Effective energy efficiency policy implementation targeting "new Modern Energy CONsumers" in the Greater Mekong Sub-region (MECON)

Energy efficiency improvements offer multiple benefits, such as reduced household energy expenditure and improved productivity, thus contributing to economic growth. Getting more from existing resources due to increased energy efficiency (EE) also results in reduction in greenhouse gas (GHG) emissions and enhanced energy security. For developing countries, EE could make modern energy services available at a faster pace and at lower costs to those who currently lack access to electricity. This research will investigate EE amongst "New Modern Energy Consumers" in the Greater Mekong Sub-region (also known as GMS: Cambodia, Laos, Myanmar, Thailand, and Vietnam) in order to improve policy design and implementation of EE measures. New modern energy consumers, i.e. those who are connected to the electricity grid with daily incomes of US$ 2 to 5, are expected to account for a large share of the expected increase in energy demand and thus GHG emissions. However, this target group does not exist in OECD countries and there are therefore few examples of EE policies that can be replicated and/ or adapted to the GMS, yet this target group will be essential to economic development in the region over the coming decades. Furthermore, effective implementation of energy policies remains a key challenge in GMS and other countries of the developing world.
MECON aims to improve our understanding of the opportunities and barriers to increasing EE amongst new modern energy consumers in the GMS. The research will establish a robust evidence base on energy use, EE technologies and policies in the region and will focus on the energy resources and technologies that are used by new modern energy consumers, including household electricity use for lighting, heating, cooling, and appliances, as well as fuels for cooking and personal transport, such as motorbikes. The research will contribute to knowledge on the design and implementation of EE policy by looking at the opportunities and barriers from technological, socio-economic and institutional perspectives. In so doing, MECON will contribute to higher income levels for new modern energy consumers, since reduced household expenditures on energy through enhanced EE will enable these consumers to focus on other needs.
An equally important objective of the research programme will be the enhancement of research capacity in GMS countries in the area of energy, EE and climate change. This will include the development of research links and networks at the international, regional and national level. The participation and dissemination of the research results to a range of stakeholders from government, the private sector, NGOs and academia will therefore be a critical component of MECON.
The research is timely since energy demand is expected to increase rapidly over the coming decades, particularly in Asia and in large part as a result of energy consumption from new modern energy consumers. Targeting this important consumer group will have positive development outcomes on household economies, national energy demand and on GHG emissions. This research will also assist the countries of the GMS - Cambodia, Laos, Myanmar, Thailand and Vietnam - to realise sustainable energy access for all rapidly and cost effectively, whilst reducing the environmental impacts of this increased demand.
Project partners:
Dr. Milou Beerepoot (Scientific lead), Joint graduate School of Energy and Environment (JGSEE), Thailand
Dr. Pham Hoang Luong, Hanoi University of Science and Technology (HUST), Vietnam
Dr. Sok Kunthy, Royal University of Agriculture (RUA), Cambodia
Mr. Aung Thet Paing, Myanmar Engineering Society (MES), Myanmar
Dr. Khamphone Nanthavong, National University Of Laos (NUOL), Laos

Energy efficiency (EE) has long been highlighted as critical to help meet substantial growth in energy demand. EE offers a number of benefits including: reduced household expenditure on energy; reduced energy demand; greenhouse gas emission reductions; and reduced dependence on imported fossil fuels and thus enhanced energy security at the national level. By drawing together existing research and data on energy efficiency in the Greater Mekong Sub-region (GMS), MECON will identify and seek to fill existing gaps in the knowledge. Building upon this sound evidence base, MECON will develop locally-appropriate energy efficiency policies, specifically aimed at new modern energy consumers.
Several stakeholder groups will benefit both directly and indirectly, from the results of the research. First and foremost, governments of the GMS will gain new insights into the ways in which EE may be realised. MECON will adopt a holistic, multi-disciplinary approach that will combine several perspectives and data sources, including existing energy data, available EE technologies, socio-economic conditions and institutional arrangements. This holistic approach will be translated into recommendations for locally-appropriate policy design and implementation for promoting EE particularly amongst new modern energy consumers in the GMS. Policy-relevant insights will address both the policies required to address a range of technical and non-technical barriers, as well as the institutional challenges.
Secondly, new modern energy consumers i.e. those who are connected to the electricity grid, but who have low daily incomes (US$2-5) will benefit from more targeted policies to promote EE. For example, the introduction of specific investment incentives for new modern energy consumers, which may include greater access to finance through micro-finance energy service companies (ESCOs) or loans and/ or specific tools to addressing "energy literacy", such as guidance in reading energy labels, will enable these energy consumers to make more informed decisions about energy use and EE. Reduced expenditure on household energy needs will free up income for other needs, such as education and income generating activities.
Thirdly, companies involved in the supply chain for household EE technologies, as well as service providers, such as ESCOs and banks, will benefit from the research. The establishment of a robust evidence base on household energy use, behaviours, opportunities and barriers to acceptance of EE technologies will enable these actors to develop more targeted interventions. In addition, this evidence base will be of use for the future creation of an internal ASEAN market (the ASEAN Economic Community/AEC), particularly the commercial sector in EE technologies.
Finally, this project will strengthen existing capacity amongst the project team. It will also promote research links, networks and knowledge transfer amongst project partners, and other researchers in the UK and GMS countries - Myanmar, Thailand, Vietnam, Cambodia and Laos. Being a project funded by the EPSRC, DECC and DFID will facilitate knowledge transfer and dissemination of the project outcomes, while the knowledge generated by MECON will provide a valuable resource for UK and GMS researchers. MECON is a multi-disciplinary project, drawing on a range of disciplines (e.g. science and technology studies, energy policy, innovation studies, economics, energy for development, engineering etc.) whose members have substantial expertise in energy research in the GMS. This research will also contribute to the career and skills development of all named researchers, and associated PhD researchers at UCL, JGSEE, NUOL, MES, HUST and RUA.