The objective of the assignment is to identify opportunities for EE&C opportunities in commercial, residential and public sector buildings and make recommendations for policies and investments that could be initiated by NEECA or other government agencies, including the provincial energy departments, to realize these opportunities and make substantial progress towards meeting the Government’s EE&C goals and targets.

The scope of the work comprises the following three tasks to identify opportunities for improving the EE of new and existing buildings in Pakistan:
1. Identification of policies and investment opportunities;
2. Analysis and recommendations for an appropriate auditing and compliance regime;
3. Analysis and recommendations for potential financing mechanisms for mobilizing private sector investment.

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Task 0: Desk research and Data collection:

The project involves extensive data collection and stakeholder consultations, and the approach is to review all the relevant information relating to policies, strategies, laws, regulations and market studies undertaken and determine the data gaps that would need to be addressed by supplementary data collection. Site visits, coordination, and interviews with local stakeholders in Pakistan were undertaken by team of national experts engaged by IIEC. To ensure that comprehensive information on the building EE code development and implementation in Pakistan is complied, the relevant building EE code documents were reviewed, as well as identified and compiled international experience on building EE code development and implementation relevant for Pakistan, including the review of inputs to final inception report.

Task 1: Policies and Investment Opportunities

Identifying policies and investment opportunities for EE&C improvements in commercial, public sector, and residential buildings. The assessment included energy and water use, EE&C potential, and investment requirements for both new and existing buildings.

(i) Analyze the current situation for the energy efficiency of buildings in Pakistan, including:

• Review energy conservation building codes to assess opportunities for improvement in energy efficiency of new buildings by optimizing building envelope, implementing passive measures, improvement in heating, ventilation, and cooling systems, improved sensors, and control systems for optimizing system performance and coordinating building energy systems, on-site generation, and energy storage to lower utility costs;
• Assess existing compliance and enforcement mechanisms, and their effectiveness;
• Assess the energy efficiency potential for different categories of existing buildings, and the likely energy, GHG emissions and cost savings for different levels of building retrofit (deep, shallow) to come up with recommendations on priority interventions.

(ii) Explore the potential for other mechanism (aside from building codes) to raise the standards of EE&C in new buildings, including:

• Development of “design and build templates” for various building categories that make use of locally-available skills and materials, which would be freely and publicly available but could be mandated for publicly-funded building programs (e.g. affordable housing, education, healthcare, government offices);
• Provision of fiscal incentives to increase demand for energy efficient buildings;
• Regulatory mandates (e.g. bans on certain materials or design options);
• Consumer awareness campaigns.

(iii) Analyze the potential for EE&C investments in public sector buildings, including:

• National or provincial retrofit programs targeting high payback opportunities, including program design and implementation mechanisms;
• Provision of incentives to support “zero carbon public sector” demonstration projects, including design and implementation mechanisms.

Task 2: Auditing and Compliance Regime:

(i) Recommend how NEECA can define and identify designated consumers within public and commercial buildings and best implement an audit regime for the designated consumers, giving due consideration to enforcement challenges;
(ii) Recommend systems and procedures for surveys, surveillance, monitoring and inspection of buildings to prevent inefficient use of energy consumption in buildings, including the use of remote monitoring and the provision of incentives and other non-compliance based mechanisms;
(iii) Analyze the option of results-based payments to registered audit firms for developing a market for energy audits and to provide baseline data on energy use by buildings;
(iv) Explore and propose what international energy savings measurement and verification protocols (e.g. IVMP) can be used in Pakistan’s context;
(v) Assess need for education and training of auditors to successfully implement the audit regime;
(vi) Propose how a building energy efficiency rating system could be implemented in Pakistan to evaluate and compare energy use, energy efficiency, and energy costs in new and existing buildings.

Task 3: Financing Mechanisms:

(i) Explore a range of options to facilitate access to finance (such as EE credit lines and EE funds, EE risk sharing facilities, utility EE and DSM programs, private ESCOs and public super ESCOs, energy efficiency housing finance facility among others) and examine their relevance, viability, and applicability within the context of Pakistan to support the necessary private sector investments in building energy efficiency;
(ii) Propose a short list of financing mechanisms for the building sector and describe in more detail possible design elements, including objective and target markets, potential institutional structure/implementation arrangements, business model, key issues for implementation (e.g. legal/regulatory changes needed), timeline, etc;
(iii) Assess the design and functioning of the existing Energy Conservation Fund (ECF), including its legal, HR and financial structure, and recommend how ECF can be restructured to implement the recommended financing mechanisms;
(iv) Recommend how ECF can support provincial designated agencies in implementing energy efficiency investments with their provinces;
(v) Evaluate the availability and capacity of existing EE&C service providers operating in Pakistan (such as energy auditors, ESCOs, installers and other such firms) in terms of technical and financial capabilities to develop and implement public and private sector projects through Energy Service Agreements (ESA) or guaranteed- or shared savings-based energy savings performance contracts (ESPCs).

Task 4: Project Coordination and Meetings

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