Joint study with European Chamber of Commerce Singapore on market potential in energy efficiency 

The Sustainability Committee of the European Chamber of Commerce, Singapore in collaboration with Roland Berger Strategy Consultants on the occasion of the European Business Forum at the Clean Energy Expo Asia 2011, proudly launches a study on: “Market Potential in Energy Efficiency in Southeast Asia – A systematic approach to opportunities and challenges in Southeast Asian Countries.”

Southeast Asia offers immense opportunities for energy efficiency technologies, but the market potentials need to be tackled systematically by government and industry. This is the key finding of a new study conducted by the Sustainability Committee of the European Chamber of Commerce, Singapore and Roland Berger Strategy Consultants.

The study addresses the development of the energy demand, the energy related investments and the spending in Southeast Asia, and possible ways to address this increasing appetite for energy using energy efficiency technologies. Energy efficiency programmes offer large energy saving potentials and open vast new business opportunities: by 2020, Southeast Asia could achieve efficiency gains between 12% and 30% and reduce costs by USD 15 billion to USD 43 billion. Mr Willi Hess, Chairman of the EuroCham Sustainability Committee comments:

“With rapidly growing need for energy and shrinking resources of fossil fuels, energy efficiency technology is a paramount component in progress towards a sustainable supply of energy in the future. At the same time, it has a potential to benefit businesses by reducing costs to consumers, improve competitiveness and enhance overall productivity.”

The study features opinions of prominent specialists from private sectors on how to capture the energy saving potential most effectively. Although progresses in both government policy and private sector initiatives can be observed in Southeast Asian countries, the study identified barriers to be addressed at multiple levels of the value chain to stimulate the diffusion of energy efficiency technologies.

Jihong He, a principal from Roland Berger Strategy Consultants, shares her view after extensive discussions with key industry players: “Many companies are facing several issues in developing the energy efficiency market in Southeast Asia: insufficient energy efficiency standards and governments policy, expectation mismatch and information asymmetries among different players along the value chain, as well as shortage of funding options to finance energy efficiency projects. Awareness for energy efficiency is still low for both businesses and consumers in this region. “

Companies that participated in the study call for governments to take decisive actions in the coming few years to promote energy efficiency technologies, providing an overarching policy framework by combining mandatory and voluntary policies, and playing an essential role as the integrator of different players in the value chain.
“At the same time, private sectors need to be more pro-active in developing the energy efficiency market. We recommend that suppliers add service components to their energy efficiency products, extending their portfolio in order to offer a holistic solution along the value chain,” comments Joost Geginat, managing partner of Roland Berger Strategy Consultants Southeast Asia. “Multinationals can act as catalysts by applying the same guidelines for energy utilization and ensuring that best practices are adopted across their international operations. These companies can set the standard in energy efficiency for their industries and act as role models in Southeast Asia.”

Source: Roland Berger Strategy Consultants / Singapore, November 3, 2011
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