olade, palcee - latin american and caribbean energy efficiency program, july 2013

8/13/2019 OLADE, Palcee - Latin American and Caribbean Energy Efficiency Program, July 2013

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Latin American and the CaribbeanEnergy Efficiency Program

PALCEE


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THE SUSTAINABILITY OFENERGY EFFICIENCY:

LATIN AMERICA AND THE CARIBBEANENERGY EFFICIENCY PROGRAM

PALCEE

JULY, 2013


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JAMAICA

This document was publishedin the administration of::

Victorio Oxilia DavalosExecutive Secretary of OLADE

Nestor Luna GonzalezDirector of Studies and Projects

Erika GarciaEnergy Efficiency Specialist

The authors of the present document are:Mentor Poveda, MSEE - OLADE Consultant;and, Erika Garcia - OLADE

The utilization of the information contained

in this document is authorized to use with thecondition of citing the source.


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THE SUSTAINABILITYOF ENERGY EFFICIENCY:

PALCEE PROJECT

Executive Summary

With the financial support of the Austrian Development Cooperation (ADA, German),OLADE carried out the PALCEE Project (Latin American and The Caribbean EnergyEfficiency Program), which has the primary objective of strengthening the institutionalframework for the development of energy efficiency, and gathering and organizing the

efforts that various institutions make in a specific country. Its goal is to incorporateenergy efficiency in national plans and convert the programs into long-term efforts,providing them sustainability that has been absent from the efforts made by the major-ity of Latin American and The Caribbean countries.

The project has thoroughly and successfully completed all the planned objectives.The four participating countries (El Salvador, Grenada, Jamaica, and Nicaragua) haveimplemented project recommendations, completing the objective of strengthen theenergy efficiency institutional framework in each one of them, thanks in large part tothe political commitment of the sectors national authorities in all countries directlybenefiting from the project.

In those cases where the same institutional framework of the energy sector is weak,completion of this projects objectives contributed to its strengthening in benefit ofthe entire energy sector. This is made possible by the receptiveness to efficiency fromauthorities and other important actors of the society.

With that base, the project has confirmed one of the primary hypotheses laid out

during its design: international institutions of cooperation must consider that, beyondconcrete projects of energy efficiency, its necessary to support the strengthening of

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the energy efficiency institutional framework in the beneficiary countries, as a meansto achieve indispensable sustainability for the programs being implemented.

Another achievement of the project was allowing the programs of energy efficiency

in under implementation, some of them with international financing and cooperation,to obtain the required coordination with coherent guidelines and a long-term vision,through the institution responsible for energy efficiency as the most appropriate tocomplete this task.

On top of that, implementing the selected recommendations derived from energy au-dits, through demonstrative projects, permitted to present concrete results, beyond thesaving potentials that are results of the audits.

The incorporation of the participants in the theoretical training of energy audits, andin the implementation of recommended measures, permitted achieving a theoretical -practical training that produced strong lessons in each one of them.

In summary, the project has contributed to the creation of favorable institutional con-ditions to generate and implement national programs of energy efficiency, followinga criterion of sustainability, with the possibility of promoting an internal process offeedback and continued improvement of the programs.

The institutional oriented proposals have been implemented and have achieved astrong commitment from diverse local actors, placing the national energy authorityin the center of that consensus or institutional agreement. It has fortified the capaci-ties of the institutions through the training of officials responsible for national pro-grams. Furthermore, undertaking energy audits and the implementation of their rec-ommendations allowed the training of local professionals, providing also training inthe coordination of these demonstrative projects from the responsible institution. Theresponsibility of the new national institutions and OLADE will be sharing successfulexperiences with other countries in the region.

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Contenido

Exxecutive Summary iii1. Introduction 12. State of Energy Efficiency in Latin Anerica and the Caribbean 33. Commitment and Role of Olade 64. The PALCEE project 8

Precursos 8

Objectives 9Organization 10Method of Cooperation 11

Participating Countries 12

El Salvador 13Description of the Country 13

Description of the Energy Sector 13Institutionalism of the Energy Sector 14

Grenada 16Description of the Country 16Description of the Energy Sector 16Institutionalism of the Energy Sector 18

Jamaica 20Description of the Country 20Description of the Energy Sector 20Institutionalism of the Energy Sector 22

Nicaragua 23Description of the Country 23Description of the Energy Sector 23Institutionalism of the Energy Sector 25

Proposal of the institutional framework in the participating cuntries. 27

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El Salvador 27Grenada 29Jamaica 32Nicaragua 34

5. Results achieved 38Training of personnel from the institutions responsiblefor energy efficiency 39Results by Country 41El Salvador 41Grenada 46Jamaica 49Nicaragua 51

6. Lessons Learned 55

Bibliography 57

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1. Introduction

he incorporation of energy efficiency means maintaining the same servicewith better standards of quality and security in the energy supply. This im-plies reducing the losses produced during the entire transformation or pro-cess, through the implementation of better technologies; promoting, at the

same time, better energy usage habits, with the goal of supporting and making tech-nological changes possible.

This means the effort consists of going above and beyond, not only maintaining al-ready present energy services, but doubling the benefits with half the consumption,

as shown in multiple examples in the publication, Factor 4 (Weizscker, Lovins, &Lovins, 1997).

When dealing with energy efficiency, two large groups of efforts stand out, directedat the supply side (SSM Supply-Side Management) and at the demand-side (DSM Demand-Side Management).

Traditionally, the demand side represents an enormous challenge to the energy sector.It requires more detailed work as the answer depends on the decision of hundreds of

thousands of users, and not on a few companies, as is the case of supply efficiency.

Energy conservation, which is the primary principal of efficiency policies from thedemand-side, has grown in application for various years in Europe, North America,Japan, and various developing countries, with new efficient technologies.

It is necessary to mention that the incorporation of technology implicates the ne-cessity to make investments to achieve greater levels of efficiency; fortunately, those

investments are profitable. From there, the importance of energy efficiency as its in-corporation, in addition to generating economic benefits, assists in the reduction ofglobal warming, because the less energy used, the less production of contaminantsoriginating from the energy sector.

The profitability of implementing energy efficiency programs will be greater as theprices of energy increase. From there the importance to consider real prices so thatclients decide to incorporate efficient equipment in their installations and to maintainprograms of energy conservation.

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Energy efficiencys contribution to the reduction of energy supply makes it conside-

red a resource. This new source, with important advantages regarding the traditional

supply methods as it is more economical to introduce, is available in every country

as a local resource. It contributes to the reduction of greenhouse gasses and has an

additional advantage of influencing equality.

Latin America, at the moment, has a high share of renewable resources, given that 25%of the supply comes from those resources; therefore, the task facing the region is thestrengthening of energy efficiency.


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2. State of Energy Efficiency in Latin America and the Caribbean

o obtain satisfactory results in the application of energy efficiency in a coun-try, sustained and continuous work is necessary so that the achievementsobtained increase and allow continue production of results.

The implementation of an energy efficiency program resembles a steps structure,meaning the second step supports itself on the bases established by the first step, suc-cessively continuing so. For this reason, it is indispensable to ensure that the resultsof the first program are permanent, so that its achievements do not disappear whenbeginning successive programs; whereas, in contrast, the programs that come after

produce added benefits to those prior, fortifying the results.

In Latin America and the Caribbean, the efforts toward energy efficiency have been, in

large part, situational and reactive. They have been stimulated by the supply crisis thatperiodically used to appear in our countries. This would not be a problem if they wouldmaintain the efforts after the emergency passed; unfortunately, they are not sustainedand, on the contrary, they lose importance, being relegated to a secondary priority.

What is more, the international organizations of cooperation have propelled innumerable

projects with positive results and have not managed to have a follow up after finishingthe technical and financial assistance. Furthermore, it produces the effect of differentinstitutions working on various isolated aspects, without coherence or coordination.

One of the key aspects not addressed in the proper dimension in the sector is institu-tional framework as an imperious necessity to provide indispensable sustainability toall of the projects and initiatives of energy efficiency. This occurs because all actorsare urged to provide results as a contribution to mitigate climate change; however, inthe case of energy efficiency, only the permanent results allow energy efficiency tobe considered as a resource.

In Latin America and the Caribbean, and in each sub-region, Fig. 2.1, the evolution ofenergy intensity shows downward tendencies in the twenty years in which the worldhas worked to improve energy efficiency.

Mexicos results, in the regional context, stick out as having a low value in 1990; no-netheless, it has an even lower value in 2011. That drop, for its relative size, influencesthe entire region.

However, it is clear that the declination of energy intensity, in general, is not from

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specific efforts, but from the importation of higher efficiency equipment as a result ofregulations and rules in industrialized countries from where the majority of electricalappliances in the region originate.

Source: Energy Economic Information System (SIEE) of OLADE.

Figure 2.1. Energy intensity by sub-region

The case of Mexico is especially interesting for the presence of a decentralizedbody, operating since 1989, with the institutional responsibility of developing ener-gy efficiency. The National Commission for the Efficient Use of Energy (CONUEE),created on the basis of the National Commission for Energy Savings (CONAE), hasbeen an important factor in the results observed in Mexico (Limaye, Heffner, &Sarkar, 2008).

What happens in Mexico confirms the importance of energy efficiency agencies inEurope, where the majority of countries maintain a specialized office for the topic,being the region with the greatest commitment and with the best results. This,furthermore, supports the commitment that the European Union has establishedfor year 2020 to have energy efficiency with 20% of the primary energy it needsfor its supply.

It is also worth pointing out that the autonomy of energy efficiency agencies isespecially interesting in the countries of the region; similar to what the Mexicanexperience shows, where the CONUEE, despite being a dependent of the Secre-tariat of Energy, exhibits an image of independence to the public that allows it to


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release recommendations with structured lines, that are admitted because of theirtechnical nature.

The importance of institutionalism in energy efficiency has also been highlighted

by the International Energy Agency (IEA), when it published a manual of gover-nance (International Energy Agency, 2010), based on previous studies, among

which it highlighted that of the World Bank, published in 2008 (Limaye, Heffner,& Sarkar, 2008).


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3. Commitment and Role of OLADE

he Lima Agreement, as an international judiciary instrument and constitutiveof OLADE, establishes, among the organizations other objectives, the conser-vation of natural resources of its Member Countries. In compliance with thisobjective, it has put emphasis on the development of energy efficiency in all

of Latin America and the Caribbean.

Given that OLADE is intergovernmental and, furthermore, its relations with MemberCountries is through the Ministries of Energy, exactly where energy efficiency institu-tion should be supported, it places the Organization in a suitable position to contribu-te to the topic, as its contribution toward greater sustainability of the national energy

efficiency programs that are developing in Latin America and the Caribbean.

Before sectorial reforms, the region had incipient energy efficiency development; inthis aspect, the opening of electrical energy markets and the vertical disintegration,with the evidence of disaggregated costs in an international framework that seeksgreater commitments to the environment on the global, regional, and national scale,have brought negative and positive consequences, as explained later.

The incorporation of private utilities in generation has lead to a natural interest inimproving the efficiency of energy production; furthermore, with the reforms, thesubsidies to end users were identified in a more precise way and, in some cases, theytended to disappear or were implemented in a direct and enclosed way. Additionally,the increase of capital and operational costs in the entire chain of the energy industry(more efficient equipment but with a greater initial investment, more expensive fossilfuels, production processes that incorporate or internalize environmental costs) presscosts and, therefore, the remuneration for the compensation of services. With it, thetariff adjustments, in some cases, have contributed to consumers having correct priceindicators to interest and motivate them toward the implementation of energy efficien-cy, a necessary although insufficient indicator.

At the same time, state owned utilities have a close reference of the needs and pricesestablished by natural profitability that private companies require, for which condi-tions have also changed in these companies.

On the other hand, the sectors new structure is characterized by an increase in thenumber of actors that, as a result, disperses the responsibility of energy efficiencydevelopment, if it is not assumed by the state. Furthermore, efficiency shows clear

benefits for the vertically integrated companies; while in contrast, benefits are vaguefor the private producers and transmission companies. In particular, the efficiency

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improvement on the demand side capable of delaying new investments is a benefitfor the society and not for the individual producer.

Distribution companies that changed ownership must strengthen their position, fa-

cing urgent problems for their share-holders: the improvement of revenue, reductionof technical and non-technical losses, among others, where the energy efficiency onthe demand-side had a very low priority for the companys plans, when there wassome interest in the topic.

Once the problems pointed out are overcome, the time has arrived to put greaterattention on distribution systems, a sector that, for the magnitude of losses, needsenergy efficiency to be included.

In other words, development of energy efficiency in the region was affected andonly subsisted in a few countries that had solid institutions responsible of the exe-cution of energy efficiency programs. (OLADE: Poveda, Mentor, 2007).

In the context described and with the motivations explained appears the LatinAmerica and the Caribbean Energy Efficiency Program, PALCEE of OLADE, whoseprimary objective is to strengthen the energy efficiency institutional framework asa way to bestow sustainability to national programs.

The task of finding the financing for a program of this nature turned out to bedifficult, due to the urgency of international cooperation to produce results thatjustify to their donors the investments that they make and, also, due to the implicitdifficulties in facing the development of institutional framework.

Austrian Technical Cooperation understood that OLADE is the institution best pre-pared to meet this challenge and decided to finance the program in its first phase.


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4. The PALCEE Project

Precursors

The economic development of Latin America and the Caribbean countries requiresthe contribution of energy as a major factor to promote it. This is how energy demandincreases with elevated rates that obligate dedicating a very important portion of natio-nal economic resources to the infrastructure projects the sector needs. The dependen-ce on petroleum, in an environment of increasing prices, obligates dedicating steadilyhigher percentages of the national budget to the importation of fuels.

An important contribution that Latin America and the Caribbean can make towardmitigating climate change is through the introduction of clean energy to the energysector. Among the resources the region possesses, hydroelectricity stands out as a re-newable energy, despite that it has been exploited only 22% of the existing potential.The incorporation of energy efficiency must have the same importance; however, untilnow this has been an occasional resource as they only remember it when there is anemergency, to the extent that it has not had a real influence on energy demand.

Additionally, energy efficiency influences equality, reducing the receipt of energy byan important percentage in poor communities more than anywhere.

In Latin America and the Caribbean, institutions have worried too much about theurgency of reducing emissions and have incentivized efforts oriented solely at theintroduction of energy efficiency measures, with little interest in the necessary sustai-nability of the programs. Sustainability requires institutionalizing energy efficiency inthe counties, as only the long-term efforts can maintain the reduced levels of energyconsumption, in order to turn efficiency into a resource, taken into account in energyplanning, and utilized in the energy supply.

The key objective is achieving sustainability in national programs of energy efficien-

cy through the development of institutional framework specific to each one of thecountries where they propose to develop the Latin America and the Caribbean EnergyEfficiency Program (PALCEE). It involves introducing an institutional framework thatallows converting reactive, conjectural, short-term efforts into long-term activities, as isrequired by a solid energy efficiency development.

None of the institutions of cooperation, or technical or multilateral assistance that workin the region are facing this problem, since it is difficult aspect to handle. However,we believe that OLADE, given its intergovernmental nature and its work environmentwith the Ministries of Energy, has the elements to face this challenge.

The efforts made by institutions give attention to a single final use, or one them in


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particular; none is oriented to coordinate and give coherence to individual programs.The project does not interfere with any of the programs in execution; on the contrary,it seeks to give support to all of the isolated efforts that diverse agencies and institu-tions undertake, providing the institutional framework that establishes general regu-lations and national rules, coordinates a comprehensive national program, generates

the continuation of savings and increases them, with a foundation of continued effortsover the long term.

Only through a sustained program of energy efficiency will it be possible to reduce theenergy bills of families that, for the poorest sectors, represent a substantial amount oftheir income and, at the same time, free part of the financial resources that countriesdedicate to energy infrastructure so that they can raise the coverage of service.

Objectives

With the valuable financial support of the Austrian Development Cooperation (ADA),was implemented the PALCEE project (Latin America and the Caribbean Energy Effi-ciency Program). The projects primary objective is to reinforce the institutional fra-mework in some countries in the region, in order to develop energy efficiency, grou-ping and organizing the activities that various institutions undertake, with the goal ofincorporating them into national plans and converting them into long-term activities,

providing them sustainability that has been absent in the efforts carried out by themajority of Latin America and the Caribbean countries.

The strengthening of energy efficiency institutional framework includes the institutionin charge of orienting and directing energy efficiency programs at the national level,with its structure and organization; as well as the laws and regulations that permit es-tablishing national plans, from their conception through the evaluation of their results.

The program included, in its first stage, two Central American countries, El Salvadorand Nicaragua, and two from the Caribbean, Jamaica and Grenada, obtaining thebolstering of the responsible institution in charge of orienting and directing energy

efficiency programs at the national level, with the goal of achieving savings from sus-tainable energy, so that investment needs in the energy sector would be postponed,improving the countrys finances and reducing the emissions of CO2.

In addition, they organized activities that motivate the efforts of the institution respon-sible for energy efficiency in the country and, at the same time training the professio-nals in charge of administering the institution responsible for energy efficiency, as wellas those tasked with implementing the efforts that the programs integrate.


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Organization

The strategy to provide sustainability to energy efficiency efforts in the member coun-

tries, through PALCEE, include efforts that would produce results of emissions and energyconsumption reductions, but above all, they will serve as an effective means for practicaltraining of professionals in charge of administrating the programs and for implementationof concrete actions in the consumption sector, in each one of the countries.

There are three focal groups of activities that, together, will permit the development ofsufficiently strong national programs

Strengthening the institutional framework that supports efciency in the coun-tries, with the goal of achieving sustainability needed to establish the pro-

grams, so that the impact of the measures produces significant results.

The training of professionals that will form part of the institution responsible forenergy efficiency in the country and of those tasked with carrying out specific,planned efforts in each one of the programs, for which they need the trainingin program management as well as in the implementation of measures.

Execution of the programs that will form part of the activities of the institutionresponsible for energy efficiency, in diverse areas, for the practical trainingof local professionals in program management and in the implementation ofmeasures; furthermore, they allow the actors to verify the benefits of imple-mentation of energy efficiency and serve as an example of how to undertakethem, from the technological as well as financial point of views.

Organization of the project is illustrated in Fig. 4.1, in order to show the relations bet-ween the diverse activities carried out.

Figure 4.1. Relations between project activities


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Method of Cooperation

The project has been spread in the entire region through presentations from OLADE

officials, awakening interest on behalf of the countries that lack energy efficiencyinstitutions. By incorporating PALCEE as a national program, it has developed a me-thodology of implementation.

Commitment from the authorities.- the authorities in charge of the countrysenergy sector must commit human resources designated to the implementa-tion of PALCEE and the monitoring of the efforts undertaken.

Diagnostic and proposals.- it will carry out an analysis of the countrys energysector in order to generate a preliminary proposal of the institutional fra-

mework for energy efficiency.

National workshop.- it will generate discussion among all actors of the energysector in order to present a preliminary proposal; once discussed, it will gene-rate a final proposal that will be agreed upon among the authorities and thestakeholders.

Training.- it will provide knowledge, through internships in member countriesof OLADE with necessary experience of these topics, in the administrati-ve management of national programs of energy efficiency for the professio-nal personnel in charge of the project. Additionally, it will provide technicalknowledge for the implementation of energy efficiency measures to professio-nals that work in the consumption sector of the country.

Demonstrative projects.- they will implement tangible projects that show theeconomic, environmental, and social benefits of expanded efforts of energyefficiency in the countrys consumption sectors, taking advantage of them forthe practical training of professionals interested in the implementation.

Evaluations.- they will carry out technical evaluations of the demonstrativeprojects to corroborate the sustainable benefits generated in the application of

energy efficiency, in all the countrys consumption sectors.


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Participating Countries

he first phase of PALCEE developed with thefinancial support of the Austrian Development

Agency (ADA). It includes four member coun-tries of OLADE, two from Central America, El

Salvador and Nicaragua, and two from the Caribbean,Grenada and Jamaica.

The selection of these took place on the basis of exis-ting information in OLADE, establishing a classificationregarding the advancement of energy efficiency in mem-ber countries, utilizing the following parameters: existence

of a specialized institution, of a specific law, of projectsunder implementation, of energy service companies (ES-COs), of financing of efficiency efforts, and of a market ofefficient appliances and labeling.

The information presented for each one of the countriesparticipating in the project came from the Energy Econo-mic Information System of OLADE, corresponding to theyear 2012, unless another date is specifically shown.

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NICARAGUA

JAMAICA


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El Salvador

Description of the country

This Member Country of OLADE is the smallest and most densely populated in CentralAmerica, with 20,742 km2 and approximately 6 million 254 thousand inhabitants. It isthe only Central American country that does not have coast on the Caribbean Sea; itshares the Fonseca Golf with Nicaragua and Honduras, a country with which it bor-ders to the north and east, while to the west it borders Guatemala.

Its economy is based on agriculture export products (coffee, cotton, corn, sugar cane),where coffee represents 50% of its exports, even though industrial production (food,textiles, clothing, chemicals) has expanded in the previous years. The GDP per capitais 3,040 USD.

Description of the energy sector

El Salvador has primary energy coming from hydrology, geothermal resources, vegetableresidues (firewood and sugar-cane bagasse), and petroleum imports.

In 2012, the share of energy in the national supply requires a portion of 30% petroleum,as detailed in Fig. 4.2.

Source: Energy Economic Information System, SIEE of OLADE.

Figure 4.2. Share of primary energy, 2012


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In El Salvador, the process of modernization, economic growth, the urbanization, de-mographic growth, and the steadily increasing access of population groups to publicservices, increased the consumption of electrical energy and petroleum derivatives.

The relation between the use of energy and the Gross Domestic Product (GDP) shows

a strong correlation, which indicates the evolution of the economy, measured by GDP,is very similar to that of energy for the period, as shown in Fig. 4.3.

Source: Energy Policy of El Salvador 2010-2024, CNE.

Figure 4.3. Relation between energy use (kTOE, and the GDP of current prices (millions of USD)

El Salvador is a country with greatest geothermal energy production of Central Ame-rica. The total installed capacity, in 2011, was 1,477 MW, in accordance with the distri-bution shown in Table 4.1.

Source: SIGET 2011

The energy sector structure

In 1996, it completed a deep reform to the electricity sector, defined in the General


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Law of Electricity. The reasons to introduce these new rules that would regulate theactivities of production, transmission, distribution, and commercialization of electricalenergy are described in the provisions of said law.

National Energy Council (CNE, Spanish)

At the heart of the crisis of petroleum prices in the international market, in July of2005, was formed the National Emergency Committee to Address High Oil Prices,with the purpose of analyzing and promoting measures to minimize said impact. Thiscommittee, which included the participation of public and private sectors, promotedthe start-up of punctual efforts, among them, the establishment of staggered workschedules to reduce vehicle traffic, which is still active to date.

Less than a year after the creation of this committee, was recognized the necessity ofexpanding its scope of effort, in order to study the energy theme in all of its dimen-

sions. That is how, in July of 2006, the President of the Republic made the NationalEnergy Council (CNE) a permanent body as ad honorem representation, with the ob-jective of proposing, managing, and collaborate with other institutions to the definitionof energy strategies that contribute to the socio-economic development of the country,in harmony with the environment.

On August 30, 2007, the El Salvadorian Congress released legislative decree No. 404,concerning the Incorporation Act of the National Energy Council (CNE), sanctioned bythe President of the Republic on September 18 of that year. The CNE, presided overby the Director of the Ministry of Economy (MINEC), will be the highest, governing,and regulatory authority in matters of policy and strategy that promote efficient deve-

lopment of the energy sector.

The goal of the councils creation is the establishment of strategic policies that promoteefficient development of the energy sector, guaranteeing citizens the sale of essentialservices to the community, as well as incentivizing the good use and rational con-sumption of energy sources.

For that reason, the CNE will work to design the guidelines for integral developmentof the National Energy Policy. The objective of this effort is to develop a policy thatstrengthens the energy sector, trade, and investment, respecting free competition and

the environment, as well as to implement a policy that facilitates the development ofthe standard of living of Salvadorians and promoting the rational use of energy, opti-mization of infrastructure, increased rural electrical coverage, and regional integration.These are the general guidelines to develop in the National Energy Plan:

a. Analysis of the evolution of energy demand and its coverage over the long term.

b. To promote development of renewable energy sources.

c. To create programs of energy efficiency.


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d. Regional energy standardization.

e. Establishment of subsidy policies in the energy sector.

In this way, one of the primary objectives of the CNE is to promote the rational

use of energy and all efforts necessary to develop and expand renewable energyresources, taking into account policies of environmental protection, issued by thecompetent body.

Grenada


It forms part of the West Indies and is an island country with 344 km2, located in thefar south of the Lesser Antilles, 160 km north of the Venezuelan coast.

It is one of the OLADE Member Countries that form part of the English-speakingCaribbean. It has a population of 105 thousand inhabitants, with a GDP per capitaof 6,483 USD.

The primary economic activities are agriculture (nutmeg, banana, cacao, citrus, avoca-do, corn, and vegetables) and tourism, with a growing share of fishing and agroindus-try (food and beverage).

Tourism has received strong government support through the improvements of airport

facilities and the numerous visits from cruise ships through the Caribbean.


In Grenada, practically all electricity is generated by imported diesel. They use firewo-


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od primarily to cook in residential and rural zones. Solar energy is used for waterheaters in hospitals and residences. There is a wind energy installation that beganoperation in March of 2007, in a hotel complex, in the southeast part of the country.


FigurE 4.4. Total supply of energy

The energy intensity of Grenada in 2012 is 0.81 BOE / 103USD (2005) GDP, whichrepresents the quantity of energy consumed for each unit of GDP produced.

The final energy consumption per inhabitant was 4.62 BOE, a decrease of 2.53% com-pared to 2011.

The electricity consumption per capita in the year 2012, including all sectors, reached1,699 kWh/inhab. This decreased by 1.35% compared to 2011.

Energy intensity has remained without considerable net fluctuations since 1990, asshown in Fig. 4.5.


Figure 4.5. Evolution of energy intensity in Grenada


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The Ministry of Finance and Energy is in charge of all activities related to the energy

sector. The administrative head of the Ministry is the Permanent Secretary. The minis-try is divided into the following departments:

Administration

Account Generals Department

Inland Revenue Department

Department of Customs and Excise

Department of Economic Management and Planning

Statistics Department

Economic and Technical Cooperation

Department of Energy and Sustainable Development

Department of Cooperatives

The end goal of the National Energy Policy of Grenada (GNEP) is to ensure access andprovide affordable, equitable, reliable, clean and sustainable energy sources and ser-vices in order to encourage and secure national development and improve the qualityof life for all its citizens.

The National Energy Policy is based on six basic objectives.

Safeguard energy security

Achieve energy independence

Maximize energy efciency

Promote energy conservation

Achieve environmental sustainability through green energy and

Reduce the costs of energy to a minimum


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The government of Grenada put into action an energy conservation program of thepublic sector at the beginning of 2010 and has accumulated reference data regardingthe energy consumption at the ministry level.

The Labor Group for Energy Development establishes, as an objective, the reductionof energy consumption (electricity and transport) by 10% in the last trimester of 2012(with 2009 as a reference year).

According to the Labor Group for Energy Development, the government must increaseits capacity to implement the National Energy Policy (NEP)

One of the recommendations of Grenadas NEP is to transform the Energy Division

into the National Sustainable Energy Office, with a structure shown in Figure 4.6.

Figure 4.6. Desired structure for the Office of Sustainable Development


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Jamaica


It is one of the OLADE Member Countries of the English-speaking Caribbean, whoseeconomy depends on mining and tourism. Exports of bauxite and aluminum competewith revenues from tourism that exploits their beautiful beaches and local hotel facili-ties. The GDP per capita is 4,049 USD.

Jamaica being one of the primary producers of aluminum and bauxite, mining repre-sents hardly a tenth of the domestic product and accounts for a small fraction of em-ployment. They also produce glass containers, taking advantage of local quartz.

Manufacturing represents only a sixth of domestic product and less than a tenth ofnational employment, in order to produce processed foods (foods, beverages, and to-baccos), textiles, machinery, and metal products.


Jamaicas energy matrix is based on the importation of fossil fuels. This country cu-rrently consumes some 60,000 barrels of petroleum per day, 95% of which they import.

This strong dependence is one of the primary problems Jamaica faces with significantimpacts; it is vulnerable to the volatility of prices and other external factors. Due to thelack of national refining capacity, they import more than 50% of petroleum derivatives.


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Figure 4.7. Primary energy in the energy supply

Energy intensity in Jamaica reached 1.48 BOE / 103USD (2005) GDP, which representsthe quantity of energy consumed for each unit of gross domestic product produced.The final energy consumption per inhabitant was 8.35 BOE/inhab., an increase of2.68% compared to 2011.

The electricity consumption per capita in the year 2012, including all sectors, reached1,646 kWh/inhab. This indicator dropped by 12.11% compared to 2011.

The evolution of energy intensity shows a small reduction in the 20 years presentedin Fig 4.8.


Figure 4.8. Energy intensity in Jamaica


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The Ministry of Science, Technology, Energy, and Mining (MSTEM) has the mis-

sion of promoting the creation and application of policies, investigation, and deve-lopment in energy and mining sectors for a national, sustainable transformation.The MSTEM has recognized that paying for energy imports in the country can bereduced by a combination of energy efficiency practices and renewable energytechnologies.

The MSTEM has promoted these concepts through public education programs,including:

coordinating program discussions in education and community institu-tions;

spreading information in the media;

distributing pamphlets with advice on saving energy, and

Distributing a manual of energy savings.

Jamaicas Energy Policy has been developed since 1995 through different documents

and strategies, with themes related with energy conservation and energy efficiency.The MSTEM released, in October of 2010, a document titles: National Energy Conser-vation and Efficiency Policy 2010-2013. Securing Jamaicas Energy Future. The docu-ment aligned with the objectives of the National Energy Policy in energy conservationand energy efficiency.

The savings and efficiency of energy will play a fundamental role in addressing energysecurity, and the environmental and economic challenges that Jamaica faces.

The National Energy Conservation and Efficiency Policy establishes strategies andefforts that can result in increased efficiency of the energy sector in the production,transmission, and distribution of electrical energy, in the use of energy in the trans-portation sector, and in the consumption of electricity by industrial, commercial, andresidential consumers.

The document presents four objectives and includes key efforts and strategies:

Households and businesses aggressively and continuously adopt energy con-servation and efficiency practices towards reducing Jamaicas carbon footprint.

An enabling environment buttressed by dynamic legislation and regulations


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that facilitates the promotion of energy conservation and efficiency.

The Government of Jamaica is the leader in energy conservation and efcien-cy and sets the standard for all other sectors.

Jamaica has modern and efcient energy plants

Nicaragua


This Central American country has an area of 130,373 km2, with 6 million inhabitantssituated between Honduras to the north, and Costa Rica to the south; meanwhile, tothe east is the Caribbean Sea, and to the West is the Pacific Ocean.

The capital city, Managua, represents approximately fifty percent of the countrys po-pulation. Its economy fundamentally depends on agriculture as its industry is littledeveloped. Agriculture, fishing, and wood are the primary activities that occupy twofifths of the active population and produce a quarter of the gross domestic product. Ithas a GDP per capita of 1,355 USD.


Nicaragua has primary energy from hydro resources, geothermal resources, vege-table residues (firewood and sugarcane bagasse), and petroleum imports.

Figure 4.9 shows the share of these resources in the year 2012.


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Figure 4.9. Share of primary energy in the supply

Energy intensity in Nicaragua reached 1.96 BOE / 103USD (2005) GDP, which re-presents the quantity of energy consumed for each unit of gross domestic productproduced.

The final energy consumption per inhabitant was 2.65 BOE/inhab., suffering a decrea-

se of 3% compared to 2011.

The electricity consumption per capita in the year 2012, including all sectors, reached500 kWh/inhab. This indicator increased by 12.11% compared to 2011

Source: National Energy Balance 2011

Figure 4.10. Evolution of the energy intensity

The energy intensity shows a small reduction in the twenty years presented in Fig 4.10.


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The gross production of the national electricity sub-sector consisted of 65.9% thermalplants, 7.1% geothermal, 11.6% hydroelectricity, 9.9% self-producers, primarily throughplant waste (sugarcane husks), and 5.5% wind.

Source: National Energy Balance 2011.

Figure 4.11. Composition of electrical energy production

The Energy Sector Structure

In the year 2007, with Law No. 612, the institutional structure of the Nicaraguanenergy sector indicated the existence of institutions in charge of a.) the establish-ment of policies, strategies and standards; b.) regulations; c.) issuing licenses andconcessions; d.) the commercial administration of the wholesale market; e.) opera-tional programming and management of national and international interconnectedsystem operations, through the regional transmission network.

Legal regulations require the Ministry of Energy and Mines (MEM) to periodicallyreview, update and evaluate the strategic plan and public policies in the energysector, especially aspects of energy balance, supply, demand, energy conservation,price and subsidy policies of electricity services, service coverage policies in thecountry, supplying electricity to rural areas, and the policies, strategies, financingand investments of the energy sector.

The Ministry of Energy and Mines has defined their mission as the following:to elaborate, institute, manage and promote energy and mining policy in thecountry; supporting its development with the environmental criterions of viability

and sustainability. It also seeks to oversee and verify its compliance with currentlegislation, with the legal protection of all financial agents and with establishing


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strategies that allow for the comprehensive use of electricity generation resourcesfor the greater benefit of society.

With the aim of reaching the objective declared in reference to conservation and the

efficient use of energy as part of its Direction of Electricity and Renewable Resources,the Ministry of Energy and Mines, works with the Department of Energy Efficiencywho states its functions as the following:

Promote the establishment of standards that provide an incentive to introduceenergy efficient electrical equipment into the country, in order to contribute tothe nations policies on saving energy.

Implement training, educational and informational campaigns to promote the

labeling system of electric appliances and of equipment that allow the consu-mer to know the energy efficiency of the equipment.

Support the creation of private companies that specialize in energy efficiencyin order to promote the development of projects that encourage saving energy.

Propose incentives for establishing and creating private companies thatspecialize in energy efficiency services, including search tools to fund via-ble projects.

Through financial technical studies, establish an adequate and viable incentive

to encourage the importation of energy efficient electrical equipment.

Conduct activities geared around research, development, and on the moderni-zation and distribution of technology that are designed to make energy con-sumption more effective by selecting the processes, equipment, operative andmaintenance methods, and type of energy to be used.

Conduct the development of studies that aim to implement energy saving ac-tivities as well as create booklets, pamphlets and manuals with the objectiveof educating on and promoting energy savings.

Together with the Department of Energy Efficiency, of the Ministry of Energy andMines, energy coordinators as well as Energy Efficiency Committees in the ministries,decentralized entities, governmental agencies and other executive institutions havealso been established.


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Proposal of the institutional frameworkin the participating countries

Two expert consultants, one for Central America (Romero, 2012) and another for theCaribbean (Arjona, 2012) conducted the institutional framework proposals for energyefficiency. The proposals follow the PALCEE implementation method.

The general vision of the institutional framework proposals for each region, CentralAmerica and the Caribbean, were developed through an analysis of the institutionalstructure of each countrys energy sector.

For Central America the institutional framework for energy, already established throughspecific ministries or departments for different branches of energy, has a more inclu-sive and flexible structure allowing for the cohesion of different sectors and agentsinvolved in energy efficiency efforts. This cohesiveness leads to the establishment ofnational plans, which contribute to the efforts being made throughout the country.

In contrast, the institutional structures of the Caribbean are not well integrated in eachsector of energy. This has led to the establishment of smaller structures that unite allagents involved in the energy sector; boards are developed that lead discussions su-rrounding measures not just for energy efficiency, but also for the entire energy sector,thereby strengthening energy institutions.

The following are the institutional framework proposals for energy efficiency sugges-ted by the consultants, taking into consideration the individual traits of each country.

El Salvador

The proposal for El Salvador includes a three-phase plan for the next few years. Thefundamental objective of the first phase (short-term) is to generate real collective ow-nership of energy efficiency (EE), associating real meaning for it in the country. In thissense, the case of EE cannot simply be another National Energy Council program.Instead it should generate simultaneous efforts in employment, in leveraging capitaland a collective spirit that uses available resources to the best of their capacity in orderto support the development of EE.

The short-term objectives for this phase include the following:


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Achieve the maximum dedication to EE on behalf of key players (opinionleaders, business leaders, key members of congress, the Ministry of Finance,among others)

Educate citizens, marketplaces and companies on the opportunities that EE

can provide (with a focus on financial savings)

Obtain concrete results that demonstrate the real benefits of EE

Establish the foundations for more deeper institutional development

Establish the technical foundations for the development of long-term policy

As a result of these objectives, the creation of the El Salvador Saves Energy Pro-

gram (PESAE; Spanish acronym for Programa El Salvador Ahorra Energa) wasproposed, which unites public and private efforts with regard to EE.

Its mission would be to assess each of the ministries and agencies that form part of

its advisory council with a focus on the following: concrete efforts, plans, policies

and energy efficiency measures; the design of public policies and regulations that

favor the development of EE; and the development of efforts to maximize on the

capabilities of EE in different consumer sectors.

The El Salvador Saves Energy Program should be created as a temporary opera-

tional management project of the National Energy Council (CNE, Spanish acron-

ym), lasting two to three years. Its structure should include the active participation

of other agents in the decision-making process. In order for this to happen, the

development of an advisory group, a coordinating committee and an operational

management board should be created consisting of public and private agents that

are most relevant to the development of EE in El Salvador.

The actions that the PESAE must take will be focused on the following areas:

Residential electricity use, with the purpose of reducing losses and transfor-ming subsidies to invoices, to subsidies for technology exchanges that com-pensate for an economically and politically sustainable transformation.

Public and commercial electricity use, with the purpose of taking immediate

advantage of reduced energy use and financial savings, for proven technolo-gical changes (lighting and HVAC systems).

Industrial electricity use, focused on big industry.


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With regard to the second phase (mid-term phase), once the team that is part of the ope-rational management group is technically sound and once the El Salvador Saves EnergyProgram is evaluated, a more permanent organization should be studied in detail underthe National Energy Council in order to maintain the states drive and political supporton the issue. If the results are deemed to be adequate, this second phase should main-

tain the structure of the program within the CNE, but with a stronger internal organiza-tion of the operational management group connected to the products or services beingoffered. Likewise, this phase should be focused on developing knowledge in order tosuitably approach and maximize the EE capacity in El Salvador. It should also focus onthe most cost-effective efforts that are supported by the programs stakeholders.

With regard to the long-term phase, the program should become a legal entity withits own assets and authority. Similarly, it is believed that the focus of this organizationshould be challenges of competition in El Salvador, which is why climate change andrenewable energies should be integrated as a sphere of action. Likewise, given the

institutional structure of the Salvadorian government, we consider that the agency thatis developed should focus on the design and implementation of plans, programs andefforts, together with the development of information for decision-making, leaving theregulatory and policy development spheres with the National Energy Council. The pu-blic, private or public-private character of this agency should be defined according tothe experience of the El Salvador Saves Energy Program, as well as the interests andexpectations of the government and other interested parties. With regard to actionsfor this phase, we believe that the agency should work in all consumer sectors andmust develop a long-term action plan, establishing the energy conservation curve ofEl Salvador.

Grenada

The objective of the institutional framework for energy efficiency in Grenada is thecreation of conditions to change the habits and actions of societys energy consumers

in industrial, commercial and residential sectors.

The transformation of the market is a key element here, as the majority of energyconsumers follow patterns that are based on a specific lifestyle. Efficient technologycan provide a great amount of energy savings, or even improve energy consumersexpectations of comfort, security and quality.

The institutional framework must increase the implementation of energy efficiencypolicies and will be based on the interactions between changes in behavior, financingand market transformation strategies.

The preliminary proposal for the institutional framework for energy efficiency in the


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country is based on an inter-agency committeemodel that can be coordinated by

the Ministry of Finance and Energy. It will consolidate the efforts of other ministries,governmental agencies, and private entities towards the National Energy Efficiency Plan.

Within this inter-agency committee, each of the participating organizations will havespecific functions to be agreed-on by all members and which will report to the com-mittee. These functions will be designated according to the experiences and opera-tions of each organization.

The operational structure will support society and economic operators, as they areorganizing themselves in order to contribute to national energy efficiency efforts.

The proposal suggests the establishment of a National Energy Efficiency Office,which must consider the objectives and targets of national energy policy as well as theprograms that can be developed to achieve EE. Figure 4.12 shows the organizationalstructure proposed for the office.

Figure 4.12. Proposed structure for the National Energy Efficiency Office

Objectives include: ensuring energy security, achieve energy independence, maximize


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energy efficiency, promote the energy conservation, achieve environmental sustaina-bility through green energy and minimize energy costs all together in the NationalEnergy Policy.

This new structure must be supported by a legal framework and will be designed so

that it can promote and institutionalize energy efficiency for the different entities ineach sector.

The proposal for the internal organization of the National Energy Efficiency Office ofGrenada is based on three interconnected areas

Data analysis and planning of energy efcient projects and programs

Technical assessment that improves the quality of efforts and provides details

and specifications of projects and programs

Implementation and follow-up of efforts

This organization is shown in Figure 4.13.

Figure 4.13. Organizational structure proposed for the National Energy Efficiency Office

Many different systems can be used to promote participation in energy efficiency.


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Subcommittees on energy efficiency that report to the Board of Directors.Examples: public buildings or hotel subcommittees.

A special energy efficiency committee at the University of St. Georges. The

National Energy Efficiency Office could generate information so that othercommittees could form.

Participation of the energy industry with energy efficient equipment andservices.

Funding programs for energy efficient projects. Example: a small loan issuedto an energy user; as savings are made, the income to pay becomes available.

Associations, investments and agreements with financial institutions could es-tablish a program to substitute equipment.

Design specific programs for small and medium-sized businesses.

Jamaica

Inspired by the general vision of the proposals for the Caribbean Region, a struc-ture similar to Grenadas is proposed for the institutional framework for energyefficiency in Jamaica. The preliminary proposal is for an Inter-institutional Com-mittee that unites the efforts of various ministries and governmental organizationstowards a National Energy Efficiency Office.

As part of the same structures of the committee, the objectives will be connectedto the National Energy Conservation & Efficiency Policy 2010-2030, mentionedearlier and presented in Figure 4.14.

The proposal objective may be the same for all sectors in order for all parties towork together on the same efforts. Nevertheless, the promotion and application ofenergy efficiency may be different in each sector.


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Figure 4.14. Objectives of the National Energy Efficiency Office proposal

The proposal for the office must consider the objectives and vision of national policywith an internal organization that focuses on three interconnected areas in one basiccycle, as presented in Figure 4.15.

Figure 4.15. Proposed areas of activity


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Nicaragua

Based on a general vision of the proposals for Central America, the following pro-

posal is based on a three-phase plan for the upcoming years, in accordance withthe political and institutional context of Nicaragua. Its structure is presented belowin Figure 4.16..

Figure 4.16. Phases of the proposed plan

According to the political and social context, the most relevant objectives to promoteEE in Nicaragua are:

- To collaborate with the National Human Development Plan.

- To save energy.

- To save money in electricity subsidies.

- To contribute to the protection of the local and global environment.

In addition, the priorities of the first phase should be connected with projects thathave a high social focus, that have efficient results and pilot projects, that revealmeasurable and concrete results, and that build trust and reliability in the benefits ofEE implementation in the country.

These efforts are already taking place, as the government of Nicaragua, led by theMinistry of Energy and Mines (MEM), is developing several lines of action in order to

encourage the efficient use of energy. The initiative that stands out most is the NationalSustainable Electrification and Renewable Energy Program (PNESER, Spanish acron-


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ym) to take place between 2012-2015. The program includes three actions of greatimportance in order to best use energy (for example, the replacement of two millionincandescent light bulbs in homes). Additionally, both in the public and private sector,there are different initiatives taking place with similar objectives such as replacing bu-ses in the public transportation system and an energy audit program from the Cleaner

Energy Use Center (Centro de Produccin ms Limpia, CPML).

One of the key factors that has been identified is to place all of these efforts under onecommon framework, which has been called Nicaragua Uses Energy Well (NUBE,Spanish acronym), an initiative led by the government of Nicaragua, under the Minis-try of Energy and Mines.

In order to establish a solid ideological and conceptual foundation, a series of stra-

tegic steps that can be taken gradually has been proposed. These steps will allowfor progress to be made and will correspond to the degree of improvement takingplace in the country with regard to EE and the impact that the adopted measureshave generated. This foundation should generate a shared vision as well as esta-blish a stake at public policy that convenes and organizes parties with regard toobjectives that allow for energy efficiency to take place as part of stable and long-term policy in the country.

This requires the government of Nicaragua to develop a focus that allows for necessarysteps to be taken in order to promote the benefits and awareness of energy efficiency

in all sectors; with a special focus on those that are priorities of the governments so-cial policy, on residential use and the countrys productive structure.

On a short-term basis, the initiatives to be developed should include the following:

- Contribute to the National Human Development Plan.

- Generate efficient, measurable and concrete results. Sufficient strategies toachieve this include pilot projects and the development of projects organizedinternationally (i.e. replacing incandescent light bulbs).

- With the objective of uniting capacities, avoiding duplicate efforts and impro-ved use of resources; establish the roots to promote EE in the country, basedon the credibility, technical expertise and collaboration that are needed fromthe different parties involved.

In order to strengthen and move short-term actions forward, it is important to


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develop a trademark that incorporates the objectives that strengthen the develop-ment of energy efficient policies in the country and that strengthen the construc-tion of successful experiences in creating supportive practices, instruments andtools in priority sectors.

On a long-term basis, the following should be developed: a more permanent institu-tional structure, the construction of national EE plans, the establishment of inspectionsystems and formula, monitoring and evaluation processes, and the creation of orga-nizations in charge of implementing initiatives with a focus on the countrys social,energy and economic challenges.

The program seeks to fulfill the aforementioned objectives; the identification of oppor-tunities that generate concrete results and that incorporate with the National Human

Development Plan, Nicaraguas energy policy and environmental objectives, and toge-ther with long-term planning.

Three lines of action have been identified for the plan:

2013-2017 NATIONAL ENERGY EFFICIENCY PLAN (PNEE, Spanish

acronym).- a national EE plan will be developed whose final evaluationwill occur at the end of the term of President Daniel Ortega. The plan willhave a dynamic development according to the information that the gover-

nment of Nicaragua has.

DEVELOPMENT OF PUBLIC POLICIES AND REGULATIONS.-A new de-cree that will include the presidential mandates necessary for the developmentof energy efforts, the establishment of a transformation strategy of sociallysustainable subsidies, and the applicable evaluation procedures in order toimplement 13 Nicaraguan Mandated Technical Regulations (NTON, Spanishacronym) for energy efficiency. It will also have a draft law and regulations,established with the consensus of all energy consumption sectors. Lastly, it

will include a Regional Administration and Management of Electronic Equip-ment Disposal Project (RAE).

PROJECTS.- Projects with funding for the 2012-2015 period (energy efficientlighting in hospitals, street lighting savings plans, solar energy for refrigerationand air temperature control, trial projects for installing thermal systems, pho-tovoltaic system for implementing production systems in rural areas, exchan-ging incandescent bulbs for Compact Fluorescent Lamps in residential sectorsand exchanging magnetic ballast florescent lamps (40W) for electronic ballast

florescent lamps (32W) in the government sector), and the integration of otherenergy efficiency implementation agents (national capacity building project


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in EE, collaboration with the Ministry of Education to continue the EfficientEnergy Use educational campaign, and an improved public transportationand PNSER project).


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5. Results achieve

It is essential to highlight the importance of two of the projects undertaken by the

PALCEE Project:

The institutional framework for energy efciency

The implementation of recommendations by energy audits

a. The institutional framework for energy efficiency is important for the followingreasons:

The rst and most important result is the strengthening of institutional fra-mework of the energy sector in general. In countries where it is just recentlybeing created or for those countries where it is not strong enough, the mana-gement of energy efficiency must be part of the structure of the entire sector;however where there are weaknesses also contributes to the overall integrityof the management of the sector.

The establishment of the national coordination of multiple and widespread

projects that take place in countries.

The centralized follow-up of the results achieved from the different projects

and the ongoing support provided by the responsible institution.

The identication of program achievements that will lead to integrating na-tional goals and a solid commitment from national energy authorities on thedevelopment of energy efficiency.

The contributions to sustainability by energy efciency programs, which was

lacking in the region.

b. The implementation of energy audit recommendations is important for the followingreasons:

A large majority of energy audits performed in the region remained as simple

documents, taking up the shelf space of companies, ministries and other ins-titutions; however, they never go into the implementation phase.

The verication of energy efciency benets that can be demonstrated

financially to institution administrators and to company leadership has thepositive effect of stimulating other projects and serving as an example for


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other institutions and companies.

The hands-on training getting by the implementation of recommendations is

multiplied by the benefit of having trained staff to implement energy efficiencymeasures.

Training of personnel from the institutions responsiblefor energy efficiency

Part of strengthening institutions is providing training to those officials in charge of theadministration and management of national energy efficiency programs. The objectiveof strengthening institutions is to be able to execute the necessary projects that impro-ve energy use in the country. In this case, officials were trained with two internships.The first internship was with the Austrian Energy Agency (AEA) with the purposeof learning about the administration of energy efficiency projects in European coun-tries. The second internship took place at the Trust Fund for Electrical Energy Savings(FIDE, Spanish acronym) of Mexico, with the objective of learning about implementa-tion programs and demonstration projects in the region.

Figure 5.1. Internships participants

Strengthening the capacities of the staff from the responsible institutions brought aboutgreat interest in replicating some of the projects that have taken place in the visitedcountries; consulting has been requested in order for that to happen.


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Figure 5.2. Internship photos

One of the lessons that the officials learned was the importance of creating awarenessin the population starting with children, which calls for the development of energyefficiency awareness programs in elementary schools. This program should in no casebe a single program; on the contrary, it should be implemented along with nationalprograms..

Figure 5.3. Internship activities

Figure 5.4. Internship photographs


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Figure 5.5. Session to establish the PESAE

Figure 5.6. PESAE Launching

Results by Country

After highlighting the two most significant results mentioned above, it is important

to note the results of the PALCEE Project activities on the four participating coun-tries in detail.

El Salvador

As mentioned earlier, the El SalvadorSaves Energy Program (PESAE) wasthe first step in the proposal of theinstitutional framework progressivedevelopment process.

The proposal (Romero, 2012) toestablish the PESAE was discussed

during a workshop attended byenergy sector authorities and theinstitutions that have energy effi-ciency projects or programs. Withsome adjustments, a consensus wasreached among the participants andall accepted the leadership of theNational Energy Council under theDirection of Energy Efficiency.

The Minister of Economy and Presi-dent of the National Energy Councilled its official launching. It was at-tended by the Minister of the Envi-ronment, by top executives of PESAEmember institutions and companies,and by a large amount of public in-terested in the development of thecountrys energy efficiency.

It is worth to mention, the PESAE contributes to strengthening the lead institution


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of the energy sector, the National Energy Council (CNE). A new institution, sinceit began its operation in August 2009 and brought effective leadership to energyefficiency in the country.

As a contribution to the sustainability of energy efficiency, the PALCEE Project or-ganized concrete actions among which included the development of demonstrationprojects that brought theoretical and practical skills to professionals in the country inorder to develop energy audits and to implement its recommendations.

Implementation of audit recommendations are a central issue of sustainability. In themajority of the regions countries audits are performed that result in good documents,but that do not motivate the implementation of energy efficiency measures. A strongpoint of the PALCEE Project is to demonstrate the benefits of energy efficiency by im-

plementing the recommended measures with the participation of the professionals thatwere trained by the project. The training was led by a contracted specialist (YolandaSalazar; Fundacin Centro Nacional de Produccin Ms Limpia, 2013) and it includeda theoretical course, audits and the implementation of recommendations.

The consultant was in charge of training the professionals on the development andimplementation of energy audits.

Figure 5.7. Theoretical training on energy audits

Upon the completion of the theoretical training, attended by 10 professionals, the per-formance of each of the participants was evaluated, and a group of seven was chosenas technical assistants for field work.

The audits were held at the National Citizens Registry (RNPN, Spanish acronym) and

at the following companies: PROTECNO, a manufacturer of backpack sprayers foragricultural use; CONDUSAL, an electric cable manufacturer; and PATRONIC, in the


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powdered food and condiment food industry.

As a result of these audits, the management of these institutions were motivated tocontinue improving their energy efficiency. They established committees in charge of

developing projects, generating and maintaining use statistics; and set aside part of theirbudget in order to implement all the measures recommended by the audit.

These projects were supported with seed capital in order to implement the recom-mendations that resulted from the audits for each of the institutions. Twelve energyefficiency measures were implemented out of a total of 22 measures identified from the

four energy audits. The trial project therefore achieved 54% of the total possibility forimplementation.

The Table 5.1 details the economic and energy benefits for each institution audited, aswell as the to-date investments made.

Source: (Salazar, Yolanda; Fundacin Centro Nacional de Produccin Ms Limpia, 2013)


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Figure 5.8. Energy efficient appliances - RNPN

Figure 5.9. Energy efficient equipment and company staff - PROTECNO


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Figure 5.10. Energy efficient equipment and company staff - PATRONIC

Figure 5.11. Energy efficient equipment - CONDUSAL

Together with the cooperations objectives on social benefits to those in need, the CNEEfficient Residential Lighting project was supported in low-income regions of theSanta Ana Municipality with the donation of 3,000 Compact Fluorescent Lamps (CFL).

This generated knowledge and awareness to the new technology, supporting familiesfinancing by saving approximately 25% on their electric bill.


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Figure 5.12. Energy efficient lighting Santa Ana

Grenada

The interest for improving energy use in the island has been a consistent accom-

plishment, shedding a positive light on the Division of Energy of the Ministry ofFinance and Energy. The Permanent Secretary of the Ministry took on the propo-sal brought forth by the consultant in the Caribbean (Arjona, 2012). The proposalincluded the establishment of an office in charge of energy efficiency, giving wayto the possible formation of a national office and to increasing the number of offi-cials in the division.

Upon acceptance of the proposal, and familiar with the continued support of thePALCEE Project throughout the development of trial projects, the Deputy PermanentSecretary requested the project be applied in hotels, as the greatest economic activityin the island is tourism. With this in mind, the contracted consultant (Escalante, 2013)provided theoretical training for 15 professionals from Grenada so they could performenergy audits. Once the training was complete, audits were conducted in two hotelsrepresentative of the island, Coyaba and Allamanda. Six participants that were trainedin the theoretical course assisted in the audit.


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Figure 5.13. Theoretical training on energy audits

Of great interest to the hotel management, the audit results incentivate them toshare their positive experiences and results with the association of Caribbeanhotels. In carrying out the recommendations made by the audit and in order tobenefit fully from them, they will focus on implementing the economic and envi-ronmental benefits presented.

The main recommendation for the hotels is to produce general maintenance standardsfor the buildings. This produces at least two important results: it reduces energy useand energy costs and, additionally can enhance and influence upon the image of thehotel, central to hotel business.

The measures implemented at the Coyaba Hotel included switching from cathode raytubes screen televisions to LED screen television sets. This reduced power usage onstandby from 15 W to 0.5 W, which is a significant savings since they remain in standbymode 24 hours a day. Another recommendation applied was the substitution of old airconditioners for efficient inverter air conditioners.


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Figure 5.14. Hotels in Grenada

The effect of the measures recommended from the audit in this hotel will be easilyperceived because the buildings are organized in groups of 10 rooms, allowing themto contrast the consumption of two similar buildings: one where the measures havebeen implemented and the other where they have not.

In addition, these measures also create greater visibility of the benefits obtained whenthe consultant shares them with other Caribbean countries that they could be appliedto and help to seek financial support in order to implement all the recommendations

made in the energy audits in the Caribbean.

The implementation of the recommendations in the Allamanda Hotel was not possible.The hotels maintenance conditions are not adequate to replace equipment and theirduration would then decrease. The results of the energy efficiency benefits, therefore,would be greatly affected.

A commitment between OLADE and ADA to support low-income communities led

to the project, Energy Efficient Lighting in the Residential Sector of Telescope: Sa-ving Energy, Saves Money. The project is supported on a previous analysis of thecommunity where the project took place based on the electricity consumption ofhomes. The project established the monitorization of this use. The final results ofthe project will be presented at the CARICOM Energy Week, and will demonstratehow the exchange of incandescent light bulbs for 3,000 CFLs that will benefit 425homes. As a result, this project will strengthen the Energy Division by presentingthe project as a contribution from the Ministry of Finance and Energy in supportof improving energy use on the island.


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Figure 5.15. Telescope Community

Jamaica

A successful case of the direct adoption of the Caribbean consultants proposals tookplace in Jamaica through the establishment of the Jamaica Energy Council (JEC).The council groups all parties involved in the energy sector in order to discuss and

organize projects proposed by the Ministry for the improvement of energy use. Theacceptance of this council was so well supported and accepted that the Inter-AmericanDevelopment Bank (IDB) joined the proposal made by the PALCEE Project to reinforcethe energy efficiency institutional framework. It made a financial contribution in orderto have an official in charge of energy efficiency projects in the country, for which anEnergy Efficiency and Conservation Official was contracted.

The importance of strengthening the energy efficiency institutional framework in thecountry is in the capacity to spread and replicate the projects that take place in the

Energy Division to all the institutions that participate in the JEC.

The PALCEE Project took action to benefit the visibility and applicability of energyefficiency in all sectors. These actions included training professionals on energy audits,conducting energy audits, and finally implementing the recommended measures.

The contracted consultant (Noel Brown; University of Technology, Jamaica, 2013) de-veloped the above actions starting with the training of 19 engineering students with

different specialties, instilling knowledge and interest among the students for execu-ting energy efficiency projects. The final evaluation of the course brought forth seven


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young students to move forward with the energy audit training, which were held atthe Altamont Court and Christar Villas hotels, and at the NWC Primary School (Natio-nal Water Company).

Figure 5.16. Participants and instructors from the technical course

These efforts inspired the Ministry to provide an option for energy audits as well asto continue with an agreement with the University of Technology to train auditors towork in Jamaicas public sector. The Ministry will be in charge of obtaining the fun-ding to implement the measures recommended from the audits.

The common finding of the hotel audits in Jamai-ca was the excessive use of thermal energy dueto the lack of efficient hot water heaters. In lightof this, the recommendation was to install solarwater heaters for both hotels.

With regard to the social aspect of the projectin Jamaica, an audit was conducted of the NWCPrimary School located near the University ofTechnology. The audit resulted in the imple-mentation of energy efficient lighting aroundthe perimeter of the school for the safety of thestudents, the replacement of existing refrigera-tion equipment and the provision of a source of

cold water for student use.

Figure 5.17. Energy efficient lighting at the

NWC Primary School.


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Figure 5.18. Theoretical training

on energy audits

Furthering the social participation of the cooperation, a rural community without ac-cess to Jamaicas electrical grid received support through the donation of 2,000 CFLs.This was part of the governments inter-agency efforts along with collaboration fromthe Rural Electrification Program (REP).

Nicaragua

Based on the recommendations from the consultant for Latin America (Romero, 2012),strengthening energy efficiency management within the Ministry of Energy and Mines(MEM) took place by establishing an improved organization of the department, whichled to the creation of the Direction of Energy Efficiency (DEE), directly connected tothe Minister. The Direction of Energy Efficiency was established in order to highlightand provide visibility on energy efficiency with the public participation of all partiesinvolved in responsible energy use in the country, creating cohesiveness amongst theparties. The DEE has created National Energy Effic

olade, palcee - latin american and caribbean energy efficiency program, july 2013

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