1~~ 5 t 8
EnergySector Management Assistance Programrie Public Disclosure Authorized Public Disclosure Authorized
Mexico EnergyEfficiency Management TechnicalAssistance to the Comision Nacional para el Ahorro de Energia (CONAE)
Public Disclosure Authorized Report No. 180/96 Public Disclosure Authorized
Ft L.. P=...... JOINT UNDP/WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP)
PURPOSE
The Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) is a special global technical assistance program run by the World Bank's Industry and Energy Department. ESMAP provides advice to governments on sustainable energy development. Established with the support of UNDP and 15 bilateral official donors in 1983, it focuses on policy and institutional reforms designed to promote increased private investment in energy and supply and end-use energy efficiency; natural gas development; and renewable, rural, and household energy.
GOVERNANCE AND OPERATIONS
ESMAP is governed by a Consultative Group (ESMAP CG), composed of representatives of the UNDP and World Bank, the governments and other institutions providing financial support, and the recipients of ESMAP's assistance. The ESMAP CG is chaired by the World Bank's Vice President, Finance and Private Sector Development, and advised by a Technical Advisory Group (TAG) of independent energy experts that reviews the Programme's strategic agenda, its work program, and other issues. ESMAP is staffed by a cadre of engineers, energy planners, and economists from the Industry and Energy Department of the World Bank. The Director of this Department is also the Manager of ESMAP, responsible for administering the Programme.
FUNDING
ESMAP is a cooperative effort supported by the World Bank, UNDP and other United Nations agencies, the European Community, Organization of American States (OAS), Latin American Energy Organization (OLADE), and public and private donors from countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom, and the United States.
FURTHER INFORMATION
An up-to-date listing of completed ESMAP projects is appended to this report. For further information or copies of completed ESMAP reports, contact:
ESMAP c/o Industry and Energy Department The World Bank 1818 H Street N.W. Washington, D.C. 20433 U.S.A. TABLE OF CONTENTS
PREFACE
EXECI. UTIVESUMMARY ...... 1I Background ...... 1 Objectives and Methodology ...... 1 Implementation...... 2 Key Issues ...... 3 Summary of Recommendations...... 4 Institutional Reorganization...... 4 Funding...... 5 Creation of Policy and Planning Unit ...... 5 Development of Proposals for World Bank/IDB Loan ...... 6 Next Steps...... 7
II. CONSULTANTS REPORTS Strengthening Mexico's National Energy Efficiency Function by John Armstrong Progamme Planning, Targeting and Monitoring by Andrew Gilchrist
ANNEXES I. Executive Summary in Spanish II. Trip Report: Mexican Mission to Southeast Asia mII. ESMAP Activity Initiation Brief Preface
This report records the outputs of a technical assistance project in Mexico executedby the World Bank's Energy SectorManagement Assistance Program (ESMAP) and financed by the German Goverrnent. The activityprovided expert assistanceto the ComisionNacionalpara el Ahorro de Energia (CONAE),Mexico's principalagency for energy conservation, in the specific areas of insitutional and policy analysis, and in program planningand evaluation.The specificissues arose from a previous World Bank review of CONAE's organization and programs, as well as from the institutional adjustmentsthat had to be made in responseto the recent economiccrisis. It is considered that the most important outputs of the acitvitywere the personalinteractions of ESMAP expertswith CONAEofficials and staff duringthe missionsto Mexico, and not the written reports themselves.These reports by the main consultantsare neverthelessincluded in this document.
The ESMAP activity benefitedimmensely from the support of CONAE officials, particularlyFemando Bueno,the formerTechnical Secretary, and Odon the Buen, who is now Officer-in-Charge.The technicalcontributions of the staff, particularlyDr. Claudia Sheinbaum,Guilermo Rodriguez, Ricardo Escobar, Agustin Acosta, GuillermoOrtega and others too manyto be namedhere are likewisewell appreciated.
The WorldBank/ESMAP staff who managedthe activityare Ernesto Terrado and AnkeMeyer. Supportwas providedby LA2INthrough Luis Luzuriaga. ExecutiveSummary
Background
CONAE,the nationalenergy conservation commission in Mexico,was set up in 1989 as an interministerialagency, integrated by the Department of Energy, Mines and Parastatal Industries (SEMIP)-now simply the Department of Energy-and the Departments of Treasury (SHCP), Commerceand Industry (SECOFI), Communication and Transportation(SCT), SocialDevelopment (SEDESOL) and PublicEducation (SEP), as well as the Mexico City government,the nationalpetroleum company PEMEX and the national electric utility CFE. The Secretary of Energy is CONAE's President while a TechnicalSecretary acts as chief executiveofficer.
In June 1994, CONAE's managementwas replaced by an interim management team, headedby FernandoBueno. The team assumedan active't.aretaker" role, providing continuityto ongoingprograms and implementingsome limited measuresto improvethe administrativeand technicaleffectiveness of the institutionprior to the appointmentof the new permanent management. In January 1995, after Presidential elections and the assumptionof the new federaladministration, the interimmanager was formallyappointed TechnicalSecretary of CONAE. However, in December 1995, after completionof the ESMAP main missionfor the present technicalassistance activity,Fernando Bueno was transferred to the Department of the Interior. Mr. Odon de Buen was named acting TechnicalSecretary and stillhas this position as of this writing.
These organizationalchanges were largely induced by the national financial and economiccrisis of 1994/1995that severelyreduced budgetary support for ma,;y public agenciesand programs,including CONAE and its activities.During this period *'ONAE's total staff complementwas reduced by about 30% as it reorganized *.selfinto a leaner agency. Among the major changes was the abolition of FONA: CONAE's technical implementingarm. Programs that required significantinvestments, such as cogeneration, have been generallyput 'bn hold".However, some programs,such -;sthat for transport, have even expandedbecause the higherprices of transport fuels caused by the crisis have providedadded incentivesfor conservation.In a period of economicdifficulties, energy conservationis increasinglyseen as a key instrumentfor improvingthe competitivenessof Mexicanindustries. In sum, the economicdownturn has not diminishedthe relevance of energy conservationefforts in Mexico but has underscoredthe need to make CONAE's programs more focused and sustainable.In turn, the need to put CONAE on a firmer institutionalfooting so that it can discharge its functions effectivelyhas taken on some urgency.
Objectives and Methodology
The original objective of the ESMAP technical assistance activity was to help CONAEaddress some of the key deficienciesidentified in the 1994World Bank reviewof its
1 orgaizational setup and operations,particularly the need to delineateCONAEs institutional identityand strengthenits capabilityfor strategic planning and internal evaluation of its programs.The adventof the economiccrisis did not changethese basic objectives.Some of these issueswere alreadybeing examinedby EEC expertsin 1994/95as part of a bilateral programand CONAEitself had alreadyinitiated some effortsin this direction,including the preliminaryexamination of optionsfor institutionalreorganization and the draftingof an energyefficiency law. It was thoughtthat complementaryinternational expertise provided by the ESMAPactivity would strengthen these ongoing efforts and thereby accelerate the process. The expertiseto be providedwould be in the specificareas of institutionaland policyanalysis, and energymonitoring and targeting. In addition,resources were to be providedfor one to two CONAE officialsto undertakea studytour of energyefficiency institutions in Asia. In the courseof the ESMAPactivity, the possibilityof inclusionof an energyefficiency component in a proposed WB/IDBenergy sector loan emerged,with CONAEand FIDE as the potential beneficiaries.Consequently, the task of assistingCONAE to developa preliminarypackage of activitiesfor financingunder the loanwas addedto the ESMAPactivity.
Implementation
The above objectiveswere reaffirmed,with some revisions in scope and focus, during an ESMAP mission in May 1995. Specifically,it was agreed with CONAE that focuswould be in:
• examinationof options for reorganizingCONAE into a more sustainableintermediary institution for energyefficiency;
- assistancein the creation of a planningunit withinCONAE, including definition of its specificfunctions and initialprogram of work. It is in this context that assistance in developingan energytargeting and monitoringprogram would be examined;
- assistancein preparationof a packageof investmentand technicalassistance proposals for possibleinclusion in the forthcomingWorld Bank/IDB energy sector loan.
In September 1995, a two-week study tour to energy efficiencyinstitutions in Korea, Thailandand the Philippineswas conducted as part of the TA, with one CONAE officialand one officialfrom the Secretaria de Energia (SE) participating. In their trip report, the officials acknowledgedthe usefulness of the experience and cited various lessons learned in these countries that could be applied to the Mexican program. They were impressedby majorachievements of the energy conservationprograms in Korea and Thailandthat have surpassedthe level of achievementsin Mexico. Of particular interest were the legal frameworkwithin which the energyefficiency institutions were created, as well as the fundingmechanisms for their programs.In the three countriesvisited, it was noted that improvementsin energy efficiencywere effectivelyused to further energy policy goals as well as environmental,technology and economicgoals. The full trip report in Spanishis providedin AnnexI, with a summaryEnglish translation.
2 The main ESMAP missionwas fieldedfrom September25 to October 6, 1995.It consistedof Emesto N. Terrado, PrincipalEnergy Planner, World Bank (task manager), John Armstrong, Director, Hagler-BailleyConsulting, Inc. (policy and institutions), Andrew Gilchrist,Manager, Management,Transport and Training Section,U.K. Energy Technology Support Unit (energy monitoring and targeting) and George Courville, Associate Director, Energy Division, Oak Ridge National Laboratory (energy conservationin buildings).The participationof Dr. Courvillewas an additionalityto the TA tasks and was limited to the topic of energy efficiencyin buihlings. During the mission,three seminarsat CONAE were given by the ESMAP experts: evolution and perspectivesof energy efficiency institutions, setting of energy efficiency targets and monitoringof energysavings, and on passivesolar buildingdesign.
The ESMAP experts interacted extensivelywith CONAE staff working in the various subsectors.Priority attention was paid to assisting CONAE staff engaged in preparinginitial documentsfor the draft energy efficiencylaw. Advice was provided by ESMAP experts during these meetings; recommendationson issues requiring more analysiswere later providedin written reports submittedto CONAE. These consultants' reports are providedin fullin the secondsection of this document
Key Issues
The key issues previously identified and discussed during the main mission includedthe following:
CONAE has a weak legal foundation.Having been establishedby Presidential decreeit has limitedlegal authority.
Funding for CONAE is unstable and subject to fiscal uncertainty. CONAE is a body withinthe Ministryof Energy and governedby an interministerialboard. Its annual fundingis obtainedby submittingrequests to the governingboard with each agencyon the board contributingto the total fundingfrom their respectivebudgets. In the past, some agencieswere able to commit funds to CONAE while others were unable to contribute. Often, CONAE did not know until well into the fiscal year how much funds would be committed and disbursed.Furthermore, the budget appears inadequate,given CONAE's broad range of responsibilitiesfor energyefficiency in all sectors.
CONAE has inadequate capability for planning and evaluation. CONAE's programsare not identifiedas a result of a systematicand comprehensiveanalysis of the costs and benefitsof a wide range of programmaticapproaches and interventions. They are presentlyselected primarily on the basis of perceivedneed. The specificimpacts of the programsare also not rigorouslyevaluated. Moreover,the potentialbenefits and impacts of improvedefficiency are not fully accountedfor in the nationalplanning process because CONAE is not able to produce credible estimates for all areas of potential efficiency improvements.To date, estimateswhich have been incorporatedinto the national energy plan have been limited to the impact of cogeneration,i.e., only 4-5% of total forecast
3 energy savingsup to the year 2000, whereas the potential for efficiencyimprovement in Mexico is certainlymuch larger.
There is weak coordinationbetween the various existingenergy efficiencybodies. An exampleis FIDE, a non-governmentaltrust fund with responsibilityto implement programsto improvethe efficiencyin the use of electricity.There is potential overlap of activitieswith CONAE in a number of areas but there appears to be little coordinationat both centraland regionallevels.
Thereis potentialconflict between CONAE's regulatory role and its promotion of voluntary conservation.CONAE has no legal authority to promulgateminimum energy efficiencystandards but has managed to establish standards by utilizing a general law governingthe issuanceof standardsby any agency.Its role in testing and enforcementis less advanced but concern has been voiced over possible future conflicts between CONAE's role as enforcer of regulations and its efforts to promote voluntary energy conservationprograms in commercialand industrialfacilities.
Summary of Recommendations
The recommendationssummarized below involve measures that need to be incorporatedin the proposed energy efficiencylaw, as well as actions that need to be taken independentof the promulgationof that law.
InstitutionalReorganization
To strengthenCONAE's current institutionalstructure and fundingsituation, the three possible options are i) enhancementof the status quo, ii) creation of a non- decentralizedagency and iii) creationof a decentralizedagency.
The first option would not require any new legislation.It would require certain administrativeactions to strengthenprogram planning and evaluationcapabilities, elevate CONAE'spolicy role withinthe Ministryof Energy, and address the need for stable and increasedfunding bv setting up a line item for CONAE in the national budget. Both the second and third option would require legislationin the Mexican Congress. Under the non-decentralizedagency option (similar to CRE's new set-up), a politically and operationally autonomous agency would be established, but with adniinistrative attachmentto the Ministry of Energy. Funding would be by direct apprcpriation from Congress.
Under the third option, CONAE would be restructured as a parastatal national energy conservation agency, similar to CFE and PEMEX. This would provide the necessary autonomy on budgetary and other matters. As a parastatal, CONAE, for example,could engage in consultancywork (e.g. energy audits) and retain the generated revenues.
4 While the secondand third options clearlyprovide for greater autonomy,visibility and authority, they also appear to be less politically feasible than the first option. Enhancement of the status quo can significantlyimprove CONAE's delivery of its programs more effectivelybut on the other hand does not provide a permanent legal foundationfor the institution.
This issue requires further detailed study of the ramifications of each organizationalapproach and is best left as an exercise for CONAE to conduct. What is needed is a systematicanalysis of factors such as the degree of visibilityand centralization required; considerationsof administrativeefficiency, accountability and communications, and politicalfeasibility. These factors should then be evaluated against weighted criteria that include the option's ability to: address the funding stability problem, elevate CONAE's policy role, and improve program planning and implementation.Political feasibilityis clearlya major considerationand, comparedto the ESMAP experts, CONAE has a decidedadvantage in makinga finaljudgment on this matter.
Funding
CONAE's current fundinginstability undermines the planningeffort due to wasted time in developingalternative financing scenarios, and underminesthe effectivenessof programswhen cutbacks are made midstreamin implementation.The possible solutions are inextricablylinked to the institutionalrestructuring that CONAEis finallyable to make and are implicit in the discussions above. One issue needs to be pointed out: the decentralizedstructure where CONAEis able to take in and retain revenuesfor services appearsattractive but carriesthe risk of CONAEbeing placed in direct competitionwith private firms offeringthe same services.This underminesone of CONAE's basic goals which is to developthe marketfor energy conservationservices. A possibilitythat merits more detailedexploration is the creation of an Energy ConservationFund generatedby a small tax on, for example, petroleum sales. Such an approach has been successfully implementedin Brazil, Korea, Thailand and other developing countries. Aside from fundinginstability the issue of fundinglevel must be addressed,as well. CONAE's current budget of about $7 million is clearly inadequate if Mexico desires to accelerate the improvement of national energy (and economic) efficiency on par with emerging economiesof its kind.
Creationof Policyand PlanningUnit
The capabilityto develop effective energy efficiencypolicy is intimatelylinked with the capabilityto do energy efficiencyplanning as they both require sufficientdata and in-house analyticcapability. While the responsibilityof developinga national energy efficiencypolicy cannot be limitedto CONAE,it should clearlyhave the lead. Currently, there are no mechanismswithin CONAE for setting medium-and long-termtargets for achievingenergy savings; annual plans are based largely on activitiesundertaken during the previous year. No projections or strategies for energy end-use by sectors exist althoughan energyend-use model is currentlyunder development.
5 The creation of a policy and planningunit in CONAE's structure could address these needs. The unit would:
(a) spearheadthe developmentof policiesrelated to energyefficiency technologies and practices, end-use regulations,appliance, machinery and buildingenergy regulations and other specificmatters;
(b) identify key energy efficiencytarget areas and coordinate an agency-wide planningprocess leadingto specific subsectorprograms based on common assumptions and consistent methodologies;
(c) establishand maintain comprehensivesector databases through surveys and other means.While progress has been made in the industrialand transport sector, a good databaseon the buildingsector is stilllacking; and
(d) coordinate the setting of overall savingstargets, the economic evaluationof planned projects, and the assessmentof operationaleffectiveness and savings achieved. This is the energytargeting and monitoring(EMT) task that should be a key operational responsibilityof the policy and planning unit. The energy end-use model now being developed with the capabilityto make forecasts up to the year 2005 would be an importantinitial tool for EMT. Another is the utilizationof the U3Es to providefeedbacks on the potential for energy savings in the regional markets. Later, integrated resource planning (IRP) based models can be used to prepare estimatesof the total potential for energy efficiencysavings which could then be integrated into the national energy sector plan. The EMT experiencein the U.K. is describedin some detail in Andrew Gilchrist's report (attached) and provides some lessonsthat could be useful to the developmentof a workableEMIT program by CONAE.
Developmentof Proposalsfor IBRD/IDBEnergy Loan
The mission was requested by IDB and the Bank's energy sector operating divisionto assist CONAEin developingan energy efficiencyinvestment /TA package that could be proposed as a component of the forthcomingenergy sector loan. Since both broad and detailedcriteria for this potentialloan componentare still being determinedno guidelinesfrom IBRD/IDBfor the type and size of subprojectsare available.What seems certainis that FIDE will be requestedto submita proposal for DSM-type of activitiesand CONAEfor energy efficiencyactivities in the other subsectors.
Two possibleinvestment areas emergedfrom discussionswith CONAE staff: (1) financing of combustion/steam efficiency improvements in industry, and (2) the establishmentof privatesector operatedtesting centers. The combustion/steamefficiency investmentwould involve horizontaltechnologies and therefore the size of the project could be adjustedto the size of availablefunds for the component.USAID has allocated $0.5 millionfor preparatorywork on this topic and CONAE has been chosen to be the
6 lead agency in implementingthe task. The results of the USAID activitywill clearlybe a majorinput to the final definitionof the investmentproposal for the IBRD/IDBproject. The establishment of testing laboratories will considerably strengthen CONAE's regulatoryand enforcementroles regardingenergy efficiency standards..
On the TA side, two high priority areas that could be proposed are (1) strengtheningof CONAE's planningfunctions, and (2) strengtheningof regional U3E operations. The first would include funding of important sector studies, including a deeper examinationof barriers to energy efficiencyinvestments by the private sector. Funding for the second activity would enable additional energy audits, training and promotional activitiesto be carried out by U3E regionalunits that is clearly one af the strongerpoints in the current CONAE set-up.
Next Steps
Using the findings and recommendationof the present report CONAE would continue with the: (1) finalizationof the draft efficiency law; (2) initiation of some important functions of the planning unit, and (3) finalizationof the IBRD/IDB loan component package. Some additional expert assistance may be needed and could be provided through the existing USAID work. ESMAP has agreed to provide further support in reviewingthe loan component package to be prepared by CONAE and in interfacingwith WorldBank/IDB project officers.
7 STRENGTHENING MEXICO'S NATIONAL ENERGY EFFICIENCY FUNCTION
Prepared for:
Energy Sector Management Assistance Program
The World Bank
December, 1995
Prepared by:
John R. Armstrong
Director
Hagler Bailly Consulting, Inc. Introduction
TechnicalAssistance Assignment
This report was preparedby Mr. John Armstrongas part of a technicalassistance assignmentto Mexico for the Energy SectorManagement Assistance Program (ESMAP) of the World Bank. Mr. Armstrongwas part of a team of experts, including Emesto Terrado, Principal Energy Planner, World Bank, Dr. Andrew Gilchrist, Manager, UK Energy TechnologySupport Unit, and Dr. George Courville,Oak Ridge National Laboratory, who conducted a technical assistance mission in Mexico during the period September 25-October5, 1995.Mr. Armstrong'sterms of referencefor this assignmentwere the following:
1. Provide technical and other inputs to CONAE's current efforts to prepare an energy efficiency law that, among others, seeks to define a more stable institutionalbasis for CONAE.Specific areas to be addressedinclude:
* need for stable funding * relationshipto FIDE and other relevantagencies * role in policy development * role in programdesign and implementation * role in energyefficiency regulation * role of regionalof fives
2. Provideadvice on how best to set up a small planning unit within CONAE, including its functions and responsibilities,position in the organization and staffing, and its working relationship with other units within CONAE. Suggest a program of activities for the planningunit in the short term.
3. Preparereport of the missionand submitto the Bank.
Current Status
Mexico is currently experiencinga severe economicdownturn, includinga significant devaluation of the Peso, high interestrates and low to negativeeconomic growth. This atmospherehas increasedthe sense of urgency and importanceof the need to improve energy efficiencyand reduce waste. Governmentofficials are increasingly looking to CONAE(the National Commissionfor Saving Energy) to lead this effort to improve efficiency, including the design and implementation of national programs, policy recommendationsand efficiencyimprovement estimates as inputs to the national energy planningprocess.
I However, CONAE faces a number of challenges in meeting these new expectations. These include:
* Funding for the agency is not stable or certain. CONAE was established by Presidential decree as a body within the Ministry of Energy governed by an interministerial board. Annual funding is obtained by submitting requests to the Board with each agency on the board contributing to the total funding request from its own budget. Historically, some agencies are able to commit funds to CONAE and others are not. Often, CONAE does not know until well into the fiscal year how much its budget will turn out to be.
* CONAE has a weak legal foundation. Having been established by decree, it has limited legal authority. A decree is also easily withdrawn and does not necessarily have the full support of Congress behind it.
* There is inadequate capability for planning and evaluation. CONAE's programs are not identified as the result of a comprehensive analysis of the costs and benefits of a wide range of programmatic approaches and interventions. They are selected primarily on the basis of perceived need. The specific impacts of the programs are also not rigorously evahdated, thus statements regarding the agency's effectiveness can be subject to criticism. Equally important, the potential benefits and impacts of improved efficiency are no' fully accounted for in Mexico's national planning process because CONAE is not able io produce credible estimates for all areas of potential efficiency improvements. To date, estimates which have been incorporated into the national plan have been limited to the impact of cogeneration, i.e., only 4-5%, whereas the potential for efficiency improvement in Mexico is undoubtedly much larger.
* Multiple agencies with responsibility for energy efficiency create increased demands for coordination and possible diffusion of authority. These agencies include FIDE, a non-governmental trust fund with responsibility for saving electricity and with its own regional offices; IIE, a governmental entity with responsibility for research related to electricity efficiency; FUNTEC, a non governmental trust fund with responsibility for promoting innovative technologies, some of which are related to energy efficiency; UCAE, the credit union for energy saving; and the U3E's, regional offices reporting to CONAE - to mention some of the more important entities with which CONAE must coordinate and cooperate.
In spite of these handicaps, CONAE enjoys strong support from the highest levels of government, from the private sector and from multilateral and bilateral donor agencies. It's programs have also been perceived by most as successful and effective. There is currently an impetus within the government to address the weaknesses in the structure and funding of CONAE in order to create a strong national institution which can adequately address the countries needs to improve efficiency in order to ameliorate the current economic crisis, improve international competitiveness and reduce environmental impacts resulting from energy production and use. The discussion which follows analyzes the issues involved in strengthening Mexico's energy efficiency function and presents recommendations on possible actions where appropriate.
2 Discussionof Key Issues
Funding for CONAE
The issue of funding for CONAE is multidimensional. First, there is the issue of the stability of the funding. Second, there is the issue of the amount of funding. And third, there is the issue of the source of funding. These issues, in turn, are intertwined with other issues involving CONAE's institutional status, for example, whether it becomes an independent parastatal such as CFE, and CONAE's basic activities and goals, for example, whether CONAE provides energy conservation services itself and receives compensation for these services as a source of revenue, risking possible competition with private firms offering the same services. These issues will be isolated to the extent possible and discussed below.
Funding Stability - The instability of CONAE's funding results in large part from its institutional structure. CONAE was created in 1989 by Presidential decree as an interdepartmental institution to promote and coordinate energy conservation and efficiency in Mexico. In order to promote coordination and involvement among agencies in the national energy conservation effort, CONAE is governed by a Board of Directors consisting of vice-minister level representatives from nine key agencies: six federal ministries: Ministry of Energy (SE), Ministry of Commerce and Industry Development (SECOFI), Ministry of Public Education (SEP), and Ministry of Finance and Public Credit (SHCP), Ministry of Communications and Transport (SCT), and the Ministry of Environment, Natural Resources and Fisheries (SEMARNAP); and three representatives from PEMEX, CFE and the Mexico City government (DDF). The Board is chaired by a representative of the Minister of Energy and CONAE is legally located within this ministry.
Funding for CONAE comes from the contributions of the agencies represented on its Board of Directors. The budgeting process involves the preparation and submittal of an annual plan and budget by CONAE to the Board. The various agencies are then asked to contribute to the funding of the plan from their own budgets. As can be expected in difficult times such as the present, agencies are forced to decide betweei funding internal activities versus contributing to the national energy conservation program. Some agencies, such as the Ministry of Energy, have consistently funded CONAE. Others have never given any of their funds to CONAE; and still others have given in the past but are now having difficulty allocating funds to CONAE. As a result of this uncertainty, CONAE must actually prepare three budgets, a high, medium and low, in order to plan for the full range of budget uncertainty.
The funding instability has several negative consequences. It undermines the planning effort and wastes time and money in unnecessary planning. More significantly, it undermines the effectiveness of programs because they often need to be cut back in midstream due to unavailability of funds. It is also demoralizing to staff, weakens the effectiveness of the agency and makes it more difficult to receive international donor funds because of the inconstancy of matching funds and implementing staff.
Several alternatives are possible for improving funding stability. One alternative is to restructure CONAE as an autonomous agency (or "decentralized" agency, in GOM parlance), similar to CFE or PEMEiE. This would enable CONAE to take in and retain revenues for services provided, such as fees for energy audits. This approach has the advantage of providing CONAE with its own funding source independent of government budgetary constraints and also provides market feedback on the need for and effectiveness of CONAE's services. The primary disadvantage of this approach is that it risks placing CONAE in direct
3 competitionwith private firms offeringthese sane services,thereby underminingone of the basic purposes of CONAE,which is to help foster the establishmentof a market driven capacity and demand for energy conservationservices.
Much discussion took place among the technical assistance team and CONAE on the issue of a decentralizedagency. Althoughthere may be other reasons to establisha decentralizedagency, it was the generalopinion of the technicalassistance team that the advantagesof having an outside source of revenues were greatly outweighedby the inhibitingeffect this would have on the developmentof Mexico's nascent energy conservationservice industry. Our recommendation,therefore, is that CONAE not use the sale of servicesas a primary means of fundingits activitiesand that this capabilitynot be included in the draft law. This is not to say, however, that all of CONAE'sservices should be provided for free. Experience with energy conservationprograms elsewherehas shown that often services that are provided for free are not valued by the customer.Thus, it may be appropriatefor CONAEto charge fees for some activities simply as a matter of enhancingcredibility and perceivedvalue by its clients. As a matter of broad strategy and intent, however,CONAE should hire private firms to provide energy conservationservices under its aegis, thereby supportingdevelopment of the energyconservation services industry rather than underminingit.
A second option to stabilize fundingis to have CONAEfunded solely by the Ministry of Energy but as a distinct line item in the Congressionalbudget. This option is made more compelling if CONAE is restructuredas what is termed a "nondecentralized"agency, similar to the recent restructuring of CRE. Currently,CONAE is consideredpart of the Ministryof Energy.As a nondecentralizedagency, it would be politically and operationallyautonomous but still receive its funding through the Ministry of Energy as a line item in the budget. This option is an improvementover the current situation in that it would give CONAEdirect budgetary authorizationand appropriationfrom Congress rather than rely on the goodwill of its Board of Directors.CONAE still would be subject to the effects of economicdownturns to the extent that they affect the budget, but this alternativeshould give it increasedstability and certainty.
A third option which relates indirectlyto CONAE'sannual operating budget is the creation of an Energy Conservation Fund. The idea of a fund is explored in more detail later. It's effect on the stability of CONAE's operating budget is that the fund would be used pay for programs, procure equipment for demonstrationprojects, provide incentives and similar non-operational items, leaving the funding for CONAE's day-to-day operations, e.g., salaries, rent, office equipment, up to direct appropriations by Congress.The amount for CONAE'soperating budget should be relativelyconstant year to year, whereas the amountof funds required for programsto help establish a strong market for energy efficiency will be relatively large in the near term and taper off as both the demand for energy efficiency services and the capacity to deliver them are developed in the private sector and the need for government intervention diminishes(see Figure 1).
The approach of separatingthe operatingbudget from the program budget has been taken by a number of countries when there was a perceivednational need to greatly strengthenthe energy conservationfunction and to accelerate market developmentand transformation.This has been accomplished primarily by the establishmentof a separatefund or source of revenuesfor the programmaticcomponent of the budget. For example,Brazil is using its RGR fund as a source of funding for expandingits demand-sidemanagement (DSM) programs under PROCEL. The RGR funds will provide PROCELwith $30-40 million per year over the next several years to help establish a strong market for energy efficiency. These funds are in
4 addition to their normal operatingbudget. Thailand,Korea and other countries have establishednational energy conservationfunds, often based on a small tax on fuels, which are administered by permanent agencies that are funded separatelythrough ordinary governmentappropriations. In the case of CONAE, the establishmentof a national energy conservationfund would enhancethe funding stability of any of the various institutionaloptions while greatly strengtheningthe countries effortsto improve energyefficiency.
FundingAmount - CONAE'sFY 95 budget is approximately$7 million. A detailed analysis of whether this amountis adequateto fund CONAE'soperational budget is beyondthe scope of this assignment.However, it can be said with reasonable confidence that this amount is clearly inadequate if Mexico desires to accelerate the improvement of national energy (and economic) efficiency on par with Brazil, Thai1 and, Korea and other rapidly developingnations. Thailand'sEnergy Rationalization fund receives approximately $40 million annually for financing demonstrationprojects and providing incentives, in addition tc the funding of the Energy ConservationCenter for Thailand and the Department of Energy Planning and Development.Similarly, Brazil's PROCEL together with Sao Paulo's Agencyfor the Applicationof Energy will receive $40-55 million annually beginning in 1996. FIDE, a non-governmentcommission and trust fund dedicated to improvingthe efficiency of electricity use iri Mexico, hiasa FY 95 budget of $10-12 million, and CFE has recently budget $80 million for the next five years for FIDE to implement DSM programs.Given CONAE'sbroader range of responsibilitiesfor energy efficiency in all sectors and fuels, by comparisonits annual budget would seem to be low. Discussionsin the fiutureneed to focus not only on its operatingbudget, however, but also on the need for short term (5-10 years) increases in programmatic funds to accelerateefficiency improvementsat a pace similarto competingcountries.
FundingSource - CONAE'sfunding currentlycomes from contributionsfrom the agencies on its Board of Directors and periodic contributions,usually for specific purposes from multilateral and bilateral donor agencies.As discussedabove, it is the fundingmechanism, not the source, which causes CONAE'sfunding instability. It is, therefore, recommended that CONAE continue to receive federal funds but that the funding mechanismbe changedto provide stability. CONAEshould not turn to providing its services on a fee basis in order to generaterevenues from a nonfederalsource. On the other hand, CONAEwould benefit greatly from the availabilityof substantialprogrammatic funds generatedfrom a specialtax on energy, for example,or from a direct appropriationfrom Congressif the former is not possible.
InstitutionalStructure
The degree of autonomyand authoritygiven to CONAEdepends on the relative importancethe Mexican governmentwishes to give to its national energy efficiency effort. Numerous discussions the technical assistance teanmhad with top government officials indicated virtually unanimr.us support for a much stronger national energy conservation function. All those questioned agreed that CONAE was the appropriateagency to lead the national energy conservationeffort but that it needed strengtheningin order to meet the new challenges. The areas in which it was felt by those questioned that CONAE should be strengthenedinclude:
* energy efficiencypolicy development * energy efficiencymarket development,including demonstration projects, inicentives,public informationand education,and developmentof a private energyconservation services industry
5 * national energy efficiencyplanning includingestimation of energy efficiency potential within the national economyas an input into the national energy sector plan * energy efficiencyregulation * energy efficiency financing.
In order to assess where CONAEneeds to be strengthened,a systematic functional evaluation should be conducted.A methodologyis suggestedin Annex A which the CONAEstaff could conduct themselvesas part of the process of developingthe draft energy conservation law. In the absence of such an analysis, institutional options will be presented and analyzed based on the series of meetings conducted by the technical assistanceteam.
Three institutionaloptions emergedfrom the discussions:
I1. Enhancingthe status quo - This wouldnot require any new legislationand would achieve the followingmeasures through administrative action:
* Maintainingthe current institutionalstructure of CONAE,i.e., a commissionlocated within the Ministry of Energy with a multi ministerial Board of Directors
* Strengthening the planning function with the addition of at least two staff and the necessary support resources sufficient to produce credible estimates of national energy efficiency potential for national energy sector planning purposes
* Strengthening the program planning and evaluation capabilities of CONAE
* Elevating the policy role of CONAE within the Ministry of Energy
* Addressing the need for stable and increased funding by setting up a line item in the national budget for CONAE and eliminating the requirement that its funds be donated by agencies comprising its board
2. Creation of a nondecentralized agency - This would require legislation that would accomplish the following:
* Establisha politically and operationallyautonomous agency. Several reporting options are possible, such as the head of the agency reporting to a board appointed by the President and comprised of both public and private representatives.
* Funding would be by direct appropriation from Congress but the agency would be fied to the Ministry of Energy and receive administrative services from the Ministry.
* Agency authorities and functions would be spelled out in law but at a minimum would include all current functions and responsibilities as well as the enhancements described in (I) above.
6 3. Creation of a decentralized agency - This would require legislation that would accomplish the following:
* Establish a completely autonomous parastatal entity similar to CFE or PEMEX
* Funding would come from direct appropriations from Congress but could include the ability of the agency to generate its own revenues through the sale of services
* Agency authorities and functions would be spelled out in law similar to (2) above
The advantages and disadvantages of each of these options are discussed below:
Enhanced status quo - This option has the advantage of being the most politically feasible. It would potentially strengthen some of the current weaknesses in CONAE and could be implemented quickly. Its disadvantages are that it does not provide a permanent legal foundation for CONAE and it does not increase the agency's visibility, level of authority or autonomy. Policy authority would be subject to the strength of the Technical Secretary of CONAE and would not be firmly established in law. Programs could still be very effective, however, and the planning and evaluation functions could be similarly strong.
Nondecentralized agency - This option has the advantage of greater autonomy, visibility and authority. Although CONAE would be administratively attached to the Ministry of Energy, its authorities would be established in law and it would have independent policy-making authority. This type of structure was recently chosen to strengthen Mexico's CRE to give it independent regulatory authority over utility tariffs and a transparent decision-making process. If political authority and accountability are important, the head of CONAE could report directly to the President. If a more politically independent agency is desired with clear links to the private sector yet still performing a coordination function among public sector agencies, the agency head could report to a board of directors comprised of both public and private sector representatives. One disadvantage of this option is that it requires the passage of legislation. However, a nondecentralized agency might be more politically acceptable the creation of a completely autonomous parastatal.
Decentralized agency - The creation of a completely decentralized agency would provide the greatest level of autonomy, visibility and authority (depending, of course, on those authorities given to it in law) for CONAE. It may very well be appropriate for Mexico at this time when, after years of neglect of energy efficiency compounded by the current economic problems, Mexico needs a very strong program to reduce waste, improve economic efficiency and international competitiveness. This structural option would potential provide the basis for broad powers and authority, including ability to generate its own revenues and engage in enforcement activities. The creation of such a strong and independent agency is generally not consistent with general trends in governance among developing nations. Most countries are in the process of downsizing government, drastically reducing the degree of government intervention in the marketplace, privatizing parastatals and introducing competition into previously politically regulated sectors such as energy. The creation of a decentralized agency for energy conservation would go against this trend but nonetheless be needed to counterbalance strong biases toward supply-side solutions to energy needs. If such an agency were established, a "sunset provision" might be included in the enabling legislation to make passage more politically acceptable. Such a provision would call for the
7 elimination of the agency after a period of time, such as 10 or 15 years, unless specifically reauthorized by Congress. This would force the reexamination of the need for such a strong government role and an evaluation of the agency's past effectiveness.
Given the complexity of determining the best institutional structure for CONAE, no recommendation can be made at this time. Nonetheless, criteria for evaluating the options are suggested which government officials and lawmakers can use in making their determination. Such criteria would include the following:
* Ability to solve funding problem - Both the nondecentralized and decentralized options would seem to offer the best hope for this.
* Ability to enhance policy role - This may be very dependent on how the legislation is written. It could be argued that the current structure or a nondecentralized agency attached to the Ministry of Energy (SE) might have a stronger potential policy influence because of its location within SE and daily access and support of SE officials. An agency completing removed from SE could potentially be ignored in the national energy sector planning process. On the other hand, if given sufficient authority, a decentralized agency could become an energy efficiency "czar", with broad powers and financial resources of its own. If CONAE responsibilities are expanded to cover renewable energy and pollution prevention, the decentralized option could give Mexico a very substantial capability to improve efficiency and reduce waste.
* Ability to improve program effectiveness - Improving program effectiveness is effectiveness results from careful design, constant monitoring, and periodic evaluation of processes and impacts. Nonetheless, institutional structure can influence overall performance, first, by improving funding stability as discussed earlier, but also by improving the visibility of the agency among the public and therefore the general awareness of the need for energy efficiency. Certainly an agency with strong regulatory authority and enforcement capabilities, combined with programs to assist persolis affected meet the regulatory requirements, would command the attention of much of the private sector. Also, to the extent a stronger agency has greater policy input, policies can be implemented to support programs and vice versa.
Ability to improve national energy efficiency planning - Key factors in improving national energy efficiency planning include the authority to access or collect the necessary data, sufficiert resources within CONAE to do the necessary analysis and modeling, and legal requirernmnts that national energy sector plans include comprehensive estimates of the efficiency resource. These factors are not necessarily tied to structure but a strong national energy conservation law (creating a more powerful and autonomous agency) is more likely to include them.
Other factors to consider when evaluating institutional options include the degree of centralization desired. A high degree of centralization usually produces a greater level of authority, whereas greater dispersion of the function requires more coordination among those with energy efficiency responsibilities. Still other factors include the degree of visibility desired for the agency, administrative
8 efficiency considerations,accountability, lines of communication,levels of authority in various areas, ability to adapt to changing circumstances,and, of course, politically feasibility. To conduct a more systematic institutionalanalysis, all of these factors and criteria can be weighted and place in a matrix and each institutionaloption evaluatedagainst the weightedcriteria. This exerciseis left for the CONAE staff to conduct.
9 Role of CONAE in Policy Development and Planning
CONAE has focused primarily on energy efficiency programs since its inception in i989. These have covered all sectors, including transport, and have generally been viewed as quite successful although insufficient data exists as to their actual impacts. Energy efficiency policy has been primarily the province of the Ministry of Energy and has been expressed in the creation of CONAE apd its "link units" (U3Es), the establishment of FIDE, the restructuring of CRE to create independent and transparent tariff regulation, passage of laws to promote cogeneration, and the restructuring of PEMEX. CONAE has had little role in these policy developments and only recently has had input into the preparation of the national energy sector plan.
The ability to analyze and develop policy are intimately linked with the ability to do energy efficiency planning because they both require sufficient data and the in-house analytic capability. If Mexico is to strengthen its energy efficiency function, it must establish explicit responsibility for energy efficiency policy development in law and it must provide the resources necessary to carry our policy analysis and planning. For policies related to energy efficiency technologies and practices, end use regulations, appliance, machinery and building energy regulations and other specific matters, it is appropriate to vest these policy making responsibilities in CONAE. Broader efficiency policy matters, such as restructuring of the energy sector, may more appropriately reside with SE, with a role for review and comment on the part of CONAE and other agencies.
The draft law, however, should not limit the energy efficiency policy responsibility to only CONAE, although CONAE should clearly have the lead. The statutes of other agencies should be reviewed to determine whether they sufficiently address energy efficiency and if not, language should be drafted and included in the draft energy efficiency law such that the law is truly comprehensive in nature. To the degree that energy efficiency responsibilities are included in the enabling statutes of other agencies, issues of coordination need to be addressed as well. Mechanisms for policy coordination that might be considered in the draft law include using the Board of Directors if there is one, or establishing a separate Energy Efficiency Policy Coordinating Board comprised of the relevant agencies as well as private sector representatives. Of course, the national planning process serves as a policy coordinating mechanism but first level plans are developed only every six years and second level sectoral plans for five years. Thus, there needs to be a mechanism for more frequent discussion and promulgation of policies. Creating such a mechanism in law will give much more credence and importance to energy efficiency policy development.
Regarding energy efficiency planning, CONAE should have the statutory responsibility to prepare estimates for energy efficiency potential which are then incorporated into the energy sector plan. The energy sector plan should thus aim at becoming an integrated resource plan (IRP), or because it includes all energy sources, become what has recently been termed a "meta ERP". Mexico would then possess the capability to determine the extent to which energy efficiency and renewable energy can contribute to meeting national energy needs, including the relative costs of these resources, and both the economic and environmental benefits to the nation of using these resources.
10 Coordination of CONAE and FIDE Activities
The Fideicomiso de Apoyo al Programa de Ahorro de Energia del Sector Electrico (FIDE) is a private, nonprofit implementing organization for a dedicated trust fund. FIDE currently has 35 staff persons and another 14 persons located in regional of fives.. FIDE's annual budget of $10-12 million is larger than CONAE's. Its funds derive from the trust fund whose source of revenues is a voluntary contribution of 0.2% of contract revenues from contractors working for CFE. CFE matches this amount from its own revenues.
Although FIDE's activities are restricted to improving the efficiency of electricity use, whereas CONAE's responsibilities cover all energy forms, there are nonetheless a number of areas of potential overlap with CONAE activities. For example, both FIDE and CONAE fund energy audits and FIDE auditors do not restrict their assessments to just electricity. Requests for energy audits are usually received by the regional offices. CONAE currently has 15 regional offices and FIDE has I 1. Discussions with both FIDE and CONAE revealed that there is no coordination among the regional offices as far as audit requests are concerned, or other activities, as far as could be determined. There is no sharing of results, coordination of who has received audits and who has not, or pooling of information for purposes of monitoring national progress.
In addition to energy audits, FIDE conducts demonstration projects, cogeneration feasibility studies, works on the development of efficiency standards and finances both energy audits and the procurement of energy efficient equipment by commercial and industrial firms. FIDE finances about 30 projects annually. For the most part, energy audits are contracted out to private firms (all auditors are members of the Chamber of Industrial Consultants), although FIDE staff themselves do audits for a fee for residential and small commercial customers.
FIDE is also the primary implementing organization for demand-side management (DSM) programs. Although these were relatively small several years ago, they have grown in recent years through the efforts of USAID and others. CFE recently budgeted $80 million for five years for DSM programs wl.ich will be designed and implemented by FIDE. Thus FIDE is a major component of Mexico's overall energy efficiency program.
FIDE is governed by a Technical Committee which meets quarterly. The Technical Secretary of CONAE is a member of this 16 person committee. The presence of CONAE on the Technical Committee and the issuance of a quarterly report by FIDE appear to be the primary means of coordination between these two bodies.
Given the relatively scarce resources available for energy efficiency in Mexico, it would seem that CONAE and FIDE should coordinate their activities wherever possible to avoid duplication or conflicting programs and policies. Based on discussions with both FIDE and CONAE, it did not appear as though any attempts are being made to coordinate programs at the staff level. The establishment of ad hoc committees or groups at the staff level could help improve coordination, avoid duplication, and possibly enhance the effectiveness of the programs of both agencies. Areas where such ad hoc coordinating committees could be considered include:
11 * coordination of the activities of the regional of fives, including energy audits
* coordination of activities to develop energy efficiency standards
* coordination of public awareness campaigns and other information programs
* coordination of training activities
* sharing of information and pooling of results and data so that CONAE is better able to estimate national efficiency progress and potential, as well as target new programs
There may be other areas that need coordination as well, but starting with just one or two of the above as a test might be an important beginning.
Role of CONAE in Energy Efficiency Regulation
CONAE has an active program in promoting the establishment of minimum energy efficiency standards. Currently, three standards are now in effect: refrigerators, room air conditioners and three phase electric motors. These standards were published in the Gazette in 1994 and went into effect in 1995. Building energy efficiency standards were published in the Gazette in 1995 but objections to certain aspects of the standards by the building community has prevented them from going into effect and CONAE is considering alternative approaches. CONAE is also looking at CAFE standards for automobiles and standards for agricultural pumps.
CONAE itself does not have legal authority to promulgate standards. It utilizes instead a general law governing this issuances of standards by any agency. Under this law, a government agency submits a proposal for a standard to a special committee and it is reviewed. After review it is published in the official Gazette for public comment. The committee reviews the comments, incorporates them into the proposed standard if the standard is generally accepted and issues the standard with the force of law.
Discussions with CONAE elicited concern over possible conflict between its role in the development and possible enforcement of energy efficiency regulations and its role in promoting voluntary energy conservation. It was felt, for example, that owners of industrial and commercial facilities might be reluctant to work voluntarily with CONAE to improve efficiency for fear of being cited for noncompliance with some efficiency regulation. More generally, it was felt that the public perception of CONAE as a regulatory agency might undermine its effectiveness with its many voluntary programs.
Although possible conflict between these two roles is a legitimate concern, the experience of many other energy conservation agencies is that regulatory and promotional roles need not be in conflict and, in fact, can be mutually reinforcing. For example, the former Minnesota Energy Agency issued the first regulation in the United States requiring minimum efficiency standards for existing residential rental housing. Previously, all standards were only for new construction. The agency also enforced this regulation. In order to gain the trust of the landlords to promote widespread voluntary compliance, and thereby obviate the need for a costly enforcement program, the Agency developed a vigorous program of assistance to landlords to upgrade their facilities to the level of the standards. The program included both technical and financial assistance, and as long as the landlord was making a good faith effort at
12 compliance, penalties were not imposed. This approach was quite successful and this regulation was subsequentlycopied in several other states.
In general, the negative reactions engendered through regulations and their enforcement can be overcome and even turned into a positive force for change, if positive, supportive programs are offered to help the firm come into compliance. This approach is effective in the case of retrofits because the investment in efficiency saves money in operations and eventually pays for itself. In the case of minimum efficiency standardsfor new appliances and equipment, cooperation of the industry can be gained through targeted financial assistance, such as the Golden Carrot Award developed by the U.S. EPA, or supportive marketing and incentive programs, as many utilities in the U.S. have implemented with manufacturers and retailers, so called "trade allies". Brazil's PROCEL has developed voluntary standards agreements with refrigerator manufacturers and is achieving efficiency improvement without regulation, thus demonstratingthat supportive programs on the part of government, such as "market pull" programs, can provide sufficient incentive for manufacturers to voluntarily improve the efficiency of their products.
Thus, giving CONAE the authority to issue and enforce efficiency standards in the draft law should not be dismissed out of hand. If these powers are wielded in a cooperative spirit with industry, broad, largely voluntary improvementsin efficiency can be achieved. CONAE could play a key role in both regulation and promotion.
Energv Efficiency Fund
The idea of an energy efficiency fund was not under consideration by the CONAE staff at the time of the visit by the technical assistance team. The concept of a fund was suggested for their consideration as part of a general strategy strengthen the nation's energy efficiency effort, in concert with the drafting of the energy efficiency law and the restructuring of CONAE. Energy efficiency funds have been successfully used by other developing countries to rapidly expand both the demand for and capability to supply energy conservation services. Funds can be used to leverage private investment in efficiency, accelerate the introductionof new technologies, support research and development of more efficient products and stimulate the formationor expansion of firms offering energy efficiency related services. As mentioned earlier, Thailand, Brazil, Korea and others have established funds or revenue sources to complement their programs and accelerate market development. These types of funds typically generate $4C-50 million per year and are generated by a small tax on energy, often petroleum.
Energy efficiency funds do not need to be established in perpetuity. As illustrated in the figure below, they are necessary only to promote the establishmerit of a viable market for energy efficiency. As the market develops and private firms emerge to sell products and services in the market, the types of incentive programs financed by the fund can be withdrawn. Modest levels of funding may need to be retainedfor a longer period of time to support continued research, development and commercialization of new technologies.
13 It is suggested that the Government of Mexico consider the establishment of an energy efficiency fund as an integral part of its strengthening of the nation's energy efficiency function. A small tax on petroleum
Figure 1 Typical Energy Conservation Center Evolution
lK ~~~~~~~FundsfromANational Energy
/ Monitoringand E taluation Fund o) 10 20 30
Time (yrs)
sales as a source of funds would have the policy advantage of providing a small price incentive to conserve one of Mexico's most precious resources while using the funds generated to further conserve oil and other energy resources. The tax should be established to produce around $40 million annually in revenues. CONAE should be expected to achieve a leverage ratio of five to one with these funds, so that $40 million revenue would stimulate $200 million annual investment in efficiency improvement.
14 Discussionswith governmentof finials indicated that it is a firm policy of the Ministry of Finance not to establish segregatedfunds based on dedicatedtaxes. The rationale is that once this policy door is opened, a whole host of special interests will put on pressure to have their own special funds. This, in fact, is a generally adopted tax policy the world over. Nonetheless,there are areas of critical national interest where such segregatedfunds are justified and a number of nations in a position similarto Mexico have determined that the need for such a fund for energy efficiencyoutweighs its potential disruptionof tax policy. A limited amount of research on the part of the CONAE staff revealed some precedents in Mexican law for such segregated funds. Both legal and policy impedimentsto such a fund should be investigated further, and discussion of the fund woven into the overall discussion of strengtheningMexico's energy efficiency function.
15 Annex A
Functional Evaluation Method for CONAE
In order to arrive at an appropriate institutional structure for energy efficiency in Mexico, it would be most desirable to conduct a systematic evaluation of critical energy efficiency functions. Critical functions can be derived in large measure from the process required to implement energy efficiency improvements, often referred to as the "total energy management" process (see Annex B). A critical energy management function is defined as a component of national energy management without which the nation cannot adequately and economically meet the nation's energy needs. Critical energy management functions related to efficiency include:
Energy emergency preparedness Data acquisition and management Energy demand forecasting and efficiency potential estimation Policy analysis and development National energy efficiency planning Technical assistance (i.e., program planning and implementation) Energy efficiency regulation Coordination Technology assessments Technology development and commercialization Information dissemination, training and education Financing Evaluation, including impact and process evaluation for programs and evaluation of macroeconomic impacts
Each of these functions can, in turn, be evaluated based on various management criteria to assess their current effectiveness. Six typical criteria are:
1. Statutory authority - the degree to which an agency has the legal authority to direct and manage a particular function 2. Staffing - the adequacy of existing staffing levels 3. Technical capability - the adequacy of in-house knowledge and experience 4. Funding - the adequacy and stability of the level of funding 5. Management - the effectiveness of internal management and direction, such as the establishment of strategic objectives and expected results 6. Results - the ability to complete an activity and the effectiveness of the results
If a scoring system is used to evaluate each function against each criterion using, for example, a range of I to 5 where I means the function is non-existent, 3 means it needs strengthening and 5 means fully functioning, then a functional evaluation matrix can be developed which maps the functional adequacy of the current organization and pinpoints areas needing strengthening. An example of such a matrix is illustrated below.
16 Functions Statutory Staffing Technical Funding Management Results Average Authority Capability Score
Energy emergency preparedness
Data acquisition and management
Energy demand forecasting and efficiency potential estimation Policy analysis and development
National energy efficiency planning Technical assistance
Energy efficiency regulation
Coordination
Technology assessments
Technology development and commercialization
Information dissemination, training and education Financing
Evaluation
Average Score
KEY 1= Non-existent 2= Inadequate 3= Adequate CONAE is encouraged to use a system such as this both to help strengthen the management of the current organization as well as to aid in drafting the national energy conservation law.
2-s AnnexB
The Total Energy Management Process
Awareness of Potential Savings
Top Management Commitment
Technical Assistance and Training
Institution Building I Information Dissemination l~~~~~~
i Energy and Engineering Audits and Feasibility Study
Financing I Equipment Procurement
Project Construction
Monitoring and Evaluation
Source: Hagler Bailly Consulting, Inc.
19 LIST OF CONTENTS
Page No SUMMARY
1 INTRODUCTION 1
2 ACTIVITIES UNDERTAKEN DURING THE MISSION 3
3 ISSUES AND FINDINGS 5
3.1 Ministry of Energy 5 3.2 CONAE 6 3.2.1 Head of CONAE 6 3.2.2 Planning Unit 6 3.2.3 Energy Efficiency Law 7 3.2.4 Standards 7 3.2.5 Industry 8 3.2.6 Buildings and Public Lighting 9 3.2.7 Cogeneration and Renewable Energy 9 3.2.8 Transport 10 3.2.9 U3Es 10 3.3 Consultants 11 3.4 Industrial End-Users 11 3.5 FIDE 12 3.6 Aid Agencies 12
4 RECOMMENDATIONS FOR CONAE'S PLANNING, TARGETING AND MONITORING 13
4.1 Roles within CONAE 15 4.1.1 Sector Experts 15 4.1.2 U3Es 16 4.1.3 Planning Unit 17 4.2 The Planning Process 18 4.2.1 Long-Term Planning 18 4.2.2 Programme Planning and Target Setting 19 4.2.3 Annual Planning and Effectiveness Monitoring 19
5. Appendix
Appendix 1 Energy Efficiency Programme Targeting and Monitoring Appendix 2 Details of EU Projects with CONAE LIST OF CONTENTS (CONTINUED)
Appendix1 EnergyEfficiency Programme Targeting and Monitoring
Appendix2 Details of EU Projects with CONAE ABBREVIATIONS AND ACRONYMS
CFE Comision Federal de Electricidad CRE Comision Reguladora de Energia CONAE Comision Nacional para el Ahorro de Energia EC European Community ESCO Energy Service Company ESMAP Energy Sector Management Assistance Program ETSU Energy echnology Support Unit of the UK EU European Union FIDE Fideicomiso de Apoyo al Programa de Ahorro de Energia del Sector Electrico FONAE Fondo para la Diversificacion y Ahorro de Energia NAFIN Nacional Financiera NAFTA North American Free Trade Agreement PAESE Programa de Ahorro de Energia del Sector Electrico PEMEX Petroleos Mexicanos SEMIP Secretaria de Energia, Minas y Industrias Paraestatales SME Small and Medium Enterprise USAID US Agency for International Development U3E Unidad de Enlace para la Eficiencia Energetica SUMMARY
This report forms part of ESMAP's TechnicalAssistance (TA) to CONAE, TA that follows a World Bank review of the Mexican Energy Efficiency Programme being administered by CONAE. A four man mission travelled to Mexico on September 23 and held background briefingswith all parties involvedin CONAE'swork.
Based on these meetings,this report initiallyexamines the current infrastructureand systemsthat CONAE is using for programme planning, programme target setting and the monitoring programmeeffectiveness and energy savingsachieved. Key issues are highlightedin the report, though it is recognised that, as the meetings were not comprehensive,there might be other aspects of CONAE's work that alreadyaddresses the points raised.
The second part of this report proposes methodologies,for discussion, for overall programme energy saving target setting and assessmentsand proposesroles and methodsof working for the new planning unit of CONAE. This includes tackling the issues of planning at all levels in CONAE and how overall planningactivities can be co-ordinated. The focus of this report is on the industrialsector.
The experiences of the UK are detailed. In particular, the methodologies that have been developedfor programmeplanning (long and mediumterm), annual planning and effectiveness and saving recordingare discussed. CONAE: PROGRAMMEPLANNING, TARGETING AND hIONITORING
1 INTRODUCTION
This report forms part of ESMAP's Technical Assistance (TA) to CONAE, TA that follows a World Bank review of the Mexican Energy Efficiency Programme being administered by CONAE. The TA activity has the specific objectives of:
1. Assisting CONAE examine its future organisational options.
2. Assisting CONAE set up a policy research and planning unit, and
3. Assisting CONAE put in place a systematic method for setting energy efficiency targets and monitoring achievements against these targets.
The starting point for the TA activity was the findings of the World Bank review. A four-man mission travelled to Mexico on September 23, the mission consisting of:
Ernesto N Terrado - Principal Energy Planner (IENDP), Mission Leader.
John Armstrong - Expert on Policy in Institutions.
Andy Gilchrist - Expert on Programme Targeting and Monitoring.
George Courville - Expert on Buildings Efficiency.
George Courville left Mexico City on Friday 29 September, with Ernie Terrado and John Armstrong leaving on Friday 6 October. Andy Gilchrist left on 7 October. During the mission, background briefings were held with all parties involved in CONAE's work. During this work, it became apparent that the initial Terms of Reference for this report would need to be changed, to reflect the more immediate needs of CONAE. The Terms of Reference for this report are thus:
1. To examine the current infrastructure and systems that CONAE is using for programme targeting and monitoring energy savings.
2. To propose methodologies for overall programme energy saving target setting and assessments.
3. To propose roles and methods of working for the new planning unit of CONAE. This would include tackling the issues of planning at all levels in CONAE and how overall planning activities can be co-ordinated. The focus of this activity would be on the industrial sector, with a discussion on the proposed operational structures for industrial work.
1 The above work should include a description of experiences from running UK energy programmes,focusing in particular on how planningis undertakenand on how targets are set and energy savingsproven.
Chapter 2 details the activities undertakenduring the mission. As the majorityof the meetings were with all members of the mission, details are not given. However, where individual meetings were held, appropriatevisit notes are containedin appendices. As part of the mission, on Tuesday 3 October, a seminar was given on the 'setting of energy efficiency targets and monitoring of energy savings'. This reflected experiencesfrom the UK, and also stimulated discussions amongst CONAE officers. A paper expandingthe topics discussed in the talk is given in Appendix1.
Chapter 3 outlines the main activities undertakenby CONAE in each of the areas investigated during the mission. It also details the outstanding issues related to this report's Terms of Reference. This chapter is based solely on what was learnt during the mission, and so does not attempt to detail all of CONAE'sactivities.
Chapter 4 discusses key recommendationsarising out of this part of the mission's work. It discusses how planning roles could be allocated within CONAE, together with methods of running programmes. It also discusses methodologies for setting targets and proposes alternativesfor assessingenergy savings.
This report does not tackle the work CONAE is undertakingunder the Energy EfficiencyLaw, nor its related institutionalposition. This is coveredin a parallel report to be submittedby John Armstrong.
2 2 ACTIVITIES UNDERTAKEN DURING THE MISSION
This chapter outlines the meetings held during the mission. Individual meetings held (ie where no othet mission members were present) are indicated by an asterisks. The meetings were as follows:
Monday 25 September Mission briefing Meeting with Ricardo Escobar - International Co-operation Director
Tuesday 26 September Introduction meeting with Fernando Bueno, Technical Secretary of CONAE Guillermo Rodriguez y Rodriguez, covering the Energy Efficiency Law Agustin Acosta, covering CONAE's standards work Guillermo Ortega, overview of technical co-ordination area Hugo Flores, covering industrial sector work Ruben Avila, covering buildings and public lighting Federico Hungler, covering cogeneration and renewable energy Francisco Arenas, covering transport.
Wednesday 27 September Building Energy Efficiency Seminar led by Mr George Courville. Cuitlahuac Rangel, covering the U3Es *Claudia Sheinbaum, covering introduction to energy modelling
Thursday 28 September Visit to Puebla, including: Meeting at U3E with Jorge Zarate - President of Chambers of Commerce and Jose Pedraza, Head of U3E in Puebla. Visit to Yeso Panamericano, a small building materials manufacturer. Visit to Chiclets Adams, a sweets and chewing gum manufacturer
Friday 29 September Evaluation meeting with Mr Fernando Bueno. Meeting with Jorge Landa, Agency for International Development in Mexico Meeting with FIDE with Jesus Zadagamis *Meeting with Claudia Sheinbaum to discuss programme planning and target setting.
3 Monday2 October Meeting with three energy efficiencyconsultancy frmns: High Tech Services Energytecde Mexico AlescoConsultants *Meetingwith ClaudiaSheinbaum and Hugo Flores on the industry section's work *Meetingwith Od6n de Buen on CONAE'splanning function
Tuesday3 October Seminar given by John Armstrong on 'Perspectives of Energy Efficiency and Conservation Institutions' Seminargiven by Andy Gilchriston the 'Setting of EnergyEfficiency Targets and Monitoringof Energy Savings'
Wednesday4 October Meetingwith Vincente Solano- Departmentof Energy Meetingwith Raul Monteforte- Departmentof Energy Meetingwith MauricioToussaint - DirectorGeneral of EnergyPolicy, Departmentof Energy Meetingwith Jorge Zarate, Secretaryof Policyand Demonstration,Department of Energy
Thursday5 October *Meetingat BritishCouncil Wrap up meeting with CONAE
Friday 6 October *Meetingwith Joseph Ordoquion the two EU projectswith CONAE *Wrapup meeting with ClaudiaSheinbaum
The details reported in Chapter 3 have come from the above meetings. Where all mission memberswere present at the meetings,individual reports have not been written. In addition,the individual meetings with Claudia Sheinbaumand Od6n de Buen and Hugo Flores developed ideas put forward during the seminar and further developedin this report. They are thus not reported on. Appendix 2 contains details of the EU projects as obtained in the meeting with Joseph Ordoqui.
4 3 ISSUES AND FINDINGS
This chapter details knowledge gained from meetings with CONAE personnel and other bodies working in the Mexican energy efficiency field. It is not a comprehensive coverage of all activities, as this was not the intention of the mission meetings. There are thus, probably, aspects of CONAE's work that are not covered below, but which might address some of the outstanding points raised.
3.1 Ministry of Energy
Since December 1992, there has been a Regulatory Framework for the power sector that should have allowed the entrance of Independent Power Producers and cogenerators. However, this new regulatory framework has not allowed new entrants into the market beyond a few schemes where end-users are generating for their own self consumption. Part of the reason is that CFE sets a tariff on average costs rather than long run marginal costs. Thus cogenerators cannot compete. These problems are being tackled by a new Energy Regulatory Commission Law, that is currently before Congress.
The Ministry is co-ordinating energy policy plans for the next ten years. During this period, 70% of CFE's oil fired plants will be shifted to gas. PEMEX will improve its overall efficiency, through the use of its new benchmarking simulation process.
In the energy planning, 4 or 5% of additional predicted demand to the year 2000 is covered by energy saving programmes. It is envisaged that this energy saving will principally be through increases in efficiency in CFE and through the use of cogeneration. CONAE's role in the supply side will, in the long term, be brought into this planning process.
The three main points that the Ministry sees for the future are that:
* There is a need for a stronger CONAE, which has legal basis, for operation in both the demand and supply side.
* There is a need for an energy efficiency law, part of which will give CONAE a legal basis.
* There is a need for a series of energy saving programmes aimed at the demand side.
There is also recognition in the Department of Energy that the institutional and funding of CONAE are urgent problems that need to be tackled. In particular, it is recognised that in practice Government departments do not always pay CONAE moneys that they promised to pay, partly because this funding is usually promised from general, unallocated budgets rather than a specific departmental budget allocation for CONAE. CONAE's funding is thus not secure. Whilst opinions varied, it was generally thought that it would be very difficult to fund CONAE through a tax on fuel, the preferred option being a separate line in the Department of Energy's budget. 5 CONAE's role in policy formulationis currentlyunclear, which in part relates to uncertaintiesin its position. Again opinions varied, but the preferred option appeared to be keeping CONAE within the Departmentof Energy, implementingprogrammes and providingpolicy advice. It is not envisagedthat CONAEhas a policing function.
Key Issues: There is strong support for CONAE and its work at all levels within the Ministry of Energy. Energy efficiency is seen as a fundamental part of energy policy. The funding of CONAE's work needs to be sorted out CONAE's institutionalposition needs to be defined
3.2 CONAE
3.2.1 Head of CONAE
FernandoBueno is shortlyto leave CONAE. His successorhad not been appointedby the end of October,which was causing some concern. However,the Ministry sees the post as an important one and are looking for the right person.
Key Issue: There will be uncertainty until Fernando Bueno 's successor is appointed.
3.2.2 Planning Unit
The Planning Unit has recently been created, and consists of two members, both of whom are currently university lecturers. The functions of the Planning Unit are currently being established. Possible roles are put forward in Chapter 4.
CONAE currently has no long-term energy saving objective or target and there is no rigorous attempt at long-termnplanning. Annual business planning is generally based on the level of activity in each sector undertaken in the previous year.
Within each individual sector, there are elements of medium-term planning, in that projects funded by the World Bank and by the European Commission are of, typically, two to three year's duration. Thus, these programmes have some overall plan. However, it is believed that most of this planning is on an activity basis. It also appears that there is little work in the field of monitoring operational effectiveness, nor of assessing energy savings achieved as a result of programmes. This latter topic, has started to be addressed as is detailed in Section 3.2.9.
An energy model is being developed at the university. Details of this are included in Appendix 3. It is currently a fairly aggregated model, split upon five sector lines. In some of the sectors, particularly industry, there is further desegregation, but only at the sub sector level. The level of aggregation is currently based on Mexican energy statistics. These statistics allow specific energy consumptions, by various sectors and subsectors, to be calculated over the last 10 years. A general decrease in specific energy consumption is shown over this period (Appendices 4 & 6 5). Within the next two months, the model should produce results under two macro-economic scenarios,with assumed increasesin energyefficiency in each sectoror sub sector.
Future work on the programme will extend the time horizon to the year 2025 and, over the coming year, it is hoped to desegregateindividual sub sectors by process and technologies. Thus, in the long term, the programmewill be able to give a useful guide as to the long-terrn importanceof various sectorsand technologies.
Key Issues The Planning Unit's role is currently being defined. In the past, energy saving targets have not been set. In the past, annual business plans have been based on previous years activities In the past, there appears to have been little work in the field of monitoring operations effectiveness or of assessing energy savings achieved. An energy model is being developed, that in the medium to long-term will help highlight areas of work
3.2.3 Energy Efficiency Law
CONAE reported on progress in drawing up an energy efficiency law. Currently laws from over nine countries have been studied and opinions of CONAE experts are being sought.
It is intended to put forward the first draft of the law by cutting and pasting laws from other countries. The next stage will involve consulting CONAE members, followed by a public sector consultation involving ministries, research institutions, federal districts and fuel suppliers. This will be followed by a public consultation, before it is submitted to the President who will send it Congress.
The law will cover the status of CONAE, ministerial responsibilities, how government agencies can be co-ordinated and the various tools that can be used to foster energy efficiency. The status of the law and future activity is reviewed in the companion mission report.
3.2.4 Standards
Three standards are already in effect: those for domestic refrigerators, room air conditioners and three phase electric motors. An additional standard for non-residential lighting is in place and will come into effect in 1995. Also during 1995, it is targeted to gazette standards for domestic washing machines, centrifugal pumps, single phase motors and perhaps thermal insulation.
Standards propose a minimum efficiency level and a label for those that exceed this minimum standard. Enforcement is currently by only five inspectors, who have to cover all standards throughout Mexico. There are also currently very few laboratories in Mexico that are able to test products, though under NAFTA, all products need to be tested within the host country.
7 Key Issues: Standardsetting work appears to be progressingwell. The testing infrastructurewithin Mexicois currentlyinadequate. The enforcementinfrastructure within Mexico is inadequate.
3.2.5 Industry
The industry section is split into two parts; private industry and the energy sector. Work under the private industry part consists of two components;an environmentaland energy efficiency programmethat is assistingthe NationalEcological Institute in emission studiesand the potential for CO2 savings, and an information systems part that is assisting the U3Es in database development. The energysector work also covers two areas; that of assessment,where CONAE works with CFE and PEMEX in defining technical areas that have the potential for energy efficiency,and a project managementarea, which managesthe studieswithin CFE and PEMEX. It appears that, following FONAE's closure, the technology overview and sector-specific specialistknowledge is not containedwithin CONAE's umbrella.
Work in the private sector has included promoting the use of new high-efficiency burners, improvingcurrent systems and encouragingfuel switchingfrom fuel oil to liquid fuel in brick ovens and furnaces,automatic demandcontrol throughoutindustry, and preliminary work in a programme involving the exchange of burners in hospitals. A key area of work is seen as developingmarkets for consultants,work done-in conjunctionwith the EU (Appendix2).
CONAE has been involved in over 320 audits, focusing on the generation and distribution of steam, cogeneration (from heat recovery), refrigeration, compressed air, motors and drives, energy managementsystems and instrumentationand control. CONAE also notes that SMEs account for over 98% of industrialcompanies in Mexico. They have particularproblems in over capacity, increased competition, obsolescence of their equipment, very high credit costs, increasing specific energy consumptionsand the fact that they have an adverse impact on the environment.
Additional programmes include instrumentationand control of boilers and burners and the promotionof energy managementsystems, including monitoring and targeting. CONAE's work is moving from an audit based approach into finding suitable demonstration projects for independentauditing.
Work in the energy sector includesstrengthening the relationshipwith PEMEXand undertaking studies for heat recovery in rigs and platforms and the use of turbo compressors at terminal stations. There have also been studies undertaken to assess potential for water saving in refineries.
CONAEhas undertakencogeneration feasibility studies for PEMEX,but PEMEXappear not to be interestedin taking these any further. At presentthe reason for this is not clear.
8 Key Issues: CONAE has undertaken many audits, which when analysed could provide useful strategic information. At present the industrv sector's work appears to be geared towards meeting operational targets, rather than looking long-term. There are only a small number of large plants in Mexico, and vast numbers of smallfirms: this has implicationsfor the industry section strategy, as the consultancy market will thus be limited. Given the large number of smallfirms, it will be important to pick out cross- sectoral technology/management improvements which have short paybacks. To build up momentum amongst end-users, initiatives will need to build upon each other, requiring medium-term planning.
3.2.6 Buildings and Public Lighting
CONAE's initial work on buildings covered the public sector, though there are now studies within the private residential sector to find out how energy is used.
Over 70 first level audits have been undertaken and this is being followed up by activity aimed at financing measures. The work on public lighting is undertaken directly with states and counties.
There is currently no-one capable of building research within the country. In terms of building regulations, safety inspections are carried out at state level, but energy efficiency standards are of federal standards. There is thus an institutional problem in implementing building standards.
Key Issues: There is no facility within Mexicofor undertaking buildings research. There are institutional problems in policing buildings standards.
3.2.7 Cogeneration and Renewable Energy
Work on the cogeneration has defined a maximum potential for the country. Current CONAE studies are also assessing the potential of micro-cogeneration for hotels and hospitals. CONAE is currently looking for demonstration projects (between 4 to 7 in different sectors). Three of these demonstration projects are currently under development, of which one is in construction. This latter system is for self supply. Currently there are major barriers to the implementation of demonstration cogeneration systems, in particular the very high interest rates, the regulatory framework for grid connection and the low cost of electricity supplied by CFE. In addition, all equipment needs to be imported, though the EU project has identified Mexican companies that could enter into joint ventures.
In addition to the potential studies and the demonstration case study work, CONAE has been involved in promoting cogeneration through seminars and in the educational sector.
The area of renewable energy sources is a new activity for CONAE. This area is covered by the mission leader's report. 9 Key Issues: The regulatory barriers are being tackled through the new Regulatory Law. Barriers to cogeneration are not technical, but regulatory and financial. Financialbarriers could be tackledby ESCOs or through WorldBank loans.
3.2.8 Transport
Past work in the transport sector has included audits of leading companies to look for the potential of energy savings. These typically show a 10 to 15% saving through driver training, fuel management, improved maintenance and the correct choice of vehicle.
Formal driver training programmes are in place, together with formal education programmes for consultants (there is a diploma course on transport).
There have also been 66 audits done in the private sector. These showed that 8% of vehicles were so bad they shouldn't be being driven and 88% of vehicles needed some form of maintenance.
Key Issues: A driver training infrastructurehas been set up, thoughthe long-term effectivenessof initiativeshas not yet been measured. At present, the driver traininginitiatives appear to be isolated;it would be morepowerful if they were run inparallel withprogrammes for the managementof transportcompanies.
3.2.9 U3Es
The aim of the U3Es is to implement all CONAE's programmes in their geographic areas. There are currently 15 operating U3Es, all established in co-operation with the main Chamber of Commerce in their area. Units work through a technical committee, which includes representatives of the Chamber of Commerce. Each unit is generally staffed by three CONAE employees.
Each unit has a commitment to visit 200 companies and to build up local consultants in their area. A database system has been developed by CONAE which will enable the link units to keep basic data on companies in their area. This basic data is intended to include energy consumptions, typical equipment used in the company, measures that could be taken to save energy and actions taken.
Key Issues: The co-operationbetween U3Es and the local Chambersof Commercegive a powerful deliverymechanism in their geographicalarea. Targetsfor U3Esappear to be basedon operationaltargets, there being no long-termaims. The database infrastructurerecently set up willprovide a powerful tracking mechanism.
10 The U3Es are potentially a very powerful mechanism for undertaking market research. A lot of the U3Es work will need to be co-ordinated centrally, given the relatively small number of large companies in each U3E area Central co-ordination will allow the U3Es to be used as a route for assessing energy savings achieved.
3.3 Consultants
It is recognised by CONAE that the consultancy market is in its infancy. The three companies met by the mission appeared dedicated and keen to succeed in the new market. It was noted that none of them were interested in working with FIDE, as FIDE were setting ceilings for audit costs (in the expectation that a consultant could make up what they lost on an audit in an implementation measure).
Experience from audits undertaken, shows that 10% savings can be made from no-cost measures. It was noted that some audits were of poor quality, so the consultants were very keen on a formal quality certificate to screen out poor quality operators. In addition, they would like to see formal energy management training and qualifications for energy managers.
The consultants would like to see a serious and co-ordinated national policy, with programmes, on energy efficiency. They feel that this does not currently exist. However, they were generally supportive of CONAE's efforts and appeared to request a strengthening of CONAE's information role in order to stimulate their market. One of the consultants had a contract from CONAE to develop a document, on targeting measures at industry, from 150 CONAE audits.
The consultants noted that 95% of companies are micro/family businesses. Financing energy efficiency improvements within these companies is a bit problem. It was noted that any World Bank resources would normally come through NAFIN, which caused bureaucratic delays and also meant that rates were generally not competitive enough.
Key Issues: Co-ordination ofprogrammes aimed at stimulating the consultancy market needs to be improved Reputable consultants wouldfind it valuablefor a formal quality system to be out in place, to ensure some level of screening. Consultants in the market would like to see a co-ordinated national policy, which would allow them to plan within a more predictable medium-term market. The consultants met by the mission appeared to be keen and dynamic.
11 3.4 IndustrialEnd-Users
Two end-users were visited in Puebla, both of which had American ownership. They are thus possibly not representative of Mexican industry in general.
The first company was interested in energy efficiency before CONAE's involvement. Therefore following an audit, they now monitor more regularly and have a broader focus on energy efficiency. They claim to have imrplementedno-cost measures, resulting in 4% gas consumption saving, and are shortly to implement some capital measures highlighted by the audit. Firnance for energy efficiency measures is not a problem provided the measure is financially attractive enough in competition with other projects being put forward to the US parent.
The second company have been interested in energy efficiency since 1993, when some of their engineers were trained by CONAE and FIDE. Also during this time a CONAE study revealed the potential for cogeneration at the plant. In 1995, an audit undertaken in conjunction with FIDE revealed several capital measures that could be taken to improve energy efficiency. These measures will, again, be financed provided they can compete with other projects being put forward to the US parent. The cogeneration project is also being investigated, with a possibility of a shared savings agreement with the equipment supplier.
Key Issues: Both companies visited mentioned that finance was not a problem, though both were American owned Both companies visited appeared very satisfied with CONAE's work.
3.5 FIDE
PAESE is CFE's energy efficiency body. It undertakes strategic research and co-ordinates energy efficiency improvements in CFE's generation and distribution activities. FIDE is PAESE's implementation agency for the demand side. The director of CFE sits on the board of both PAESE and CONAE, receiving quarter reports from both. This appears to be the only direct co-ordination between FIDE's and CONAE's programmes.
FIDE has a relatively secure avenue of funding. They have, in the past, subsidised industrial audits, though FIDE claim that they are currently offering interest free loans over two years for an industrial audit and the implementation of measures. The maximum loan is 200,000 pesos per company. There are about 30 projects of this type a year.
FIDE see CONAE as a policy setting body. FIDE's offices regionally co-ordinate residential and small business audits. Large audits are co-ordinated from FIDE's central offices. There appear to be no links between FIDE's regional offices and the U3Es, nor between, at the working level, FIDE's central offices and CONAE's central offices.
12 Key Issues: There appears to be no working level co-ordination between FIDE 's and CONAE's programmes. FIDE appear to see CONAE as a policy body, and not as a programme implementing body.
3.6 Aid Agencies
There are many potential projects that might be funded by US aid or Inter-America and Development Bank in the near future. Proposals cover transport, industry, renewable energy, public lighting, links between US and Mexican laboratories. In particular a pilot project on combustion and steam systems involving 35 audits is proposed, a project on rewinding motors, an energy environmental network, a sustainable cities project (Monterey), and a PV and wind systems for irrigation, water pumping and eco-tourism have been proposed.
Key Issue: It is important that all aid agencies co-ordinate their activities to ensure that projects are complementary.
4 RECOMMENDATIONS FOR CONAE'S PLANNING, TARGETING AND MONITORING
CONAE has recently set up a planning unit. Its roles are currently being defined, but it will help tackle the deficiencies in CONAE's current planning processes. It will be important that planning is done by all parts of CONAE, and not just delegated to the planning unit. Planning is important over three different time horizons:
Long-term planning will enable CONAE to establish areas of operation that will lead to significant national energy savings.
Medium-term planning will enable each individual sector and programme to have clear ideas of how activities will develop within the programme, such that they build upon one another and lead to real proven energy savings.
Short-term planning, usually on an annual basis, will allow the full co-ordination of CONAE's activities in the different sectors and ensure that they are optimised for greatest energy saving, given a finite budget that CONAE will be operating in for the year.
As part of planning, long-term energy saving targets need to be set. These long-term energy saving targets act as a goal and allow questions to be asked about how proposed activities will actually help the process towards that goal. In addition, progress towards the energy saving target needs to be measured and the effectiveness of individual activities needs to be assessed. As with the planning process, all parts of CONAE will need to be involved in this process.
13 The planning process is importantfor severalreasons. Theseinclude:
CONAE's funders need to be clear that CONAE's resources are leading towards energy savings, and need to know that the most cost-effectivechannels are being used. Without this, their long-termcommitments cannot be assured.
The CONAE staff, who will require motivationthat their efforts are actually achieving energy savings. By showing that CONAE's efforts do lead to establishedconsultancy and equipment supplymarkets, CONAEstaff will be motivatedto furtherachieve.
For end-users, it will be important that CONAE builds up a trusted position. It should be rememberedthat end-users will very rarely regard energy usage as important, and individuals within companieswill only sporadicallyhave time for energy efficiency projects. They need reassurancethat, when they do have their moments, there is a backup service within the country that will enable them to achieve energy savingsin those short periods of time that they can pay attentionto it.
For consultantsand equipmentsuppliers, who require reassurancethat markets will not swing wildly as CONAE's activities progress. There is a danger, if CONAE's actions are based on short-termneeds only, that a marketwill be stimulatedin the short-termand then collapsein the medium-term. This makes planning for consultancy businesses and equipment suppliers impossible, even if they do gain business in the short-term. The result of this causes an instabilityin the supply market,which will mean that any energy savings achievedin the short- term will not last.
All CONAE's efforts should be gearedto a steady build up of consultancyand energy efficiency equipment markets, markets that need to be stable in the medium and long-term for energy efficiencysaving measuresto last. This chapterdiscusses possible functions for the variousparts of CONAEin the planningprocess, based on CONAE'scurrent structure.
Within this structure, CONAE currently has a functional group of sector experts, who are knowledgeable about individual sectors and technologies. These feed out the information through a second functionalgroup, the regionalU3Es, who are CONAE's main contact with the marketplace. Thesetwo functionalgroups will be involvedin the planning process, which will be co-ordinatedby the third functionalgroup of the planningunit.
The discussion below suggests possible roles, in the planning process, the energy saving assessment and operations effectiveness measurements, for the three functional groups of CONAE. Section 4.1 discussesroles in the planning, energy saving assessmentand operational effectivenessprocesses. Section4.2 discusseshow the different parts of CONAE could work together in the planning,targeting and monitoringprocess.
14 4.1 Roles within CONAE
4.1.1 Sector Experts
The sector experts gain an understanding of their sector through many routes. These include commissioning market research (covering technical and marketing issues), by speaking to representatives from all areas in their sector (eg end-users, research and trade bodies, equipment suppliers, consultants and other specialists), and by building on knowledge gained from their previous activities. This latter activity includes, for instance, the analysing of past energy audits in order to develop knowledge of where common energy savings can be made. Through this work, the sector specialists have knowledge of the following:
* Overall status of the sector, together with the sector's real short-term and medium-term problems.
* The current technologies used by their sector, together with how they are used.
3 The potential new technologies and techniques that could be introduced.
3 The market barriers to improxing energy efficiency.
3 The energy use and energy saving potential from the use of specific technologies.
3 The costs to the end-user of implementing new technologies and techniques.
3 The influencing channels through which end-users could be influenced, ranging from events, magazines and journals, and third parties (eg trade associations).
This knowledge of the sector specialists has several functions in CONAE's work. These include:
The generation of data for CONAE's medium and long-term planning processes. This would include supplying information on technologies and techniques to the energy model to allow the further desegregation of sectors and the incorporation of individual technologies within subsectors.
* It will allow an assessment of barriers to energy efficiency to be collated, such that common barriers across sectors can be identified.
* The sector specialists will also be able to develop new programmes for their sectors, programmes that address their needs of energy efficiency, have appropriate delivery mechanisms and ensure some long-term sustainability.
15 * With existing programmes, the sector specialists can, from market feedback, ensure that shorter term activities are run such that they optimise the creation of new markets and energy savings achieved in the long-term.
4.1.2 M3Es
U3Es are CONAE's main day to day contact with end-users. Given the relatively small number of large companies within each U3E area, it is possible for the U3Es to visit each large company on an annual basis. If properly co-ordinated, this will enable good market data on large companies to be collected, data ranging from energy use through problems in implementing energy efficiency measures to assessment of energy savings. Given the very large number of smaller companies in each U3E area, it will be impossible for each company to be visited. Thus the U3Es will need to augment personal visits with other forms of contact (such as newsletter, direct post and surveys) in order to obtain a reasonable coverage in terms of numbers of companies. Through this work, the U3Es will have knowledge of the following:
* The overall status of energy efficiency within their geographical area, focusing in particular on short and medium-term problems.
* The energy use of companies in their area.
* The receptivity of companies in their area to CONAE's material and seminars, both in terms of understandability and in terms of whether or not its leads to energy saving measures being taken.
* Problems of the implementation of energy efficiency measures within individual companies, knowledge gained both from companies and from consultants and equipment suppliers in their area.
This knowledge of the geographical market place has several functions in CONAE's work. These include:
* It can allow feedback on individual measures undertaken by CONAE, feedback that can be used to adjust that activity to improve its effectiveness.
* The generation of data for CONAE's short and medium-term planning processes, data focusing in particular on problems involved in implementing energy efficiency measures.
Using their database, the U3Es have a powerful mechanism by which energy savings data can be registered. This will need to be co-ordinated centrally, such that, for instance, adequate proof of additionality are made and that all U3Es use a similar methodology in their approach to energy savings.
16 * Feedback on delivery mechanismsfor CONAE'smaterial, in particular focusingon those that are highly successful, not worth pursuing further and in identifyingnew delivery mechanisms.
4.1.3 Planning Unit
Through its interaction with all parts of CONAE, the planning unit gains an understanding of the successes and problems encountered by all parts of CONAE's work. Thus the planning unit can have a useful cross-fertilisation role all the way through from individual activities to the long- term planning process. Through these interactions, and the modelling work, the planning unit has knowledge of the following:
* Similarities and differences between activities undertaken by CONAE, together with a knowledge of their relative successes.
* A measure of the benefit cost ratio of activities undertaken through individual sector initiatives.
* A knowledge of theoretical long-term energy scenarios, together with the importance of various technologies and sectors.
. A knowledge of other energy efficiency programmes underway within Mexico and abroad.
This knowledge has several functions within CONAE's work. These include:
* The identification of Mexico's long-term energy problems, these being identified through the model and through subsequent discussions with sector experts.
* The co-ordination, is in data from U3Es and sector experts, of information on barriers to energy efficiency. This information, for instance, might highlight needs for common approaches amongst different sectors, or indeed for different approaches.
The co-ordination of work on energy saving assessments, operational effectiveness and benefit to cost ratios of individual activities. This will ensure common methodologies are used, such that individual efforts can realistically be compared.
* The co-ordination and targeting of resources in the short-term, particularly in the drawing up of annual business plans that target CONAE's finite resources in the most cost- effective directions, given medium and long-term needs of the market place.
* The co-ordination of CONAE's work with other energy efficiency activities being undertaken in Mexico, and perhaps the world. It will be particularly important that working level contacts are established with FIDE, and with its overview of CONAE's work, the planning unit would be the best place for this working level co-ordination. 17 4.2 The Planning Process
This section discusses how different parts of CONAE can be involved in the planning process, together with how they could be used in operational and energy saving effectiveness assessments. It should be noted that CONAE's infrastructure is not complete for the following section to be implemented; the roles are thus put forward for discussion as ones that CONAE should be aiming for in the medium-term.
The section is illustrated through the use of a potential programme, that of a boiler tune-up programme. It is used to help illustrate roles only, and not to highlight a boiler tune-up programme itself. This section is divided into long-term, programme planning and target setting, and annual planning, effectiveness monitoring and savings assessments.
4.2.1 Long-Term Planning
This section should be read in conjunction with sections 3.2 and 4 of Appendix 1. It is assumed that CONAE already has in place a modelling function and a co-ordinated planning function. These have already identified Mexico 's energy used and savings potential, such that CONAE is directing its resources in a planned and appropriate manor. This section discusses how a new area for activity might be identified
The industry section has data from several energy audits that indicates a 5% improvement is possible on most boilers, tihrough a boiler tune-up programme. This data is fed to the energy model. Modelling has also shown that, under several different economic scenarios, that growth in industry and the commercial sector, implies that the energy use by boilers will grow significantly in the long-term.
Thus, between the industry section and the model, boilers is seen as a large potential area for savings. From their knowledge, the industry section can confirm that current boilers will not be replaced due to financial constraints on companies, and that knowledge within end-user companies about their boiler performance is very low.
Plans are drawn up for a boiler tune-up programme. These plans include discussions as to the cost of the programme, a potential realistic energy saving target for the programme (and from that a benefit to cost ratio) and the various delivery mechanisms with the programme. Thought is also given as to how CONAE could manage such a problem. It is decided, that such a programme has sufficient benefit to cost potentials to warrant the development of a firm plan, and an individual within the industry section is appointed as the boiler tune-up co-ordinator.
18 4.2.2 Programme Planning and Target Setting
This section should be read in conjunction with sections 3.2, 3.3, and 4 of Appendix 1.
An outline, medium-term, programme plan is drawn up by the industry specialist, in consultation with several parties including external consultants, end-users and the U3Es. This plans out a four year potential programme; in the first year, a training syllabus will be developed and surveys undertaken to enable targeting of the programme, in the second year training of operators in the setting up of adequate calibration laboratories is planned, in the third and fourth years, information support is given by CONAE to the new consultant in order to stimulate their market.
Outline operational targets for the programme are drawn up and a firm overall energy saving target is developed for the programme. This target has two components, firstly an energy saving target to be achieved by the end of the fourth year and secondly an energy saving target for ten years after the programme has started. The methodology by which the savings are to be assessed is also considered.. Costs for the programme are drawn up and the benefit to cost ratios are sufficient to ensure that CONAE gives this programme high enough priority for funding by donors.
The programme is put forward to donors who then provide funding. As part of the programme plan, its integration with CONAE's other activities is clearly included, together with a clear indication of how individual activities will build upon each other to achieve a long-term sustained market for boiler tune-ups.
4.2.3 Annual Planning, Effectiveness Monitoring and Savings Assessments
77Tissection should be read in conjunction with sections 2.3, 3.4, and 4 of Appendix 1.
The programme will involve the U3Es promoting boiler tune-ups within their regional areas, probably specifically to the small and medium sized firms. The sector specialists within CONAE will co-ordinate the training of consultants, the setting up of appropriate infrastructure (for instance for calibrations and equipment supply) and co-ordinate the overall programme.
This plan might, for instance, include in the second year a promotion through CONAE newsletters and Chambers of Commerce. This might be targeted at the small and medium firms, highlighting the benefits to be gained from a boiler tune-up, in terms of efficiency gains and financial savings to the company. The effectiveness of this promotional campaign could be followed up through U3E contacts and surveys of small and medium companies in their area, and by CONAE's sector specialist through feedback from the trained consultants. It might be that this feedback shows the promotional campaign has not been effective, and so an alternative campaign needs to be quickly thought out such that the programme's targets can still be met. Thus, the plan for the third year might include attaching a boiler efficiency talk to seminars that medium and small companies are holding with Chambers of Commerce on competitiveness. Again, the U3E could follow up the first few of these talks and, feedback which highlights that
19 the first two talks are pitched at the wrong level; this feedback is fed back to CONAE centrally who then re-adjust the talk.
It is possible that, through its co-ordination role with FIDE, the planning unit learns that FIDE is going to run a programme on variable speed drives for feedpumps to boilers and for the control of dampers. This co-ordination, might highlight that a joint promotional campaign could be run, one of benefit to both programmes.
During the programme planning process, a methodology for assessing energy savings achieved by the programme was drawn up. It could be that surveys in the second and fourth years are to be undertaken. The surveys could be by telephone and written questionnaire, the contacts being gathered with the co-operation of energy consultants active in the programme. The names of their clients are collated by CONAE (or perhaps the contacts are gathered from the Chambers of Commerce, or people who attended CONAE's events and/or recipients of CONAE's written material).
The survey is run by the planning unit, who ensure that it is co-ordinated with other surveys being carried out by CONAE (the aim is to minimise disturbance to industry). The questionnaire is drawn up with the input of the industry section, their input ensuring that the questions are possible to answer easily and that the answers will give enough detail for sustained energy savings achieved by the programmes to be calculated. The questionnaire is piloted by a specialist market research subcontractor, managed by the planning unit, and amended as necessary with the input of the industry section. The main survey is undertaken.
20 Appendix 1
Energy Efficiency Programme Targeting and Monitoring
UK Experiences and Methodologies APPENDIX 1
ENERGY EFFICIENCY PROGRAMME TARGETING AND MONITORING
This paper was presented to CONAE representatives on 3 October 1995. It presents an overview of how energy efficiency programme targets were set in the UK, together with methods used for monitoring energy savings made as a result of the programme.
The paper is divided into four sections: an overview of national UK energy efficiency bodies, a description of savings assessments made under the Energy Efficiency Demonstration Scheme which ran during the 1980s, the setting of a programme target and monitoring energy savings made as a result of the Best Practice programme (the current flagship UK programme), an overview of the lessons learnt in targeting and monitoring energy savings from programmes. A fifth section, on how some of the lessons learnt in the UK could be applied to CONAE, is contained within the main report.
1 OVERVIEW OF NATIONAL UK BODIES
1.1 Main Government Bodies
The main government body responsible for energy efficiency in the UK is the Energy Efficiency Office. It is currently part of the Department of Environment and consists of three divisions. The first division (EEO1) is responsible for domestic initiatives, including a subsidy scheme for home insulation for low income households. It also covers training and transport initiatives. The second division (EEO2) formulates government policies for energy efficiency, and is also charged with promoting cogeneration. The third division (EEO3) is responsible for research and demonstration and has overall management responsibility for the Best Practice programme.
The Energy Efficiency Office has ten Regional Energy Efficiency Offices. These are the responsibility of EEO1, each being staffed usually by two civil servants supported by some part-time assistants. Increasingly the Regional Energy Efficiency Officers are also becoming involved in environmental matters. Their function is to act as a local contact for industry and commerce and to signpost them to relevant government programmes and information.
The current flagship programme for industry and commerce (and more recently transport) is the Best Practice programme. This is essentially an information programme, as well as a vehicle for providing financial support for research. EEO3 contracts the managing of this programme out to two units, ETSU and BRECSU. ETSU undertakes work in the industrial and commercial sectors and BRECSU undertakes buildings related work. This programme is described in detail in Section 3 of this paper.
In addition to the government bodies for energy efficiency, there is a healthy energy consultancy sector and a strong equipment supply sector. These have grown up during the fifteen years of UK government programmes. 1.2 ETSU
In 1974, in response to the oil shocks from the Middle East, the UK Government set up a four-man policy advice unit. This started off as a project, based at a government nuclear research laboratory. This four-man unit was the origin of ETSU.
The initial policy studies were aimed at giving the government advice as to ways of reducing UK; dependence on oil. These studies led to the setting up of UK programmes to promote energy efficiency in industry and a research programme to support the development of renewable energy technologies. These programmes have been run by ETSU since 1978, each programme being run under different contracts and managed by different Government departments.
During the 1980s, ETSU steadily grew as the work it was asked to do was expanded. There were three core divisions: energy efficiency, renewable energy, and strategic energy studies. In 1989, in agreement with government, ETSU broadened its activities. In addition to the three core areas, ETSU now runs clean coal programmes, fuel cells programmes, a programme promoting environment technologies within industry and also undertakes a wide range of studies and projects for UK Govermment,and for governments and quasi-governments overseas, including the European Commission, Asian Development Bank, and the World Bank. In addition, the work of the Strategic Studies Unit has developed along three lines, those of energy in the environment studies, energy modelling, and transport studies and programme management.
2 THE ENERGY EFFICIENCY DEMONSTRATION SCHEME (EEDS)
2.1 Overview
This scheme was the first UK Government long-term energy efficiency programme. It ran from 1978 to 1989 and was managed by ETSU and BRECSU.
Its aim was to encourage the use of innovative technologies for the more efficient use of energy. Its main components consisted of a grant to an organisation that was the first user of a novel technology, and a promotional campaign that tried to persuade end-users to replicate the original demonstration using their own resources. As such, the demonstration hosts received financial benefit to offset the risk involved in being the first user of a technology. The independent monitoring of the project, which was then promoted to potential replicators, then tackled the information barriers found amongst potential replicators. In addition to the grant for innovation and the financing of dissemination elements, government grants were available to undertake research, which had the aim of stimulating the equipment supply sector.
The programme was set three main targets to be achieved during its ten year lifespan. These were that:
* Energy savings of £5 per year for every £1 of government spend had to be proved. 2 * Total energy savings of 4.5Mtce** * Mtce- milliontons of coalequivalent per year through replication were to be proved. * The above two targets were to be achieved for £70M in 1977 money. The actual energy savings claimed by the programme are 5.lMtce* per year through replication and these energy savings amounted to £11 for every £1 of government spend (1990 money and a 5% disccant rate). These savings were achieved for £43M in 1977 money. Thus, the overall programme energy saving targets were exceeded, and were achieved at a higher benefit to cost ratio, and for a lower overall government spend, than was originally envisaged and targeted.
It should be noted that the energy saving target and the benefit to cost ratio target were set as long term targets. It was ETSU's responsibility to make sure that these targets were hit irrespective of any external influences, in particular irrespective of macro-economic conditions. Thus, despite the fact that shortly after the EEDS programme started the UK entered into a prolonged and deep recession, ETSU still had to retain flexibility and imagination in its activities to ensure that the overall prograinme targets were met. ETSU also had to show that activities under EEDS and savings claimed were genuine savings and not savings caused as a rcsult of the large scale restructuring that UK industry underwent during the early 1980s. The following section explains how the energy savings were proved.
2.2 Proving Energy Savings Under EEDS
In 1983, ETSU made the decision that no attempt would be made to quantify the additionality of energy savings achieved during data gathering of energy savings. (Additionality is the causal link between the promotion of a technology and its take up). Instead, the task of monitoring energy savings directly achieved by the programme would be split into two components. These were:
* An exercise to establish what investments occurred after the new technology had been demonstrated, ie a purely factual exercise.
* An assessment as to the influence that EEDS had on the energy savings achieved, to be reviewed at formal milestones over the life of the programme.
Since any new technology which has been demonstrated to be economically and technically viable would sooner or later establish itself in the market place, EEDS was essentially concerned with advancing energy savings that would have been made. Whilst the extent to which energy savings are advanced is inevitably a subjective judgement, a guiding principle during ETSU's assessment of energy savings was that any figures should be capable of audit by an independent assessor.
The standard practice in the innovation literature is to assume that the market place penetration of any new product or technique follows a logistic or S-curve, as shown in Figure 1. The effect of a demonstration project and its dissemination could therefore be to:
Mtce-milliontons of coal equivalent 3 * Bring forward the energy savings by a fixed period in time. * Increase the market penetration rate. * Raise the market saturation level to a higher value.
There is no ready empirical method for distinguishing between the different shapes of the market penetration curves arising from the effect of EEDS, and it was assumed that all such variations may be adequately described by adopting a model in which the net effect of the EEDS was to advance the observed replication curve by a number of years. Thus, in Figure 1, the with-EEDS curve would represent the actual replication recorded or projected by ETSU, while a curve without EEDS would represent the degree of adoption which it is assumed would have occurred without the intervention of EEDS: the area between the curves represents the advancement of energy savings due to EEDS. An advantage for making such an assumption is that it allows ease of computation and only one parameter is required, ie the average time by which the replication is advanced.
This had implications for the way in which ETSU claimed energy savings, as each recording had to be verifiable. This meant that the energy savings achieved were probably under-claimed, because:
* Only investments for which there was a direct evidence were counted, contrary to normal procedure in market research surveys where, if 50% of an industry has been surveyed, the results would be grossed up statistically to derive an industry total.
3Savings were only counted from direct copies of the demonstration projects, despite the fact that equipment suppliers confirmed that EEDS had wider benefits, in particular in easing their sales of equipment not directly demonstrated by EEDS.
Figure 2 shows how the recorded energy savings in four selected sectors increased over the programme. The curves represent annual energy savings being made as a result of direct copies of the demonstration projects (ie 'replication'). Data was gathered from contacting equipment suppliers, consultants and end-users. Equipment suppliers and consultants could confirm sales of equipment, together with its size and intended application. Industrial end-users could confirm that the technology had been purchased and could give details about applications and working patterns on their site. Any sale of equipment could then be scaled to that of the original demonstration project, and a scaled energy saving could be determined for the replication.
Figure 2 thus shows a rising S-curve, as expected by the penetration of a novel technology into a market place. It shows, for instance, the cumulative annual energy savings being made by the total sales of recuperative burners into the steel industry at any year. It does not, however, show how far the energy savings have been advanced in time over what would have happened without EEDS. This advancement in time was assessed in different ways in different sectors, but the techniques are illustrated by two case studies detailed below:
4 Case Study 1: The Steel Sector
The steel sector was an industry where energy consumption had long been an important consideration, so good historical evidence of energy use per unit output was available. Furthermore, reheating/heat treatment furnaces, where EEDS was particularly active, had been used in much the same way over time: they essentially heated similar quality/sizes of steel billet, and so lower energy use could be identified with improved energy efficiency rather than any other changes, such as changes in product mix.
Figure 3 shows a plot of the average specific energy consumption in the steel industry over time. The data points for 1975 and 1980 represent the average values for the UK steel industry. It should be noted that there is of course a considerable spread round these average values. EEDS focused heavily, within the steel industry, on promoting recuperative burners. For 1985, the figure of 2.8GJ per tonne represents the average figure for plants which had not incorporated recuperative burners in their furnaces. The figure of 2.4GJ per tonne is representative of the average energy used in 1985 by those plants which had installed such devices. It can thus be seen that, between 1980 and 1985, significant energy savings had been made by firms who had not installed recuperative burners, ie these savings were not achieved by any EEDS activity. However, those firms that had copied the demonstration projects had made significant additional energy savings over those that had not, something that could clearly be linked to EEDS.
Figure 3 also extrapolates data from 1985 onwards. This is for illustrative purposes only, showing that even firms that had not been influenced by EEDS would, in the long term, improve their efficiency to a level similar to those who had been influenced by EEDS (assuming that from 1985 there was no further govermnent programme). The energy savings directly attributable to EEDS are thus shown by the shaded area.
As of 1985, firms that had been influenced by EEDS were averaging an energy consumption of 2.4GJ per tonne. Extrapolating the line of specific energy consumption of firms not influenced by EEDS would indicate that such firms would achieve a specific energy consumption of 2.4GJ per tonne around the year 1991. Thus as of 1985, it could be argued that the energy saving recorded had been advanced by six years. However, this advancement period varies with time (and from technology to technology); the average advancement period shown by the shaded area (in the final analysis of the EEDS scheme in 1989) showed that the average advancement period was three years. It was thus this figure that was used by ETSU in calculating energy savings achieved in the steel industry.
Case Study 2: Building Energy Management Systems (BEMS)
Building Energy Management Systems were a new technology that developed quickly, along with the development in the electronics industry, during the 1980s. A major part of the EEDS programme was to help develop systems and demonstrate them. It would have been, in theory, possible for ETSU to claim that all of energy savings achieved by BEMS systems in the UK could be attributed to EEDS, as all innovations were supported as demonstration projects. However,
5 ETSU felt this would not be justifiable, as some of the BEMS development would have happened even without EEDS. Thus, the question was, how much extra energy saving (in terms of increased market penetration and advancement) were achieved in any year by EEDS in BEMS?
The graph for BEMS shown in Figure 2 was obtained in a similar manner to that of the steel sector (ie through counting equipment sales and calibrating energy savings achieved against the demonstration projects). However, only half the energy savings were claimed, as this was the ETSU estimate of, at any given time, the extra savings achieved by EEDS. This estimate, that EEDS effectively doubled the market at any given time, came from several different sources. These included:
1. Discussions with equipment suppliers revealed that they estimated that between 50% and 75% of their sales of equipment which had been demonstrated within EEDS were due to the EEDS programme (ie they wouldn't have happened at that time without EEDS). They also claimed that their total sales (ie including BEMS equipment not directly demonstrated by EEDS and therefore not included within the ETlSU energy saving figures) had also benefited by being associated with similar equipment being demonstrated. Indeed, they estimated that between 30% and 40% of their total sales (ie equipment not demonstrated within EEDS and demonstrated equipment) were due to an association with EEDS.
2. Another indication of how EEDS had a positive influence on the early introduction of BEMS into the UK market place was obtained by comparisons of the BEMS market within the UK and overseas. Infolmation from an independent market research organisation is shown in Table 1 below.
TABLE 1 BEMS SALES IN WESTERN EUROPE COUNTRY TOTAL COMMERCIAL & SALES* PER RETROFIT* 1985 PUBLIC SERVICE Mtoe++ SALES PER SALES ENERGY SERVICE Mtoe++ ($M) (Mtoe++) ENERGY
F R GERMANY 54 25.15 0.76 0.54
UK 51 18.06 1.00 1.00
FRANCE 34 28.27 0.43 0.34
NETHERLANDS 16.5 6.12 0.96 0.58
BELGIUM 8 2.88 0.98 0.59
* Normalisedrelative to UK ++ Million tons of oil equivalent 6 The total market sales are not immediately relevant since they do not take into account either the size or the climate of the country. Since more than 75% of BEMS sales are associated with the commercial or public service areas, a crude normalisation was attempted using the energy consumed in these sectors as given by 'the energy balances of OECD countries', published by the IEA.
This comparison shows total 1985 sales figures per Mtoe in the UK were in the forefront, along with the Netherlands and Belgium. However, this could mask different new build rates in these countries, especially as during the early 80s the UK was in a prolonged and deep recession. Thus, the final column of Table 1 shows the retrofit sales per Mtoe, and shows that, in 1985, the UK had an impressive lead over other countries in terms of BEMS sales.
3. Another way of comparing BEMS sales figures is to compare the BEMS sales relative to the floor area for the commercial and public sectors. The assumption here is that the service industries are similar in all countries and that similar levels of comfort and illumination exist in all countries. Lee Schipper detailed this comparison in an issue of Energy Policy in June 1986. Table 2 below, shows this comparison for several countries within the OECD, and once again the UK comes out in a favourable and leading role.
TABLE 2 BEMS SALES IN OECD COUNTRIES COUNTRY TOTAL COMMERCIAL & 1982/3 SALES/*FLOOR 1985 PUBLIC SERVICE FLOOR AREA SALES ENERGY AREA ($M) (Mtoe++) (kM2)
USA & CANADA 210 170 5,240 0.53
UK 51 18.06 670 1.00
F R GERMANY 54 25.15 905 0.79
FRANCE 34 28.27 689 0.64
* Normalised relative to UK 4+ Million tons of oil equivalent
From these international comparisons and the evidence of equipment suppliers, ETSU made the conservative assumption that at any given year only half the market had been directly influenced by EEDS. Thus, the BEMS curve in Figure 2 only shows half the market. In addition to only claiming half the market, ETSU also concluded, conservatively, that this half of the market had only been advanced by two years (as opposed to the three for instance in the steel industry).
7 The two case studies above show how ETSU assessed the effect of EEDS in two differing sectors. Similar principles were applied in all sectors EEDS operated in. In a strictly scientific sense, it is impossible to deduce a measure of the additionality which is entirely free of subjective judgement. Nevertheless, it was felt that the evidence from historical trends in energy consumption, judgements by ETSU sector experts and from information presented from equipment suppliers and international comparisons were reasonably consistent. It was felt that the biggest uncertainty was in the advancement period selected for the energy savings, as the record of sales and resultant energy savings were essentially free of subjective judgements. Sensitivity analyses on assumed advancement periods were undertaken and reported. However, as ETSU had made robust assumptions in the claims for advancement periods, the advancement periods claimed were widely accepted.
2.3 Overview of EEDS Savings Methodology
The EEDS activities covered many technologies and sectors. The methodology developed for energy savings contained the following elements:
* Energy savings within each sector, or if appropriate each technology, were assessed individually on a bottom-up basis. This applied to both investment stimulated and to assessments of the advancement of energy savings.
a The first stage of any sectorial or technology assessment was to assess the level of sales by year. Only sales of equipment directly related to demonstrated technologies were included in this. Sources of data sales included manufacturers, consultants, market research studies and end-users.
• The next stage was to 'calibrate' the energy savings achieved by the recorded sales. This was done by essentially scaling each investment decision against the demonstration project. There was confidence that the demonstration project was a typical application because this was a key feature in the selection process of demonstrations. (If a demonstration is atypical, end-users will not replicate it, so great care was taken to ensure demonstrations were in typical applications and were such that any investment replicators would need to make would be within their accepted financial criteria). If there was any doubt about the calibration process, a conservative assumption was made.
* An assessment was made of the level of sales that would have happened without EEDS. In the case of the steel sector example above, it was assessed that EEDS brought forward all investments by a similar amount. However, in the case of BEMS above, it was estimated that half the market would have happened at the time it did even without EEDS. This assessment was based on sectorial knowledge of project officers, international comparisons and evidence from equipment suppliers.
* Finally, it was recognised that, for the sales of equipment influenced by EEDS, EEDS had only brought forward the investment by a number of years. Thus an assessment of the 8 advancementperiod in each sector was made. This was the most subjective part of the energy saving calculations,and was subjectedto sensitivity analyses. Evidence was again taken from internationalcomparisons, from sectorialknowledge of ETSU sector experts and from end-usersand equipmentsuppliers. Again, conservativeassumptions were made where appropriate.
The proceduresdeveloped above gave confidencethat the energy savings assessmentswere robust and perhaps conservative. However,as indicatedin Section2.1, original targets were exceeded. It is ETSU's belief that a clear setting and exceedingof targets was one of the main reasons why the programmewas fundedfor its full ten year period,such long term programmesbeing rare in the UK.
In 1989 the decision was made to close the EEDS programme,not because of a failure to meet energy savings targets, but because it was becoming increasingly difficult to meet short-term operationaltargets. In particular,there was a target to generatebetween 25 and 30 new projects every year. As the schemehad succeededin stimulatingthe UK to catch up its deficit in introducing technologies already demonstratedin other countries, the scheme was now introducing new technologiesonly as they came out of the research laboratories. This rate of innovation was too slow to meet the programme targets; ie the programme had achieved its main aim in terms of ensuring that UK industry had caught up with the rest of the world in terms of the use of novel technologies. It was at this stage, that the EEDS programme was closed and the Best Practice programmewas introduced.
3 THE BEST PRACTICE PROGRAMME
3.1 Overview
This section describes the Best Practice programme elements and the organisations who are responsiblefor runningit. Section3.2 describeshow the overall targets for the programmewere set and Section3.3 describeshow, operationally,the programmeis run at ETSU. Section3.4 discusses energysavings assessment methodologies for the Best Practiceprogramme.
The aim of the Best Practice programmeis to encouragethe use of technologiesand techniquesfor a more efficient use of energy. It widenedthe scope of EEDS in two respects:firstly, it promoted the use of technologiesalready in the marketplace (ratherthan just novel technologies);and secondly,it incorporatedthe use of managementtechniques and training for energyefficiency (ie broadeningthe scope away from technologyalone). It is aimed at industry, commerce,the public section and, since 1994,the transportsector.
The programme contains several informationelements. These include benchmarkingactivities (in terms of specific energy consumption),the production of independentlyaudited case studies of individual measures, the production of Good Practice Guides that cover a range of technologies and/or techniques, and the production of independentlyaudited demonstrationprojects of novel techniquesand technologies. The programmealso containsfinancial support for research.
9 The dissemination elements include a wide range of products. These include seminars, interactive workshops, site visits to individual projects, audio tapes, videos, software for self-assessment and other advanced computer assessment techniques (eg expert systems). The several report formats are also available via an enquiries bureau. The Energy Efficiency Office contract ETSU to run the programme in industry, commerce and transport and BRECSU for the building-related projects.
3.2 Programme Target Setting
The overall long-term energy saving target for the programme was set through both top down and bottom up analyses. Figure 4 shows various breakdowns of the UK energy consuming sectors, as of 1992. These breakdowns are similar to those found in the late 1980s, ie those used during the formulation of the Best Practice programme targets.
The following points were used in developing top down aims for the energy saving target of the Best Practice programme:
3 During the 1980s, there was a subsidised audit scheme for industry and commerce. These audits invariably showed that 20% savings could be made using measures that were economic even if funded totally by the end-user (ie they met the end-user's own financial criteria, this usually being a pay-back of less than two years).
* For political considerations, as the tax-payer was funding the programme, the programme had to make a significant impact upon UK energy consumption, ie it had to be something that could be noticeable on a macro scale.
The considerations that went into the bottom up approach of setting a programme target included use of knowledge gained during the 1980s under the EEDS programme. In particular, individual industrial sectors were assessed for their own energy saving potential using the following information:
Information from the sectorial specialist at ETSU, who's knowledge had been built up during the EEDS programme.
* Consultations with consultants who specialised in individual industrial sectors.
* Consultations with industry specialists such as trade and research associations.
* The results of modelling energy supply and demand under different scenarios.
During the process of gaining political approval and finance for the Best Practice programme, matching the top down and bottom up overall target was an ongoing process. The eventual target reached was that the programme should, over a ten year lifespan, save an additional 5% energy consumption over what would have happened without any programme. This gives a figure that is noticeable on the macro scale, and thus politically acceptable, and yet is thought to be achievable 10 from the bottom up approach. It should be remembered that, whilst 20% savings were achievable in theory, industry would do some of this without the Best Practice programme and it would not be possible to persuade everyone to do everything. Thus the 5% additional energy savings target was arrived at as a balance between the bottom up achievable target and the top down political motivational requirements.
Whilst the 5% additional energy savings target was the overall programme target, ETSU has broken this target down by subsector for operational reasons. ETSU also has to meet various operational targets on an annual basis. The process by which ETSU allocates energy saving targets to individual sectors and plans operationally, is described in the following section.
3.3 Programme Planning
The Best Practice programme has been set long-term energy saving targets, and is a programme envisaged to run ten years. However, the budgets for the programme for any given year are uncertain as they form part of annual public expenditure which is subject to market and political forces. Thus, ETSU needs to respond to both uncertain short-term budgets and changing macro- economic conditions (there was another prolonged recession during the early 1990s), such that the activities undertaken under the Best Practice programme still achieve the long-term energy saving targets. To achieve this, ETSU plans at three different levels: long-term planning, medium-term planning and annual business plans. This section describes the planning process.
3.3.1 Long-Term Planning
To meet the long-term energy saving targets, ETSU has to ensure that it is working in the most appropriate industrial subsectors. The bottom up energy saving potentials of these sectors must always be such that they can meet the overall long-term energy saving target. This requires long- term decisions, as energy saving within a sector or subsector cannot be achieved overnight: there is usually at least a two year delay between the initiation of energy saving activities and the start of significant replication (ie savings), because the only tools of the programme are information and research. Whilst information is the quickest method of influencing people, it takes over a year to put together initial published information, with dissemination the following year and process replications starting in the third. Research, of course, usually takes even longer to achieve energy savings.
Given this inertia between initiation of activities and energy savings replication, long-term planning is required to ensure that work is being undertaken early enough in the most appropriate sectors. The decision of which sectors to be focusing on is made from a variety of sources, including:
* Top down analysis of potential savings within a sector, such as shown in Figure 4.
* An assessment of what technologies and techniques are required to achieve this energy saving within the sector, together with typical costs and paybacks: a significant saving from low cost methods is easier to achieve than promoting high cost, long payback measures. 11 * Assessment of the number of people that need to be influenced and how responsive they would be to influence: it is easier to operate in a sector of a relatively small number o.f companies who are technically orientated than in, for instance, the many hundreds of thousands of three or four-man businesses in the UK.
* Assessment of the receptiveness and co-operation of a sector; if a sector is totally preoccupied or has no effective delivery mechanisms (eg trade bodies), it is harder to influence.
* Long-term modelling of end-user energy consumption under different economic scenarios: this reveals the likely effects of long-term macro changes, which could influence the use of individual technologies or the developments of individual sectors.
* Strategic and political issues are also assessed, to ensure, for instance, that appropriate long term measures (eg Cogen, training, general attitude change) are promoted alongside short and medium term savings (eg no-cost methods).
The detail of this long-term planning is further refined in the medium-term planning, as discussed below.
3.3.2 Medium-Term Planning
The long-term planning highlights whether individual sectors, subsectors, cross-sector technologies or cross-sector techniques have the potential to contribute to long-term energy savings targets. An individual ETSU sector expert is then allocated, as part of their activities, to draw up a medium-term plan or strategy for that area. This is essentially a two to three year plan of what activities might be undertaken, both from a technical and a marketing point of view, by the Best Practice programme. This strategy is developed through commissioning, market research (covering technical and marketing issues), and by speaking to representatives from all related areas (eg end-users, research and trade bodies, equipment suppliers, consultants and other specialists). The strategy covers the following topics:
* Overall status of the area, together with short-term and long-term problems and opportunities.
* The current level of technology and techniques being used.
* The potential technologies and techniques that could be used.
* The energy use and energy savings potential and related costs to the end user of implementation.
* The market barriers to energy efficiency.
12 * Influencing channels, ranging from events, magazines and journaIs, third parties who could be used as conduits for messages, etc.
* Energy saving targets for the area, in terms of what proposed activities over the next two or three years could achieve in terms of contribution to the long-term energy savings target.
Once this strategy is approved by an independent committee, the project officer then implements its programme over two years, subject to constraints imposed by the annual business plan which is described below. As the sector expert implements individual projects (eg a demonstration project or a research project), long-term energy saving targets are set for that activity. This again is fed back into the long-term planning process, to ensure that the result of individual activities still keeps on track to meet overall energy saving targets.
3.3.3 Annual Business Plans
Individual sector, technology and technique strategies propose activities for each sector. However, annual budgets are limited, and are not completely predictable even in the short-term. Thus a balance has to be achieved between the budget available and the bottom up competing demands for resource from each individual area of activity. This is drawn together in the annual business plan. This plan has many functions, including
* Ensuring resources aimed at medium-term strategy formulation, and individual project recruitment are optimised.
* Ensures that individual sector marketing initiatives are co-ordinated, and where appropriate combined.
* Ensures that the demands on end-users made by market research activities are minimised (end-users do not want to spend all their time filling in market research forms).
* Ensures that overall energy saving data collection exercises are co-ordinated.
Choices have to be made between individual activities, as the bottom up demands from individuals always exceed the annual budgetary resource. The choice between activities is driven largely by the potential benefit to cost ratios of individual activities, but political considerations are also taken into account, eg a government policy to increase the competitiveness of SMEs.
3.4 Energy Saving Assessments
The techniques for energy saving assessment that were developed under EEDS (and are detailed in Section 2.2) have been incorporated into the process of proving energy savings stimulated by the Best Practice programme. The EEDS methods were essentially developed for showing how novel technologies were introduced into a market place. They comprised two components, firstly showing
13 how the market was penetrated from a zero base, and secondly showing how EEDS brought forward the development of that market.
The Best Practice programme requires additional methodologies for proving energy savings. This is because the Best Practice programme is active in a broader range of technologies and techniques than EEDS was. This broadening is, in particular, in two areas. The first is in a support of pre- competitive research, where groups of companies come together and undertake research with the aim of turning these into products after the Best Practice programme involvement is finished. The second area is in stimulating measures widespread take up of measures which have already achieved some market penetration, ie the Best Practice programme is looking to steepen the market penetration curve over what is already happening. This is further complicated by the fact that the Best Practice programme does not concentrate solely on technologies, but also encompasses areas such as management techniques and training. These latter areas of activities are more difficult to track.
This broadening of the Best Practice programme over EEDS required the development of more techniques for energy saving assessments. These are best illustrated by the two case studies detailed below, the first covering the research area and the second covering methods by which savings of technologies already in the market place and management techniques are assessed.
Case Study 1: Higher Efficiency Motors
ETSU has a full-time motors and drives sector expert in view of the energy use and potential savings available through the use of higher efficiency motors, variable speed drives and automatic switch-off systems. During the first years of the Best Practice programme, high efficiency motors were promoted to end-users. Despite this, market penetration of higher efficiency motors was generally less than 5%.
The 1991 strategy on motors and drives recognised that the main barrier to these higher efficiency motors was that very few motors were sold directly by motor manufacturers to end-users. The vast majority were sold either through original equipment manufacturers (ie pump, fan etc manufacturers) and through stockists. Their one over-riding driving force is lowest first cost. Thus the market penetration for higher efficiency motors (which then cost 30% more than standard motors) was very difficult. Despite the higher cost, it was still possible to achieve paybacks of only a few months. However, the strategy recognised that, given the market, it would be very difficult to increase the penetration of higher efficiency motors. Instead, the strategy proposed research activities to reduce the cost of higher efficiency motors.
At the same time, the major motor manufacturer in the UK recognised that their range of motors was reaching the end of their life, and that a new range needed to be developed. There was discussion within the company as to whether this new range should be developed along the traditional lines of reducing the capital cost of motors (at the expense of efficiency) or whether a new range could be developed such that there were improvements in efficiency, together with further additional features
14 which could be built into the motors, without requiring an increase in manufacturing costs over the current ranges of standard motors available in the UK.
ETSU worked with the company in developing a research project to enable the development of higher efficiency motors at the standard motor cost. This turned out to be a very large project, and thus a major risk for ETSU. The research required a significant proportion of the overall Best Practice programme budget, though the potential energy savings were large. In view of the demand on the budget, strategic decisions had to be made within ETSU as to how to accommodate this project.
There were also risks to the end-user company, in that it marked departure from traditional developments in motor manufacturing. However at the end of a four-year project, the results have been successful and the company is now starting to develop and market new ranges of motor that cost the same as current UK standard motors, that have efficiencies equivalent to the best higher efficiency motors available.
In terms of energy saving assessment, ETSU will be counting the sales of the companies' motors, and, with knowledge already built up over the years about motor usage patterns, make an estimation of the energy savings achieved. There is clear evidence that, without the Best Practice programme's involvement in the research, this market transformation would not have happened. This evidence includes the fact that high level board discussions took place within the company both before and during the project, discussions which showed great reservations about the marketing implications of the research directions.
In addition to transforming the products of the major UK supplier of energy efficient motors, the project has also had the effect in terms of stimulating the competition. ETSU will again assess the sales of higher efficiency motors of other manufacturers, which will enable energy saving assessments to be made.
Over the coming years, it is likely that higher efficiency motors will gain market shares of the order of 80 or 90% in the UK. Before the project, market penetrations were stagnant at around 5%. The difference can thus clearly be assigned to the research project and the Best Practice programme involvement. Thus, the counting of sales makes a suitable method of assessing energy savings achieved as a result of the Best Practice programme in this area.
Case Study 2: Management Techniques and the Use of Surveys
Under the Best Practice programme, ETSU is promoting various management techniques aimed at increasing the efficient use of energy wvithinend-users. These techniques cover a range of subjects, including the gaining of senior management commitment, the development of long-term energy saving strategies and structures for companies, the monitoring and targeting of energy savings, proper financial accounting of energy, the linking of energy into traditional company controlling systems (such as statistical process control, total quality management, environmental programmes,
15 etc), the motivating of staff for energy saving and proper financial appraisal of energy efficiency projects (including ensuring that engineers have enough financial skills to talk to accountants).
This work involves influencing a wide range of people within companies, from board level members through senior management and engineers right down to the shop floor, where motivation plays an important part. This area of work poses large problems for energy saving assessments. These problems include the fact that:
* The work covers several different projects and marketing activities.
* The work is aimed at several different levels within a company.
* There are few products or markets to track, so a relatively few equipment suppliers cannot be relied upon to give a good picture as to the market.
Any actions taken by companies can also involve the use of technology, so double counting with technology energy savings must also be avoided. Given the large number of projects and end-users involved, the only realistic method of assessing energy savings is through a survey of end-users. ETSU undertakes three types of survey. These are:
. Process benchmarking surveys, where end users provide details on the specific energy consumption of their process. These are published by ETSU in a confidential manner so that companies can compare themselves with competitors. The surveys are repeated at intervals and give an indication of the change of performance of the sector.
* Attitudinal surveys, which test a range of attitudes of the target group to energy efficiency.
* Energy saving surveys, which aim to measure energy savings achieved by the programme.
Only the third of these survey techniques are used to quantify energy savings. The first two are useful motivational and operational tools, but are not rigorous in assessing savings or in linking them to Best Practice programme activity. Thus the discussion below focuses on a third survey, the energy saving assessment survey.
It is important that this survey is constructed so as to avoid double counting and also such that it proves the additionality of the programme's activities over what would have happened without the Best Practice programme. ETSU has developed a six stage process for the survey, in particular to tackle the double counting and additionality problems. The steps involve the following:
Contacts database: ETSU keeps a contacts database of everyone who has attended events and who has requested and received literature. Beyond this, there are people who will have been influenced through articles in trade journals and through the general movement of individuals between companies. ETSU has accepted that these latter two influencing methodologies are impossible to track, and so discounts the programme's effect in energy saving assessments. 16 Selecting a sample: For each individual survey, the total populationof contacts from the contacts database can be established. The population for, say, a managementtechniques energy savings assessment survey is selected only from those contacts who have been to specified management techniques events or have received specific management techniques publications. Of this population,a representativesample is chosen (for example500 people from a population of 5,000). This sample is then surveyed with a questionnaire (often using both telephone and written questionnaires). It is recognisedthat not everyonein the sample will respond (for instance only 100 responsesmight be achieved).
Establishlinkage: The first stage of a survey is to establishsome form of linkage betweenthe Best Practice programmeand the person being surveyed. This will range from simple questions such as "Do you remember receiving the publication or attending the event?", through questions such as "How did you use the information?",to more subjective ones such as "Did you use it to help influencedecisions made withinthe company?". Of course,if the recipientdenies any knowledgeof the event they attended,or fails to rememberreceiving a publication,it cannot be said that the Best Practice programme had any influence and any energy savings they have achieved cannot be ascribedto be Best Practiceprogramme.
Establishaction/investment: The questionson the survey are written such that the respondentcan detail what investmentand/or action has been made. The questionsare asked such that ETSU can make some assessment of the energy savings that might have been achieved. In termnsof management techniques, questions establishingaction are asked, for instance "Have you run a motivationcampaign, if so how wide was it?".
Estimatesavings: The respondentis invitedto estimatethe energy savings achievedas a result of their actions. ETSU also makes its own calculationsfrom the data on investments made and/or actions taken. There are times when the two methodsof estimationderive different answers. This could be for many reasons. However, ETSU has judged that it is not cost effectiveto go into the reasons at an individualsite, and so accepts the lower of the two energy saving estimates. In the ETSU calculations,investments are 'calibrated' against known case studies and assumed payback criterias. For the managementtechniques area, they are again 'calibrated' against the known case studies. The case studies have been chosen such they are typical examples and have been independentlyaudited to verify energysavings achieved.
Grossing up: The energy savings achieved by the respondents to the sample population are totalled. The sample then needs to be grossed up to the total population. As only a fraction of the sample will have responded to the survey, care needs to be taken to ensure that this fraction is representative of the total population. If the respondents are biased in any way, individual respondents can be removed before the grossing up exercise (for instance, respondents under a motors survey included two water companieswho had made major investmentsin variable speed drives. This distorted the energy savings achievedby the respondentsample. There were also few water companiesoutside the sample populationselected. Thus, these two water companieswere not included in the average savingsmade by the sample population). The average savings achievedby the respondentsis calculated,the respondentsbeing only a certain percentageof the sample. This 17 average saving is then assumedto have been achievedby a similarpercentage of companiesamongst the total population. (In the example given above, and assuming the respondents were a representative sample of the population, the savings achieved by the 100 companies would be multiplied by 10, and this would be assumed to be the savings of the total population). Thus no energy savings are claimedfor non-respondents,nor for their equivalentsin the total population.
This method of surveyinggives ETSU confidencethat there has been some linkagebetween the Best Practice programme and the energy savings achieved, in that only direct contacts have been surveyed and only actions taken after the time of contact will be counted. It underestimatesthe energy savings achieved by the Best Practice programme,in that not all those that have been influenced have been assessed. The survey techniquesare inevitably less rigorous than counting equipment sales, though ETSU believes that the conservatismprevalent in all stages of the survey techniqueensure that the energysavings claimedare robust.
18 4 GUIDING PRINCIPLES OF PLANNING AND SAVINGS ASSESSMENTS
During the seventeen years of running energy efficiency programmes, ETSU has developed several guiding principles for its work. In terms of planning and energy savings assessment methodologies, these are detailed below.
4.1 Overview of Players
The running of energy efficiency programmes involves the bringing together and stimulating of many different players. These include:
* End-users, covering several different levels within end-user organisations. These levels range right from boardroom level down to shopfloor level.
* Equipment suppliers, who develop new products and market existing products.
* Consultants, who can provide background market research and audit demonstration projects and who's market programmes are trying to stimulate.
'Trade/research bodies, who can give good feedback on industrial sectors and provide good promotional avenues for material.
* Other third parties, who can be very effective marketing channels for information.
Energy efficiency programmes need to work with all these types of organisations in a co-ordinated manner. They also require feedback from all bodies such that programmes can be continually improved.
4.2 Overview of Planning
Programme planning is required. Planning over several different timescales is an essential component of ensuring that an overall programme has overall direction and effectiveness. This planning should be done at several different levels, including:
* Long-term: this covers an overall energy savings goal. This is typically over a five or ten year time horizon. This goal enables a long-term focus, with shorter term planning then required to work out how this overall goal can be achieved within the prevailing macro- economic climates.
Medium-term planning: this tackles issues at the individual programme, sub-programme and individual project level. It is planning over a two or three year time horizon and details how immediate problems that are going to be tackled by activity in that programme. Planning at this level includes setting specific energy saving sub targets and assessing the cost effectiveness of activities. 19 * Short-term planning: this involves annual planning for activities in each area, and tackles the issues of how all activities can be co-ordinated.
Planning is required at all levels within an agency, it is not a task of one individual or a small group. Both the short-term and medium-term planning is initiated by all individuals (ie is a bottom up function) which is then co-ordinated and (usually) trimmed by management to meet budgets available. ETSU probably devotes 10% of its time to planning, in order to ensure full co-ordination and the optimising of the use of resources.
4.3 Energy Saving Assessment and Operational Effectiveness Overview
Sections 2.2 and 3.4 detail several methods for undertaking energy saving assessments where they are directly related to a programme. They essentially fall into two categories, counting of equipment sales and the use of surveys. Both techniques need to be very carefully used to ensure that results are believable and that additionality of the programme can be shown. It is recognised that there is no rigorous method which can guarantee direct energy savings shown by an energy efficiency programme, but the two methods detailed do give robust figures for energy savings achieved, at a bearable cost to the programme.
ETSU recognises that there are some areas where it is not sensible to track energy savings. One such area is the area of tertiary education (ie promoting energy efficiency to undergraduate students). Whilst it might be possible to track individual energy efficiency components to general engineering courses, there are many practical difficulties in tracking the individual students, which makes the process cost-ineffective. This is because lecturers generally do not wish to give lists of students, and even if they did, the students are so mobile that it becomes impossible to maintain direct contact with them. ETSU thus recognises that this is an area that has to be carried as an overhead activity, as costs will be incurred by the programme but energy savings cannot be linked directly to activity. This has to be recognised in the medium and long-term planning that ETSU undertakes.
It is also difficult and perhaps cost ineffective, to track energy savings achieved by cross fertilisation, for instance by individuals moving companies or through individuals unknown to ETSU who read articles in the technical press. This is an area, however, in which ETSU are currently investigating measurement options.
The monitoring of a programme's effectiveness covers two different areas: firstly, the energy savings achieved as a result of the programme, and secondly, operational effectiveness. The former is the reason for the programme existing in the first place and has to be undertaken such that time is given, following a programme activity, for actions to be implemented by end-users. The latter needs to be undertaken close to individual programme activities, in order to establish whether or not the information is understandable, what the end-user needs and/or what additional tools the end-user needs. This then continuously helps steer the programme.
20 Some of the guiding principles that ETSU uses for monitoring include:
* Minimising the disturbance to industry. End-users, equipment suppliers and consultants do not want to spend large amounts of time showing what they have done in terms of energy saving: they have many other more pressing priorities.
* Pragmatic, but robust approach to programme energy savings assessments. ETSU does not attempt to exactly quantify all the energy savings achieved by the programme, as this would involve prohibitive costs. Thus in any programme energy savings assessment, where a choice is possible, a conservative option is always taken.
* Operational monitoring is mainly through activity surveys. Thus, for instance, after a workshop, delegates will be asked whether the material was pitched at the correct level, whether the coverage was sufficient and to rate individual speakers and the venue. All this material helps focus an activity such that end users gain the maximum from the activity.
* Keep monitoring costs to 2% of programme costs. This budget covers both the energy savings assessment work and the operational monitoring work. It is important that there is a clearly defined budget for this activity, to ensure that it takes place. However, the budget is not large as it does not directly contribute to energy saving measures, though the operational monitoring will improve delivery mechanisms.
* Co-ordination is required. Any energy efficiency programme has a large range of activities. Many of these will be aimed at the same end-user. Co-ordination of both energy saving assessments and operational monitoring activities is required to both minimise the disturbance to industry and avoid any double counting of energy savings.
21 Olbserved co |re lication
- {NY%-/ faire
LUw
Time
Figy1 EEDS Additionality Model
jbclargl244 Fig 2 EEDS Replication by Individual Sector as a Function of Time
500 Steel
400 / ; g~~~~~~~~1/2) 400
__300
CD
Waste
200-
Food & Drink 100
1980 1982 1984 1986 1988 Year 23 3.5______HistoricTrend (without EEDS) 3 Application of EEDS conceDts 3
2.5
2
1975 1980 1985 1990 1995 2000 YEAR
Fig 3 UK Steel Industry Energy Consumption Fig 4 UK Energy Statistics for the Year 1992
5". x Steel l
. (x 1/2) *EMS
3M I '
I I ,''~~x/
_ x ~~~~~~~~~~~~~~~~I !
¢I X Waste
: X//
' /!
'1 Fesd ADrink
logo 1982 1984 1986 198 Year 25 OtherMetalsEngineering F@i 3% 13% 10% ~~Textiles Chemicals 3% 19% *~~~~~~ither 16% MineralProducts per 12% Iron& Steel 6% 18% Fig 4a Industrial Energy Use by Sector Heat Supplied Basis (1992)
Refrigerati.nHigh Temp. Processes 2% 21% Lighting LowTemp. Processes 3% 26% _Electrochemical 3% Other _ SpaceHeating 4% ~~~~~~13% Feedstec _ PowerGeneration 4% MotivePower 3% 21% Fig 4b UK Industrial Energy Cost by Technology
Lighting ProcessOhango % 23% Retrofit 37%
Boilers 5% SpaceHeating 15% Motors GoodHousekeeping 5% 14% Fig 4c Relative Contributions of Measures/Techniques to Total Energy Saving Potential by 2020
26 Appendix 2
Details of EU Projects with CONAE APPENDIX 2 - DETAILS OF EU PROJECTS WITH CONAE
MEETING REPORT
Friday 6 October at CONAE Offices
Present: Joseph Ordoqui - BCEOM Ricardo Escobar - CONAE Andy Gilchrist - ETSU
History of EU involvement The EU had some studies made of transport intersections in Mexico City during the mid-80s. This has obviously led to some good implementation, as traffic throughout Mexico City flows incredibly well despite its volume. This study also suggested the setting up of CONAE, modelled on generally French lines, though there is also Spanish influence.
The first co-operation agreement between CONAE and the EC ran from 1990 to 1993 and included Spanish actions on technology transfer in industry, including first and second level energy audits. The French were involved in transport audits and driver training. At the same time the World Bank was supporting cogeneration studies and standards work.
Current Projects There are two current EC projects underway, both started January 1994 and are scheduled to finish December 1995. These are ENERMEX and CUESTAENER. Details on these are provided below.
ENERMEX This started off as a potential project in 1990 using Kraft and Largen (from Germany) and Idom of Spain. However they didn't take the contract and BCEOM and CADEM took over, starting January 1994. The objective was to promote transfer of technology between the EU and Mexico and also within Mexico. It has three components:
1 Cogeneration Identification of Mexican firms who could manufacture components for cogeneration systems. Fifty companies were identified and a report written and disseminated in Europe. There are perhaps five or six Mexican companies capable of putting in cogeneration systems and about ten or twenty could be associated with systems. This component of the project also envisaged a medium-sized cogeneration demonstration (5-20MW) but institutional problems have prevented its implementation. Instead, the project was diverted into a study on biomass cogeneration systems, principally using rice, wood and sugar.
1 2 Transportation This component has defined a diploma course content, prepared the course and put on the first course between April and July of this year. It is a weekend course, covering about 13 consecutive weekends. Fifty people attended the course, which covers audits, driver training, mechanical training, logistics, use of information within companies, and the management of transport companies. CONAE are now revising the course content and will do the second course using their own resources.
3 Institutional support This should have covered the basis for a long-term strategy for CONAE, including discussions on the legal status of CONAE, its organisation, databases, how it should participate in national energy planning, financing, etc. A first draft of a report has been written, but things have changed since this draft report was written, and Ordoqui is in the process of revising it.
CUESTAENER Again this is BCEOM and CADEM, and its main aim was to strengthen the use of the U3Es, which are the regional offices of CONAE. This project has four components: i Information systems and databases. A database for the U3Es was defined and set up. It is meant to contain data from end-users, including the equipment it has, results from audits and some energy saving follow-ups (ie what implementation has been done). It appears the database is more or less up and running, though it is questionable whether there is any real data in it.
2 Training for U3E personnel. A course was defined, covering energy efficiency and audits, with the aim of making the U3E personnel understand what they are promoting. Each U3E has of the order of three personnel.
Seven or eight subjects were covered during the course, mainly using Mexican experts from consulting companies created by CONAE's work. The course lasted two weeks and covered how to do both first and second level audits, environment links, introduction into technologies and water savings. Two EU experts also gave one-week courses each on how to evaluate an energy efficiency project from a financial and feasibility point of view, and on project management.
3 Energy audits Detailed energy audits were meant to be undertaken in the agro industry, the steel industry, cement and ceramics, and in the chemicals industry. Audits were 80% paid for by industry and 20% from the EU. Fourteen audits were done, though apparently only half are any good. The aim of the audits was to both train Mexican consultants and get some real information about the sectors.
2 4 Sectorialstudies In the four sectorsmentioned above, macro-economic studies were performedand statistics were reviewed. This gave a profile of energy consumptionand the sectors' output. It gave a recommendationfor a strategyto reduce specificenergy consumption from, (a) no-cost measures,(b) smallinvestment measures (less than a two-yearpayback), and (c) technologychanges, both process and cogeneration.
ApparentlyCONAE are now taking this sectoralstudy methodology further, using Mexicans alone. It is unclearwhich sectorsthey are involvedin, but it could be textiles, paper and glass.
3 ANNEXES Annex I
RESUMENEJECUTIVO DEL REPORTE
M6xico:Asistencia Tecnica para la Administraci6nde la Eficiencia Energeticaa la Comisi6nNacional para el Ahorrode Energia(CONAE).
TBE WORLDBANK Energy SectorManagement Assistance Program
Realizadopor la Unidadde Planeaci6nEstrat6gica de la CONAE
Febrero 1996 CONTENIDO
1. PRESENTACI6N 3
2. OBJETIVOSDE LAMSION 3
3. CONCLUSIONESSOBRE LA PROBLEMATICAACTUAL 4
4. RECOMNIDACIONES 5 4.1 Sobre el contextoinstitucional 5 4.2 Alternativasde estructuray ubicaci6nen el GobiernoFederal 5 4.3 Sobrela funcionde la CONAEen el desarrollode politicas energ6ticas. 7 4.4 Respecto de la coordinaci6ncon otras entidades 7 4.5 Acerca del fortalecimientointerno 8 4.5.1 En las areas tecnicas 8 4.5.2 En las Unidadesde Enlacede EficienciaEnergetica (U3E) 9 4.5.3 En la Unidadde Planeaci6n 10
2 1. Presentaci6n
Del 25 de septiembreal 6 de octubre de 1995, el "Programa de Asistencia para la Administraci6ndel Sector Energetico"(Energy Sector ManagementAssistence Program- ESMAP) del Banco Mundialcondujo una Mision de AsistenciaTecnica para la Comisi6n Nacionalpara el Ahorro de Energia (CONAE).En esta misi6nparticiparon, por parte del Banco Mundial, el Sr. Emesto Terrado (Principal Energy Planner), el Dr. Andrew Gilchrist (Manager, UK Energy Technology Support Unit), el Sr. John Amstrong (Director, Hagler Bally) y el Dr. GeorgeCourville (Oak Ridge National Laboratory).
Como producto de la mision se prepar6 un documento del cual este es un resumen ejecutivo.
2. Objetivos de la Misi6n
Los objetivosfundamentales de la misi6ndel BancoMundial fueron:
A- Evaluaci6n de la situaci6n actual de la CONAE y de sus principalesfortalezas y debilidades.
B. Asistenciaen los esfuerzosde la CONAEen la preparaci6nde un proyecto de Ley de EficienciaEnergetica.
C. Asesoria en la constituci6nde una unidad de planeaci6nde CONAE, considerando una tematica relacionada con las funciones, responsabilidades,posici6n en la organizaci6n,personal y relaci6n con otras unidadesde la CONAE de esta unidad de planeaci6n.
D. Asistenciaen la definici6ndel futuro organizativode la Comisi6n.
E. Asesoria en la elaboraci6nde una politica de planeacion a corto, mediano y largo plazo incluyendola preparaci6nde una metodologiaque permita definir objetivosde eficienciay monitoreo.
Para realizar la evaluaci6ny liegar a las conclusionesque se refieren mas adelante, los expertos del Banco Mundialparticiparon en reunionescon las diversas areas y directivos de la CONAE,se entrevistaroncon funcionariosde alto nivel de la Secretariade Energia, tuvieron comunicaci6ncon representantes de empresas de consultoria y trabajaron conjuntamentecon funcionariosy asesoresde la CONAE con relaci6n al proyecto de Ley de EficienciaEnergetica y respecto a las actividadesde planeaci6n.
3 3. Conclusionessobre la problemitica actual
A. No existe seguridadpara la determinaci6nclara y precisa del monto del presupuesto disponiblepara soportar las accionesde la CONAE.
B. La CONAEtiene una base legaldebil que conilevaa un margen limitadode autoridad.
C. Hasta el momento existe en la CONAE una limitada capacidad de planeaci6n y evaluaci6nde sus actividades,lo que se reflejade variasmaneras:
O Los programas de la CONAE no estan identificadoscomo resultado de un analisis comprensivode los costos y beneficios de un conjunto amplio de alternativas.
0 Los programas anuales son seleccionadossobre la base de las necesidades inmediatas.
0 Los impactosespecificos de los programasno son evaluadosrigurosamente.
0 Los objetivosde eficienciaenerg6tica a largo plazo no son claros.
[1 Los planes anuales se basan mas en las actividades operacionales que en objetivosde eficiencia.
0 Se realizapoco trabajo de monitoreode los impactos.
D. Existe poca coordinaci6n con las diversas agencias encargadas de la eficiencia energ6ticaen Mexico.
4. Recomendaciones 4.1 Sobre el contexto institucional
Las actividadesque debenreafizarse para fortalecera la CONAEson:
A. Desarrollode politicasnacionales de eficienciaenergetica.
B. Desarrollo de mercados de eficiencia energ6tica, incluyendo proyectos demostrativos,incentivos, informaci6n y educaci6ny el desarrollode una industria de serviciode conservaci6nenergetica.
4 C. Planeaci6nnacional, incluyendo la estimaciondel potencialde eficienciaenerg6tica para el pals para ser incluidoen la planeaci6ndel sector energeticonacional.
D. Regulaci6nsobre la eficienciaenergetica.
E. Financiamientode la eficienciaenergetica.
4.2 Alternativasde estructuray ubicaci6nen el GobiernoFederal
Dada la complejidadpara determinar el mejor futuro institucionalde la CONAE, se presentanlas siguientesopciones:
A. Reforzarla situaci6nactual.
Esto no requeririanueva legislaciony se cumpliriana traves de las siguientesmedidas institucionales:
o Fortalecimientode las finciones de planeaci6ncon la adici6nde nuevo personaly recursos necesariospara producirestimaciones creibles del potencialde eficiencia energ6ticadel pais.
o Robustecimnientode la programaci6ny el monitoreo de las actividades de la CONAE.
0 Evaluaci6n del papel institucionalde la CONAE dentro de la Secretaria de Energia.
D Disposici6nde un presupuestomayor.
Las ventajasde esta opcionson su factibilidadpolitica y su rapidezpara Ilevarsea cabo.
B. Creaci6nde un 6rganodesconcentrado.
Esto requeririaun acuerdodel EjecutivoFederal, con el objetivodel establecitnientode un 6rgano politica y operacionalmenteautonomo, cuyo director podria ser nombrado directamentepor el EjecutivoFederal. Esta altemativaimplicaria que:
O El presupuestofuera otorgado directamentea dicho 6rgano a traves de su liga con la Secretariade Energia.
0 Las autoridades del 6rgano y sus funciones quedaran definidas por disposici6n reglamentariao por acuerdoexpreso del EjecutivoFederal.
5 Las ventajas de esta opci6n son una mayor autonomia e independenciapara la CONAE.
C. Establecimientode un organismocompletamente aut6nomo.
Esto requeririade un acuerdodel EjecutivoFederal con el objetivodel establecimientode un organismopolitica y operacionalmenteaut6nomo, cuyo director podria ser nombrado directamentepor el EjecutivoFederal. Esta alternativaimplicaria que:
o El presupuesto provenga directamentedel gobiemo, pero la CONAE tendria la posibilidadde generar sus propios recursos.
0 La estructuradel organismoy sus funcionesquedarian establecidaspor ley.
Las ventajas de esta opcion son, sobre todo, de tipo presupuestal.Sin embargo,el riesgo de que la CONAEcobre por sus serviciospuede poner a la Comisi6nen competenciacon serviciosprivados, limitando tanto el desarrollo de mercado de consultoriacomo el flujo de informaci6nproveniente de las propiosusuarios finales para el ejerciciode planeaci6n.
Las alternativaspresupuestales para la CONAEprovienen de la definici6nde su estructura institucional. Adicionalmentey de manera complementariaa todas las opciones, se presentala posibilidadde la creaci6nde un Fondo para la Eficiencia Energetica, como ei desarrolladoen otros paises,y que brindariala posibilidadde financiarla introducci6n de nuevastecnologias, apoyar a la investigaci6ny desarrollopara el area y para estimular ei mercadode eficienciaenergetica.
4.3 Sobre la funci6n de la CONAE en el desarrollo de politicas energeticas.
La CONAE debe contar con la responsabilidadde preparar estimacionesdel potencial de ahorro de energiapara ser incorporadasen el programa del sector energetico.Esta es la uinicaforma en que Mexicotendra la capacidadde determinarla funci6n de la eficienciay los recursos renovables en el cumplimientode las necesidadesenergeticas nacionales, incluyendoel costo relativo de dichos recursos, asi como los beneficiosecon6micos y ambientalesde utilizar dichosrecursos.
4.4 Respecto de la coordinaci6n con otras entidades
Fundamentalmenteentre el Fideicomisode Apoyo al Programa de Ahorro de Energia en el Sector Electrico (FIDE) y la CONAE,debe promoversela coordinaci6nen auditorias energeticas y en el desarrollo de normas de eficiencia energetica, programas de infornaci6n,capacitaci6n y obtenci6nde informaci6n.
6 4.5 Acerca del fortalecimiento interno
4.5.1 En las Areast&cnicas
0 Los encargadosde las direccionesde la CONAEdeben ser expertosen los sectores de uso finalde la energiay debentener conocimientode:
V Situaci6ngeneral del sector, incluyendolos problemasa corto y mediano plazo. V Las tecnologiasactuales utilizadaspor el sector, asi como los usos de las mismas. V Las tecnologiasy tecnicasnuevas que puedenser introducidas i Las barreras del mercadopara el mejoramientode la eficienciaenergetica. V Los costos de los usuarios finales para implantar nuevas tecnologias y tecnicas. i Los canalesde influenciapara que los usuariosfinales, tales como eventos, revistas,asociaciones comerciales, etc.
0 En las direccionesse requierede especialistascuyas funciones deben ser:
V La generaci6nde informaci6ny datos para la planeaci6na corto y mediano plazo de la CONAE.Esto incluye el suministrode informaci6nal actual modelo energetico de la CONAE, con el fin de tener una mayor desagregaci6n,hasta poder llegara nivelde tecnologiaspor sector. V Determinaci6nde las barreraspara la eficienciaenergetica. i Elaboraci6nde nuevosprogramas para el sector. i Asegurarlas actividadesde corto plazo.
7 4.5.2 En las Unidadesde Enlace de EficienciaEnerg6tica (U3E)
Estas unidadesson el contacto directo con los usuariosfinales. Estas unidades permitenla retroalimentaci6nperi6dica entre la CONAE y los usuarios finales de los estados de la Repiiblica.
Sus objetivosdeben ser: o Detectar y establecer la situaci6n general de la eficiencia energetica en su area geogrifica. O Proveer la informaci6ndel uso de la energiade las industriaslocalizadas dentro de su Areageogrifica. o Conover la receptividadde los usuarios finales sobre la eficienciaenergetica, en su irea geografica. o Reconocerlos problemasy barreras para implantarprogramas en su irea.
8 4.5.3 En la Unidad de Planeaci6n
Es imprescindibleel fortalecimientode la unidad de planeaci6n.Sus principalesobjetivos debenser: o Conocer las similitudesy diferenciasde las diversas actividades de la CONAE, conjuntamentecon los exitosy problemas. 0 Desarrollaruna medidade la raz6n del beneficicde las diversasactividades sectoriales. O Desarrollar escenariosde largo plazo, incluyendola imnportanciade los sectores y tecnologias. o Conocer sobre otros programas de eficiencia en desarrollo en Mexico y en el extranjero. 0 Coordinarla informaciongenerada por las U3E y los sectores. o Coordinar y desarrollarde objetivosa corto plazo para el desarrollo de programnas basadosen efectividadde costos y desarrollodel mercado.
9 Annex II
MexicanMission to SoutheastAsia for Exchangeof Experiencesin EnergyEfficiency
by Odon de Buen, Dr. RaulMonteforte, JoseAntonio Urtiagaand Francisco Ornelas
Summary Translation of Trip Report
The first part of the trip report describeskey elementsof the economicand energydevelopmenrt of the three countries visited: Korea, Thailand and Philippines.Accelerated growth, rapid industrialization and intensive urbanization as well as dependenceon imported energy led to energy policies based on diversificationof energy sources and energy conservation.Emphasized is the problematicgrowth of the transport sector whichmight cancel out advancesin energyefficiency in other sectors.
Te secondpart detailsthe thematicareas of major relevancefor the Mexican Delegation.The first area is the legal frameworkfor energyconservation. In Korea and Thailandenergy conservationlaws exist since 1979 and 1992, respectively.The Koreanlaw createdKorea Energy ManagementCorporation (KEMCO) as the national agency in charge of implementingpolicies and programs. KEMCO also administersthe Fund for the Rationalizationof Energy Use (FERU). The Thai law institutedthe Program for Energy Conservation(ENCON) which comprises the followinginitiatives: obligatory energy savings in designated insallations, creation of the Fund for Energy Conservationwith a small surchargeon petroleumproduct sales as its source,fiscal and financial incentivesfor projects in energy efficiencyand renewableenergy, developmentof energyefficiency standards, etc.
The secondarea is theinsitutionalarrangment for energyconservation. In Korea,the institutionin charge is KEMCO(see above),while severalinstitutions share responsibilityin Thailand:The Departnent of Energy Developmentand Promotion(DEDP) in the Ministryof Science,Technology and Environment;the Energy Conservation Center of Thailand (ECCT) which was founded jointly by the National Energy Administrationand the Federationof Thai Industry;the ElectricGeneration Authority of Thailand(EGAT) whichis developingDSM programs. Also in the Philippines,a variety of authoritiesis in charge of energy conservation:the Energy Developmentand Utilization Foundation (EDUFI); the Philippine Energy Conservation Center (PECCI); the Energy AdministrationAssociation of the Philippines (ENMAP); Manila ElectricCompany (MERALCO).
The third area covers programs and financing:In Korea, KEMCO administersprograms for industrial installationsof the biggest energy consumers,for commercialinstallations, for cogenerationand district heatingand for research and development.In Thailand,the main initiativesare a joint program of EGAT and five manufacturersfor the substitutionof fluorescentbulbs; a progran for the certificationof electrical appliances;and the fund for energyefficiency. In the Philippines,"Power Patrol" is a joint committeeof public and private sector organizationswhich promotes energy efficiency and conducts information campaigns.
Part three summarizesareas of specialinterest to the Mexicandelegation: * The Fund for EnergyEfficiency in Thailandwhich currently counts with US$300million; * EGAT's DSMprogram; * The energyefficiency seal for electricappliances in Thailandwhich is alreadyin place for refrigerators and is beingdeveloped for air conditioners; * The certificationof electric appliances in the Philippines:Since 1991, a laboratory for testing of petroleumproducts and electrodomesticappliances exists; * The reductionof transmissionand distributionlosses in the Koreanpower sector from almost 30% in 1961 to barely 6% in 1994. This comparesto currently14% in Mexico.
In the final conclusionsand recommendations,the report emphasizesthat Korea and Thailand have achieved major improvementsin energy conservationwhich surpass the level achieved in Mexico, especiallywith respect to the legal framework,financing and fundingmechanisms, and extnt and structure of programs.In the three countriesvisited improvements in energy efficiencywere used to further energy policygoals as well as environmental,technology and economicgoals.
The key successfactors are summarizedas follows: * the establishmentof funds and financingmechanisms which provideincentives to proceedwith enery efficiencyinvestments, and of fiscal policieswith penalizeinefficiency and rewardenergy savings; * the evolution of national and regional norms and standards for energy efficiency, including the introductionof certificationand of installationsand mechanismsfor testingand certification; * the leadershipof the governmentin the promotionof energyefficiency activities; * the promotionof marketmechanisms to adopt and disseminateenergy efficiency; * the establishmentof rationalpricing policiesfor energy,reflecting the long-runmarginal costs, and, if required,providing transparent subsidies for consumersin the lowestincome groups. MISI6N MEXICANA AL SUDESTE ASIATICO PARA INTERCAMBIO Y ESTUDIO DE EXPERIENCIAS EN AHORRO Y USO EFICIENTE DE LA ENERGIA (16 a 30 de septiembre de 1995)
REPORTE PARA EL BANCO MUNDIAL
M. en C. Od6n de Buen R., Comisi6n Nacional para el Ahorro de Energia Dr. Raul Monteforte S., Secretaria de Energia Lic. Jose Antonio Urteaga D., Fideicorniso de Apoyo al Programa de AholTo de Energia del Sector Electrico Ing. Francisco J. Ornelas, Luz y Fuerza del Centro INTRODUCCION
Bajo los auspicios del Banco Mundial, bajo la coordinaci6n de la Secretaria de Energia y a traves de la Comisi6n Nacional para el Ahorro de Energia (CONAE), durante las dos tiltimas semanas del mes de septiembre de 1995, una misi6n tecnica mexicana - que incluy6 a representantes del Fideicomiso de Apoyo al Programa de Ahorro de Energia del Sector El&ctricoy de Luz y Fuerza del Centro - realiz6 una gira por tres paises del sudeste de Asia (Corea, Tailandia y Filipinas) para conocer e intercambiar experiencias con expertos de esos paises y de agencias internacionales en temas relacionados con el ahorro y uso eficiente de energia.
En esta gira se realiz6 un conjunto de visitas a instalaciones, se llevaron a cabo reuniones con funcionarios y expertos locales y de agencias internacionales involucradas en el tema y se particip6 en una reuni6n internacional sobre promoci6n de la manufactura nacional de equipos eficientes en energia.
El presente informe integra y resume la informaci6n, las observaciones y las conclusiones mas relevantes relacionadas con esta misi6n.
2 1. ENTORNO ECONOMICO Y ENERGETICO DE COREA, TAILANDIA Y FILIPINAS'
1.1. ECONOMIA
La regi6n visitada por la Misi6n Mexicana es eje de una profunda transformaci6n que impactara la historia econ6mica mundial. Conforme los paises asiaticos de la Cuenca del Pacifico continuian y afianzan su explosivo crecimiento por tercera d&cada consecutiva, el centro del comercio y de la industria mundiales tiende a desplazarse cada vez mas del Atlfntico a esta area. En su concepto mfs amplio (es decir, incluyendo a China), esta regi6n esta compuesta por mas de 1,600 millones de personas y tiene una economia global con un valor de cuatro billones de d6lares.
La potencia econ6mica de la regi6n se manifiesta de muchas maneras. Jap6n y Corea producen una tercera parte del total de los vehiculos automotores en el planeta. En los pr6ximos anios, se estima que estos dos paises produciran mfs de la mitad de los autom6viles en el mundo y que, ademas, los paises del sureste asiatico se integrarfn crecientemente a esa producci6n a traves de cientos de fabricas y plantas ensambladoras. Mas aun, un cuarto de la producci6n mundial de acero se realiza en el noreste de Asia; la producci6n textil, asi como de una amplia gama de manufacturas, tiende a concentrarse tambien en los paises del Pacifico asiitico; la producci6n japonesa de maquinas herramienta domina el mercado mundial desde hace una decada; la industria naviera se mud6 al este de Asia hace varios anios; y, por uiltimo, ahora sobreviene un enorme crecimiento en las llamadas "industrias del siglo XXI", como computadoras, aparatos electr6nicos, microprocesadores y videojuegos - ademas de los avances en tecnologia ambiental y en muchas otras tecnologias de frontera en Jap6n -, los cuales serfn desarrolladas en la region.
De manera particular, la visita de la Misi6n Mexicana se enfoc6 a tres casos que manifiestan de distintas maneras el fen6meno asiatico: Corea, Tailandia y Filipinas. En primer lugar, Corea constituye el segundo centro de producci6n industrial del area, el tercero en comercio y es el que dedica la proporci6n mas alta de su PIB a la inversi6n
1Todos los datos econ6micos fueron obtenidos de The World Bank, World Development Report 1993. Otras referencias complementarias son: J. Abeggler, Sea Change.Pacific Asia as the New World Industrial Center,The Free Press, 1994; Energy Statistics Yearbook1993, ONU; y World Energy Outlook 1995, IEA.
3 (40%). Por su parte, Tailandia lha sido uno de los principales focos de inversi6n extranjera directa en el 4rea (recibiendo alrededor de US$ 20 mil millones entre 1986 y 1992) y es una de las economias exportadoras mAs din.micas del grupo de la Asociaci6n de Paises del Sureste Asiatico (ASEAN), con un crecimiento en exportaciones de 20% anual en terminos reales durante los udltimos cuatro afios. Finalmente, Filipinas continua siendo uno de los paises mas debiles dentro del Asia Pacifico, con crecimiento demografico elevado, politicamente inestable, con niveles altos de pobreza y diferencias sociales; cuenta, sin embargo, con abundante mano de obra barata y entrenada, ubicaci6n estrategica y politicas de promoci6n a la inversi6n privada que atraen a los paises ricos de la zona (Jap6n, Taiwan, Singapur y Corea) con inversiones en manufacturas, agroindustrias, terminales maritimas y turismo, lo que convierte a Filipinas en el tercer receptor de ayuda financiera en el firea.
INDICADORES ECONOMICOS DE LOS PAiSES DE ASIA-PACIFICO 1993 POBLACIO PIB PIB per capita N (mil millones de (US $) (mi_ones) US$) jap6n 124 3362 26930 Hong Kong 6 68 13430 Singapur 3 40 14210 Taiwan 20 179 8788 Corea 43 283 6330 Malasia 18 47 2520 Tailandia 57 93 1570 Filipinas 63 45 730 Indonesia 181 116 610 China 1150 370 370 TOTAL 1665 4603 2765 World DevelopmentReport 1993
1.2. ENERGiA
La dinamica energetica de los tres paises visitados refleja su acelerado crecimiento econ6mico, su rapida industrializaci6n y su intensa urbanizaci6n en las (iltimas dos decadas. Los tres paises son importadores netos de energia, lo que ha representado una
4 carga significativa y permanente para sus cuentas externas, especialmente en el periodo de 1973 a 1981. La combinaci6n de estas fuerzas di6 forma a politicas energeticas basadas en la diversificaci6n de fuentes y en el ahorro de energia. Estas politicas han logrado un avance importante en Corea y en Tailandia, y en algunos aspectos tambien en Filipinas. Sin embargo, una observaci6n importante es que en los tres paises el transporte se presenta sumamente problematico y podria erosionar rapidamente los avances en eficiencia energetica en los demas sectores.
1.2.1. COREA
En Corea, el consumo de energia se ha incrementado a un ritmo de 10% anual desde principios de los ochenta, lo que significa un periodo de duplicaci6n de siete a-nos y medio, mientras que el consumo de electricidad lo ha hecho a raz6n de 14.7% anual. Las fuentes de energia primaria son: petr6leo con 62%, carb6n con 20%, nuclear con 11.5%, gas licuado con 4.5%, hidraulica con 3% y otros 0.3%. El perfil del consumo final es: industria 53.5%, edificaciones comerciales y residenciales 24%, transporte 20.3% y servicios 2.2%. Este pais es ahora mas dependiente de las importaciones de energia (90%), que en la mitad de la decada de los setentas (83%), pero result6 particularmente dafiado durante las crisis petroleras de esa d&cada.Corea logr6 revertir los efectos mAs negativos adoptando una estrategia de seguridad energetica basada en la sustituci6n de fuentes y el ahorro de energia: de 1978 a 1994 construy6 9 unidades nucleares para un total de 7 616 MW (26.5% de la capacidad total instalada); construy6 6 820 MW de plantas carboelectricas (23.7% de la capacidad total instalada); y sustituy6 plantas de petr6leo por plantas de ciclo combinado a base de gas licuado, las que representan el 17.3% (4 961 MW) del parque de generaci6n.
Por otra parte, se promovi6 intensamente el ahorro y uso eficiente de la energia en todos los sectores, incluyendo la difusi6n de la cogeneraci6n industrial y de calor distrital en los llamados "Mass Energy Centers". Cabe destacar el acelerado desarrollo tecnol6gico en el aprovechamiento de residuos s6lidos, principalmente para los esquemas de cogeneraci6n urbana, el impulso a la fabricaci6n e instalaci6n de sistemas solares de calentamiento de agua y el desarrollo de la tecnologia fotovoltaica (Corea fabricarA en breve fotoceldas). En el sector de transporte, pese a diversos programas (uso de unidades compartidas, mejoras en eficiencia, entrenamiento y, desde luego, ampliaci6n sustancial del metro), los problemas van en aumento, combinados con el acelerado crecimiento del parque vehicular privado (4 000 000 de unidades en 1993). Finalmente, cabe destacar los siguientes elementos de la politica energefica en materia de ahorro de energia:
* Entre 1974 y 1979 se promulgaron leyes para el uso racional de la energia y el mejoramiento tecnico en equipos termicos: estA vigente vigente la Ley para la Racionalizaci6n de la Utilizaci6n de la Energia; y, bajo esta misma ley, se cre6 el Korea Energy Management Corporation (KEMCO).
* En 1983 se inici6 el programa de desarrollo de cogeneraci6n distrital, que se convertiria en 1993 en el programa de "Mass Energy Supply", al que se incorporaran varias unidades de incineraci6n de residuos s61idos que estAn en en construcci6n, con mas de 2 000 MW. Los "centros de energia masiva" estan produciendo vapor de proceso para la industria, calor residencial y energia electrica y se les considera como una alternativa de importancia fundamental para ahorrar energia (gas licuado principalmente), proveer diversos servicios energ6ticos con una s6la fuente y reducir emisiones (las plantas incorporan un control triple: desulfurador, precipitador electrostAticoy desnitricador o lavador de gases)
* En 1987 se promulga la Ley para el Fomento de las Nuevas Fuentes Renovables de Energia y se establece el Centro de Desarrollo correspondiente. En 1992 este centro se convierte en el Centro de Investigaci6n y Gesti6n de Energia y Recursos (RACER), en el que se concentra el desarrollo de las tecnologias basadas en fuentes nuevas y renovables y las de eficiencia energetica.
1.2.2. TAILANDIA
En 1993, la producci6n de energia primaria en Tailandia se ubic6 en 34,132 miles de toneladas de petr6leo crudo equivalente (MTPCE), la cual se complement6 con importaciones de 25,893 MTPCE. La oferta intema se integr6 por un 45% de petr6leo crudo y 13.9% de productos petroliferos (total 58.9%),9.2% de carb6n, 1.4% hidrdulica y 30% de biomasa. La diferencia corresponde a importaciones de electricidad, variaci6n de inventarios y exportaciones.
El consumo de energia de Tailandia ha crecido a un ritmo de 9.4% anual y el de electricidad a 13% anual entre 1984 y 1993. En este afio, el primero alcanz6 los 39,328 MTPCE, con un incremento del 12% respecto al afno anterior. La capacidad de
6 generaci6n descansa en un 44% a base de gas, 28% en combust6leo, 20% en carb6n y 5% de hidroelectricas.
El consumo final de energia de Tailandia en 1993 se integr6 de la siguiente forma:
SECrOR Porcentaje Transporte 37.1% Manufacturero y extractivo 29.8% Residencial y comercial 28.5% Agricultura 4.1% Construccion 0.5%
El peso especifico del transporte en el consumo energftico refleja el severo problema que este representa en Tailandia, especialmente en la capital. Se considera que el congestionamiento en Bangkok -en cuya zona metropolitana se concentra el 40% de la flota vehicular del pais es el peor en la regi6n Asia Pacifico. Algunos cAlculos indican que cada autom6vil permanece atrapado 44 dias al afnoen los congestionamientos de la capital, que la velocidad promedio en horas pico es menor a 10 Kmh y que el consumo adicional de combustible debido a esta causa implica una erogaci6n de 1.4 millones de d6lares diarios. Se estima que, por esta causa, las perdidas en costos de. operaci6n, consumo de gasolina, emisiones, tiempo de trabajo, accidentes, etc., ascienden a un tercio del producto bruto potencial en Bangkok.
En este marco, la seguridad energetica y el ahorro de energia han sido considerados prioridad maxima. Diversos programas y disposiciones legales han sido formulados y existe una Ley para la Promoci6n de la Conservaci6n de la Energia. Se considera que es una ley energica y que posee un enfoque integral, incluyendo medidas referentes a precios, normas y estAndares, reestructuraci6n y fortalecimiento institucional, mecanismos financieros basados en impuesto sobre ventas de energia y subsidios y recompensas al ahorro, auditorias energ6ticas, capacitaci6n y penas, entre otros temas. Por otra parte, EGAT (la compaMfa estatal de generaci6n electrica), con apoyo financiero del Banco Mundial, ha ampliado su plan maestro de administracion de la demanda (Demand Side Management), con el objetivo de reducir la demanda pico en 311 MW y ahorrar 1 826 Gwh. Se considera que este es un programa ejemplar por su s6lida estructura, excelente manejo y eficacia.
7 1.2.3. FILIPINAS
Filipinas presenta un balance de energia caracterizado por el predominio del petr6leo y sus derivados con alrededor del 60% del total, un 31% de biomasa (lenia y residuos agricolas), 4% de hidraulica, 3% de carb6n, y 2% de geotermia. El crecimiento del consumo ha sido inferior al promedio en esta regi6n del mundo, debido a recesiones y a otros problemas, aunque ha comenzado a crecer en los filtimos dos anios.
En los anos ochentas, Filipiias estuvo a punto de construir su primera central nuclear. Sin embargo, este y muchos otros proyectos de infraestructura fueron cancelados debido a crisis econ6micas y politicas. Asi, el pais sufri6 un agudo deficit de generaci6n que caus6 racionamientos y apagones de seis y hasta doce horas al dia. En 1994 la capacidad instalada fue de 9 000 MW y el deficit de apenas 4%, lo que se considera un gran progreso comparado con la situaci6n anterior. Se estima que la capacidad crecera hasta liegar a 22 000 MW en el a*to2004. Mas ain, Filipinas tiene un recurso geot6rmico abundante (888 MW instalados actualmente) y recientemente ha descubierto reservas de gas calificadas como "significativas".
Este pais se caracteriza por un desarrollo creciente de la generaci6n privada ndependiente. Se anticipa la privatizaci6n de la compafifa de electricidad (NAPACOR), con lo que se profundizarAi la reestructuraci6n del sector el6ctrico. Se estima que los productores privados independientes tendrdn mfs de 10 000 MW de capacidad instalada hacia el inicio del siglo XXI.
Filipinas continua promoviendo activamente la eficiencia energetica, los programas de DSM y el ahorro a traves de diversos mecanismos y programas, con lo que se espera lograr una reducci6n en la demanda anual de energia de 8 a 16% entre 1993 y el afio 2000. Destaca el programa de estAndares y etiquetaci6n de equipos de aire acondicionado, cuyo ahorro se estima en 80 MW para el afio 2000.
8 2. AREAS TEMATICAS DE MAYOR RELEVANCIAEN LOS PAiSES VISITADOS
2.1. MARCO LEGAL DE LAS ACrIVIDADES DE AHORRO DE ENERGIA
En los tres paises visitados estAn vigentes ordenamientos legales relativos al ahorro y uso eficiente de la energia.
2.1.1. CCREA
En Corea, la Ley para la Racionaiizaci6n de la Utilizaci6n de la Energia fue promulgada en 1979 y constituye la base legal para la observancia de la politica gubernamental en esta materia. Se considera que es un instrumento poderoso, efectivo y de amplio alcance.
La Ley obliga al gobierno coreano a cumplir y hacer cumplir medidas integrales de politica relativas al ahorro y uso eficiente de la energia en todos los sectores de la economia y establece los mecanismos financieros y los incentivos fiscales para inducir las inversiones en ahorro energetico por parte del sector privado. Por otra parte, la Ley dio origen al Korea Energy Management Corporation (KEMCO), como el organismo ejecutante de dicha ley y encargado de implementar las politicas y los programas de ahorro y uso eficiente de la energia. KEMCO estA,ademis, a cargo de la administraci6n y el manejo tecnico del Fondo para la Racionalizaci6n de la Utilizaci6n de la Energia, asi como del sistema de deducciones y excepciones fiscales y de un fondo de reserva especial para investigaci6n y proyectos demostrativos, creados por la misma Ley. Las fuentes de todos estos fondos no estan referidas especffica y directamente a un elemento unico (por ejemplo, a los impuestos existentes sobre el consumo de petr6leo), sino que derivan del manejo integral del presupuesto gubernamental y, en medida poco importante, de ingresos propios de KEMCO y de las multas por incumplimiento de la ley.
2.1.2. TAILANDIA
En Tailandia, la Ley para la Conservaci6n de la Energia de 1992 fortalece y amplia los ordenamientos que le precedieron. En ella se define al Consejo Nacional de Politica Energetica como el responsable de formular la politica sobre la materia y de vigilar la
9 administraci6n y aplicaci6n de los recursos destinados a los programas de ahorro. La Ley instituye al Programa para la Conservaci6n de la Energia (ENCON), como su componente operativo, el cual comprende las siguientes iniciativas:
* Ahorro de energia obligatorio en instalaciones designadas (fabricas y edificios con un consumo energetico superior a un nivel establecido);
* Creaci6n del Fondo para la Conservaci6n de la Energia, como el instrumento financiero del Programa, el cual resulta de un peque-no impuesto especial sobre las ventas internas de derivados del petr6leo;
* Establecimiento de incentivos financieros y fiscales para proyectos de eficiencia energetica y de energia renovable, investigaci6n y desarrollo, promocion y difusi6n de tecnologias eficientes;
* Desarrollo de estandares de eficiencia energetica;
* Desarrollo institucional, relaciones puiblicasy programas de entrenamiento.
2.1.3. FILIPINAS
Finalmente, en Filipinas el gobierno ha promulgado diversas leyes y disposiciones que atafien al desarrollo sustentable de la energia. Las principales estan contenidas en el Plan Nacional de Energia vigente e incluyen: campaiias de informaci6n masiva sobre eficiencia energetica, promoci6n de los servicios de gesti6n eficiente ace la energia, expansi6n de los programas de normas y etiquetado, introduccion de normas de eficiencia energetica en edificios, promoci6n y apoyo a la transferencia tecnol6gica, programas de reducci6n de perdidas en sistemas electricos y de mejoramiento de procesos termicos, desarrollo de la cogeneraci6n, fortalecimiento institucional e investigaci6n de mercados de productos y tecnologias de eficiencia energetica. Se preve que en breve sera promulgada una ley que privatizara a la compaflia estatal de electricidad (NAPACOR) y establecera diversas regulaciones para la reestructuraci6n del sector electrico en ese pais.
10 2.2. INSTITUCIONES INVOLUCRADAS EN ACrIVIDADES DE AHORRO Y USO EFICIENTE DE LA ENERGiA
2.2.1. COREA
Korea Energv Management Corporation (KEMCO)
El Korea Energy Management Corporation es una organizaci6n no gubernamental que fue creada en 1980 a partir de la Ley de Uso Racional de la Energia (Rational Energy Utlization Act). El mandato de KEMCO es el de instrumentar politicas gubernamentales relacionadas con el ahorro de energia.
Las principales funciones de KEMCO son:
* Promoci6n del uso racional de la energia;
* Promoci6n de proyectos de cogeneraci6n y de calefacci6n distrital;
* Administraci6n para el mejoramiento de equipos y sistemas de uso final;
* Inspecci6n de equipos usuarios de calor y materiales;
* Administraci6n de la investigaci6n y desarrollo relacionados con energia y recursos; y
* Recomendaciones de apoyo financiero para inversiones en el ahorro de energia.
2.2.2. TAILANDIA
El Departamento de Desarrollo y Promocion Ener&etica(DEDP por sus siglas en ingles)
El DEDP es parte del Ministerio de Ciencia, Tecnologia y Medio Ambiente y esta a cargo del seguimiento del cumplimiento de la Ley de Conservaci6n de Energia (Energy Conservation Act) de Tailandia, la cual incluye el manejo del Fondo para la Eficiencia Energ6tica.
11 El Cento de Conservaci6n de Energia de Tailandia (ECCT por sus siglas en ingles).
El ECCT es un centro que inici6 operaci6nes en 1987 bajo la supervisi6n conjunta de la Administracion Nacional de Energia (NEA por sus siglas en ingles) y de la Federaci6n Tailandesa de Industria. El programa inici6 con un presupuesto de 40 millones de Baths2 que les entreg6 el gobierno tailand6s. El ECCT ha recibido asistencia tecnica de varias agencias nacionales e internacionales para el desarrollo.
Los objetivos de EECT son:
* Actuar en sintonia con la politica nacional de conservaci6nLde energia;
. Diseminar, promover y proveer informaci6n tecnica y servicios de consultoria relacionados a la administraci6n de la energia y conservaci6n de energia a los sectores publico y privado;
* Crear una conciencia publica sobre la conservaci6n de la energia; y
* Coordinar a los organismos de los sectores puiblico y privado relacionados con las actividades de conservaci6n de energia.
La Autoridad de Generaci6n El6ctrica de Tailandia (EGAT por sus siglas en ingles).
Originada hace veintiseis afios a partir de la uni6n de tres empresas estatales, EGAT es la empresa generadora de electricidad de Tailandia y entrega la electricidad que genera a dos empresas distribuidoras de energia, una para la zona urbana de Bangkok y otra para el resto del pais.
A partir de diciembre de 1991, EGAT ha desarrollado actividades de Gesti6n de la Demanda Electrica (DSM) que han consistido en lo siguiente:
. Transformaci6n de la manufactura local de lamparas fluorescentes para la eliminar la fabricaci6n de las del tipo T12 y que solo se fabriquen las de tipo T8; y . Etiquetado de refrigeradores para indicar niveles de eficiencia energftica.
2 25 Bathspor D6oarAmericano (aproximadamente). 12 EGAT planea desarrollar un conjunto de programas que incluyen:
. Etiquetado de equipos de aire acondicionado del tipo "split";
. Iniciativa de "EdificiosVerdes", la cual consiste en la mejora de la eficiencia en el uso de energia en centros comerciales y primordialmente concentrada a la iluminaci6n y a la instalaci6n de sistemas de soporte para poder tener cargas interrumpibles;
. Reemplazo de lamparas incandescentes con lamparas compactas fluorescentes en zonas rurales;
. Reemplazo de balastros por equipos con bajas perdidas; y
* Proyecto piloto de almacenamiento termico en edificios.
23. FILIPINAS
En Filipinas el marco institucional para el ahorro de energia ha variado a lo largo de los filtimos veinte antosy actualmente la actividad se realiza en varias instituciones.
Energy Development and Utilization Foundation, Inc. (EDUFI)
EDUFI es una organizaci6n no lucrativa que fue registrada formalmente en mayo de 1991. Su principales prop6sitos son los de promover y sostener el bienestar econ6mico de Filipinas a traves de la diseminaci6n de informaci6n; la consulta, investigaci6n y desarrollo; y la demostraci6n de tecnologias apropiadas en el desarrollo, uso, administraci6n y conservaci6n de la energia. En la actualidad EDUFI participa activamente en el programa "Patrulla Energetica" (Energy Patrol) y en las consultas para el desarrollo del Plan de Energia de Filipinas; tambien participa en el programa EC-ASEAN en cogeneraci6n y asiste en la promoci6n de la cooperaci6n entre la Uni6n Europea y Filipinas.
The Philippine Energy Conservation Center, Inc. (PECCI)
PECCI es una organizaci6n no lucrativa que tiene el prop6sito de mejorar la rentabilidad y la competitividad de empresas comerciales e industriales a trav6s de mejorar la productividad energetica y la eficiencia mediante una aplicaci6n amplia de
13 las tecnologias de ahorro y administraci6n de la energia. PECCI es la organizaci6n coordinacora del Taller Regional en la Promoci6n de Inversiones en la Manufactura de Productos de Eficiencia Energ6tica (Regional Workshop on Investment Promotion in the Domestic Manufactrure of Energy Efficiency Products) en el cual particip6 la Misi6n Mexicana.
La Asociaci6n de Administraci6n de Enerzia de Filipinas (ENMAP por sus siglas en ingles)
ENMAP es una organizaci6n nacional, no lucrativa, de administradores de energia, ingenieros en energia y consultores. Desde 1979, ENMAP ha apoyado talleres, seminarios, asesorias y otras actividades diseniadas para meiorar la practica de administracion y conservaci6n de la energia en coordinaci6n con el gobierno, sector publico y grupos internacionales. ENMAP tiene una publicaci6n mensual gratuita - "The Energy Manager" a traves de la cual se difunde informaci6n sobre desarrolios en los temas relacionados a la administraci6n de la energia.
Manila Electric Company (MERALCO)
MERALCOes la mayor empresa electrica de distribuci6n en Filipinas y sirve al area de Luz6n. Actualmente tiene planes para desarrollar un amplio programa de actividades de DSM.
2.3.4. ORGANIZACIONES INTERNACIONALES
Comisi6n Socio-Econ6mica para Asia v el Pacffico(ESCAP por sus siglas en inmgls)
La Comisi6n Socio-Econ6mica para Asia y el Pacifico (ESCAP, por sus siglas en ingles) constituye el programa de cooperaci6n regional de la ONU para el desarrollo de esta zona del mundo. Este programa consiste, a su vez, en seis subprogramas:
* Cooperaci6n econ6mica regional; * Medio ambiente y desarrollo sustentable; * Alivio a la pobreza via crecimiento econ6mico y desarrollo social; 14 • Comunicaciones y transportes; * Estadisticas; * Naciones con menor desarrollo; y * Naciones sin acceso al mar y naciones-islas en desarrollo.
A traves de su divisi6n de Medio Ambiente y Recursos Naturales (ENRM), la ESCAP proporciona asistencia a sus miembros asociados de la regi6n, para que obtengan los mayores beneficios de sus recursos naturales, incluyendo los recursos energeticos, mediante la promoci6n de la investigaci6n interdisciplinaria y el apoyo a la cooperaci6n tecnica entre los paises en desarrollo, enfatizando el impacto ambiental del uso de dichos recursos.
Uno de los temas mas importantes dentro del subprograma de medio ambiente y desarrollo sustentable de la ESCAP, es el de Desarrollo y Administraci6n de la Energia. El equipo multidisciplinario de la Secci6n Recursos Energeticos, trabaja actualmente en las siguientes areas:
* Mejoramiento de las t&cnicasde administracion de la energia; por ejemplo, estudios sobre demanda sectorial, optimizaci6n de precios y administraci6n de la demanda; * Conservaci6n y eficiencia energetica; * Promoci6n de estilos de vida en base a la eficiencia energdtica; * Sustituci6n de combustibles f6siles; * Promoci6n y difusi6n de fuentes de energia nuevas y renovables; * Utilizaci6n 6ptima de la electricidad; e * Impactos ambientales (lluvia acida, contaminaci6n del aire en zonas urbanas, localizaci6n de grandes presas).
En la decada de los ochenta, la ESCAP fue la principal agencia ejecutiva dentro del programa regional mas importante en el campo de la energia, denominado Programa Regionalde DesarrolloEnergetico, financiado por el Programa de Desarrollo de la ONU, enfocado principalmente a: planeaci6n y administraci6n energftica; creaci6n de modelos energeticos; conservaci6n energftica en el campo de la electricidad, el carb6n y el gas; y, sobre nuevas y renovables fuentes de energia. Actualmente, ESCAP desarrolla dos nuevos programas de gran alcance y con vistas al siglo XXI el Programmefor Asian Cooperationon Energyand Environmenty el Asia EnergyEfficiency 21. 15 2.3. PROGRAMAS Y FINANCIAMIENTO
2.3.1. COREA
Programa para Instalaciones Industriales
Supervisi6n directa de los 164 usuarios con consumos anuales de 20,000 Toneladas Equivalentes Petr6leo. Esta actividad se realiza en cumplimiento de la Ley de Eficiencia Energetica de Corea y en funci6n del Plan de Consumo de Energia planteado por la empresa y que tiene una vigencia de cinco ainos. Para esta actividad se debe nombrar un administrador de energia por planta que se encargue de la administracion de los planes de consumo de energia.
Auditorias Energeticas. De manera directa y con su propio personal, KEMCO realiza auditorias energeticas generales en pequefias y medianas industrias y auditorias detaliadas en grandes empresas. Para este prop6sito, KEMCO cuenta con equipos de medici6n y vehiculos especialmente acondicionados.
Asistencia Tecnica. Esta la realiza KEMCO para la realizaci6n de los planes de consumo as! como para la aplicaci6n de los programas especificos.
Programaspara Instalaciones Comerciales
Supervisi6n de Grandes Edificios. Se brinda asesorfa a duefios de edificios con grandes consumos a traves del otorgamiento de guias para el diseiio de programas de ahorro; tambien se presta asistencia para el disefio y construcci6n de edificios.
Reducci6n de Tarifas a Edificios Eficientes. Con el fin de estimular el disefio y construcci6n de edificios eficientes en energia se reducen las tarifas a los usuarios cuyas instalaciones tengan caracteristicas que aseguren un uso 6ptimo de la energia.
Centros de Servicio. Se tienen instalados en Corea un conjunto de centros de atenci6n a usuarios para brindarles orientaci6n sobre como ahorrar energia en sus instalaciones.
16 Programa de Cogeneraci6n y Calentamiento por Distritos.
Este programa se fundamenta en la eficiencia que se tiene en el aprovechamiento integral de la energia calorifica de los combustibles, a traves de la generaci6n de electricidad y del uso del calor de desecho para calentar agua que es usada como tal y para calefacci6n. En la actualidad se tienen dos proyectos de este tipo en los cuales se produce calor para 150,000 hogares y se tiene una capacidad instalada de 52 MWe. Se tienen planes para que en el anio2001 se tengan 33 complejos industriales (26% del total nacional) y 1,800,000hogares (15%)integrados en este tipo de sistemas.
Investigaci6n y Desarrollo Tecnol6gico
KEMCO proporciona financiamiento para la realizaci6n de proyectos de investigaci6n y desarrollo tecnol6gico en 5 areas fundamentales: (1) generacion de energia el6ctrica y calor, (2) ahorro de energia en la industria, (3) aislamiento termico para edificios, (4) aire acondicionado e (5) investigaci6n en general.
2.3.2. TAILANDIA
Programa de sustituci6n de L5mparas Fluorescentes.
En septiembre de 1993 se firmaron convenios entre EGAT y los cinco fabricantes principales de lamparas fluorescentes en Tailandia para que estos filtimos dejaran de producir lamparas del tipo T12 y reemplazaran esta producci6n con lamparas de tipo T8. Como resultado de este convenio, a partir del principio de este a-no ya no se producen lamparas T12 en Tailandia. Se estima que con este programa se evite la instalaci6n de 104 MW de capacidad y la generaci6n de 473 GWh por anoo.
Prog ma de Etiquetado de Electrodomesticos (Ver secci6n mas adelante)
El Fondo para la Eficiencia Energetica (Ver secci6n mas adelante)
17 2.3.3.FILiPINAS
El Programa "Power Patrol"
Power Patrol es el nombre que se utiliza para reconocer al Comite para la Conservaci6n de la Electricidad y Administraci6n de la Demanda y que esta integrado por representantes de organizaciones publicas y privadas. Este comite tiene el mandato de: (1) asegurar una oferta de energfa que sea continua, adecuada y econ6mica y que permita independencia, y (2) promover y adoptar el ahorro y el uso eficiente de la energia. El programa incluye campafias masivas e innovadoras de informaci6n que incluyen a la televisi6n, radio y prensa escrita y que van dirigidos a (1) los hogares y villas, (2) los sectores comercial e industrial y (3) las escuelas y el sector institucional. Este programa se arranc6 precisamente con una presentaci6n de! Presidente de Filipinas en uno de los programas mas populares de la television local.
Power Patrol ha incluido varias actividades. Una consisti6 en dar incentivos a usuarios industriales para que operaran sus sistemas de respaldo por ocho horas diarias durante los anios en los que la capacidad de generaci6n fue insuficiente. Otro ha sido el realizar seminarios para propietaiios de grandes centros comerciales, operadores de hoteles, administradores de edificios, gerentes de energia y companias de servicios de energia. Un tercer programa consisti6 en la formulaci6n de una guia para el disenlo de edificios y sistemas asociados eficientes en el uso de la energia, el cual se convirti6 en el punto de partida para la norma respectiva que se hizo vigente al inicio de 1994 en todo el pais. Un cuarto programa ha consistido en visitas a industrias y comercios medianos y pequefios para darles orientaci6n en el uso eficiente de energia.
El programa ha sido financiado principalmente por el gobierno de Filipinas, con el sector privado participando con fondos administrados por EDT FL
18 3. TEMAS LDEINTERES ESPECIAL
3.1. EL FONDO PARA LA EFICIENCIA ENERGETICA DE TAILANDIA.
El Septimo Plan Nacional de Desarrollo Econ6mico y Social de Tailandia (1992-1996) estableci6 la meta de reducir la tasa de crecimiento de consumo de energia de un estimado de 13% a un 10%. Con este fin el gobierno tailandds ha establecido el programa ENCON (Energy Conservation Program) en el contexto del Acta de Promoci6n y Ahorro de Energia (Energy Conservation and Promotion Act) de 1992. Dentro de los componentes principales de esta Acta (ratificada y ampliada en 1995) se incluye la creaci6n de un "Fondo para la Eficiencia Energetica", el cual se crea a partir de un impuesto al consumo de combustibles cuyo origen es el petr6leo.
El Fondo fue iniciado con una contribuci6n proveniente del Fondo para la Estabilizaci6n del Precio de Petr6leo. En la actualidad el Fondo cuenta con poco mas de 300 millones de d6lares amnericanos, lo que, segun el propio gobierno de Tailandia, lo convierte en el mayor del mundo fuera del contexto de la OCED
En seguimien'to a lo establecido por el Acta de Promoci6n y Ahorro de Energia, se cre6 un Comite del Fondo, el cual es presidido por el Primer Ministro e incluye a todos Secretarios Permanentes de todos los ministerios relacionados a la energia, a representantes de la industria de Tailandia, del Instituto de Normas de Tailandia y de otros grupos e instituciones relacionadas al tema. La autoridad del Comit6 y sus principales actividades estan orientadas a proponer lineamientos para la entrega de fondos, ubicar porciones del Fondo para su uso como subsidio, proponer los gravamenes a los productos del petr6leo y definir las penas econ6micas a quienes no cumplan con lo establecido en el Acta. Cualquier regla que se proponga en el contexto del Comite requiere, sin embargo, de la aprobaci6n del Consejo de Politica Energetica (Energy Policy Council).
El Fondo es manejado por el Ministerio de Finanzas y consiste de capital y propiedades. Aparte del dinero recibido del impuesto a los productos del petr6leo, el Fondo recibe participaciones de los cargos hechos a quienes no cumplan con las condiciones del Acta, de subsidios del gobierno, de dinero recibido del sector privado o de dinero recibido de gobiernos extranjeros de manera directa o traves de organismos internacionales, y de los intereses que recibe el Fondo como dep6sito bancario. 19 El Fondo puede ser utilizado como:
(A) Capital de trabajo, donaciones o subsidios para invertir en u operar programas de ahorro de energia o para resolver problemas ambientales resultado de actividades relacionadas a los programas de ahorro de energia Ilevados a cabo por agencias y/o empresas del gobiemo;
(B) Capital de trabajo, donaciones o subsidios para que el sector privado invierta u opere programas de ahorro d e energia o para resolver problemas ambientales resultado de actividades relacionadas a los programas de ahorro de energia del propio sector;
(C) Como donaciones o subsidios a agencias gubernamentales, empresas paraestatales, instituciones educativas y/o organizaciones privadas para ser usadas para los siguientes prop6sitos:
. Programas de ahorro de energia o protecci6n ambiental;
* Estudios o proyectos de investigaci6n relacionados al desarrollo, promoci6n y ahorro de energia o de protecci6n ambiental;
* Proyectos piloto o de demostraci6n en ahorro de energia o protecci6n ambiental;
* Educaci6n, entrenamiento y/o conferencias relacionados al tema de la energia; y
• Promoci6n, diseminaci6n de informaci6n y/o trabajo de relaciones piublicas relacionados con el desarrollo y difusi6n del ahorro de energia o de la protecci6n ambiental.
(D) Costos administrativos del trabajo de promoci6n del ahorro de energia de acuerdo a lo establecido por el Acta.
3.2. EL PROGRAMA DSM DE EGAT EN TAILANDIA
En la actualidad EGAT realiza actividades de Gesti6n de la Demanda Electrica (DSM) a traves de una unidad creada especificamente para este prop6sito. Estas actividades se realizan con fundamento en dos principios (que se consideran tipicamente "Thai"): (a) que las medidas de DSM deben ser aceptadas de manera voluntaria y (b) que la
20 satisfacci6n de los usuarios debe tener el mismo nivel que el de antes de iniciar el I programa.
La Unidad de DSM fue creada en 1991 a partir de un trabajo realizado en Tailandia por el International Institute for Energy Efficiency (IEC). La Unidad tiene un presupuesto de 189 millones de d6lares para ser utilizados en el periodo 1993-1997. En este periodo se pretende que las actividades de la Unidad eviten la generaci6n de 1,427 GWh y la instalaci6n de 238 MW. Entre las actividades de esta unidad estAn el programa de sustituci6n de lamparas fluorescentes (descrito arriba) y el programa de etiquetado de electrodomesticos (descrito a continuaci6n). Esta unidad tiene planeado tambien un programa de sustituci6n de motores en el sector industrial, el cual esta actualmente bajo analisis.
3.3. ETIQUETADO DE ELECTRODOMESTICOS EN TAILANDIA.
Este es un programa que comenz6 en 1994 y que ha consistido, en un prirncipio, en la incorporaci6n de etiquetas que muestran el nivel de eficiencia de los refrigeradores nuevos produucidos en Tailandia. Estas etiquetas son proveidas por EGAT a los fabricantes para ser colocadas durante el ensamble de los equipos. El programa va orientado a los refrigeradores con capacidades de 5 a 6 pies cuibicos. Las etiquetas indican un nivel de eficiencia y de consumo y un estimado del costo de operaci6n. Los refrigeradores son evaluados por el Instituto de Estindares Industriales de Tailandia.
Las etiquetas muestran un valor de "3" para los refrigeradores con nivel de consumo promedio, de "4" para eficiencias 10% mayores y de "5" para eficiencias 25% mayores al promedio. Como resultado del programa de etiquetado, las ventas de los refrigeradores con calificaci6n de "3" bajaron del 43 al 6% de las ventas totales, las de calificaci6n de "4" se incrementaron de 50 al 81% y las de calificaci6n "5" tambien aumentaron del 7 al 13%. Las ventas anuales de refrigeradores en Tailandia son de un mill6n de unidades al anio. Se estima que con este programa se evitaran 27 MW de demanda maxima.
Como segunda etapa en este programa de etiquetado, se esta trabajando para extender la etiquetaci6n a equipos de aire acondicionado tipo ventana. Con un mercado anual que Ilega a las 400 mil unidades, se trabaja para que, a partir del primer dia de 1996, 30 a 40 modelos de los 200 que existen en el pals salgan de las fabricas con etiquetas que 21 informen sobre su nivel relativo de eficiencia energetica. En este sentido ya ha habido reumones con los fabricantes para hacer posible esta medida y se ha planteado ia entrega de un incentivo - pagado en principio por EGAT y recuperado despues a traves de la cuenta el&trica de los usuarios involucrados - para la promoci6n de los modelos mas eficientes, los cuales corresponden a valores de 9.6 y 10.6 BTU/Watt (los cuales lievarian los numeros "4" y "5", respectivamente).
3.4. CERTIFICACION DE ELECTRODOMESTICOS EN FILPINAS
En 1983, el Programa para el Desarrollo de la Organizaci6n de las Naciones Unidas (UNDP por sus siglas en ingles) otorg6 al gobierno de Filipinas una donaci6n para el desarrollo del Proyecto para la Asesoria en la Administraci6n de Energia en la Industria. Bajo este proyecto, y en colaboraci6n con la Organizaci6n de las Naciones Unidas para el Desarrollo Industrial (UNIDO por sus siglas en ingles) se estableci6 un laboratorio de pruebas para combustibles y equipos electrodomesticos. Como parte del proyecto se envi6 personal especializado a los Estados Unidos, al Reino Unido, Jap6n, Singapur y Suecia para entrenamiento especifico en el tema y para la adquisici6n del equipo apropiado para el laboratorio.
El primer edificio de este laboratorio fue terminado en 1986 y fue construido con fondos del propio gobierno de Filipinas. En 1991 se inaugur6 formalmente el laboratorio, el cual es operado y administrado por el Departamento de Energia de Filipinas.
En la actualidad el Laboratorio de Pruebas de Combustibles y Electrodomesticos (FATL por sus siglas en ingles) tiene actividades de pruebas de combustibles y agua, de calibraci6n de instrumentos de uso industrial y de pruebas a equipos electrodomesticos. En el area de pruebas a electrodom6sticos, FATL es responsable del desarrollo e implantaci6n del programa de etiquetado de eficiencia energetica para electrodomesticos. FATL recomienda normas de eficiencia energetica y lleva a cabo investigaci6n y pruebas de electrodomesticos, equipos y otros dispositivos usuarios de energia.
En particular, el FATL lleva a cabo actualmente pruebas de eficiencia energftica de refrigeradores, unidades de aire acondicionado y lamparas compactas fluorescentes. 22 Para las lAmparas compactas fluorescentes realiza tambien pruebas de longitud de vida bajo distintas condiciones de encendido-apagado y niveles de voltaje.
3.5. DISMINUCION DE PERDIDAS DE TRANSMISION Y DISTRIBUCION EN EL SECTOR ELECTRICO DE COREA
Corea, a traves de la empresa Korea Electric Power Company (KEPCO), es el pais que ha Ilevado a cabo las acciones mAs completas para la disminucion de perdidas de transmisi6n y distribuci6n en su sector eletrico, obteniendo una reducci6n de estas p6rdidas de 29.4% en 1961 a un 5.6% en 1994. Esto ha dado lugar a que el caso coreano sea un ejemplo a seguir por todos los paises que estan en proceso de desarrollo.
Como comparaci6n respecto de la situaci6n en Mexico, en 1992 la capacidad instalada de KEPCO era de 28,750 MW y su generaci6n fue de 164,933 GWH, mientras que para Mexico estos valores fueron de 31,649 MW y de 137,522 GWh, respectivamente. Respecto a p6rdidas de transmisi6n y distribuci6n las perdidas en Corea fueron de 5.6% mientras que en Mexico llegaron a 14.4% de la generaci6n total de electricidad.
Las acciones que ha Ilevado a cabo KEPCO para reducir sus perdidas han sido las siguientes:
(A) Formar un comite para el estudio y prevenci6n de perdidas;
(B) Hacer un analisis completo e instalar los medidores requeridos para identificar las magnitudes, lugares y motivos de las perdidas en los procesos de generacion, transmisi6n, transformacion, distribuci6n y comercializacion, determinando las perdidas tcnicas en los elementos del sistema elktrico asi como las perdidas no tcnicas entre las que se incluyen los usos ilicitos, fallas de medici6n, reducci6n intencional de lecturas, errores de calculo y otras fuentes de pErdidas.
(C) Instrumentar un programa de perdidas no tecnicas, que en 1961 eran las de mayor magnitud. Dentro de las acciones que se tomaron dentro de este plan se incluyen las siguientes:
* Formar un grupo de expertos en combate de usos ilicitos;
23 * Establecer campanias informativas anti usos ilicitos por medio de platicas, panfletos, posters, radio, TV y otros medios;
* Establecer un periodo de regularizaci6n voluntaria;
* Reconocimiento oficial e incentivos econ6micos a los empleados o grupos de trabajo segiun los logros en la reducci6n de usos ilicitos;
* Penalizar a los infractores y demandar a los reincidentes;
* Castigos ejempiares a empleados de KEMCO involucrados en usos ilicitos;
• Ubicaci6n de todos los medidores en la parte externa de las casas; y
* Verificaci6n en campo de los equipos de medici6n.
(D) Llevar a cabo los siguientes cambios en la infraestructura electrica:
* Substituci6n de equipos obsoletos e ineficientes por otros de alta eficiencia;
* Normalizaci6n de la red de transmisi6n de 345 KV y 154 KV y eliminar las lineas de transmisi6n de 66 kV y 22 kV;
• Construcci6n de plantas de generaci6n y subestaciones lo mas pr6ximos a los centros de carga y reducir la longitud de los alimentadores;
* Reemplazar las lineas de distribuci6n obsoletas de alta y baja tensi6n y convertir lineas monofasicas a trifAsicas. En 1970 se incluy6 el cambio de acometidas de calibre bajo;
* Controlar potencia reactiva mediante la instalaci6n de capacitores estaticos y reactores en paralelo;
* Sustituci6n de transformadores de distribuci6n de n(icleo laminado por transformadores de ndcleo enrollado con menores perdidas;
* Normalizaci6n de tensiones de alimentadores a 22.9 kV y eliminar los de 11.4, 5.7 y 3.3 k;
* Utilizar conductores con calibres mayores; y
• Corregir desbalances de cargas. 24 (E) Aplicar estrategias de la administracion de la demanda (DSM), tales como:
. Tarifas horarias;
. Cargas interrumpibles;
. Cogeneraci6n;
. Promoci6n de motores, equipos y aparatos electricos, asi como de lAmparas y luminarias de alta eficiencia energ6tica; y
. Control remoto de carga.
(F) Planeaci6n y construcci6n de nuevas plantas y subestaciones en forma oportuna y con equipos eficientes.
Con estas medidas y otras complementarias KEPCO redujo las p6rdidas como se indica a continuaci6n:
Afo 191 1966 1971 1976 1981 1986 1994 Perdidas 29.4 18.1 11.4 10.5 6.7 5.9 5.6
Como referencia, a continuacion de muestran los valores de las perdidas en trasnmision y distribuci6n de los sistemas electricos de diversos paises
Pais "/oPirdidas Irlanda 9 EspaAia 9 Austria 7 Inglaterra 8 Finlandia 5 Itaha 7 Holanda 4 Francia 6 USA 8 Japon 4 Tailandia 10 Filipinas 13 Chile 11 Mcxko 14.4
25 4. CONCLUSIONES Y RECOMENDACIONES I
La Misi6n Mexicana deriva de este viaje una experiencia sustancial muy positiva relacionada con el tema en cuesti6n. Se observa que los tres paises han logrado avances importantes en el ahorro y uso eficiente de la energia y que, al menos Corea y Tailandia, han sobrepasado el nivel de Mexico, especialmente en el marco legal, en los mecanismos financieros en operaci6n y en los recursos destinados al efecto, asi como en la cobertura y estructura de los programas. Los tres paises visitados ban seleccionado, en forma decisiva, el mejoramiento de la eficiencia energetica como una de las alternativas mis efectivas para lograr objetivos integrales de politica energetica, ambiental, tecnol6gica y econ6mica. A traves de ello, estAn reduciendo sus requerimientos energeticos evitando o diferenciando recursos para reforzar otras Areas, principalmente para modernizar su planta productiva, ahorrar costos y camplir con requisitos ambientales.
A manera de conclusion, cabe observar que la clave de exito de estos programas estriba en:
a) El establecimiento de fondos y mecanismos financieros que incentiven y apoyen el ahorro y uso eficiente de la energia, asi como de politicas fiscales que penalicen la ineficiencia y premien el ahorro;
b) La evoluci6n de normas y estandares nacionales y regionales sobre eficiencia energe tica, incluyendo la introducci6n de etiquetado y de instalaciones y mecanismos de prueba y certificaci6n;
c) El liderazgo del Estado en la promoci6n de actividades de ahorro de energia
d) El fomento de los mecanismos de mercado para la adopci6n y diseminaci6n de las tecnicas de ahorro y uso eficiente de la energia; y
e) El establecimiento de politicas racionales de precios de la energia que reflejen costos marginales de largo plazo, al tiempo que, en donde sea necesario, se mantiene la administraci6n transparente de unos precios subsidiados s6lo para los consumidores de mas bajos recursos.
26 5. ANEXOS
ANEXO 1. PROGRAMA DE ACrIVIDADES
Sept 16 TRASLADO A SEUL, COREA Sept 17 LLEGADA A SEUL, COREA Sept 18 SEUL - Visita a Energy Pabillion.
Sept 19 SEUL - Visita a exposici6n Green Energy - Visita a planta de cogeneraci6n de Samsung-Corning - Visita a oficinas de Korean Electric Power Company
Sept 20 SEUL - Asistencia a la sesi6n matutina del Curso '95 Traeinng Course for Energy Efficiency of Conservation - Visita a planta de cogeneraci6n con producci6n de calor para uso residencial.
Sept 21 TRASLADOA BANGKOK,TAILANDIA
Sept 22 BANGKOK - Reuni6n en el Energy Efficiency Center of ThaiJand - Reuni6n en el Department for Energy Development and Promotion - Reuni6n en la Comisi6n Socio-Econsmica para Asia y el Pacifico (ESCAP). - Reuni6n en el International Institute for Energy Efficiency
Sept 23 DIA LIBRE
Sept 24 DIA LIBRE
Sept 25 BANGKOK - Reuni6n en el Energy Generating Authority of Thailand -Visita al Asian Institute of Technology
Sept 26 BANGKOK -Visita a la planta de Sanyo Universal
27 TRASLADO A MANILA FILIPINAS
Sept 27 - Participacion en el Regional Workshop on Investement Promotion in the Domestic Manufacturing of Energy Efficient Products
Sept 27 - Participaci6n en el Regional Workshop on Investement Promotion in the Domestic Manufacturing of Energy Efficient Products
Sept 29 - Visita al Fuels and Appliance Testing Laboratory.
-Participacion en el Regional Workshop on Investemrent Promotion in the Domestic Manufacturing of Energy Efficient Products
Sept. 30 REGRESO A MEXICO
28 ANEXO 2. DOCUMENTACION RECABADA t COREA
- KEPCO 95, Reporte Anual de la Korea Electric Power Corporation.
- KEMCO, The Korea Energy Management Corporation. Folleto.
- 95 Training Course for Energy Efficiency of Conservation. The Korea Energy Management Corporation (KEMCO),Seul, Corea, 18-30Septiembre, 1995.
- Mass Energy. Mass Energy Supply Headquarters, The Korea Energy Management Corporation (Folleto).
TAILANDIA
- The Energy Conservation Center of Thailand (Folleto).
- Thailand Energy Situation 1993.Department of Energy Development and Promotion, Ministry of Science, Technology and Environment, Thailand.
- Oil and Thailand 1993. Department of Energy Development and Promotion, Ministry of Science, Technology and Environemnt, Thailand.
- Electric Power in Thailand 1993.Departnent of Energy Development and Promotion, Ministry of Science, Technology and Environemnt, Thailand.
- Annual Report 1994, Electricity Generating Authority of Thailand.
- Experience and Perspective of Demand Side Management in Thailand, Demand Side Management Office, The Electricity Generating Authority of Thailand, Agosto de 1995.
- National Energy Policy Office. Inter-Agency Manual for the Operation and Management of the Energy Conservation Program of Thailand. Bangkok, Diciembre de 1994.
- Energy Conservation PromotionAct. Bureau of Energy Regulation and Conservation, Department of Energy Development and Promotion, Bangkok, Thailand, Abril de 1995.
FILIPINAS
- Memorias del "Regional Workshop on Investement Promotion in the Domestic Manufacturing of Energy Efficient Products", Sept. 27-291995, Manila, Filipinas.
29 - Reportev sobre actividades de ahorro de energia en la Refineria BATAAN de la empresa PETRON de Filipinas (Fotocopias).
- Katrina V. Ignacio. Privtate Sector Initiatives Towards Energy Efficiency, Management and Conservation. Reporte. Manila, Filipinas, Septiembre de 1995.
- Fuels and Appliance Testing Laboratory. Department of Energy, Republic of the Philippines (Folleto).
ESMAP
- Energy Efficiency, Directory of Energy Consultants, Service Companies, Manufacturers, and Distributors of Enery Efficient Equipment and Appliances in Asia. Economic and Social Commission for Asia and the Pacific, United Nations. Bangkok, Tailandia, 1995.
ASIAN INSTITUTE OF TECHNOLOGY
- Annual Report on Research 1993, Asian Institue of Technology, Bangkok, Tailandia.
30 Annex ml
ESMAP
Mexico:Energy Efficiency ManagementTechnical Assistance to the ComisionNacional para el Ahorro de Energia (CONAE)
Activity Initiation Brief
Background
CONAE, the national energy conservation commission in Mexico, was founded in 1989 to coordinate efforts to improve energy efficiencyin various sectors Mexico. Since then it has built up an infrastructure of technical, regional/promotional,educational and financialunits. Through these units, it has started to implement a range of sectoral programs that aim to determine the energy savings potential in the various sectors, identify barriers to energy efficiency efforts, raise awareness by energy consumers and accelerate the uptake of energy efficiency investments by the private sector. In June 1994, CONAE's management was replaced by an interim management team. The new management has assumed an active "caretaker" role that seeks not only to provide continuity to ongoing programs but also to implementsome limited measures to improve the administrative and technical effectiveness of the institutionprior to the coming in of a new permanent management in January 1995. RecentWorld Bank Activities
The 1989 Hydroelectric Development Project (Loan 3083-ME) provided $3 million of funding for CONAE to execute three major energy conservation studies -- in mid and small size industries,in the transport sector and on norms and standards for electrical appUances-- as well as two studies on cogeneration. The results of the studies and the process of their execution undoubtedly contributedto advancingthe young Mexican program.
The completion of the World Bank financed studies in 1993/94 provided a nmilestone for examiningthe overall progress of the program and its future directions. The Bank review that was completed in April 1994 concluded that CONAE is off to a good beginning in developing a sustainable national energy conservation program. It has succeeded in attracting highly qualified and motivated staff The institutional structure that it has organized and the priorities it has defined are consistent with those that have characterized successfiulprograms in other countries. But the review also identified deficienciesin some areas which might hamper CONAE's effectivenessin the mid to long term.
X RevisedOctober 31, 1994. 2 TheMexican Energy ConservationProgram: A Review of the Experienceand Prospectsfor the Future. Industry and Energy Department,TheWorld Bank, April 15, 1994. On programimplementation, it was recommendedthat CONAEdevote more attention to: (a) conductingmarket research, starting with followingup on the resultsof its past energy auditsand other promotionalwork, and in identifyingthe remainingobstacles to investment decisionsby privatecompanies; (b) settingformal targets and definingin greaterdetail its long- term goals; and (c) putting in place a workable systemfor tracking and monitoringthe achievementsof the program. This last item is particularlyim'portant to build CONAE's credibilityand eventuallyformalize the inclusionof its programsinto the medium-to long-term energysector planningexercises. The process is more developedon the electricityside of CONAE'swork but lags on the hydrocarbonside.
Of greaterconcern are certaininstitutional issues. As an interministerialbody, CONAS maybe consideredwell-situated in termsof supportin principlefrom all partsof government.On the otherhand, its relianceon yearlybudget contributions from the variousministries is a sourceof perennialinsecurity and hampers the institution'sability to retainits highlyspecialized staff in the longterm. Its presentposition in the governmentstructure, while sufficient for jump-starting the energyconservation program, does not providefull authorityto coordinateall aspectsof the national effort. An examplecited in the report is the case of FIDE that is presently implementingCFE's demand side management(DSM) program without any mandatory coordinationwith or reportingof data and progressto CONAE. Whilefunctional overlaps withFIDE maynot be a problemat the moment,it is likelyto becomea significantissue in the futureand shouldbe addressedat the officiallevel at the earliestopportunity.
Recognizingthe vitalrole of efficiencyefforts in the energysector, the WorldBank is interestedto continueits support of Mexico'senergy conservation program,including the possibleinclusion of a packageof technicalassistance and demonstrationprojects for energy conservationin a future energyloan. In preparationfor such an investmentpossibility, the report recommendedthat a smalltechnical assistance support be immediatelyprovided to CONAEto enableit to addresssome of the priorityissues identified in the evaluationand to helpprepare a focussedproposal for Bankconsideration.
Objectives
The mainpurpose of the technicalassistance is to help CONAEaddress some of the key deficienciesidentified in the World Bank review, particularlythe need to delineate CONAE'sinstitutional identity and to establishits credibilityby puttingin place a workable monitoringprogram. Along with resultsof ongoingwork by EEC experts,the outputs of the ESMAPassistance are expectedto providethe incomingadministrations of both CONAEand the energy ministrywith a sound blueprint for the next phase of the national energy conservationprogram.
2 Scope of Work
Thistechnical assistance activity will have three major components:
Task 1. Investigationof variousoptions for reorganizingCONAE into an effective programmingand coordinatingbody with fullauthority and appropriateresources to develop and implementa nationalenergy conservation program. The work will buildupon effortsby the interimCONAE management to examinedifferent legislative approaches towards ensuring a stronginstitutional future for CONAE. ESMAPand internationalmanagement experts that wil be lateridentified will assist in the task. At the conclusionof this task, a workshopwill be organizedto discussthe recommendationsarrived at by the CONAE/ESMAPexperts team and to formallyconsult with all stakeholdersin bothgovernment and privatesectors.
Task 2. Developmentof a workableprogram for energymonitoring and targeting (EMT).EMT is an essentialcomponent of any sustainableenergy conservation program but so far has not been paid sufficientattention in the CONAEprogram. An EMT systemin place will enablequantitative determination of accomplishments,improve CONAE's credibility with its publicand privatesector clientsand eventuallyformalize the inclusionof its prograrninto the medium and long-term energy sector planningexercises. ESMAP and experienced intemationalconsultants will work withCONAE in the designof this program.
Task3. Assistancein the preparationof a focussedproposal for possibleWorld Bank financing,building on the preliminarylist of projectsalready proposed by the previousCONAE management,as wellas additionalideas that maybe developedin the interim.
Organizationof Work and Output
ESMAP will first review ongoing -nd completedwork under the CONAE/EEC cooperativeprogram to ensurenon-duplication of tasks and to determinewihat available data and informationcan be used to preparethe TA plan.Working with CONAEmanagement and residentEEC experts,the detailedterms of referencefor the three componenttasks of the TA will be drawn up by ESMAP. Suitableinternational experts will be identifiedto assist in implementingthe tasks.At the completionof the tasks,a seminarwill be organizedto discuss the findingsand to formallyconsult with all relevantsectors. For ESMAP,the final output of the activitywill be a Project CompletionReport summarizingthe essentialresults of the technicalassistance provided, and enclosingthe individualexperts reports and the resultsof the consultationworkshop.
Timetable and Budget
As agreed with the interimCONAE managment, implementation of the projectwill commencearound March 1994,when the permanentCONAE managers have assumedtheir positions.Starting from that date, the TA will be carried out over approximately10-12 months.The total cost to ESMAPis about US$ 150,000,of which$100,000 will be provided for directcosts and $50,000as in-kindESMAP resources.
3 Joint UNDP/World Bank ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP)
LIST OF REPORTS ON COMPLETEDACTIVITIES
Region/Country Activity/Report Title Date Number
SUB-SAHARANAFRICA (AFR)
Africa Regional Anglophone Africa Household Energy Workshop (English) 07/88 085/88 Regional Power Seminar on Reducing Electric Power System Losses in Africa (English) 08/88 087/88 Institutional Evaluation of EGL (English) 02/89 098/89 Biomass Mapping Regional Workshops (English) 05/89-- Francophone Household Energy Workshop (French) 08/89 103/89 Interafrican Electrical Engineering College: Proposals for Short- and Long-Term Development (English) 03/90 112/90 Biomass Assessment and Mapping (English) 03/90 -- Angola Energy Assessment (English and Portuguese) 05/89 4708-ANG Power Rehabilitationand Technical Assistance (English) 10/91 142/91 Benin Energy Assessment (English and French) 06/85 5222-BEN Botswana Energy Assessment (English) 09/84 4998-BT Pump ElectrificationPrefeasibility Study (English) 01/86 047/86 Review of Electricity Service Connection Policy (English) 07/87 071/87 Tuli Block Farms Electrification Study (English) 07/87 072/87 Household Energy Issues Study (English) 02/88 -- Urban Household Energy Strategy Study (English) 05/91 132/91 Burkina Faso Energy Assessment (English and French) 01/86 5730-BUR Technical Assistance Program (English) 03/86 052/86 Urban Household Energy Strategy Study (English and French) 06/91 134/91 Burundi Energy Assessment (English) 06/82 3778-BU Petroleum Supply Management (English) 01/84 012/84 Status Report (English and French) 02/84 011/84 Presentation of Energy Projects for the Fourth Five-Year Plan (1983-1987) (English and French) 05/85 036/85 Improved Charcoal Cookstove Strategy (English and French) 09/85 042/85 Peat Utilization Project (English) 11/85 046/85 Energy Assessment(English and French) 01/92 92 i 5-.BU Cape Verde Energy Assessment (English and Portuguese) 08/84 50-73-CV Household Energy Strategy Study (English) 02/90 110/90 Central African Republic Energy Assessement (French) 08/92 9898-CAR Chad Elements of Strategy for Urban Household Energy The Case of N'djamena (French) 12/93 160/94 Comoros Energy Assessment (English and French) 01/88 7104-COM Congo Energy Assessment (English) 01/88 6420-COB Power Development Plan (English and French) 03/90 106/90 C6te d'Ivoire Energy Assessment (English and French) 04/85 5250-IVC Improved Biomass Utilization (English and French) 04/87 069/87 Power System Efficiency Study (English) 12/87 -- Power Sector Efficiency Study (French) 02/92 140/91 Project of EniergyEfficiency in Buildings 09/95 175/95 Ethiopia Energy Assessment (English) 07/84 474 1-ET - 2 -
Region/Country Activity/Report Title Date Number
Ethiopia Power System Efficiency Study (English) 10/85 045/85 Agricultural Residue Briquetting Pilot Project (English) 12/86 062/86 Bagasse Study (English) 12/86 063/86 Cooking Efficiency Project (English) 12/87 -- Energy Assessment 02/96 179/96 Gabon Energy Assessment (English) 07/88 6915-GA The Gambia Energy Assessment (English) 11/83 4743-GM Solar Water Heating Retrofit Project (English) 02/85 030/85 Solar Photovoltaic Applications (English) 03/85 032/85 Petroleum Supply Management Assistance (English) 04/85 035/85 Ghana Energy Assessment (English) 11/86 6234-GH Energy Rationalizationin the Industrial Sector (English) 06/88 084/88 Sawmill Residues Utilization Study (English) 11/88 074/87 Industrial Energy Efficiency (English) 11/92 148/92 Guinea Energy Assessment (English) 11/86 6137-GUI Household Energy Strategy (English and French) 01/94 163/94 Guinea-Bissau Energy Assessment (English and Portuguese) 08/84 5083-GUB Recommended Technical Assistance Projects (English & Portuguese) 04/85 033/85 Management Options for the Electric Power and Water Supply Subsectors (English) 02/90 100/90 Power and Water Institutional Restructuring(French) 04/91 118/91 Kenya Energy Assessment(English) 05/82 3800-KE Power System Efficiency Study (English) 03/84 014/84 Status Report (English) 05/84 016/84 Coal Conversion Action Plan (English) 02/87 -- Solar Water Heating Study (English) 02/87 066/87 Peri-Urban Woodfuel Development (English) 10/87 076/87 Power Master Plan (English) 11/87 -- Lesotho Energy Assessment (English) 01/84 4676-LSO Liberia Energy Assessment(English) 12/84 5279-LBR Recommended Technical Assistance Projects (English) 06/85 038/85 Power System Efficiency Study (English) 12/87 081/87 Madagascar Energy Assessment (English) 01/87 5700-MAG Power System Efficiency Study (English and French) 12/87 075/87 Environmental Impact of Woodfuels (French) 10/95 176/95 Malawi Energy Assessment (English) 08/82 3903-MAL Technical Assistance to Improve the Efficiency of Fuelwood Use in the Tobacco Industry (English) 11/83 009/83 Status Report (English) 01/84 013/84 Mali Energy Assessment (English and French) 11/91 8423-MLI Household Energy Strategy (English and French) 03/92 147/92 Islamic Republic of Mauritania Energy Assessment (English and French) 04/85 5224-MAU Household Energy Strategy Study (English and French) 07/90 123/90 Mauritius Energy Assessment (English) 12/81 3510-MAS Status Report (English) 10/83 008/83 Power System Efficiency Audit (English) 05/87 070/87 Bagasse Power Potential (English) 10/87 077/87 Energy Sector Review (English) 12/94 3643-MAS Morocco Energy Sector Institutional Development Study (English and French) 07/95 173/95 -3 -
RegionwCountry Activity/Report Title Date Number
Mozambique Energy Assessment (English) 01/87 6128-MOZ Household Electricity Utilization Study (English) 03/90 113/90 Namibia Energy Assessment (English) 03/93 11320-NAM Niger Energy Assessment (French) 05/84 4642-NIR Status Report (English and French) 02/86 051/86 Improved Stoves Project (English and French) 12/87 080/87 Household Energy Conservation and Substitution (English and French) 01/88 082/88 Nigeria Energy Assessment (English) 08/83 4440-UNI Energy Assessment (English) 07/93 11672-UNI Republic of South Africa Options for the Structure and Regulation of Natural Gas Industry (English) 05/95 172/95 Rwanda Energy Assessment (English) G6/82 3779-RW Energy Assessment (English and French) 07/91 8017-RW Status Report (English and French) 05/84 017/84 Improved Charcoal Cookstove Strategy (English and French) 08/86 059/86 Improved Charcoal Production Techniques (English and French) 02/87 065/87 Commercializationof Improved Charcoal Stoves and Carbonization Techniques Mid-Term Progress Report (English and French) 12191 141/91 SADC SADC Regional Power Interconnection Study, Vol. I-IV (English) 12/93 -- SADCC SADCC Regional Sector: Regional Capacity-Building Program for Energy Surveys and Policy Analysis (English) 11/91 -- Sao Tome and Principe Energy Assessment (English) 10/85 5803-STP Senegal Energy Assessment (English) 07/83 4182-SE Status Report (English and French) 10/84 025/84 Industrial Energy Conservation Study (English) 05/85 037/85 Preparatory Assistance for Donor Meeting (English and French) 04/86 056/86 Urban Household Energy Strategy (English) 02/89 096/89 Industrial Energy Conservation Program 05/94 165/94 Seychelles Energy Assessment (English) 01/84 4693-SEY Electric Power System Efficiency Study (English) 08/84 021/84 Sierra Leone Energy Assessment (English) 10/87 6597-SL Somalia Energy Assessment (English) 12/85 5796-SO Republic of Options for the Structure and Regulation of Natural South Afiica Gas Industry (English) 05/95 172/95 Sudan Management Assistance to the Ministry of Energy and Mining 05/83 003/83 Energy Assessment (English) 07/83 4511-SU Power System Efficiency Study (English) 06/84 018/84 Status Report (English) 11/84 026/84 Wood Energy/Forestry Feasibility (English) 07/87 073/87 Swaziland Energy Assessment (English) 02/87 6262-SW Tanzania Energy Assessment (English) 11/84 4969-TA Peri-Urban Woodfuels Feasibility Study (English) 08/88 086/88 Tobacco Curing Efficiency Study (English) 05/89 102/89 Remote Sensing and Mapping of Woodlands (English) 06/90 -- Industrial Energy Efficiency Technical Assistance (English) 08/90 122/90 Togo Energy Assessment (English) 06/85 5221-TO Wood Recovery in the Nangbeto Lake (English and French) 04/86 055/86 Power Efficiency Improvement (English and French) 12/87 078/87 RegionWCounhwy Activity/Report Title Date Number
Uganda Energy Assessment (English) 07/83 4453-UG Status Report (English) 08/84 020/84 Institutional Review of the Energy Sector (English) 01/85 029/85 Energy Efficiency in Tobacco Curing Industry (English) 02/86 049/86 Fuelwood/ForestryFeasibility Study (English) 03/86 053/86 Power System Efficiency Study (English) 12/88 092/88 Energy Efficiency Improvement in the Brick and Tile Industry (English) 02/89 097/89 Tobacco Curing Pilot Project (English) 03/89 UNDP Terminal Report Zaire Energy Assessment (English) 05/86 5837-ZR Zambia Energy Assessment (English) 01/83 4110-ZA Status Report (English) 08/85 039/85 Energy Sector Institutional Review (English) 11/86 0o0186 Zambia Power Subsector Efficiency Study (Entglish) 02/89 093/88 Energy Strategy Study (English) 02/89 094/88 Urban Household Energy Strategy Study (English) 08/90 121/90 Zimbabwe Energy Assessment (English) 06/82 3765-ZIM Power System Efficiency Study (English) 06/83 005/83 Status Report (English) 08/84 019/84 Power Sector Management Assistance Project (English) 04/85 034/85 Petroleum Management Assistance (English) 12/89 109/89 Power Sector Management Institution Building (English) 09/89 -- Charcoal Utilization Prefeasibility Study (English) 06/90 119/90 Integrated Energy Strategy Evaluation (English) 01/92 8768-ZIM Energy Efficiency Technical Assistance Project: Strategic Framework for a National Energy Efficiency Improvement Program (English) 04/94 -- Capacity Building for the National Energy Efficiency Improvement Programme (NEEIP) 12/94 --
EAST ASIA AN]DPACIFIC (EAP)
Asia Regional Pacific Household and Rural Energy Seminar (English) 11/90 -- China County-Level Rural Energy Assessments (English) 05/89 101/89 Fuelwood Forestry Preinvestment Study (English) 12/89 105/89 Strategic Options for Power Sector Reform in China (English) 07/93 156/93 Energy Efficiency and Pollution Control in Township and Village Enterprises (TVE) Industry (English) 11/94 168/94 Fiji Energy Assessment (English) 06/83 4462-FIJ Indonesia Energy Assessment (English) 11/81 3543-IND Status Report (English) 09/84 022/84 Power Generation Efficiency Study (English) 02/86 050/86 Energy Efficiency in the Brick, Tile and Lime Industries (English) 04/87 067/87 Diesel Generating Plant Efficiency Study (English) 12/88 095/88 Urban Household Energy Strategy Study (English) 02/90 107/90 Biomass Gasifier Preinvestment Study Vols. I & II (English) 12/90 124/90 Prospects for Biomass Power Generation with Emphasis on Palm Oil, Sugar, Rubberwood and Plywood Residues (English) 11/94 167/94 - 5 -
RegioWCountry Activity/Report Title Date Number
Lao PDR Urban Electricity Demand Assessment Study (English) 03/93 154/93 Malaysia Sabah Power System Efficiency Study (English) 03/87 068/87 Gas Utilization Study (English) 09/91 9645-MA Myanmar Energy Assessment (English) 06/85 5416-BA Papua New Guinea Energy Assessment (English) 06/82 3882-PNG Status Report (English) 07/83 006/83 Energy Strategy Paper (English) Institutional Review in the Fnergy Sector (English) 10/84 023/84 Power Tariff Study (English) 10/84 024/84 Philippines Commercial Potential for Power Production from Agricultural Residues (English) 12/93 157/93 Energy Conservation Study (English) 08/94 -- Solomon Islands Energy Assessment (English) 06/83 4404-SOL Energy Assessment (English) 01/92 979/SOL South Pacific Petroleum Transport in the South Pacific (English) 05/86 -- Thailand Energy Assessment (English) 09/85 5793-TH Rural Energy Issues and Options (English) 09/85 044/85 Accelerated Dissemination of Improved Stoves and Charcoal Kilns (English) 09/87 079/87 Northeast Region Village Forestry and Woodfuels Preinvestment Study (English) 02/88 083/88 Impact of Lower Oil Prices (English) 08/88 -- Coal Development and Utilization Study (English) 10/89 -- Tonga Energy Assessment(English) 06/85 5498-TON Vanuatu Energy Assessment (English) 06/85 5577-VA Vietnam Rural and Household Energy-Issues and Options (English) 01/94 161/94 Power Sector Reform and Restructuring in Vietnam: Final Report to the Steering Committee (English and Vietnamese) 09/95 174/95 Household Energy Technical Assistance: Improved Coal Briquetting and CommercializedDissemination of Higher Efficiency Biomass and Coal Stoves (English) 01/96 178/96 Western Samoa Energy Assessment (English) 06/85 5497-WSO
SOUTH ASIA (SAS)
Bangladesh Energy Assessment (English) 10/82 3873-BD Priority Investment Program (English) 05/83 002/83 Status Report (English) 04/84 015/84 Power System Efficiency Study (English) 02/85 031/85 Small Scale Uses of Gas Prefeasibility Study (English) 12/88 India Opportunities for Commercializationof Nonconventional Energy Systems (English) 11/88 091/88 Maharashtra Bagasse Energy Efficiency Project (English) 07/90 120/90 Mini-Hydro Development on Irrigation Dams and Canal Drops Vols. I, II and III (English) 07/91 139/91 WindFarm Pre-Investment Study (English) 12/92 150/92 Power Sector Reform Seminar (English) 04/94 166/94 Nepal Energy Assessment (English) 08/83 4474-NEP Status Report (English) 01/85 028/84 -6-
Regoa/County Activity/Report Title Date Number
Nepal Energy Efficiency & Fuel Substitution in Industries (English) 06/93 158/93 Pakistan Household Energy Assessment (English) 05/88 -- Assessment of Photovoltaic Programs, Applications, and Markets (English) 10/89 103/89 National Household Energy Survey and Strategy Fomulation Study: Project Terminal Report (English) 03/94 -- Managing the Energy Transition (English) 10/94 Lighting Efficiency Improvement Program Phase 1: Commercial Buildings Five Year Plan (English) 10/94 -- Sri Lanka Energy Assessment (English) 05/82 3792-CE Power System Loss Reduction Study (English) 07/83 007/83 Status Report (English) 01/84 010/84 Industrial Energy Conservation Study (English) 03/86 054/86
EUROPE AND CENTRAL ASIA (ECA)
Eastem Europe The Future of Natural Gas in Eastern Europe (English) 08'92 149/92 Poland Energy Sector RestructuringProgram Vols. I-V (English) 01/93 151!93 Portugal Energy Assessment (English) 04/84 4824-PO Turkey Energy Assessment (English) 03/83 3877-TU
MIDDLE EAST AND NORTH AFRICA (MNA)
Morocco Energy Assessment (English and French) 03/84 4157-MOR Status Report (English and French) 01/86 048/86 Energy Sector Institutional Development Study (English and French) 05/95 173/95 Syria Energy Assessment (English) 05/86 5822-SYR Electric Power Efficiency Study (English) 09/88 089/88 Energy Efficiency Improvement in the Cement Sector (English) 04/89 099/89 Energy Efficiency Improvement in the Fertilizer Sector(English) 06/90 115/90 Tunisia Fuel Substitution (English and French) 03/90 -- Power Efficiency Study (English and French) 02/92 136/91 Energy Management Strategy in the Residential and Tertiary Sectors (English) 04/92 146/92 Yemen Energy Assessment (English) 12/84 4892-YAR Energy Investment Priorities (English) 02/87 6376-YAR Household Energy Strategy Study Phase I (English) 03/91 126/91
LATIN AMERICA AND THE CARIBBEAN (LAC)
LAC Regional Regional Seminar on Electric Power System Loss Reduction in the Caribbean (English) 07/89 -- Bolivia Energy Assessment (English) 04/83 4213-BO National Energy Plan (English) 12/87 -- National Energy Plan (Spanish) 08/91 131/91 La Paz Private Power Technical Assistance (English) 11/90 111/90 Natural Gas Distribution: Economics and Regulation (English) 03/92 125/92 -8 -
Region/Country Activity/Report Title Date Number
Peru Study of Energy Taxation and Liberalization of the Hydrocarbons Sector (English and Spanish) 120/93 159/93 Saint Lucia Energy Assessment (English) 09/84 5111-SLU St. Vincent and the Grenadines Energy Assessment (English) 09/84 5103-STV Trinidad and Tobago Energy Assessment (English) 12/85 5930-TR
GLOBAL
Energy End Use Efficiency: Research and Strategy (English) 11/89 Guidelines for Utility Customer Management and Metering (English and Spanish) 07/91 -- Women and Energy--A Resource Guide The InternationalNetwork: Policies and Experience (English) 04/90 -- Assessment of Personal Computer Models for Energy Planning in Developing Countries (English) 10/91 Long-Term Gas Contracts Principles and Applications (English) 02/93 152/93 Comparative Behavior of Firms Under Public and Private Ownership (English) 05/93 155/93 Development of Regional Electric Power Networks (English) 10/94 -- Roundtable on Energy Efficiency (English) 02/95 171/95 Assessing Pollution Abatement Policies with a Case Study of Ankara 11/95 177/95
05/8/96 - 7 -
Region/Country Activity/Report Title Date Number
Bolivia Prefeasibility Evaluation Rural Electrification and Demand Assessment (English and Spanish) 04/91 129/91 Private Power Generation and Transmission (English) 01/92 137/91 Household Rural Energy Strategy (English and Spanish) 01/94 162/94 Natural Gas Sector Policies and Issues (English and Spanish) 12/93 164/93 Brazil Energy Efficiency & Conservation: Strategic Partnership for Energy Efficiency in Brazil (English) 01/95 170/95 Chile Energy Sector Review (English) 08/88 7129-CH Colombia Energy Strategy Paper (English) 12/86 -- Power Sector Restructuring (English) 11/94 169/94 Costa Rica Energy Assessment (English and Spanish) 01/84 4655-CR Recommended Technical Assistance Projects (English) 11/84 027/84 Forest Residues Utilization Study (English and Spanish) 02/90 108/90 Dominican Republic Energy Assessment (English) 05/91 8234-DO Ecuador Energy Assessment (Spanish) 12/85 5865-EC Energy Strategy Phase I (Spanish) 07/88 -- Energy Strategy (English) 04/91 -- Private Minihydropower Development Study (English) 11/92 -- Energy Pricing Subsidies and Interfuel Substitution(English) 08/94 11798-EC Energy Pricing, Poverty and Social Mitigation (English) 08/94 12831-EC Guatemala Issues and Options in the Energy Sector (English) 09/93 12160-GU Haiti Energy Assessment (English and French) 06/82 3672-HA Status Report (English and French) 08/85 041/85 Household Energy Strategy (English and French) i2/91 143/91 Honduras Energy Assessment (English) 08/87 6476-HO Petroleum Supply Management (English) 03/91 128/91 Jamaica Energy Assessment (English) 04/85 5466-Jt Petroleum Procurement, Refining, and Distribution Study (English) 11/86 061/86 Energy Efficiency Building Code Phase I (English) 03/88 -- Energy Efficiency Standards and Labels Phase I (English ) 03/88 -- Management Information System Phase I (English) 03/88 -- Charcoal Production Project (English) 09/88 090/88 FIDCO Sawmill Residues Utilization Study (English) 09/88 088/88 Energy Sector Strategy and Investment Planning Study (English) 07/92 135/92 Mexico Improved Charcoal Production Within Forest Management for 08/91 138/91 the State of Veracruz (English and Spanish) Energy Efficiency Management Technical Assistance to the Comision Nacional para el Ahorro de Energia (CONAE) (English) 04/96 180/96 Panama Power System Efficiency Study (English) 06/83 004/83 Paraguay Energy Assessment (English) 10/84 5145-PA Recommended Technical Assistance Projects (English) 09/85 -- Status Report (English and Spanish) 09/85 043/85 Peru Energy Assessment (English) 01/84 4677-PE Status Report (English) 08/85 040/85 Proposal for a Stove Dissemination Program in the Sierra (English and Spanish) 02/87 064/87 Energy Strategy (English and Spanish) 12/90 -- -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-.-......
ESMAP c/o Industry and Energy Department The World Bank 1818 H Street, N. W. Washington, D. C. 20433 U. S. A.