Utility-Led Demand-Side Management:

Strategies for Scaling Up Investment in End-Use Efficiency in Developing Asia

19 June 2014

Communiqu
A conference on Clean Energy Forum jointly organized by Asian Development Bank (ADB), World
Energy Council (WEC) and USAID was held last week in Manila, Philippines from 16-20 June, 2014.KElectrtic being

About the Asia Clean Energy Forum

The Asia Clean Energy Forum is the premier knowledge- sharing event on clean energy in the region. It
attracts a diverse group of stakeholders including governments, national and multinational banks, carbon
and clean energy investment funds, project developers and service providers, academics and civil society,
and development partners and other international organizations. The forum provides a dynamic platform
for crosscutting debates and discussions on clean energy development and financing, climate change,
energy access and security, and governance in the energy sector.
A total of 44 experts and officials from 14 countries1 participated in a Deep Dive Workshop to address the
challenge of how to systematically scale up investment in energy efficiency using utility-driven demand
side management (DSM) and other models. Participants reviewed case studies of DSM programs in the
China, Hong Kong, India Malaysia, Pakistan, Thailand, and the U.S. They discussed what steps can be
taken to promote utility-driven DSM, build capacity in the region, and track and monitor ongoing DSM
efforts in developing Asia.
Agreements
Participants agreed on the following points:
More than US$ 12 billion is being spent by utilities each year globally on DSM programs, but
only a small fraction of this is being spent in Developing Asia, which has the worlds fastestgrowing economies and rapidly growing energy demand. An expansion of DSM programs could
make a significant impact, by expanding energy access to clean and affordable energy, and thus
supports the core objectives of the UN Sustainable Energy for All initiative.
ADB estimates that a total of more than $100 billion a year is needed for developing Asia in order
for countries to meet their government-established national EE targets by 2020.2
DSM increases the efficiency and reliability of the overall power system, thus reducing the need
for additional capacity. It also brings significant and immediate environmental, societal, and
economic benefits, for the utility as well as for the countries economies.
Given the vast potential for DSM in Asia, and the existence of ambitious government targets for
energy efficiency in many Asian countries, it is important to significantly accelerate the pace at
1

Australia, China, India, Finland, Japan, Malaysia, Nepal, Pakistan, Philippines, Portugal, Singapore, Thailand,
Vietnam, United States
2

ADB.Same Energy, More Power: Accelerating Energy Efficiency in Asia. June 2013.

which utilities are implementing DSM across developing Asia. To accomplish this, it is essential
to convince utilities that DSM can be a business that can be mainstreamed in utility strategy.
Smart grid activities can have important system benefits for the power system, and they should
also be linked to a countrys DSM strategy. It is critical for smart grids to be implemented as part
of an overall DSM consumer engagement effort, and not as a stand-alone technical project.
Participants shared a vision for DSM to play an increased role in their countries energy plans:
while only 10% of participants said that DSM was currently of high importance in their countrys
clean energy and climate plans, more than three quarters of (78%) saidthat they expect DSM to be
of high importance in 10 years time.

Priorities and Next Steps

Participants agreed on the following priorities and next steps:
It is of high value to share information face to face and learn from each other. Participants agreed
to work to develop a regional network that can support effective consumer awareness and
information exchange, and peer-to-peer learning in design, implementation, and evaluation of
DSM programs in Asia.3
Development of a web-based portal that would focus exclusively on collecting data on DSM
programs implemented in Asia, including amounts of investments, impacts, benefits, and cost
effectiveness.
Development of a Briefing Paper to publicize DSM success stories, that would describe why
DSM initiatives were implemented, what was done, and what was achieved.
Development of showcase programs in several countries that have not yet implemented EERS or
the Standard Offer, with peer-to-peer assistance from policymakers and/or regulators who work
in a country that has implemented these mechanisms, in order to demonstrate
A focused regional workshop on EERS, the Standard Offer, and related topics with invited
participants, including policymakers, utilities, regulators, development agencies, and energy
services companies and implementers.
Development agencies and banks (including ADB) can play an important role in supporting this
effort to scale up DSM in Developing Asia, by engaging and influencing ministers and
policymakers to build support for robust DSM policy and regulatory frameworks; fund, monitor
and evaluate trials and pilot programs; and provide technical assistance and capacity building
during implementation.
Development Financing Institutions should commit to provide an increased share of their energy
infrastructure lending for DSM and end-use efficiency efforts, and the loans should be at special
terms.

Manila, 19 June 2014

Nexant agreed to assume the role of coordinator and facilitator of the network during the initial phase of network
development, and to collect and share information, and facilitate regular communication among members.