Making Carbon Finance Work for

Energy Efficiency in City Development

Carbon Finance Workshop

Quezon City, Sept 28, 2009
Konrad von Ritter,World Bank Institute
 Potential Sectors with Co-Benefits

Wastewater Solid Waste

Cities
Public Transport Buildings

Metered Services
Street Lighting
 Focus on Energy Efficiency –
•
Why?
Cites spend an estimated 30-40% of their annual
expenditure on energy costs
• Street Lighting, Water and Sewage Pumping account for
nearly 90% of the annual electricity bill of municipalities
• Energy consumption in most water supply and street lighting
systems can be reduced by at least 25% through EE.
• In developing countries, the cost of energy for supply of
water may easily consume up to half of a municipality’s
budget.
• Energy expenditure is the second largest cost after labour.
Source: Pradeep Kumar
Energy Efficiency: Mitigation Opportunities

Municipal Areas

Raw & Waste Pumping energy efficiency &

Raw Water Water leakage reduction

Waste Water
Energy efficiency
Solid Waste Public & other
buildings Whole Building design
Public
services
Street Lighting
transport EE Lighting
Household Lighting
Buildings

Other
Source: Monali Ranade
 Calculating ER in Energy Sector
Energy Sector Example of Intervention CDM Estimation
Methodology Approach
Energy Efficiency Street-lighting AMS II.C kWh/km
(demand-side): Water pumping AM0020 kWh/m3
Buildings envelope, heating and cooling - W/m2
Electrical equipment (lighting, refrigeration, AMS II.C kW/TR
etc) AM0048 kW/lm
Energy Efficiency New District heating networks AM0044 kJ/km
(supply-side): Efficiency improvement in district heating AM0058 kJ/unit of fuel

Renewable Energy Solar water heating AMS I.C kWh/m3

Solar lighting (streets or households) AMS I.A kWh/km
Heat pumps for heating and cooling AM0072 kWh/ m2
AMS I.C
Street Lighting - A forgotten niche for EE?

• Globally:
– Outdoor stationary light: 8% of total Energy,
• Of which 53% Street lighting
• Of which 40% Parking&Garage
– Estimated 90 million street lights
• Quezon:
– 2.2 Million kwh/month (0.75% of monthly E consumpton)
– Cost: Php18 Mill, Euro 260,000 Euro/month!

Source: Light Savers, The Climate Group

Debate: who’s the most efficient?
Differences in Lamp Efficiency:
LED – promising future?
 Some do not think so: HEF

Concorp
While others bet on LED: L.A.
Number of Street Lights: 140,000
Technology: Old HPS to new LED fixtures
Phase in period: 5 years
Total Program Cost: US$57 million
Payback: 7 years
Cost savings: US$10 million/year
Energy Use Savings: 68,640,000 kWh/year
CO2e Emissions Savings: 40,500 tons/year
 Next Steps on Street Lighting
• Given uncertainty about performance of
different Street Lighting solutions: create a
city demonstration project with rigorous
testing of various solutions
– Private Sector interested (Philips, others)?
– Multiple Suppliers
• Explore Carbon Potential of Streetlights
– Baseline – HPS?