· 2.4% of primary energy ... • 1.4 million cfl pilots successful ... world bank cfl toolkit: ....

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19% Global Electricity Consumption Lighting (IEA)

2.4% of Primary Energy Consumption

31% from residential lighting itself

Total Cost of lighting ~ $500 billion annually

Nearly 70% of electricity is used by lamps for which better alternative is available

>40% energy savings feasible Sources: IEA, Philips Lighting

$$$ Carbon Finance

Government of Mexico (SENER)

$$$ World Bank

In urban areas, a turnkey bundled procurement implementation scheme will be used initially, targeting low-income families identified by electricity consumption data.**

In rural areas, SENER will work with an operator (FIDE/FIPATERM) to bulk procure the CFLs, and work with DICONSA (store that reaches these areas) for CFL distribution and IL collection.

**SENER completed international tendering for the supply and distribution of 22 million CFLs in January 2011, Now second phase.

Source: Mexico Project Presentation, World Bank (April 2010)

Source: Ashok Sarkar (World Bank) @ EE Global 2011

SHCP

SENER

FIDE o FIPATERM ( Coordinación a cargo de SENER)

45 millones de LFCs Ganancias por Financiamiento

de Carbono

Reembolso por parte del

Banco Mundial

USD 70 mill

Distribución gratuita a

población de bajo ingreso

• 45 million CFLs, free distribution• 1.4 million CFL pilots successful• CDM funds along with World Bank funds (plus GEF and CTF support)• Exchange of ILs for CFLs at approved retail stores (coupons)• 10 million carbon credits - CERs ( through 2021) to be generated• First CFL CDM PoA already registered• Target of 11 million low income households, including 2 million in rural areas (4 CFLs each)

Source: Ashok Sarkar (World Bank) @ EE Global 2011

Program Year Procurement

SizeBulk Price

Vietnam - Phase 1 2004 300,000 1.07

Vietnam - Phase 2 2005 700,000 0.98

Uganda 2006 800,000 1.10

Rwanda 2008 200,000 1.00

Ethiopia 2009 4,500,000 0.87

Bangladesh* 2009 10,500,0000.94 for 13-14W, 1.04 for 20-23 W

Philippines 2009 5,000,000 0.87

*Note - Bangladesh procured 3.3 million 13-14W and 2.2 million 20-23W CFLs. Additional 5 million CFL to be procured in 2010.

Country No. of CFLs Installed

Reported Peak Load Reduction

Vietnam 1,000,000 33 MW

Uganda 800,000 30 MW

Sri Lanka 600,000 34 MW

South Africa 2,700,000 90 MW

India-BELP 300,000 11 MW

Source: World Bank CFL Toolkit: http://www.esmap.org/esmap/cfltoolkit5

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Source: Osram Presentation by C. Schraft @ World Bank, 2012

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Source: Wolfgang Gregor, OSRAM

$$$ Carbon Finance

$$$ World Bank, CTF, GEF

National Development Bank

Government of Mexico (SENER, via an operator)

Eligible Consumers

Retail Stores

Scrapping Centers

Guarantee FacilityRepayment via Electricity Bills

World Bank

CTF

GEF

Source: World Bank (2010)

TotalsTraditional IBRD

loanNew application:

recycling loan

Difference:Recycling vs.Traditional

Investment $195 mll$585 mll (in $195

mll Recyclable Green tranches)

3 times

Number of ACs Installed 0.32 mll 0.96 mll

Energy Savings $449.72 mll $1,349.38 mll

Carbon Savings (tCO2e) 1 2.31 mll 6.94 mll

tCO2e 2 (Montreal Protocol 3) 0.26 mll 0.78 mll

Reduction in peak demand 4 110 mll (40.6 MW) 330 mll (122 MW)

(1) Based on an Emission factor of 514 tCO2e /GWh(2) Assuming that the replacement is done for more than 15 years old ACs with an annual leakage of 200 gr of HCFC-22. As a consequence of replacing refrigerators that use HCFC-22 (GWP = 1810) for R410A (GWP =1670), there is a reduction by new appliance installed of 140 in GWP.(3) Although these emission reductions (ER) can not be accounted for under the Clean Development Mechanism (CDM), due to the rules of the Kyoto Protocol concerning substances controlled by the Montreal Protocol, under the program they are avoided emissions that provide additional environmental benefits.(4) Assuming a peak coincidence factor of 0.264% . This decrease in demand allows for a permanent reduction in the expansion of the power generation capacity required to meet the demand of the country, compared with the base line.

Source: WB calculations with inputs from the Clean Technology Fund (CTF) in Mexico – WB project P106424 and WB Low Carbon Development Study in Mexico (MEDEC) 2010.

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Presenter
Presentation Notes
This structure can be customized for any other kind of appliance such as electric Water Heaters (BEE is already thinking about this, they are 100% India’s manufactured), refrigerators, small TV’s or ACs as it was in the case of Mexico. Mexico, Subsidized the full cost of the ACs replacement (not just a partial subsidy): ACs:Electricity Tariff $0.10 $/kWh   Emissions Factor 514 tCO2e/GW CER Price 10 $/tCO2e Average life AC 15 years AC Cost 316 USD Savings per AC 555 kWh/ann Assumptions from: CTF program in Mexico (already taken place in Mexico) Mexico Low Carbon Growth Study (World Bank, 2010), also known as MEDEC. Energy Efficiency lighting project in Mexico (With money from IBRD, GEF, CTF and funds from the Mexican Government and NAFIN) Conclusions: Ceiling fan project could used this structure as a pilot project The structure could be used latter on for the rest of the appliances replacement program and also to the CTF funds to optimize its use in both, financial terms (exposure, also cheaper- borrowing at shorter maturities) and impact (avoid of peak capacity as a result of the savings).

CFLs/ LEDs are one of the “low hanging” efficient technology options, but transaction costs could be quite substantial

Avoiding electricity shortages (and “power cuts”) is the primary objective (and NOT necessarily climate change mitigation) and it drives the expanded CFL use and its application in developing world.

Factors of Developing Country CFL Program Successes:▪ Strong ownership and commitment of the Government▪ Keeping it as simple design as possible – e.g., free CFLs▪ Strong planning oversight and record keeping▪ Effective coordination and consistency amongst stakeholders▪ Involvement if a variety of level stakeholders (school teachers and local

community leaders, and administrators)▪ Conducting a consumer awareness program in advance, by multiple means.▪ Quality technical specs (pertaining to local conditions & power

characteristics) Factors to Ensure Continued Use of CFLs:▪ Assurance of availability of high quality CFLs▪ Assurance of CFLs available at affordable cost.

Lessons Learned & Key Conclusions Large Scale Lighting Programs…..1

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Parallel Regulatory and Policy Efforts are Important▪ Removal of disincentives (e.g. higher VAT and customs duties

on CFLs)▪ Formulating IL “Phase Out” or “Ban” Policies (has to follow a

phased approach over several years), including adoption of newer technologies (LEDs)

Provide Support for Improving Sustainability by:▪ Strengthening Existing or Establishing New Domestic CFL

performance testing laboratories▪ Establishing CFL Waste Recycling and/or End-of-Life

Management Programs▪ Strengthening or Establishing Local CFL Manufacturing Base

(switch over from IL production)11

Ashish [email protected]

www.worldbank.org/energy