energy efficient cities initiative: promoting energy...

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Energy Efficient Cities Initiative:Energy Efficient Cities Initiative:Promoting Energy EfficiencyPromoting Energy Efficiency

5th Urban Research Symposium

M ill FMarseille, France

June 28-30, 2009

EFFICIENT LIGHTING MARKET EFFICIENT LIGHTING MARKET TRANSFORMATIONTRANSFORMATION–– THE PHILIPPINE EXPERIENCETHE PHILIPPINE EXPERIENCE

NOEL N. VERDOTE

DEPARTMENT OF ENERGY-PHILIPPINE EFFICIENT LIGHTING MARKET TRANSFORMATION PROJECT

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OutlineOutline

Objective

M k ti A hMarketing Approach

Key challenges and barriers

Achievements

Market mechanisms

Recommendations / Conclusions

Objective (Purpose of PELMATP)Objective (Purpose of PELMATP)

Remove barriers to widespread use of energywidespread use of energy efficient lighting systems* (EELs)

* Energy efficientlighting systems

low-loss electromagnetic & electronic ballasts lighting fixtures

linear fluorescent lamps (slim tubes)

compactfluorescentlamps (CFLs)

high intensitydischarge lamps (HIDs)

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Marketing Approach

COMPONENTS

1. EEL policies, standards

STRATEGIES

p ,enhancement program

2. EEL applications institutional & capacity development program

3. EEL applications consumer awareness improvement program

STRUCTURAL

TECHNOLOGICAL

BEHAVIORAL program

4. EEL initiatives financing assistance program

5. EEL systems waste management assistance program

BEHAVIORAL

Sub supplier

Manufacturer

Supply SideSupply Side

BPS, LATLMonitoring, Testing

Wholesaler

Retailer

Market Structurewith PELMAT

Institutional

POLICIES, STANDARDS, GUIDELINESINSTITUTIONAL & TECHNICAL CAPACITY BUILDING

CONSUMER EMPOWERMENTFINANCING Contractor

House/Building/

RetailerUtilities/Coops

InstitutionalBuyers

OtherHouseholds

Microcreditors

Customers/Streetlighting

Gov’t BldgsIndustrial/Commercial

User

Demand SideDemand Side

gFacilityOwner

Service Company

Equipment TransactionParticipant Influant

Relation New MarketSegment

Old MarketSegment

New DistributionChannels

Old DistributionChannels

Lamp WasteManagement

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Key Challenges and Barriers

Project management office (PMO) creation and staffingProgram design flexibility (ProDoc)Program design flexibility (ProDoc)Procurement of services and equipmentEngaging stakeholders (both at supply- and demand-side)Change in leadership (leveling off expectations, etc.)Implementation delays (standards, guidelines, policies, etc.)etc.)Monitoring and verificationScaling up (uptake), replicationSustainability

Philippine National Standards (PNS)Administrative Order No. 183Guidelines for Energy Conserving Design of BuildingsR d Li hti G id li

Achievements

Roadway Lighting GuidelinesConsumer Protection Guidelines (Lamp Warranty; Eco-labelling)Improved Lighting Testing LaboratoryCapability Strengthening (Personnel Training)EEL Systems Training Modules for ProfessionalsIllumination Engineering Design in Electrical Engineering Curricula (effective SY 2008-2009)EEL Savings and Design Tool (EEL Calculator for R, C, and I)EEL Savings and Design Tool (EEL Calculator for R, C, and I) “Palit-Ilaw Program” (switch to the use of efficient lighting)Financing Mechanisms (models on microfinancing; leasing; EPC)Policy Study on Lamp Waste ManagementPartnerships with other government agencies, associations, professional organizations, property management companies, academe, LGUs, etc.

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Market Mechanisms

Standards, including MEPS

Policies guidelinesPolicies, guidelines

Testing and certification by DTI-BPS, DOE

Lighting product monitoring

Capacity strengthening

Partnerships, voluntary agreements

Financing (models for micro-financing, leasing, EPC)Financing (models for micro financing, leasing, EPC)

Incentives for manufacturers

Consumer empowerment (IECs, pilot projects for demo and PR)

Conclusions / Recommendations

Policy directions at the national level should cascade and be enacted at the local level (cities, municipalities)Government “walking-the-walk” and “talking-the-talk” andGovernment walking the walk and talking the talk and with top leadership as the champion make the exercise credible and generate broader support Supply- and demand-side players need to be engaged, and partnerships, both formal and informal, and from across sectors, forged to ensure success of the exerciseIEC is crucial in empowering consumersEnd-use efficiency, particularly the swift to the use of efficient lighting, when articulated to be part of local solution to energy security and climate change becomes a readily acceptable “win-win” business proposition“Power of the increment” and “good example” should not be downplayed

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Disclaimer / Acknowledgement

The ideas, findings, interpretations and conclusion here do not necessarily reflect that of the Department of Energy, UNDP/GEF, World Bank’s ESMAP the 5th Urban Research SymposiumWorld Bank’s ESMAP, the 5th Urban Research Symposium Secretariat, and all remaining errors are the responsibility of the author.

The author is grateful to ESMAP of the World Bank and the French Ministry for Sustainable Development for sponsoring the presentation of this paper to the Symposium. Also, the author is indebted to the Department of Energy, particularly the PELMATP P j t M t Offi ffi i l d t ff UNDP C t OffiProject Management Office officials and staff, UNDP Country Office officials and staff, Makati City government and other project stakeholders for their valuable assistance during the preparation of this paper.

Backup Slides: City Application

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PhilippinesPhilippines

City Application

Makati City

One of the 17 local government units of Metropolitan Manila

339 years as a political entity

recognized as a community in 1670;

Converted from a

National Capital RegionNational Capital Region

Converted from a municipality to a highly urbanized city in 1995

21.36km2

2 congressional districts (33 barangays or villages)

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City Application: Makati City

Population: 600,000 (night time); 3.7M (day time)

G th t 0 04%Growth rate: 0.04%

Density: 23,957 persons/km2


Business and financial capitalHome to most profitable and largest corporations– Home to most profitable and largest corporations

– 60,551 business establishments

– 56 embassies

– 34 consulates

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Electricity consumption reduction – a GHG emission reduction measureemission reduction measure

City lighting project– Installation of High Pressure Sodium Lamps (HPS), a

policy for streetlights since 1992

– Programmable lighting control

– Reduced operating hours in selected areas (1:00-Reduced operating hours in selected areas (1:006:00AM)

Light bulbs in government buildings replaced with energy efficient ones

Recognized by DOE-PELMATP for energy efficient citywide streetlighting program


efficient citywide streetlighting program– 2006 National Energy Month, 14Dec06

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Annual Savings in Streetlighting Electricity Consumption100% Operational vs Energy Saving Strategyp gy g gy

YearNo. ofLamp Posts

Annual SavingsMillion Pesos (€)

2006 2,629 5.6 (83,202)

2007 3,449 3.6 (53,487)

2008 4,289 5.3* (78,745)

*estimated

Mar. 26, 2007

PalitPalit--ilaw:ilaw: Old Makati City HallOld Makati City HallEnergy Savings: 11,850 kWh/yr

(= Php 85,600/yror € 1,270/yr)

Payback: 1.6 yrs

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June 26, 2007


“Palit-Ilaw Caravan” in 10 public markets in partnership with Philips Electronics and Lightingpartnership with Philips Electronics and Lighting– 1,105 pcs of CFL and 1,026 pcs T8 fluorescent lamps

– Annual Energy Savings: 350,660 kWh

– Prevented eCO2 emissions: 287,627 kgs

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Enactment of City Resolution

N 2008 056 (2M 2008)No. 2008-056 (2May2008)– 8:00 to 9:00 PM as “Makati Earth Hour” & further

encouraging the observance thereof by all residents/ households and owners/ managers of business establishments and/or buildings in Makati City in turning off at least one (1) light during the hour

d M h E h f h ff feveryday to ease Mother Earth from the effects of global warming

– Projected savings (119,270 households @ 20W): 2,385.4 kWh (1,417 kg of equivalent CO2 reduced)


Advocacy on the use of efficient lights with the private sectorprivate sector– Makati Central Business District in partnership with

Ayala Foundation, Inc., MACEA and BPI (financing through IFC)

– Support to private sector initiatives: Sunlife of Canada’s “Power Break Sessions”, i.e., promotion on th f ffi i t li ht t l iththe use of efficient lights to employees, with PELMATP and Philips

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Backup Slides: Achievements

Administrative Order # 183

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DOE (21Dec07)

DOE Sec. Angelo T. Reyes with UNDP Deputy Resident Representative Mr. Kyo Naka

Sec. Reyes withA h Ed R f dSec. Reyes with Mr. Naka Arch. Edgar Reformado(UAP-GAM President)

Sec. Reyes withMr. Vic Aquitania(ICLEIRegional Director)

Sec. Reyes withEngr. Raymond

A. Marquez(Former IIEE

National President)

Lighting Appliance Testing Laboratory

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PalitPalit--ilaw:ilaw: OspitalOspital

Energy Savings: 212,000 kWh/yr(= Php 1.76M/yr

or €26,149/yr)Payback: 8.6 mos

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Tripartite MOA Signing

“Effective Implementation of Energy Efficient Lighting System”Le Salon Ballroom, Hyatt Hotel, 15April08

Tripartite MOA Signing

“MOA for the Effective Implementation of Energy Efficient Lighting System”

Le Salon Ballroom, Hyatt Hotel, 15April08

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MOA Signing between

DOE and Association of City and Municipality Electrical Engineers and Electricians

Executive Lounge, EDC Bldg., Energy Center, Fort Bonifacio, Taguig City, 18 June 2009

IEC (C3)IEC (C3)

Info Kits / Leaflets(Print)

Component 3Component 3

(Print)

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