Financing Energy Efficiency

Robert P. Taylor

Description

While energy efficiency projects could partly meet new energy demand more cheaply than new supplies, weak economic institutions in developing and transitional economies impede developing and financing energy efficiency retrofits. This book analyzes these difficulties, suggests a 3-part model for projectizing and financing energy efficiency retrofits, and presents thirteen case studies to illustrate the issues and principles involved.

Informations

• Publié par: world-bank-publications
• Publié le: 08 février 2008
• Nombre de lectures: 67
• EAN13: 9780821373057
• Langue: English

Extrait

FINANCING ENERGY EFFICIENCY
Lessons from
Brazil, China, India,
and Beyond
Robert P. Taylor
Chandrasekar Govindarajalu
Jeremy Levin
Anke S. Meyer
William A. WardFINANCING ENERGY EFFICIENCYFINANCING ENERGY EFFICIENCY
Lessons from
Brazil, China, India, and Beyond
Robert P. Taylor
Chandrasekar Govindarajalu
Jeremy Levin
Anke S. Meyer
William A. Ward©2008 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
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This volume is a product of the staff of the International Bank for Reconstruction and
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ISBN-13: 978-0-8213-7304-0
eISBN-13: 978-0-8213-7305-7
DOI: 10.1596/978-0-8213-7304-0
Library of Congress Cataloging-in-Publication Data
Financing energy effi ciency : lessons from Brazil, China, India, and beyond / by Robert
P. Taylor . . . [et al.].
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-7304-0—ISBN 978-0-8213-7305-7 (electronic)
1. Industries —Energy consumption. 2. Industries—Energy conservation—Finance.
3. Energy policy. I. Taylor, Robert P. (Robert Prescott), 1955–II. World Bank.
HD9502.A2F565 2007
333.79’17—dc22 2007039296CONTENTS
Foreword xi
Acknowledgments xiii
Acronyms and Abbreviations xv
Overview 1
Energy Effi ciency Financing and the Three Country
Energy Effi ciency Project 1
The Need for Energy Effi ciency Investment
Financing Interventions 3
Delivery of Energy Effi ciency Financing Is an
Institutional Development Issue 7
Delivering Investment Project Designs and
Technical Appraisals 8
Delivering Financing 10
Making Integrated Mechanisms Work 13
Moving Ahead 17
PART I. LESSONS FROM ENERGY EFFICIENCY FINANCING
OPERATIONS IN CHINA, INDIA, AND BRAZIL
Chapter 1. Introduction 23
Energy and Growth 24vi CONTENTS
Why Energy Effi ciency Is Important 27
The Three Country Energy Effi ciency Project 30
Roadmap for this Book 31
Chapter 2. Summary of the Energy Effi ciency Terrain 35
Reclassifying the Energy Effi ciency Terrain 36
Improving Energy Effi ciency in New Facilities 36 ciency in Existing Facilities 38
Conclusions 42
The Focus of this Book: Standard Energy Effi ciency
Projects 45
Chapter 3. Orgins and Persistence of Energy Ineffi ciency 49
The Importance of Institutional Environments
for Energy Effi ciency Investment 51
Additional Challenges Posed by Institutional
Frameworks in Developing Market Economies 56
Production versus Effi ciency Investment in
Rapidly Growing Economies 59
Chapter 4. Models for Delivering Energy
Effi ciency Investments 63
A General Model for Successful Delivery Programs for
Energy Effi ciency Investment 65
Examples of Delivery Mechanisms for Energy
Effi ciency Investments 71
Chapter 5. Identifying and Developing Energy Effi ciency
Investment Projects 79
Market Selection and Outreach 80
Project Development: Identifying, Clarifying, and
Allocating Risk 84
Institutional Capacities for Energy Effi ciency
Project Development 88
Making Choices about Outsourcing 92
Some Options to Minimize Transaction Costs 96CONTENTS vii
Chapter 6. Delivery of Financing 101
What Needs to be Delivered? 101
The Institutional Environment for Financing:
The Different Worlds of Bankers and Energy
Effi ciency Project Promoters 102
Dealing with Banking Systems in Transition
or under Development 105
Institutional Options for Delivery of Financing 107
Dealing with Repayment Issues in Energy Effi ciency
Projects and New Financing Product Development 110
Chapter 7. Making Investment Delivery Mechanisms Work 117
Basic Principles 118
Energy Effi ciency Lending through Local Financial
Institutions 120
Energy Service Companies (ESCOs) 131
Energy Utility Demand-Side Management (DSM) 138
Chapter 8. Conclusions and Recommendations 141
Suggestions for Each of the Three Countries 142
Suggested Roles for International Financial
Institutions 149
Operational Suggestions on Development of
New Projects 152
PART II. ENERGY EFFICIENCY FINANCE CASE STUDIES
Introduction to Part II 157
1. China ESCO Loan Guarantee Program 162
2. Hungary Energy Effi ciency
Guarantee Fund 170
3. Romania Energy Effi ciency Fund 181
4. IREDA Energy Effi ciency Loan Fund 189
5. Energy Effi ciency Cluster Lending for
SMEs by Indian Banks 194viii CONTENTS
6. Lithuania Energy Effi ciency and
Housing Pilot Project 205
7 . China ’ s Full-Service ESCOs 213
8. ESCO Development in the United States
and Canada 224
9 . Br azil Public Benefi t Wire-Charge Mechanism 235
10. Sri Lanka DSM: Using the Utility
Bill as a Loan Repayment Mechanism 243
11. Dongying Shengdong EMC Waste Gas Power Projects 246
12. Iqara Energy Services in Brazil 250
13. India Capacitor Leasing 257
BIBLIOGRAPHY 261
APPENDIX. GLOSSARY OF SELECTED TERMS IN
NEW INSTITUTIONAL ECONOMICS (NIE) THAT
RELATE TO ENERGY EFFICIENCY FINANCE 265
INDEX 273
Boxes
1.1 Energy Effi ciency Investments
Are Very Cost-Effective 29
2.1 Why Distinguish Between “Restructuring
Projects” and “Standard Energy
Effi ciency Projects?” 39
4.1 Generalized Model for Developing
New Energy Effi ciency Investment
Delivery Mechanisms in
Developing Countries 68
7.1 One Example of a Failed Project 121
CS9.1 Summary of Some Ideas for
Reform of Brazil’s Wire-Charge 241
Figures
1.1 Growth of Developing
Countries’ Energy Demand 25CONTENTS ix
1.2 Energy-Related CO Emissions
2
Growth to 2030 27
7.1 Shared Savings EPC Model 132
7.2 Guaranteed Savings EPC Model 133
CS1.1 Structural Overview of the EMC
Loan Guarantee Program 164
CS2.1 Hungary Energy Effi ciency Co-fi nancing
Program Institutional Arrangements 171
CS2.2 HEECP Results, 1997–2006 174
CS3.1 FREE Institutional Arrangements and
Funds Flow 184
CS4.1 IREDA Institutional Arrangements 190
CS5.1 Cluster Lending Approach Adopted in India 197
CS6.1 Lithuania Energy Effi ciency Project
Institutional Arrangements 206
CS7.1 China’s Full-Service Shared Savings
ESCO Model 214
CS7.2 T ypes of Projects Implemented
1997–2006 by Three Chinese ESCOs 219
CS8.1 Shared Savings Contracting Model 227
CS8.2 Guaranteed Savings Contracting Model 227
CS9.1 Breakdown of Brazilian Utilities’ Energy
Effi ciency Investments by Sector (1998–2003) 238
CS9.2 T otal Utilities’ Energy Effi ciency Investments
by Sector (1998–2003) 238
CS10.1 Sri Lanka DSM Project: Institutional
Arrangements 244
CS11.1 Dongying Shengdong EMC Ownership
and Business Arrangements 247
CS12.1 Iqara’s Business Model 252
CS13.1 Institutional Arrangements in a
Capacitor Leasing Project in India 258
Tables
1.1 World Primary Energy Demand by Region,
Mtoe (Reference Scenario) 25