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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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



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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



http://www.efficientlighting.net/

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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)



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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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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 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



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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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




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


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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


18A. Sarkar & Z. Sadeque, World Bank




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



Bangladesh ELIB: 5.5 Million CFL – Paper Trail



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



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


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Bangladesh ELIB: 5.5 Million CFL - Procurement

CFLs being transferred from

warehouses to CFL distribution

centers

New CFLs – 23 w and 14 w ratings



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


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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



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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




World Bank-ESMAP's "CFL Toolkit"

@ www.worldbank.org/energy

http://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.



http://www.efficientlighting.net/

Ashok Sarkar, ETWEN

&

Zubair Sadeque, SASDE

The World [email protected], [email protected]

mailto:[email protected]

mailto:[email protected]

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