Meeting with CROSQ and Bureaux of Standards on Energy Efficiency Standards and Labeling

Joseph WilliamsProgramme Manager, EnergyHotel PomMarine, Barbados

27 May 2011

CARICOM Energy Programme

CARICOM ENERGY PROGRAMMEBackgroundTask Force on Energy & Draft CARICOM Energy Policy

recommended energy desk at CARICOM SecretariatSustainable Energy Issues have evolved to be

important for Member StatesIndigenous Resources for most MS; need to diversify;

reduce cost; enhance economic competitivenessClimate Change Agenda – energy sector is a focus; Also

opportunities to support developmentNeed for facilitation of energy sector coordinationResource mobilization to assist Member States

CARICOM ENERGY PROGRAMME GOAL

To increase regional energy security and advance the transformation of the Region towards a more sustainable energy developmental path (through the implementation of a regional energy policy and a regional sustainable energy strategy) and play a catalytic role in regional economic integration, economic competitiveness, economic growth and development.

OBJECTIVES Finalization and Implementation of CARICOM Energy PolicyEnergy Sector Coordination in the Community- focus on SEMobilize resources to support MS’ Energy Sector developmentDevelop and implement regional level energy sector

strategiesImplement regional level projects – focus on SE

KEY RESULTS AREAS - Finalization of Regional Energy Policy which will

form the basis of the integration of the energy sector of CARICOM

Increased number of energy policies and national energy plans implemented

Improved regulatory & legal framework to foster greater use of renewable energy and improvement in the energy efficiency (including increased incentives for RE use; increased investments in RE)

Development and implementation of a regional sustainable energy road map and strategy

Improved institutional capacity for planning and implementation of energy strategies

Increased Investment in RE and EE for greater contribution to the regional energy matrix

SOME ACTIVITIESCARICOM Policy – Finalize & ImplementSustainable roadmap and strategy C-SERMSFacilitate dialogue; advance targeted functional

cooperation on the issue of inter-island connection of electricity infrastructure.

Coordinate sustainable energy initiatives in CC Implement CREDP/GIZ Activities in collaboration with Projeckt Consult;

MOU between CARICOM and GIZ Implement CRECS Project Activities - CCS Implement Project Called: “Increasing sustainable Energy Awareness in

Public Sector” (ISEAPS) - CCS Caribbean Sustainable Energy Programme (C-SEP) - OAS Energy and Climate Partnership of Americas (ECPA) – US Govt/OAS Sustainable Energy Technical Assistance Project (SETA) –OECS CARICOM EE labeling Assessment & Capacity Strengthing

(CEELACS)

STATUS OF CC ENERGY POLICY

In February 2007 Draft CARICOM Energy Policy was submitted to the 18th Inter-Sessional Meeting of the Conference of Heads of Government by Task Force on energy.

Outstanding Pricing Study was completed over 2010Draft Policy was presented to COTED Energy March

2011CCS Mandated by COTED to revised Policy & to

update Heads in July 2011 (NB Targets to be set within C-SERMS Framework; Energy Week November 2011)

Senior Official Meeting to review policy held on May 20 2011

Follow up Meeting will be held June/JulyAimed to have finalized policy in February 2012 at Inter-

sessional Conference of Heads.

The Draft Energy Policy covers Petroleum Trade Standardization of

Specifications for Petroleum Products

Transportation of Petroleum and Petroleum Related Products; Optimization, storage, efficiency of transportation network

Optimize Use of Natural Gas: through regional projects, establishing Natural gas as a key energy resource in region

Renewable Energy Sources: to be promoted to reduce the dependence on fossil fuels,

Development of Hydro Power: to promote same

Power Generation: promote competition; use of alternate energy, cost reduction strategies

Transmission and Distribution of Electricity

Electricity Regulation Energy Conservation and

Efficiency Energy Investment Pricing Energy and Environment Human Resource Development Institutional Strengthening Research and Development Public Education and Outreach Energy and Poverty Alleviation

ENERGY CONSERVATION AND EFFICIENCY in DRAFT CARICOM ENERGY POLICY

Promote energy conservation & EESet, monitor & enforce targets.Promote EE measures through the introduction of

fiscal incentives. (Notable shortcoming is the promotion of incentives to proliferate the use of solar water heaters).

Mandate energy audits of residential and commercial buildings.

Develop capacity in national and regional agencies (electrical inspectors, Bureau of Standards, CARICOM Regional Organization for Standards and Quality - CROSQ).

Energy Policy in Member StatesAll have started to develop or have developed

national energy policies with sustainable energy focus

Four countries have approved energy policiesJamaica, St Vincent and Grenadines, St Lucia, Grenada

Guyana’s national energy policy is outdated (2004) however sustainable energy policies are articulated in the context of the Low Carbon Development Strategy.

Trinidad and Tobago and Suriname are pursuing development Renewable energy Policy

Haiti has articulated energy policy through strategy framework

Sustainable Energy Path

Maximize utilization of renewable energy sources

Minimize use of depletable sources (ie energy efficiency and conservation)

Varies for each country and will depend on resource endowment (100% to any %)

10

11

Renewable Energy Sources in CARICOM

12

What does a ‘Sustainable Energy Future look like?

Modern Policy, Legal and Regulatory Framework.

Institutions are adequately resources.

Efficiency in Use of Energy at all

Levels.

Adequate data and information management.

Efficiencies in transportation of

persons and goods.

Increased exploitation of

indigenous energy sources for electricity

generation.

Reduced carbon footprint.

Architectural design of

Buildings take account of energy

efficiency considerations.

National Fuel bill reduced and

savings utilised for infrastructural

development.

Electrical Appliances

properly labelled on efficiency

performance and easy to

understand.

Comprehensive knowledge of

renewable source potential.

13

Sustainable Energy Path Through CARICOM Energy Policy

Universal access to

sustainable and secure supplies of

energy

Transformation of energy sectors to enhance

sustainable development

Optimization of domestic

production of energy in an

environmentally sound manner

Relationship between

energy and international

competitiveness of regional

industries

13

Four pillars which underpin the regional policy

14

What is Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS)?

MANDATE: At the 20th Meeting of the Heads of Government of the Caribbean

Community held in Belize City, in March 2009, it was Agreed that: a regional sustainable energy roadmap should be developed and implemented to guide, encourage and expedite the increased use of renewable energy and energy efficiency, as a key climate change mitigation strategy.

WHAT IS C-SERMS: Is conceptualised as an updateable sustainable energy planning and

communication framework within which regional level Sustainable Energy targets and strategies will be articulated and pursued in CARICOM. Being developed by the CARICOM Energy Programme in collaboration with CARICOM Member States and other partners.

C-SERMS: Will define achievable short (2015), medium (2020), and long term targets (2025) on a Regional Level for renewable energy (RE) and energy efficiency (EE) contribution to the Regional energy mix based on resources available in the different Member States and based on regional level strategies.

C-SERMS Framework

2015

2025 2020

Define achievable short (2015), medium (2020), and long term targets (2025) on a Regional Level for renewable energy (RE) and energy efficiency (EE) contributions to the Regional energy mix based on resources available in the different Member States

• C-SERMS Represents fast-tracking of sustainable energy because of:– Consensus on

importance for energy security

– Climate change agenda

– Potential for economic competitiveness

– Opportunities

C-SERMS Framework

• Set regional goals and specific targets for contribution of RE & BE to the energy mix as well as EE improvements in a strategic and targeted manner.

• Define pathways to achieve the set targets.

• Form the basis for commitment on the part of each Member State towards a Regional sustainable energy path.

• Detail the finance and institutional capacity necessary for formulation of strategies and attainment of targets / goals.

• Provide a clear framework for focusing research, development and investment efforts in EE, RE and BE towards the achievement of the policy goals.

17

Framework for Developing C-SERMS

BASELININGBASELINING

•Map and assess existing sustainable energy initiatives in all Member States (including efficiencies and conservation in transportation, electricity and industrial sectors).

•Review sustainable energy policies, plans, regulatory framework and legislation.

•Conduct Gap analysis of policy, capacity, awareness/awareness, financing.

TOOLS DEVELOPMEN

T

TOOLS DEVELOPMEN

T

•Mechanism to support the development of the C-SERMS (possibly Platform comprised of multidisciplinary and multi-stakeholders)

•Regional Energy Balance Model for tracking progress, forecasting and monitoring the performance of the sector.

STRATEGIES AND

TARGETS

STRATEGIES AND

TARGETS

•Establish short, medium and long term targets for RE, EE and BE•Identify areas for necessary policy, regulatory and legislative reforms•Identify areas for improvement in information and awareness, financing

mechanism, R&D and innovation

CARICOM RE RESOURCES

“for Illustration not reflective of

actual”

EE 3%

2015TARGE

T

SOURCESExisting

support & GAPS

IN THIS CONTEXT ALL PROJECTS & INITIATIVES ARE MEANS TO SPECIFIC ENDS

20

Benefits of C-SERMS

Set regional goals and specific targets for contribution of RE & BE to the energy mix as well as EE improvements in a strategic and targeted manner.

Define pathways to achieve the set targets. Form the basis for commitment on the part of each

Member State towards a Regional sustainable energy path.

Detail the finance and institutional capacity necessary for formulation of strategies and attainment of targets / goals.

Provide a clear framework for focusing research, development and investment efforts in EE, RE and BE towards the achievement of the policy goals.

Benefits of Baselining

Will provide data that can be utilised to define a Regional Energy Investment Strategy.

Can produce a pipeline of projects for CDM financing. Show opportunities that Governments could leverage and

weaknesses that could be minimized through appropriate actions.

Will provide Governments with proprietary ownership over resource assessment information which could be used strategically.

Gaps identified will allow Governments and Developmental Partners to develop programmes / projects that address a particular need.

Create opportunities for small business development e.g. ESCOs and equipment suppliers.

Timelines and Proposed Achievements

PHASE 1• Existing initiatives and Projects Mapped• Policies, Plans and Regulatory and Legislative

Framework reviewed to determine gaps• Capacity, Information / Awareness, Financing

assessed to determine areas for strengthening • Platform designed and Operationalised (subject to

approval of Member States)• Energy Modeling Framework and Data Requirements

Assessed.• First Level C-SERMS Developed with preliminary

targets

PHASE 2•Wide scale RE and EE assessments

conducted•Detailed gap analysis conducted•Energy Balance Model and Framework

Implemented•Second Level C-SERMS Developed with

Comprehensive strategies and Actions and more concrete targets

2011

2012 onwards

IDB Grant Fund of US $400,000

Government of the Federal Republic of

Germany has committed €4.5 M for the period

2011 - 2014

Energy Efficiency in C-SERMSEnergy Planning Model/FrameworkRegulatory, Legislative FrameworkInstitutional FrameworkIndicators – Benchmark and BaselineElectricity – Gen, Trans, DistributionBuilding, Industry, Transportation

StandardsEnergy ManagementFuel Efficiency Energy Efficiency CodeAppliance Labelling

Energy Efficiency Standards

and Labeling

Improving energy efficiency in the residential- and commercial-buildings sectors not only saves money and reduces pollution but also improves the indoor environment of homes and the productivity in commercial buildings. Energy-efficiency labels and standards for appliances, equipment, and lighting offer a huge opportunity to improve energy efficiency and are especially effective as an energy policy. - Collaborative Labeling and Appliance Standards Program (CLASP)

Energy LabelsInformation affixed to manufactured products to

describe the product’s energy performance (usually in the form of energy use, efficiency, or energy cost); these labels give consumers the data necessary to make informed purchases.

Types of labels:endorsement labels andcomparative labels.

Endorsement labels are essentially “seals of approval” given according to specified criteria.

Comparative labels allow consumers to compare performance among similar products.

ENDORSEMENT LABELS

COMPARISON LABELS

Energy LabelsStand alone or complement energy standards. In addition to giving information, labels also

provide a common energy-efficiency benchmark that makes it easier for utility companies and government energy-conservation agencies to offer consumers incentives to buy energy-efficient products.

The effectiveness of energy labels is heavily dependent on how they present information to the consumer and on how they are supported by information campaigns, financial incentives, and other related programs.

Energy-efficiency Standards

Procedures and regulations that prescribe the energy performance of manufactured products, sometimes prohibiting the sale of products that are less efficient than a minimum level (3 types of EE standards: prescriptive standards, minimum energy performance standards (MEPS) & class-average standards)

protocols (or laboratory test procedures) – provides a sufficiently accurate estimate of the energy performance of a product -as typically used, or at least a relative ranking

target limits on energy performance (usually maximum use or minimum efficiency)

“Norm” is sometimes used instead of standard.�

ISSUES

Mandatory vs. Voluntary ProgrammesIndividual Products vs. Product Class

Adopting International ProgrammesFrequency issue

Steps in Developing EE Labels and Standards Programs

STEPS IN DEVELOPING EE LABELING PROGRAM

Decision to pursue EE labeling or standards-setting program is complex and difficult. Process should include:

■ assessing how local cultural, institutional, and political factors are likely to influence the adoption and effectiveness of the program

■ establishing strong and clear political legitimacy for standards

■ deciding how much to rely on existing test facilities, test procedures, label design, and international standard

■ assessing the data needs of the program and the capability of the government to acquire and manage the data

■ screening and selecting which types of products are the highest priorities

Major steps in deciding how to implement

Basic Elements

Assessing the Capacity to Develop and Implement a ProgramAppropriate constitutional, legislative, and

administrative authority must exist or be established, for conducting each of the steps of the standards-setting process.

Assessing Data Needs & Screening/SelectingProducts

Before deciding to implement energy standards in a country, it is important to estimate the potential impact of the standards by quantifying their predicted environmental and monetary benefits.

Basic ElementsAssessment of the technical potential of labels and

standards will be based on data collected on the use of consumer products that describe:

■ current levels and forecasted trends for efficiency of products in the marketplace

■ specific new technology that has recently or will soon become available in the marketplace

■ existence and characteristics of domestically manufactured products

■ existence and characteristics of imported products

■ existence and levels of standards in other countries This assessment will usually involve collecting and interpreting

new local data. This process and the evaluation of how much of the technical potential can be

achieved and how much it will cost

Energy Efficiency Building codeNational

VoluntaryMandatory

Regional

PROPOSAL – MEXICAN GOVTEnergy Sector Assessment And

Capacity Building For A Regional Energy Efficiency Appliance Labelling Programme

In context of C-SERMSBaseline ans Targets

EXPECTED OUTPUTS

 The potential of energy efficiency labelling of appliances used in residential and small business facilities to provide energy saving in five selected Caribbean countries assessed, and recommendations for appropriate approaches to actualising the potential documented. The CARICOM Member States targeted are Guyana, Suriname, Jamaica, Belize, and Trinidad and Tobago.

 

EXPECTED OUTPUTS

A model Regional energy efficiency appliance labelling programme which can be applied across Member States developed;

 Energy efficiency appliance labelling programmes for selected CARICOM Member States: Guyana, Suriname, Jamaica, Belize, Trinidad & Tobago developed;

 Technical Officers from Energy Ministries and

other related agencies trained in the implementation of the appliance labelling programme; and