City Energy Efficiency Diagnostics Insights from World ... · Builds on many years of WB energy work in ... ($4.3 million) allocated through calls for proposal (1st round in 03/2014)

Workshop on Needs and Opportunities for International Collaboration on Urban Energy Systems Planning

International Energy Agency, Paris October 28-29, 2014

Martina Bosi, Senior Energy Economist

Energy Sector Management Assistance Program (ESMAP) THE WORLD BANK

City Energy Efficiency Diagnostics

– Insights from World Bank

experience

Presentation Outline

2

Context

The Case for Energy Efficiency in cities

ESMAP’s City Energy Efficiency Transformation Initiative (CEETI)


– Tool for Rapid Assessment of City Energy

Preliminary insights into development of Mexico Municipal Energy Efficiency project

– Data collection efforts

Annex: The World Bank Cities Agenda - other examples

Focus on cities…

Demands on cities: challenges and

opportunities

•World energy consumption

•Global emissions of greenhouse gases

Why focus on energy efficiency in cities? ENERGY EFFICIENCY IS A MEANS TO AN END

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City administrations priorities • Public safety • Delivery of basic services • Housing • Chronic traffic congestions • Municipal budgets • Local air pollution • …

Urban energy efficiency can bring multiple benefits: • Reduce pressure on budgets • Improve/expand services to citizens • Improve competitiveness • Safety and security (e.g. lighting) • Energy security • Reduce pollution, GHG emissions • …

National priorities • Econ dev. • Poverty

alleviation • Energy

security/access • Employment • Climate change • ….

Cities & EE Opportunities

Buildings: Largest energy consumers

Public lighting:

Energy savings of

more than 50%

possible with

more efficient

technology

Transport: co-benefits in

reduced pollution & congestion

Water: energy can represent up

to 40% of operational

costs

ESMAP City Energy Efficiency Transformation Initiative (CEETI) $9 million World Bank program over 3 years

Builds on many years of WB energy work in cities

– Technical and operational support

– Conducting city energy diagnostics with TRACE (Tool for Rapid Assessment of City Energy)

– Guidance notes and publications

Launched in Barcelona on Nov. 18, 2013

CEETI part of broader WBG agenda to support cities, including Low Carbon and Livable Cities Initiative (LC2)

7 www.esmap.org/node/3042

8

Capacity Building and Urban EE e-learning modules:

- finalizing modules on (i) public lighting; (ii) municipal solid waste; and (iii) water & waste water;

- Package with modules on: (iv) public buildings; (v) public procurement of EE services procurement; (vi) urban transport; as well as (vii) TRACE

Technical Assistance - Grants ($4.3 million) allocated through calls for proposal (1st round in 03/2014)

- Additional proposals in pipeline

Knowledge creation and exchange

- Urban energy efficiency resource center

- Facilitating North-South-South exchanges

- Engage with financiers

City Energy Efficiency Transformation Initiative COMPONENTS

TECHNICAL ASSISTANCE SUPPORT (TO DATE)

9

City Energy Efficiency Transformation Initiative: Technical Assistance support (to date)

Countries/ program Cities EE Focus

Brazil Rio, Belo, Sao Paulo Lighting, buildings, industry, transport (spatial planning)

Pakistan Karachi Solid waste; water; street lighting, buildings

Macedonia 2 cities tbd Water and street lighting

Ukraine Kiev; Ternopil and Kamianets Podolskki

Street lighting and municipal buildings

China Shenzhen Lighting, buildings, transport, heat & power, urban planning; industry strategy & investment plan for emissions peaking by 2020

IFC EDGE Green Building Program

- Global knowledge infrastructure

- South Africa

EDGE Tool (http://www.edgebuildings.com/#/)

- Voluntary Standard and certification program

City Energy Efficiency Transformation Initiative (CEETI)

How it Works

10

TRACE is used to help

cities identify under-

performing sectors,

evaluate improvement

and cost-saving

potentials, and prioritize

sectors and EE

interventions.

TRANSPORT BUILDINGS PUBLIC LIGHTING

WATER & WASTEWATER

POWER & HEATING

SOLID WASTE

TRACE l Tool for Rapid Assessment of City Energy A Decision Support Tool for Evaluating Energy Efficiency Opportunities in Cities

http://esmap.org/TRACE



TRACE DEPLOYED IN 27 CITY ENERGY EFFICIENCY DIAGNOSTICS SO FAR

11

Focuses on areas under direct municipal government control

Provides a snapshot of energy efficiency across 6 municipal sectors

Sensitive to user-city context, and budget /policy authority

Produces a “big-picture”

analysis based on available data

and interviews

Includes guidance and case studies to aid in

implementing the recommendations

TRACE version 2.0 – planned updates (underway)

Refined estimates and moving towards pre-feasibility studies

Improved key performance indicators

Expanded and updated recommendations list

Additional 2 sectors: (i) non-public buildings; (ii) industry (in cities)

Improved interfaces Integration of data

collection/entry


The City Energy Efficiency Diagnostic are part of the World Bank energy dialogue with client countries/cities. • TRACE deployment helps structure and inform the diagnostics and dialogue. The

diagnostic process includes several weeks of upfront data gathering and benchmarking, sector meetings, and the preparation of a final report.

Data Collection Phase TRACE Deployment City Report

Gather data Benchmark city energy

use

Introduce TRACE / hold sector

meetings

Assess most promising sectors

Review recommendations in priority sectors

Prepare final recommendations

Prepare final city report

Dialogue with client

ESMAP EXPERIENCE

• Dialogue continues after diagnostics. It can be accompanied with further analysis, consultations, pre-feasibility, financing model, to inform implementation/investment decisions.

Overview of the World Bank’s urban energy

efficiency Technical Assistance Program to Rio de

Janeiro

13

100+

Option

s

-Data Collection &

Preliminary Analysis

-Mission

-Further Analysis

Beginning of diagnostic

TRACE Assessment

Synthesizing

Potential

Programs Pre-Feasibility

Studies Pilots,

Fundraising,

Feasibility

Diagnostic: Dialogue, data collection, TRACE Tool deployment Technical Assistance & Investments

Implementatio

n of Selected

Interventions

MEXICO: Ciudades del país participarán en proyecto

para aprovechamiento de la energía efficiency

El Maestro Leonardo Beltrán Rodríguez, Subsecretario de Planeación y Transición Energética de la Secretaría de Energía (SENER), anunció que con el apoyo del Banco Mundial (BM), se realizarán diagnósticos en una ciudad de cada estado de la República…..

SENER PRESS RELEASE - JUNE 25, 2014

11/3/2014 14

• El Subsecretario Beltrán explicó que dichos estudios se llevarán a cabo con el programa denominado TRACE, herramienta desarrollada por el Programa de Asistencia para la Gestión del Sector de Energía (ESMAP) del BM para ayudar a las ciudades a identificar rápidamente las oportunidades de eficiencia energética.

http://energia.gob.mx/portal/Default_blt.aspx?id=2884

Launch of urban energy diagnostics in 30 cities across Mexico. • With support of the World

Bank • [Will build on experience

of Leon and Puebla]

Diagnostics to be conducted with ESMAP’ s TRACE tool • To help cities rapidly identify

energy efficiency opportunities

Cities will participate in energy efficiency project

Mexico Municipal Energy Efficiency Project (1)

Objectives:

– To support large-scale demonstration of energy efficiency investments in the municipal service sector and in public buildings; and

– To improve national and local capacity in designing and implementing municipal energy efficiency programs.

2 main components:

– Technical Assistance: Policy development and institutional strengthening

– Municipal energy efficiency investments (e.g., street lighting, municipal buildings and water and waste water)

WITH SUPPORT OF THE WORLD BANK

15


Context:

– Historic structural reform aiming to increase economic growth & reduce inequality

• Energy Sector reform key component

– Climate change among national priorities

• Key to address energy supply and demand (mostly in cities)

– By 2027, 88 percent of the population will live in cities

• Expected cities’ consumption: 50% of Mexico’s energy resources & 60% of its water resources

Key drivers/rationale:

– If nothing changes, Mexico faces possibility of becoming net importer of energy by 2020

– Increased pressure to provide quality & affordable public service

– Untapped EE opportunities at sub-national level

– Focus on municipalities: they can help influence citizens and market

– Reduction of municipal energy expenditures can create fiscal space for other priorities

– Contribution towards Mexico’s climate change objectives

SUPPORTED BY THE WORLD BANK

11/3/2014 16


Important considerations and challenges

– Municipalities’ highest expenses: (i) salaries; (ii) public lighting; and (iii) water supply and treatment services

– Lack of energy use information at municipal level and often limited municipal capacity

– Constrained borrowing capacity and limited municipal budgets for up-front cost of EE investments

– Principal agent problem and lack of longer term vision at municipal level due to 3-year administration with no re-election

– Insufficient energy savings incentives

– Need to engage with different institutions & levels of government

WITH SUPPORT OF THE WORLD BANK

11/3/2014 17


Institutions:

Project implemented by Ministry of Energy (SENER)

– Also working with Finance (SHCP) and NAFIN (Federal Government Development Bank)

CONUEE (EE Agency)

FIDE (Energy savings trust fund) will be operator

CFE (state-owned power company)

Municipalities

Water utilities (legally independent)

State agencies (transport sector)

Municipal solid waste operators

PROJECT PARTNERS AND DESIGN

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Key design issues:

Ensure sustainability

– Energy service contracts (ESA) rather than municipal debt

– Risk sharing schemes (guarantees)

Eligibility criteria:

– Technologies

– Cities

– Energy efficiency diagnostic

Contracts and payments

– % co-financing from municipalities

– Payments from energy savings (ESA)

– Exploring re-payments through electricity bills


World Bank project cycle

STATUS AND TIMELINE

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Mexico Municipal Energy Efficiency Project

Project currently in Preparation Phase (incl, project design, economic & financial analysis, safeguards.. )

Effectiveness: Sept 2015

Expected Board Date: May-June 2015

+ 2 Energy diagnostics already completed: Puebla & Leon

City Energy Diagnostics in 30 cities underway

Mexico Municipal Energy Efficiency Project (6) DATA COLLECTION (UNDERWAY) – GENERAL

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Mexico Municipal Energy Efficiency Project (7) DATA COLLECTION (UNDERWAY) – PUBLIC LIGHTING

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22

“Cities are not the problem, they are the solution”

Jaime Lerner

Annex : The World Bank Cities Agenda - other examples

24

The Low Carbon, Livable Cities Initiative

get cities ready get finance flowing

1

2

3

4

5

City Climate planner Certification Program Professional certification system with potential to dramatically increase local capacity for climate-smart planning

Climate Action for URBan Sustainability (CURB) Tool Modeling tool to help municipal governments and local climate planners assess which strategies make the most sense from a cost and performance perspective. Climate Smart city-level capital investment planning process Long term infrastructure plans through a low carbon lens

Facility for Financing Low Carbon Assets at City Level (starting with public lighting) Developing innovative pooled financing mechanism to facilitate large scale transactions in energy efficiency at city level – (International Lighting Efficiency Facility)

City Creditworthiness Academies Help cities develop action plans to improve their credit worthiness

IFC EDGE Green Building Market Transformation Program

25

CBG

MAS

SBA

FM

A2

F

IC

PP

P

Government

regulations and

procurement

Supporting

new

products for

financial

institutions

Edge certification

system

Investing in

buildings and

materials

standard, tool

A four-pronged approach

to incentivize market

adoption of green building

practices

Builds on resources and

pipeline of IFC investments

and advisory

Incorporates a global

certification system to define

and validate green buildings.

Free software that helps

design green buildings in

more than 100 countries.

IFC’s EDGE Green Building Market Transformation Program

http://www.edgebuildings.com/#/

Thank You.

Martina Bosi

[email protected]

www.esmap.org

mailto:[email protected]

Documents

City Energy Efficiency Diagnostics Insights from World ... · Builds on many years of WB energy work in ... ($4.3 million) allocated through calls for proposal (1st round in 03/2014)