The Concept of Energy Efficiency

1
Rural Energy Agency (REA)

• The Concept of Energy Efficiency
• Presentetion to TREESPA Open Workshop
• Mlimani City Conference Centre Dar es Salaam
• 26th November 2009.

2
Rural Energy Agency/Rural Energy Fund

• Established under the Rural Energy Act No.8 of
  2005 .
• Promotes, coordinates and facilitates private and
  public sector initiatives and entrepreneurship
  in rural energy supply.
• Ensures continued electrification of rural
  commercial centres and households
• Promotes accessibility and affordability to
  modern energy services by low income groups
• Promotes increased availability of power (both
  grid non-grid)
• Continued research, development and application
  of appropriate rural energy solutions

3
Major Objectives of Rural Energy Strategy

• Use modern energy and alternatives sources to
  promote economic development through productive
  end-uses such as agro-business, SMEs, and
  commercial ventures in and near rural areas
• Increase access to modern energy services in key
  rural social service areas such as health,
  education, water, communication, etc.
• The Over-riding Objective is Universal access to
  modern energy services to the rural population of
  mainland Tanzania.

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Strategy to Increase Energy Access Hinges Upon

• Institutional arrangements
• Market private sector participation
• Effective regulatory regime
• Regional co-operation
• Appropriate legislation
• Social and environmental sustainability
• Balancing market forces with social obligations
• Mitigating environmental impacts
• Addressing gender issues
• Technical considerations
• Appropriate technology (low cost / min. quality
  standards)
• Energy conservation and efficiency (demand side
  supply side management.)

5
Projects Supported by REF

• REA has so far supported various projects through
  REF as follows
• In 2007/08 supported 10 projects worth US 9m/
• In 2008/09 the fund has supported projects worth
  US 18m. Most of them include grid extension to
  the rural while some include energy efficiency
  projects
• Appraisal of projects for small hydro, wind,
  solar, biomass, and energy efficiency are ongoing.

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Small Power Projects

• 17 potential off-grid small power projects are
  being pursued with various project developers
• 13 Small Hydro Power Projects
• 2 Biomass Cogeneration Projects
• 2 Biomass Gasification Projects
• at various stages of development
• Total exp. generation capacity 46.2 MW
• Result 8,400 new rural connections.

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Solar PV Projects

• Sustainable Solar Market Packages Project
• Phase to be implemented in Sumbawanga Rural
  District. Market survey for Phase 2 (Shinyanga,
  Kigoma, Kagera, Tabora, and Ruvuma) to start.
• 2. Solar PV Commercial Clusters Aggregation
• Targeting organized productive and commercial
  markets (VODACOM, Mbinga Coffee Growers, Rungwe
  Tea Growers, Mtwara Cashewnuts).
• 3. Solar PV Project for Commercially Active Rural
  Centers, Schools and Health Facilities.

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Other Projects

• Biomass Survey to be conducted in Dodoma and
  Shinyanga to support energy efficient charcoal
  and firewood stoves.
• LPG REA is working with ORYX to determine the
  possibility of distributing cooking gas to
  replace use of charcoal and firewood in Singida,
  Same, Mtwara Rural, and Mpwapwa.
• Wind Power Few proposals have been received from
  project developers, REA will support those that
  will be found feasible. REA is involved in the
  Sida capacity building support program Change
  Project for Wind Power Development and Use.

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Training and Capacity Building

• Training to up-lift project developers
  competence in developing and operating energy
  projects
• Areas covered Renewable Energy Technologies,
  Energy Efficiency and Entrepreneurship
• Five capacity building sessions were conducted in
  the Financial Year 2008/09
• Two sessions on Small Hydro Power dev., One
  session each for Solar PV, and Wind Power, and
  Business Planning and Entrepreneurship (EE, CDM,
  and Environmental issues were included as
  sub-topics).

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The Concept of Energy Efficiency

• There are sufficient economically viable
  opportunities for energy consumption improvements
  that could keep the global energy demand growth
  at less than 1 per annum which is less than the
  2.2 average growth anticipated through 2020 in a
  business as usual scenario. McKinsey Global
  Institute - 2006 Report.
• Making homes, vehicles, and industrial processes
  energy efficient is seen as a largely untapped
  solution to addressing global warming, energy
  security, and the worries of future fossil fuel
  depletion.

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Energy Efficiency

• It refers to efficient use of energy
• It can be defined as a situation where, due to
  design or technological improvements and attitude
  change, transportation services, industrial
  agro processes, buildings, and homes use less
  energy to achieve the same performance results
• Design and technological improvements and
  attitude change can be brought about by involving
  Product and Machine Designers, Manufacturers,
  Consultants, Contractors, Importers and
  Suppliers, Policy Makers, and End-Users.

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Energy Efficiency

• EE relates to the concept of Negawatt which
  refers to meeting the needs by improving
  efficiency instead of increasing energy
  generation
• Energy efficient can achieve real emission
  reduction at low cost. Vienna Climate Change
  Talk 2007 Report.
• Energy Efficiency and Renewable Energy are said
  to be the two pillars of the sustainable energy
  policy
• Energy Conservation refers to using less energy
  to achieve less energy services.

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Benefits of EE

• EE simply mean
• Spending less energy to get the same benefits as
  one would do by spending energy in an inefficient
  way
• Spending less cost on energy
• Rational use of energy, leaving the balance
  available for others to use
• Making less use of our natural resources Energy
  is extracted from our nature, remember we need
  this same nature for other needs like food,
  water, shelter, medicine, and ecological balance
  which manages the equation of life on earth!

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What would happen if we go EE?
Source http//en.wikipedia.org/wiki/Efficient
_energy_use
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Energy Efficiency

• Energy efficient practices could be achieved
  through
• Development of more energy efficient technologies
  ( market support initiatives?)
• Change in in peoples behavior through
• Education, sensitization and awareness creation
• Cost consciousness
• Environmental concerns.
• Development of EE standards, specifications codes
  of practice and subsequent enforcement (need for
  a national wide awareness and education
  campaign?).

16
Intervention for Energy Efficiency

• To achieve energy efficiency, different
  stakeholders should be involved like
• Government Ministries
• Utility Companies
• Promoting Facilitation Institutions and
  Agencies
• Transporters, Manufacturers, Agro-Processors
• Importers of energy consuming equipment and
  Machineries
• Designers, Consultants, and Contractors
• Policy Makers, Academicians and end-users.
• Energy Efficiency is a cross-cutting issue.

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Training as an intervention for EE

• Training is key to a successful implementation of
  EE plans
• REA is conducting EE trainings geared at
  sensitizing project developers and end-users on
  EE advantages (EE and CDM are covered as
  subtopics)
• Over 20 such trainings to be conducted during
  Financial Year 2009/10
• Other stakeholders are invited to participate,
  partner or co-finance this initiative.

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Best Practice leading to EE

• Use of modern energy efficient appliances
  (refrigerators, freezers, ovens, stoves)
• Building designs that reduce energy consumption
  for lighting, cooling or heating
• Use of energy efficient motors in industrial
  processes and use of waste heat to generate
  process steam
• Use of energy efficient equipment and machineries
  in SMEs and small scale agro-processing
  industries (TreeSpa Project Intervention).

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What are the challenges?

• Cost of new technologies (new EE products are
  expensive?
• Availability set up of delivery mechanism
• Difficult in penetrating the existing market
  culture (need for market support ?)
• Maintenance and Availability of spares
• Quality and warranty
• Old inefficient products are still in use (slow
  diffusion of new EE machineries/equipment)
• New use requirements, new operations?

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REA Support in EE Projects

• Support Energy Efficiency in irrigation and
  agro-processing
• Provide EE education to rural entrepreneurs and
  rural end-users
• Support rural energy initiatives aiming at
  contributing to the success of Kilimo Kwanza the
  green agricultural Initiative in Tanzania
• Partner with other stakeholders in developing and
  implementing energy demand and supply side
  management.

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• THANK YOU FOR YOUR
• KIND
• ATTENTION