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Towards a more sustainable energy economy

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Energy Efficiency Policies for the SEMED/Arab Region Workshop.

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Towards a more sustainable energy economy

  1. 1. Towards a More Sustainable Energy EconomyClimate Change Risk Management Programme in Egypt1ByDr. Anhar HegaziDirector Energy Efficiency Unit, EEUInformation and Decision Support Center, IDSCCabinet of Ministers, COM.Dr. Ibrahim YassinProject ManagerImproving Energy Efficiency for Lighting & Building AppliancesGEF/UNDP projectJordan 2013
  2. 2. Petroelum Products Consumption by Sector(2010/2011)Climate Change Risk Management Programme in Egypt2
  3. 3. Natural Gas Consumption by Sector ( 2010/2011)Climate Change Risk Management Programme in Egypt3‫اإلجمالي‬=46.9‫متر‬ ‫بليون‬3
  4. 4. Climate Change Risk Management Programme in Egypt4‫اإلجمالي‬=46.9‫ساعة‬ ‫تيراوات‬Electricity Consumption by Sector ( 2010/2011)
  5. 5. The challenge of Energy DeficitClimate Change Risk Management Programme in Egypt5Energy supply/ demand deficit isexpected reach (30- 50) m.t.o.ebetween (2022- 2050) , i.e about24% - 35% of the demand
  6. 6. An Aggressive energy policy reform is needed toClimate Change Risk Management Programme in Egypt6* Enhancing exploration activities for fossil energy resources* Upgrading Energy Efficiency (EE) both in the supply anddemand side sectors.* Increasing the contribution of RE resources .* Development of an appropriate energy institutionalframework .
  7. 7. Institutional strengtheningClimate Change Risk Management Programme in Egypt7* Challenged by the lack of clarity on the institutionalresponsibility for EE, the EEU was established in the COM, forshifting towards a more energy efficient economy and greateruse of RE and,* to provide technical advice and support to the Supreme EnergyCouncil "SEC" and coordinates national EE efforts across allsectors to strengthen the linkage between policy development
  8. 8. Supporting the SEC’s PrioritiesClimate Change Risk Management Programme in Egypt8
  9. 9. Decentralized EEU’s. in key ministers toClimate Change Risk Management Programme in Egypt9* Creating sector-specific EE units in each of the major energyproduction and consumption sectors to carry on theresponsibility of planning, implementation and monitoring EEactivities in these sectors.
  10. 10. Energy Efficiency Indicators Specific EE indicators and the streamlining of each of thesector’s energy information system and supportingdatabases should be simultaneously developed to create thebasis for future benchmarks, regulations and standards. An analytical study sponsored through the MDG-F/CCRMP has identified and evaluated the necessarystructure for an effective indicators system that takes intoaccount the relationship between energy consumption andeconomic structure and activity for the sector and its mainsub-sectors.Climate Change Risk Management Programme in Egypt10
  11. 11. Funding and Legislation The successful implementation of the recommendedsector-specific EE units will require funding and technicalassistance (TA). there will also be a need to provide financing schemes toenergy end-users to fund EE projects . it is critical that the Government continue energy pricereform, develop and implement EE law and associatedregulations that can foster an EE financing market.Climate Change Risk Management Programme in Egypt11
  12. 12. Climate Change Risk Management Programme in Egypt12Most of the lighting used in Egypt is to a great extentresponsible for the system peak time electricityproduction; in addition to high electricity bills, it has anegative impact on the environment by requiring thecombustion of greater quantity of fuel in power plantsresulting in atmospheric pollutants shown to cause globalwarming.In order to reduce energy consumed by lightingequipment through its efficient utilization, it wasnecessary to assess the following:* The most common types of lighting used in Egypt.* The market size of the lighting equipment inEgypt.Promotion of Efficient Lighting
  13. 13. Efficient Lighting EquipmentClimate Change Risk Management Programme in Egypt13Compact Fluorescent Lamps and Electronic Ballasts havebeen targeted to reduce the share of lighting in total energyconsumption, based on the following:• Simple technology, does not need special preparation.• Simple and short pay back period.• Direct and high impact on energy saving and CO2 reduction.
  14. 14. Technical and Financial Feasibilityof Efficient Lighting EquipmentClimate Change Risk Management Programme in Egypt14 Using CFL lamp saves 80% of the electricity consumed by theequivalent incandescent one, therefore leading to a correspondingaverage energy savings per one lamp over its lifetime of about 750kWh and a corresponding fuel savings of 225 kg oil equivalent and675 kg CO2 reductions. Using of low Wattage tubular fluorescent lamps leads to energysavings are 10% of its current consumption. Replacing gradually, magnetic ballasts by electronic ones, leads toenergy savings of around 30%. Based on current market prices and electricity tariff, CFL isfinancially feasible for residential, commercial and industrial users
  15. 15. Climate Change Risk Management Programme in Egypt15BankESCOIEEL&ACGCENDUSERIEEL&A: Improving EnergyEfficiency for Lighting & BuildingAppliances projectCGC: Credit Guarantee CompanyESCO: Energy Service Company100% loanguaranteeLoanpaymentLoanInstallment EE ProjectPartialguarantee50%ReportingTechnical SupportLoan Guarantee Mechanism
  16. 16. Case studiesClimate Change Risk Management Programme in Egypt16‫المبنى‬‫الوفر‬ ‫نسبة‬)%(‫االسترداد‬ ‫فترة‬)‫(سنه‬‫فى‬ ‫االنخفاض‬CO2 ‫انبعاث‬)‫(طن‬‫والكهرببء‬ ‫الميكبنيكب‬ ‫مصلحة‬ ‫عبم‬ ‫ديىان‬28.013.2732.27‫الشىاطىء‬ ‫لحمبية‬ ‫العبمة‬ ‫المصرية‬ ‫الهيئة‬28.43.426‫السالم‬ ‫ترعة‬ – )2( ‫السالم‬ ‫طلمببت‬ ‫محطة‬‫المنجب‬ ‫أبى‬ ‫وطلمببت‬ ‫محطبت‬56.381.276.54‫المبنى‬‫الوفر‬ ‫نسبة‬)%(‫االسترداد‬ ‫فترة‬)‫(سنه‬CO2 ‫انبعاث‬ ‫فى‬ ‫االنخفاض‬)‫(طن‬‫العينى‬ ‫القصر‬37.122.743.44‫الشيراتون‬43.832.928.925‫الهرم‬30.863.426.698‫لمصلحة‬ ‫التابعة‬ ‫المبانى‬ ‫بعض‬‫والكهرباء‬ ‫الميكانيكا‬–‫وزارة‬‫المائية‬ ‫الموارد‬‫التابعة‬ ‫االدارية‬ ‫المبانى‬‫ودعم‬ ‫معلومات‬ ‫لمركز‬‫لرئاسة‬ ‫التابع‬ ‫القرار‬ ‫اتخاذ‬‫الوزراء‬ ‫مجلس‬
  17. 17. Climate Change Risk Management Programme in Egypt17Barriers to increase market penetration of energyefficient lighting in the residential sector: The residential sector consumes 41% of the total electricityconsumption out of which 34% for lighting purposes (13%of the total consumption) mainly consumed during peakhours. Principal barriers to increasing the market penetration ofenergy efficient lighting in this sector: Low awareness by consumers and, to some extent, retailersconcerning the benefits of energy efficient lighting Lack of experience, and in some cases trust, of the targetedconsumers regarding the performance and quality of newlighting products; Usually higher upfront costs of energy efficient lightingcompared to the alternatives with lower efficiency .
  18. 18. Climate Change Risk Management Programme in Egypt18Efficient Lighting Initiatives undertakentargeting the residential sector Diffusion program of CFLs by the Distribution Companiesthrough leasing programs. Encourage the private sector to manufacture CFL locally. Public awareness programs through media, seminars andexhibitions Cooperation with NGOs for increase customer awareness ,and training technicians for mounting and repairingefficient lighting equipment.
  19. 19. Climate Change Risk Management Programme in Egypt19 Ministry of Electricity and Energy subsidized 50% of normalretail price of good quality CFLs- First phase, 6.5 million lamps, 20 watt have been sold tocustomers for half of their prices 6 L.E lamp and a guaranteeperiod of 18 months.- Second phase selling an additional 3 million lamps with thesame system.- additional 2.9 million lamps have been tendered by theelectricity distribution companies to continue this process .Efficient Lighting Initiatives undertakentargeting the residential sector
  20. 20. Climate Change Risk Management Programme in Egypt20Energy Efficiency Program for Street Lighting Energy consumption of street lighting in Egypt reached 6.1TWh in year 2010/2011 representing 4.9% of the totalelectricity consumed by the country with a cost of about L.E2.8 billion. Upon recommendations of the Supreme Council of Energy,an energy efficiency street lighting program is currentlyimplemented in coordination between the Ministry ofFinance, Ministry of Local Development and Ministry ofElectricity and Energy.
  21. 21. Climate Change Risk Management Programme in Egypt21 The total cost of the program is M.L.E 260 over a periodof two years. The first phase is implemented in great Cairo Governoratewith a cost of M.L.E 20 The general features of this program consist of:o Replacing sodium and mercury lamps by CFLsdepending on the types of streets and in accordancewith international standardso Restriction of the use of mercury vapor lampsEnergy Efficiency Program for Street Lighting
  22. 22. Standards & Labels ProgramClimate Change Risk Management Programme in Egypt22 A ministerial decree of the “Minister of Industry” was issued for applying thespecifications and the energy efficiency labels for the following:Accredited Energy Efficiency TestingLaboratories have been erected at “Newand Renewable Energy Authority”premises for: RefrigeratorsAir conditionersWashing machinesEfficient lighting equipmentElectric water heaters A
  23. 23. Climate Change Risk Management Programme in Egypt23Ministerial decrees for enforcement of Energy Efficiencyby the “Ministry of Housing Utilities & Urbancommunities” have been issued:- (482/2005) on 20/12/2005 for residential buildings- (190/2009) on 25/5/2009 for commercial buildings- (433/2010) on 26/8/2010 for Governmental buildingsDeveloped administrative building code has beenincorporated in the Unified Building Law.Building Codes
  24. 24. Climate Change Risk Management Programme in Egypt24 A joint cooperation agreement has been signed for theprovision of technical assistance to the “The GeneralAuthority for Cultural Palaces” in order to raise awareness inthe field of rationalization and improvement of energyefficiency. An agreement with “Ministry of Awqaf” to implement energyconservation mechanism, due to rapid increase in energyconsumption during Ramadan, was carried out starting with40 mosques to define the energy saving opportunities.Cooperation with Gov. entities
  25. 25. IEEL&A Project OutcomesClimate Change Risk Management Programme in Egypt251OutcomeAccelerateGrowth of theEE LightingMarket inEgypt:2OutcomeComprehensiveS&L Schemefor BuildingAppliances:3OutcomeSustain the Project Results
  26. 26. Issues Not AddressedClimate Change Risk Management Programme in Egypt26* Adopted EE Initiatives and policies have mainly focused onsaving electricity consumption and promoting RE for electricityproduction.* Issues that have not yet been addressed by consent EE and REpolicies are:- Efficiency legislation for the industrial and commercial sectors.- Enforcement of efficiency codes in buildings .- Restructuring the transportation system and Enhancing masstransport.- Dissemination of distributed solar systems and biomasstechnologies
  27. 27. Strategic Policy RecommendationClimate Change Risk Management Programme in Egypt27The EEU/IDSC is currently adopting a strategic approachincluding six key issues:* The policies and plans for promoting EE and RE shouldbe closely linked to the needs of socio-economic development .* EE and RE activities should not be considered only for thedemand side sub-sector, but for the energy sector at large.* Demand-side management should be an integral element of theoverall energy sector long-term planning.
  28. 28. Strategic Policy Recommendation “cont.”Climate Change Risk Management Programme in Egypt28* Accountability for EE should lie with the consuming sectors.* Plans for promoting RE applications, should carefully considerall available resources / technology options.* EE and RE programs should effectively contribute toenvironmental protection and climate change mitigation.
  29. 29. EEU Ongoing Activities and the Way ForwardClimate Change Risk Management Programme in Egypt29* Introducing efficient lighting systems to the three IDSCbuildings.* Leading an initiative to introduce efficient lighting systems tolarge consuming public facilities.* Contributing to the implementation of the "ESPSP" funded by EU.* In cooperation with MOH, developing the regulation for thedisseminating installation of solar water heaters in newbuildings is prepared.
  30. 30. The Way ForwardClimate Change Risk Management Programme in Egypt30* Further building an effective institutional framework.* Developing a national energy efficiency strategy.* Updating the exiting RE targets and strategies.* Developing sector-specific EE operating plans.* Implementing market initiatives and policies in targeted sectors.* Monitoring and market development* Ensuring that an adequate and stable financial support isestablished.
  31. 31. Climate Change Risk Management Programme in Egypt31Thank you