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
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
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
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
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
Northeast of Brazil
Founded in 1960 and privatized in 1997
Concession area of 563,374 km 2
CoelbaCoelba
5
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
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
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
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
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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
2
sep/
02
nov/
02
jan/
03
mar
/03
may
/03
jul/0
3
sep/
03
nov/
03
jan/
04
mar
/04
may
/04
jul/0
4
sep/
04
nov/
04
jan/
05
kWh/
mon
th
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
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
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
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.
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.
� 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
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
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
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