Energy Efficiency: The Prosperity Fuel
Energy Efficiency: The Prosperity Fuel Observations from the Inter American Development Bank
Ariel Yepez Energy Division Chief June 2017
IDB Key facts 48 member countries • Majority owned by the 26 borrowing member countries of LAC. • US largest shareholder. Other shareholders include 16 European countries, Canada, Japan, Korea, China, Israel.
IDB clients include Central governments, provinces, municipalities, private firms, and NGOs.
Approved lending Largest development lender in the region
Total US$9.3B in 2016 Energy US$3.6 B in the last 5 years 2
Energy intensity: How is LAC doing?
3
The Energy Path of Latin America and the Caribbean In 2040 electricity demand will increase by around 95% under a business as usual scenario. 3,000,000
2,500,000
95 ∆%
GWh
2,000,000
1,500,000
1,000,000
500,000
0 1972
1976
1980
1984
1988
1992
1996
2000
2004
2008
2012
2016
2020
2024
2028
2032
2036
2040
Source: Yépez-García et al. (2017, forthcoming)
4
IDB Energy Investment lending Period 2012 - 2016 = US$ 3.6 billion
16% 16%
12%
2% 12% 34% 34%
30% 30%
5%
2%
Source: IDB ENE 2016
5
EE has multiple benefits, yet…
… there are barriers: -
Institutional Informational Regulatory Financial Other
6
What are we doing to stimulate more investments in EE? •
Ongoing EE projects in Barbados and Jamaica.
•
EE projects under preparation in Mexico, Argentina, Ecuador.
•
Generating LAC-specific data to inform policy makers.
•
Providing technical assistance for institutional strengthening and enabling regulatory environments.
•
Developing financing mechanisms to support EE investments.
7
The ‘baseline’ dilemma Residential Sector
Energy consumption Source: IEA 2014
OECD 4.4 toe/capita
LAC 1.21 toe/capita 8
Street lighting There are many underserved areas in LAC EE can play an important role in increasing coverage and reducing cost of energy
9
Designing effective EE programs Key elements for doing ‘more’ with greater efficiency
•
Consider adequate baseline and metrics
•
Promote lifecycle assessments for investment decisions (to overcome upfront investment barriers)
•
Raise awareness on benefits of EE
•
Support governments to strengthen institutional and regulatory environments
•
Assist with innovative financing mechanisms
10
Summarizing •
EE is fundamental for our policy dialogue in LAC
•
Electricity demand is expected to double in 20 years in LAC
•
Our objective at IDB is to support countries development agendas
in a sustainable manner and EE plays a key role decoupling economic growth from energy consumption.
11
THANK YOU!
Ariel Yepez Energy Division Chief June 2017 12
BARBADOS: A smart fund to increase the use of RE and EE technologies
Smart fund loans by sector
13
JAMAICA: Energy Management and Efficiency Programme (EMEP) US$ 30 M
Other Costs
Component I Retrofitting Government Buildings with EE measures US$21,13 M
Component II Implementation of Urban Traffic Management System US$3.5 M
Component III Support to Electricity Planning and Supervision US$1.78 M
Deep energy retrofits in 23 buildings
Upgrading the Traffic Control Center
Technical studies to implement IRP
Project Management
Lighting retrofits in 50 buildings
Installation of traffic control peripherals
Software for planning
Monitoring and Evaluation
Waste Disposal Management
Capacity Building
Specialist consultancies plus On-the-job training
Audits
US$ 3.6 M
Capacity Building Communication and Raising awareness
14
Ariel Yepez Energy Division Chief June 2017
IDB Key facts 48 member countries • Majority owned by the 26 borrowing member countries of LAC. • US largest shareholder. Other shareholders include 16 European countries, Canada, Japan, Korea, China, Israel.
IDB clients include Central governments, provinces, municipalities, private firms, and NGOs.
Approved lending Largest development lender in the region
Total US$9.3B in 2016 Energy US$3.6 B in the last 5 years 2
Energy intensity: How is LAC doing?
3
The Energy Path of Latin America and the Caribbean In 2040 electricity demand will increase by around 95% under a business as usual scenario. 3,000,000
2,500,000
95 ∆%
GWh
2,000,000
1,500,000
1,000,000
500,000
0 1972
1976
1980
1984
1988
1992
1996
2000
2004
2008
2012
2016
2020
2024
2028
2032
2036
2040
Source: Yépez-García et al. (2017, forthcoming)
4
IDB Energy Investment lending Period 2012 - 2016 = US$ 3.6 billion
16% 16%
12%
2% 12% 34% 34%
30% 30%
5%
2%
Source: IDB ENE 2016
5
EE has multiple benefits, yet…
… there are barriers: -
Institutional Informational Regulatory Financial Other
6
What are we doing to stimulate more investments in EE? •
Ongoing EE projects in Barbados and Jamaica.
•
EE projects under preparation in Mexico, Argentina, Ecuador.
•
Generating LAC-specific data to inform policy makers.
•
Providing technical assistance for institutional strengthening and enabling regulatory environments.
•
Developing financing mechanisms to support EE investments.
7
The ‘baseline’ dilemma Residential Sector
Energy consumption Source: IEA 2014
OECD 4.4 toe/capita
LAC 1.21 toe/capita 8
Street lighting There are many underserved areas in LAC EE can play an important role in increasing coverage and reducing cost of energy
9
Designing effective EE programs Key elements for doing ‘more’ with greater efficiency
•
Consider adequate baseline and metrics
•
Promote lifecycle assessments for investment decisions (to overcome upfront investment barriers)
•
Raise awareness on benefits of EE
•
Support governments to strengthen institutional and regulatory environments
•
Assist with innovative financing mechanisms
10
Summarizing •
EE is fundamental for our policy dialogue in LAC
•
Electricity demand is expected to double in 20 years in LAC
•
Our objective at IDB is to support countries development agendas
in a sustainable manner and EE plays a key role decoupling economic growth from energy consumption.
11
THANK YOU!
Ariel Yepez Energy Division Chief June 2017 12
BARBADOS: A smart fund to increase the use of RE and EE technologies
Smart fund loans by sector
13
JAMAICA: Energy Management and Efficiency Programme (EMEP) US$ 30 M
Other Costs
Component I Retrofitting Government Buildings with EE measures US$21,13 M
Component II Implementation of Urban Traffic Management System US$3.5 M
Component III Support to Electricity Planning and Supervision US$1.78 M
Deep energy retrofits in 23 buildings
Upgrading the Traffic Control Center
Technical studies to implement IRP
Project Management
Lighting retrofits in 50 buildings
Installation of traffic control peripherals
Software for planning
Monitoring and Evaluation
Waste Disposal Management
Capacity Building
Specialist consultancies plus On-the-job training
Audits
US$ 3.6 M
Capacity Building Communication and Raising awareness
14
