Climate Change and Sustainable Energy:

Prospect and Challenge for LAC in the

decade ahead

Energy efficiency in LAC:

brief outlook of recent
actions and pending
challenges
Daniel Hugo Bouille

Bogotá, September 2014

 Preliminary Remarks

1. There have been clear improvements and

several countries are making great efforts.

2. In general, LA&C countries began later on

energy efficiency and it could be unrealistic to
compare the results in LA&C with those
successfully executed in OECD countries.

3. It is difficult to establish “common

denominators” in the region, in policy, regulatory
and institutional frameworks.

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 Energy Intensity Evolution

Not a sufficient
Indicator

Sector,
Sub-sector and
Energy services
Indicators are
neccesary

According to SE4ALL objectives , it is important to remark that:

• On access the LA&C priority is oriented to caloric energy services

• Renewable represent now 25% of LA&C energy matrix
• Energy Efficiency is the “Hidden Energy”, where LA&C has big opportunities
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 Trends in policy, regulation and
institutions

• New legislation in several countries, in addition

to the existing in: Costa Rica, Brazil, Colombia.

• The consolidation or creation of institutions

involved in energy efficiency.

• Tendency in most countries to establish national

energy efficiency programs (or to strengthen
programs already in existence), backed by the
legal and regulatory support.

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 Key energy efficiency actors

• Still dominated by the public domain.

• Low role of Energy Regulators and

energy distribution utilities to
encourage energy efficiency.

• No ‘Energy Efficiency –type Agencies’

created recently, except in Chile.

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 Resources and financing mechanisms

• Generally, the funds come from national

budgets or international cooperation.
• Effectiveness of Multilateral organizations
providing support in the form of loans
and/or technical cooperation.
• Substantial increase in the number of
ways of boosting the funding due to
environmental objectives.
• Positive trend in Public and private
finance sector. 6
 Results of energy efficiency
programs
• Difficulties to evaluate results
according to information available.
• The quality of the statistics and
performance indicators continues
to be unsatisfactory.
• Rebound effect is, generally, not
considered.
• Regional Program on Base
Indicators for Energy Efficiency in
Latin America and the Caribbean.
(participation of 11 countries).

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 Obstacles to be overcome
1. “stop and go” policies. Loss of personnel
2. Low institutional influence and priority.
3. Insufficient knowledge on opportunities
4. Appliances markets (small, expensive, imported)
5. Inadequate or insufficient regulations
6. Inadequate Energy Price policies
7. Up front costs as key reference.
8. Difficulties to prevent the importation of low energy-
efficient equipment
9. Still lack of oriented financing
10. No ESEs or ESCOs and mistrust in the technical assistance
11. Lack of indicators to assess results and policies
12. ISO 50001 not been widespread

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 Some lessons learned
• The saving potential is still high -10/15% of energy
consumption could be avoided with measures of quick
repayment.
• The positive involvement of public and private actors is the
result of:
– the political support of Governments;
– continuity of the policy and institutions;
– ability to access financing;
– knowledge on “what can be done” in each sector
• The existence of energy efficiency legislation in no way
guarantees that there will be positive effects on energy
consumption.
• The positive results depends on how projects and programs
are adapted to national realities and systematically
implemented.

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 Some ideas
1. Political will as pre-condition
2. Good diagnosis, clear policies and conducive strategies
3. Short, medium and long term target quantification is
needed.
4. Indicators to monitoring results and strategies.
5. Responsible and powerful institutions.
6. Is a cross-cutting issue and the need of institutional
coordination .
7. Training, capacity building and institutional
reinforcement.
8. Long term guarantee of funds is an enabling condition.
9. Supply side efficiency..
10. International cooperation should be needs oriented. 10
Many thanks for your attention!

dbouille@fundacionbariloche.org.ar

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