INGENIEUR
Policy Options for Improving
Energy End-use Efficiency
By Prof. Ir. Dr K S Kannan
Technical Advisor
United Nations Industrial Development Organisation (UNIDO)
A. Industrial sector
The industrial sector consumes a large share of
the total primary energy supply. It also has the
greatest scope for significant improvement in end-
use efficiency.
To realize energy savings in the industrial
sector, the Government needs to create various
mechanisms to support the improvement of end-
use energy efficiency.
Institutional support could be provided
for the industrial sector to build up technical
capabilities and increase technological know-how
among relevant personnel (at all levels) as well
as make available information on state-of-the-art
technologies. This can be achieved through the
establishment of an energy training centre that
would coordinate all efforts on energy efficiency
including promotion, dissemination of information,
support for demonstration projects and capacity-
building for all stakeholders (e.g. decision-making,
policy making, energy systems and users). In
addition, energy-use benchmarking activities,
such as collection of best practices, could be
conducted to ensure the continuous improvement
of energy management activities. Continuously
conducting energy efficiency training and
development programs would also be beneficial to
the major players of the sector.
Legislative support is needed in the
establishment of an institution that would oversee
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energy-efficiency activities. In addition, legislative
backing is needed to set up and administer
regulations, standards and programs to promote
energy efficiency. Some of the activities requiring
legislative support involve the establishment
of equipment standards, the appointment of
energy managers, the conduct of mandatory
energy audits, the provision of financial and
fiscal incentives, the participation of public
and private entities, the signing of voluntary
agreements, the settlement of targets, reporting
and benchmarking, the conduct of research,
development and promotional activities and the
strengthening of integrated industrial energy-
efficiency policies.
B. Transport sector
Transportation is an important component of the
economy. Recent developments in engineering
and technology and a phenomenal increase in
the size of this sector have brought significant
changes to society, not only economically but
also environmentally. The increasing amount of
pollution particularly in urban areas, is attributed
to a heavy dependence on road transport and
therefore fossil fuels.
Thus, policies encouraging the development
of other modes of transport with a goal of
balanced transportation network and continued