The National Energy Efficiency and Conservation Authority (NEECA) is the federal agency charged with initiating, catalysing, and coordinating energy conservation efforts across all economic sectors.
Former Energy Conservation Centre (ENERCON) was renamed NEECA in 2016 by a Congressional Act (National Energy Efficiency and Conservation Act).
The enactment of the National Energy Efficiency and Conservation (NEEC) Act of 2016 bolstered the nation’s energy efficiency and conservation (EE&C) agenda and provided an inclusive and nationally representative NEEC policy with its sections 7(c), 10, and 11. The policy seeks to achieve 9 Million Tonnes of Oil Equivalent (MTOE) in energy savings by 2030, thereby reducing 35 Million Tonnes of Carbon Dioxide (MTCO2) emissions. Post-2030, the national treasury will save $6.4 billion annually due to the NEEC policy’s market-enabling implementation strategy.
The policy identifies measures to ensure institutionalisation, operationalization, and implementation of EE&C in the country and includes sectoral measures for the Industry, Building, Transportation, Energy, and Agriculture sectors. On the basis of technoeconomic analysis, the policy also specifies the enforcement mechanisms required for adoption and compliance with EE&C regulatory measures, as well as the guidelines for coordination with provincial and regional governments.
Important regulatory features of the NEEC Policy 2023 include ensuring compliance with minimum energy performance standards and labelling regimes for electric (Fans, Air Conditioners, Refrigerators, Motors, LEDs) and gas appliances, equipment and products (Geysers, space heaters, cook stoves).
In addition, it mandates energy conservation building codes, mandatory energy audits for facilities and business operations of designated consumers, accreditation of testing laboratories, and the establishment of industrial assessment centres in collaboration with the nation’s universities.
Other features of the policy include mandatory procurement of energy-efficient equipment in all public procurements by incorporating Minimum Energy Performance Standards (MEPS) into PPRA rules, evaluation of energy-efficient appliances during basic load profiling for electricity or gas connection across commercial, household, industrial and agriculture sectors, and a ban on the production of inefficient lighting such as incandescent bulbs and all types of high-intensity discharge lamps.
The NEEC Policy also establishes an effective complaint redress framework with the establishment of the Energy Conservation Tribunal (ECT) to address the issues and problems encountered by designated consumers, manufacturers, and/or entities in relation to the energy efficiency and conservation standards of the products and equipment.
It also specifies that the energy consumption thresholds for designated consumers across all sectors shall be defined and notified, and that mechanisms for mandatory energy-saving plans along with clear targets and timelines for reduction of inefficient energy use shall be developed and implemented in the key sectors, particularly Power and Gas Utilities, in order to reduce their energy losses and increase their energy efficiency.
In addition, the NEEC Policy 2023 provides concessional financing for retrofitting existing structures, appliances, and industrial facilities in an effort to reduce payback periods and encourage investments in EE&C.
Additionally, it promotes the issuance of energy-saving certificates and bonds to both designated consumers and the general public. The policy also seeks to develop fiscal incentive schemes or measures to encourage the localization, production, utilisation, and compliance of energy-efficient products, equipment, services, and practises within the country. These incentives will promote the indigenous strategies of various government sectors.
Additionally, the NEEC Policy emphasises extensive awareness-raising campaigns and activities to promote the culture of car-free weekends.