increasing urban energy supply through energy efficiency
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Increasing Urban Energy Supply through Energy Efficiency. UN Symposium on Sustainable Cities. Cities need energy to grow. Cities economic growth is constrained by inadequate electricity supply Brown outs and load shedding are a fact of life in many cities Generators are ubiquitous - PowerPoint PPT PresentationTRANSCRIPT
INCREASING URBAN ENERGY SUPPLY THROUGH ENERGY EFFICIENCYUN Symposium on Sustainable Cities
Cities need energy to grow Cities economic growth is
constrained by inadequate electricity supply
Brown outs and load shedding are a fact of life in many cities
Generators are ubiquitous New energy
infrastructure is expensive
Urban poor are under-served
Energy efficiency increasesenergy supply Energy efficiency = boosting energy productivity Lowest cost source of energy; using energy more
efficiently, not wasting it Energy demand in developing countries growing at
3.4% annually Energy efficiency could cut energy demand in half to
1.4% per year Would reduce energy demand by 25% by 2025 Time is of the essence: 50% of capital stock (buildings)
will be constructed or refurbished in next 20 years Implementing optimal energy efficiency can lock in
energy savings for decades
Scope for urban energy efficiency
Energy efficient building codes to cover HVAC, lighting and thermal insulation
Street lighting, stop lights Sizing of pumps for water and sanitation Green procurement: only energy efficient
products Collaborate with private sector ESCOs in
energy performance contracts for government buildings
Promote energy efficient consumer behavior
Market barriers to energy efficiency
Capital costs for EE equipment (HVAC, refrigerators, air conditioners,…) are higher
Consumers and builders lack information to make right energy choices
Builders do not operate buildings, are concerned with lowering upfront building costs, no incentive to reduce operating costs
EE projects often small, need to be aggregated to attract investment
Due to energy subsidies, consumers are insulated from true price of energy
Tighter credit markets make financing more difficult
Pricing In many countries, consumers pay less than the
supply cost of energy IEA argues to reduce fuel subsidies – $250
billion in annual subsidies in developing countries in 2005
Inhibits investment in new energy infrastructure Makes energy efficiency measures uneconomic Alternative – direct cash/credit payments to
urban poor for electricity use Case study from Baja California, Mexico
Baja California, Mexico: Credits to urban poor for electricity bills Income from a wind power
plant ($2.6 million) made available as credit against electricity bills and energy-efficient appliances for 35,000 impoverished families of Mexicali
Priority given to elderly, single mothers, low-income families with children and disabled
Save up to 40 percent off electricity bills during summer months
Provide monthly cards of credit $$ to urban poor for payment of electricity bills
Energy efficiency standards and labels
Energy efficiency standards are regulations that specify the minimum allowable energy performance for appliances, lighting, equipment, even buildings
Standards prevent inefficient products from entering the market
Provide information to consumers and builders so they can make informed choices
Green procurement: government is largest consumer; procurement of only EE products can transform market
Develop energy efficiency building codes
Require builders to use only highly efficient HVAC equipment, windows and lighting products
Mandate adequate building thermal insulation
Mandate optimization of new building energy performance
Can yield significant savings in operational costs in terms of energy and money
Locks in energy savings for decades
Energy labeling aidsEndorsement label: top 20% Information label
Energy efficient refrigerators
LED street lighting Decreasing costs, super
high efficiency of LEDs driving new applications
Up to 88% savings in electricity costs
Delivers 30 lux from 4.5 meters using only 25 watts
60,000 hrs lifetime (5-10 X increase)
Uniform light distribution with minimal glare
Similar energy savings for LED stoplights
Engage the Private SectorEnergy Service Companies (ESCOs) are
proliferating around the world Identify potential energy savings Perform feasibility study Conceptualize a project Arrange financing Implement energy efficiency measures Measure energy savings over next few
years and guarantee savings under an energy performance contract
ESCO innovative finance Finances energy efficiency projects from
energy savings Permits the realization of projects for
which $$$ may not otherwise be available
Mobilizes private capital Ensures that savings will be realized in a
certain time frame World Bank, IFC, Econoler and Nexant
supporting ESCO development
Consumer awareness raising Information
campaigns can shape public behavior and values toward energy efficiency
Utilize the gamut of social media: TV, newspapers, bus stop posters, school posters, workplace guidelines, messages in electricity bills,…
California energy crisis in 2001Public information campaign
Energy crisis due to electricity market distortions Government launched FLEX YOUR POWER media
campaign Target audience: from CEOs to school children Within 10 months, reduced peak electricity load by
6300 MW of which 40% due to behavior change
