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					ASIA PACIFIC ENERGY RESEARCH
        CENTRE (APERC)




  REPORT ON APERC ACTIVITIES




                   THE 40TH MEETING OF

    T H E A P E C E N E RG Y W O R K I N G G RO U P ( E WG - 4 0 )

    BA N DA R S E R I B E G A WA N , B R U N E I DA R S S A L A M

                    2 2 - 2 6 N OV E M B E R 2 0 1 0




                           P AG E 1
     CONTENTS

                      Page


2010 WORK PROGRAMME      3

AND 2011 WORK PLAN


APERC RESEARCHERS        10



  ADMISTRATION           11




       P AG E 2
                            2010 WORK PROGRAMME
                         AND 2011 WORK PLAN

    1. APEC Peer Review on Energy Efficiency (PREE)
    2. APEC Collaborative Energy Efficiency Design for Sustainability (CEEDS)
    3. APEC Cooperative Pathways to Sustainable Energy Development
    4. APEC Energy Overview 2010
    5. Progress Report on Peer Review Mechanism
    6. 2011 Work Plan


                  1.   APEC PEER REVIEW ON ENERGY EFFICIENC Y (PREE)


                                             BACKGROUND
     The improvement of energy efficiency offers many cost-effective opportunities to achieve energy
security, improve business productivity and mitigate greenhouse gas emissions. In Sydney Declaration of
September 2007, APEC Leaders agreed to work towards achieving an APEC-wide regional aspirational goal
of a reduction in energy intensity of at least 25 per cent by 2030 (with 2005 as the base year).
    To this end, all APEC economies were encouraged to set individual goals and action plans for
improving energy efficiency, reflecting the individual circumstances of different economies. At the same
time, review of energy efficiency through voluntary APEC Energy Peer Review Mechanism was agreed,
with a report back to APEC Leaders in 2010.

    At the EWG 35 meeting (Iquitos, March 2008), APEC Peer Review on Energy Efficiency (PREE) was
proposed by Japan as a concrete program and endorsed by EWG members.

                                              OBJECTIVES
    The objectives of APEC PREE are to;
       Share information on Energy Efficiency performance as well as policies and measures for
        improving energy efficiency among member economies,
       Provide opportunities for learning from other member economies’ experiences and for
        broadening the network among energy efficiency policy experts,
       Explore how Energy Efficiency overall/sectoral goals and action plans could be effectively
        formulated in each APEC economy under review, taking into account the diversity of
        possible strategies to be used,
       Monitor progress toward attaining Energy Efficiency goals on an overall and/or sectoral
        basis and implementing action plans,
       Provide recommendations for voluntary implementation on how implementation of action
        plans could be improved with a view to achieving energy efficiency goals.


    To achieve the above objectives, two activities are undertaken as part of the PREE, namely:

   (1) Peer Review of volunteer member economies on the progress towards their targets in energy
       efficiency improvement (“Peer Review of volunteer member economies”)


                                              P AG E 3
   (2) Compendium of energy efficiency policies/measures and action plans of all APEC member
       economies under a common format (“Compendium”)


(1) Peer Review of volunteer member economies

                                              PROGRESS
      Guideline for Peer Review was prepared jointly by APEC EWG Secretariat, New Zealand
       and APERC.
       Inaugural Peer Review for New Zealand was carried out during the period of 23-27
       February 2009, with a review team comprised of experts from member economies and
       from APERC. This was followed by Peer Review for Chile during the period of 16-20
       March 2009 and Peer Review for Viet Nam during the period of 8-12 June 2009.
      Draft Review Report of PREE for New Zealand and Chile were discussed and endorsed
       by EWG members at EWG37 meeting in Santiago in April 2009.
      Peer Review for Vietnam was conducted on 8-12 June 2009.
      Draft Review Report for PREE in Vietnam was presented at EWG38 for its discussion
       and endorsed after the discussion.
      The fourth Peer Review for Thailand was carried out on 9-13 November 2009.
      Draft Review Reports for PREE in Thailand was presented at EWG 39 for its discussion
       and endorsed after the discussion.
      The fifth Peer Review for Chinese Taipei was carried out on 23-27 August 2010.
      The sixth Peer Review for Peru was carried out on 8-12 November.


                                             MILESTONE

      The Draft Peer Review Report for PREE in Chinese Taipei has been submitted at EWG40
       for its discussion and endorsement.
      The seventh Peer Review for Malaysia will be carried out on 26 November-3 December.


                                   KEY ISSUES IN PREE PHASE 1

      Through PREE Phase 1 in New Zealand, Chile, Viet Nam and Thailand, the barriers and
       the recommendations to overcome barriers are identified. The following barriers were
       deemed to be particularly significant.
        1. Inadequate process for monitoring and evaluating energy efficiency programs, making
           it difficult to know how effective energy efficiency programs are, and how they can be
           improved
        2. Lack of infrastructure and human resources for technical tasks, such as standards
           setting and testing of products.
        3. Lack of sufficient political support for more effective implementation of energy
           efficiency improvement policy measures.




                                            P AG E 4
(2) Compendium

                                                     OBJECTIVES
    The objective of Compendium is to serve as a basis for information sharing on energy efficiency
policies and measures which reflect the diversity of approaches that could be adopted by member
economies.

                                                      PROGRESS
         APERC presented the draft common format for compendium at the APERC workshop
          and EWG 36 in Manila for inviting comments, and it was endorsed by the EWG members
          in December 2009.
         APERC published 2009 Compendium of Energy Efficiency Policies of APEC Economies on
          APERC website in April 2010.
         APERC requested EWG members to provide APERC with updated information for the
          second edition of Compendium in October 2010.




     2.   A P E C C O L L A B O R A T I V E E N E RG Y E F F I C I E N C Y D E S I G N F O R S U S TA I NA B I L I T Y
                                                        (CEEDS)


                                                    BACKGROUND

    At the 8th Meeting of APEC Energy Ministers in Darwin, Australia in May 2007, APEC Energy
Ministers encouraged APEC economies to individually set goals and formulate action plans for improving
energy efficiency on an overall and/or sector basis. Ministers also direct the EWG to compile best
practices that can be used to help formulate and track progress towards such voluntary goals and action
plans.

  At the EWG 37 meeting in Chile, April 2008, CEEDS project was proposed by Japan and endorsed by
EWG members.

    While PREE considers the whole range of energy efficiency policies and measures for one economy at
a time, CEEDS considers specific high performance energy efficiency policies and measures for several
economies in one sector at a time. Both PREE and CEEDS are designed to be multi-year activities, with
PREE examining a continuing sequence of volunteer APEC economies, while CEEDS focuses on a
continuing sequence of sectors.


                                                     OBJECTIVES
   APEC CEEDS aims at promoting “high-performance” energy efficiency policy measures in economies
in the APEC region. The key objectives are:

-    To indentify and share information on “high-performance” energy efficiency policy measures in a
     selected sector
-    To estimate the energy saving potential of the “high-performance” energy efficiency measures in a
     selected sector in participating APEC economies
-    To assist participating economies in designing and implementing “high-performance” energy efficiency
     policy measures in a specified sector


    To achieve the above objectives, two activities are undertaken, namely;


                                                     P AG E 5
1) Analysis of energy saving potential on participating economies if high performance measures were
   implemented;
2) A set of two workshops organized with the support of host economies for the purpose of assisting
   participating economies who wish to design and implement measures for achieving energy efficiency
   improvements in the selected sectors.

  As a workshop organizer, APERC is responsible for selecting measures to be discussed, making the
workshop program, inviting APEC delegates to participate, and producing a summary report with experts’
suggestions on how selected measures might be implemented effectively in the participating economies.
APERC will also carry out a study on energy saving potentials for a selected sector, which will be presented
at the workshop.

                                                PROGRESS
           1st CEEDS Workshop, hosted by Chinese Taipei, was held on 19, 20 and 21 October
        2009, in which delegates from six economies, Chile, China, Malaysia, The Philippines,
        Thailand and Viet Nam participated. At the 1st workshop, delegates from participating
        economies worked together with experts (ASE, CLASP, IEEJ and LBNL) and APERC
        researchers to develop proposals on “Next Steps” for advancing “Appliance Energy
        Efficiency Standards and Labelling” programs in their economies.
       2nd Workshop, hosted by Japan, on 1st and 2nd March 2010. The refined proposals for
        “Next Steps”, which had undergone consultation with the delegates’ colleagues in their
        home economy, were presented by the delegates.
       Phase 2 of CEEDS project is now underway, on the theme of “Building Energy Codes and
        Labeling”.
       1st CEEDS Phase 2 Workshop, hosted by Thailand, was held on 8-10 September 2010.
        Delegates from 5 economies, China, Indonesia, Malaysia, Mexico and Viet Nam
        participated.


                                               MILESTONE

       2nd CEEDS Phase 2 Workshop on “Building Energy Codes and Labelling” will be hosted by Hong
         Kong, China on 26-28 January 2011.


                                    KEY ISSUES IN CEEDS PHASE 1

       Through CEEDS Phase 1 workshops on Appliances Standards & Labelling, several
        important common challenges are identified as follows.
         1. Limited data availability
         2. Need for more staff training and technical assistance
         3. Need to strengthen testing-lab capabilities and certification procedures.
       These challenges should be further addressed when further regional cooperation are
        explored in the future.




                                              P AG E 6
   3           A P E C C O O P E R A T I V E PA T H W A Y S TO S U S TA I N A B L E E N E RG Y D E V E L OP M E N T


                                                   BACKGROUND
      APEC Leaders and Energy Ministers have repeatedly called for APEC economies to make efforts to
achieve sustainable growth in general and energy sustainability in particular. “Sustainability” presumably
refers to a system that promotes prosperity, energy security, and protection of the environment over the
long-term. The APEC Energy Demand and Supply Outlook 4th Edition concluded that under business-as-usual
the APEC wide aspirational goal of a 25% reduction in energy intensity by 2030 (with 2005 as the base year)
is likely to be exceeded, however oil security will remain a major threat to the economy of the APEC region
and that the greenhouse gas emissions will be environmentally unsustainable.
    The research project, titled Pathways to Sustainability: Measuring APEC Progress in Promoting Economic Growth,
Energy Security, and Environmental Protection was designed to provide APEC economies with useful analysis so
that APEC economies can further develop effective policies for a more secure and sustainable energy future.


                                                     OBJECTIVE
       The project had four objectives:

       1. Respond to the APEC Leaders’ directive for a report on the voluntary APEC Energy Peer Review
          Mechanism in 2010.

       2. Discuss APEC’s progress to date in improving energy intensity, and the outlook for achieving the
          minimum 25% reduction goal by 2030.

       3. Despite the progress in improving energy efficiency, APERC’s projections suggest that more action
          will be neede if the APEC Leaders’ and Energy Ministers’ energy sustainability goals are to be met.
          The report looked at these projections. It then provided additional analysis of how APEC can
          measure its progress through comparisons with a more sustainable scenario.

       4. The report looked at the voluntary pledges that APEC economies have set for themselves to
          reduce emissions or improve energy intensity, and what impact these pledges would have on APEC
          greenhouse gas emissions if they could be achieved.


                                                      PROGRESS

          APERC published the report, Pathways to Sustainability: Measuring APEC Progress in Promoting Economic
           Growth, Energy Security, and Environmental Protection, in August 2010. The report provided further
           evidence that under business-as-usual the APEC wide aspirational goal of a 25% reduction in
           energy intensity by 2030 (with 2005 as the base year) is likely to be exceeded, however oil security
           will remain a major threat to the economy of the APEC region and that the greenhouse gas
           emissions will be environmentally unsustainable.
          The report concluded that
                Greenhouse gas emissions could be held to a level consistent with a 2 degree C temperature
                 rise assuming
                  50% 2005-2030 APEC intensity reduction
                  30% non-fossil primary energy by 2030
                  59% non-fossil electricity generation by 2030
                Even in this scenario, oil imports still problematic



                                                    P AG E 7
                                  4   A P E C E N E RG Y OV E RV I E W 2 0 1 0


                                               BACKGROUND
    At the EGEDA 11th meeting held in March 2000, the project “APEC Energy Overview” was proposed
by Australia, and it was approved at the EWG 19 meeting in April 2000. APEC Energy Overview is an
annual publication, which contains updated energy demand/supply data as well as descriptions of energy
policy and notable energy developments including energy efficiency, infrastructure development, upstream
development, energy source diversification, regulatory reform and environment protection.
    Energy demand/supply data will be drawn from the APEC Energy Database. APERC is responsible
for coordinating information gathered from member economies and preparing a draft Overview for EGEDA
review. The finalized Overview will be published by APEC. The Overview is published on both the APEC and
APERC websites. Since the inaugural issue in 2001, nine editions have been issued.


                                                 OBJECTIVE
   The objective of APEC Energy Overview is to share information on government energy policies of
 member economies, and to provide useful information and insights to policy makers in the region.


                                                 PROGRESS
       APERC has been gathering relevant information for APEC Energy Overview 2010.


                                                MILESTONES
       APERC will circulate the draft of APEC Energy Overview 2010 to all member economies for
        their peer review. APERC is aiming at publish it on the website in early 2011.


                5   P RO G R E S S R E P O RT O N A P E C P E E R R E V I E W M E C H A N I S M


                                               BACKGROUND
In their 2007 Sydney Declaration the APEC Leaders agreed to:
1. “facilitate and review progress through the voluntary APEC Energy Peer Review Mechanism,
   as established by APEC Energy Ministers in May 2007, with a report back to APEC Leaders in
   2010” and
2. “work towards achieving an APEC-wide aspirational goal of a reduction in energy intensity of
   at least 25 percent by 2030 (with 2005 as the base year).”


                                                 OBJECTIVE
The progress report aims to deepen the understanding on effectiveness of Energy Peer Review Mechanism
among APEC economies, and to encourage a broader participation of member economies in the PREE
and CEEDS projects. The progress report also explores the viability of the future plan that Peer Review
Mechanism could be extended to assist interested economies in developing renewable energy policies that
support energy security and environmental objectives.


                                                 PROGRESS
       At the 9th APEC Energy Ministers Meeting ( EMM9) in Fukui in June,2010, the APERC
        presented report on progress of the APEC Peer Review Mechanism and APEC-wide
        aspirational goal for energy intensity improvement.


                                                P AG E 8
                                      6   2 0 1 1 - 2 0 1 2 WO R K P L A N



                                             BACKGROUND
In their Fukui Declaration in June 2010 on “Low-Carbon Paths to Energy Security: Cooperative Energy
Solutions for a Sustainable APEC”, APEC Energy Ministers instructed the EWG to assess the potential for
reducing the energy intensity of economic output in APEC economies between 2005 and 2030, beyond the
25 percent aspirational goal already agreed by the APEC Leaders, with the assistance from APERC,
EGEDA and EGEEC.
In their Fukui Declaration, the APEC Energy Ministers also instructed the EWG and APERC “to keep
promoting energy efficiency through the Peer Review on Energy Efficiency (PREE) and the Cooperative
Energy Efficiency Design for Sustainability (CEEDS), and to consider follow-up efforts including capacity
building activities, policy research support and processes to gauge the success of member economies’
efforts to implement the recommendations of these programs”.
At the same time, the Ministers also instructed the EWG to “explore mechanisms to encourage economies
to set individual goals and action plans for introducing low-emission power sources, building upon the
success of the PREE, with assistance from APERC and relevant technology expert groups”.
In 2011-2012, APERC’s work plan is designed to assist EWG in responding to these instructions.


                                            THE WORK PLAN
    1. 5th Edition of APEC Energy Demand and Supply Outlook
        APERC is aiming at updating the long-term APEC Energy Demand and Supply Outlook by
        early in the first half of 2012. In the process of updating, APERC will assess the potential
        for reducing the energy intensity of economic output in APEC economies between 2005
        and 2030, beyond the 25 percent aspirational goal already agreed by the APEC Leaders.


    2. Follow-up and expansion of APEC Peer Review Mechanism
            (A) Continuation of PREE and Follow-up PREE
            As PREE is a multi-year project, the 8th and 9th Peer Reviews on Energy Efficiency
            in volunteer member economies are planned to be conducted in 2011.
            (B) Follow-Up PREE
            Based on the APEC Energy Ministers’ instructions, the first Follow-up PREE activity
            is planned to be carried out in 2011-2012 in one former PREE host economy. It will
            aim to assist the economy in implementing the recommendations of the PREE review
            team.
    3. Continuation of CEEDS
        As CEEDS is also a multi-year project in several phases, the CEEDS Phase 3 on “Energy
        Efficiency Policies in Transportation Sector” is planned to be carried out in 2011-2012.


    4. Peer Review on Low-Carbon Energies (PRLCE).
        Based on the APEC Energy Ministers’ instructions to explore mechanisms to encourage
        APEC economies to set individual goals and action plans for introducing low-emission
        power sources, Peer Review of Low-Carbon Energies (PRLCE) is planned to be started in
        2011. Modelled on the successful Peer Review of Energy Efficiency, PRLCE is planned to
        assist volunteered economies in developing policies that support energy security and
        environmental protection through promoting low-carbon energy supply.


                                              P AG E 9
                           APERC RESEARCHERS
   APERC researchers are generally drawn from energy research agencies, both government and non-
government, in member economies. The minimum term of researchers’ supported by APERC’s budget is
one year, which may be extended subject to consultations with the relevant organisations in APEC
member economies.

    As of November 2010, APERC has a total researcher of 14.

Table 1: APERC Researchers



                 Name
 Kenji Kobayashi (President)
 Ralph D. Samuelson
 (Vice President)
 Satoshi Nakanishi
 (General Manager)
 Weerawat Chantanakome
 (Senior Team Leader)
 Sergey Popov
 (Team Leader)
 Tran Thanh Lien
 (Team Leader)
 Yi-Hsieh Huang
 (Team Leader)
 Mardrianto Kadri
 Chandran Sundaraj
 Joel Hernandez-Santoyo
 James C. Russell
 Svetlana Vassiliouk
 Kate Louise Penney
 Jianguo Zhang
 Goichi Komori




                                           P AG E 10
                                         ADMINISTRATON
                                           A P E RC R E V E N U E A N D E X P E N S E S


   Since its inception, APERC’s budget has been provided by the Japanese government and partly in fiscal
 2004, 2005 & 2006 by the Australian government.
    This has been used to facilitate research activities, including publication of research reports, know-how
transfer programmes to the member government, and the energy data network service.
    The table below is a summary of annual financial statements since APERC was created in July 1996.

Table 2: APERC Revenues and Expenses

                                                                                                                           Unit: million yen
Fiscal Year                         1996   1997   1998   1999     2000   2001    2002   2003   2004   2005   2006   2007    2008 2009            2010
                                   9mns                                                                                                        Estimate


Revenue from:
  Japanese Government              374      626   681    729      619      634   594    547    525    528    498    446      447      418        425
  Australian Government                                                                         8      8      8


Total of Revenue                   374      626   681    729      619      634   594    547    533    536    506    446      447      418        425


Expenses:
 Energy Efficiency / APEC Energy   227      443   494    550      455      469   434    390    379    377    377    338      339      318        325
  Demand & Supply Outlook /
   Related Research Programmes


 Know-How Transfer Programmes       54      65     65     58      58       60    53     59     53     46     41     31        28       20        20
 Energy Data Network Service        93      118   122    121      106      105   107    98     101    113    88     77        79       80        80


Total of Expenses                  374      626   681    729      619      634   594    547    533    536    506    446      447      418        425




                                                               P AG E 11

				
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