (NEECA) serves as the federal focal agency mandated for initiating, catalyzing, and coordinating all energy conservation activities across all sectors of the economy.
Former Energy Conservation Centre (ENERCON) was transformed into NEECA by an Act of Parliament (National Energy Efficiency and Conservation Act) in the year 2016.
As per details the promulgation of the National Energy Efficiency and Conservation (NEEC) Act of 2016 strengthened the EE&C agenda in the country and provided an overarching scope, under its sections 7(c), 10, and 11, for an inclusive and nationally representative NEEC policy. The policy aims to achieve energy-saving targets of 9 Million Tons of Oil Equivalent (MTOE) till 2030, thereby reducing 35 MTCO2 emissions. Through its market-enabling implementation approach, the NEEC policy offers a monetary saving of 6.4 billion USD/annum to the national exchequer post-2030.
The policy identifies measures to ensure deep-rooted institutionalization, operationalization, and implementation of EE&C in the country and consists of Sectoral measures for Industry, Building, Transport, Energy, and Agriculture sectors. The policy also informs, on the basis of technoeconomic analysis, enforcement mechanisms required for adoption and compliance with EE&C regulatory measures along with precise guidelines for coordination with the provincial governments and regions.
The NEEC Policy 2023 has some salient regulatory features, including ensuring compliance with minimum energy performance standards and labeling regimes for electric (Fans, Air Conditioners, Refrigerators, Motors, LEDs) and gas appliances (Geysers, space heaters, cook stoves), equipment, and products.
It also mandates energy conservation building codes, mandatory energy audits for facilities and business operations of designated consumers, accreditation of testing laboratories, and the development of industrial assessment centers in collaboration with universities in the industrial hubs of the country.
Other features of the policy include the mandatory procurement of energy-efficient equipment in all public procurements by incorporating Minimum Energy Performance Standards (MEPS) in PPRA rules, evaluation of energy-efficient appliances during basic load profiling for electricity or gas connection across commercial, household, industrial, agriculture sectors, ban on the manufacturing of inefficient lighting like incandescent bulbs, all kinds of high-intensity discharge and fluorescent lamps, and setting the energy standards and recommending preferential use of energy.
The NEEC Policy also provides for the effective complaint redressal framework, through the establishment of Energy Conservation Tribunal (ECT), to address the issues and problems faced by designated consumers, manufacturers, and/or entities regarding the energy efficiency and conservation standards of the products and equipment.
It also sets the energy consumption thresholds for designated consumers, across the sectors, shall be defined and notified, mechanisms for mandatory energy-saving plans along with clear targets and timelines for reduction in the inefficient energy use shall also be developed and implemented in the key sectors, especially Power and Gas Utilities to cut their energy losses and improve energy efficiency.
Moreover, the NEEC Policy 2023 provides for concessional financing facilities to retrofit existing buildings, appliances, and industrial facilities with a goal to shorten the payback times and encourage investments in the EE&C.
It also encourages the issuance of energy-saving certificates and bonds to designated consumers as well as the general public. The policy also aims to develop fiscal incentive schemes or measures to promote localization, production, usage, and compliance of energy-efficient products, equipment, services, and practices in the country. These incentives shall promote the indigenization plans of various sectors of the Government.
The NEEC Policy also emphasizes extensive awareness-raising campaigns and activities to encourage the culture of vehicle-free weekends.
