ENERGY EFFICIENCY IN BRAZIL MAIN RESULTS, …siteresources.worldbank.org/EXTENERGY2/Resources/4114199... · ENERGY EFFICIENCY IN BRAZIL MAIN RESULTS, FINANCING ASPECTS AND FUTURE

April 7th 1999 – Washington, DC

Jorge Amilcar Boueri da RochaAssistant Operation DirectorDeputy Executive Secretary of PROCEL

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ENERGY EFFICIENCY IN BRAZILMAIN RESULTS, FINANCING ASPECTS

AND FUTURE TRENDS

11)The Scope of Eletrobrás in the new Power Sector Model

2)The Scope of Procel

3) Financing Aspects3.1) Grants Support3.2) RGR

•Conditions•Projects

3.3) Utilities Energy Efficiency Fund4) Future Trends

4.1) Targets4.2) Market consolidation – World Bank

loan and GEF Fund4.3) CO2 Reductions

CONTENTSCONTENTS 2

The Scope of EletrobrThe Scope of Eletrobráás s in the new Powerin the new Power SectorSector

ModelModel

PROCELPROCEL3

BRAZIL AND THE ELECTRICITY BUSINESSBRAZIL AND THE ELECTRICITY BUSINESS4

Ministry ofMines and Energy

ELETROBRÁS

Ministry ofMines and Energy

ELETROBRÁSCOORDINATION

Expansion PlanningTelecombusinesIsolated Systens

PROCELEnergy conservationAnd efficiencyProjects and policies

RURAL ELETRIFICATION

R & DElectric powerResearch centerCEPEL

FINANCING AGENCY•Utility financingResources managementUtility share holding

ENVIRONMENTAL POLICY

BINATIONAL ENTERPRISEOwnership of 50% Itaipu

REGIONAL INTEGRATION INTERNATIONAL COOPERATION

NUCLEAR POWER GENERATIONHOLDING

ELETRONORTE

CHESF

FURNAS

ELETRONUCLEAR

ELETROSUL

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The Scope of ProcelThe Scope of Procel

PROCELPROCEL6

PROGRAM TOCOMBAT THE WASTE

OF ELECTRICITY

INSTITUTIONAL VIDEOVHS - 13’

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FINANCING ASPECTSFINANCING ASPECTS

PROCELPROCEL8

ENERGYENERGY EFFICIENCYEFFICIENCY FINANCINGFINANCINGSOURCESSOURCES

ELETROBRÁS Grant Support

RGR Financing Fund

Utilities Energy EfficiencyInvestiments

FINANCINGFINANCING9

ELETROBRÁS GRANT ELETROBRÁS GRANT During the period 95 – 98US$ 50 millions, for:

• Demonstrations Projects to raise interestin the Energy Efficiency Market

• Marketing actions ( Procel brandrecognition 30%, Researches, etc.)

• Laboratories infrastructure – Appliance Labelling Program and Development of Manufacturers Voluntary agreement involving energy efficiency minimum levels.

Training

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RGR FINANCING FUNDRGR FINANCING FUND

RGR (Global Reversal Fund)

Fund Managed by Eletrobrás to finance Efficiency Projects on End Use.

Projects Financed 94 – 98

US$ 249 millions

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RGR - PROJECTS FINANCERGR RGR -- PROJECTS FINANCEPROJECTS FINANCEY E A R P R O J E C T S

N ª

P R O J E C T S

V A L U E

U S $ x 1 0 0 0

1 9 9 4 M e t e r 4 6 . 1 7 4

S u b t o t a l 1 9 9 4 4 6 . 1 7 4

1 9 9 5

M e t e r

D S M

P u b l i c B u i l d i n g s

9

2

1

1 2 . 3 1 3

2 7 2 0

5 6 8

S u b t o t a l 1 9 9 5 1 2 1 5 . 6 0 1

1 9 9 6

M e t e r

S t r e e t L i g h t i n g

D S M

P u b l i c B u i l d i n g s

1 2

1

4

3

2 7 . 6 2 5

5 . 2 4 4

1 . 1 8 4

1 . 4 8 0

S u b t o t a l 1 9 9 6 2 0 3 5 . 5 3 3

1 9 9 7

M e t e r

S t r e e t L i g h t i n g

D S M

P u b l i c B u i l d i n g s

T e c h n i c a l L o s s R e d u c t i o n

1 2

1 6

1 0

4

2

2 3 . 8 8 9

3 3 . 7 7 4

1 1 . 0 9 9

7 5 4

9 5 4

S u b t o t a l 1 9 9 7 4 4 7 0 . 4 7 0

1 9 9 8

M e t e r

S t r e e t L i g h t i n g

D S M

P u b l i c B u i l d i n g s

T e c h n i c a l L o s s R e d u c t i o n

2

3 9

2 6

1 4

8

2 . 2 3 9

7 4 . 7 2 4

3 0 . 4 7 9

6 . 6 9 4

8 . 0 7 4

S u b t o t a l 1 9 9 8 8 9 1 2 2 . 2 1 2

T O T A L 1 6 9 2 4 9 . 9 9 0

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UTILITIES INVESTMENTS UTILITIES INVESTMENTS

Contractual condition for distribution Utilities demands a minimun Annual investment in energy efficiency Projects.

The annual investments corresponds 1%of the Utility Annual Revenue (less tax),which represents the amount of US$ 147 millions / year.

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Annual Program Maximuns and Minimuns (98/99)

Annual Program Maximuns and Minimuns (98/99)

≥ 0,25 % of Rao (*)

(Demand)

Remainder(Supply)

≥ 1% of Rao (*) At least 30% for reduction/demand

displacement/new tariff modalities (regions: South, Southeast and Center West),orAt least 10% for reduction/demand displacement/new tariff modalities (Regions North and Northeast).

Remainder: Other projects on supply side.

At the most 0,125% of RAo for Public Lightingand Marketing.

At least 0,025% of RAo for Industrial Sector.

At least 0,025% of RAo for Residential Sector.

At least 0,025% of RAo for Public Building.

Remainder: Other projects on demand side.

* REVENUE LESS TAX

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UTILITIES INVESTMENTSUTILITIES INVESTMENTS

•• 63 63 Distribution Utilities must present the Distribution Utilities must present the Annual Plans in energyAnnual Plans in energyefficiencyefficiency

•• Until marchUntil march 99 a total99 a total ofof 1717Utilities have presented theirUtilities have presented theirEfficiency PlansEfficiency Plans..

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FUTURE TRENDSFUTURE TRENDS

PROCELPROCEL16

PROCEL’S GOALS1999 - 2002

PROCEL’S GOALS1999 - 2002

19991999200020002001200120022002

TOTALTOTAL

20992099230923092540254027942794

97429742

487487532532580580634634

22332233

58,858,870,670,670,670,676,576,5

276,5276,5

ENERGYENERGY EQUIVALENTEQUIVALENT BUDGETBUDGETYEAR SAVINGSYEAR SAVINGS POWER PLANTPOWER PLANT U$ MILLIONSU$ MILLIONS

GWhGWh//yryr MWMW

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REVITALIZATION WAS ACHIEVED 95 - 98

CHALLENGE1999 - 2002

MARKET CONSOLIDATION

♦ Energy Efficiency Law be approvedend 99

♦ World Bank Loan and GEF Funds

- 200 Esco´s performance contract- Financing Fund Working- Technologies Demonstration- Best Practice Implemention- Marketing Transformation- Brand Recognition

REVITALIZATION WAS ACHIEVED REVITALIZATION WAS ACHIEVED 95 95 -- 9898

CHALLENGECHALLENGE1999 1999 -- 20022002

MARKET CONSOLIDATION

♦ Energy Efficiency Law be approvedend 99

♦ World Bank Loan and GEF Funds

- 200 Esco´s performance contract- Financing Fund Working- Technologies Demonstration- Best Practice Implemention- Marketing Transformation- Brand Recognition

PROCELPROCEL18

WORLD BANK LOAN AND GEF GRANT(FIRST PHASE)

WORLD BANK LOAN AND GEF GRANT(FIRST PHASE)

Costs Bank/GEFFinancingComponent Category

US$ M % ofTotal U$ M % of

Component

AA.. DDeemmoonnssttrraattiioonnPPrroojjeeccttss

PPhhyyssiiccaall,, iinnssttiittuuttiioonn--bbuuiillddiinngg 9900..22 7722 4433..44 IIBBRRDD

33..33 GGEEFF 5522

BB.. CCoorree SSuuppppoorrtt PPoolliiccyy,, iinnssttiittuuttiioonn--bbuuiillddiinngg 2200..22 1166 1100..22 GGEEFF 5500

CC.. CCaappaacciittyy--bbuuiillddiinngg IInnssttiittuuttiioonn--bbuuiillddiinngg,,pprroojjeecctt mmaannaaggeemmeenntt 1155..11 1122 66..55 GGEEFF 4433

TToottaall 112255..55 110000 4433..44 IIBBRRDD2200..00 GGEEFF 5511

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PROCELPROCEL

COCO22 REDUCTIONREDUCTION

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PROCEL’S Contribution to reduce the Brazilian Power Sector GHG EmissionsPROCEL’S Contribution to reduce the

Brazilian Power Sector GHG Emissions

Estimated avoided CO2 equivalent emissions by PROCEL in2020 will be 98 Mton. This corresponds to nearly 7 times thetotal power sector emissions in 1998.

Considering the accumulated GHG emissions only within the period 1990 - 2009, meeting PROCEL’s targets can reduce by 31.6% the overall emissions from the Brazilian power sector.

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PROCEL’S POSSIBLE ROLE PROCEL’S POSSIBLE ROLE First, as a project proponent preparing energy efficiency

projects from PROCEL.Second, as national support entity responsible for

consolidation of small individual enterprises projects.Institutional support to big enterprises who may wish so.

Finally, PROCEL can be one of the authorities approved by Clean Development Mechanism executive council toverify a project´s emission reduction potencial and certify the efective emissions reduction.

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