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JICA Thematic Guidelines on

Energy Conservation

February 2005

Japan International Cooperation Agency (JICA)


JICA has issued the “JICA Thematic Guidelines,” which has systematically summarized its
accumulated experience and knowledge on development issues, its basic concept, its cooperation
policies and points to remember upon implementation of projects. The guidelines of “Energy
Conservation” propose the JICA’ s basic concept, including cooperation approaches and methods in
order to realize energy conservation in developing countries.
At present, energy consumption in the world has been increasing and fossil fuels comprise large
proportion to the overall energy use. In addition to the concerned issue on future exhaustion of
resources, global warming is also becoming a serious concern due to higher concentration of CO2
emissions in the air through the use of these resources. In regards to effective countermeasures
against these global issues, the international community has actively made efforts on the promotion
of energy conservation such as building the international framework in accordance with the Kyoto
On the other hand, countries still tend to focus on economic development rather than
environmental countermeasures. Especially in developing countries, demand for energy has
continuously increased due to the population growth and industrialization. It is expected that the
world energy consumption will significantly increase, mainly in developing countries in the 21st
century. It is necessary for both developed and developing countries to promote energy conservation
in order to resolve the global issues for the future.
In the guidelines, Chapter 1, “Overview of Energy Conservation”, will explain the definition of
energy conservation , review current situations and problems of energy conservation in Japan based
on an understanding of global issues, and summarize the assistance trends of Japan and the rest of
the world.
In Chapter 2, the relationship between purposes (energy security, global environmental measures,
income increase), means and targets (industrial, household, and transportation sectors) of energy
conservation are analyzed. In addition, effective approaches in response to these issues are classified
into three as follows: structuring of energy conservation systems, implementation of administrative
services on energy conservation, and the promotion of the energy conservation market.
Moreover, Chapter 3 introduced JICA’s ffective approaches to carry out its cooperation
in the area of energy conservation, and its overall cooperation policy is identified based on
successful examples of cooperation projects. The agenda for the future is also proposed, including
priority issues by countries, conventional rules in counterpart countries, issue-based approaches,
program approaches, environmental issues, and the partnership with other organizations, with

identifying points to be taken into consideration in projects.
Energy conservation is an important tool to deal with global issues such as the future exhaustion
of resources and global warming. JICA hopes that the guidelines will be not only some supports for
cooperation on energy conservation but also reference for other development issues.
In the meantime, as mentioned in the Guidelines, the issue of global warming is comprised of both
the energy and environmental sector. Therefore, the Guidelines are to be flexibly reviewed and
revised in accordance with the guidelines of global environmental issues. In this way, the group II of
Economic Development Department of JICA, in charge of natural resources and energy, will
continue its endeavors to obtain and analyze the latest information on a regular basis.

Lastly, we very much appreciate relevant actors inside and outside JICA, who made great efforts
on the publication of the Guidelines. We also sincerely appreciate the efforts of task force members
who have been devoted to the formulation of the guidelines.

February 2005

Table of Abbreviations

Abbreviation Title
CDM Clean Development Mechanism
COGEN Abbreviation of Cogeneration. A group based on European countries.
DANCED Danish Cooperation for Environment and Development
ESCO Energy Service Company
ECCJ Energy Conservation Center Japan
F/S Feasibility Study
GAP Green Aid Plan
GEF Global Environmental Facility
GTZ The Deutsche Gesellschaft fur Technische Zusammenarbeit
EIE/NECC Turkey National Ministry Energy Center
EIE/UETM Predecessor of EIE/NECC
IIP Basic unit of energy consumption
IPCC Intergovernmental Panel on Climate Change
JBIC Japan Bank for International Cooperation
JETRO Japan External Trade Organization
JI Joint Implementation
JIS Japan Industrial Standard
NEDO New Energy and Industrial Technology Development Organization
QC Quality Control
TPM Total Productive Maintenance
TQM Total Quality Management
UNDP United Nations Development Program
UNEP United Nations Environment Program
UNIDO United Nations Industrial Development Organization

JICA Thematic Guidelines on Energy Conservation

Preface 2
Table of Abbreviations 4
Index 5
Chapter 1 Overview of Energy Conservation
1-1 Definition of Energy Conservation 7
1-1-1 Energy Conservation 7
1-1-2 Electric and Heat Energy 8
1-2 Current Situation of Energy Conservation 9
1-2-1 Overview of International Energy Conservation 9
1-2-2 Overview of Energy Conservation in Japan 10
1-3 Assistance Trends of Japan 19
1-3-1 JICA’s Cooperation on Energy Conservation 19
1-3-2 JICA’s Achievements in Assistance 22
1-3-3 Energy Conservation Projects in Developing Countries
by Organizations in Japan other than JICA 24
1-4 International Assistance Trends 29
1-4-1 International Assistance Trends towards Global Warming 29
1-4-2 Other Assistance Trends towards Energy Conservation 32
Chapter 2 Approaches to Energy Conservation
2-1 Purposes of Energy Conservation 34
2-2 Effective Policy Approaches to Energy Conservation 35
Chapter 3 Cooperation Policies of JICA
3-1 Focused Cooperation Activities of JICA and Points to Note 44
3-1-1 JICA’s Effective Cooperation on Energy Conservation (Concept of Projects) 44
3-1-2 JICA’s Effective Cooperation on Energy Conservation (Concept of Programs) 50
3-1-3 Countries with Assistance Priority 55
3-1-4 Points to Note upon Cooperation 56
3-2 Future Top-Priority Issues 58
3-2-1 Formulation of New Projects and Programs
by Utilizing the Thematic Guidelines 58
3-2-2 Promotion of Partnerships in the Related Fields 58
3-2-3 Responses to Assistance for Business-Based Energy Conservation 58
3-2-4 Establishment of Performance Measurement for Programs and Projects 59

Attached Materials
Appendix 1 Major Cooperation Project 60
Appendix2 Cooperation Activities of Major Donors in the Field of Energy Conservation 73
Appendix3 Quotations, References, and Web Sites 74

Chapter 1 Overview of Energy Conservation

1−1 Definition of Energy Conservation

1−1−1 Energy Conservation
Energy conservation means energy prevention from being wasted more than its purpose of use
such as turning off lights on a frequent basis and not extremely cooling rooms with air-conditioners,
and improvement of efficiency of energy use through technological improvement.

Generally, “Shoene (in Japanese)” (a translated term in English is “energy efficiency” or “energy
conservation”) is a common term and is familiar to us in daily lives.
As a broader definition in development assistance, “energy conservation” means enhancing
efficiency of energy consumption throughout a society. In general, “energy” can be classified as
in Figure 1-1, and it would be easier to understand if “energy conservation” is classified in the
same manner. In addition, in Figure 1-1, turning off lights on a frequent basis, which is quite familiar
in daily life, is categorized as energy conservation in the household sector.


Demand side Supply side

Industry Household Transportation Exhaustible sources Non exhaustible resources

Figure 1-1 Classification of “demand side” and “supply side” of energy

<Details of “energy” sectors >

・Industrial sector: factories〔manufacturing industry(iron manufacture, nonferrous manufacture,
machinery, chemical industry, ceramic industry, textile industry, paper and pulp industry,
food industry, etc.), power generation industry, city gas, petroleum products, and heat
supply, etc.)
・Household sector: buildings(offices, shopping malls, hospitals, and hotels, etc.)and home etc.
・Transportation sector: vehicles, boats and vessels, aircrafts, transportation systems, and physical

distribution systems, etc.
・Non- renewable resources: oil, coal, natural gas, and nuclear power, etc.
・Renewable resources: hydraulic, geothermal and wind power, solar energy, and biomass, etc.

Energy conservation means enhancing “efficiency of energy consumption (≒ demand), ” which

is, thus, compatible with the enhancement in the industrial, household, and transportation sectors on
the “demand side, ” according to Figure 1-1. In the issue of energy conservation, the energy
suppliers of electric power, city gas and others are included in the demand side of factories as one of
energy consumers since they use resources (primary energy) to create products (secondary energy).
Enhancing efficiency of energy consumption for private power generation and of energy production
process (e.g., efficiency of power generation and improvement of power transmission in power
plants) is also the target of energy conservation. However, energy conservation on electric power is
presented in the “Thematic Guidelines on Energy Supply” and it is not the main subject in this
The term of energy conservation has various definitions. The term is often defined as “to reduce
the consumption of non-renewable resources”. In Japan, since energy conservation has been
promoted in its history based on unique background, the so-called “oil shock,” it is often defined as
“to reduce oil consumption” among non-renewable resources in particular. In this definition, the
efficient use of other energy such as coal and natural gas is not included in energy conservation.
However, technologies that lead to oil-use reduction without influence upon energy use efficiency
are called “energy conservation technologies,” including the use of new energy, for example. On
the other hand, demand in many developing countries is not only reducing the use of non-renewable
resources but also enhancing efficiency of energy use in the entire society. Thus, the term of
“energy conservation” treated in the Guidelines means enhancing efficiency of energy consumption
including coal, natural gas, and other energy as well as oil.

1−1−2 Electric and Heat Energy

Upon actual consumption, energy is used either in the form of heat energy or electric energy. Heat
energy means the energy that can be obtained through burning of resources such as oil, coal, and
charcoal. Heat energy becomes the motive energy in the engine of a vehicle or vessel, or steam
locomotive via air or steam. Electric energy means the “electricity” that is produced in a power
plant, transmitted by transmission lines, and can be obtained by paying for utilities. Generally,
electricity can be obtained through an outlet or battery and can be used as motive power for
electrical products such as televisions and refrigerators.
Heat energy and electric energy are used in a variety of ways, depending upon equipmentor
facilities in use. Normally, they cannot be used at 100% of full efficiency, and some losses occur. For
instance, at offices, if personal computers are operated only while users look at their screens, the best
efficiency will take place. However, in fact, while users are on the telephone, or serving customers,

screens are still displayed. Electric energy is wasted during such time. Although more computers
have function of energy conservation automatically becoming standby mode when untouched after a
certain period of time, it is impossible to turn power on only while users look at screens. The same
type of energy losses occurs to many aspects of energy consumption in larger size such as power
plants in factories throughout society. Energy conservation is expected to reduce these kinds of
losses of energy in the entire society as much as possible and aim to raise the efficiency of energy
use as close to 100% of the full rate.

1−2 Current Situation of Energy Conservation

1−2−1 Overview of International Energy Conservation
The amount of energy consumption in the entire world has been increased, accompanied by
economic development of each country. It is expected that such amounts will continue to increase by
30% from 1997 to 2030. The increase of energy consumption is remarkable particularly in
developing countries centered on Asian countries and the Asian region excluding Japan, which will
accounts for almost half of future increase of the world’s energy consumption. While the share of
the world’s energy demand in OECD countries will decline, that of Asian region will expand
(Figure 1-2).

Million tons (equivalent in oil)

Middle East
Central and
South America
(excluding China)


Former Soviet Union

Source: IEA/World Energy Outlook 2000

Figure 1-2 Transition and outlook of world energy demand by region

Many energy resources used throughout the world today are still fossil fuels such as oil, coal and
natural gas. If energy consumption continues to increase at the same rate as today, exhaustion of
resources would occur in the near future. A reserve-production ratio that has been currently
confirmed by exploration, as of 2004 would be approximately 40 years for oil, 61 years for natural
gas, and 204 years for coal. Although this ratio fluctuates due to excavation of new oil fields, oil
and natural gas as basic resources would be exhausted within about 60 years in calculation.
Additionally, as a result of mass consumption of fossil fuels, global warming caused by an
increasing amount of CO2 emissions in the air has been occurring at rapid speed, which is one of the
most crucial global issues. According to the report by the “Intergovernmental Panel on Climate
Change (IPCC)” announced in 2001, the global average temperature has increased by 0.6℃ over the
100 years of the 20th century. It is forecasted that increase in the global average temperature of 5.8℃
at maximum and the rising water level of 88 cm will occur by 2100. In addition, if the rising water
level in Japan goes over 30 cm, it is estimated that 60% of sandy beaches would be lost.
As effective countermeasures against global issues such as future exhaustion of resources and
global warming, the necessity for the promotion of energy conservation in the international level has
been increasingly emphasized. In recent years, various policies of energy conservation have been
implemented in many countries. Also, the international framework based on the Kyoto Protocol was
established and it has promoted activities towards tackling global warming along with the
ratification by Russia.
At the same time, many countries still have a strong tendency to focus on economic development
rather than environmental measures. It cannot be said that energy conservation is the issue that
society wants first and most. This tendency is seen in some developed countries such as the U.S., but
especially in developing countries, policy priority is not given to energy conservation.

Moreover, based on previous statistics, it is clear that elasticity of GDP to energy demand
becomes “1” on a long-term basis. This value means the amount of energy consumption will
increase at the same percentage as that of economic growth in the long run. That is to say, unless
countries achieve reduction of the amount of energy consumption (energy conservation) at the same
percentage as that of economic growth every year, it will be impossible to even maintain the current
situation. In this context, the increasing amount of energy consumption due to economic
development of each country largely exceeds targets of energy conservation. As a result, the
amount of energy consumption and greenhouse gas emissions accompanied by energy consumption
has increased year after year throughout the world according to Figure 1-2.

1−2−2 Overview of Energy Conservation in Japan

(1)Energy Conservation Level and Total Final Energy Consumption (TFC) in Japan
Japan has achieved the highest level of energy conservation in the world at present as a result of
the fact that each sector throughout the society cooperated to promote energy conservation and

efficient energy use due to the “oil shocks” experienced twice in 1970s. Therefore, if energy
conservation is considered as development assistance Japan has a highly comparative advantage
technically and institutionally in this sector.
The ratio of energy consumption to GDP for 10 years after the first “oil shock” in 1973 has
been improved at the rate of about 30%. In particular, in the industrial sector that occupies the
highest rate of energy consumption such as iron and steel, petrochemistry, cement, and paper pulp
industries, the ratio of energy consumption to production has been improved over the same time
period of 10 years at the average rate of more than 40% (Refer to Figure 1-3.)
In reflection of the facts that energy conservation policies on the industrial sector have been
successful and that the amount of energy consumption from the household sector has been increased,
the ratio between each sector (industry: household: transportation) has changed to 2:1.5:1 in 2001
from 4:1:1 at the “oil shock” period. As well as the energy conservation rate is lower than the
economic growth rate.
However, accompanied by economic development, the total amount of energy consumption has
been consistently increased except for a period after two “oil shocks” and a period of recession in
recent years.

Million kl (crude oil equivalent)

Transportation sector

Household sector

Industrial sector

Source: comprehensive energy statistics (preliminary figures applies in 2000) Year

Figure 1-3 Transition of final energy consumption

(2)Transition of Energy Intensity
Energy intensity is the index that indicates energy consumption level (energy efficiency level). It
is calculated by the formula of “the amount of energy consumption / amount of production,” and it
indicates the amount of energy consumption per unit of production. On the national unit basis,
computation is made through the formula of “the total amount of domestic energy consumption/
real GDP.” According to Figure 1-4, which shows a transition of energy intensity in our country, the
base number of 100 in the “oil shock” year goes down to 67 in 1999. This indicates that the
amount of energy consumption per unit of production has greatly decreased after the “oil shock”
in the 1970s.

(Year 1973=100)

Source: Created through comprehensive energy statistics Year

Figure 1-4 Transition of final energy consumption per GDP

(3)History of Energy Conservation in Japan
<Time chart relating to energy conservation in Japan>
Rules on heat management were established for the purpose of coal
November 1947
1951 Heat Management Law was established.
1960 Domestic energy policies were converted from coal to oil.
1972 Japan Heat Energy Technical Association was established.
1973 First oil shock
1978 The Energy Conservation Center was established.
The Energy Conservation Law was enforced.
Second oil shock
1988 The first meeting of IPCC (Geneva) was held.
1992 The Earth Summit was held (Rio De Janeiro).
The Kyoto Protocol was executed at the Parties to the U.N. Framework
1997 Convention on Climate Change (COP3). Japan made a commitment to
reduce greenhouse gas emissions by 6%.
1998 Outline for Promotion Effects to prevent Global Warming was established.
The Energy Conservation Law was revised (1st time).
1999 Type 1 and Type 2 of designated energy management factories is appinted.
The Top Runner approach was adopted.
Document of” Regarding the future energy conservation” was
June 2001
Energy conservation of the “Outline for Promotion Effects to prevent
March 2002 Global Warming “ became one of the main countermeasures of global
Ratification of the Kyoto Protocol was approved.
June 2002 The Energy Conservation Law was revised (2nd time).
Countermeasures concerning office buildings, etc. were strengthened.
Source: Energy Conservation Center

The history of technologies and countermeasures on energy conservation implemented mainly in

the industrial sector in Japan after the first “oil shock” was as follows.
1)1973 - 1978
Immediately after the first “oil shock” in 1973, business management and operation were
reviewed and improved with investment for highly profitable energy conservation, which involved
the entire industrial sector, for reducing energy consumption as the first step of the
countermeasures for energy conservation.

2)1979 - 1990
The Energy Conservation Law was enacted and financial support system were established. Thus,
the improvement of facilities and installation of additional equipment in facilities (adoption of
highly efficient equipments for energy conservation) for improvement of energy consumption
efficiency were positively implemented as the second step for energy conservation
countermeasures in the industry that consumes large amounts of energy. The third steps
followed, improving production process for its cost reduction and productivity enhancement,
including improvement of energy use efficiency.
3)After 1990
Since improvement of facilities for energy conservation in the industrial sector had mostly been
achieved, the weight of energy conservation shifted from the industrial sector to the household
and transportation sectors. Additionally, global warming became a new important issue with the
challenge of reducing CO2 emissions. As a result, the development of technologies, and
utilization of facilities and products for energy conservation that are effective for reducing CO2
emissions have been promoted.

(4)Outline of policies on energy conservation in Japan

In the process of acquiring the optimum level of energy conservation in the world, Japan has
adopted multiple energy conservation policies, such as strengthening regulations, promoting the
dissemination of technologies, and improving financial and subsidy systems in accordance with
circumstances in a comprehensive manner. The followings are characteristics:
1)”Decrease of oil use” has been the main goal of energy conservation policies in Japan after the
experienced “oil shocks”.
2)Responding to the national crisis, the government undertook policy measures with high priority
by establishing laws and subsidies to promote self-help efforts of energy conservation especially
in enterprises, since it was considered as high policy priority.
3)Targets were classified into three sectors: industry, household, and transportation. Energy
conservation was promoted especially in the industrial sector, as a result of the concentration on
the energy consumption sector. .

These characteristics are unique to other countries, especially the US and European countries.
For instance, in the U.S and the U.K there exists no energy conservation law that imposes substantial
regulations on energy consumers (factories, enterprises, etc.) so far. Instead, the size of the business
market for energy conservation is large such as the Energy Service Company (ESCO). Therefore
these companies mainly target the household sector rather than the industrial sector.

The main policies from each policy menu are as follows (partially quoted from “Energy 2004”

edited by the Agency of Natural Resources and Energy). In addition, the details of energy
conservation policies currently implemented in Japan are described on the web page of the Agency
of Natural Resources and Energy and the reference of Appendix 3 in details.

[Formulation of overall policies]

・Establishment of the basic law on energy policy
・Establishment of the Energy Conservation Law and its reinforcement through revision
・Establishment of the Outline of Promotion to prevent Global Warming

[Measures and policies concerning the industrial sector]

・ENEGY MANAGER system based on the Energy Conservation Law, which includes qualification
of Energy Manager, a person in charge of energy management, and training for persons in energy
・Voluntary Action Plan on Environment by the Japan Federation of Economic Organizations and the
follow-up thereof
・Subsidy system for adoption and dissemination of technologies and facilities that contributes to
energy conservation (low interest loans, preferential tax treatments, and subsidy systems)
・Subsidy system for ESCO in the industrial sector (low interest loans, preferential tax treatments,
and subsidy systems)
・ Activities for promotion, awareness, and dissemination of energy conservation (supply of
information, technical support, and issuance of publications, such as the Handbook of Energy
through the Energy Conservation Center)

[Measures and policies concerning the household sector]

・Improvement of efficiency of equipment through the Top Runner approach
・Improvement of performance concerning energy conservation of housings and buildings in
accordance with the Energy Conservation Law
・Subsidy system for adoption and dissemination of technologies and facilities that contribute to
energy conservation (low interest loans, preferential tax treatments, and subsidy systems)
・Subsidy system concerning ESCO in the household sector (low interest loans, preferential tax
treatments, and subsidy systems)
・Radical reform of lifestyle of citizens (energy conservation labeling system, promotion of a smart
life and advertisement based on the determination of the Liaison Conference for Agencies of
Conference for Promotion of Countermeasures against Energy Conservation and Resource
・Activities for promotion, awareness, and dissemination of energy conservation (catalog for
performance of energy conservation, International Energy Star Program, etc.)

[Measures and policies concerning the transportation sector]
・Improvement of gas mileage for vehicles through the Top Runner approach based on the Energy
Conservation Law
・Energy conservation by stopping “idling“ of vehicles
・Promotion of dissemination of clean energy vehicles
・Improvement of energy consumption of individual transportation equipment
・Technical development by the government
・Enhancement of efficiency in logistics and transportation
・Promotion of telework

Among policies mentioned above, the main contributing factor to efficient use of energy in Japan,
which functions as a basic system, is “the ENERGY MANAGER system” in the industrial sector,
underlined above”.
Outlines of the ENERGY MANAGER system is described below.


ENERGY MANAGER system means “the framework to allocate energy conservation engineers
with excellent knowledge and skills under the responsibilities of enterprises (especially in plants and
factories), and to promote energy conservation in the entire industry through planning,
implementation, and evaluation on energy conservation conducted by the engineers in enterprises.”
“Energy conservation engineers with excellent knowledge and skills ” are Energy Managers.
The framework would not function if energy conservation is totally subject to the self-efforts
endeavors of each enterprise and if enterprises do not have the relevant technologies, since the
enterprise tends to prioritize improvement of productivity rather than energy conservation. Thus,
policies need to encourage enterprises’ commitment to the assignment of personnel responsible for
energy management in each factory.
(1) Regulations by Laws
In Japan, the Energy Manager system is considered as a law with penalties in accordance with the
Energy Conservation Law. The regulation has been reinforced by timely revision. The current
Energy Conservation Law adopts three regulations: (1) “the obligation to realize efficient energy
utilization by criteria the government establishes”. (2) “the obligation to appoint Energy
Managers in a factory,” and (3) “the obligation to submit periodic reports and make medium-and
long-term plans.(3 to 5 years)”. At present, the followings are obligations for designated factories in

[Type 1 designated energy management factories]

Item Content
Target All types of industry:
Fuel consumption ; more than 3,000 kl/year (crude oil equivalent)
Electricity consumption; more than 12,000,000 kWh/year
About 5,200 (as of the end of March 2004) factories and plants

Obligation (1) Obligations to make efforts for rational operation, in line with the
government-formulated standards for factories to make operational judgments,
(2) Obligations to appoint nationally-qualified Energy Managers
(3) Obligation to submit periodic reports
(4) Obligation to make medium-and long-term plans (3 – 5 years)
Measure In the case where the engagement of rational energy use is remarkably insufficient in
light of standards of judgments of factories, the following measures will be

exercised: instructions of issuance for the rational utilization plan, public
announcement, order, and penalty (fine) in case of no compliance with the

[Type 2 designated energy management factories]

Item Content
Target All types of industry:
Fuel consumption; more than 1,500 kl/year (crude oil equivalent)
Electricity consumption; more than 6,000,000 kWh/year
About 6,400 (as of the end of March 2004) factories and plants
Obligation (1) Obligations to make efforts for rational operation, in line with the
government-formulated standards for factories to make operational judgments,
(2) Obligations to appoint the Energy Officer (an energy managing staff with a
one-day training program)
(3) Obligation to undertake a course for qualification improvement as an Energy
Officer (one-day training)
(4) Obligation to submit periodic reports
Measure In the case where the engagement of rationalization for energy use is remarkably
insufficient in light of standards of judgments of factories, the following measure
will be exercised: recommendations.

(2)System of National Qualification

National qualification is required for energy management in the two types of designated energy
management factories: Energy Managers (heat and electricity) for Type 1 factories and Energy
Officers for Type 2. Over the former qualification, examination system and certification body have
been established. The creation of examination questions and establishment of a committee are also
conducted. For the latter qualification, training courses are provided. They are all under control of
the Energy Conservation Center in an integrated manner.

(3)Evaluation System
Establishment of the system allows governmental agencies to receive a report about the energy
management in factories under the supervision of Energy Managers, and the creation of evaluation
criteria has been performed. Additionally, since 2001, local studies based on the submitted reports
have been conducted in designated factories of type-1 by the Ministry of Economy, Trade and

(4)System of Promoting Energy Conservation
The established measures promote energy conservation by enterprises in different ways: the
subsidies for promoting investment including low interest loans, preferential tax treatments and
grants, the development of technologies, and the promotion and publication of activities for raising
awareness. These support Energy Managers upon their energy conservation activities.

1−3 Assistance Trends of Japan

1−3−1 JICA’s Cooperation on Energy Conservation
JICA’s cooperation on energy conservation has continued for more than 20 years since it started
through a Development Study in Thailand in 1982. In many of the cooperation activities, the agency
has implemented making master plans in development studies to promote energy conservation,
training personnel, and establish the Energy Conservation Center for technical assistance in technical
cooperation projects. In addition, the training in Japan for persons in charge of energy conservation
policies from various countries has been performed. The target was mainly industrial sectors, with
many participants from Asian and Eastern European regions.
Before transformed into an independent administrative institution (October 1, 2003), JICA had
implemented development study projects at the Mining and Industrial Development Study
Department, technical cooperation projects at the Mining and Industrial Development Cooperation
Department, and training in Japan at the domestic institutions. The two departments shared some
projects (projects in Argentina, Thailand, Turkey, Iran, and Poland, etc.), but, basically, they were
grouped by a project type. After the organizational reformation, the transformation into an
independent administrative institution, the Economic Development Department has been created and
in charge of all types of projects. At present, the department can select project types based on the
needs from the counterpart countries. Domestic institutions are continuously in charge of training in
The performances of the projects are as follows.

(1)Technical Cooperation Projects

Seven technical cooperation projects, which were relatively large, have been implemented, from
the first project in China in 1992 to an ongoing project in Poland, (the iron and steel project in China
is excluded here because of difference in its basic project design) (refer to Appendix 1-1). The
contents of the projects were, in principle, to establish new centers with the function of training,
Energy Audits (EA) and public relations relating energy conservation operated by governments,
training, and to enhance the function of existing centers. The outlines of the training, EAs, and
public relations, three main pillars of transferred technologies, are as follows.

1 Training Training is held for Energy Managers, which utilize “mini-plant,” small-sized
equipments and machines including combustion furnaces, boilers, open burners, fans,
pumps, and compressors. There is a prototype thereof at Sumikin Management
Co.,Ltd.). This training is composed of practical training and classroom lectures,
providing two types of courses: heat and electricity. In some countries, trainees can
even choose their courses depending on their needs, which, for example, targets for
management executives and managers and for particular equipment such as boiler.
2 Energy The same type of audit as the general energy audit implemented in Japan. In
Audit principle, the production process is not the subject of the audit. The EA covers only
utilities (facilities). The EA is implemented by visiting each factory and auditing
energy use of target factories in order to prepare reports including recommendations
and provide these factories with instructions.
3 Public Activities to publicize the necessity, methods, and examples of good practices of
Relation energy conservation through web pages and seminars. In Japan, the Energy
Conservation Center implements the activities..

The common characteristics of previous technical cooperation projects relatively in large size are
their project structure based on these three pillars and the provision of “mini-plant” with the training
equipments. The “mini-plant” has been developed in light of the experiences of each project.
The provided “mini-plants” were in large size in the initial training projects of China and
Argentina, but were improved in the projects of Thailand, Turkey, and Iran with smaller-sized and
elaborated equipment corresponding their training contents. Furthermore, in the case of the project in
Poland, procurement was localized , and its contract became almost full-turnkey services.

(2)Development Study
The nine development studies were implemented from 1982 in Thailand to 1998 in China, (refer
to Appendix 1-3). Among these studies, some technical cooperation projects have contentiously been
implemented after the implementation of the development studies. Major contents of the
development studies included preparing national master plans for energy efficiency strategies and
the technology transfer such as EA.

(3)Training in Japan (Group Training, Eastern Europe training, and Country Focused Training )
Group training and Eastern Europe Training were implemented every year for 19 years from 1986
to 2004 (refer to Appendix 1-4). Trainees were composed of the relevant parties of energy
conservation from various countries (especially, persons in charge of policies). Through these
trainings, they visited the governmental agencies relating to energy conservation and factories
possessing excellent systems and technologies of energy conservation in Japan in order to learn the

Japan’s advanced systems and technologies.
These trainings are different from those implemented in Japan for counterparts as one of elements
of input in technical cooperation projects.
So far, the group training and Eastern Europe training are mainly conducted in the Energy
Conservation Center. Until 2003 the group training in which programs on technologies and policies
are mixed and the Eastern Europe training mainly on policies were separately implemented.
However, these training are practically integrated since the Eastern Europe training was abolished in
2004 and participants from Eastern Europe joined the general group training. JICA Kyushu
(former Kyushu International Center) has also implemented Turkey country focused training.

1−3−2 JICA’s Achievements in Assistance
(1) Cooperation Projects and Development Study Projects

Name Project Type Cooperation

1 Study on master plan for project on energy conservation / Development 1982 -1984
Kingdom of Thailand Study
2 Study on maser plan for industrial energy conservation in Development 1985.10-1986.9
People's Republic of China Study
3 Study on master plan for energy conservation for factory Development 1987.12-1989.1
/ Argentine Republic Study
4 Study on master plan for energy conservation in Republic Development 1991.7 -1992.8
of Hungary Study
5 Study on master plan for energy conservation in Republic Development 1992.2 -1994.1
of Bulgaria Study
6 China energy conservation training center in Dalian, Technical 1992.7 -1997.7
People's Republic of China Cooperation
7 Industrial energy conservation project in Argentine Technical 1995.7 -2000.6
Republic Cooperation
8 Study on master plan for optimum use of energy in Islamic Development 1995.9 -1997.9
Republic of Iran Study
9 Study on master plan for rational use of energy in Development 1995.11-1997.2
Republic of Turkey Study
10 Energy efficiency center project in republic of Bulgaria Technical 1995.11-2000.10
11 Study on master plan for energy conservation in Republic Development 1997.3 -1999.1
of Poland Study
12 Study on master plan for promotion of energy Development 1998.1 -1999.2
conservation in Malaysia Study
13 Project of energy conservation in Republic of Turkey Technical 2000.8 -2005.7
14 Project on the practical energy management training center Technical 2002.4 -2005.4
in Thailand Cooperation
15 Improvement of technologies for environment Technical 2002.9 -2007.8
protection concerning the steel industry in People’s Republic Cooperation
of China
16 Project on energy management production in Islamic Technical 2003.3 -2007.3
Republic of Iran Cooperation
17 Poland and Japan Energy Conservation Technical Center Technical 2004.7 -2008.6
in Republic of Poland Cooperation
: In operation as of 2004

(2) Technical Cooperation Projects (individual cases)

Name Form Period of

1 Energy management in Thailand (energy conservation) Dispatch of 1997.1-2000.1
2 Energy conservation of industrial fields in Republic of Dispatch of 1997.1-2000.1
Turkey experts
3 Energy conservation in Poland Dispatch of 1999
4 Training in energy conservation in Saudi Arabia Acceptance 2004.9-2004.10
of trainees
5 Training of people engaging in management of energy in Third - 2004.11-2004.12
Republic of Turkey Country
: In operation as of 2004

(3)Training in Japan (Group Training and Eastern Europe Training)

1)Group Training
Group training has been implemented for 241 persons from 49 countries from 1986 to 2004.
See the details as per Appendix 1. The countries that have participated in such training are as
Argentina, Bahrain, Bangladesh, Brazil, Bulgaria, Cambodia, Chili, China, Columbia, Cote
d'Ivore, Croatia, Cuba, Dominican Republic, Egypt, Ethiopia, Fiji, Guatemala, Honduras, India,
Indonesia, Iran, Jordan, Kenya, Korea, Lithonia, Malaysia, Mexico, Moldova, Mongol,
Morocco, Oman, Pakistan, Palestine, Paraguay, Peru, Philippines, Serbia and Montenegro,
Saudi Arabia, South Africa, Sri Lanka, Syria, Tanzania, Thailand, Tunisia, Turkey, Uruguay,
Vanuatu, Venezuela, and Vietnam, 49 countries in total.
2)Regional focused training for Eastern Europe
Regional focused training for Eastern Europe training has been implemented for 112 persons
from 14 countries from 1994 to 2003. See the details as per Appendix. The countries that
have participated in such training are as follows:
Albania, Bulgaria, Croatia, Czechoslovakia, Estonia, Hungary, Latvia, Lithuania, Poland,
Romania, Slovakia, Ukraine, Yugoslavia, and Serbia and Montenegro, 14 countries in total

(4)Related Projects
In addition to the projects mentioned above, JICA has implemented related projects in the

following sectors. Although their main purposes are not directly connected to energy conservation
as they belong to the issues of other sectors, they have ultimately contributed to energy conservation.
1)Projects related to renewable energy and efficiency of transmitted distribution of electric
power (managed by the Economic Development Department)
2)Projects related to preservation of natural environment and air pollution (managed by the
Global Environment Department)
3 ) Projects related to transportation and traffic (managed by the Social Development

1−3−3 Energy Conservation Projects in Developing Countries by Organizations in

Japan other than JICA
(1)Green Aid Plan (GAP): Agency for Natural Resources and Energy, Ministry of Economy,
Trade and Industry
The purpose of the Green Aid Plan (GAP) is to cooperate with each country through the transfer
and dissemination of technologies related to the environment and energy fields based on experiences
in Japan. The plan targets (1) prevention of air pollution, (2) prevention of water pollution, (3)
disposal of and recycling of waste, and (4) energy conservation and alternative energy (contributing
to the policies of reduction of CO2 emissions). GAP is performed in the process of two stages: a
“policy dialogue ” stage that determines the directions of cooperation and projects through studies
and exchanges of opinions, and a “project” stage of actual implementation.
1)Policy Dialogue
The purpose of GAP is basically to assist ownership in developing countries. Therefore, in
order to implement cooperation in an effective and efficient manner, it is important for GAP to;
(2) recognize the current situation sufficiently, (2) consider the necessity and priority order in
counterpart countries, (3) identify whether Japan’s technologies and experiences are able to solve
a problem, (4) ensure effective results are expected from a project, (5) consider sustainability of
the project after the completion of the GAP project, and (6) diffuse transferred technologies over
corresponding local areas.
Therefore, in policy dialogue, new projects starting in the next fiscal year and the direction of
future assistance (cooperation) would be formally determined based on not only exchange of
perspective in terms of problems in recipient countries and Japan’s experience but also results of
previous projects and research.
(1) Development Study: Research on feasibility of energy/environment policies is conducted in
recipient countries and the master plan for environmental improvement in focused target areas
or industries is created.
(2) Human Resource Development Cooperation: Trainees who have capacity to formulate the
energy/environment policy are accepted in Japan, and as technical assistance Japanese experts

are dispatched to recipient countries in order to raise engineers and Energy Managers’
awareness on energy conservation and prevention of industrial pollution, as well as to improve
technical skills in factories and contribute environmental improvement.
(3) Research Cooperation: Japan and recipient countries jointly conduct research and development
in regards to technical issues, in order to provide technologies and abilities accumulated in
Japan. (4) Investigation of Technical Verification: Proper technologies are developed and
verified and investigation of technical verification is performed for the purpose of
dissemination of such technologies in recipient countries.

Related organizations are as follows.

・Japan External Trade Organization(JETRO)
・Association for Overseas Technical Scholarship(AOTS)
・Japan Overseas Development Corporation(JODC)
・New Energy and Industrial Technology Development Organization(NEDO)
・Electric Power Development Co., Ltd.
(Source: Web page of Ministry of Economy, Trade and Industry excerpt from


(2)International Project for Increasing the Efficient Use of Energy: NEDO

The outline is as follows (quoted from web page of NEDO:
http://www.nedo.go.jp/english/activities/3_kokusaikanren/1/P99034e.html) .
1)The seven targeted countries are China, Thailand, Vietnam, Indonesia, Myanmar, Malaysia,
and Philippine.
2)The project has been implemented since 1993.
3)Project expenses in 2004 were 7.6 billion yen.

In the developing economies of the Asia-Pacific region, energy demand is predicted to continue rising
dramatically along with economic growth. These economies are now becoming highly interested in energy
conservation technologies that are already commercially available in industrialized economies. To respond to the
rising demand, NEDO is implementing various projects to disseminate these technologies, including international
fundamental research projects, to increase the efficient use of energy.
The model projects, once implemented as part of the Activities Implemented Jointly (AIJ) - a pilot phase
project under the United Nations Framework Convention on Climate Change - were launched in Kazakhstan in
FY2002 as part of the Joint Implementation (JI) of the Kyoto Protocol. The projects contribute to the accumulation
of useful information for the concrete development of other forthcoming JI and Clean Development Mechanism
(CDM) projects.
(1) Fundamental Research Projects for Increasing the Efficient Use of Energy
a) Basic Survey Projects for Increasing the Efficient Use of Energy

Develop and suggest efficient energy use policies for countries involved by collecting and analyzing
information on the countries' energy policies and energy consumption trends.
b) CDM/JI Feasibility Studies Program
Feasibility Studies (F/S) are conducted with the aim of ascertaining the viability of introducing technology for
the efficient use of energy by Japanese companies as Joint Implementation (JI) and Clean Development
Mechanism (CDM) project activities.
(2) Model Projects for Increasing the Efficient Use of Energy
In model projects, technologies already in practical use in Japan are introduced into energy-intensive industries
in countries with developing economies to demonstrate the effectiveness of such technologies and the
dissemination thereof.
(3) Technology Dissemination Projects for Increasing the Efficient Use of Energy
These projects involve the dispatch of technical experts to implementation sites of model projects or to other
plants of the same industry in order to disseminate the technologies.

(1) Fundamental Research Projects (2) Model Projects for Increasing the Efficient Use of (3) Technologies Disemination
for Increasing the Efficient Use of Energy Projects for Increasing Efficient
Energy use of Energy

Feasibility Studies for Model projects

Model Projects
(a) Basic Research Projects for
Increasing the Efficient Use of Equipment Green Helmet Project
Energy Survey Basic Transpo
Design rtation

Demonstra Disseminatio
Installati Testl tive n seminar
on operation operation

(b) Basic Survey Project for Joint Commercially- based projects by the private sector
Implementation, etc.

Model project for effective use of energy (ongoing)

Name of project Host Country Term of Project Counterpart Implementation Site


Model project for Thailand 1999 - 2004 The Ministry of industry / Andra Pradesh
Utilization of Waste Industrial Estate Authority of
Heat from Incineration Thailand
of Industrial Waste at
Industrial Estate

Model Project for India 2001 - 2004 The Department of Economic Jharkhand State

Waste Heat Recovery Affairs, The Ministry of
System of Cement Finance / The Ministry of Trade
Plant and Industry

Model project for China 2002 - 2004 The State Development and Guangxi Zhuang
Unilization of Waste Planning Commission / National Autonomous Region
heat from a Cement Development Reform
Plant Commision

Model Project for Myanmar 2002 - 2004 Ministry of Electric Power IWAMA
High-Efficiency Gas
Turbine Technology

Model project for Indonesia 2002 - 2004 Ministry of Barikbaban City

Flare Gas and Energy. and Mineral
Hydrogen Recovery Resources/Directorate General of
Systems in Oil Oil and Natural Gas

Model project for Kazakhstan 2002 - 2005 Ministry of Energy and Mineral Uralsk City
Increasing the Resources/West Kazakhstan
Efficient Use of Province/Ministry of Ecology
Energy and Natural Resources

Model project for Vietnam 2003 - 2005 Ministry of Industry/Ministry of Thanh-hoa City
Renovation to Increase Natural Resources and
the Efficient Use of Environment
Energy in Brewery

Model project for high Indonesia 2003 - 2005 Ministry of Bekasi City
performance industrial Industry and Trade

※ Project completed: 17 in China, 3 in Indonesia, 2 in Thailand, 1 in Vietnam, Malaysia, Myanmar, and India.

In addition, NEDO has performed ODA projects concerning China, Thailand, and Vietnam, etc.
since 1993. Project expenses in 2004 were 1.81 billion yen. And the outline of the projects is as
follows (quotation from web page of NEDO:

The purpose of research cooperation projects is to study issues of technical development (technical
needs) that would be difficult to resolve only through the research and development abilities of
developing countries, and to use the technical, research, and development abilities of Japan, to jointly
implement research and development with research institutions of developing countries, to resolve such
issues on technical development, and to improve the research and development abilities of developing

Ministry of Economy, Trade and Industry

Memorandum of understanding Management institute of host country

Subsidary Dispatching researchers and

Acceptance of researcher Research institute of host country
Private companies, etc.
Equipment and facilities supply

(Project Organizaion Basic Scheme)

The scheme is subject to vary in accordance with research themes.
(1) Research Cooperation on environmental technology
(2) Cooperative research project on the development of environmentally friendly industrial waste water
reuse technology
(3) Cooperative research project on development of technologies to recover valuable metals from, and to
decontaminate, smelter flue dust s
(4) Cooperative research programs for development support
・Cooperative research program for Asian economic structural reformation support
・Cooperative research program for fundamental R&D support
(5) Support project for enhancement of R&D capability of research institute
(6) Cooperative research project on development of multimedia information system
(7) Cooperative research project on practical use of locally adaptable photovoltaic power generation
(8) Cooperative research project on processing and inspection technology for plastic
(9) Cooperative research project on treatment technology for exhaust gas and waste water from

(3)Other Projects
1)Yen loan(energy sectors): Japan Bank for International Cooperation(JBIC)
In regards to yen loans implemented by JBIC, there are not many projects that specialize in
energy conservation. However, JBIC has offered loans for the purpose of construction of power
stations and reconstruction of facilities, thus, has experienced projects that indirectly contribute
to energy conservation. In addition, a plan for two-step loan that mainly targets energy

conservation is currently being reviewed in Sri Lanka
2)Model Project on a Structuring Energy Conservation System in East Asia :JETRO
Entrusted by the Ministry of Economy, Trade and Industry, a model project of a structuring
energy conservation system in East Asia has been implemented as a JETRO project.
On the other hand, in developing countries centered in the Asian region, JETRO has
implemented cooperation programs as development assistance on supporting industries, which
contribute procurement of Japanese enterprises.
3)Study by the Agency for Natural Resources and Energy, Ministry of Economy, Trade and
The Ministry of Economy, Trade and Industry prioritizes the promotion of efficient use of
energy in Asian countries such as China where energy consumption has been rapidly increasing
with high economic growth in its policy issue. Thus, the Ministry regularly or irregularly holds
relevant workshops and study groups. Outcomes of sthese meetings may become projects
through budgetary approvals in some cases.

1−4 International Assistance Trends

1−4−1 International Assistance Trends towards Global Warming
(1)Global Environment Facility (GEF)
GEF is the major financial mechanism for developing countries in the area of preservation of the
global environment. GEF, in which UNDP, UNEP and WB are implementing agencies, was officially
established in 1994 after a pilot program had started in 19991 and the Earth Summit had been held in
Rio de Janeiro in 1992.

Targeted fields are: (1) Prevention of global warming, (2) Protection of biodiversity, (3)
Prevention of degradation of international waters, and (4) Prevention of ozone depletion.
Furthermore, land degradation and persistent organic pollutants (POPs) were added in October 2002.
The member countries as of September 2002 included 171 countries. 4.2 billion dollars of GEF
foundation have been granted to more than 1,000 projects of 160 countries. In regards to the climate
change filed, the cumulative amount of approval from 1991 to 2000 was 1.14 billion dollars, which
is 35.5% of the total.
The main goals are (1) removal of barriers to energy conservation and energy efficiency, (2)
promoting the adaptation of renewable energy, and (3) reducing the long-term costs of low
greenhouse gas-emitting energy technology. (http://gefweb.org/).

(2)Prototype Carbon Fund: PCF

The Prototype Carbon Fund (PCF) was an approach to creating a market for reduction of
greenhouse gas based on flexibility determined under the Kyoto Protocol. PCF was permitted to be
established within the World Bank in July 1999. Then, full-fledged operations started with accepting

investments from governments and private sectors in April 2000. While GEF’s main operation is to
provide grant aid, PCF focuses on the use of market mechanisms under the Kyoto Protocol and
dissemination of knowledge and experience.
Advantages of the PCF for developing countries are to gain profits through sales of the amount of
reduced greenhouse gas and to gain access to technologies dealing with global warming. Investors
can obtain the amount of reduction of greenhouse gas at a lower cost. Therefore, the World Bank
points out that PCF can be useful for achievement of goals based on the Kyoto Protocol

Specific projects are mentioned as follows.

1)Uganda: Project concerning compact hydraulic power generation for rural electrification
(off-grid hydropower development)
2)Honduras: wind power generation
3)Czechoslovakia: energy efficiency project
4)Poland: geothermal power generation
5)Rumania : afforestation project
Additionally, in response to the raise of expectation for profits to developing countries through the
implementation of CDM, the World Bank created the “Community Development Carbon Fund,”
which specialized in small-size CDM projects for rural areas in smaller countries and developing
counties in 2002. The World Bank aims to contribute to sustainable development at a community
level through projects on renewable energy, energy conservation, methane recovery, and agro

(3)Trends of International Assistance Organizations

International organizations also participate in assistance for energy conservation. In addition to
PCF, the World Bank implements capacity building projects in developing countries through the
establishment of “NSS (National Strategy Study)” including the survey on the potential of
reducing greenhouse gas in developing countries, studies on CDM/JI projects, and the creation of
plans for structuring related systems and activities, with funding from donor countries.
Furthermore, Asian Development Bank also implements capacity building projects relating to global
warming in PREGA (Promoting Renewable Energy, Energy Efficiency and Greenhouse Gas
Abatement). As well as UNEP and UNDP provide cooperation to improve policies, organizations,
and systems mainly through seminars.
Moreover, even other institutes that had not positively implemented countermeasures against
global warming have started activities for the global issue, as a result of analysis of the linkages
between global warming and their original projects such as development, environmental protection,
health, hygiene, and food. This trend is called the “mainstream” of global warming policies and is
gradually spread.

(4)Bilateral Cooperation
According to OECD, achievement of cooperation in the global warming field by 19 DAC member
countries form 1998 to 2000 accounted for 4,819 cases with 7.6 billion dollars. 89% of the total
amount was donated from Japan, Germany, and the U.S., and 15.3% of the total ODA is from Japan.

Table 1-1 Climate-change-related aid by DAC donor 1998-2000
1998 1999 2000 Annual average 1998-2000
USD USD USD USD % of total Number of
million million million million bilateral projects
Australia 9.7 14.6 13.5 12.6 1.6% 22
Austria 0.9 .. 3.5 1.5 0.4% 8
Belgium 6.1 1.7 4.6 4.1 0.8% 35
Canada 23.2 9.9 21.8 18.3 1.7% 11
Denmark 18.2 0.6 3.6 7.5 1.1% 2
Finland 38.3 16.7 14.4 23.1 11.3% 20
France 64.1 9.5 13.5 29.0 1.1% 13
Germany 269.3 849.6 195.1 438.0 14.3% 49
Ireland 0.0 0.0 0.1 0.0 0.1% 1
Japan 1372.9 1761.4 1727.8 1620.7 15.3% 843
Netherlands 45.8 37.9 61.6 48.4 2.3% 101
New Zealand 0.8 0.2 0.2 0.4 0.4% 6
Norway 62.0 71.2 41.9 58.4 6.6% 138
Portugal 0.0 0.0 11.5 3.8 1.9% 0
Spain 2.0 8.5 25.9 12.2 1.2% 58
Sweden 28.5 18.2 13.4 20.1 2.1% 25
Switzerland 4.3 4.8 4.6 4.5 0.7% 9
United Kingdom 70.4 28.7 5.8 35.0 1.0% 13
United States 171.0 223.9 167.8 187.6 2.3% 252
Total 2187.5 3057.3 2330.7 2525.2 6.7% 1606

1−4−2 Other Assistance Trends towards Energy Conservation

The followings are the cases of international assistance trends towards energy conservation.

(1)The EU Committee requires the EU member nations to reduce energy consumption by 1% a

year and gives instruction of promoting energy conservation. In addition, the committee implements
projects of assistance for improving legislation to enable the energy act in each member state to
comply with priorities set by the committee, such as countermeasures against global warming.

(2)German Agency for Technical Cooperation, GTZ, has a multitude of experience in energy
conservation-related projects as bilateral assistance including a project in Thailand. In addition,

assistance agencies in the Netherlands and Denmark (COGEN, DANCED, etc.) implement
various assistance projects in developing countries.

Chapter 2 Approaches to Energy Conservation

2−1 Purposes of Energy Conservation

The overview of the current situation of energy conservation was addressed in the Chapter 1.
Accordingly, Chapter 2 reviews the purposes of implementation of energy conservation and practical
means that have countries achieve energy conservation

Firstly, three significant goals to implement energy conservation are outlined as follows.
(1) Reduction of energy consumption
(2) Reduction of greenhouse gases (CO2)
(3) Reduction of energy costs

Furthermore, three overall goals of energy conservation are set as follows.

(1)Energy Security
Energy security is to ensure a constant and stable supply of energy. In order to maintain the
supply, it is necessary for countries to increase the domestic energy self-sufficiency ratio and to
undertake diplomatic endeavors to secure stable energy suppliers. Especially, increasing the energy
self-sufficiency ratio is a direct means to achieve the goal. As the food self-sufficiency ratio, the
domestic energy self-sufficiency ratio is the core elements of the national security, and thus is a
politically prioritized issue. Moreover, energy security has become a considerable global issue
outside the framework of state. For instance, the EU put emphasis on the EU regional energy
security as an important policy issue.
In order to increase the energy self-sufficiency ratio, it is necessary to develop and promote the
use of domestic untapped energy such as nuclear, wind and solar energy, and to enhance effective
utilization of existing energies (energy conservation).
Energy conservation contributes to solution to the global issues such as energy security and
possible future exhaustion of oil. As outlined in the previous Chapter, oil is primarily demanded
resources in the world, and countries need to effectively utilize the limited energy resources
*Related issues of JICA: “Energy supply”

(2)Measures of the Global Environment
As mentioned in Chapter 1, global warming has been one of the globally concerned issues.
International frameworks to deal with such issue have been established. Under this circumstance,
concrete measures are required these days to regulate greenhouse gas emissions, with efforts by
governments and private sectors. Since energy conservation limits greenhouse gas emissions (CO2,
in particular), which lead to global warming, the measures for energy conservation functions as those
for elimination of greenhouse gas emissions. Energy conservation was conventionally implemented
for the purpose of raising income and ensuring energy security in many cases. However, in recent
years, the effect of CO2 reduction has been receiving attention, and in many cases, energy
conservation has been implemented for preventing global warming. Additionally, the restriction on
the use of oil and natural gas through energy conservation contributes not only to global warming,
but also to air pollution and environmental destruction due to earth excavation.
* Related issues of JICA: “Measures of global warming” and “preservation of the natural

(3)Income Increase
Income increase by reducing costs for energy utilities is a direct purpose and incentive of energy
conservation. Through the implementation of energy conservation, we can reduce the expenses for
wasteful energy consumption, and income will increase equivalent to the amount of the reduction.
Through energy conservation, payments for the utility of electricity and gas will decrease and these
savings will be utilized for other expenditures at the household level. At the business and factory
levels, the decrease of energy consumption per unit of production (cost reduction of production) will
enhance their competitiveness. Increasing income and enhancing business competitiveness at the
national level contribute to economic growth.
If the emission-trading scheme for greenhouse gas, based on the Kyoto Mechanism, can be
effectively utilized, the reduced gas through energy conservation can be sold as assets. It allows not
only reducing costs but also increasing income concurrently.
*Related issues of JICA : “Private Sector Development”

2−2 Effective Policy Approaches to Energy Conservation

Based on the experiences of Japan and other countries, this section outlines the effective policy
approaches in order to achieve energy conservation in general. In addition, approaches this section
deal with is defined as “approaches by policies,” which is positively implemented by
governments, and energy conservation approaches mainly by the self-help efforts of private sectors
are excluded here, unless they are controlled by the policies.
The main three points of effective policy approaches concerning energy conservation are as
(1) Establishing energy conservation systems

Establishing a system to take advantage of human resources inside factories and a system to
utilize outsourcing services .
(2) Implementation of administrative services relating to energy conservation
Implementation of training courses, EA for factories, and activities of publicity, awareness,
and dissemination
(3) Promoting the energy conservation business market
Promotion of ESCO business and improvement of business environment of the market
In regards to the aforementioned relationship, the matter in (1) is a framework, and the matters in
(2) and (3) are the individual measures that are positioned in the framework. It should be noted that
the methods in (2) and (3) will be fundamentally differentiated depending upon the form of the
matter in (1).
The systems are roughly divided into two types: the system based on laws and regulations and on
market principles. The former is well adopted in Japan and the tendency of the latter is strong in
Europe and the U.S.. The frameworks of promotion of energy conservation differ depending on
countries. Thus, when it comes to a concept of effective policy approaches, the structure of
framework for promotion of energy conservation ((1) above) should be conceived first. And then,
each measure ((2) and (3) above) concerning implementation of energy conservation services by
governments and promotion of activities of enterprises and markets for energy conservation should
be reviewed. This particular “order” is important.

The system of purposes for energy conservation above is organized as per Figure 2-1.

Measures of global
Energy security Income increase

Energy conservation

Structure of system of Activation of market of Others

Implementation of administrative
energy conservation services relating to energy energy conservation


Figure2-1Strucuture of Energy Conservation

The matters relating to effective policy approaches concerning energy conservation ((1) – (3)) are
outlined as below.

(1)Policy approach 1: Establishing a System For Energy Conservation

The most fundamental step for energy conservation is to establish a system to promote energy
conservation, so that the government policies are disseminated to all implementing institutions of
energy conservation through the system.
The experience of Japan tells us that an energy conservation system functions well when its
contents are continuously revised in accordance with the changes in the society. Energy conservation
has a close relationship with various elements in society, also. Thus, it cannot be achieved only by
adopting a single measure (for example, just introducing subsidies for energy conservation
investment). It is important to implement mixed measures so that the system of energy conservation
for the entire society may function.
The most suitable system for a country varies depending on conditions of each country. In Japan,
improving equipment efficiency by ENERGY MANAGER system or by Top Runners, have proved
to be highly effective. However, these are not globally common methods. As for ENERGY
MANAGER system, many countries have adopted similar systems, but in a significant number of
countries, those systems are not functioning well. That is because some of the systems sometimes
have defects such as poor contents or poor management. However, major reasons may be found in
different attitude towards regulations imposed by governments (for example, in China, the
regulations tend to be considered not as rules people must comply, but as a model or good examples).
In U.S. and Europe, people do not like to impose regulations on energy conservation, since there is a
strong tendency to believe that “energy conservation is profitable and should be promoted on a

commercial basis.” There are no law that imposes specific regulations upon energy consumers in
the U.S., and U.K.
When a country tries to establish a energy conservation system, lifestyles or cultures of the
country and existing energy conservation conditions should be taken into consideration.

( 2 ) Policy Approach 2: Implementation of Administrative Services Relating to Energy

In order to seek an effective operation of the energy conservation system, what private sectors
cannot achieve should be supplemented by public services. The following are some of such
1)Development of Human Resources in the Area of Energy Conservation
Training courses for engineers who have expertise of energy conservation are implemented.
Many technical colleges and big companies teach technical knowledge on energy conservation to
their students or employees. However, there are virtually no special courses for energy
conservation engineers open to public in training institutes. Therefore, in most of the cases, it is
necessary to establish new institutions. Since running such courses for energy conservation
engineers does not make profit and it is rather difficult for private sectors to run such course, it is
desirable that the government run such courses as part of public services.
For reference, the training implemented by the initiative of the government of Japan are as
follows. The technical cooperation of training courses with a “mini-plant,” which JICA
implemented many times, were launched in developing countries, with a reference of training
courses by Sumikin Management Co., Ltd. in the column of “Others” below.

Title of training course Target and training menu
Practical training courses of energy Training for beginners to mid-level engineers
conservation (5 courses)
Technical courses of energy Person in charge of practices of energy
conservation management/classroom lectures, practical training, and
tour courses
Workshops on technologies for energy Energy Manager/training on the latest technologies of
management energy management
Correspondence courses of Energy Applicants of Energy Manager / teaching of specialized
Manger knowledge
Long term courses for examination Applicants of Energy Manager / teaching of specialized
preparation knowledge
Short term courses for examination Applicants of Energy Manager / teaching of specialized
preparation knowledge
Symposiums for Energy Manager Type 1 designation/teaching of technologies of energy
Symposiums for Energy Manager Type 2 designation/teaching of technologies of energy
Presentations of dissemination and Type 1 and 2 designation and ESCO business conductor
promotion of superior cases /Presentation of superior cases
Lecture meetings on energy (branch Lecturing on energy conservation
Others Union of Japanese Scientists and Engineers (QC,TQM),
Japan Institute of Plant Maintenance(TPM),Japan Electric
Association(training courses for licensed electrician tests),
Japan Productivity Center ( practical skills for energy
conservation), Sumikin Management Co.,Ltd.(practical
skills for energy conservation),TLV CO., LTD.(facilities
relating to steams)and the like

2)Energy Audit (EA)

EA is a service offered to factories to clarify the actual amount of energy consumption and to
give advise on consumption practices. The steps to achieve energy conservation are shown in
Figure 2-2.

(1)Finding points to improve → (2) F/S study → (3) Implementation of improvement

→ (4) Continuation

Figure 2-2 Steps to implement energy conservation

One of the points to be improved in (1) can be an appointment of Energy Manager. When a
factory is well managed by an Energy Manager, it is not difficult to find out points to be improved.
When an employer wants to cut the cost for personnel and did not hire an Energy Manager, and
when the factory does not have suitable technology, nor properly manages, then it will be difficult
to find improvement points.

In such a case, an effective approach for promoting energy conservation is to invite energy
auditors. Energy auditors will assess ongoing energy management and define points to be
improved. After the factory is visited by an energy auditor, the procedure will be as follows.
(2) feasibility study, a study for financial viability (3) implementation, and (4) continuation.

Implementing procedures of EA are generally as follows.

Table 2-1 Implementing procedures of a diagnosis of energy conservation

Order Step Item of implementation
1 Prior information collection Necessary information including monthly utilities of
electricity and gas, the energy use for the production process
and facilities, and ongoing energy management, should be
obtained as much as possible.
2 Measurement on the site Experts on energy conservation (thermometers, air meters,
etc.) bring measuring equipments and visit factories. And
they measure what they could not obtain in step 1, and
collect necessary information for analysis.
3 Analysis and evaluation Computation and processing of the data of energy use
collected in 1 and 2 (JIS in Japan) are performed.
Comparison of such data with the ideal and average values,
identification of the wasteful departments, and analysis and
evaluation of such causes are performed.
4 Announcement of results The results of 3 are announced, and appropriate measures
and proposal of advice for the clarified problems and concrete methods of their
concerning items for implementation are proposed. The contents of audit is
improvement (creation of a summarized in a report, and explanations are given to the
audit report) factory that receives the audit.

EA in Japan has been performed free of charge by the government (Energy Conservation Center).
However, giant companies have already achieved high levels of energy conservation and there are
few potential left for energy conservation. Thus, at present, EA has been implemented on small and
medium-sized enterprises that have poor technologies and on large-sized buildings whose energy
consumption has been rapidly increased.

For a country which has lots of potential for energy saving, proposal by an EA lead to a big cost
reduction (for example, in steel making industry, the cost saved is likely to exceed 100 million yen a
year). Therefore, EA is deemed to be a beneficial service worth paying for, and some private

companies that specialize in energy conservation offer EAs as business project. Those private
companies are called “ESCO”(Energy Service Company), and ESCO has formed a large market in
Europe and the U.S. where regulations on energy conservation by governments are not so tight.
Although ESCO has various forms of EA, in general, all of the processes from (1) through (3) in
Figure 2-2 are implemented first. Then, the service fees are collected only after satisfying result of
energy conservation benefits companies in the process of (4). In this type of ESCO business,
ESCO undertakes a series of tasks in EA, from making a proposal for improvement points to its
implementation including the collection of service fee. Therefore, there is no difficulty for factories
to receive the service due to the low cost. On the other hand, unless satisfying result of energy
conservation is gained, ESCO cannot collect the fees, and therefore, payout time is long. Unless
ESCO wins the confidence of the factories receiving the services, or have and strong supports from
government such as soft loans, it is difficult to run such a business.
In many cases, ESCO plays the active role in the household sector most, and then, in industrial
sector. This is because there is a great deal of energy consumption in the household sectors (specially,
in buildings) in general, where there is commonality and simplicity in the technical contents. The
industrial sector use varieties of facilities and production processes in different business. Therefore,
they use different methods of energy conservation for each type of industry. Furthermore, in order to
implement detailed EA that covers the production processes, a highly technical level of expertise is
required for energy auditors. Also, normally, the production process of the factory involves a trade
secret that should not be disclosed externally. Thus, it is difficult for private sector to gain enough
profit only from ESCO business for their survival. Therefore, initially, it would be more effective
for the government to initiatively provide such services at low costs.
It should be noted that ESCO’s advice specializes in effective energy conservation for the
company to make profits in a short run, not in a long run like advice from the government. Thus,
important problems to be tackled in mid-to-long term remain unsolved, making the company’s
policy rather unbalanced.
Approaches where EA is implemented by a private sector through market mechanism are stated in
(3) Policy approach 3 as below.

3)Publicizing and Disseminating Information about Energy Conservation

In order to promote energy conservation, it is effective to establish an energy saving activities’
framework. At the same time, it is also important to ensure a change in the attitude of energy
consumers and to promote voluntary activities of energy conservation through performing the
activities of publicity, awareness, and dissemination of energy conservation. Especially, publicity
such as creation of a web page enables broad promotion of energy conservation to the public at
substantially less cost. Therefore, this is highly cost effective approach

There are various methods of publicity, awareness, and dissemination, such as creation of a web

page, issuance of subscribed magazines and books, sales of goods, or television commercial
messages. The activities of publicity, awareness, and dissemination can be seen everywhere in a
society other than in energy conservation, and effective methods of implementation have been
introduced via books, etc.
The main purpose of the activities of publicity, awareness, and dissemination is to improve
understanding of energy conservation (Why energy conservation should be performed?) and to
introduce know-how of energy conservation (How?). In the former activity, in particular, it is
important and effective to raise people’s consciousness and social awareness for energy
conservation. In Japan, the new concept of “smart life” where people are expected to have
awareness of energy conservation in their daily lives is established, and the inspiring activities
aiming at reforming people’s lifestyle itself is being in progress.
In regards to the latter activity of introduction of know-how of energy conservation, the
following information are available in Japan.

[For industry and enterprise]

・Laws and regulations, policies, and systems relating to energy conservation
・Systems of qualification for Energy Manger
・Knowledge for examination of a Energy Manger
・Know-how applied to energy conservation technologies and factories
・Latest technologies of energy conservation
・Good practices of energy conservation

[For household sectors]

・Checklists of a lifestyle
・Dictionaries of energy conservation at home
・Smart fashion
・Handbooks for smart life
・Catalogues for energy conservation products of home electric appliances
・Energy conservation contests

In addition, awarding of model cases of energy saving and systems to recruit supporting members
for energy conservation are also part of public relations activities.

(3)Policy Approach 3: Vitalizing Energy Conservation Market

The government extends support to promote the energy conservation activities mainly undertaken
by private sectors. Especially, it is important to enable EA to be disseminated through the use of the
market mechanism in the private services, with provision of supports from the available policy
measures. That is to say, promotion of ESCO business and creation of support for the market are

necessary. In order to establish and continue the ESCO market, continuous policy measures are
required through the following procedures. The experience of policy adoption for the introduction of
the ESCO business into Japan’s market has allowed us to review the promotion methods of the
business so far. There is more room to cultivate further effective approaches by reviewing the
projects of ESCO leading countries in Europe and the U.S. as well as GEF’s assistance programs of
ESCO, which has been successful in Malaysia and China, etc.
1)Formulation of Policies, Research on Past Cases, Market Survey
A country may study the cases of other countries where ESCO business has already been
established (U.S., Germany, and Japan), and conduct studies for the possibility and potential of the
business in the country. At the same time, a country may conduct market survey for demand and
supply. As a result, when the government considers that a market would properly function for
business, the announcement of policy guidelines may be given to the private sectors .
2)Introduction of ESCO Business as Model Projects, Research and Survey
A model project of ESCO business should be implemented initiatively by the government
through subsidies for the first step of creating the market. The result of such project should be
surveyed and researched, and the policy measures should be improved. The government can
implement a model project in several methods as employing experts and providing trial EA
services free of charge or at small expense, or entrusting its implementation to cooperative
enterprises. As for the latter case, it is effective if the government itself becomes a customer and
if the services are implemented in the governmental buildings.
3)Establishment of Association
At the stage where private sector demanded ESCO services to a certain extent, ESCO
association may be established and it enables people to provide and exchange information and
opinions over energy policies. At the early stage after ESCO’s establishment, it is assumed that
private consulting companies, power companies, and gas companies, etc., start such projects as
sub-businesses. At the initial stage where ESCO business can be implemented on a private-sector
basis, it is desirable for the government to be a continuous customer.
In such a case, granting of some qualifications to the registered ESCO enterprises is also
effective. In Poland, there exists a system of qualification so as to implement a audit of
buildings, and such system has been effectively operated.
4)Establishment of Low Interest Loans, Preferential Tax Treatments, and Subsidy
In order to supplement the weak points of ESCO investment, which is a long payout period, low
interest loans, preferential tax treatments, and subsidy may be available at an early stage of
introducing ESCO business, thus supporting the market to be established and continued.

Chapter 3 Cooperation Policies of JICA

3−1 Focused Cooperation Activities of JICA and Points to Note

In Chapter 1 and 2, the current situations, purposes, and means of performing energy conservation
have been reviewed. Chapter 3 will present JICA’s policies on energy conservation and answer the
questions of “What JICA can achieve?” and “What is the most appropriate cooperation by JICA?”
in the midst of the existing conditions of energy conservation.

3−1−1 JICA’s Effective Cooperation on Energy Conservation (Concept of Projects)

This section will overview how JICA’s projects can cooperate for the three effective policy
approaches presented in Chapter 2 (institution, public services, and market), in order to analyze the
effective ways of cooperation.

(1)Establishing Energy Conservation System

1)Development Study for Master Plan on Energy Conservation System
In development studies, JICA will perform comprehensive survey of the current situations,
backgrounds, and potential of energy conservation in developing countries and formulate a
master plans the countries can utilize as guidelines for their development policies. When
governmental agencies such as Energy Conservation Center in the developing countries are
dealing with energy conservation, it would be effective to provide the agencies with machines
and equipments for Energy Audit, since it would enable the agencies to visit and provide EA for
the plants of high energy consumption. Performing EA would generate the following three
advantages: (1) The contents of a master plan become more realistic. (2) EA technologies are
transferred, (3) the audited institution can save energy as a result of EA.
Upon the creation of a master plan, JICA dispatches a group of Japanese experts and
consultants to development countries, and counterpart members of a recipient country and the
Japanese members work together on drafting a master plan. It should be remembered upon
development studies that JICA needs to make sufficient consultations with the counterparts,
fully understand the country’s existing situation in surveys, and formulate a master plan
corresponding to their needs rather than ours.
2)Dispatching Advisors to Establish Energy System (dispatch of 1 or 2 expert (s))

The purpose is to formulate a master plan as well as in 1). With minimum inputs, 1 or 2
policy adviser (s) is allocated at the ministry of the government in charge of energy
conservation (usually Ministry of Energy) for about 2 years (reviewed if necessary). Unlike a
development study in which a master plan is made by Japanese experts, the purpose is to
allocate personnel to provide advice regarding Japan’s experiences when a counterpart
country makes a master plan. This is the method that international organizations such as in
Europe and the U.S. frequently adopt concerning the energy sector.
The size of inputs is small, compared with the development study, and a long term allocation
of advisors is possible. Thus, there are advantages that enable spending much of time for
collecting information, making discussions and establishing trustworthy relationships with
counterparts. Meanwhile, special efforts are required to recruit advisors who have familiarity
with energy conservation policies of Japan, flexibility to introduce the policies in the form
adaptable to corresponding developing countries, and excellent communication ability to make
coordination and negotiation with the governmental agencies and international donor
organizations in developing countries.

3)Training in Japan for Person in Charge of Energy Conservation (1 through 4 trainee (s))
People in charge of promotion of energy conservation in developing countries are invited to
Japan and trained for energy conservation policies. Based on the experiences of past cases,
institutions expected to accept trainees and contents of such training courses are as follows:

Training Location Training menu
JICA ・Training orientation and assessment meeting
・Overview of energy conservation activities of
Energy Conservation Center, Japan(ECCJ) ・Overview of energy conservation in Japan
・Policies of energy conservation in Japan
・Overview of activities of ECCJ
Agency for Natural Resources and Energy, ・Policies of energy conservation in Japan
Ministry of Economy, Trade and Industry ・ Overview of the activities of Agency for
Natural Resources and Energy, Ministry of
Economy, Trade and Industry
New Energy and Industrial Technology ・ Development of energy conservation
Development Organization(NEDO) technologies
・Overview of activities of NEDO
Power plants ・ Good practices of energy conservation on
power generation
Factories (iron making, metal machineries, and ・Good practices of of energy conservation on
ceramic industry, etc.) industrial sector
Buildings ・ Good practices of energy conservation on
household sector

In accordance with the demands of trainees, training locations and the acceptance period of all or
each training(s) are adjusted. Training in Japan can play a vital role for promotion of energy
conservation in developing countries, and thus the selection of trainees is important. It is necessary
to clarify the problems and needs of trainee side and to prepare the training programs and system to
solve such problems.

(2)Energy Conservation Services by Government

Capacity development should be performed for institutions implementing governmental energy
conservation services as outlined in Chapter 2 (Energy Center or a part of departments or divisions
of ministry of energy apply normally). The technical issues are outlined as follows. Upon
implementation, it is important to create a comprehensive system, which covers not only technology
transfer but also the fields of finance and/or human resources, so that the recipient institutions can
acquire and develop the required abilities in a sustainable manner.
1)Transfer of Technologies for Energy Audit (EA) (Dispatch of Experts, Provision of Machinery
Equipments, and Training in Japan, etc)

Technologies for EA outlined in Chapter 2 are transferred to developing countries. JICA has
conducted technology transfer in six counties so far, such as Bulgaria, Turkey, etc. First, in
procedures, the equipment materials for EA (measurement equipment concerning temperature, air
mass flow, and steam flow, etc., mainly apply, and the total amount of such equipments cost about
20 million yen through procurement in Japan) and the vehicles that carry such equipments (called
“Shoene Bus [energy conservation bus])” which costs about 3 million yen through the local
procurement) are provided. After the selection of factories which will receive EA, a group
including 5 -6 counterparts, 1 or 2 short-term expert(s), and 1 long-term expert visit the selected
plants and provide the services. EA is implemented as a part of administrative services by
counterparts. The selected short-term experts are personnel who have experienced to provide EA
in Japan and also have sufficient knowledge of corresponding sector necessary for EA in
developing countries (iron making, metal machineries, and ceramic industry, etc.). All members
of long-term experts, short-term experts, and counterparts jointly implement all processes of EA.
The short-term experts perform energy audit as well as technology transfer to the counterparts.
The long-term experts supervise the project and conduct follow-up for the short-term experts.
The counterparts perform measurement and computation of the allocated portions and receive
lectures from the short-term experts about series of process including summarization of results
and proposals.
The past projects of technology transfer in EA have demonstrated the strong ownership and self
help development of recipient countries generated during the cooperation. The technical
advantage of our country based on much of experience in this sector has been also recognized.
Therefore, it can be said that implementing the projects is of high relevance.
Items to remember upon the implementation are as follows.
(1) Although EA is performed by the counterparts as a part of administrative services, audited
factory must pay a certain amount of service fee. Thus, a factory receiving EA expects to have
good advice in return. At the same time, factories tend to be reluctant to spend their time on
activities for transfer of technologies.
(2) The result of transfer of technologies depends very much on the selection of short-term experts.
The utmost endeavors must be undertaken to understand the demands of the local parties and
report the result to Japan so that an appropriate person can be selected.
(3) In EA training for counterparts, instructions regarding an energy conservation measures of
“no or low cost,”a measure without investment for plants and equipments, should be given as
a basic step. In addition, it is also necessary to give the measures of large-scale energy
conservation investments.
(4) EA on production process is commonly performed in Japan. Upon JICA’s transfer of
technology, however, cooperation performs EA on utilities (facilities) as a primary work.
Inspection of the production process may enable a more detailed audit and should be
implemented positively if possible. However, it is expected that some items required in the

audit on production process can be implemented only when the audit is continued for several
decades. Therefore, it is impossible for the audit to cover all processes of the all kinds of
industries within five-year period of transfer of technologies. However, there are some
industries where the production process can be thoroughly inspected as in the textile industry in
Turkey. Thus, upon the consideration of the menu of technology transfer of EA, it is necessary
for the experts to review which industries and items should be audited.

2)Establishing a System of Qualification for Energy Conservation (Dispatch of Experts, Training

in Japan, etc.)
After legislation on energy conservation has been enacted, those who implement energy
conservation are normally appointed, and then, the establishment of qualification systems follows.
The type of qualification systems varies in accordance with the legislation of energy conservation.
For example, the qualifications for energy conservation are as follows.
(1) Qualification for energy management at factories
(2) Qualification for EA
(3) Qualification for the creation of an energy management report
In Japan, qualification systems of energy conservation based on the Energy Conservation Law
have been established and applied. The experience in Japan would be useful for developing
countries that will start such systems. The personnel who is familiar with the qualification systems
of energy conservation in Japan are dispatched as advisors to establish in developing countries the
system of the qualifications and also to make questions for examinations.
3)Establishing Training Courses on Energy Conservation (Dispatch of Experts, Provision of
machinery equipments, and Training in Japan, etc)
The establishment of training courses for energy conservation has been achieved in six
countries including Turkey, Thailand, and etc. JICA has formulated practical training courses
utilizing “mini-plants,” which is based on the courses provided in Japan by Sumikin Management
Co., Ltd as an entrusted business from the Energy Conservation Center. In order to establish the
training courses, the following cooperation is required.
(1) Creation of curriculums and textbooks by long-term experts of heat and electricity and
short-term experts from each field, provision of training for counterparts to be training
instructors, and assistance for entire operation and management of the courses and the
acceptance of trainees
(2) Installation and start-up of the provided equipments (mini-plant and peripheral machinery
(3) Installation and start-up of locally procured components of a mini-plant
(4) Education of training instructors (counterparts) in training in Japan
The contents of training-course curriculums differ in accordance with demands of developing
countries. Before establishment, the curriculums have to be carefully examined and discussed in

a preparatory study. Since it is difficult for energy conservation training course to achieve
sustainable development after the end of projects, which was recognized in the past project
experiences, the number of trainees and reasons for them to take the courses have to be clarified
at the stages of preparatory study. After such process, the necessity of cooperation should be
deliberately reviewed. The past projects did not always provide training courses that
corresponded with the demands of a recipient country. Some training held after the
completion of projects found only small number of applicants.
4)Publicity of Energy Conservation (expert dispatch, provision of equipments, and training in
Japan, etc)
In regards to the contents and the efficient methods of publicity for energy conservation
implemented by the counterparts, technical advice should be performed based on the knowledge
of Japan. In addition to the basic inputs of advisory expert dispatches, the equipment provision
(such as HP software) can be implemented in combination with training in Japan.

(3)Promoting Energy Conservation Market

The cooperation for promoting energy conservation market needs examination on its
implementation by reviewing successful projects of GEF and the U.S. and European countries. The
cooperation by dispatch of experts, provision of equipments, and training in Japan can cover the
following items presented as the effective approaches in Chapter 2.
1)Survey for the precedent and market of energy conservation business
2)Assistance for introduction of model projects and for research and study
3)Establishment of ESCO association

3−1−2 JICA’s Effective Cooperation on Energy Conservation (Concept of Programs)
(1)General Outline
In 3-1-1, the methods to effectively implement individual projects have been outlined. At the same
time, the successful cases of an individual project do not necessarily lead to a promotion of energy
conservation for the entire nation, only with contribution to a part of it. In order to support the
promotion of energy conservation for the entire nation, it is essential to have a view (view of
program) as to how individual cooperation methods are combined to form entire cooperation. Here,
how JICA looks at the programs in the field of energy conservation will be explained.
Basic concepts are as follows.

Developing countries will not be changed by the cooperation of JICA. The power of
willingness of developing countries that intend to change themselves shall be utilized to the
utmost extent, which shall lead the countries to a proper direction through the cooperation of
The energy conservation that targets a nation means a macro level of engagement that influences
all patterns of energy consumption in industrial, household, and transportation sectors. In Japan, for
instance, about 10,000 factories that are relatively large in the industrial sector only (Type 1 and 2 of
designated energy management factories) are working on energy conservation. In order to
implement such large-scale reforms, the large-scale of policies, budgets, and systems and a log time
period are necessary for governmental administrative departments, and also self-help efforts from
private sectors are essential. Only JICA’s small-scale input, several hundred million yen for five
years at most, is not sufficient in reality to build new system that would generate the positive effect
of energy conservation at national level. The ultimate goal of development assistance is to enhance
entire efficiency of energy use in recipient countries. This is the difficulty of implementing energy
The only way for JICA’s small-scale projects to achieve the goal is to implement them
strategically. If cooperation is performed in a strategic manner based on the past experiences, it is
possible for JICA’s projects to be a part of contributions to realizing the promotion of energy
conservation in developing countries. “Being strategic” means full-scale selection and concentration,
and to have a long term view. In other words, it is to “strike only a pin-point target repeatedly.” In
this case, a “pin-point target” have two aspects: the willingness of recipient countries and the timing
of assistance.
The“willingness of recipient countries” corresponds with previous terms of “The power of
willingness of developing countries that intend to change themselves shall be utilized to the utmost
extent.” This means the necessity of providing assistance that meets the needs of developing
countries: what they intend to perform next and what they demand in order to establish systems and
organizations. That is to say, 80% of assistance efforts are devoted to what the developing
countries can achieve with their willingness, and the rest of 20% to the creation of additional values

which they cannot perform by themselves. Comparatively superior technologies are strongly
demanded in this type of cooperation, and energy conservation is one of assistance field suitable for
Some may take it for granted that assistance to promote self-help efforts of developing countries
to the utmost and then go along with them work well. However, in the past there had been failure
cases because we tried to introduce systems which worked well in Japan to developing countries
believing they are superior to the systems they have.
On the other hand, it is also important to judge whether or not what a developing country intends
to perform next is correct . When policies that go in the wrong direction are assisted, there is a
danger of policy change on a unilateral basis. A typical example of incorrect policies is to “sow seeds
in bad soil.” First, a system (soil) must be created, and then an organizations that is positioned on
such system is created. Such order must be kept. Requests from developing countries that desire
to “sow the seeds” but have no soil must be discussed and examined with them through development
studies, and JICA has to restructure the contents of cooperation with responsibilities as necessary.
“The timing of assistance”, the other concept of pin-points, is to start assistances after figuring
out when developing countries intend to change themselves. The pin-point target must be“struck
repeatedly,” with continuous inputs in the long run. In technical cooperation projects, inputs are
usually intensively implemented in five years , and it may be more effective in some cases to divide
the five-year project period into two: two and three years of separately implemented projects, for
example, when the projects have sufficient inputs for five years. In the first two years, a master plan
on energy conservation system is made, and the next two years have no inputs, waiting until the
legislation of the master plan is established. Once the Energy Conservation Law is established, the
qualification system of Energy Managers and training courses would be introduced in the
cooperation projects in the following three years. When the initially formulated master plan is not
legislated, it is possible not to continue any additional inputs. In order to implement such actions, it
is necessary to consider program. In the long run, a project is considered as a part of a program,
and this view enables us to continue assistance in different circumstances of recipient countries.

(2)Successful Case of Program Cooperation

It is said that the project in Turkey is the most successful case of all previously implemented
projects in cooperation of the energy conservation sector of JICA. In the technical cooperation
project, which is being implemented as of 2004, the counterpart members of the National Energy
Conservation Center in Turkey (EIE/UETM) have shown excellent performances of managing both
training courses and EA services, which are core parts of the technology transfer. In addition, they
also have played important roles in promoting energy conservation in the country.
As a result of proper contents of several inputs performed at proper timings, the JICA’s project
has contributed to the promotion of energy conservation in Turkey. The main factor of the success
is continuous endeavors of the Turkish government, and the supports from Japan have not

fundamentally changed the system of Turkey. The proper supports have been performed at a proper
timing by JICA, and Turkish government took advantage of the opportunity and has made the
present achievements.
The factors of success in Turkey are outlined as below.
<Background of Energy Conservation in Turkey>

1 . Assistance for establishing governmental organization of energy conservation and

strengthening the organization’s function by different approaches

1981: A role of promotion of energy conservation is provided to EIE/ETKB( General

Administration of Development of Investigation for Electricity and Resources/Turkish
Ministry of Energy and Natural Resources)

After the second oil shock, in Turkey , research has been promoted in order to perform the activities
of energy conservation in public and industrial sectors. In 1981, EIE (General Administration of
Development of Investigation for Electricity and Resources), a research institution, plays a role of
performing rationalization of energy use .
1980: The transfer of EA technologies by UNIDO
1982-1984: The transfer of EA technologies phase 1 by the World Bank
1989: Energy Conservation Center, Japan (ECCJ)implemented energy conservation seminars
in Ankara
1988-1991: The transfer of EA technologies phase 2 by the World Bank

2. Commencement of assistance from JICA and creation of draft for Energy Conservation
Law in Turkey

1990: First participation of EIE in a group training of JICA

March 1992: Participation in a group training for the persons of EIE in charge of energy
conservation policies
When the Turkish government is reviewing the entire regulations relating to energy conservation,
the persons of EIE in charge of energy conservation policies were invited to Japan and received
training for energy conservation policies. The trainee created a draft of regulations on energy
conservation (ministerial ordinances) in Turkey after returning to the country. Additionally, the
idea of requesting JICA for implementing energy conservation projects (including training facilities)
was also formulated.

3. Establishment of Energy Center in Turkey

December 1992: The Department of Investigation of Energy and Resources of EIE was
recognized as the UETM (National Energy Conservation Center). UETM has played a central
role of promotion of energy conservation in Turkey.

4. Establishment of Ministerial Ordinance of Energy Conservation

1995: Establishment of “Rules for Measures on Promoting Rationalization of Energy

Consumption by Industrial Institutions”
Based on an original draft created by the trainees of JICA’s group training held in 1990, the
Ministerial Ordinance of the Energy Conservation Law was established.

5.Substantial supports from JICA

1995-1997: JICA’s expert dispatch
1995-1997: Implementation of JICA’s development study
NECC performed promotional activities of energy conservation such as EA, training, and publicity.
However, the Energy Conservation Law was not established and the quality level of energy
conservation technologies was not high. In such circumstances, the development study on the master
plan, provision of EA for trial, and a study and survey on industrial sectors were performed in order
to promote energy conservation activities of UETM..
1997-2000: JICA’s expert dispatches
JICA’s follow-up development studies and studies for the possibility of further cooperation
required expert dispatches from the energy conservation sector.
2000-2005: Implementation of JICA’s technical cooperation projects
For enhancement of energy conservation activities by EIE/UETM, EA, training, and publicity, were
2004-2005: Implementation of JICA’s third-country training programs
At the stage where the result of JICA’s technical cooperation projects was partially obtained,
third-country training programs were performed. The programs prepare EIE/UETM to manage
projects by themselves while it also aimed to benefit neighboring countries from dissemination of

6. Future outlook

2005- Senior overseas volunteers (scheduled)

Establishment of the Energy Conservation Law has become realistic within Turkey. Thus, more
cross-cutting activities for energy conservation among ministerial agencies have been seen. Also, the
abilities of EIE/UETM are sufficient to promote energy conservation within Turkey. Therefore, it is
judged that Turkey can independently promote energy conservation in the industrial sector without
assistance from other countries in the future, and therefore, senior overseas volunteers are to be
dispatched for follow-up.
2005- Technical cooperation projects (scheduled)
In Turkey, a great amount of energy is consumed in industrial and power generation sectors. The
system of promoting energy in industrial sectors conservations has been established by assistance
from donors. Thus, the next target of cooperation on the energy conservation is power generation

The factors of the successful case in Turkey quoted from above are the followings:

1)The training in Japan introduced Japan’s experience on energy conservation to the trainee of a
Turkish policy maker. The trainee was working on a proposal for energy conservation laws in
Turkey at that time. .
2)The creation of a master plan was completed in development studies when EIE started reviewing
an overall picture of energy conservation policies
3)After EIE/UETM learned and acquired simple EA technologies from assistance provide by the
World Bank and UNIDO, JICA performed the transfer of advanced technology of EA, which
targeted for factories.
4)Practical training courses utilizing mini-plants were established by technical cooperation project
by JICA when EIE/UETM was providing factories with classroom lectures for Energy Managers

All of cooperation above was performed with proper contents at proper timings.

(3)Timing of Inputs at Each Stage

The lessons from the cooperation in Turkey allow us to group countries into three categories by
their promotion level of energy conservation.
1)Level 1: Stage of Assistance for Establishing a System
Countries that needs assistance for establishing fundamental systems on energy conservation.
Dispatches of policy advisor, training in Japan for policy makers, and development studies are
expected as in“(1) Establishing of energy conservation systems” of 3-1-1.

2)Level 2: Stage of Assistance for Individual Measures

Countries that have established fundamental system on energy conservation to some extent (Since
completely established system is hardly seen even in developed countries, only necessary is to find
out whether the country has decent environment where assistance can be implemented. This has to
be confirmed in preparatory studies.). Assistance for those countries shall be establishment of
organizations and provision of support for energy conservation activities as in method presented in
“(2) Implementation of services of energy conservation by the government” and “(3) Promotion
of the energy conservation market” in 3-1-1.

3)Level 3: Stage of Assistance for Self-Help Development

Countries beyond the stage of level 2, where systems of promoting energy conservation have
been reinforced and positive results of energy conservation have been obtained to some extent.
The small input of follow up assistance, including third country training, and dispatch of senior
oversea volunteers, is available to promote self-help development, benefit neighboring countries,
perform troubleshooting, and transfer knowledge for further development of the countries.

3−1−3 Countries with Assistance Priority
The methods of effective cooperation in energy conservation sectors of JICA have been presented.
At the same time, assistance policies also require priorities regarding which countries to be assisted.
The way the decisions on such priorities are made will be briefly mentioned in this section.
Energy conservation has overall goal of making contribution to global environment measures.
Thus, all countries whose energy use is predicted to grow in the future will find this concept highly
applicable. Among those, especially, countries which meet the following conditions are likely to
receive high priority for foreign assistance in energy conservation sector.
Few countries seem to meet all of the following conditions, and energy conservation can be still
achieved without the conditions sufficiently met. The conditions are only shown as a “criteria,”
a tool for making a priority order. Thus, not all recipient countries have to meet it sufficiently.

(1)High Potential of Energy Conservation

The countries with great deal of energy consumption but little progress in energy conservation
have high potential of energy conservation. Therefore, it is highly significant to promote energy
conservation in countries such as China and India, for countermeasures against global environmental
issues. The potential of energy conservation can be identified from statistical numbers of the amount
of consumed energy and energy intensity.
(2)High Incentives for Energy Cost Reduction
Promoting energy conservation policies would raise highly positive effects of energy conservation
in the countries where people have a strong incentive for energy cost reduction due to high energy
prices and the awareness of eco-friendly economic growth necessary in industrial sectors (For
example, many corporations make efforts to acquire an environmental management standard such as
ISO14000). Those counties have potential to effectively achieve energy conservation, and
cooperation with those countries would be highly significant. The incentives are measured by
statistical data of the growth rate of demands for commercially used primary energy and electricity,
and electricity prices.

(3)High Policy Priority on Energy Conservation.

In countries placing a high policy priority on energy conservation, counterparts are generally well
organized and have good ability for operation. The environment would enable the country to
successfully achieve energy conservation, and thus cooperation in those countries is significant.
The policy priority is not necessarily measurable from statistical data, influenced by other factors,
and it is necessary to observe and understand the bureaus and counterparts in charge of energy
conservation. In general, the countries with energy conservation laws and governmental
organization working for its promotion place a high policy priority on energy conservation.

3−1−4 Points to Note upon Cooperation
Lastly, points to be remembered upon JICA’s future cooperation on energy conservation will be
listed as lessons from its past cooperation experience.

(1)The concept of target on energy conservation (giant enterprises and small and medium-sized
The requests for promoting energy conservation in small and medium-sized enterprises are
sometimes raised by developing countries. In many cases, giant corporations in developing
countries are foreign affiliates, and they own technologies and experts on energy conservation.
However, about 80% of energy consumption in developing countries is generated from those giant
corporations, and the effect of cooperation for the small and medium-sized enterprises would not
give much influence to the national level of energy conservation. Moreover, the significance of
energy conservation is poorly recognized in small and medium-sized enterprises, and they invest in
other necessities prior to energy conservation. In order to improve this situation, education of
engineers and publicizing energy conservation are simply not enough. There must be policy
incentives such as laws and regulations ensuring subsidies for investing in energy conservation.
The governments of developing countries tend to think that establishing no subsidy system and
policies still allow medium-sized enterprises to voluntarily tackle energy conservation if the
enterprises learn the potential of energy conservation to reduce business costs. However, many small
and medium-sized enterprises suffering from limited financial sources cannot afford even making
investments prior to energy conservation, although their improvement points are clearly identified.
When the cooperation targets only small and medium-sized enterprises, it is important to find out
if the country extends political assistance such as subsidies and legislations. Also, it is necessary to
target the entire society, and thus the cooperation should involve giant corporations as well as small
and medium sized enterprises.

(2)Differences in Basic Understandings of Energy Conservation among Countries (between

Japan, Europe and the United States)
“Utilizing the knowledge of Japan” does not mean “faithful copy of Japanese model in
developing counties” but “transforming corresponding portions into the form adoptable to the
utilization of recipient countries.” There are two different approaches to promoting energy
conservation between Japan, and Europe and the United States: the former through its legal
regulations and latter through the use of market mechanisms. For example, ENERGY MANAGER
system, which was a driving force of Japan to reach the highest global standard, is not commonly
undertaken in Europe and the U.S., in which the countries tend to place a priority on encouraging
businesses such as ESCO rather than exercising regulations. It is generally recognized that energy
conservation should be promoted through the use of the market mechanisms. This is accepted in

the society where familiarity with the principle of “what the private sector can do should be
performed by the private sector” is common. Therefore, governments are afraid of the backlash from
the private sector when exercising new regulations.
It is necessary to note that cooperation should be always reviewed over whether or not the
introduction of Japan’s experience on energy conservation is suitable for the circumstances of
countries adopting the approaches of Europe and the United States, and there is no need to stick to
Japan’s approach.

(3)Provision of “Mini-Plants”
Many of technical cooperation projects on energy conservation have provided mini-plants and
training courses utilizing the training facilities. The mini-plant, equipped with machinery
commonly used in factories across all industrial sectors, is a facility designed for effectively
providing trainees with practical training courses on energy conservation. It has contributed to
publicity of promoting energy conservation in recipient countries.
However, utilization of a min-plant also needs some improvements. It is necessary to adequately
review the appropriateness of introducing a mini-plant, and upon the determination of its
introduction, sufficient preparation is necessary.
What has been mainly pointed out thus far is as follows.
1The mini-plant aims to provide opportunities to acquire basic technologies on energy conservation,
and trainees are expected to acquire skills of manually operating its equipments. On the other
hand, the training level is sometimes not high enough for trainees from giant corporations,
especially when they have automatic operation in their factories. Prior to the provision, therefore,
it is necessary to accurately understand the demands of the counterpart countries.
2)It is necessary for recipient countries to prepare facilities for installing equipments to them. A
facility needs enough space for practical training classrooms, and building construction work
including interior parts are normally necessary before the installation to a mini-plant. The
constructions must be completed by the recipient countries with no delay.
3)Since equipments such as boilers, furnaces, and open burners generate high temperature of heat,
restrictions in accordance with the Fire Defense Law may apply.
4)For the effective utilization of a mini-plant, a specially designed facility, the expertise of
mini-plant training is required at each stage of formulating specifications, installation, trial
operations, and training.
5)For sustainability of energy conservation , the counterparts need to acquire the maintenance
skills of the mini-plant as well as its operation skills. Thus, it is necessary for JICA to recruit a
short-term expert (or a long-term expert) who sufficiently understand the structure of mini-plant

3−2 Future Top-Priority Issues
3−2−1 Formulation of New Projects and Programs by Utilizing the Thematic
After drafted and publicized, the Thematic Guidelines, presenting us lessons and analysis of
effective approaches over promoting energy conservation, shall play its primary role when JICA
makes decision upon formulating new projects in energy conservation sector. Most significantly,
the Guidelines is expected to be a fundamental knowledge source effectively utilized by JICA’s
oversea offices as well as by corresponding sector departments of the headquarters. It is also
important for JICA to accumulate the knowledge of energy conservation through the acquisition of
new insight and knowledge from terminal evaluations as well as occasional addition and revision.
3−2−2 Promotion of Partnerships in the Related Fields
(1)Countermeasures against Global Warming
The momentum against global warming has been rapidly enhanced in recent years. Since the
adoption of Framework Convention on Climate Change in 1994 and the Kyoto Protocol in 1997,
international frameworks have been steadily established. The promotion of energy conservation is
directly linked with CO2 reduction, one of the greenhouse gases. However, the governments of
Japan as well as of developing countries have separated energy conservation from global
environment issues, dealing with each of them in different bureaus. In JICA, the linkage of
projects on energy conservation to global environment projects has been hardly discussed. .
From now on, it is necessary to consider not only how trend of global warming works as an
incentive of promoting energy conservation, but also how energy conservation contributes to the
global issue. For example, the possibility of gaining certified emission reduction (CER) from EA is
considered. It is important to have partnerships with organization working on the global warming

(2)Other relating fields of energy conservation

The information of energy conservation projects has not been sufficiently exchanged between JICA
and other organizations such as NEDO, the World Bank, and others presented in Chapter 1. JICA
is expected to have partnerships with them. The weak relationship between donor organizations is
sometimes seen even in countries where similar types of projects are implemented for the same
counterparts (example case is in Thailand). In the future, especially in Asian countries where
various types of projects are mixed, building a strong partnership would lead to future success of

3−2−3 Responses to Assistance for Business-Based Energy Conservation

Japan has a history in which the energy conservation was promoted by self-help efforts from

enterprises (enhancement of competition), regulation by legal systems, and subsidies from
government. On the other hand, countries in Europe and the U.S. tend to promote energy
conservation on business-basis such as ESCO business, and it is originated from the notion that what
the private sector can do should be performed by the private sector. The foundation of the two types
of approaches differs from each other, and many countries where JICA operates projects adopt the
approaches of Europe and the U.S., as their basic policies.
JICA has proposed those countries to consider Japan’s approach as more effective, which is, for
example, the establishment of legal systems on energy conservation. However, it is not easy to
place new type of regulations only upon the energy conservation sector in those countries where the
different type of approaches is undertaken for their policies.
From now on, JICA should promote energy conservation on business basis in those countries
adopting the Europe and the U.S. type of approach. It is, for example, encouraging ESCO
business by formulating projects adaptable to the circumstances of the countries. JICA does not
have sufficient experiences of the business-based approaches, and it is necessary to accumulate
knowledge and skills of the new type of approaches in JICA through analysis of successful cases of
international organizations such as GEF.

3−2−4 Establishment of Performance Measurement for Programs and Projects

In the past technical cooperation on energy conservation, the evaluation of projects was based on
the number of inputs, such as “the number of trainees taking courses and of factories receiving
EA.” In recent years, however, the Result-Based-Management is being introduced in JICA, and
thus, it is necessary to establish performance measurement for evaluating energy conservation,
which, for instance, indicates the unit(s) of energy conserved in a country. The measurement can
be applied to programs, which is possibly operated in the long run, while its introduction to projects
seems more difficult due to its relatively limited operation period.

Appendix 1 Major Cooperation Projects

1.Technical Cooperation Projects

Name Project type Period of

(1) China Energy Conservation Training Center in Dalian / Project-type 1992.7 -1997.7
People's Republic of China technical
(2) The Industrial Energy Conservation Project / Project-type 1995.7 -2000.6
Argentine Republic technical
(3) Energy Efficiency Center Project / the Republic of Project-type 1995.11-2000.10
Bulgaria technical
(4) Project of Energy Conservation / the Republic of Project-type 2000.8 -2005.7
Turkey technical
(5) The Project on the Practical Energy Management Project-type 2002.4 -2005.4
Training Center / Kingdom of Thailand technical
(6) The Project for Improvement of Environment Project-type 2002.9 -2007.8
Protection Technology Metallurgical Combustion / technical
People’s Republic of China cooperation
(7) The Project on Energy Management Promotion / Technical 2003.3 -2007.2
Islamic Republic of Iran cooperation
(8) The Project on Poland and Japan Energy Conservation Technical 2004.7 -2008.6
Technical Center / Republic of Poland cooperation
: In operation as of 2004

Name of project China Energy Conservation The Industrial Energy Energy Efficiency
Training Center in Dalian / Conservation Project / Center Project / the
People's Republic of China Argentine Republic Republic of Bulgaria
1. Background of September 1984: Request August 1982: Request July 1991: Request
project from the Chinese from the Argentine from the Bulgarian
government for a study on government for a study government for a study
the energy conservation on the possibility of on the possibility of
plan of factories (under the transfer of specific energy conservation
prerequisites where Dalian technologies relating to February 1992-January
City is to be a specific energy conservation to 1994: Development
study site) the enterprises in the Study
November 1985-February country September 1993:
1986: Implementation of July 1988-1989: the Request from the
the study Development Study government for
November 2, 1990: (No. July 1991: Request from cooperation on “the
6863 Gaimu Koshin) the government for Establishment of
July 22, 1991: (No. 3460 cooperation on “the Energy Efficiency
Gaimu Koshin) Establishment of Center”
An intension to establish Training Center for January 1994: Dispatch
“Energy Conservation Energy Auditor on of a Basic Study team
Training Center in Dalian Energy Conservation” for cooperation in
City was presented and a February 1992: Dispatch energy conservation in
request for cooperation of experts for the Eastern Europe
from Japan was made. background study November 1994:
October 1991: Dispatch of April 1994: Dispatch of a Dispatch of a
a preparatory study team preparatory study team preparatory study team
April 1992: Dispatch of August-September 1994: May 1995: Dispatch of
long-term experts (no Dispatch of long-term long-term experts
making report required) experts August 1995: Making
July 1992: Making a March 1995: Making a a consultation for
consultation for consultation for implementation and
implementation and implementation and signing on R&D.
signing on R&D. signing on R&D.
2. Project goal To promote energy To train energy managers To strengthen the
conservation technologies through CPs and diffuse capacity and function
to expand over China, energy conservation of the energy center to
through the establishment among industrial sectors propose energy
of Energy Conservation after the CPs are trained conservation measures
Training Center in Dalian, to be able to instruct and by themselves and
China and training for promote energy instruct industrial
future energy conservation conservation. sectors for energy
experts in all regions of the conservation
-Training courses for -Training courses for -EA in factories
energy conservation energy conservation -Improvement for
-EA in factories technologies
-Consultation -Economic evaluation
-Information -Information
management management
-Publicity -Publicity
-Proposal of measures -Proposal of measures
evaluation by energy
3. Project period 5 years (July 1992 – July 5 years (July 1995 – June 5 years (November
1997) 2000) 1995 –October 2000)
Extension of 1.5 years (July
1997 – January 1999)

4. Counterpart Dalian Economic National Institute of Energy Efficient
Committee/ Energy Industrial Technology Center of Ministry of
Conservation Training (INTI)/Research and Economy, Trade and
Center in Dalian Development Center for Industry (EEC)
Energy Conservation
5. Inputs from Japan
Expert dispatch Leader: Fujio Yoshida → Leader: Susumu Leader: Hirozou Ezaki
Long-term expert (2 Koichi Yamanashi→return Horiguchi → Kiyoshi →Shosei Ikeuchi
years at local site) to post Yoshimoto Coordinator: Reiko
Coordinator: Katsuki Takei Coordinator: Mitsuo Oguro
→return to post Yoshida → Yoshinobu Long-term experts
Long-term expert Kariya (heat):Hiroshi
(management): Kazunari Long-term experts (heat): Fukayama → Kazuro
Furugaki→Fumio Oohashi Hiroshi Murata→Hiroshi Toyota
→return to post Mizuta Long-term experts
Long-term expertt Long-term expers (electricity): Shosei
(electricity):Tadayuki Ikeuchi (concurrent
(heat):Toshio Sakaguchi →
Komada → Tetsuomi position)
Koji Iwata→return to post
Long-term expert Nawa
(electricity):Hiroaki Jindai
→Yuichi Shiraoka→return
to post
Short-term expert Establishment of a practical Establishment of a Method of use and
(total number, the training plant: 16 persons practical training plant : 7 calibration of
number of Method of use and persons measuring equipments:
months/frequency) calibration of measuring Method of use and 4 persons
equipment: 5 persons calibration of measuring Energy Audit (some
Lecture of technologies for equipment: 2 persons cases include
energy conservation: 8 Lecture of technologies processes ) : 28
persons for energy conservation: persons
Energy audit on 7 persons Proposal of energy
processes: 12 persons Energy audit on conservation policies:
Total: 41 persons processes: 5 persons 1 person
Total: 21 persons Total: 33 persons

Acceptance of 1993FY: 4 persons 1995FY: 4 persons 1995FY: 2 persons

trainee (1-2 (observation type) (observation type) (observation type)
month(s)/frequency) 1994Y: 4 persons 1996FY: 3 persons 1996FY: 2 persons
(observation type) (observation type) (observation type)
1995FY: 4 persons 1997FY: 2 persons 1997FY: 2 persons
(observation type) (practical training type) (practical training type)
1996FY: 4 persons 1998FY: 2 persons 1998FY: 1 person
(obervation type) (practical training type) (practical training type)
1997FY: 3 persons 1999FY: 3 persons (2 1999FY: 2 persons (1
(observation type) persons for practical person for practical
Total: 19 persons training type and 1 training type and 1
person for observation person for visitation
type) type)
2000FY: 1 person 2000FY: none
(practical training type) Total (up to 1999FY):
Total 16 persons 9 persons

Provision of A practical training plant: A practical training plant: Measuring machinery

equipment boiler, furnace, absorption boiler, furnace, steam equipments for EA:

cooling machine, electric system, cooling tower, simple measurement
furnace, steam system, pump and fan facilities, equipments (Keyence
cooling tower, etc. and flow detector, etc. System), such as
(completed in April 1998) (completed in May 1998) analyzer of gas
Measuring machinery Measuring machinery emissions,
equipments for EA: equipments for EA: thermometer, and
analyzer of gas emissions, analyzer of gas flowmeter, etc.
thermometer, and emissions, thermometer, Equipments for
flowmeter, etc. and flowmeter, etc. education: audio-visual
Equipments for education: Equipments for equipmenst, office
audio-visual equipments, education: audio-visual automation equipments
office automation equipments, office such as personal
equipments such as automation equipments computers, and books
personal computers, and such as personal
books computers, and books
Domestic assistance Creation of basic Creation of basic Supply of technical
activity specifications of practical specifications of practical information,
training plants, supply of training plants for recruitment of experts,
technical information, supply of technical planning and
recruitment of experts, and information, recruitment implementation of
holding domestic of experts, planning and training programs in
committees. implementation of Japan, and holding
training programs in domestic committees,
Japan, and holding etc.
domestic committees,
6. Activity for (1)Initial plan includes only (1) Training and EA (1) EA, not including
transfer of training. For elimination of a practical training
technology shortage of funds and plant (mini-plant)
self-reliance, the EA in a (2) Selection and
factory was conducted in a assistance of a model
period of follow-up (1.5 factory, designed for
years). the diffusion of energy
conservation from
EA-recipient factories
7. Activities of
long-term experts at
local sites
Establishment of Acceptance, inspection, and Acceptance, inspection, None
practical training troubleshooting on and troubleshooting on
plant equipments equipments
Guidance of test operation Guidance of test
and operating technologies operation and operating
Creation of training text technologies
books for a practical Creation of training text
training plant books for a practical
training plant
Training for CP Transfer of technologies to Transfer of technologies Transfer of
CPs (plant management, to CPs (plant technologies to CPs
heat, and electricity management, heat, and (plant management,
management) electricity management) heat, and electricity
Training courses for Guidance for the method management)
instructing the method of of use for measuring Guidance for the
use for measuring machinery equipments method of use for
machinery equipments Creation of teaching measuring machinery
Creation of teaching materials for training and equipments
materials for training and guidance for Structural
guidance of implementation implementation improvement of EEC

Creation of handbooks for its self-help
for implementation of development
the EA and clarification (promoting discussions
of possible items of the with undersecretary of
audit Ministry of Economy,
Reinforcement of Trade and Industry,
CIPURE for its Energy Secretary, and
organizational self-help officers of embassies
development and making efforts for
receiving fund sources
through cooperation of
NEDOs’ study and of
ESCO establishment
Guidance of the Transfer of EA Transfer of EA Transfer of EA
Energy Audit in technologies technologies technologies: OJT
factory Implementation of EA and Implementation of EA through a model
guidance for its and guidance for its factory (designated 5
improvement improvement factories)
Implementation of EA
and guidance for its
Improvement of Energy conservation Energy conservation
information system database of (factory data, database of (factory
cases of energy data, cases of energy
conservation, etc) conservation, etc)
Database by sector and Database by sector and
customer customer
Improvement of
updating/management of
technical information
Guidance for Visitations to factories Visitation to factories Visitation to factories
training and Training, seminars, lecture Training (including Seminars and lecture
publicity activity meetings, etc. practical training at meetings, etc.
Many classroom-lecture plants), seminars, lecture Seminars by
type training were already meetings, etc. long-term/short-term
held. Seminars by experts, etc.
Implementation of long-term/short-term CP’s participation in an
training for using practical experts, etc. academic conference
training devices in CP training courses to report the case study
December, 1997 including (Energy Managers, and of EA, holding EEC
videos, brochures, and boiler operators) seminars.
news letters, ect for public Brochures for sales for
relation. soliciting of training and Creation of brochures,
EA ball pens with a logo
Videos, brochures, and mark, and wall-hung
news letters for public clock for public
relation relations
Establishment of Introduction of EEC to
partnership with foreign countries
domestic relative through the domestic
organizations radio programs
8. Energy January 1998: Energy The quality of CPs has July 1999: Energy
Conservation Law, Conservation Law was reached a considerably Conservation Law was
etc. enacted (bylaws were not Satisfactory level, but enacted. However,
enacted). there are no heat control bylaws were not yet.
Factories in a certain scale system. The energy No obligation for EA is
or more appoint a Energy policies target the required. Transfer of
Managers from among the suppliers, and the energy technologies to CP is

persons who experienced conservation for almost completed.
such field for 7 years or consumers (industrial
longer and who also belong sectors) is dependent
within the framework of upon their self-help
university (framework of efforts. Training and
subjects relating to energy), appropriate allocation of
and the transactions of personnel are required.
energy conservation are

Project of Energy The Project on the Project on Poland and Project on Energy
Conservation / The Practical Energy Japan Energy Management
Republic of Turkey Management Training Conservation Promotion / Islamic
Center / Kingdom of Technical Center/ Republic of Iran
Thailand Republic of Poland
September 1997: November 2001: (Date unknown): November 2000:
Request from Turkish Request for Request for “study Request for
government for “The cooperation based on on energy “establishment of
establishment of training GAP consultation; conservation Energy Conservation
courses for future Energy treated as a project for possibility” Center”
Managers. positive preservation of
April 1999: Dispatch of a environment March 1997-March June 2001: 1st
preparatory study team (METI/JETRO) 1999: Development short-term study
October 1999: Dispatch February 2001: 1st study February 2001: 2nd
of a short-term advisory May-August 1999: short-term study
team June 2001: 2nd study Dispatch of short-term
experts July 2002: 3rd
March 2000: Making a September 2001: 3 short-term study
consultation for study October 2000:
implementation and Dispatch of a September 2002: 4th
signing on R&D. December 2001: 4 preparatory study team short-term study
study (including local study
May 2001: 1st of machinery
July 1992: Making a short-term study equipments)
consultation for
implementation and July 2001: 2nd November 2002:
signing on R&D (by short-term study Making a consultation
Thai office for implementation
representative) December 2001: 3rd and signing on R&D
short-term study Dispatch of a project
consultation team
February 2002: 4th twice thereafter.
short-term study (only

March 2002: 5th

short-term study
To raise the efficiency of To improve The governmental The Practical Energy
domestic energy use by educational system of a system where Training Center
promoting the use to be person responsible for industrial sectors of contributes to the
more rational. energy (Energy Poland can promote energy conservation of
Managers) with energy conservation the industrial sectors
advanced technologies measures is improved
and abilities by ECTC.
Transfer of training
projects/system of
qualified person for heat

Training project Establishment of Energy Transfer of training Transfer of training

Manager support system projects/system of projects/system of
EA on factories qualified person for qualified person for
heat management heat management

Information management EA for factories
and supply Publicity
Publicity management Proposal of measures

Proposal of measures Publicity Establishment of

support system of
Proposal of measures energy conservation

support member
5 years (August 2000 – 3 years (April 2002 – 4 years (July 2004 – 4 years (March 2003 –
July 2005) April 2005) June 2008) February 2007)
General Administration of Department of Energy Polish National Azarbaijan Higher
Development of Development and Energy Conservation Education and
Investigation for Promotion (DEDP), Agency (KAPE) Research Complex
Electricity and Resources Thailand, Ministry of
(EIE)/National Energy Science Technology and
Conservation Center in Environment
Turkey →Department of
Alternative Energy
and Efficiency(DEDE.)

Leader: Ryoichi Yoshida Leader: Akitoshi Narita Leader: Kazutoshi Leader: Takeho Sakata
Coordinator: Kimiko Maki Coordinator: Ryosuke Coordinator: Shuichi
→Koji Omura Iwasa Coordinator: Yoshinori Harima
Long-term experts Long-term experts : Long-term experts
(technology): Iwao Asada Jyunichi Naeka Long-term experts (heat):Yaufumi
(heat):Masataka Serizawa
Long-term experts Long-term experts: Morita
(training): Taichiro Hidetaka Urakubo Long-term experts
Kawase Long-term experts (electricity): Kiyoshi
(electricity): Susumu Kamiya
Long-term experts
(policy): Mitsuo
About 5 persons a year About 4 persons a year About 5 persons a year About 5 persons a year
About 4 persons a year About 5 persons a year About 4 persons a year About 4 persons a year
Practice training plant: Practical training plant: Practical training Plant of practice
boiler, furnace, trap boiler, furnace, trap plant : boiler, trap training: boiler,
facilities, pump and fan facilities, and pump and facilities, and pump furnace, trap facilities,
facilities, pneumatic fan facilities and fan facilities and pump and fan
facilities, and exhibition facilities
room Measuring machinery Measuring machinery
equipments for EA: equipments for EA: Measuring machinery
Measuring machinery analyzer of gas analyzer of gas equipments for EA:
equipments for EA: emissions, thermometer, emissions, analyzer of gas
analyzer of gas emissions, and flowmeter, etc. thermometer, and emissions,
thermometer, and Equipments for flowmeter, etc. thermometer, and
flowmeter, etc. education: audio-visual Equipments for flowmeter, etc.
equipments, and office education: Equipments for
Equipments for education: automation equipments audio-visual education:
audio-visual equipment, such as personal equipments, and office audio-visual
office automation computers automation equipments, and office

equipments such as equipments such as automation equipment
personal computer, and personal computer such as personal
books computers
Creation of basic Creation of basic Creation of basic Creation of basic
specifications of a specifications of specifications of specifications of
practical training plant, practical training plants, practical training practical training
supply of technical supply of technical plants, supply of plants, supply of
information, recruitment of information, recruitment technical information, technical information,
experts, and holding of experts, and holding recruitment of experts, recruitment of experts,
domestic committees, etc. domestic committees, and holding domestic and holding domestic
etc. committees, etc. committees, etc.
(1) Training (1) Transfer of a system (1) Transfer of a (1) Transfer of a
(2) E A of qualified person for system of qualified system of qualified
(3) Publicity and proposal heat management in person for heat person for heat
of policies Japan management in Japan management in Japan
(2) The facilities for (2) EA for factory (slightly lower level)
practical training (3) Adoption of a (2) Dispatch of experts
(mini-plant) are provided system of assistance for supporting policies
for the purpose of member (3)SABA as a
training personnel to be cooperative group
able to conduct EA for implements
energy conservation understanding of
within factories of each effect of energy
enterprise. conservation at
factories, transfer of
and guidance of
technologies to
factories. The
guidance and advice to
SABA is conducted by

Acceptance, inspection, Acceptance, inspection, Acceptance, Acceptance,

and troubleshooting of and troubleshooting of inspection, and inspection, and
equipments equipments troubleshooting of troubleshooting of
equipments equipments
Guidance of test operation Guidance of trial
and operating technologies operation and operating Guidance of test Guidance of trial
technologies operation and operation and
Creation of training text operating technologies operating technologies
books for a practical Creation of training text
training plant books for a practical Creation of training Creation of training
training plant text for a practical text books for a
training plant practical training plant
Transfer of technologies to Transfer of technologies Transfer of Transfer of
CP (plant, heat, and relating to a system of technologies relating technologies relating
electricity management) qualified person for heat to a system of to a system of
management in Japan qualified person for qualified person for
Creation of teaching heat management in heat management in
materials for training Japan Japan
course and guidance of
implementation Assistance of creation Guidance and advice
of teaching materials relating to energy
Guidance of the method of for training conservation policies
use for measuring
machinery equipments

Transfer of technologies of Transfer of technologies Transfer of Guidance, advice, and

EA for factories (focus through using the technologies of EA for supply of information
on processes) machinery equipments factories to the cooperative
for practical training agencies of Iran
Implementation of EA and Implementation and
guidance for its guidance of
improvement improvement
concerning an audit
for factory
Assistance for issuance of None in principle Assistance for creation Guidance, advice, and
energy conservation of information system supply of information
technology handbooks to the cooperative
Assistance of structuring Supply of information agencies of Iran
energy conservation
Introduction of standards Advice and guidance Guidance and advice Guidance and advice
for judgment of energy relating to publicity relating to structuring relating to publicity
conservation of publicity systems
Assistance for enhancing
publicity systems for
energy conservation
Regulations in accordance The Energy The Energy Law The policies relating to
with Ministerial Conservation Law exists. exists, but no Energy energy conservation
Ordinances exist. Conservation Law are included in the
exists. third 5-year plan
The establishment of (2000-2004).
Energy Conservation Law
is awaiting a decision
making at Cabinet
meetings concerning.

2.Technical Cooperation Projects (Projects except TCP)

Name Form Period of

(1) Energy management in Thailand (energy conservation) Dispatch of 1997.1-2000.1
(2) Energy conservation in industrial sectors in Republic of Dispatch of 1997.1-2000.1
Turkey experts
(3) Energy conservation in Poland Dispatch of 1999
(4) Energy conservation training in Saudi Arabia Acceptance 2004.9-2004.10
of trainees
(5) Energy Manager training in Republic of Turkey Third-country 2004.11-2004.12
: In operation as of 2004

3. Development Study Projects

Name Form Period of

(1) Study on master plan for project on energy Development 1982 -1984
conservation / Kingdom of Thailand Study
(2) Study on maser plan for industrial energy conservation Development 1985.10-1986.9
in People's Republic of China Study
(3) Study on master plan for energy conservation for Development 1987.12-1989.1
factory / Argentine Republic Study
(4) Study on master plan for energy conservation in Development 1991.7 -1992.8
Republic of Hungary Study
(5) Study on master plan for energy conservation in Development 1992.2 -1994.1
Republic of Bulgaria Study
(6) Study on master plan for optimum use of energy in Development 1995.9 -1997.9
Islamic Republic of Iran Study
(7) Study on master plan for rational use of energy in Development 1995.11-1997.2
Republic of Turkey Study
(8) Study on master plan for energy conservation in Development 1997.3 -1999.1
Republic of Poland Study
(9) Study on master plan for promotion of energy Development 1998.1 -1999.2
conservation in Malaysia Study

4.Training in Japan (group training and Eastern Europe training)

(1)Group Training
Training have been implemented for 241 trainees from 49 countries from 1986 until 2004.
49 countries that participated in the training were as follows.
Argentina, Bahrain, Bangladesh, Brazil, Bulgaria, Cambodia ,Chili ,China, Columbia, Cote
d'Ivore, Croatia, Cuba, Dominican Republic, Egypt, Ethiopia, Fiji, Guatemala, Honduras, India,
stan,Palestine,Paraguay,Peru,Philippines,Serbia and Montenegro, Saudi Arabia, South Africa, Sri
Lanka,Syria,Tanzania,Thailand,Tunisia,Turkey,Uruguay,Vanuatu,Venezuela,and Vietnam

(2)Eastern Europe Training
Training was implemented for 112 trainees from 14 countries from 1994 until 2003.
14 countries that participated in the training were as follows.
Albania, Bulgaria, Croatian, Czechoslovakia, Estonia, Hungary, Latvia、 Lithuania, Poland,
Romania, Slovakia, Ukraine, Yugoslavia, and Serbia and Montenegro

Name of country 94 95 96 97 98 99 00 01 02 03 Total

1 Albania 0 0 0 0 0 1 1 1 1 0 4
2 Bulgaria 0 2 2 2 3 2 2 1 2 2 18
3 Croatia 0 0 0 0 0 2 2 2 2 1 9
4 Czechoslovakia 2 3 2 3 0 0 0 0 0 1 11
5 Estonia 0 0 0 0 0 0 1 0 0 0 1
6 Hungary 3 2 2 2 0 0 0 0 0 1 10
7 Latvia 0 0 0 0 1 1 0 1 0 0 3
8 Lithuania 0 0 0 0 0 1 1 1 0 1 4
9 Poland 3 2 1 3 3 1 2 2 2 2 21
10 Romania 0 1 2 0 3 2 2 1 1 2 14
11 Slovakia 2 2 2 0 2 1 0 2 2 0 13
12 Ukraine 0 0 0 0 0 0 1 0 0 0 1
13 Yugoslavia 0 0 0 0 0 0 0 0 1 0 1
14 Serbia and 0 0 0 0 0 0 0 0 0 2 2
Total 10 12 11 10 12 11 12 11 11 12 112

5. Related projects
In addition to the aforementioned projects, JICA has implemented the following projects in other
sectors as related projects. They belong to other sectors, and thus,the main purpose of these
projects is not to directly perform energy conservation, However, they result in contribution to
energy conservation .
・Related projects of renewable energy and efficiency of power transmission and distribution
(managed by Economic Development Department)
・Related projects of environmental protection and air pollution (managed by Global Environment
・Related projects of transportation and traffic (managed by Social Development Department)

Appendix 2 Cooperation Activities of Major Donors on

Energy Conservation

1.World Bank

Coutry/ Approval
Project Name ID Product Line
Area Date
ENERGY EFFICIENCY PROGRAM/INDUSTRIAL P078131 Global Environment Tunisia 4-Nov-04
POLAND - GEF Energy Efficiency Project P070246 Global Environment Poland 14-Oct-04

Energy Efficiency Project P068124 Global Environment Uruguay 13-May-04


Serbia Energy Efficiency Project P075343 IBRD/IDA Serbia and 16-Mar-04


The Czech PCF Umbrella Project - Energy Efficiency P073542 Carbon Offset Czech 17-Oct-03


CROATIA - ENERGY EFFICIENCY PROJECT P071461 Global Environment Croatia 7-Oct-03


Demand-Side Management & Energy Efficiency Project P071019 Global Environment Vietnam 24-Jun-03

System Efficiency Improvement, Equitization & P066396 IBRD/IDA Vietnam 25-Jun-02

Renewables Project
System Efficiency Improvement, Equitization & P073778 Global Environment Vietnam 25-Jun-02
Renewables Project (GEF Renewable Component)

Energy Efficiency Project P055906 Global Environment India 27-Jun-00


Kiev Public Buildings Energy Efficiency Project P055739 IBRD/IDA Ukraine 27-Jan-00


2.Asian Development Bank

Most Recent
Project Name Country/Area Initial Listing TYPE
Energy Efficiency Enhancement India 19-Oct-01 29-Jul-02 PPTA

Appendix 3 Quotations, References, and Web Sites

1.Statistics and basic materials relating to energy conservation

- Agency for Natural Resources and Energy (2004) “Energy White Paper/2004 version” published
by GYOSEI Corporation ion
- Committee of Editing of Almanac for Resources and Energies (2003) “2003/2004 Almanac for
Resources and Energies” published by Industry Data Publishing Company
- Committee of Editing an Overview for Energy Conservation (2004) “Overview of Energy
Conservation in 2004 and 2005” published by Industry Data Publishing Company
- Agency for Natural Resources and Energy (2004) “Energy 2004” published by Energy-forum
- Energy Conservation Measures of the Agency for Natural Resources and Energy (2003)
“Enlarged Edition of Statute Book of “Energy Conservation Law” revised in 2003” published by
Energy Conservation Center
- Energy Conservation Center (2004) “Manual of Facilities and Equipment for Energy
Conservation in 2004” published by Energy Conservation Center
- Department of Quantitative Analysis of Institute of Energy Economics, Japan (2004) 『2004
Energy Conservation Center
- Energy Conservation Center (2004) “Handbook of Energy Conservation in 2004” published
by Energy Conservation Center
- Energy Conservation Center (2004) “Manual of Energy Conservation in 2004” (published
by Energy Conservation Center
- Department of Quantitative Analysis of Institute of Energy Economics, Japan (2004) “Digest of
Statistic of Energy and Economy in 2004”(Edition of Energy Conservation Center
- Unit for Analysis of Economy of Institute of Energy Economics, Japan (2004) “Illustrated
Introduction of How to Read Energy and Economy Data (revised version) ” Energy
Conservation Center

2. Books relating to energy conservation technologies

- Mitsuo Iguchi (1997) “Introduction of Heat Management, New Edition” Energy
Conservation Center

- Kazuo Usui (1996) “Introduction of Electricity Management, New Edition” published by
Energy Conservation Center
- Kiyoshi Kamiya and Shiro Suzuki (2003) “Energy Conservation of Buildings” published by
Denkishoin co.,ltd.

3.Web sites
- http://www.meti.go.jp/ Ministry of Economy, Trade and Industry
- http://www.enecho.meti.go.jp/ Agency for Natural Resources and Energy
- http://www.eccj.or.jp/ Energy Conservation Center
- http://www.jaesco.gr.jp/ JAESCO: Japan Association of Energy Service Company
- http://www.naesco.org/ NAESCO: National Association of Energy Service Company
- http://www.eccj.or.jp/esco/esco_list/index.html list of ESCO operators (based on the web
page of Energy Conservation Center)
- http://www.eccj.or.jp/link/link_j.html Collection of links relating to conservation energy
(based on the web page of Energy Conservation Center)