To secure the future of Brunei Darussalam’s energy sector, the EDPMO has set 3 Strategic Goals to
propel the energy sector forward and realise the National Vision:

• Strategic Goal 1 – Strengthen and Grow Oil and Gas Upstream and Downstream Activities
• Strategic Goal 2 – Ensure Safe, Secure, Reliable and Efficient Supply and Use of Energy
• Strategic Goal 3 – Maximise Economic Spin-off from Energy Industry – Boost Local Content and Secure High Participation of Local Workforce

Strategic Goal 2 encompasses considerations for energy efficiency and renewable energy geneation. Specifically, the report explains the following.

The oil and gas industry, is classed as a major hazards industry. With significant operations located both onshore and offshore, the key focus of the national safety and health policy is to continuously improve safety and health standards in the entire supply chain of this sector. Due to aging infrastructure, a key focus area for the oil and gas industry is asset integrity. Maintaining asset integrity, is not only a key enabler to achieving good safety performance, it also plays a very important role in maximising the country’s oil and gas production.

The Key Performance Indicator (KPI) that relates to the health and safety of oil and gas sector is:

• Ensure Safe Operations: The priority for safety performance is to ensure that high risk activities are effectively managed and controlled; and all reasonably practicable measures necessary to prevent major accidents have been taken to limit the consequences to persons, assets and the environment. The target is therefore to have zero major accidents. Climate change and other environmental concerns are becoming more important in the national agenda especially in the effort to ensure domestic economic and energy securities. An energy sector that does not compromise the environment is thus a prerequisite. Significant steps toward this is decarbonisation of the primary energy demand and supply through energy conservation and renewable energy resources respectively.

The KPI which track the low-carbon primary energy demand and supply are:

• Energy Intensity: An indicator used to assess the performance of energy efficiency that is measured by the ratio of primary energy demand to the country’s GDP value contribution measured in 2005 real terms. The target is to reduce energy intensity by 45 percent by 2035 in line with Brunei Darussalam’s commitment to APEC.
• Renewable Energy in Total Power Generation Mix: Renewable energy is energy that comes from resources that can be naturally replenished such as solar and waste-to-energy. Currently, Brunei Darussalam produces about 1,700 MWh of solar energy per year. The target is to increase the share of renewable energy in the total power generation mix by 2.7 percent or 124,000 MWh by 2017 and by 10 percent or 954,000 MWh by 2035.

Reliability of domestic power and fuel supplies is an important component that makes up Brunei Darussalam’s energy security. These supplies are very much vulnerable to any disruptions that cause power outages and insufficient domestic fuel supply. Therefore, it is important to increase the reliability of these supplies in order to lessen the country’s vulnerability and economic risks associated with interrupted power and fuel shortages. The two KPIs relevant to reliability of energy supply in Brunei Darussalam are:

• Power Outages: An incident of unscheduled power outages that lasts for more than one hour resulting from technical failure, human error and severe weather. This does not include scheduled power outages for maintenance purposes. The target is to reduce power outages frequency to less than 100 per year by 2017 and to less than 50 per year by 2035.
• Interruption in Supply of Transport Fuel: An incident whereby there is a supply interruption on gasoline (Premium 97, Super 92 and Regular 85) or diesel at more than half of the total pump stations in the respective districts in one day. The target is to achieve zero interruptions in transportation fuel supply.

The report also goes into detail on the means of achieving Energy Intensity goals, as seen in the following excerpt.

Priority Initiative: Evaluate Range of Options to Reduce Energy Intensity

In achieving the energy intensity target, concerted efforts and close coordination among relevant stakeholders such as those of Government agencies, industry and individuals are instrumental. Government agencies work together in evaluating legislative, financial and fiscal policy measures that promote energy efficiency and low-energy intensive industries. Industries role include identification of technical levers that reduce energy usage over time while individuals shift consumption behaviour towards energy efficiency that includes making choices on high energy efficient appliances (refer to Exhibit 3.3). The EDPMO is currently in the process of enacting a regulatory framework on Energy Efficiency and Conservation (EEC) through the National EEC Committee, a platform that coordinates EEC efforts with various stakeholders at a high-level and oversees the implementation the EEC Plan of Actions on four major sectors namely residential, commercial, industrial and transportation. This Committee is co-chaired by the Minister of Energy at the Prime Minister’s Office, the Minister of Development and the Minister of Communication.

• Residential and commercial buildings: Measures include applying “smart” tariffs, application of high-energy efficient technologies in buildings, installation of smart meters and evaluation of feasibility of altering tariff structure that promotes efficient consumption behaviour. Implementation of the initiatives set out in the residential sector would reduce energy consumption to 36 percent from the Business-As-Usual (BAU) scenario which is about 16.2 percent of the total targeted energy intensity reduction by 2035. Similar measures in commercial sector could result up to 41 percent reduction which is about 18.5 percent of the total targeted energy intensity reduction by 2035.
• Industrial Sector – Implementation of the EEC initiatives set out under the industrial sector would reduce energy consumption to 10 percent from the Business-As-Usual (BAU) scenario which is about 4.5 percent of the total targeted energy intensity reduction by 2035.
• Transport: Under the jurisdiction of Ministry of Communications, measures towards energy intensity reduction include promotion of fuel efficient technologies, the use of hybrid cars for private transportation and introduction of fuel economy standards. These efforts are set to reduce about 13 percent of energy consumption from the Business-As-Usual (BAU) scenario which is about 5.9 percent of the total targeted energy intensity reduction by 2035. The Government through Centre of Strategic and Policy Studies (CSPS) has introduced a Brunei Land Transport Masterplan that promotes modal shift towards public transportation and will play a role in further reducing energy consumption in the sector.
• Power generation: The Department of Electrical Services (DES) and Berakas Power Management Company (BPMC) have set out plans to increase efficiency in the power generation from 23 percent to more than 45 percent. Plans include implementation of combined cycle turbine and co-generation powerplant, reduction of partial load operation, improvement of transmission and distribution losses, mandate an energy efficiency standard for new power plants and reduction of gas consumption through integration of renewable and alternative energy as to meet domestic power demand.

In realising all the above initiatives, a number of legislative measures are under consideration by the EDPMO, Ministry of Communications, Ministry of Development and Ministry of Education. In 2009, the Centre for Strategic and Policy Studies (CSPS) has conducted a Brunei Energy Efficiency and Conservation Study on the Roadmap Formulation and Policy Advice via a consultant firm which as a result, designed seven key policies that come with the following recommendations:

• Policy 1: Appliance Energy Efficiency Standards and Labeling
  • Establishing legal framework for energy efficiency standards.
  • Setting up minimum energy efficiency standards for air conditioners in the first phase, followed by refrigerators, lightings and other appliances in the subsequent phases.
  • Designing the types of energy efficiency indicators and rating scale to be adopted for each appliance.
  • Introducing energy labeling for selected electrical appliances.
• Policy 2: Building Regulation
  • Establishing legal framework for Building Energy Efficiency.
  • Introducing energy efficient or green building labels or certificates.
  • Demonstrating green buildings
• Policy 3: Energy Management
  • Introducing the energy management process that is compatible with international standards such as ISO 50001.
  • Introducing energy audit policy for buildings and industries
  • Promoting Energy Service Company (ESCO)
• Policy 4: Fuel Economy Regulation
  • Evaluate the possibility of implementing fuel economy regulations.
  • Promoting the utilisation of hybrid and electric vehicles.
• Policy 5: Electricity Tariff Reform
  • Expanding the current progressive electricity tariff for residential sector to other sectors when appropriate.
  • Evaluating feasibility of altering tariff structure to promote desired consumption behaviour.
  • Conducting regular surveys to understand the optimum tariff schedule through understanding the relationships between household income and electricity usage.
• Policy 6: Financial Incentives
  • Introducing appropriate incentives for energy efficient appliances and vehicles.
• Policy 7: Awareness Raising
  • Setting up EEC curriculum in national education system to increase awareness at the grassroot level.
  • Introducing annual awards to incentivise individual and corporation to practice energy management.
  • Conducting energy exhibitions, roadshows, workshops and seminars for general public to demonstrate the potential for EEC.
  • Educate young generation through the establishment of Energy Clubs in secondary schools and sixth form centres.
  • Regularly publishing energy consumption of major energy users to inform end users and induce their behavioural change.
  • Conducting regular survey on energy consumption pattern in different sector to spur an informed-based decision making process.