Across the Western Balkan region, countries exhibit relatively high levels of energy intensity, a high energy savings potential among energy end-users, and heavy dependence on imported hydrocarbons. Energy markets would benefit from enhanced demand-side efforts and integrated energy efficiency measures across all sectors. Since most energy infrastructure was built during the 1960s and 1970s, inadequately maintained since the 1990s, and reaching the end of its useful lifespan, now is a crucial time to consider the way forward in the energy sector. The signing of the Energy Community Treaty in 2003 marked the beginning of systematic energy sector liberalization among Western Balkan countries, allowing them to deal with widespread energy sector problems that included, on the demand side, low energy tariffs, lack of payment discipline and, hence, little incentive for energy users to invest in energy efficiency measures. Building each component of the strong enabling environment required for increased Energy Efficiency (EE) across the Western Balkan countries will need cooperation among decision makers at multiple government levels...

This report summarizes the findings of an extensive literature survey of the experiences of implementing BEECs in developed countries. It also includes case studies of four developing countries- China, Egypt, India, and Mexico and the state of California in the United States of America. It aims to inform both the World Bank Group and its client countries about global best practices and emerging lessons from developing countries in the design and implementation of BEECs. The report also serves as a primer on the basic features of BEECs and the commonly adopted compliance and enforcement approaches. The key challenges to improving compliance enforcement in developing countries include the level of government commitment to energy efficiency, the effectiveness of government oversight of the construction sector, the compliance capacity of domestic/local building supply chain, and the financing constraints. These challenges are surmountable in countries where economic growth is sustained and energy efficiency is pursued as a key element of national energy strategy.

Energy for heating, cooling, lighting, mechanical power, and various chemical processes is a fundamental requirement for both daily life and economic development. The negative impact on the environment of current energy systems is increasingly alarming, especially the global warming consequences of burning fossil fuels. The future requires change through the development and adoption of new supply technologies, through a successful search for new, less resource-intensive paths of economic development, and through adoption of energy. Greater energy efficiency is key for shifting country development paths toward lower-carbon economic growth. Especially in developing countries and transition economies, vast potential for energy savings opportunities remain unrealized even though current financial returns are strong. Activities included specialized technical assistance, training, and applied research covering the four primary areas of country interest: (a) development of commercial banking windows for energy efficiency; (b) support for developing energy service companies (ESCOs); (c) guarantee funds for energy efficiency investment financing; and (d) equity funding for ESCOs or energy efficiency projects. One clear message from the experience of the three country Energy Efficiency Project is the importance of establishing and maintaining practical...

This study describes the Energy Efficiency for Sustainable Development (EEfSD) action plan, to scale up energy efficiency operations in client countries. The EEfSD strategy comprises of interventions at three levels: policy and regulatory, sector and sub-sector, and at end-use equipment and appliances. It is structured along four tracks: integrating energy efficiency within economic and sector work; mainstreaming energy efficiency in investment operations; improving internal operational, learning and analytic capacity; and monitoring, evaluation, and outreach. Priority focus is on countries with highest energy intensities, where rapid growth of the energy sector is expected and where total energy use is greatest. Implementation of the action plan will be guided by the Energy, Transport and Water Department, and will require cooperation and collaboration across the Bank Group, in particular the regional operations units. This paper presents the estimated incremental costs for FY07-09 which have been committed from energy trust funds and Bank budget.

This book explores energy savings performance contracts (ESPCs) as a means of overcoming some of the more difficult hurdles in promoting energy efficiency in public facilities. ESPCs represent a very attractive solution to many of the problems that are unique to public agencies, since they involve outsourcing a full project cycle to a service provider. From the detailed audit through implementation and savings verification, ESPCs can relieve public agencies of bureaucratic hassles, while service providers can secure the off-budget project financing and be paid from the actual energy savings, thus internalizing project performance risks. ESPC bidding also allows public agencies to select from a range of technical solutions, maximizing the benefit to the agency. Global experience suggests that ESPCs have been more effective at realizing efficiency gains than many other policy measures and programs, since the service providers have a vested interest in ensuring that a project is actually implemented. Many of the country governments interviewed for the study also saw enormous potential in bundling, financing, and implementing energy efficiency projects on a larger scale in the public sector, a method that increases the rate of efficiency gains and creates further benefits through economies of scale.

The document contains the proceedings of the Energy Investment Forum conference, The Forum was held to discuss option and explore opportunities for improving access to investment capital and financing for energy efficiency in developing countries. The Forum was held New York City, New York, as a side event to the 14th meeting of the Commission of Sustainable Developments as one of its core themes. Over the two-day session, participants were able to preset and debate the state of the global energy efficiency market and to explore its relevance in the broader global energy debate. Topics addressed included : energy efficiency issues and opportunities; country experiences in promoting energy efficiency; market-based approaches for utility, building and industry sectors; financing energy efficiency; innovative financial structures; and mobilizing local capita markets. The key outcome of the Forum was a call for significant scale-up of energy efficiency investment in the developing world. Recognize that a kW (Kilowatt) save is cheaper...

Egypt has an overall low efficiency in using energy resources to create economic wealth. Egypt is among the most energy intensive economies in the Middle East North Africa region as well as in the world. The Egyptian energy intensity is almost twice as high as in some neighboring countries like Morocco and Tunisia and four times as high as industrialized countries like Japan and Germany. On the sector level, most industrial processes, equipment and consumer appliances in Egypt have 20 percent or higher energy consumption than the best international practices. Therefore, Egypt has a great opportunity to improve the efficiency of its energy resource utilization across all segments of economic activities. The objective of this report is to take stock of the past/ongoing energy efficiency initiatives and activities and to recommend a set of the principal strategic actions which could be undertaken by the Government of Egypt to promote and sustain energy efficiency improvements. The first part of the report presents the following topics: a brief general overview of energy use in Egypt; an analysis of the current institutional framework for energy efficiency; a review of the past...

Improvement of energy efficiency is one of the main options to reduce energy demand and to reduce greenhouse gas emissions in Ukraine. However, large-scale deployment of energy efficient technologies has been constrained by several financial, technical, information, behavioral, and institutional barriers. This study assesses these barriers through a survey of 500 industrial and commercial firms throughout Ukraine. The results from the survey were used in a cumulative multi-logit model to understand the importance of the barriers. The analysis shows that financial barriers caused by high upfront costs of energy efficient technologies, higher costs of finance, and higher opportunity costs of energy efficiency investment are key barriers to the adoption of energy efficiency measures in Ukraine. Institutional barriers particularly lack government policies, which also contributes to the slow adoption of energy efficient technologies in the country. The results suggest targeted policy and credit enhancements could help trigger adoption of energy efficient measures. The empirical analysis shows strong inter-linkages among the barriers and finds heterogeneity between industrial and commercial sectors on the realization of the barriers.

This report was designed to provide senior Russian policymakers with a comprehensive and practical analysis of energy efficiency in Russia: potential, benefits, and recommendations on how to fully tap into this resource. Shortly after his inauguration, President Medvedev made several public statements identifying Russia s inefficient use of energy, and the associated economic and ecological consequences, as one of the most pressing problems facing the nation. He has called for an action plan to halve Russia s energy intensity by 2020. The goal of this report is to make a significant contribution toward developing such a plan.

Improving the energy efficiency (EE) of municipally owned buildings, such as schools and hospitals, and municipal infrastructure, such as public lighting, water supply, and district heating, offers budgetary savings on energy bills and a wide range of environmental and socioeconomic benefits. But relatively few municipal EE projects have been developed and implemented successfully. The challenges that limit EE investments in municipal buildings and facilities can be grouped into three broad areas: (i) a lack of awareness and incentives; (ii) insufficient implementation capacity; and (iii) limited access to financing. All three sets of challenges need to be addressed to scale up successful implementation of municipal EE projects. This Guidance Note focuses on the key issues faced by municipalities in accessing financing for EE investments, particularly for projects in the following four areas: indoor lighting, building retrofits, public lighting, and municipal utilities. The guidance note discusses the following potential financing mechanisms that can be used by municipalities to finance EE measures: budget financing...

About one-third of global energy is consumed in residential, public, and commercial buildings (collectively referred to as buildings), where it is used for space heating, cooling, ventilating, lighting, cooking, water heating, refrigerating, and operating electric and mechanical devices. Global energy use in buildings is expected to grow as cities in developing countries continue to modernize and per capita income levels continue to increase. Because of their high energy consumption, residential, public, and commercial buildings also offer unparalleled opportunities for energy savings. According to the International Energy Agency, buildings account for some 41 percent of global energy savings potential by 2035, compared with the industrial sector (24 percent) and the transport sector (21 percent). This guidance note outlines how cities can tap into a wide array of proven technologies, policies, and financing mechanisms to improve energy efficiency and capture cost-effective energy savings in buildings. It offers city leaders advice on how to get started in introducing energy efficiency measures...

This study is designed to analyze the energy efficiency policies in seven countries that were successful in achieving low energy intensities or in reducing their energy intensity considerably. The study analyzes the evolution of the energy intensity of these countries from 1990 to 2007, identifying points of inflection in the progress towards improvements. Changes to the policy agenda immediately upstream are explored in an effort to identify cause and affect relationships in energy efficiency improvements. Although direct relationships are difficult to isolate, cross country analyses that point to similar successes among a variety of countries give some confidence that these policies have contributed to reducing energy needs. The energy efficiency of new buildings is relatively easily and in expensively addressed by setting standards: making a new building energy efficient typically adds only 5 percent to the total cost. The purpose of this study is to determine what policy changes make a difference in countries' energy in tensity. The starting point for the analysis was the evolution of countries' energy intensity over time to identify inflection points when notable changes took place. Given that the inflection point could have been caused by external price shocks or structural changes...

This evaluation assesses the performance of International Finance Corporations (IFC's) energy efficiency finance program in China aimed at stimulating energy efficiency investments through bank guarantees and technical assistance. The program's significance is underpinned by the fact that China's size, rapid economic growth, and inefficiencies in energy use make it one of the world's largest emitters of carbon dioxide (CO2.). The utilization of IFC's program has been rapid compared with other similar programs. The difference made by the program is traced along the chain of interventions: (i) at the level of banks, the program is narrowly based on one of the two partner banks, which, with the help of the program, expanded its energy efficiency lending as a new business line; (ii) at the level of energy management companies, the program's technical assistance improved the program participants' access to finance; and (iii) at the end-user level, it promoted the use of energy efficiency investments that achieved reduction of greenhouse gas emissions. The evaluation recommends areas of improvement to realize greater impact. First...

Electric utilities are key actors in the quest to induce large-scale energy savings among end users. But often it is not enough simply to mandate utilities to achieve a specific target. Three new market-based mechanisms are available for utilities to use in promoting energy efficiency. Historically, mechanisms of demand-side management may be classified as regulatory, policy-based, market-based, and load-targeting. This knowledge note is important, because electric utilities are well-positioned to help raise energy efficiency. The three new market-based mechanisms to help achieve this goal include Establish a white certificates scheme establishing a white certificates scheme, establishing energy efficiency auctions, and establishing energy efficiency feed-in tariffs. These new market-based models are available for utilities to use in promoting energy efficiency, in concert with other means of procurement. Whatever the design, program effectiveness will depend on technically competent and trusted verification of energy savings and their costs...

For cities that want to take concrete actions on improving energy efficiency, it is essential to understand what, where, and how big the potential energy-saving opportunities are, what measures are needed to capture the savings and at what costs, what the implementation constraints are, and how priorities should be set given local capacity and resources. An energy efficiency assessment can provide the necessary clarity on these issues. Energy efficiency assessments can be done at different depths and with varying scopes, depending on the city's needs, capacity, and resources. The duration and cost of the assessment depends on the quality of existing data and the size and complexity of the sector. This guidance note provides an introduction to the objectives, scope, and outputs, as well as the basic steps and approaches of conducting the three types of energy efficiency assessments.

Energy efficiency can improve fiscal balances, stimulate growth and competitiveness, strengthen energy security, and reduce the energy burden of the poor. It also can enhance the quality of life by improving energy products and services, reducing pollution, and reallocating savings from energy to social services and other welfare enhancements. From a long-term perspective, energy efficiency preserves energy resources for future generations and mitigates climate change. Most governments in the region consider energy efficiency as a priority issue, although for different reasons. The key issue for many is the weight of energy subsidies in fiscal balances; for others, it is the vulnerability of the economy to swings in hydrocarbon prices and the risk of losing competitiveness; and for still others, it is concern about generating enough financing for energy investments and satisfying the energy demand of their fast-growing economies. These factors have prompted governments to renew their efforts to improve energy efficiency. This report explores opportunities to boost energy efficiency in the Middle East and North Africa and secure a sustainable energy future for the region. It explores governments' growing concern about the burden of energy subsidies and identifies opportunities to improve efficiency...

The Rapid Assessment Framework (RAF) is a central component of the Energy Efficient Cities Initiative (EECI), launched by the Energy Sector Management Assistance Program (ESMAP) in collaboration with the urban Anchor in 2008. The World Bank's key objective for the RAF is to create: 'a practical tool for conducting rapid assessment in cities to identify and prioritize sectors and suggest specific energy efficiency interventions.' Thus, the RAF will be used to help identify areas of energy use for further focus, develop an outline energy efficiency strategy, and guide potential future investment by ESMAP. The principal aim of the RAF is to provide a practical analytical framework for conducting rapid assessment of a developing country city's energy profile and performance for different activities across different sectors. This information is then used to identify sectors where the most improvements can be made, and provide a range of energy efficiency recommendation options for each sector, along with a list of possible actions. An outline energy efficiency strategy should ultimately be generated from this information to guide potential policy and investment options...

This paper aims to draw attention to the complex landscape of translating policy into implementation actions. It underscores the disjuncture between a broad global response to climate change mitigation measures and the requirements for national action in this regard. Individual countries face this challenge of interpreting and translating the cross-cutting response measures into local action. Climate change mitigation and energy security are two themes that are growing in importance in terms of its contribution towards South Africa's developmental agenda, thereby requiring an understanding of how policies and strategies are geared towards supporting this developmental agenda, in a way that does not compromise existing or future growth and progress. An assessment of the implementation of the South African energy efficiency strategy, demonstrates that the translation of policy intent into implementation is not self evident and associated with a number of prerequisites. These do not merely relate to the competence or capacity of an institution to implement the policy, but to a complex interrelationship of a number of factors. This includes supporting legislation, institutional arrangements, sources of finance and the need for co-operative governance.

The food retail sector is energy intensive, consuming large amounts of electricity for refrigeration, air-conditioning and cooking. Retailers are aiming to reduce their electricity consumption in supermarkets and thus their carbon footprint using energy efficiency technologies. This paper reports on a techno-economic analysis of energy efficient technologies to recommend to the food retail sector for use in supermarkets. The targets and needs of food retail companies were surveyed and thereafter, the retailers were divided into three categories. Category 1 retailer had the highest targets for electricity and carbon reduction and was willing to take on more risk. Category 2 retailer had intermediate targets and would only use developed technologies, while category 3 retailer would only invest in developed technologies if they were proven to show significant long term saving with short pay back periods. The analysis showed that closed refrigerators had the highest electricity/carbon savings and the highest profit (NPV), followed by heat reclamation from refrigeration. Both these technologies were recommended for category 1 retailers. A combination of heat reclamation, energy efficient lights, fridge curtains, electronic controls for refrigerators and POS power management systems were recommended for category 3 retailers. A combination of the two recommendations was identified for category 2 retailers. Behavioural changes of all staff were identified as important for energy efficiency technologies to work at optimum levels.

This paper aims at analyzing the energy management activities for commercial buildings of a financial service company in South Africa by energy efficiency in terms of performance, operation, equipment and technology (POET). The sustainability of a general energy management program is discussed within this POET framework. As an application of this discussion to the commercial building scenario, the award winning energy management program of this financial service group company is featured from the POET perspective of energy efficiency. The case study shows that the POET based framework can not only cover all major energy management activities, but also identify further energy efficiency improvement opportunities.