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PEPS: Promoting an Energyefficient Public Sector
OVERVIEW
CSD-14
May 4, 2006
Laura Van Wie McGrory
Edgar Villaseñor Franco
Philip Coleman
OUTLINE
1) Why focus on the public sector?
2) PEPS partnership – goals, strategy
& current projects
3) PEPS: Future directions
Why the Public Sector?
1) Save energy, money, pollution and carbon
– Large, cost-effective savings potential (>20%)
– Historically low energy prices
2) Policy credibility
3) Market presence
– Government is a large % of GDP
– Biggest energy user
– Biggest buyer of energy-using products
4) Market leadership (influence buyers & sellers)
– Entry point for new technology
– Implied endorsement
– Example for others
5) Support Agenda 21 and Johannesburg Plan of
Implementation principles
– Integrate energy efficiency into policies, planning, and O&M of
. . . public sector.
Government Spending as % of GDP
Government:10-20% of GDP
60
50
40
Malaysia
30
Australia
New Zealand
Mexico
20
So. Korea
10
US
Thailand
China, Philippines, Russia
Japan
0
0
10000
20000
Per Capita GDP (US$)
30000
40000
Source: World Bank 2002
Number of Units
Government Leadership
Transforms the Market
Efficiency
standards
“Market pull”:
Information, Rebates,
Public Sector
Leadership
Original Distribution
New Distribution
RD&D
Efficiency
Building Blocks of
Public Sector EE Program
Building
Retrofits
Building
Benchmarks
New Public
Buildings
Tracking
Savings
Energy-Efficient
Purchasing
Product
Testing &
Labels
Infrastructure: Life-Cycle
Street Lighting Cost Criteria
Capable, Trained, & Motivated Staff!
PEPS Partnership
• PEPS Partners
–
–
–
–
–
Lawrence Berkeley National Laboratory
ICLEI - Local Governments for Sustainability
Alliance to Save Energy
IIEC
In-country partners: CSC (China), CONAE (Mexico)
• PEPS Goals
– Help government agencies achieve direct energy and cost
savings, with societal benefits (pollution prevention,
reduced pressure on energy supply systems).
– Mobilize public buying power and leadership to move the
market toward energy-efficient products and services.
PEPS Strategy
• Information and Decision Tools
— Energy savings estimation software (EST)
— Guidebook
— Website
• Technical Assistance to Governments
— Mexico
— China
— India
— South Africa
— APEC Economies
Program Categories
1)
2)
3)
4)
Policies and targets
Public buildings (existing, new)
Energy-efficient government procurement
Public infrastructure: efficiency,
renewable energy
– Water/wastewater, transit, fleets, roads, public
lighting and other public services
5) Information, training, incentives, and
recognition
PEPS Information
and Decision Tools
• EST (Energy Savings Tool)
– Spreadsheet application to estimate savings from
E-E purchasing
– Translated into Spanish and Chinese
– Mexico: Municipalities trained in use of tool to
estimate energy, cost, and pollution savings
– China: Used to estimate savings from government
purchasing of office equipment, lighting, and TVs
• Guidebook – Leading the Way: A Guide to
Efficient Energy Use in the Public Sector
– Peer review – Spring, 2006
– Expected publication – Summer, 2006
• Website: www.pepsonline.org
Guidebook and EST
PEPS Energy Savings Tool
(version 1.0)
Website: www.pepsonline.org
PEPS in Mexico
• Municipal Purchasing Project:
–
–
–
–
USAID funded
Builds on ICLEI’s Cities for Climate Protection (CCP) network
Eight cities participated in pilot
Purchasing guidelines and technical specifications
• office equipment, interior lighting, public street lighting
– Regulations (Normas) drafted for each municipality
– Three training workshops
• Initial Results (through 2005):
– Energy-efficient procurements by four cities
– Estimated annual savings in the four cities:
• 5,000+ MWh
• $726,000
• 3,295 metric tons of CO2e
PEPS in Mexico: Next Steps
• Expand training to at least 15 new cities in 2006
– Create critical mass of experience to help mainstream EE
considerations within municipal procurement processes
– Promote sharing of experiences among cities
– Emphasis on targeted workshops, web tools, telephone, email
– Two small grants awarded to municipalities to assist with
purchase of energy-efficient products
• Include additional products
– e.g., motors, refrigerators, air conditioners, pumping systems
• Extend program to federal government
– leverage relationship between PEPS and CONAE (PEPS staff
member housed at CONAE)
• Outreach to Latin American region
Lessons Learned (1)
• Key mistake: Overly ambitious beginning
– Tried to replicate and expand on mature U.S.
federal purchasing program in short time frame.
– Counted on resources at federal level, without
proving concept first.
– Focused just on technical tools, rather than
reinforcing tool applications through conducting
actual procurements to show results.
Initial foray with Mexican federal government
was unsuccessful; had to be abandoned when
key collaborators left agency and critical mass
had not yet been reached.
Lessons Learned (2)
• Start small, get foothold
– Started municipal effort with just eight
municipalities and eight products.
– Launched program within one year, gaining
confidence of cities and developing momentum for
expansion.
– Focused on getting tangible results at a pilot level
to allow for stronger expansion and improved
government buy-in.
– Success at municipal level has resulted in renewed
interest (and resources) at federal level.
PEPS in China
• Partners:
– CSC (China
Standardization Center,
formerly CECP)
– National Development
Reform Commission
– Ministry of Finance
• Co-sponsors: Energy
• Goals:
Foundation, US EPA
– Develop and implement mandatory policy for energyefficient government purchasing
– Support expanded public sector efficiency initiative
(“short-listed” in study for next National Energy Plan)
PEPS in China (Cont’d.)
• Government Procurement Project:
– Energy-efficient government procurement to
complement recently adopted testing and labeling
– International workshop, Beijing (Sept. 2003)
– Procurement Policy Issued (Dec. 15, 2004)
• Expanded Public Sector E-E Initiative:
– International Symposium, Kunming (Aug. 2004)
– China-US Study Tour (Nov. 2004) as groundwork for
broader public sector initiatives (2005+)
– Public sector energy efficiency on “short list” in
study for next National Energy Plan
PEPS in China: Next Steps
• Aid CSC in implementation of procurement
policy
• Expand program to new products
– Help with product selection, specs development
• Tracking and feedback
• Harmonize procurement specs with other
APEC economies
– Initial focus: Japan, South Korea
• Help expand the policy agenda for public
sector energy efficiency
Lessons Learned (1)
• Factors contributing to the rapid
adoption of the new Procurement Law:
–
–
–
–
An enabling policy in place
Existing structures on which to build
Immediate need (energy crisis)
Existence of a nationally authorized energy
efficiency labeling program
– A simple beginning
– High-level political endorsement
Lessons Learned (2)
• The rapid adoption of the Procurement
Law came with several tradeoffs:
– Low level of authority
– Insufficient training
– Insufficient information materials
PEPS in India: Maharashtra
•
•
•
•
Funded by USAID Mission and USEPA
Began February, 2005
Goal: Long-term strategy for public building EE
Activities:
– Pilot procurement for energy-efficient lighting
– Standard scope and format for building energy audits
– Standardize building energy use data collection for
benchmarking
– Case studies of exemplary projects
– Technical assistance in identifying and implementing pilot
retrofit projects
– Training materials for professionals supporting energy
efficiency in public buildings
PEPS in India: Next Steps
• Follow-on Work with Maharashtra Public
Works Dept: Expansion of EPA/AID Work and
Proposal to Renewable Energy and Energy
Efficiency Partnership (REEEP):
– Create energy management screening toolkit:
• knowledge-based model for more efficient energy auditing
• performance-based framework to implement O&M measures
– Train building managers and energy auditors in
use of toolkit
– Develop briefings for executives on positive
benefits of timely intervention
– Pilot-test application of toolkit in 2–4 commercial
buildings
PEPS in South Africa
• Activities to Date
– Energy in Cities Conference; federal workshop (2003)
– ICLEI municipal energy-efficiency pilot project Ekurhuleni (2005)
PEPS in APEC Economies
• Activities to Date
– International Symposium on Government Sector Energy
Management (Kunming, China, 8/04); proceedings
posted on ESIS Web site
– Scoping study for APEC procurement harmonization
• Next Steps (proposed projects)
– “Government Sector Energy Management Best
Practices (GEMP)”
– “Information Sharing on Financing Public Sector
Energy Efficiency and Renewable Energy Projects”
PEPS: Future Directions
• Project follow-through:
– China, Mexico, India, South Africa
• New opportunities:
– Regional initiative in Latin America
– Regional initiative in APEC region
• New sponsors (“base” funding)
• Expand partner base
– Europe/OECD/G8 involvement
– WSSD Partnership (9/05+)
Future Directions (Cont’d.)
•
Expand/update tools
–
–
–
•
Disseminate PEPS Guide
Building benchmarking
Project finance toolkit
Capacity building
–
–
–
Working exchange visits
Harmonize government purchasing criteria
International “Standards of Practice”
Putting Public Sector
Energy Efficiency on the Map
EU Purchasing
(PROST)
US Study Tours ECEEE
‘97,’05
ICLEI
Workshop
APEC,
Kunming
Procurement
Workshops
China
Procurement
Kuwait
Mexico
Procurement
Beijing
2003
India Public
Bldgs.
Kerala
Workshop
Capetown
Energy Cities
Conf.