1. Energy Efficient Refrigerators – Utility Perspective
Conference “The Future of Sustainable Products and Services”
Policy and Market Development for SP&S in Developing Countries
Antonio Pinhel - Brazil
28th and 29th of September 2009 - Essen, Germany

2. FUNDING - ENERGY EFFICIENCY PROJECTS
-EE funds from tariff (0,5% x net revenue = USD 250 million/yr)
-Tax cuts for EE equipments x production growth
-Subsidies from the government for programs implementation
-Special loans / micro credits / housing
-Clean Development Mechanism /environment (others)
-Blending sources
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3. EVALUATION - ENERGY EFFICIENCY PROJECTS
-Electric Sector (country side)
- Postponed investments (Generation,Transm,Distribution)
- Avoided O&M costs (including environmental and subsidies reduction)
- Project Impact (industrial production)
-Utility Side
-Collection rate & billing costs (including charging costs)
-Commercial losses (fraud/theft)
-Distribution grid costs (investment & other O&M)
-Cross subsidies
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4. IMPLEMENTING - ENERGY EFFICIENCY PROJECTS
- Identifying Partnerships/stakeholders (to reduce risks and
leverage the resources and results):
-Community/ hiring local people
-NGO’s /International Agencies
- Inserting the project in governmental programs:
-Housing (federal, state and municipal levels)
-Environment
-Industry
- Manufacturers / selecting technology (incl. minimum standards x
price)
- Information
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5. Coelba
Northeast of Brazil
Founded in 1960 and privatized in 1997
Concession area of 563,374 km2
4,4 million clients (14 million people)
200,000 new clients in 2008
55% of clients are low-income (<80 kWh/month,
140,000 connection/yr, 14% consumption)
Net revenues = € 1.5 billion/yr
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6. WHY TARGET LOW INCOME HOUSEHOLDS?
- Difficulty to pay for electricity (default and theft)
- A segment with high customer (number) share and high growth rates
- Relevant potential to achieve energy savings through information and
education and intervention (equipmt replacement)
- Better to achieve efficient consumption than higher, non-sustainable (or
non-payable) consumption levels
Search for Business
Sustainability
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7. ENERGY EFFICIENCY PROJECTS
COELBA’s main actions focused on low-income communities:
Coelba Agent Project
1.1 Retrofitting internal electric wiring and CFL’s donation
1.2 Information - Raising community awareness about energy
savings and default reduction
1.3 Commercial Assistance – Service Request (keeping customer
records, charging, invoicing and supplying)
1.4 Refrigerator Replacement
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8. RESULTS – COELBA AGENT SALVADOR (PHASES 1,2 AND 3)
Average Consumption of Communities assisted by the Coelba Agent Project
120
Rationing betw een
mar/01 and feb/02
110
100
90
} 17%
kWh/month
80
70
60
50
40
nov/01
nov/02
nov/03
nov/04
jan/01
mar/01
may/01
jul/01
sep/01
jan/02
mar/02
may/02
jul/02
sep/02
jan/03
mar/03
may/03
jul/03
sep/03
jan/04
mar/04
may/04
jul/04
sep/04
jan/05
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9. END USES PATTERN CHANGES FROM 1999 to 2005
COELBA AGENT SALVADOR
Consumption by End Use
OTHERS
1999
6%
Reduction in electricity
intensity: 17%
OTHERS
20%
LIGHTING 2005
REFRIGERATION 51%
43%
LIGHTING
42%
REFRIGERATION
38%
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10. REPLACEMENT OF REFRIGERATORS AND CFL BULBS IN LOW-INCOME COMMUNITIES
low-
Potential market in Bahia: 2,000,000 low-income clients with,
at least, 40% badly maintained refrigerators:
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11. LOW-INCOME COMMUNITIES
Table 3 - Estimated Average Consumption, without
Energy Efficient Equipments
Power Time of Use (hours) Monthly %
Equipment (W) Hours/day Days/month Consumption Consumption
(kWh)
Light Bulbs in
Living Room 60 6 30 10.80 15.50
and Kitchen
Light Bulbs in
60 1 30 1.80 2.60
Bedroom
Light Bulbs in
60 1 30 1.80 2.60
Bathroom
Old
138 12 30 49.68 71.10
Refrigerator
14” TV 48 4 30 5.76 8.20
TOTAL 69.84 100.00
Source: COELBA 2006
Average cost: US$ 7/month
(2 x affordable electricity bill)
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12. LOW-INCOME COMMUNITIES
Table 5 - Estimated Average Residential Consumption
with Energy Efficient Equipments
Power Time of Use (hours) Monthly Consumption
Equipment (W) Hours/day Days/month Consumption (%)
(kWh)
Light Bulbs in
Living Room 15 6 30 2.70 8.20
and Kitchen
Light Bulbs in
15 1 30 0.45 1.40
Bedroom
Light Bulbs in
15 1 30 0.45 1.40
Bathroom
New
88 9 30 23.70 71.70
Refrigerator
14” TV 48 4 30 5.76 17.40
TOTAL 33.06 100.00
Estimated Energy savings: 50%
& Elect Bill Reduction: 65%
SUSTAINABLE LEVEL
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13. Refrigerator Replacement Project
• 17,000 – 270 - liters EE fridge and 60,000
CFL’s were replaced
• The CFC -12 gas is collected from the old
refrigerators for recycling and the scrap
metal is sold.
• The money raised goes to income
generation projects in low-income
communities.
• Recycling of 400 kg of CFC-12 gas
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14. Project Results
120
Average consumption in kWh of clients who substituted their refrigerators in July /2006
110 106,34 106,54
102,82
98,65 100,20
100 95,26
91,88 92,57 92,19 92,55 92,95 93,03 91,37 93,85 91,75
89,89 90,35 89,35
87,32 87,69 89,04 87,29 86,76 87,20 87,42 87,71 87,74
90 85,23
83,54
80,78 81,81 82,36
84,65 85,81
80 73,87 74,52 73,17
kWh
75,27 73,89
70,66 69,31
69,62 68,87 68,85
70 65,33
62,89
65,49 60,60
60
Period after substitution of refrigerators
50 Regular consumption below 80 kWh
157.367 clients w ith regular consumption betw een jan/06 and sep/07 w ere
40 analysed, of w hich 573 had their refrigerator substituted.
30
05
06
06
07
06
6
07
7
05
6
06
7
06
06
07
07
5
6
6
7
6
7
6
7
l/0
l/0
/0
/0
t/0
r/0
t/0
r/0
t/0
t/0
/0
/0
v/
o/
v/
o/
n/
n/
n/
v/
n/
v/
z/
z/
ai
ai
ar
ar
ju
ju
ou
ou
ab
ab
no
no
se
se
de
de
fe
fe
ag
ag
ju
ju
ja
ja
m
m
m
m
Substituted Refrigerator Did Not Substitute Refrigerator
Refrigerator substitution started in July 2006, reducing average
monthly consumption from 100 kWh to 70 kWh
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15. Project impact (2006)
Community: Castelo Branco
100 93,13
88,11
90
80 67,51
61,84
kWh /month
70
60
50 59,82 59,60 60,09
58,62
40
30
20
10
-
Jun Jul Ago Set
Received new fridge in Jul/06 Did Not Received
Collection rate: from 77,7% to 87,1%
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16. The Refrigerator Replacement Project was recognized as an Exemplary
Project at the commemoration of the 20th anniversary
of the Montreal Protocol, with other 39 projects worldwide.
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17. Overall Results
Economic
Postponed Investments
Collection Rate increase
Commercial losses reduction
Customer side
Reduction in electricity cost up to 75%
Environment
CFC12 (recycled and avoided leakage)
Replacement of old refrigerators and incandescent (scraped)
Avoided CO2 emissions
Market Push for efficient appliances
lowering prices and new models for low income customers
Project replicated by several utilities in Brazil
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18. Key Points – Utility Side
EE Fund
Focusing on the Demand Side (end use & income
profiles)
Local community involvement
Planning, logistics and monitoring
Existence of labelling program (from PROCEL)
Scalability
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19. NEXT STEPS
Continue monitoring and ex-post evaluation
Design of finance mechanism for leveraging the
results
Incentive design of new/efficient products and
services for low income population
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20. Income Generation Project: Moradas da Lagoa
Proceeds from scraped refrigerators
COELBA partners: USAID, UNDP, SECOMP-BA, UNIFACS.
Label/brand
Plant building
Team
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21. Praia do Forte – Bahia
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22. Thank you!
www.neoenergia.com
Antonio Pinhel
apinhel@neoenergia.com
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