ashok sarkar & zubair sadeque - world...
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Ashok Sarkar & Zubair SadequeThe World Bank
Energy Efficiency Thematic Group Washington DC, July 8, 2010
www.worldbank.org/energy
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• Promoting Energy Efficient
Lighting through Large Scale
Deployment –World Bank
Experiences
• Bangladesh - Design and
Implementation of the Large
Scale Procurement and
Implementation under ELIB.
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
Bangladesh CFL Project – World Bank Team Members:Mac Cosgrove-Davies, Zubair Sadeque (TTL), Toufiq Ahmed, Raihan Elahi, Md.
Fayez Khan, Arun Banerjee, Christopher Warner, Harikumar Gadde, Ashok Sarkar
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Broad Objectives:◦ Country perspective: Reduce shortages – address power “crises”◦ Consumer perspective: Increase reliability, reduce costs◦ Secondary Objective: GHG emissions reduction
Array of Technology Options: Supply-side, T&D and
-- EE Lighting is a Demand-side measure (Demand Side Management-DSM) -- peak shaving at $50 to $100 per kW
Menu of Approaches:◦ Incentive-based : Bulk procurement and programmatic deployment ◦ Public policy / Regulatory based: Phasing out Incandescent lamps
Objective of the Intervention:◦ Long-term availability of low cost, high quality CFLs in a sustainable manner
Lighting options stand out in many ways: Clear economics –consumers and utilities, easy to understand, positive impact on the electric utility, Upstream benefits (avoided T&D losses), “visible” impact on quality of life, quickest option (the large scale procurement and deployment route)
Many other lighting “improvement” options exist/ emerging – Fluorescent tube lights, Electronic Ballasts, Light Emitting Diodes (LEDs), Street Lighting, etc.
STRATEGIC CONSERVATION
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PEAK DEMAND CLIPPING
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LOAD SHIFTING
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VALLEY FILLING
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A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
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Case of a 14/15 W CFL replacing 60W incandescent Using 20% T&D loss, usage of 5 hours/day and 0.7 power factor (to
be on conservative side), the savings per CFL at power plant bus bar equals:◦ Energy ~ 67 kWh per year ◦ Peak Load ~ 38 W
At a “high quality” CFL price of $1.50 (US prices) and life of 6,000 hours (~4 yrs), the cost of savings:◦ Energy Savings < 1 US cents / kWh ◦ Peak Load Savings < $75 / kW
Emissions reduction/ Carbon Credits (for example- grid emissions factor of ~0.4kgCO2e/kWh) would result in ~150-200 kg CO2 (very conservative calculations!!)
Additional carbon revenues: @ CER price of $10-15/tCO2 ~ CDM benefits will be >$ 2.00 per CFL over its lifetime
Compare!Generation Supply Options:
$500-2000 per kW
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
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Replacing Incandescent Lamps with High Efficiency CFLs for Grid-based DSM Started with Poland, Mexico (1995-1998, GEF support), Continued with IFC – GEF in
Argentina, Czech Republic, Hungary, Latvia, Peru, Philippines, South Africa (2002-2005, Efficient Lighting Initiative http://www.efficientlighting.net), and World Bank Support in Sri Lanka (1995), Vietnam (2001-07) –GEF financed.
Recent Years (2006 onwards with IBRD, IDA, GEF, Carbon Finance and CIF/CTF) large-scale EE Lighting programs based on CFLs replicated in Uganda, Rwanda, Senegal, Morocco, Uruguay, Argentina, Pakistan, Bangladesh, Mexico, Mali, Ethiopia, Burundi, etc.
Other Large Scale CFL programs: Russia, China, India, Philippines, South Africa Uganda ERT Project (800,000 CFLs)- 30 MW peak load reduction measured Bangladesh RERED (10.5 M CFLs, 10 cities)– ongoing, ~300 MW reduction, 17.5
million planned to be added in next phase . Mexico (planned, 45M CFLs to 15M low-income HHs) ~1400 MW reduction. MW savings at 1/40th the cost of supply sources (diesel, etc.) Prices of high quality CFLs falling – from >$7 in 1995 to <$1 in 2009. Significant GHG emissions reduction and lowering of consumer utility
bills, with <1 year payback periods. Source: CFL Toolkit (World Bank-ESMAP) http://www.worldbank.org/energy
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
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19% Global Electricity Consumption Lighting (IEA) 2.4% of Primary Energy Consumption; 31% from residential
lighting itself; Total Cost of lighting $260 billion annually Nearly 70% of electricity is used by lamps for which better
alternative is available; >50% energy savings technical potential (globally), >33% could be realistically saved
Benefits: ◦ Lowest Costs, ◦ Highest Quality and ◦ Impacts (Quick & Measurable)
Challenges: ◦ Technical Issues and Integration with Grid, ◦ Institutional Complexity, ◦ Distribution mechanisms, ◦ Carbon Finance
Source: IEA (2006, 2008); Philips (2008); World Bank (2010)
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
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Program Year
Procurement
SizeBulk Price
Vietnam - Phase 1 2004 300,000 1.07
Vietnam - Phase 2 2005 700,000 0.98
Uganda 2006 800,000 1.10
Rwanda 2008 200,000 1.00
Ethiopia 2009 4,500,000 0.87
Bangladesh* 2009 10,500,0000.94 for 13-14W,
1.04 for 20-23 W
Philippines 2009 5,000,000 0.87
*Note - Bangladesh procured 3.3 million 13-14W and 2.2 million 20-23W CFLs.
Additional 5 million CFL to be procured in 2010.
A. Sarkar & Z. Sadeque, World Bank EETG Presentation, July 8 2010
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0.5
1
1.5
2
2.5
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3.5
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1 100 10,000 1,000,000 100,000,000
PriceUS$
Number of Bulbs
Cost of CFLs
Price
Source: CFL Toolkit, World Bank, 2009-10
A. Sarkar & Z. Sadeque,
World Bank EETG
Presentation, July 8 2010
CountryNo. of CFLs
Installed
Reported Peak
Load Reduction
Vietnam 1,000,000 33 MW
Uganda 800,000 30 MW
Sri Lanka 600,000 34 MW
South Africa 2,700,000 90 MW
India-BELP 300,000 11 MW
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Source: CFL Toolkit, World Bank, 2009-10
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4,200 MW available in a system with >6,000 MW demand severe power cuts in urban and rural areas.
World Bank assistance since Feb 2009, GTZ supported consumer surveys.
World Bank’s RERED project- for 2009-2010:
◦ Phase 1 (10.5 million) CFLs and
◦ Phase 2 (17.5 million) CFLs.
Phase 1 of 10.5 million CFLs procurement and distribution, led by Rural Electrification Board (REB).
5.5 million CFLs distributed to over 1.5 million households by five
utilities in one day! (June 19, 2010)
Covered 27 districts in Bangladesh, through over 1400 distribution centers.
Program to Integrate Carbon Finance/ CDM through Programmatic CDM (using AMS II.J) and IDCOL as bundling (PoA coordinating) entity; ERPA with WB-CFU
Peak Load Reduction ~300 MW in Phase 1, ~350,000 tons CO2e / year, Consumer Bill Reduction: $22 million per year
Highest Quality Technical Specs (much higher than even ELI and EST!)
Rigorous Testing of CFLsA. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 12
What happens when there’s load shedding
in the middle of the World Cup soccer game?
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Government of
Bangladesh
Ministry of Power and Energy
RURAL ELECTRIFICATION BOARD (REB)
(IDCOL - as CDM bundler and coordinating agency)
Utility #1 Utility #2 Utility # 3 Utility # 4
Ctr # 1 NGO# 9Ctr# 2NGO# 3 Ctr# 4 NGO# 5 Ctr# 6 School# 7
School# 8
Residential Lighting Customers
Steering
Committee
World
BankTechnical
Support
World Bank,
GTZ
CFL Suppliers
(thru ICB)
Carbon Buyer
(World Bank CF)
CFL IL
Carbon Credits
Rights Transfer
$
CERs (thru PoA, based
on AMS II.J)CFLs
$
$
CFLs
CFLs
IL
(all centers)
Admin $
(all centers)
Distribution
centers
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
Payment
REB
PMU
CERs
WORLD
BANKValidation
Registration
POA PDD
&
CPA PDD
CDM - DOE
CDM Executive
Board
1
2
Verification
Issuance
E.R. Monitoring
Report
CDM DOE
CDM Executive
Board
3
4
5
ELIB - Project CDM Cycle
World Bank,
CFU+E&Y
REB/
Utilitie
s
Power
Division
IDCOL
ERPA
Source: Chris Warner, Nov 2009
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A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
15
Commonly Used CFL Technical Specifications ELI EST IEC India-IS:15111 ALC? Bangladesh specs much higher than all the above!
Parameters that are Bangladesh project specific Wider Voltage Tolerance Range Lumens Maintenance Higher Power Factor Lower Harmonics -THD Low Mercury Content High Lamp Life Preferred Color (“Warm” vs. “White”) Screw-type A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 16
Bangladesh ELIB: 5.5 Million CFL Program - Awareness
PDB Headquarters
REB Headquarters
REBREB
PDB
PDB
Distribution
center # 1
Distribution
center # 1
Distribution
Center #1
Distribution
Center #2
Distribution
Center #3
REB
PDB
Distribution
Center #1
REB
REB
PMU
CPA #
1
CPA #
2
Distribution
center # 1
Distribution
center # 1
Distribution
center # 1
Source: Chris Warner, Nov 2009
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A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
POA PDD
&
CPA PDD
Data Management – Pre-Installation Survey
Used for Validation &
Registration
Utilities (Door to Door)
Pre-
installation
Survey
Pre-installation
Survey
Pre-
installation
Survey
Utility
1Utility
2
Utility
3
December ‘09 – March ‘2010
World Bank
(CFU+E&Y)
REB REB
REB
PMU
oversightoversight
Source: Chris Warner, Nov 2009
18A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 19
Bangladesh ELIB: 5.5 Million CFL - Preparation
Awareness & Information
about Free Distribution
thru cellphone Customers informed through
Electricity bills reg. the # of
CFLs they will get, and
specific venue
Pre-Installation Household Survey and
Data gathering and Tracking
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 20
Bangladesh ELIB: 5.5 Million CFL – Paper Trail
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 21
Bangladesh ELIB: 5.5 Million CFL – Paper Trail
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 22
Bangladesh ELIB: 5.5 Million CFL Program– M & E
Pre-Installation measurements before
Installation of CFLs (for kW, KVA, PF,
Harmonics on feeders at Sub-stations
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 23
Bangladesh ELIB: 5.5 Million CFL – Training for the 1
Day Distribution Campaign
Urban and Rural School Teachers
Being trained for Distribution/
Exchange process
POA PDD
&
CPA PDD
REB
PMU
Data Management – IL collection and CFL Distribution
Used for
Validation,
Registration,
Verification
World Bank
CFU +E&Y
Utilities (Distribution Centers)
Distribution
RecordDistribution
Record
Distribution
Record
Utility
1Utility
2Utility 3
REB
June 19, 2010
Utilities (Door-to-Door)
Distribution
RecordDistribution
Record
Distribution
Record
Utility
1Utility
2Utility 3
June 20-21, 2010
oversight
Source: Chris Warner, Nov 2009
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A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 25
Bangladesh ELIB: 5.5 Million CFL - Procurement
CFLs being transferred from
warehouses to CFL distribution
centers
New CFLs – 23 w and 14 w ratings
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 201026
Bangladesh ELIB: 5.5 Million CFL Distribution (in 1 day)
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 27
Bangladesh ELIB: 5.5 Million CFL Distribution (in 1 day)
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 28
Bangladesh ELIB: 5.5 Million CFL Distribution (in 1 day)
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 29
Bangladesh ELIB: 5.5 Million CFL Distribution (in 1 day)
Collected Incandescent
Lamps (at the Distribution
center
Landlord collecting
CFLs on behalf of
tenants
Customer signing for
receipt of CFLs (for CDM)
Monitoring
Report
Data Management – CDM Random Survey
Utilities (Door to Door)
Post -
installation
Survey
Post -
installation
Survey
Post -
installation
Survey
Utility
1Utility
2
Utility
3
July 2010 onwards
Ernst & Young
World Bank
REB REB
REB
PMU
Used for
Verification
& Issuance
oversightoversight
Source: Chris Warner, Nov 2009
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A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
31
Working with the appropriate fiscal authorities for removal of VAT and customs duties on CFLs– FY11 budget removed VAT for local manufacturers.
Working with regulatory authorities to help formulate policies for phasing out incandescent lamps and magnetic ballasts (used for FTLs) in the long run.
Designing and providing funds for a program to establish domestic CFL performance testing laboratories (in collaboration with BSTI)
Setting Up a CFL Waste Recycling and Management Program
Strengthening Local CFL manufacturing base
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
32
Ownership and commitment of the Government
Comprehensive planning process and robust logistics
Strong PMU oversight and record keeping
Effective coordination and consistency amongst stakeholders
Keeping it as simple as possible – eg, free CFLs
Involving community level stakeholders (school teachers, mosques, etc.) and local administrators
Massive consumer awareness program well in advance through multiple means
Strong technical specifications
Assurance of high quality CFLs
Low cost of CFLs, from competitive procurement processA. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010 33
World Bank-ESMAP's "CFL Toolkit"
@ www.worldbank.org/energy
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Standardization of Quality (Specs), Certification of Suppliers and Products
Impact: High Quality, Low Cost CFLs
Aggregated preliminary results indicate reductions in energy use of 2,590 GWh and CO2 emissions of 2.018 mtCO2e across ELI’s seven markets (Argentina, Czech Republic, Hungary, Latvia, Peru, Philippines, South Africa) between 2000 and 2003.
A. Sarkar & Z. Sadeque, World Bank
EETG Presentation, July 8 2010