Strategic Planning and Management of Energy Sector

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
Guidelines on Strategic Planning and

Management of the Energy Sector
Vision
Set objectives
Review and targets
and reset in a strategy
Develop
Monitor and Stakeholder programme
report progress involvement of action
Implement
the programme
UNITED NATIONS
ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
Guidelines on Strategic Planning and

Management of the Energy Sector
UNITED NATIONS
New York, 2002
ST/ESCAP/2211
The designations employed and the presentation of the material in

this publication do not imply the expression of any opinion
whatsoever on the part of the Secretariat of the United Nations
concerning the legal status of any country, territory, city or area or
of its authorities, or concerning the delimitation of its frontiers or
boundaries.
Mention of any firm, institution, organization, licensed process or

commercial product does not imply the endorsement of the United
Nations.
The views expressed in the papers comprising this publication are

those of the authors and do not necessarily reflect those of the
United Nations.
This publication has been issued without formal editing.

Foreword i
Foreword
Energy has been recognized as one of the essential inputs for social
and economic development. For the past decade, there has been
mounting pressure to ensure that the energy sector pay sufficient
attention to environmental and social issues while ensuring that
there is enough energy to support the development of the nation.
Linking energy issues to other critical issues such as the
environment and social issues is clearly an area that requires
additional efforts to support sustainable development. In
preparation for the ninth session of the Commission on Sustainable
Development, which was dedicated to dealing with energy issues
prior to the World Summit on Sustainable Development, ESCAP
members and associate members in the Asian and Pacific region
adopted the Sustainable Energy Development Action Programme,
Strategies and Implementation Modalities for the Asian and Pacific
Region, 2001-2005 at the High-level Regional Meeting on Energy
for Sustainable Development, held in 2000. One of the priority
areas identified in the Action Programme is to strengthen planning
capacity in sustainable energy development by establishing clear
linkages to other sectors.
Against this backdrop, with funding from the United Nations

Development Account, a project entitled “Capacity-building in
strategic planning and management of natural resources in Asia and
the Pacific” was launched in 2000 to address the issue of
establishing linkages between the energy sector and other sectors.
The main objective of the project is to strengthen the capacity of the
developing countries in the Asian and Pacific region in strategic
planning and management of natural resources development and
environmental protection. The project is being implemented in
three phases: (a) development of guidelines; (b) subregional
workshops; and (c) activities at the national level.
In 1997, ESCAP, with the cooperation of the Government of the

Netherlands, implemented a project to promote the concept of
strategic environmental planning and management. It is an
ii Guidelines on Strategic Planning and Management of the Energy Sector
approach that requires appropriate action over the long term to

prevent environmental degradation or to reverse that trend. It
included setting staged targets for change. Governments need to
encourage policy makers in all sectors of society and business and
community leaders to take environmental considerations into
account in their decision-making processes.
Building on the work on the concept of strategic environmental

planning and management, ESCAP, with the assistance of Mr Hans
van Zijst, an international consultant, and with input and
contributions from a number national experts, has developed the
guidelines for the energy sector using a similar approach.
The guidelines focus on integrating environmental and social issues

into energy sector planning. While it is conceptually easier to
accept the notion of integrating environmental and social issues into
energy sector planning, it is difficult to accomplish such tasks as
there is a lack of clear understanding and comprehensive tools or
techniques are not available to ensure systematic planning,
implementation, monitoring and evaluation of energy plans with
effective integration or incorporation of social and environmental
issues. The guidelines contain a step by step approach to develop
long-term policies based on a shared vision, strategy, programme of
action, implementation of the programme, monitoring and
evaluation. In essence, it is an attempt to develop energy policies
incorporating environmental and social issues which are widely
accepted and understood by stakeholders. It provides a
comprehensive framework towards achieving common goals by
concerned government agencies, utilities, private sector and NGOs.
The guidelines have been reviewed at the Expert Group Meeting,

held at Bangkok in June 2001 as well as at the Regional Workshop
in December 2001. It includes some examples of how
Governments in the Asian and Pacific region are dealing with
certain components of strategic planning and management.
Foreword iii
The publication is intended to strengthen the capacity of energy

planners in developing countries by providing a planning tool in
developing energy policies to ensure sustainable development. It is
intended to be used during subregional workshops and during
activities at the national level in building national capacities to use
the guidelines to shift towards strategic planning and management
of the energy sector.
The secretariat wishes to acknowledge with appreciation the

valuable contribution made by the consultant and experts in
developing the guidelines.
Contents v
CONTENTS
Page
Foreword ................................................................................................
i
Introduction ...........................................................................................
1
I. THE CONCEPT OF STRATEGIC PLANNING ....................

7
II. STRATEGIC PLANNING AND MANAGEMENT

OF ENERGY RESOURCES .....................................................
17
III. THE GUIDELINES ................................................................

23
IV. STAKEHOLDERS’ INVOLVEMENT ................................

49
V. MANAGING STRATEGIC PLANNING AND

MANAGEMENT ................................................................ 59
VI. MODEL VARIANTS ................................................................

65
VII. CONCLUSIONS ................................................................ 71
Annex I. Glossary ................................................................................

75
Annex II. Literature .............................................................................

79
INTRODUCTION
Introduction 3
Strategic planning and management of natural resources has been

identified as an important factor in the economic and social
development of the countries in Asia and the Pacific. At the fourth
Ministerial Conference on Environment and Development in Asia
and the Pacific, 2000, held at Kitakyushu, Japan, in September
2000, the Ministers decided to continue the work on strategic
planning and management. This work started under the Regional
Action Programme, 1996-2000, with a particular focus on
management of the environment. The ministers decided to focus
activities under the new Regional Action Programme, 2001-2005,
on resource management issues, in particular on water and energy
resources. The energy component was further elaborated under the
Sustainable Energy Development Action Programme, Strategies
and Implementation Modalities for the Asian and Pacific Region,
2001-2005. This Programme was adopted by the Ministers and
representatives attending the High-level Regional Meeting on
Energy for Sustainable Development at Bali, Indonesia in
November 2000. In relation to energy resources, it is stated as the
mission of all concerned stakeholders1:
To enhance the capacity of concerned stakeholders in

developing sustainable energy strategies under which energy
services can be expanded and improved with a minimum
compromise on environmental quality.
Strategic planning is a tool, a methodology for decision-making and

problem solving. It is about the long-term perspective and short-
term actions. It is about substance (the ‘what’) and process (the
‘how’). It is about managing one’s own agenda (the ‘when’) and
about working together with others (the ‘who’). There are many
variations in approaching strategic planning and management. This
publication will draw particularly on work done by and for ESCAP,
from 1996 to 2001. Much of this work has been published by
ESCAP or will be published in due course.
1
Mission statement taken from the Regional Action Programme for Environmental
Sound and Sustainable Development, 2001-2005.
4 Guidelines on Strategic Planning and Management of the Energy Sector
‘Energy is a crucial input into the development process. However,

the current energy system is not sustainable’ 2, in particular because
of the negative effects of burning fossil fuel. Globally there are no
immediate concerns regarding resource availability. In order to
attain sustainable development in the long run, dependency on these
resources must be reduced gradually, in favour of renewable energy
sources. The links between energy, environment and sustainable
development present a difficult paradox to the Governments of the
Asian and Pacific region. The huge demand for energy to facilitate
economic growth and social development is largely met with fossil
fuels. The extension of energy services to people without access is
critical in alleviating poverty, but burning carbon has significant
negative effects on the well-being of humans and eco-systems. This
is caused by indoor and urban air pollution, cross-boundary
pollution and global climate change. In the medium-term part of
these dilemmas can be solved through a more efficient way of
production, distribution and consumption of energy. However, the
real challenge lies in the long-term switch to renewable energy
sources. This will require additional research and technology
development as well as the transfer of these new technologies to the
Asian and Pacific region.
This document presents guidelines on the strategic planning and

management of energy resources. It covers conventional energy
resources as well as a sustainable energy future. The guidelines are
presented in a practical format, very much as a road map for
countries wishing to plan and manage their energy resources in a
sustainable manner. Countries in the ESCAP region that have
already undertaken some form of strategic planning and
management may find this guidelines worthwhile as a reference
document for their future review of energy strategies and policies.
2
See the Regional Action Progra mme.
Introduction 5
The contents of the guidelines are:
Chapter I contains a short introduction of the concept of strategic

planning and management, including a comparison with a more
traditional policy development approach.
Chapter II presents the relevance of this concept for energy

resources management in general. It presents an oversight of
expected benefits from the application of the guidelines as well as
an introduction of the guidelines.
Chapter III presents the guidelines on strategic planning and

management in energy resources policy making.
Chapter IV provides an introduction to stakeholder involvement in

the planning process.
Chapter V focuses on the overall management issues in applying

strategic planning and management to the energy sector.
Chapter VI highlights several model variants that are useful to bear

in mind when making decisions on the application of the concept on
energy resources management.
Chapter VII presents conclusions on the guidelines and their

applicability and usefulness.
Annex I presents definitions of terminology in a glossary.
Annex II contains a literature and reference list.

CHAPTER I
THE CONCEPT OF
STRATEGIC PLANNING
Chapter I: The concept of strategic planning 9
I.1 INTRODUCTION
The concept of strategic planning and management of natural

resources has been developed over the last decade of the twentieth
century in several countries around the world. 3 After two decades
(roughly 1970-1990) of environmental regulations on emissions to
air, water and soil, many developed countries found that overall
gains in environmental quality were less positive than expected.
These gains were insufficient for the sustainable development of
their country. In many cases single focus end-of-pipe regulations
led to a situation of pushing waste streams around, notably quite
hazardous streams (such as industrial sludge, fly-ash, an-organic
residues). The regulatory approach seemed less successful in
relation to changing production and consumption methods.
Countries such as the Canada, Netherlands, New Zealand and
Sweden looked for new approaches to allow for process-integrated
and resource-based solutions. New goals included increased
efficiency in the use of natural resources, minimizing losses of
material in the production of goods, taking responsibility for the
whole production chain (from the production fields of primary
material to the point of disposal ‘cradle-to-grave’ or even to the
point of recycling and re-use ‘cradle-to-cradle’).
In the early nineties several experimental approaches were under

development around the world. Although originally developed for
environmental protection the concepts soon proved to have a wider
scope of application, including energy resources management.
Table 1 (see end of this chapter) presents a comparison between
traditional approaches towards policy development and strategic
planning and management (SPM).
3
An excellent overview of earlier experiences can be read in an IIED publication:
National sustainable development strategies: experiences and dilemmas, Barry Dalal-
Clayton a.o., London, 1994.
ESCAP organized a series of meetings in the course of 1998-2000

to introduce the concept to the Asian and Pacific region and to build
regional capacity in applying this strategy approach to
environmental decision-making as well as natural resource
management issues.4
I.2 T HE KEY FEATURES OF SPM
SPM is an approach by which Governments (and stakeholders) take

a long-term view of trends in natural resource use and
environmental and social quality (described as the ‘vision’),
identify the changes necessary to bring these trends within
sustainable limits and to establish a management framework to
encourage key groups in society to achieve these goals. It is not a
blueprint: as national objectives, circumstances, levels of
development, degrees of institutionalization, financial possibilities
and other conditions vary from country to country, so does the SPM
approach need to vary.
A key feature of strategic planning is the development of a

comprehensive ‘strategy’ that deals with all challenges, current and
future, in an integrated manner. For energy resources such a
strategy should look beyond energy-specific issues to economic,
social and environmental costs and benefits. The strategy should be
based on the integration of these elements of sustainable
development. Preferably, decisions are made on a thorough and
balanced analysis of costs and benefits.
The strategy is subsequently translated into a manageable ‘plan’ 5 to

implement the strategy. These plans are specific in tasks, targets,
timing, allocation of responsibility, funds and other resources, in a
manner that allows for monitoring and evaluation of progress.
4
Strategic Environmental Planning, ESCAP publication ENRD/1999/1, United
Nations, New York, 1999.
5
The terms ‘programme’, ‘action plan’ and ‘action programme’ will be used
randomly throughout these guidelines as synonyms of ‘plan’.
Depending on existing administrative culture a plan could span a

three- to five-year period. In many cases the plan could be broken
down further in annual operational plans.
Figure 1 presents an overview of the relation between vision,

strategy and action plan.
Figure 1. Relationship between key features of SPM
Vision goals: 15-25 years
Strategy goals: 10 – 15 years
Adaptation of strategy
Action Plans (4-5 years)
Regular
Feedback on
Ongoing Strategy-level
feedback
Monitoring Progress
Baseline >> time
In this figure the baseline represents the situation in the initial year
of the process. Progress will be measured against this baseline, and
if justified, attributed to the implementation actions since this initial
year. Results of monitoring will feed both ongoing operational (i.e.,
short-term) plans and the overall (i.e., long-term) strategy. Strategic
feedback may result in a revision of the strategy, reformulation of
goals and actions, or other adjustments.
Another key feature of SPM is the establishment of clear targets,

quantitative goals, for the achievement of a sustainable energy
future. Quantification of targets, followed by monitoring results
against the original baseline, will enhance the transparency of
progress.
As energy production increases, and consumption is largely in the

hands of organizations and individuals outside of the Government,
the concept of strategic planning puts great emphasis on the
commitment of civil society (including commercial entities and the
non-governmental organizations), as partners. Each partner has its
own distinct and accountable role to play in the realization of the
target, through the implementation of a set of pre-agreed actions.
This is backed by a mix of regulatory requirements and cost-
effective economic instruments, but also with a periodic and
ongoing dialogue between relevant stakeholders.
Roughly strategic planning and management is a five step process:

• Step 1: Set objectives and targets (on the basis of a vision) .
• Step 2: Develop programmes of action with relevant
groups.
• Step 3: Implement the programme.
• Step 4: Monitor, evaluate and report progress.
• Step 5: Review and reset objectives and targets (where
necessary).
Figure 2 illustrates this process. For the purpose of the guidelines in

this document, this approach is elaborated in a more sophisticated
phasing, explained in chapter III.
Stakeholder involvement is important throughout the process.

Chapter IV focuses on their role, how to manage this and who to
involve in which step of the process.
Figure 2. Five step approach
Vision
Set objectives and targets

in a strategy
Review
and reset
Monitor and Develop programme

Stakeholder
report progress of action
involvement
Implement
the programme
To push this process as well as to manage it, there is need for a

clear and effective management structure behind this five-step
approach. This management should reside with the initiating
authority. This would typically be the department of energy of the
Government, but other possibilities exist. Often management is
actually executed through the establishment of a temporary task
force or working party, with a clear mandate from the responsible
authority to organize and manage the process and deliver a
programme of action. Chapter V focuses on this important overall
management of the process.
Table 1 below presents a comparison between traditional

approaches and strategic planning and management.
Table 1
Issue Traditional approach Strategic planning and

management
Goal Tackling energy issues Developing a comprehensive
when and where they plan to provide energy
occur, based on their services to society in a
urgency sustainable manner
Driving force Economic growth and Sustainable energy services
crisis management, and for the long-term
the availability of
investment funds
Focus Providing energy to Optimal energy services to
cities and industrial society as a whole
zones
Criteria for Development and Poverty alleviation, social
success expansion of capacity development, and economic
growth, ultimately sustainable
development
Responsibility Governmental agencies Governmental agencies in
partnership with civil society
Types of Regulatory framework, A mix of regulatory
instruments investment policy framework, agreements, fiscal
incentives, user fees, soft
instruments (such as
awareness raising campaigns,
public information)
Technology Technocratic approach Technology is one of the tools
Role of Comply with Engagement > commitment >
society regulations empowerment
Monitoring Law enforcement by Comparing short-term results
the Government with long-term goals on a
regular basis by all actors
Cost Based on availability of Based on long-term self-
management funds (including donor sufficiency of energy services
community)
It is important to note that the presentation of this comparison

deliberately depicts both approaches in their distinct features, in
black versus white. In reality there are many ‘shades of grey’:
approaches that feature elements of both approaches. The purpose
of this table is to help the reader understand the main features of
SPM and how these compare to more traditional approaches to
policy making.
CHAPTER II
STRATEGIC PLANNING
AND MANAGEMENT OF
ENERGY RESOURCES
Chapter II: Strategic planning and management of energy resources 19
II.1 T HE SCOPE OF THIS CHAPTER
This chapter presents an introduction of the use of strategic

planning and management as a methodology to design and
implement a sustainable energy future in the ESCAP region.
Paragraph II.2 gives a short overview of existing experiences with
energy planning in the region, based on material submitted by
ESCAP member countries and a quick scan of open sources.
Paragraph II.3 defines the concept of sustainable management of
energy. Paragraph II.4 focuses on the expected benefits of the
application of the methodology on energy resources management.
Paragraph II.5 contains a short introduction to chapter III, which
presents the guidelines step-by-step in an orderly fashion (although
reality is less orderly).
II.2 EXISTING EXPERIENCES
Strategic planning of energy resources and energy supply is not

new to the region. Many countries in Asia and the Pacific have
developed plans and programmes for energy development, in the
past decade. Some of these countries have done this in the context
of a sustainable development strategy. A growing group of
countries in the region is developing a long-term perspective on
energy services as part of their overall economic plan.
These experiences are very valuable, both for these countries

internally and for other countries in the region. Considering the
interdependencies of economies in several subregions of Asia and
the Pacific (such as ASEAN or Central Asia subregions), planning
in one country also improves predictability of energy policies in
energy supply dependant neighbouring countries.
In a series of recent meetings on these issues (particularly in

preparation of the High-level Regional Meeting on Energy for
Sustainable Development at Bali in November 2000 and in
meetings to discuss the drafts of these guidelines), many countries
in the region presented and submitted national papers indicating
existing experiences. In these guidelines these references have

been used to illustrate the diverse elements of the guidelines on
strategic energy planning and management. Annex II to the
guidelines list these papers.
II.3 SUSTAINABLE MANAGEMENT OF ENERGY
The concept of sustainable management of energy is best described

as the process of planning, providing and financing energy services
to society in a manner that balances the economic, ecological and
social impacts, without jeopardizing the opportunities of future
generations to do the same. It is important to note that this process
is dependent on national circumstances, level of economic
development, availability of energy resources, financial resources
and other factors. Each country will have to decide for itself what
sustainable management of energy means in concrete terms. In
many countries in the Asian and Pacific region the first priority is to
alleviate poverty through the provision of energy services to the
poor. Rural electrification is another area of concern to many
countries.
The approach presented in these guidelines is a toolbox for

Governments to strategically plan sustainable management of
energy. As stated earlier, it is not a blueprint. Application largely is
dependent on the national context, national ambitions, economic
opportunities, energy resource availability and finance. More
important, it is dependent on leadership and vision, based on the
understanding that the enormous challenges that poverty alleviation
and economic prosperity pose to society in terms of long-term
sufficiency of energy inputs. This calls for a long-term energy
policy that puts increasing emphasis on the use of renewable
sources of energy, demand as well as supply-side management and
an optimal efficiency in the generation, distribution and use of
energy.
Chapter II: Strategic planning and management of energy resources 21
II.4 EXPECTED BENEFITS
There are no simple solutions to the sustainable management of

energy resources. As the world turns more complex, the dawning of
a new energy future will depend largely on the interaction of a
growing number of players within one society. It will also depend
on cross-border interaction between countries. Involvement of all
relevant players in all phases of decision-making processes on
energy and related issues will be necessary. Governments continue
to be important, as director of the process, bringing together
stakeholders, setting the stage and facilitating the play. In those
countries where Governments also own and operate the energy
supply side, their role is mixed with being a main player.
Strategic planning of energy resources provides Governments with

an approach to build an energy future in close cooperation with all
relevant players, focusing on long-term benefits in social, economic
and ecological terms. Benefits include:
• A clear sense of direction for 15 to 25 years into the future.
• Commitment of relevant stakeholders.
• Investment security due to long-term arrangements.
• Integral assessment of alternative energy scenarios.
• Cost-effective measures where possible.
• Demand-side and supply-side management.
• Rural electrification as an integral element of the national
plan.
• Provision of energy services to the poor.
• Reduction of negative health impact due to cleaner air.
Obviously, many of these benefits will only be achieved if the

strategy includes these issues in the decision making process. There
are no free lunches: e.g., energy for the poor will need to be
financed one way or another, but as part of an overall package of

energy services for all users, this could be possible.
Those countries in the region that have a surplus of energy, e.g.,
owing to the presence of hydropower or large reserves of energy
resources, will still benefit from a strategic energy resources
management plan. Be it for future purposes or as an export to
neighbouring countries, the energy should be well-managed and
used wisely.
CHAPTER III
THE GUIDELINES
Chapter III: The guidelines 25
Introduction to the guidelines
The guidelines introduced in this chapter are focused on the

strategic planning and management of energy resources for socio-
economic development and environmental protection. Based on
ongoing work under the auspices of ESCAP within the Asian and
Pacific region, the guidelines offer a methodology to the countries
of the region to design an energy future in an open and transparent
manner, working closely with relevant stakeholders. This approach
pushes energy policy beyond wha t is usually possible through the
exclusive application of regulatory instruments.
The guidelines are presented under the following headings:
III.1 Vision
III.2 Driving forces
III.3 Identifying the baseline
III.4 Developing scenarios
III.5 Formulating a strategy
III.6 Formulating an action plan
III.7 Monitoring progress and evaluation
III.8 Adjusting to new information
Although there is a natural order in this sequence, experience shows

that during the planning process there is a constant forward and
backward, cyclic interaction, making the actual process much more
complex than presented in this orderly fashion. The guidelines
should not be seen as a linear process. The whole concept of
strategic planning is very much benefiting from circular motions in
an iterative process (see figure 2 on page 13). For example,
monitoring progress of the plan in the course of its implementation
(see III.7) requires a clearly identified baseline of data in the
reference year (see III.3). Linking the vision (see III.1) to the
strategy (see III.5) to the action plan (see III.6) is a forward-looking
action, but it will benefit from a retrospective analysis to assess

whether all actions (see III.6) are relevant to the vision (see III.1).
Involving stakeholders in the development of the scenarios will

build ownership and thereby enhance the likeliness of broad
commitment to the success of the strategy. Stakeholder involvement
is important at all stages of the process, from vision (see III.1) to
adjustments (see III.8) in the next policy cycle.
The guidelines will only come to full fruition in an open and

transparent atmosphere. Stakeholders from diverse backgrounds
need to feel secure in committing themselves to a result. The
Government needs to be a trustworthy partner, in setting the stage,
in sharing information and communicating to all parties in a
consistent and equal manner. The guidelines do not include specific
directions on external relations with stakeholder organizations, but
these are of paramount importance in bringing the guidelines to
effectiveness.
III.1 VISION
Strategic planning should be based on a vision. Many countries

have set economic and social development goals on the national,
regional and/or local level either through an integrated five-year
plan or through a series of sector-specific plans and programmes.
India for example, integrates the vision on renewable
energy in its main planning cycle. The Indian Government
gave new impetus to renewable energy in its Eight Five-
Year Plan (1992-1997), by promoting commercialization
through the private sector, rather than increased public
investment. This was followed by a new Strategy and
Action Plan in 1993.6
6 Somit Dasgupta, 2000. “Sustainable development in India”, presented at the Ad

Hoc Expert Group Meeting on Strategic Planning towards a Sustainable Energy
Future: Policy Options, Barriers and Action Plan, ESCAP, Bangkok, 18-20 September
2000.
Economic growth and social well-being require a vast amount of

energy resources. Many countries have access to domestic sources
of fossil fuel (such as oil, gas and coal), or to hydropower or
biomass, while others depend largely on energy imports.
Energy is an important driver for economic growth. The energy

vision needs to contribute to the national social and economic
development goals. It can be very instrumental in creating
confidence with possible investors, who would like to know what
the Government’s long-term ambitions mean in terms of private
sector involvement.
A vision should look well into the future, preferably 20 to 30 years.

The Philippine Energy Plan 2002-2011 outlines the energy
sector’s blueprint in support of the thrust of the Arroyo
administration of balanced economic growth, a robust
market-based industry and poverty alleviation through
social equity and good governance. The plan provides a
ten-year perspective of the country’s energy sector amidst
the structural reforms that are swiftly transforming the
Philippine economy. Interestingly, this ten-year plan is
written in support of the national aspirations as embodied
in the Medium-Term Philippine Development Plan 2001-
2004.7
Net exporters of energy resources should have a vision on short-

term cash versus long-term availability of resources. Net importers
of energy resources should have a vision on the long-term
dependency on other countries or the private sector.
The vision typically contains at least the following elements:
7
Philippine Energy Plan 2002-2011, Department of Energy, Manila, 2001.
• Energy demand to match economic and social

development goals
• Availability of domestic financial resources (user
pays principle or other)
• Prospects for renewable energy resources
• Prospects for technological improvements in
conversion, transmission and distribution
• Geographic relation between energy production and
energy consumption
• Priority areas for energy supply (residential as well as
industrial/commercial; including energy for the poor
and rural electrification)
• Dependency on and security of foreign sources
(ODA, DFI)
Cambodia’s power sector development policy (1994)

contains elements of this vision, among others: to provide
an adequate supply of energy throughout Cambodia at
reasonable and affordable prices, ensure reliable, secure
electricity supply at prices, which facilitate investment in
Cambodia and development of the national economy,
encourage the exploration and environmentally and
socially acceptable development of energy resources
needed for supply to all sectors of the economy. The policy
also calls for encouragement of the efficient use of energy
and to minimize detrimental environmental effects
resulting from energy supply and use. The Cambodia
Power Sector Strategy 1999-2016 translates these elements
in a practical approach, cognizant of the fact that the vision
will take many years to mature.8
8
Khlaut Randy, 2000. “Cambodia country paper”, presented at the Ad Hoc Expert
Group Meeting on Strategic Planning towards a Sustainable Energy Future: Policy
Options, Barriers and Action Plan, ESCAP, Bangkok, 18-20 September 2000.
Each element should be seen in a time dimension (developments

over 20-30 years). For some elements sub-national differences are
relevant to note and should be given particular attention. The most
notable of these differences is rural versus urban energy supply.
The vision should not be restricted to energy. Other relevant issues

should include:
• Economic aspects such as energy pricing

• Environmental consequences all sources of energy
• Health issues related to air pollution
• Risk management of the whole energy system
• Societal costs of energy production
The Philippine Government has stated that energy should

not only be produced and used in a manner that advocates
sustainable development and utilization of natural
resources, but should also maintain the country’s overall
economic competitiveness. Its major goal for the coming
years is to promote further use of clean and indigenous
energy sources to attain self-sufficiency, accelerate rural
electrification, and continue deregulation, liberalization and
privatization of the energy sector for efficiency. 9
As stated before, it is the combined economic, environmental and

social impact of energy use that defines a sustainable energy future.
For some countries in the ESCAP region, such as small island
developing States that fear the dramatic consequences of sea-level
rise on their islands, this has already led to a vision on a sustainable
energy future.
9
Alfredo R. Rosal, 2001. “Country paper for the Philippines”, presented at the Ad
Hoc Expert Group Meeting to Review the Draft Guidelines on Strategic Planning and
Management of Natural Resources Development, ESCAP, Bangkok, 18-20 June 2001.
Fiji, for example, has formulated the goal of the

Department of Energy’s National Development Plan 2000-
2004 as follows: ‘to facilitate a resource efficient, cost
effective and environmentally sustainable energy sector in
Fiji’. 10
There are several ways to formulate a vision. Traditionally, it has

been in the form of a political statement. It might also be based on
analytical preparatory work of national experts, sometimes with the
help of the international community (such as the World Bank,
Asian Development Bank and bilateral donor agencies), prepared as
a part of the integrated plan or as a self-standing document.
The first Netherlands Environmental Policy Plan (1989)
was based on a research study of the Dutch National
Institute for Public Health and the Environment, titled
Concern for Tomorrow (1988). The study assessed the
status of the national environment and presented three
scenarios for future environmental policy to combat
pollution. The Canadian Green Plan (1991) was based on a
voluminous Canadian State of the Environment report,
indicating both pollution issues and loss of biodiversity.
Other approaches could be to develop a vision through a system of

consultations with different stakeholders, creating a wider platform
for approval than the current Government. Shared responsibility
with other stakeholders is certainly an important aspect of strategic
planning. In particular, the electricity production companies and
large users of energy in the country should be involved in order to
warrant success for the vision. Widespread public consultation will
not always be successful: in many cases the public wants the
Government and/or the political leaders to have an opinion, a
vision. The public would like to react to that vision, not constitute
it.
10
Avinesh Narayan, 2001. “Country paper for Fiji Islands”, presented at the Ad Hoc
Expert Group Meeting to Review the Draft Guidelines on Strategic Planning and
The vision may contain quantitative goals, targets in terms of

energy resource development and use, or in terms of dependency on
foreign resources, or in terms of fuel mix. This obviously requires a
certain amount of data collection and interpretation of future energy
demands. See paragraph III.3 Identifying the baseline.
An important aspect of a vision is realism. The vision should be

optimistic and sketch a positive picture, but nevertheless it should
be realistic. It may be ambitious as long as the timeframe allowed
for the achievement of the vision is realistic.
III.2 DRIV ING FORCES
For any strategic planning process it is important to understand the

underlying driving forces. What makes energy demand grow? The
vision on the long-term energy resource planning and management
should preferably be based on the understanding of the complexity
of economic, social, demographic and political drivers.
Viet Nam sees its energy policy very much as one of the
pillars of its overall national socio-economic development.
For the next 20 years this development should promote
modernization and industrialization, while setting up an
equitable and civilized society. Specifically, this
development should (a) stabilize macroeconomics in order
to propel the growth quickly and firmly, (b) change the
economic structure through the increase of industry and
service, and (c) intensify family planning and decrease
population growth. The new policy calls for substantial
demand to promote productive use of electricity, and the
installation of 6 thermal power plants and 19 hydropower
plants. 11
11
Nguyen Van Huong, 2001. “Development in energy sector of Vie t Nam”,
presented at the Ad Hoc Expert Group Meeting to Review the Draft Guidelines on
Strategic Planning and Management of Natural Resources Development, ESCAP,
Bangkok, 18-20 June 2001.
There is a strong relation between driving forces and the vision

(III.1). In the application of these guidelines the two steps will go
hand-in-hand. Identifying driving forces and understanding their
effect will be fruitful in the visionary stage of the process. On the
other hand the vision (to a large extent the political idea about a
sustainable energy future) will indicate which developments are
driving forces and which are not. Going through a cyclical
movement between these two steps will enrich the quality of both
outputs: the vision and the driving forces.
Understanding driving forces requires some level of scientific

preparatory work, in cooperation with leading institutes in a multi-
disciplinary approach. Many of the driving forces influence each
other, which makes the analysis rather complex. Scientific
consensus on the conclusions would be very helpful, but may not
always prove to be a possibility. In the end, the Government and its
political leadership needs to decide on the way forward, applying its
best judgement on the analysis. Where science is inconclusive, the
precautionary principle, as stated in the Rio-principles, may provide
guidance on a sustainable future.
The Rio-principles are embedded in the Rio Declaration on
Environment and Development, concluded at the United
Nations Conference on Environment and Development,
held in Rio de Janeiro, Brazil, in 1992. The 27 principles
provide guidance to the world community as well as to
individual countries on the road of sustainable
development. Principle 15 states the precautionary
principle: ‘Where there are threats of serious or irreversible
damage, lack of full scientific certainty shall not be used as
a reason for postponing cost-effective measures to prevent
environmental degradation’.
Other important principles, relevant to energy resource

management are:
- Principle 2: States have, in accordance with the Charter

of the United Nations and the principles of international
law, the sovereign right to exploit their own resources
pursuant to their own environmental and developmental

policies, and the responsibility to ensure that activities
within their jurisdiction or control do not cause damage
to the environment of other States or of areas beyond
the limits of national jurisdiction.
- Principle 3: the right to development must be fulfilled

so as to equitably meet developmental and
environmental needs of present and future generations.
- Principle 9: States should cooperate to strengthen

endogenous capacity-building for sustainable
development by improving scientific understanding
through exchanges of scientific and technological
knowledge, and by enhancing the development,
adaptation, diffusion and transfer of technologies,
including new and innovative technologies.
- Principle 17: environmental impact assessment, as a

national instrument, shall be undertaken for proposed
activities that are likely to have a significant adverse
impact on the environment and are subject to a decision
of a competent national authority.
Each of the driving forces may have a time dimension (a trend) as

well as subnational deviations. Proper understanding of these trends
and deviations (e.g., between rural and urban regions) requires
some statistical data on economic, social and demographic
developments. These data will also be useful for the identification
of the baseline and for the scenario development, in the planning
process.
An interesting example of a important driver is the
regulation through OPEC production quota. The annual
level of oil production of the Islamic Republic of Iran is
determined by OPEC agreements rather than by domestic
production constraints. This means that the exportable
surplus of oil is determined (at least in the short run) by the
difference between production quota and domestic
demand. The reduction of domestic oil consumption
through energy savings and fuel substitution has become
the most important policy objective of Iranian energy

policy as it increases the oil exports and thus the national
income.12
It is important to distinguish between manageable and autonomous

developments in driving forces. What is manageable and what is
not, to some extent depends on the country, its power, its economic
opportunities, and its culture. For example, demographic
developments like population growth and migration between rural
and urban areas are valued differently in countries in the region.
Autonomous developments (e.g., technological developments,
societal perception), basically happen outside the control of the
Government.
India has a National Population Policy formulated in an
Action Plan (2000). Whether it will be successful or not,
energy demand for domestic use in urban as well as rural
areas will rise, facing the country with a huge challenge.
Thousands of Indian villages may not be provided with
energy from the grid in the next 20 years, continuing a
situation of energy poverty for many years in the future. 13
In response to this challenge, India is now planning to
prepare a vision for 2012 to narrow the gap between
energy demand and supply.
12
Mohsen Bakhtiar, 2000. “Energy situation and strategic planning towards
sustainable energy development in the Islamic Republic of Iran, 2000”, presented at
the Ad Hoc Expert Group Meeting on Strategic Planning towards a Sustainable Energy
2000.
13
Pradeep Chaturvedi, 2000. “Sustainable energy supply in India”, presented at the
Ad Hoc Expert Group Meeting on Strategic Planning towards a Sustainable Energy
2000.
Here are some examples of driving forces:
Economic Population growth Urbanization Industrialization

growth
International Ratification of Emergency Price

economic international preparedness development on
developments agreements the resource
market
Need for hard Loan conditions Pressure from Technology

currency for donor private investment breakthrough
money/loans interest
It is important to decide whether -in the context of the country-

these examples are:
(a) applicable;
(b) autonomous or manageable.
III.3 IDENTIFYING THE BASELINE
The most successful examples of the application of strategic

planning in the world have had some sort of identification of the
baseline as the starting point of the process. The baseline is defined
as the national energy situation at the start of the process.
At a minimum, the baseline should include all aspects of the goals

and targets expressed in the vision. In order to be able to monitor
progress, the quantification of goals on the basis of a baseline is an
important precondition.
For strategic planning of a sustainable energy future, the baseline

would preferably include the following items:
• Energy use per capita in the base year and expected

trend towards the target year
• Energy demand in absolute terms per type of resource
in the base year and expected trend per type
• Net import/export in the base year
• Sectoral energy demand in the base year and target
years
• Energy intensity of the economy
• Expected reserve of domestic energy resources
(including lifetime of generating facilities) at the end
of the planning period
• Extend to which energy subsidies obscures potential
for energy saving.
Additionally, it could include important side items like:
• Health effects
• CO 2 and other emissions
• Number of people not having access to energy
services
• Number of motorized vehicles
• Average fuel use in motorized vehicles
It goes without saying that this calls for a systematic collection of

data relating to energy production and consumption, demographics,
socio-economic developments, etc. These data need to be processed
in databases, to be developed and maintained in close cooperation
between Governments, research institutes and relevant
stakeholders. Where national data are missing, one should start
collecting these, provided the data are relevant to the strategy.
Fiji collected data on energy in a systematic order in the

early 90’s. Energy Statistics Yearbooks contained
historical data series back into the 80s. Unfortunately,
shortage of staff and time constraints caused the end of the
yearbooks in 1993. Nevertheless data collection continued
and provides Fiji today with many insights in its energy
use and options, including potential development
opportunities for hydro, wind and wave power. 14
III.4 DEVELOPING SCENARIOS
From the vision and the knowledge about the driving forces and the
situation in the base year, the next step in the strategic planning
process will be the development of alternative scenarios for a
sustainable energy future. A scenario calculates the effects of a
certain policy on a given goal. Different scenarios take alternative
policies, very often differentiated in levels of ambition.
Alternative scenarios can be elaborated in different directions.

Quite common is the development of the following:
• A business-as-usual scenario
In which the existing trends and regulatory framework are
not changed.
• A technical possibility scenario
In which the current state of energy technology would be
applied across the country, to its maximum potential, using
regulatory or other instruments.
• A sustainability scenario
In which the expected long-term results taking into account
social and environmental dimensions, are calculated back
to what needs to be achieved by certain intermediate dates,
through a programme that includes further research,
funding and actions.
14
Makereta Sauturaga, 2000. A similar situation exists in Tonga, although the
renewable energy mix is slightly different.
Other sets of scenarios could be imagined, such as a set based on

different assumptions on economic growth (and thus energy
demand). Scenario calculations could be performed on the basis of
a national model, where necessary with the help of experiences
drawn from developed countries.
India has used scenarios in its policy development for the

import of primary energy. In 1999, the Planning
Commission defined three scenarios:
(a) Business as usual;
(b) Accelerated hydropower development (5 per cent
increase in share of hydro in total installed generation
capacity);
(c) Savings of 10 per cent in domestic electricity and oil
consumption.
India also performs sensitivity analysis on these
calculations. 15
It is important to note that most countries around the Asian and

Pacific region have some form of scenario building, mostly based
on assumptions of economic growth. A common approach is to
choose for an optimistic and a pessimistic assumption of economic
growth. These scenarios are generally formulated in terms of
necessary increases in installed capacity of energy production, in
networks to distribute electricity to end-points and in increased
exploitation of existing resources. In the latter case, it is also
feasible to develop resource based scenarios.
III.5 FORMULATING A STRATEGY
The main challenge of strategic planning of a sustainable energy

future lies in the strategy formulation itself. Having the vision and
the scenarios and understanding the drivers, the real work is yet to
15
Pradeep Chaturvedi, op. cit.
come. A strategy sets out the way forward, both in terms of

substance and process. It is the core of the whole SPM approach.
Substance
A strategy translates the vision in realistic targets for energy

generation, energy use, import/export, and the evolution towards a
sustainable energy future. Preferably the strategy addresses all
aspects of the energy policy, i.e., the aspects that need to be
changed or phased out as well as the aspects that need to be
maintained. The strategy is the overarching document on which the
action plan (see III.6) will be based.
The strategy takes a long-term view, at least 15 years in the future,

to be divided in intervals of four or five years. Where applicable
this interval will be identical to existing planning procedures in the
country. The strategy defines the changes to be made in those years,
both for the long-term and the short-term intermediate steps. As
stated before, these changes are preferably defined as quantitative
targets, e.g., required change in megawatt per fuel type as compared
to the base year.
India defined an energy strategy in its Ninth Five-Year
Plan (1997-2002), with a short-term, medium term and
long-term strategy, clearly prioritising in a situation where
needs and means need to be balanced over time.16 Fiji has
a system of five-year national development plans and
three-year corporate plans for the Department of Energy.
The latter is based on a regular assessment of the desired
focus of the Department, combining internal assessment
within the Department of Energy, external analysis of
other concerned departments and political analysis. 17
16
Pradeep Chaturvedi, 2000, op. cit.
17
The strategy sets out the specific responsibilities of every

stakeholder, including the Government at all levels, in a transparent
and open manner. This will provide for clarity about every
stakeholder’s contribution to the overall solution of the problems.
The strategy outlines the results to be achieved by stakeholders, not

necessarily the methods to get to the results. Effective strategic
management of a sustainable energy future may benefit from a
result management approach. There will be freedom (within the
existing regulatory framework) to choose the method as well as the
time plan, as long as the targets are met in the long-term.
Obviously, sufficient progress must be shown along the way (at the
intermediate steps). This will provide the stakeholders with an
opportunity to react in a cost-effective manner, choosing options
and timetables that match their own investment cycles and budgets.
It does call for a level playing field for the stakeholders in order to
prevent distorting market situations. In many countries in the region
this will require amendments to existing legislation that regulate
public sector monopolies. More coverage on stakeholders is
available in Chapter IV.
Examples of these targets include:

• Increasing the energy-efficiency of housing through local
government targets.
• Reducing the SO 2 emissions of power plants through
power company targets.
• Distributing investment costs in rural areas between
government and energy production and distribution
companies.
• Changing to (for example) a certain percentage of
renewable energy sources by the end of the strategy period
through a general target for every target group.
The strategy will indicate the back-up plan: what will happen if the
results are insufficient to meet the targets of the strategy. This could
lead to setting additional measures to be taken. It could also include
evidencing targets for additional stakeholders, not present in the
original plan. It could be punitive in nature, if a stakeholder has not
succeeded in achieving a reasonable portion of its overall goal.
The strategy also needs to outline the necessary legal and

institutional arrangements for the future of the energy market. With
continued liberalization of the energy market and volatile energy
prices owing to an unpredictable oil market, it will not be easy to
organize the marketplace in an effective manner. National
circumstances around the Asian and Pacific region vary too widely
for any conclusive general guidance in this matter. This poses a
great challenge to Governments in the region, because formulating
the strategy requires decisions on legal and institutional issues.
In countries in the region institutional development on
energy issues has been an important issue. Already in
1992, the Indian Government established a special
Ministry of Non-conventional Energy Sources, primarily
to give the existing department of the same name within
the Ministry of Energy more autonomy in decision-making
and resource allocation. 18
A specific aspect of the institutional arrangement is a decision to be

taken on the use of investment funds generated through the Clean
Development Mechanism under the United Nations Framework
Convention on Climate Change. Beyond the political problems
related to the use of this flexible instrument under the Kyoto
Protocol, lies an interesting opportunity to transfer innovative
energy technology (renewable and other) from developed to
developing countries. This could be technology to lower the
18
Somit Dasgupta, 2000. “Sustainable development in India”, presented at the Ad
Hoc Expert Group Meeting on Strategic Planning towards a Sustainable Energy
2000.
emissions of CO 2 or other greenhouse gasses but could also be fuel

switching in power generation. Several countries in the region are
currently studying advantages and disadvantages of participation in
the Clean Development Mechanism, on the basis of the outcome of
the seventh Conference of the Parties of the Framework
Convention; November 2001, Morocco. The World Bank, the Asian
Development Bank and other international financial institutions and
the donor community are also looking at the prospects of this
mechanism from their specific perspective.
Process
The strategy is as much a process as it is a plan. Working together

with producers, distributors, corporate and individual users,
Governments at different levels and stakeholder organizations, the
strategy comes alive. It is this interaction between the players in a
reiterative process which is as relevant to the success of the strategy
as the plan itself.
In large countries (such as China and India) the relevance
of Government at the regional, provincial and state levels
is very high. Although energy policy is to a la rge extent a
national issue, subnational governments have a large
influence on decision-making processes. Indian State
governments provide matching funds for the installation of
power plants, have an important role in infrastructure
development and are gradually moving towards policies
for non-conventional energy based power generation. 19
Reflecting on the mission statement for sustainable energy

development (see the introduction) ‘…. enhancing the capacity of
concerned stakeholders…’, it is very clear that ultimately the
concerted actions by individual stakeholders will have to bring
about the desired results. Governments need to focus their attention
19
Arun K. Tripathi, 2001. “Strategic planning and management of natural resources
development for energy sector in India”, presented at the Ad Hoc Expert Group
Meeting to Review the Draft Guidelines on Strategic Planning and Management of
Natural Resources Development, ESCAP, Bangkok, 18-20 June 2001.
on this enhancement of the stakeholders and for that purpose create

a process of interaction, involvement and ultimately commitment of
the stakeholders to the implementation of the strategy, the vision.
This accounts for two important items in these SPM-guidelines:
involving stakeholders (see chapter IV) and managing the process
(see chapter V).
III.6 FORMULATING AN ACTION PLAN
The action plan is the translation of the strategy to the level of

individual activities or tasks. Every action to be taken by the
initiating agency in order to implement the strategy, to promote the
achievement of results by stakeholders, to manage the process, to
monitor progress, and so on, needs to be included in the action plan.
It is the main management tool for the initiating agency during the
implementation of the strategy. The action plan may also include
the actions of other agencies, private companies, and other
stakeholders.
The action plan specifies the following information for every

action:
• Clear description of the action

• Time frame for the execution of the action
• Organization responsible for the execution of the
action
• Individual who is in charge of execution of the action
• Means of implementation of the action (budget, tools)
The action plan could be divided in several sections dealing with a

cluster of activities. A cluster manager would oversee the cluster
and report on progress to the overall action plan manager within the
initiating agency. Such a cluster would have a common
denominator, like a specific resource (oil, gas,…) or a specific
target (rural electrification, import power, …). Preferably a cluster

combines tasks within the responsibility of one agency, as this
allows for easier management of the cluster. However, there is
definitely some merit in keeping related issues in one cluster of
activities in the action plan, in order to assess better any reciprocal
effects of different activities.
In many of the countries in the region an action plan has
been prepared and subsequently implemented. In many
cases this action plan is not based on a vision and/or a
strategy, but it is a document that contains a whole range
of actions for a specific period (1-5 years). In most cases
actions are energy resource-specific, region-specific, or
organization-specific. The main purpose of existing plans
in the region is to meet necessary demand load with
enough installed capacity by a certain deadline, to boost
economic development, rural electrification and/or the
international trade balance.
However, there is a growing group of countries in the
Asian and Pacific region that has national plans embedded
in wider strategy. A good example is the Fiji Department
corporate plan (three-year action plan) as implementation
scheme for the five-year national development plans. The
corporate plan has annual implementation plans that
specify goals, timeframes, budget and management
aspects. 20
One particular form of this clustering is target group management,

in which the initiating agency dedicates a senior staff member to be
the spokesperson/negotiator towards a specific group of industries
or utilities. All issues relating to the contribution of that group to
the success of the implementation of the strategy are discussed
between that group and the target group manager. The target group
manager reports back to the overall manager of the strategy, within
the initiating agency.
20
The management system around the first Netherlands

Environmental Policy Plan (1989) introduced target group
management to provide industrial sectors with a dedicated
civil servant. All communication to the target group was
handled by the manager. Internally, the manager oversaw
all ongoing activities that might have an effect on his target
group, allowing him to point to any inconsistencies in the
government approach to the sector and look for a balanced
approach of the sector. One of the main aspects of this role
was the ability to work with industry in maximizing the
environmental impact of the invested dollar. Although the
system had its flaws, the overall assessment of this
management approach was quite favourable, both in the
eyes of the Government and in the eyes of the sector.
Not every topic is easily embedded in a cluster approach. Some

cross-cutting elements, such as environmental protection, public
health or gender issues, may influence every cluster. Government
agencies responsible for these elements should be allowed to review
and comment on planned activities in advance and assure that the
undertaken actions are in line with government policies in these
fields. Environmental impact assessment, gender meanstreaming
and/or social impact assessments are some tools to be used in these
cross-cutting reviews.
III.7 MONITORING PROGRESS AND EVALUATION
The main purpose of monitoring as an integral element of strategic

planning is to ensure that the activities of all stakeholders relevant
to the success of the sustainable energy future plan are being
executed and result in the desired outcome. This feedback
mechanism makes progress (or lack of it) visible. It is important to
pass on the information to all stakeholders, as it will tell them too
how they are doing (e.g., compared to other stakeholders). It will
enable them as well as the managing agency to adjust their policies
or take new actions that contribute to the overall goal.
There are many ways to monitor progress. A few of the most

commonly used are:
• Statistical information collection and dissemination

on energy generation, use, import and export,
intensity, etc., by the statistical bureau
• Qualitative study based on a questionnaire by a
scientific organization or consultant
• Inspection or supervision by a separate government
agency
• Use of indicators
The latter option has become quite fashionable during the nineties,
but restraints on funds to gather and process data have been
hampering progress in many countries in the Asian and Pacific
region. Still, with continued support from international
organizations such as ESCAP and IAEA and the United Nations
Department of Economic and Social Affairs, further development
of a set of key indicators, relevant to sustainable use of energy, may
prove to be beneficial to the region in understanding progress in the
field of energy management.
Depending on the goals of the vision and the strategy, the initiating
agency may define a set of indicators at the start of the project and
report on them on an annual basis from the second year of the
implementation of the project. Here are some suggestions for
indicators for a sustainable energy future:
• Share of non-fossil fuel in total energy generation.
• Share of non-renewables in energy resources.
• CO 2 emissions as a function of economic growth.
• Accessibility of energy resources (e.g., to the poor).
• Affordability of energy services.
• Net energy trade balance.
Additional ideas on indicators can be found in the indicator sets of

IAEA and the Commission on Sustainable Development
respectively. The work of that Commission is under development
and can be followed on the Internet: http://www.un.org/esa/sustdev.
It is clear that a strategy with quantitative targets will provide a

clear reference for periodic comparison with indicator results. This
will make progress quite transparent, which is a deliberate choice
within strategic planning and management.
At the same time, lack of progress will also be visible. For this
reason many managing agencies are careful with the distribution of
these figures. Experience shows that negative results often become
a driving force for further and increased activities to meet the
targets. It takes courage to show these data but they are an
important factor in the enga gement of stakeholders and in the
communication to the general public.
The results of the monitoring exercise will provide the initiating

agency with the important data and information to evaluate the
progress in the course of the planning cycle. In the evaluation of
this material it may become obvious that certain policies,
instruments and process arrangements need to be changed. This
insight moves the process forward in a new cycle, towards an
adjustment of the strategy or the plan.
III.8 ADJUSTING TO NEW INFORMATION
It has been stated before: strategic planning is not a one-time event,

it is a continuous process. New information, new insights,
monitoring progress, new stakeholders and new alliances between
stakeholders, all indicate a system of continued renewal and
evaluation. Even if the plan is on track, new energy demands may
require revision of existing scenarios and additional measures.
Some other examples are structural reforms, technological
developments and availability of funds from the Clean
Development Mechanism.
The initiating agency, in its capacity as the overall manager of the

process, should regularly take a few steps back to look at the
implementation of the strategy from a further distance. This will be
helpful in understanding the bigger picture, as energy is an integral
function of society and is driven by factors other than energy policy
alone. It may be helpful to call upon external parties to assess the
state-of-the-strategy on a regular basis and to report on its viability
for the future.
An important aspect of this could be the energy dependency on one

or more countries. There could also be other dependencies. Any
problem outside the control of the managing agency poses a clear
and direct threat to the success of the strategy. Some examples are:
• Energy import not keeping up with domestic growth in
energy demand.
• Acidification policy results will be compensated by
increased import of emissions from neighbouring countries.
• Risk reduction by closing down old nuclear facilities will
be compensated by border region establishment of new
facilities.
New inputs require adjustments, making the strategy dynamic, or

turning the plan into a process of continuous improvement. It is
very important to think about the sustainable energy future as a
work-in-progress. New written versions of the strategy will be
required on a periodic basis, perhaps every five years, but the
strategic process needs to be a continuum.
CHAPTER VI
MODEL VARIANTS
Chapter IV: Stakeholders’ involvement 51
Introduction
A stakeholder is any organization or individual which may affect or

may be affected by the issue under consideration. A stakeholder is
involved in the origin and/or the solution of a problem. This
involvement will be or can be caused by a decision or the absence
of a decision. When applied to energy resource management, it is
easily understood that almost everybody has an interest in energy. It
is important to identify who are the key stakeholders, i.e., who
among all stakeholders should be addressed as partners in a
strategic process. With these key stakeholders the initiating agency
will look for long-term mutual benefits.
To date, energy policy is seldom developed in close cooperation

with stakeholders other than different ministries and a relatively
small group of private sector parties that produce energy out of
renewable or non-renewable resources or have a role in the chain of
production-distribution-supply.
In most of the country presentations listed in annex II,
stakeholder participation seems to be limited to a broad
range of national ministries, lower government authorities
and the privatized entities in the electricity chain. In
hydropower development, which is often paid for through
international financial institutions such as the World Bank
and the Asian Development Bank, stakeholder
involvement is a condition for appropriation of funds. A
notable example that frequently occurs is hydropower
development, which regularly comes with resettlement
owing to flooding of habitat.
Involving relevant stakeholders throughout the strategic planning
process is very important to broaden the support for policy and
activities, to avoid conflicts and to generate as much support as
possible for the implementation of the plan over time. Experiences
around the Asia and Pacific region show increasing stakeholder
participation, notably of the private sector and non-governmental
organizations. The rest of civil society is less involved in many
countries in the region but is keen on getting involved. The
importance of participatory processes is generally well understood,

but traditional administrative and political processes are reluctant to
open up policy development and decision-making to a wider, but
more unfamiliar (and perhaps less manageable) public.
ESCAP has developed guidelines for stakeholders involvement

(GSI) in environmental decision making in 1999/2000 as a tool for
the countries in the Asian and Pacific region. The guidelines are
generally applicable and provide a basis for further elaboration in
the guidelines on strategic planning and management of energy
resources. 21 The guidelines list the added value of stakeholder
involvement, including:
(a) Policy will benefit from a wider field of expertise and
creativity;
(b) Relationships will be based upon mutual trust and
recognition;
(c) An expected wider range of policy options to choose
from, leading to more sustainable outcomes;
(d) Short-term costs of involvement are outweighed by long-
term benefits of fair and lasting solutions;
(e) More cost-effective solutions and predictable policy
outcomes;
(f) Less monitoring costs and risk of failure.
The principles of stakeholders’ involvement as embedded in the

participatory approach that is advocated as an essential element of
strategic energy resources management and planning calls for a
wider group of interests. Countries are encouraged to engage all
interested parties in the development and implementation of energy
policy. GSI provides a helpful framework for the first stages of this
engagement.
21
The reference toolkit in the GSI provides important background reading on
stakeholder involvement. Furthermore ‘Strategies for national sustainable
development’, IUCN and IIED, 1994, is a very helpful handbook on this issue.
In the following paragraphs the different tasks are presented in a

three-stage approach:
• Getting started (stage 1)
• Working together (stage 2)
• Ensuring progress (stage 3).
IV.1 S TAGE 1, TASK 1 D EVELOPING A CLEAR MISSION, A

STAKEHOLDERS’ STRATEGY
It is important to strategize stakeholders’ involvement. There needs

to be an agenda on the side of the initiating agency. This agenda
comprises a clear view on the role, responsibility and possibilities
of each of the stakeholders. The agenda is basically for internal use
by the initiating agency only. The agenda provides answers to such
questions as:
• What is the problem or issue?
• What is the organization’s contribution to the problem?
• What is the organization’s contribution to the solution?
• How well does the organization represent its stake
(credibility issue, level of representation, power base)?
• Is the organization prepared to negotiate with other
stakeholder organizations in order to build consensus?
• What do we need from this organization?
• What can be offered to this organization?
Such a strategy may also address the issue of stakeholders’

management. This is merely a tool to manage a wide variety of
stakeholders around one complex issue. It may include a ranking of
importance among the stakeholders. It may also include a
systematic approach towards managing contacts with each
organization: all communications with a specific organization are
channelled through one person, the liaison officer, who needs to
build a relationship of confidence with that organization. It is

helpful (for internal purposes) to define the answers to these
questions as a clear mission statement.
IV.2 S TAGE 1, TASK 2 IDENTIFYING THE STAKEHOLDERS
On the basis of the vision, the strategy and the insights in the
driving forces of energy supply and demand as well as the mission
statement on stakeholder involvement, the initiating Government
should be able to identify the stakeholders. This may include the
following organizations:
• Government departments outside the initiating ministry or
agency, such as planning, finance, environment, health,
forestry, economy and trade, foreign affairs.
• Energy industry, ranging from exploration and exploitation
of oil wells, distribution, storage, to transmission
operations.
• Energy users, from individual energy-intensive corporation
(ore processing, refineries, chemical industry) to energy
generation plants.
• Local governments, on provincial/state/regional level as
well as local level, in particular in relation to rural
electrification.
• Scientific community, making good use of domestic
academic capability in scientific research, planning and
applied technology.
• Organizations representing specific interests in civil
society, such as consumer associations, and organizations
for social development, indigenous peoples, biological
diversity, nature conservation, environmental protection
and equality for women or minorities.
Table 2 below provides an indication of possible involvement of

certain stakeholders in the course of the process. It is stressed that is
this only one way of looking at levels of involvement. The initiating
agency should assess the level of involvement for each issue under
consideration in the national setting.
Table 2. Possible level of involvement of stakeholders

Stakeholder Strategy Action plan Implement Monitoring Adjustment
formulation formulation activities
Energy - B A A -
service
providers
Government
agencies
- National A A A A A
- Local C B A B C
Financial C B B C C
Institutions
Utilities - B A A -
Consumers
- commercial C C B - -
- residential C C B - -
Technology, B C - B C
R&D,
Academia
NGOs B B - B B
A: High involvement (co-production, development of part of the work, high self-
interest)
B: Medium involvement (input at request, low self- induced action)
C: Low invo lvement (reacting to documents, no self-induced action).
IV.3 S TAGE 2,
TASK 1 E STABLISH EFFECTIVE TWO -WAY
COMMUNICATION
Being transparent, open and clear
Having identified the stakeholder organizations relevant to the

energy strategy and having clarified the internal agenda on what to
expect of each of them, it is necessary to communicate the goals,

rules and fall-back positions of involvement. The stakeholders do
need to know what is expected from them in the process of defining
the sustainable energy strategy, not only at the start, but also in the
course of the planning process. This calls for an effective two-way
communication system and a transparent organization of work.
Transparency is a key feature of strategic energy resources
management and planning. Responsibilities need to be clearly set,
defined and understood by those to be involved.
Specific attention should be paid to the rules of the game, the

method of working together towards a sustainable energy future.
Many stakeholder involvement actions do not provide the expected
results because organizations drop out after negative experiences,
lack of trust or confidence in the process, in other players, or worst,
in the initiating agency. An important factor in this matter is the
creation of an enabling environment, where organizations have a
clear understanding of their role, the opportunities as well as the
pitfalls of cooperation and the possible outcomes. It is important to
understand that these outcomes do not necessarily meet the
expectations of all parties in the process.
IV.4 S TAGE 2, TASK 2 D EVELOP OPTIONS FOR MUTUAL GAIN
Preferably, stakeholder involvement creates gains for all parties in

the process, i.e., everyone gets benefits, more than if they had not
taken part in the process. These so-called win-win situations are not
always possible, but stakeholders may still feel better about their
role inside the process than outside, if the final result is positive to
sustainable development of their country or region. Therefore, a
win-win situation may arise from the production of collective gains
for all stakeholders combined, rather than individual gains for each
stakeholder.
It is important to engage in partnership with the stakeholders,

identifying options and defining the playing field. Sometimes the
playing field needs to be enlarged to acquire more options for
negotiation and trade-off. Sometimes compensatory measures may

be found in another field than sustainable energy management, for
example in new economic opportunities for resettled inhabitants of
a future hydropower basin.
Close engagement may turn into conflicts, either of interests or

between persons. Managing these conflicts is a key feature of
stakeholder involvement, particularly in problematic situations of
limited options, limitations in negotiation space, or otherwise.
IV.5 S TAGE 2, TASK 3 AGREED CRITERIA FOR COMPARING POLICY

OPTIONS
Focusing on agreed criteria will help move stakeholders away from

their stated positions. The initiating agency can produce a
preliminary list of criteria for discussion among the relevant
stakeholders, opening the list for further submissions. In a process
of negotiations the group of diverse stakeholders is to agree on a list
of criteria for comparison of policy options, regardless of their
opinion of the actual energy policy.
If agreement is not reached, the initiating agency may wish to call

upon outsiders, like research institutes or foreign experts, to assist
in drawing up a list of criteria for comparison of options. In this
case, the different stakeholders may be asked to provide names for
these experts.
IV.6 S TAGE 3, TASK 1 D ISSEMINATING INFORMATION THROUGH

THE MEDIA AND OTHER NETWORKS
The use of public media such as newspapers, television, radio and

the Internet targets the general public. Providing these media with
information on energy policy and in particular on measures that
affect their daily lives, such as rural electrification schemes,
gasoline pricing and urban air pollution measures, can generate
public support. This is critical to the success of these policies.
Different cultures have different relations with the press; in some

countries or regions, other means of disseminating information may
prove to be more appropriate.
Information should first be used to raise awareness about an issue

under consideration. Second, it may influence thinking about the
policy. Effective use of dissemination of information has proven to
be a powerful instrument of government policy, but it needs to be
carefully managed.
IV.7 S TAGE 3, TASK 2 PLAN FOR MONITORING AND REVIEW
Although monitoring is an integral part of the guidelines on

strategic energy management and planning (see chapter III.7), there
is also a need for monitoring and review within stakeholder
involvement. The essence lies in the shared responsibility for
monitoring activities. All involved should contribute to and be kept
informed about each others progress in the implementation of
policies, on the results, the pitfalls, any barriers that other parties
may be able to lift, etc.
The initiating agency should provide a platform for the exchange of

this information, making it available to all who need the
information for their own actions, as well as to share, in particular,
positive results, in order to boost morale and to keep momentum.
Transparency is the key, which should be instrumental in avoiding
the possibility of misunderstandings.
CHAPTER V
MANAGING STRATEGIC
PLANNING AND
MANAGEMENT
Chapter V: Managing strategic planning and management 61
A very important, but generally underrated aspect of strategic

planning, is the overall management of the whole process, from the
vision to the revision. This management is executed by the
initiating agency, i.e., a ministry of energy or power. Although it is
about the management of the whole process, it focuses in particular
on the timely and cost-effective delivery of the results of the
programme of action (often four to five years). As many
stakeholders and organizations will be working on operational parts
of the implementation, it is crucial to maintain oversight and
manage any conflicts between different organizations working in
seemingly different niches of the action program. Oversight is also
needed to organize effective periodic reporting on the progress of
the implementation of the program (as well as the strategy!).
There are many ways of managing an action programme. The size

of the programme, the number of implementing agencies and the
size of the country are just a few of the criteria to assess the proper
dimensions of a management scheme. It is likely that the
responsible government agency opts for a structure which is most
known to the country, preferably embedded in an existing
administrative structure. Alternatively, the initiating agency may
opt for a task force or working party approach, inviting
representatives of other agencies to join a (temporary) team that
oversees implementation of the programme. Such an approach
would provide the lead agency with a liaison structure allowing for
close and effective interaction with the most involved agencies in
the Government.
The project teams that have worked on four consecutive
national environmental policy plans in the Netherlands,
have been staffed from different ministries, all involved in
environmental policy. Although the Minister for the
Environment and the team leader were from the
environmental ministry, many staff members came from
such diverse ministries as economic affairs, agriculture,
nature management and fisheries, development
cooperation and transport and water management. Their
respective ministers co-signed the document as it was send

to Parliament for approval.
These government-based structures typically assign tasks, require

reporting and decide on progress on the basis of actual results. This
system relies on a series of one-to-one relations, always involving
the responsible agency on one side of the relation.
In Viet Nam, the Pre-Investment Division, a government
agency, was established under control of Electricity of Viet
Nam (part of the national Ministry of Industry). The
division is responsible for management of implementation
of the action plan on electric power development, control
over the process of implementation and for managing the
budget.22
On the other hand, really innovative approaches to a sustainable

energy future may actually benefit from an innovative management
scheme. This could look such as a multi-stakeholder dialogue such
as a roundtable, where representatives from diverse stakeholder
organizations sit together periodically to discuss progress and
negotiate additional measures to keep the plan on track.
Chairmanship could lie with the responsible minister, but also with
an independent person who is trusted by all participants to guide
them through their joint effort.
The Canadian Government worked with stakeholder
organizations in the early nineties in setting up a
Roundtable for Environment and Economy. Five Cabinet
ministers joined 20 representatives from diverse
stakeholder organizations in periodic discussions of the
progress in the execution of the Green Plan. After the
Green Plan was abandoned by the next cabinet, the
Roundtable continued its important role of providing a
22
Nguyen Van Huong, 2001. “Development in energy sector of Viet Nam”,
presented at the Ad Hoc Expert Group Meeting to Review the Draft Guidelines on
Strategic Planning and Management of Natural Resources Development, ESCAP,
Bangkok, 18-20 June 2001.
Chapter V: Managing strategic planning and management 63
platform for civil society to discuss environmental policy

with the ruling Government.
Whoever is in charge of the process, the most important element of

overall management is delivering the plan. The overall manager
should focus on the contribution of every responsible task manager
to the greater picture. Ownership by and clear attribution of tasks to
individual organizations (such as ministries, agencies, etc.) or to
associations of industry are of paramount importance. With energy
management this requires a structure that is capable of managing
these tasks on several levels: the national level, the provincial/state
level and finally the local level.
Obviously, this is not a one-man job. It will require an effective,

lean-and-mean structure, including monitoring, feedback and
correction mechanisms. As a continuous process, strategic energy
resources management is never done.
CHAPTER VI
MODEL VARIANTS
Chapter VI: Model variants 67
Several model variants can be applied to planning of a sustainable

energy future in the countries of the Asian and Pacific region. The
most common are discussed in this section of the guidelines.
VI.1 SUBREGIONAL COOPERATION IN ENERGY ISSUES
The Strategic Planning and Management approach could be applied

to supra-national subregional cooperation. In several subregions of
the Asian and Pacific region cooperation between States is ongoing.
This could be through trade in energy resources, import/export of
power, shared development of hydrocapacity, technological
cooperation, or other. At this level, many of the elements of the
approach are valuable, but the role of the initiating agency will have
to be organized in a different manner. It could be imagined that a
multinational agency or a secretariat would be set up to perform this
role. Such agency would have the national ministries of energy as
its main stakeholders.
It has not easy to imagine the application of Strategic
Planning and Management approach to the entire ESCAP
region. At this regional level the cooperation would
preferably be targeted at building the national and
(sub)regional capacity to apply SPM to energy resource
management. After the finalization of the guidelines, the
regional cooperation could move forward to training and
further capacity-building at the subregional level. The
guidelines could be transformed in training material and an
increasing amount of hands-on material, enriched by the
growing experiences of those countries that will apply the
approach in their decision-making processes on energy
(resources) policy.
VI.2 NATIONAL VERSUS SUBNATIONAL LEVEL
In general, a sustainable energy future will be developed and

implemented on a national level. In most countries in the Asian and
Pacific region, energy policy is national policy, with a central
agency taking care of planning, frequently in the context of an
economic five-year plan. Some countries are so large in geographic

size, that a subnational level approach may be more appropriate.
The most important factor to decide the correct level is the level of
control over the energy generation process. If energy generation
policy (in an institutional and regulatory sense) is in the hands of a
higher level authority, it will prove to be impossible to manage the
strategy process effectively at a lower level. Ideally the
management of the process is at the same level as the control
mechanisms (institutional and legal arrangements) for the energy
sector.
If a subnational level is relevant, the strategy needs to spell out the

dependency on national regulatory and non-regulatory
circumstances. The strategy needs to deal with these circumstances
as far as necessary. This would probably lead to a situation where a
national government agency will be a stakeholder in a subnational
government-led process.
VI.3 P UBLIC UTILITY VERSUS PRIVATE SECTOR POWER

GENERATION
Implementing a sustainable energy future strategy in a country that

largely produces energy through government owned and/or
operated utilities will be different from implementing such strategy
in private sector situation. The region features both examples as
well as intermediate situations where utilities are run like
companies but the shares are held by the Government. Private
sector involvement in exploration and exploitation of energy
resources may burden the national authority’s flexibility in using or
reserving resources, depending on the contents of the agreement
between the two parties. Often these private sector parties will
demand some form of guaranteed generation quota, allowing them
a profitable margin on their investments.
Every situation needs its own set of tools and instruments, but the
mechanisms of the guidelines are basically the same. Stakeholder
involvement, including utility involvement in developing the
Chapter VI: Model variants 69
strategy, the action plan and the monitoring and reporting

requirements, will raise the level of ownership of the strategy with
the counterpart. It will also appeal to each player’s specific role and
responsibility in raising the energy supply and use situation to a
higher level of sustainability.
VI.4 DIFFERENCES IN LEVEL OF DEVELOPMENT IN THE REGION
Differences in the level of development of countries in the region

may not pose a problem for using the same set of generic
guidelines, but certainly the application of the guidelines in the
domestic situation will differ. In terms of process it is advisable for
less developed countries to take time for the development as a
whole; in particular, to spend more time on disseminating
information and building institutions and capacity within civil
society in order to allow for the creation of meaningful
counterparts. The similarity with Central and Eastern Europe in the
early nineties, just after the collapse of the Berlin Wall, is
exemplary: the first years were needed for the creation of a
democratic civil society, giving organizations access to information
and funds to get organized and to develop ideas and ways of
communicating these ideas. In these same years the Government
needed time to get organized in a new manner, opening up to
democracy, multi-party systems and decentralization of power.
Another aspect of developing countries with a relatively low

economic growth rate to date is that they seem to be in the category
of countries that are highly dependent on foreign sources of energy.
Again, this does not change the guidelines as such, but places
special emphasis on the dependence on non-domestic factors in the
determination of the energy future.
In order to get an effective interaction with stakeholders, the

stakeholders need to be organized and develop ideas and a vision
for themselves.
CHAPTER VII
CONCLUSIONS
Chapter VII: Conclusions 73
Strategic planning and management of energy resources and the

development of a sustainable energy future are within reach for
many of the countries in the Asian and Pacific region. It builds on
existing planning and management approaches already applied in
the region. Further elaboration, in many cases by taking a wider
perspective (a sustainability perspective), will provide better
decision-making, better involvement (and commitment) of (key)
stakeholders and in the end a more sustainable future for the
countries in this region.
The region is gifted with many sources of energy and could largely
solve the issues within the region, learning from and using each
other’s experiences and comparative advantages. Countries that
need support in bridging their current energy situation towards a
new future could benefit from support of the donor community.
The guidelines presented in this document are a mere toolbox to

assist the countries of the region in making the transition to a
sustainable energy future. Every country will face its particular
problems and challenges. The guidelines are intended to provide
ideas and inspiration on how to counter these challenges and how to
apply a meaningful approach towards dealing with long-term
aspirations of social and economic development, by taking small
steps at a time.
The results are not around the corner. They will take time and effort
from Governments at different levels and from many partners in
society, but walking this path together can create social cohesion,
economic growth and a clean environment.
ANNEX I
GLOSSARY
Annex I: Glossary 77
Action plan Short-term plan (1-5 years) to translate general strategies

or into specific activities, each with a clear mandate,
programme responsible actor, adequate budget and other resources
Baseline Preferably quantified national situation at the start of the

planning cycle (reference point)
Driving force Demographic, political, economic, social or environmental

trend that is influencing energy policy in a meaningful
way
Project Coherent set of activities to realize a specific item of the

action plan
Scenario Calculated development of an issue based on certain
assumptions
Stakeholder Any organization or individual which may affect or be
affected by the issue under consideration
Strategic Holistic control of a process, integrating long-term,

management economic, social and environmental considerations, in
ongoing decision-making
Strategic Holistic development of an idea over a certain time period

planning to realize a desired result
Strategy (the Document to translate a vision into a set of realistic targets

document) to be achieved in the long-term (15-25 years)
Strategy (the Process to create a strategy document in interaction with
process) all relevant players
Sustainable Development that integrates economic, social and
development ecological considerations, without jeopardizing the
opportunities of future generations to satisfy their needs
Vision Future-oriented, general political statement on the desired
development of a nation in the next 15-25 years
ANNEX II
LITERATURE
Annex I I: Literature 81
General reading
• Strategic Environmental Planning, ESCAP, United Nations
publication, Sales No. E.99.II.F.47, New York, 1999
• Guidelines on Stakeholder Involvement in Strategic
Environmental Management, Environmental Resources
Management, Oxford, 1999
• Sustainable Energy Strategies, materials for decision-makers,
UNDP, New York, 2000.
• Sustainable Development Asian and Pacific Perspectives, Asian
Development Bank, No. 030399, Manila, 1999
• Harmonising Environment and Development in South Asia,
Wijiayadasa (ed.), South Asia Cooperative Environment
Programme, Colombo, 1997
• Strategies for National Sustainable Development, a Handbook
for their Planning and Implementation, Carew-Reid, Prescott-
Allen, Bass and Dalal-Clayton, Earthscan Publications, in
association with IUCN and IIED, London, 1994
• National Sustainable Development Strategies: Experiences and
Dilemmas, Dalal-Clayton a.o., IIED, London, 1994
Country presentations
A series of country presentations to the Ad Hoc Expert Group

Meeting on Strategic Planning towards a Sustainable Energy
Future: Policy Options, Barriers and Action Plan, held in Bangkok,
in September 2000:
• Zhou Fengqi, Country paper of China on strategic planning
towards a sustainable energy future
• Khlaut Randy, Cambodia country paper
• Makereta Sauturaga, Sustainable energy development in Fiji
• Pradeep Chaturvedi, Sustainable energy supply in India
• Somit Dasgupta, Sustainable development in India

• Nenny Sri Utami, Indonesia: Sustainable energy development
• Mohsen Bakhtiar, Energy situation and strategic planning
towards sustainable energy development in the Islamic Republic
of Iran
• Houmphone Bulyaphol, Country paper: Lao People’s
Democratic Republic
• Phouvong Sayarath, Country paper of the Lao People’s
Democratic Republic
• Soe Myint, Energy development programmes in Myanmar
• Madan Bahadur Basnyat, Country paper on renewable energy in
Nepal
• Panich Pongpirodom, Country paper of Thailand
• Sunmin Kim, Republic of Korea’s energy policy directives – an
introductory review of the Republic of Korea’s energy policy -
In the context of the preparation of these guidelines (2001) several
country presentations were made, providing illustration material for
this document:
• Zhu Xingshan, Energy resource planning and management in
China
• Somit Dasgupta, Country paper for India
• Arun K. Tripathi, Strategic planning and management of natural
resources development for energy sector in India
• Avinesh Narayan, Country paper for Fiji Islands
• Chansaveng Boungnong, Country paper for the Lao People’s
Democratic Republic
• Alfredo R. Rosal, Country paper for the Philippines
• Philippine Energy Plan 2002-2011, Department of Energy,
Philippines
• Nguyen Van Huong, Development in energy sector of Viet Nam

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ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Guidelines on Strategic Planning and

Guidelines on Strategic Planning and

The designations employed and the presentation of the material in

Mention of any firm, institution, organization, licensed process or

The views expressed in the papers comprising this publication are

This publication has been issued without formal editing.

Against this backdrop, with funding from the United Nations

In 1997, ESCAP, with the cooperation of the Government of the

approach that requires appropriate action over the long term to

Building on the work on the concept of strategic environmental

The guidelines focus on integrating environmental and social issues

The guidelines have been reviewed at the Expert Group Meeting,

The publication is intended to strengthen the capacity of energy

The secretariat wishes to acknowledge with appreciation the

I. THE CONCEPT OF STRATEGIC PLANNING ....................

II. STRATEGIC PLANNING AND MANAGEMENT

III. THE GUIDELINES ................................................................

IV. STAKEHOLDERS’ INVOLVEMENT ................................

V. MANAGING STRATEGIC PLANNING AND

VI. MODEL VARIANTS ................................................................

VII. CONCLUSIONS ................................................................ 71

Annex I. Glossary ................................................................................

Annex II. Literature .............................................................................

Strategic planning and management of natural resources has been

To enhance the capacity of concerned stakeholders in

Strategic planning is a tool, a methodology for decision-making and

‘Energy is a crucial input into the development process. However,

This document presents guidelines on the strategic planning and

The contents of the guidelines are:

Chapter I contains a short introduction of the concept of strategic

Chapter II presents the relevance of this concept for energy

Chapter III presents the guidelines on strategic planning and

Chapter IV provides an introduction to stakeholder involvement in

Chapter V focuses on the overall management issues in applying

Chapter VI highlights several model variants that are useful to bear

Chapter VII presents conclusions on the guidelines and their

Annex I presents definitions of terminology in a glossary.

Annex II contains a literature and reference list.

The concept of strategic planning and management of natural

In the early nineties several experimental approaches were under

ESCAP organized a series of meetings in the course of 1998-2000

I.2 T HE KEY FEATURES OF SPM

SPM is an approach by which Governments (and stakeholders) take

A key feature of strategic planning is the development of a

The strategy is subsequently translated into a manageable ‘plan’ 5 to

Depending on existing administrative culture a plan could span a

Figure 1 presents an overview of the relation between vision,

Figure 1. Relationship between key features of SPM

Vision goals: 15-25 years

Strategy goals: 10 – 15 years

Action Plans (4-5 years)

Baseline >> time

Another key feature of SPM is the establishment of clear targets,

As energy production increases, and consumption is largely in the

Roughly strategic planning and management is a five step process:

Figure 2 illustrates this process. For the purpose of the guidelines in

Stakeholder involvement is important throughout the process.

Figure 2. Five step approach

Set objectives and targets

Monitor and Develop programme

To push this process as well as to manage it, there is need for a

Table 1 below presents a comparison between traditional