Belo Horizonte
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1 Acknowledgements Table of Contents Improving Energy Efficiency in Belo Horizonte is a product of a Executive Summary/5 partnership between the Municipality of Belo Horizonte, and the World Bank’s Energy Sector Management Assistance Program Background/7 (ESMAP), Latin America and the Caribbean Environment Energy Trends in Brazil/8 Department, and Latin America and the Caribbean Disaster Risk Energy Efficiency in Brazil/9 Management and Urban Department. The publication has been produced thanks to the contribution of The Government of Spain, Sector Diagnostics/11 through the Spanish Fund for Latin America and the Caribbean. Transport/13 Private Vehicles/14 The World Bank would like to thank the Mayor of Belo Horizonte, Solid Waste/17 Marcio Araújo de Lacerda, for his support. The Belo Horizonte Water and Wastewater/20 Department of the Environment coordinated this analytical work on Power and Heat/23 behalf of the City and the World Bank thanks Secretary of the Public Lighting/26 Environment Department - Vasco de Oliveira Araujo, Executive Municipal Buildings/29 Secretary of the Municipal Committee on Climate Change and Eco- efficiency - Anna Maria Louzada Drummond, and Planning and Energy Efficiency Recommendations/30 Environmental Monitoring Manager - Weber Coutinho, for their Municipal Buildings/31 effort in making this work possible. In addition, the World Bank Public Lighting/34 would like to thank the following for providing data, facility tours Solid Waste/35 and assistance with prioritizing the final set of recommendations: Transport - Private Cars/35 SLU Superintendent of Urban Cleaning - Wadson Vieira Dias; COPASA Transport - Public Transport/37 Superintendent of Environment and Water - Tales Heliodoro Viana; Potable Water/37 CEMIG Business Manager - Ezequiel Teodoro Elorde, BHTRANS General/38 Sustainability Coordinator - Marcelo Cintra do Amaral; and SUDECAP Maintenance Director - Augusto Cesar Pirassinunga. Annexes/42 This report was prepared by Pedzi Makumbe (Energy Specialist, ESMAP Task Team Leader) as part of a Development Policy Loan Currency Equivalents: US$1.00 = R$1.80 (DPL) to Belo Horizonte (BH) led by Alessandra Campanaro (Infrastructure Finance Specialist, LCSDU BH DPL Task Team Leader). Core team members included Catalina Marulanda (Senior Environmental Specialist), Ivan Jaques (Senior Energy Specialist, EECI Program Team Leader) and Feng Liu (Senior Energy Specialist) of the World Bank. The team was supported by Felipe Bittencourt (Director at WayCarbon) and Patricia Vargas (WayCarbon). 2 Abbreviations and Acronyms MW – Mega Watts MWh – Mega Watt Hours ONS – Operador Nacional do Sistema Elétrico - National Eletrical System ACR - Ambiente de Contratação Regulada –Regulated Contract Market Operator ANA - Agência Nacional de Águas - National Water Authority PAC - Programa de Aceleração do Crescimento - Growth Acceleration Program ANEEL - Agência Nacional de Energia Elétrica -National Electric PBE – Programa Brasileiro de Etiquetagem - Brazilian Appliance Labeling Energy Agency Program . ARSAE – MG - Agência Reguladora de Serviços de Abastecimento de Água e de PEE - Programa de Eficiência Energétia- Energy Efficiency Program Esgotamento Sanitário do Estado de Minas Gerais - Sanitation and Water Supply PNE - Plano Nacional de Energia - National Energy Plan 2030 Service Regulating Authority of Minas Gerais PNEf - Plano Nacional de Eficiência Energética - National Energy Efficiency Plan BEN - Balanço Energético Nacional - National Energy Balance PROCEL - Programa Nacional de Conservação de Energia Elétrica - National BHTRANS - Empresa de Transportes de Trânsito de Belo Horizonte -Transport and Electricity Conservation Program Transit Company of Belo Horizonte RBM – BH Metas e Resultados - Results Based Management BNDES - Banco Nacional de Desenvolvimento Econômico e Social - National Bank RELUZ - Programa Nacional de Iluminação Pública e Sinalização Semafórica of Socio and Economic Development Eficiente- National Program forEfficient Public Lighting and Traffic Light Signal CBTU - Companhia Brasileira de Trens Urbanos- Brazilian Company of Urban SEDRU - Secretaria de Desenvolvimento Regional e Políticas Urbanas - State Trains Department of Regional Development and Urban Policy CCEE – Câmara de Comercialização de Energia Elétrica - Electric Energy SETOP –Secretaria de Estado de Transportes e Obras Públicas - State Department Commercialization Chamber of Transportation and Construction CEMIG – Companhia Energética de Minas Gerais – Minas Gerais Energy SIN - Sistema Interligado Nacional - National Interconnected System Company SLU - Superintendência de Limpeza Urbana - Urban Cleaning Superintendence CICE – Comissão Interna de Conservação de Energia - Internal Commission for SUDECAP - Superintendência de Desenvolvimento da Capital - Superintendence Energy Conservation for the Development of the Capital CONPET – Programa Nacional da Racionalização do uso dos Derivados de SUPRAM - Superintendência Regional de Regularização Ambiental -Regional Petróleo e do Gás Natural - National Program for the Rational Use of Oil and Superintendence of Environment and Sustainable Development Natural Gas TRACE - Tool for Rapid Assessment of City Energy COPASA - Companhia de Saneamento de Minas Gerais - Sanitary Company of UGEM - Unidade de Gestão Energética Municipal - The Municipal Energy Minas Gerais Management Unit DETRAN-MG - Departamento de Trânsito de Minas Gerais -Traffic Department of Minas Gerais EE-Energy Efficiency EECI – Energy Efficient Cities Initiative ESCO – Energy Services Company ESMAP –Energy Sector Management Assistance Program ETE - Estação de Tratamento de Esgoto - Wastewater Treatment Plant FTU - Fundo de Transporte Urbano - Urban Transport Fund GDP – Gross Domestic Product GW – Giga Watts IBGE - Instituto Brasileiro de Geografia e Estatística – Brazilian Institute of Geography and Statistics IGAM - Instituto Mineiro de Gestão da Águas- Institute of Water Management of Minas Gerais INMETRO - Instituto Nacional de Metrologia, Qualidade e Tecnologia - National Institute of Metrology, Quality and Technology IPEA - Instituto de Pesquisa Econômica Aplicada – Research Institute of Applied Economics IPTU - Imposto Predial e Territorial Urbano - Urban Land Tax kWh – Kilo Watt Hour 3 World Bank specific energy efficiency interventions. It has been used (or is being used) The World Bank Group is an international organization that provides in cities in 20 countries in Europe, Asia, Latin America and Africa. financial and technical assistance to developing countries. It includes the International Bank for Reconstruction and Development (IBRD), which aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 188 member countries. The WBG also includes the International Development Association (IDA), which provides interest-free loans—called credits— and grants to governments of the poorest countries and the International Finance Corporation (IFC), which provides loans, equity and technical assistance to stimulate private sector investment in developing countries. A fourth body is the Multilateral Investment Guarantee Agency (MIGA), which provides guarantees against losses caused by non-commercial risks to investors in developing countries. The Bank Group also includes the International Centre for the Settlement of Investment Disputes (ICSID), which provides international facilities for conciliation and arbitration of investment disputes. Energy Sector Management Assistance Program (ESMAP) The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and technical assistance program administered by the World Bank. It provides analytical and advisory services to low- and middle- income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Denmark, Finland, France, Germany, Iceland, Lithuania, the Netherlands, Norway, Sweden, and the United Kingdom, as well as the World Bank. Tool for Rapid Assessment of City Energy (TRACE) TRACE is a decision-support tool designed to help cities quickly identify energy efficiency (EE) opportunities. The tool was developed by the Energy Sector Management Assistance Program (ESMAP). It includes an energy benchmarking module that compares a city with peer cities, a sector prioritization module that ranks the sectors with the greatest energy efficiency potential, and a recommendations module which provides 4 Executive Summary TRANSPORT – The City is investing nearly one billion dollars in urban Belo Horizonte is one of the largest cities in Brazil. Its economy has been mobility infrastructure. While the investments make sense individually, growing rapidly over the last decade, and preparations for hosting the 2014 they are not well interconnected. Interconnecting the different plans and FIFA World Cup have resulted in several infrastructure projects. As the projects to facilitate better use of different transport modes and economy has grown, so has the demand for energy; and Belo Horizonte has infrastructure would result in substantial financial and energy savings. For demonstrated a commitment to sustainable development in