Energy Efficiency Implementation and Institutional Issues in Developing Countries
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1 Energy Efficiency Implementation and Institutional Issues in Developing Countries Marco Antonio Nieto VázquezV National Commission for the Efficient Use of Energy Mexico International Consultation Workshop on Energy Efficiency Institutional Government Washington DC, June 1,
2 Index Energy Reform Law for the Sustainable Use of Energy Vision of Sustainable Use of Energy National Energy Strategy National Program for the Sustainable Use of Energy Implementation Transversal Policy Elements: Energy Efficiency Indicators 2
3 Energy Reform Within the package of reforms approved by the Mexican Congress on November 28, 2008, were issued the Law for the Use of Renewable Energy and Energy Transition Financing, as well as the Law for the Sustainable Use of Energy (LASE) The Law for the Use of Renewable Energy and Energy Transition Financing has the aim of regulate the use of renewable energy sources and clean technologies for generate electricity with different purposes to providing the electricity public service, as well as establishes the national strategy and tools to finance the energy transition. In this Law, the use of renewable energy sources and the use of clean technologies should be undertaken within the framework of the National Strategy for Energy Transition and Sustainable Use of Energy in which the Mexican Government will promote: The energy efficiency and sustainability (in the context of the funding for the Energy Transition) Reducing dependence on oil as a primary energy source 3
4 Law for the Sustainable Use of Energy The Law for Sustainable Use of Energy (LASE), that creates the National Commission for the Efficient Use of Energy (CONUEE). CONUEE, according to this Law, is a quasi-decentralizated administrative organ of the Ministry of Energy, with technical and operational autonomy, and aims to promote energy efficiency and become a technical body, in field of sustainable use of energy for all country. The Regulation of The Law for the Sustainable Use of Energy (RLASE) was published on September 11,2009, gives substance to the Law for the Sustainable Use of Energy and states that the Ministry of Energy through the Commission will formulate the National Program for Sustainable Use of Energy , ensuring consistency with the National Development Plan. This is a special program in terms of the planning Law 4 4
5 Activities contained in the Law for the Sustainable Use of Energy LASE sets new roles and responsibilities in the Energy Sector and to all sectors of the economy. CONUEE plays a major role in carrying them out, among these activities are: National Program for the Sustainable Use of Energy Creation of an Advisory Council for the Sustainable Use of Energy Standardization on energy efficiency Energy Consumption catalog (for equipment) The National Information Subsystem for the Sustainable Use of Energy The program for the certification of processes, products and services (including a program for audits and energy technical reports of potential) Register information of the Funds and Trusts Users with a pattern of high energy consumption The methodologies to quantify emissions of greenhouse gases (GHGs) and economic valuation of these activities Legends to promote the efficient use of energy 5
6 Energy Sector Vision ENERGY SECTOR VISION 2035 ELECTRICITY OUTLOOK ENERGY SECTORIAL PROGRAM (PROSENER) RENEWABLE ENERGY OUTLOOK NATIONAL DEVELOPMENT PLAN CRUDE OIL OUTLOOK NATURAL GAS OUTLOOK NATIONAL ENERGY STRATEGY (ENE) L.P GAS OUTLOOK OIL OUTLLOK 1. Law for the Sustainable Use of Energy. (LASE) 2. Regulation of the LASE 3. Law for the Use of Renewable Energy and Energy Transition Financing 4. Decree of the Expenditure Budget of the Federation Energy Efficiency Protocol 2010 Special Program for Climate Change Special Program for Renewable Energy Use National Program for Sustainable Use of Energy
7 Planning Instruments 1 National Program for the Sustainable Use of Energy Special Program of Climate Change Methodologies for quantifying emissions of Greenhouse Gases (GHG) and energy consumption avoided by the Sustainable Use of Energy. On November 27, 2009, was published the Decree approving the National Program for Sustainable Use of Energy This Special Program is the instrument by which the Federal Government, according with Law for the Sustainable Use of Energy, provides strategies, objectives, actions goals to achieve the optimal use of energy. Special Program of Climate Change (PECC), published on August 28, 2009, is a transversal policy instrument that committing the offices of the Federal Public Administration (APF) with binding national objectives and targets in mitigation and adaptation for the period With the PECC seeks to promote sustainable development, clean production processes, efficient and competitive, and the preservation of natural resources. For the development of the National Program for the Sustainable Use of Energy are considered the instruments and the obligations of CONUEE according to the Law for the Sustainable Use of Energy and its Regulation. The CONUEE published on December 11, 2009, the document entitled "Methodology for Quantifying Greenhouse Gas Emissions and Energy Consumption Avoided by the Sustainable Use of Energy" that shares the methodologies used to analyze the potential and cost of the measures for sustainable use of energy, including the efficient use of energy and GHG emissions abatement according to the provisions of Article 11 of the Law for the Sustainable Use of Energy and Third Transitory Article of RLASE. 7
8 With support from the Energy Abatement Cost Curve, 7 opportunity areas were identified in which the Program is centered. Energy abatement cost curve in Mexico, US$/MWh Selected opportunity areas Lighting HVAC Water pumps rehabilitation Cogeneration Equipment and Appliances Buildings Efficiency in automobile park Efficient Engine Systems Industry Efficiency increase Public transport Solar water heaters Other actions: catalytic converter optimization, continuing casting, more efficient furnaces, etc. Abatement Potential, TWh/year? The opportunity areas, which represent 60% of the energy efficiency levers have a negative cost? 7 opportunity areas: Lighting Transport Equipment and Appliances Cogeneration Buildings Industrial Engines Water Pumps 1 Derived from the green house emissions abatement cost curve considering the principal downfallen fuels SOURCE: McKinsey GHG abatement cost curve V 2.0, CONUEE analysis 8
9 The National Program for Energy Efficiency objectives contributes directly to the objectives of the National Energy Strategy 1 Increase the fuel efficiency on the national vehicle fleet 2 Diversify energy sources, increasing the participation of clean technologies 2 Increase the efficiency on the lightning park 3 Increase the efficiency levels in the energy consumption 3 Increase the efficiency on the residential appliances 4 Increase cogeneration capacity 5 Operate in an efficient, trustable and secure manner the energetic infrastructure 5 Reduction of energy consumption by air conditioning 9 Promote the technological development and human capital for the energy sector 6 Increase the efficiency of industrial motors with higher consumption V Diffusion Programs 7 Increase the efficiency in water pumps systems 9
10 From the National Program for the Sustainable Use of Energy there were defined 26 actions lines Public sector guidelines Programs focused in Energy final users Development of capacities in matters of Sustainable Use of Energy Transport automobile Lightning Household and Real State Sets Cogeneration Real State Industrial Motors Water Pumps 1. Apply efficiency guidelines to the Public Administration (PA) 1 automobile park 6. Accelerate the implementation of efficient lightning in the PA 7. Accelerate the implementation of efficient lightning in public lightning 18. Incorporate insulation standards for new buildings of the PA 2. Publish efficiency standard for light and medium new vehicles 3. Publish efficiency standard for heavy duty new vehicles 4. Announce mechanical and/or environmental standards to authorize import vehicles circulation 8. Publish energy consumption standard for lightning 9. Support marginalized groups on the acquisition of efficient lights 11. Implement program and certification and set distinction campaign 12. Update efficiency standards of refrigerators and water heaters 13. Continue with the homologation of existent standards 14. Continue with the promotion of solar water heaters 15. Continue with the marginalized groups support on the substitution of refrigerators and air conditioner sets 16. Publish standard to encourage the moderate use of air conditioner sets 17. Disseminate the advantages of cogeneration bringing out the benefits and feasibility of projects in high energetic consumption enterprises, including those from the energy sector 19. Disseminate the incorporation of insulation standards in the construction regulation as well as for license obtaining, and demand the applicable standards compliance: New real states not residential New residential real state in relevant climate regions 20. Disseminate the expansion of the green mortgage coverage 21. Promote best practices of insulation and air conditioner sets use 23. Update efficiency standard of three phase motors 24. Disseminate the substitution of inefficient three phase motors from the existent park 25. Strengthen the program of support for the refurbishment of agricultural pumping sets 26. Establish a support program for the refurbishment of municipal pumping sets 5. Promote vehicle use best practices 10. Promote high efficiency lights use 22. Develop a certification of the energetic consumption estimate of new real state 10
11 Elements of Transversal Policy of the National Program for Energy Efficiency Policy and Programs on Energy Efficiency Standardization in Energy Efficiency Institutional Reinforcement Encouragement, Diffusion and Innovation in Energy Efficiency Energy Efficiency Management Institutional Coordination Education, training, information & communication Exterior linkage Information and Evaluation in Energy Efficiency: EE INDICATORS 11 11
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