Antonio Pinhel Energy Efficient Refrigerators Sep09

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Energy Efficient Refrigerators – Utility Perspective Conference “The Future of Sustainable Products and Services” Policy and Market Development for SP&S in Developing Countries Antonio Pinhel - Brazil 28th and 29th of September 2009 - Essen, Germany

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Transcript of Antonio Pinhel Energy Efficient Refrigerators Sep09

Page 1: Antonio Pinhel Energy Efficient Refrigerators Sep09

Energy Efficient Refrigerators – Utility Perspective

Conference “The Future of Sustainable Products and Services”

Policy and Market Development for SP&S in Developing Countries

Antonio Pinhel - BrazilAntonio Pinhel - Brazil

28th and 29th of September 2009 - Essen, Germany

Page 2: Antonio Pinhel Energy Efficient Refrigerators Sep09

FUNDING FUNDING -- ENERGY EFFICIENCY PROJECTSENERGY EFFICIENCY PROJECTS

-EE funds from tariff (0,5% x net revenue = USD 250 million/yr)-Tax cuts for EE equipments x production growth-Subsidies from the government for programs implementation-Special loans / micro credits / housing-Clean Development Mechanism /environment (others)

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-Clean Development Mechanism /environment (others)-Blending sources

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EVALUATION EVALUATION -- ENERGY EFFICIENCY PROJECTSENERGY EFFICIENCY PROJECTS

-Electric Sector (country side)- Postponed investments (Generation,Transm,Distribution)

- Avoided O&M costs (including environmental and subsidies reduction)

- Project Impact (industrial production)

-Utility Side

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-Utility Side-Collection rate & billing costs (including charging costs)-Commercial losses (fraud/theft)-Distribution grid costs (investment & other O&M)-Cross subsidies

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IMPLEMENTING IMPLEMENTING -- ENERGY EFFICIENCY PROJECTSENERGY EFFICIENCY PROJECTS

- Identifying Partnerships/stakeholders (to reduce risks and leverage the resources and results):

-Community/ hiring local people-NGO’s /International Agencies

- Inserting the project in governmental programs:-Housing (federal, state and municipal levels)-Environment

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-Environment-Industry

- Manufacturers / selecting technology (incl. minimum standards x price)

- Information

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Northeast of Brazil

Founded in 1960 and privatized in 1997

Concession area of 563,374 km 2

CoelbaCoelba

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4,4 million clients (14 million people)

200,000 new clients in 2008

55% of clients are low-income (<80 kWh/month, 140,000 connection/yr, 14% consumption)

Net revenues = € 1.5 billion/yr

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WHY TARGET LOW INCOME HOUSEHOLDS?

- Difficulty to pay for electricity (default and theft)

- A segment with high customer (number) share and high growth r ates

- Relevant potential to achieve energy savings through infor mation and

education and intervention (equipmt replacement)

- Better to achieve efficient consumption than higher, non- sustainable (ornon -payable) consumption levels

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non -payable) consumption levels

Search for Business Sustainability

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ENERGY EFFICIENCY PROJECTSENERGY EFFICIENCY PROJECTS

COELBA’s main actions focused on low-income communities:

Coelba Agent Project

1.1 Retrofitting internal electric wiring and CFL’s donation

1.2 Information - Raising community awareness about energy savings and default reduction

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1.3 Commercial Assistance – Service Request (keeping customer records, charging, invoicing and supplying)

1.4 Refrigerator Replacement

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RESULTS RESULTS –– COELBA AGENT SALVADOR (PHASES 1,2 AND 3)COELBA AGENT SALVADOR (PHASES 1,2 AND 3)

Average Consumption of Communities assisted by the Coelba Agent Project

90

100

110

120

kWh/

mon

th

}17%

Rationing betw een mar/01 and feb/02

8

40

50

60

70

80

jan/

01

mar

/01

may

/01

jul/0

1

sep/

01

nov/

01

jan/

02

mar

/02

may

/02

jul/0

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sep/

02

nov/

02

jan/

03

mar

/03

may

/03

jul/0

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sep/

03

nov/

03

jan/

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mar

/04

may

/04

jul/0

4

sep/

04

nov/

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jan/

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kWh/

mon

th

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END USES PATTERN CHANGES FROM 1999 to 2005END USES PATTERN CHANGES FROM 1999 to 2005COELBA AGENT SALVADORCOELBA AGENT SALVADOR

Consumption by End Use

OTHERS6%

1999

OTHERS20%

2005

Reduction in electricity

intensity: 17%

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LIGHTING51%REFRIGERATION

43%

REFRIGERATION38%

LIGHTING42%

20%2005

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Potential market in Bahia: 2,000,000 lowPotential market in Bahia: 2,000,000 lowPotential market in Bahia: 2,000,000 lowPotential market in Bahia: 2,000,000 low----income clients with, income clients with, income clients with, income clients with, at least, 40% badly maintained refrigerators:at least, 40% badly maintained refrigerators:at least, 40% badly maintained refrigerators:at least, 40% badly maintained refrigerators:

REPLACEMENT OF REFRIGERATORS AND CFL BULBS IN LOW-I NCOME COMMUNITIES

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LOW-INCOME COMMUNITIES

Table 3 - Estimated Average Consumption, without Energy Efficient Equipments

Time of Use (hours) Equipment

Power (W) Hours/day Days/month

Monthly Consumption

(kWh)

% Consumption

Light Bulbs in Living Room and Kitchen

60 6 30 10.80 15.50

Light Bulbs in Bedroom 60 1 30 1.80 2.60

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Average cost: US$ 7/month

(2 x affordable electricity bill)

Light Bulbs in Bathroom 60 1 30 1.80 2.60

Old Refrigerator

138 12 30 49.68 71.10

14” TV 48 4 30 5.76 8.20 TOTAL 69.84 100.00

Source: COELBA 2006

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LOW-INCOME COMMUNITIES

Table 5 - Estimated Average Residential Consumption with Energy Efficient Equipments

Time of Use (hours)

Equipment Power

(W) Hours/day Days/month Monthly

Consumption (kWh)

Consumption(%)

Light Bulbs in Living Room and Kitchen

15 6 30 2.70 8.20

Light Bulbs in Bedroom 15 1 30 0.45 1.40

Light Bulbs in

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Estimated Energy savings: 50%

& Elect Bill Reduction: 65%

SUSTAINABLE LEVEL

Light Bulbs in Bathroom 15 1 30 0.45 1.40

New Refrigerator

88 9 30 23.70 71.70

14” TV 48 4 30 5.76 17.40 TOTAL 33.06 100.00

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Refrigerator Replacement Project• 17,000 – 270 - liters EE fridge and 60,000

CFL’s were replaced• The CFC -12 gas is collected from the old

refrigerators for recycling and the scrap metal is sold.

• The money raised goes to income generation projects in low-income communities.

• Recycling of 400 kg of CFC-12 gas

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Project ResultsAverage consumption in kWh of clients who substituted their refrigerators in July /2006

87,3291,88

95,2698,65

102,82100,20

92,55

86,76

60,6062,89

65,3369,62

73,87 74,52 73,1770,66 69,31 68,87 68,85

89,8992,57 92,19

87,2983,54 81,81 82,36

85,23 87,2090,35

92,95 93,03 91,3793,85 91,75

87,74

73,8975,27

106,34 106,54

65,49

89,35 87,42 87,71

80,78

89,0487,69

85,8184,65

50

60

70

80

90

100

110

120

kWh

157.367 clients w ith regular consumption betw een jan/06 and sep/07 w ere

Period after substitution of refrigerators Regular consumption below 80 kWh

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Refrigerator substitution started in July 2006, reducing average monthly consumption from 100 kWh to 70 kWh

30

40

out/05

nov/0

5dez

/05

jan/0

6fe

v/06

mar

/06

abr/0

6m

ai/06

jun/0

6

jul/0

6ag

o/06

set /0

6out/

06nov

/06

dez/0

6jan

/07

fev/0

7m

ar/0

7ab

r/07

mai/

07jun

/07

jul/0

7ag

o/07

set /0

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Substituted Refrigerator Did Not Substitute Refrigerator

157.367 clients w ith regular consumption betw een jan/06 and sep/07 w ere analysed, of w hich 573 had their refrigerator substituted.

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Project impact (2006)

Community: Castelo Branco

93,1388,11

67,51

59,82 58,62 59,60 60,09

61,84

405060708090

100

kWh

/mon

th

15

-10203040

Jun Jul Ago Set

kWh

/mon

th

Received new fridge in Jul/06 Did Not Received

Collection rate: from 77,7% to 87,1%

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The Refrigerator Replacement Project was recognized as an Exemplary Project at the commemoration of the 20th anniversary of the Montreal Protocol, with other 39 projects worldwide.

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� Economic � Postponed Investments� Collection Rate increase � Commercial losses reduction

� Customer side� Reduction in electricity cost up to 75%

� Environment� CFC12 (recycled and avoided leakage)

Overall Results

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� Replacement of old refrigerators and incandescent (scraped)� Avoided CO2 emissions

� Market Push for efficient appliances � lowering prices and new models for low income customers

� Project replicated by several utilities in Brazil

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Key Points – Utility Side

�EE Fund�Focusing on the Demand Side (end use & income

profiles)�Local community involvement�Planning, logistics and monitoring

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�Existence of labelling program (from PROCEL)�Scalability

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NEXT STEPS

�Continue monitoring and ex-post evaluation�Design of finance mechanism for leveraging the

results� Incentive design of new/efficient products and

services for low income population

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services for low income population

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Income Generation Project: Moradas da LagoaProceeds from scraped refrigeratorsCOELBA partners: USAID, UNDP, SECOMP-BA, UNIFACS.

Label/brand

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Plant building

Team

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Praia do Forte – Bahia

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Thank you!

www .neoenergia .com

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www .neoenergia .com

Antonio Pinhel

[email protected]