Energy Efficiency in Cities: An Implementer s Experience

Transcription

1 Energy Efficiency in Cities: An Implementer s Experience Laura Van Wie McGrory Director, International Programs Alliance to Save Energy World Bank Energy Week Energy Efficiency in Cities 1 April 2009

2 Alliance to Save Energy Mission: To promote energy efficiency worldwide to achieve a healthier economy, cleaner environment, & greater energy security through policy, education, research, technology deployment, market transformation and communication initiatives. Established 1977; NGO coalition of 150+ prominent business, government, environmental and consumer leaders. Headquartered in Washington, D.C. with operations in Eastern Europe, South Africa, Mexico, India and several states in the U.S. Staff of 50+ Chaired by Senator Mark Pryor and James Rogers (CEO, Duke Energy) with strong bi-partisan congressional, corporate & public interest leadership.

3 Municipal EE Challenges and Opportunities Water systems - Aging infrastructure Leaky distribution systems - System inefficiencies (pumps, motors) Municipal infrastructure and operations - Inefficient buildings (housing, government offices, schools) - Lack of energy/water metering - Institutionalized purchasing of energy-inefficient equipment - Inefficient street-lighting

4 Barriers to Municipal EE Insufficient technical know-how - Technical assistance, training Lack of political will - Education (LCC, cost-benefit), demonstrations Lack of public awareness - Public information and education campaigns Financing - Low cost-no cost measures - Revolving funds, vendor credit, municipal bonds - Performance (savings)-based financing

5 Efficiency of Water Systems WATERGY makes the best use of two valuable, limited resources: water & energy WHY IS THIS IMPORTANT? Every liter of water that passes through a system has a significant energy cost. Water sector efficiency leaves more funds for crucial and often underfunded public services. In most developing countries, 1/3 to 1/2 of water produced is lost. AND IT S S COST EFFECTIVE Rapid Payback: generally from a few months to 3 years Huge Savings: at least 20% in energy costs; much higher possible Makes the most of existing infrastructure; ; reduces the need for new RESULTS: 20.8 million kwh and $5.3 million (100 cities)

6 Cost-Effective Interventions Pumps Leak Management Automated Controls Metering & Monitoring

7 CASE STUDY: EMFULENI, South Africa PROBLEM 80% of water flowing to homes lost through leaking plumbing fixtures! Enough to fill two Olympic-size swimming pools every hour

8 TECHNICAL SOLUTION: Pressure Management Automated pressure management valves on each supply line Reduced high bulk pressure; further night $800,000 construction commissioned Sept 2005 FINANCING SOLUTION: Performance Contracting Water pressure management firm acting as ESCO Build-Operate Operate-Train-Transfer Transfer to municipality after 5 years Fees: firm gets 20% of savings ALLIANCE ROLE: Trusted third party Developed idea and worked with water utility & municipality to implement it Wrote RFP,, putting onus on bidders to find funding Helped negotiate contract EMFULENI, cont.

9 EMFULENI, cont. RESULTS Payback period: <3 months Annual Savings: Cost: Water: Energy: US$ 3.8 million 8 million kiloliters (kl) a reduction of >30% >14 million kwh CO2 Reductions: 12,000 tonnes/year

10 Efficiency of Municipal Infrastructure and Operations Municipal Network for Energy Efficiency (MUNEE) Network of cities carrying out EE projects: Armenia, Albania, Bosnia & Herzegovina, Bulgaria, Czech Republic, Poland, Hungary, FYR Macedonia, Moldova, Montenegro, Russia, Serbia, Ukraine, Romania, Kazakhstan, Latvia, Lithuania. Strategies: Technical Assistance: Residential/Municipal Energy Efficiency and Heating Leader Training and Policy Reform Education and Awareness Campaigns Innovating Financing

11 Technical Assistance Residential and Municipal Energy Efficiency - Energy audits - Energy metering and building level thermal controls - Building envelope improvements, weatherization - Retrofits of heat distribution systems Energy Savings: - Residential Low-cost improvements: 20-30% savings Building envelope upgrades: 40-60% savings - Schools: Up to 40% savings from automated controls

12 Leader Training and Policy Reform Training Leaders Workshops on municipal energy management, planning, and conservation Tools - Software to monitor energy use; and estimate EE savings potential in municipal buildings Policy Reform Mandatory Metering (20-50% savings in Moldova) Regulations allowing municipal facilities to keep savings from EE projects

13 Education and Awareness Campaigns Armenia, Moldova, Ukraine, Serbia Tools and activities - Residential EE advice booklets and posters - TV advertisements and documentaries (20% energy use reductions in Serbia) - Articles in national publications - Radio public service announcements - Energy education workshops in high schools

14 Education and Awareness Cont d: Green Schools USA, India, Ghana, Armenia 5-15 schools per district Teams students, teachers, custodial staff, administrators: - Energy tracking services (watt-meters and other equipment) and training - School-wide energy awareness (workshops, eco-clubs) - Students apply lessons at home and in communities Benefits - Avoided energy costs (5-15%); reinvestment in schools - Student learning and leadership development Funding: Grants (utilities, foundations), state energy offices, or school districts (performance contracts)

15 Consumer Education Campaigns (USA) Super Powers EPA, NYSERDA, Alliance Nationwide TV & Radio (ABC, CBS, CNN) Consumer Website Energy Hog DOE, Ad Council, Alliance, States All Media Outlets Web, Collateral Materials Powerful $avings DOE & Alliance Partnership All Media Outlets P&G ColdWater Campaign P&G, Alliance All Media Outlets & Web The Power is In Your Hands Industry, DOE, EPA, Alliance All Media Outlets, Web & Collateral Eureka $mart House Energy-Efficiency Challenge NBC Universal, Industry, DOE, Alliance On Air, Web Home Makeover Contest

16 Innovative Financing Grants: Used to trigger market forces; gradually phased out to allow for market acceleration Housing renovation/modernization loans Municipal funds Energy efficiency revolving funds Performance contracting and third party financing energy service companies (ESCOs)

17 Manual for Development of Municipal EE Projects How to develop municipal EE projects for performance contracting. Targets: Municipalities EE services providers Financial institutions Contains: Step by step guidelines Templates (RFPs, PCs, etc) Released in India in March 2008 but generally applicable Jointly released with Bureau of Energy Efficiency Tested in two Indian states; third state pending

18 Scaling Up: Bundling Municipal Financing Bundling Municipal EE Projects in Tamil Nadu Partnership with Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL), CMA, ULBs Implementing energy efficiency projects in 29 municipalities in water pumping and street lighting

19 Addressing ESCO Financing Issues in Tamil Nadu Issues Availability of finance to ESCOs Payment guarantee mechanism to ESCOs ESCO projects in India often falter or fail due to disputes over quantifying energy savings resulting from the project Solutions TNUIFSL / TNUDF willing to finance ESCOs Set up TRA account with electricity bill payment escrowed Use the International Performance Monitoring and Verification Protocol (IPMVP) Oversee project progress and provide technical support to develop local capacity Document IPMVP s suitability to Indian scenario. Develop financing tool kit including performance contracting case studies for replication in other cities Facilitate market transformation

20 Municipal EE Project in Gujarat Municipal water and energy efficiency in 159 Urban Local Bodies (ULBs): Water supply and street lighting ESCO financing (performance-based contracts) 3-party agreement between GUDC, IL&FS ECOSMART and ECO III project Applying lessons learned from TN project Phased Project: Preliminary energy audits in 10 towns Replicated in remaining 149 towns in the next two years. Savings Potential: 21% annual energy bill (10 pilot ULBs)

21 Summary: Keys to Success in Municipal EE Projects Technical capacity Enabling policy Public awareness Financing

22 Thank You! Alliance to Save Energy 1850 M Street, NW, Suite 600 Washington, D.C Phone: Website: Laura Van Wie McGrory LVanWie@ase.org