Energy Efficient Lighting A Nepal Case Study

Transcription

1 Energy Efficient Lighting A Nepal Case Study Regional Workshop on Energy Efficient Lighting April 28 30, 2009 Colombo, Sri Lanka Presented By: Ramesh P. Nepal Sr. Energy Efficiency Consultant FNCCI, Kathmandu, Nepal rpnepal@wlink.com.np

2 Compact Fluorescent Lamp (CFL) Program

3 POTENTIAL Huge Potential being untapped Estimated around 83,000 MW Economically viable 43,000 MW Only 15% about 600 tapped Huge deficit between demand and supply Result Load Shedding

4 Electricity Demand Growth Trends (Nepal) 1 Nepal Electricity Supply and Demand 1,400 1,200 Max Demand Available Capacity 1, M W / / / / / / / /14 1 Reproduced from a undated file title Anusuchi.pdf found on NEA website.

5 System Load Curve Load Dispatch Center System Load Curve of Peak Day of the Year Poush 16, 2064 (Dec 31, 2007) Monday Peak load MW at hr MW TOTAL STORGE (KL-I, KL-II) TOTAL DIESEL (M/F, H/D) TOTAL IPP (KHIMTI, BHOTEKOSHI, CHILIME, INDRAWOTI, BPC, TOTAL ROR (KG-A, MRS, TRI, DEV, SUN, MODI, GDK, PUWA, TOTAL IMPORT (With TANAKPUR) LOAD SHEDDING Time

6 Comparison of Load Shedding Load Dispatch Center Comparison of Load shedding GWh Shrawan (July- Aug) Bhadra (Aug- Sept) Aswin (Sept- Oct) Kartik (Oct- Nov) Mangsir (Nov- Dec) Paush (Dec- Jan) Month Magh (Jan- Feb) Falgun (Feb- Mar) Chaitra (Mar- Apr) Baishakh (Apr-May) Jeth (May-Jun) Asar (Jun-Jul) 062/63 (2005/06) 063/64 (2006/07)

7 NEA Pilot CFL Project Pilot project designed with WB technical assistance Two distribution mechanisms: Free CFL for life liners Buy 1, get 1 free for other domestic customers Pilot project to cover 21 identified areas and estimated 250,000 customers Meter readers to send customer transaction documents Consumers to close transaction and redeem CFLs at retailers (no collection of IBs) Estimated 3-5 MW demand reduction Financed by 50% Government loan Project cost may reach Rs million Status: Implemented

8 CFL Scale-up Program (To Be Funded by ADB) Objectives: Accelerated Market Transformation Create generation capacity addition swiftly Maximize use of CFLs in residential lighting Replace existing incandescent light points with CFLs Phase out IB sales within short time span Shift consumer demand towards high quality CFLs

9 Proposed CFL Scale-up Program Key considerations: Baseline lighting utilization and habits of NEA domestic consumers Consumer affordability, retention and penetration footprint across consumption brackets and geographical areas Quality (lifetime, lumens/watt) certification to maximize energy savings and consumer acceptance Replacement requirements (wattage, color, sockets, usage) Distribution and IB collection mechanism

10 Proposed CFL Scale-up Program Existing market (preliminary findings): 1.5 million domestic consumers (grid and micro-hydro) Annual lamp sales: 3.6 million IBs, 6 million CFLs Domestic light points: 1.8 million IB million CFL = 4.5 million light points (bayonet/pin) Almost all IBs and CFLs are imported Market is flooded with low quality CFLs (1,000-3,000 hrs) Chinese imports, mid-quality (3,000-6,000 hrs) lamps approx 25% of sales (Philips, Osram, Crompton) IBs sales by wattage: 40W, 48%; 60 W, 25%; 100W, 12%; 25W, 11%; others, 4% CFLs retail for Rs , IBs for Rs each

11 IB light points in NEA domestic consumers 5 Amp Capacity IB Light Points (millions) 25 W 40 W 60 W 100 W Others Total Amp Amp Amp Phase Total

12 Proposed CFL Scale-up Program Possible distribution approaches: Government-funded give-away scheme Full or partial cost recovery through utility bills Retail rebates on trade-in of IBs (IBs shall be collected in all three models)

13 CFL Distribution Methods Option 1 Give-away Program: Bulk procurement and distribution by utility Pros Immediate peak reduction impact through one to two cycles Superior CFL quality assurance possible Low price per unit through bulk ICB (International Competitive Bidding) procurement Good consumer response expected to free distribution Administrative simplicity Cons Sustainability issues; needs strong IB phase-out program High free-ridership (across border, small shops) Not involving regular channels Potential for fraud

14 CFL Distribution Methods Option 2 Cost recovery: Bulk procurement and distribution by utility, consumer pays for lamp on electric bill over time Pros CFL quality assurance possible Costs are recovered, thus program sustainable Longer-term market transformation possible Low potential for fraud, minimal free-ridership Quick disbursement of program funds via bulk purchase Cons Less attractive to consumers, low participation and slower penetration rate Higher administrative & accounting costs

15 CFL Distribution Methods Option 3 Rebate Program: Subsidy payments given to CFL supplier and/or consumer Pros Attractive lamp price for consumer Uses normal distribution and retail channels Potentially sustainable, if rebates gradually phased out Relatively good penetration if rebates effectively marketed Cons Potential for fraud if consumer rebate coupons are used High free ridership through subsidy provided Quality control potentially compromised by price competition from low quality CFLs Monitoring penetration more difficult because of many bulb disbursement locations

16 Recommended Approach Give-away scheme is the optimal choice for a scale-up program Quickest consumer response even from lifeline customers Simplest to implement and monitor Implementation issues are manageable Quality of CFLs is best controlled through bulk procurement by NEA IB return serves as consumer payment NEA handles all procurement and distribution Simplified procurement of high-quality CFLs

17 Scale-up Program Components Scale-up program will have 3 components: CFL procurement and distribution Public awareness campaign Quality testing capacity building

18 CFL Procurement and Distribution Procurement of 1 million CFLs: International competitive bidding to source high quality CFLs at best prices Singular wattage (11 W) to leverage bulk price and simplify implementation CFL specifications: tube/spiral B22 cap, cool daylight, 52+ lm/w minimum, h rated life, 24-month warranty, 80% lumen maintenance at 40% rated life Distribution Priority to 5 and 15-amp domestic consumers Meter readers to issue vouchers to consumers upon verification of IB use Consumers to bring vouchers and IBs claim CFLs at NEA payment centers

19 Public Awareness Campaign Public awareness campaign is necessary to: Engage active participation of rural, low-income consumers with less financial capacity to shift from IBs to CFLs Reinforce CFL usage by higher-income consumers Shift CFL market from low-quality to high-quality models Campaign media FM radio, print advertisements, flyers, bill inserts, etc. Component budget:

20 CFL Quality Testing Capacity Building Expand local CFL testing capacities for: Luminous flux measurements Input power measurements Life testing Other safety, quality and energy performance tests Component budget:

21 Scale-up Program Impacts 1million, 11W (10,000 h) CFLs replacing IBs can translate into: 21.8 MW of virtual power plant capacity Avoided generation outlay of US$ 40 million Energy savings of 47.6 GWh per annum Savings per household of Rs 348/year (above exemption)

22 Example: CFL Give-away Program

23 Issues Manner by which scale-up program builds on pilot program Tariff schedule should be restructured to incentives consumer savings Review duty, VAT and tax policies on imported CFLs and IBS IB Phase-out strategy

24 Implementation Arrangements Executing agency - NEA Implementing agency - NEA Program Partners CFL Suppliers and other candidate distribution channels Duration 12 months Program cost:

25 Thanks for your kind attention