Pakistan's Energy Challenges: a Seminar Supported by USAID

Energy Efficiency & Capacity
(EEC) Project
Energy Efficiency:
Greatest Energy Resource
Pakistan Engineering Council
Alexander Filippov
Alliance to Save Energy
February 23, 2010

(EEC) Project
(EEC) Project
Alliance to Save Energy:
Mission:
 To promote energy efficiency
worldwide to achieve a
healthier economy, a cleaner
environment, and greater
energy security.
The Alliance is…
 Staffed by 50+ professionals
 31 years of experience in
policy, research, education,
communications, technology
deployment and market
transformation
The Alliance to
Save Energy
Policy
Leaders
Environ-
mental
Groups
Academia
Business
Leaders

(EEC) Project
(EEC) Project
Alliance Directors: Bi-Partisan Elected
Officials and Industry Leaders
Peter Darbee, President
& CEO PG&E
Senator Mark Pryor
(D-Ark.)
 Guided by an elected Board of Directors
 Leaders of environmental, consumer, and trade
associations; state and local policy makers; corporate
executives
Bi-partisan, bi-cameral Honorary Vice Chairs

(EEC) Project
(EEC) Project
What is the Alliance?
 NGO coalition of 150+ prominent business, government, environmental and
consumer leaders.
 Conduct policy, education, research, technology deployment, market transformation
and communication initiatives.
 Headquartered in Washington, D.C. with operations in Eastern Europe, South Africa,
Mexico, India and several states in the U.S.

(EEC) Project
(EEC) Project
• National Petroleum Council (“Hard Truths”)
- “energy efficiency is a very near-term energy resource,
and tapping it is essential” (Dan Yergin, Vice Chair of
Study)
• Utility leaders
– Jim Rogers (CEO, Duke Energy) -- “the fifth fuel”
– Tom Kuhn (President, EEI) -- “the first fuel”
• Barack Obama:
– “One of the fastest, easiest, and cheapest ways to make
our economy stronger and cleaner”
• Secretary Chu
– "The biggest gains…will come from energy efficiency and
conservation”
Everyone’s talking about energy efficiency:

(EEC) Project
(EEC) Project
Why Energy Efficiency?
• CHEAPER
• Each $1 invested in Energy Star program = $75 in energy cost
savings and $15 of investment in new efficiency technologies
• Average cost of utility DSM programs = $0.02 -0.04/kWh
• QUICKER
• In 2001, California cut peak electricity use by 10% in less than
a year
• CLEANER
• “Negawatts” produce NO ENVIRONMENTAL FOOTPRINT
• IMPROVE THE ECONOMY and ENERGY SECURITY
• Minimize Needs for Imported Energy
• Create New Jobs
• Help Keep Energy Prices Lower by Reducing Demand

(EEC) Project
(EEC) Project

(EEC) Project
(EEC) Project
• Research and Development - Creates Technologies
– RD&D Partnerships with Industry
• Incentives - Make them Viable
– Tax Incentives
– Utility DSM Programs
• Public Education - Makes them Widespread
– Consumer Education Campaigns
– Labels (eg Energy Star)
• Standards - Set a floor & trigger innovation
– Appliance Efficiency Standards
– Building Energy Codes
– Vehicle CAFE Standards
• Public sector leadership – Reduce market risk
• Financing energy efficiency – Guaranteed savings; EE Funds
• Workforce development – Capacity building
Energy Efficiency Strategy: Tools for Success

(EEC) Project
(EEC) Project
Policy Tools: Appliance Standards
• Appliance standards are among the most
effective EE policies
• Total savings from existing standards in 2000:
– 2.5% of U.S. electricity use
– 21,000 MW of peak power demand
– $50 billion in net consumer savings
• Total savings from existing standards by 2020:
– 7.8% of projected U.S. electricity use
– 120,000 MW of peak power demand
– $186 billion in net consumer savings

(EEC) Project
(EEC) Project
Energy Efficiency Endorsement Labeling
• Energy Star: EPA and DOE
program
• Recognize energy efficient
products:
– Appliances
– Lighting products
– Furnaces and AC
– Computers and
electronics
• Energy Star Homes
• Comparison Label
• Commercial Building Label

(EEC) Project
(EEC) Project
Industrial Systems Energy Efficiency
• Industrial firms tend to invest in process changes for EE
and productivity – long term and high cost
• Cross-cutting energy systems (motors-driven, steam,
process heating) offer 20-50% savings potential
– Inefficient systems found in nearly every plant
– Near-term, lower-cost savings are from optimizing
systems not components (2-5% savings)
• Customize system energy efficiency for each site
• Best Practices:
– Educate plant engineers: training, software, publications
– Industry partnerships
– Cost-shared plant energy assessments

(EEC) Project
(EEC) Project
• Signature Alliance to
Save Energy Education
Program
• Paid Student
Internships
• State-wide
implementation team
Green Campus Program
UC Santa Barbara
UC San Diego
UC Berkeley
Humboldt State
CSU San Bernardino
San Diego State
UC Irvine
CSU Chico
UC Merced
Cal Poly Pomona
UC Santa Cruz
Stanford
Cal Poly SLOLA East College
LA West College
LA Southwest College

(EEC) Project
(EEC) Project
Supporting green workforce development (!)
– Integrating energy and water efficiency into curricula
– Realizing measurable energy and water savings
– Fostering ongoing campus awareness
– Developing and implementing campus energy efficiency policy
– Creating effective and lasting partnerships
Green Campus Program

(EEC) Project
(EEC) Project
• Intra-campus
– Individual & team
projects
– Monthly newsletters
– Quarterly/semesterly
stakeholder meetings
• Inter-campus
– Shared database
– Regional trainings
– Biannual
convergences
Chico Green Campus Team
Green Campus Program: Structure & Network

(EEC) Project
(EEC) Project
WATERGY : Efficiency of municipal water
and wastewater systems
Watergy makes the best use of two valuable,
limited resources: water & energy
WHY IS THIS IMPORTANT?
 Every liter of water that passes through a system has a significant
energy cost.
 Water sector efficiency leaves more funds for crucial and often
underfunded public services.
 In developing countries, the loss of supplied water is 30 – 50%
AND IT’S COST EFFECTIVE…
 Rapid Payback: generally from a few months to 3 years
 Huge Savings: at least 20% in energy costs; much higher possible
 Makes the most of existing infrastructure; reduces the need for new

WHAT IS WATERGY?
A Quick Snapshot
Watergy makes the best use of two valuable,
limited resources: water & energy
WHY IS THIS IMPORTANT?
 Every liter of water that passes through a system has a significant
energy cost.
 Water sector efficiency leaves more funds for crucial and often
underfunded public services.
 In Mexico, the water supplied that is lost: 1/3
AND IT’S COST EFFECTIVE…
 Rapid Payback: generally from a few months to 3 years
 Huge Savings: at least 20% in energy costs; much higher possible
 Makes the most of existing infrastructure; reduces the need for new

(EEC) Project
(EEC) Project
The Most Cost-Effective Interventions
 Pumps
 Leak and Pressure
Management
 Automated Controls
 Metering & Monitoring

(EEC) Project
(EEC) Project
COMMON BARRIERS to Energy & Water Efficiency
1. Lack of Awareness
Especially true applying energy efficiency to water sector
2. Aversion to Risk
Fear of change. Must convey that benefits outweigh any risks.
3. Change May Imply a Problem with the Status Quo
Suggestions for change may imply criticism of performance,
ability.
4. Subsidies
Water should be priced to recover costs.
Can be politically sensitive.
5. Financing Efficiency
“Performance” (savings)-based financing in cases where
capital outlays required.

(EEC) Project
(EEC) Project
CASE STUDY:Emfuleni, South Africa
ESCO Model of Performance Contracting
APPLIED TO WATER
PROBLEM
• 80% of water delivered was lost through leaking plumbing fixtures!
• Exacerbated by high pressure in bulk water supply lines:
 makes existing leaks worse;
 pre-mature failure of plumbing fixtures in this low-income area.
SOLUTION
 Pressure reduction
 Water pressure management firm acting as ESCO
 Fees: firm gets 20% of savings
 Build-Own-Operate-Transfer to municipality after 5 years

(EEC) Project
(EEC) Project
The water lost was enough to fill two Olympic swimming pools every hour!

(EEC) Project
(EEC) Project
RESULTS
• Payback period: 3 months
• Annual Savings
COST: $3.8 million
ENERGY: >14 million kWh
WATER: 7 million kiloliters
CO2 Emissions avoided:
12,000 tonnes
• Performance contracting applied to water supply

(EEC) Project
(EEC) Project
Case study: Tamil Nadu 2007-09
 One of the most urbanized states
in India
 Hub for several industrial activities
 Suffers from severe energy and
water shortages
 Many inhabitants of the state only
enjoy running water for a few
hours a day
Objective
 Create confidence in the use of performance contracts in
public sector among all stakeholders by ensuring the success
of the Tamil Nadu Municipal Energy Efficiency Program

(EEC) Project
Issues
 Availability of Finance to
ESCOs.
 Payment Guarantee
Mechanism to ESCOs
 ESCO projects in India
often falter if not fail due
to disputes over
quantifying energy
savings resulting from the
project
Solutions
 TNUIFSL / TNUDF willing to
finance ESCOs
 Setting up of TRA Account
with electricity bill payment
escrowed
 Using The International
Performance Measurement
and Verification Protocol
(IPMVP).

(EEC) Project
(EEC) Project
• Partnership with Tamil Nadu
Urban Infrastructure
Financial Services Limited
(TNUIFSL), CMA, ULBs
• Implementing energy
efficiency projects in 29
municipalities in water
pumping and street lighting
• 2 Energy Service Companies
implementing the project Estimated Cost savings
US $ 800,000/year
 Bid Evaluation Process:
 EOI – 13 Responses
 RFP issued to 8
 Responses to RFP - 6
 LOI issued to 2 ESCOs
 IGA reports in discussion
 EPC between ULBs and ESCOs
will be signed soon

(EEC) Project
Thank you!
www.ase.org
afilippov@ase.org
(EEC) Project

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