Energy Efficiency Improvement & Greenhouse Gas Reduction Project

Introduction & Organization Chart

Long Term Policy & Overall Objective

Project Activities Component 1: Loss Reduction & load Shifting in the Unified Power System (UPS) Component 2: Energy Efficiency Market Support Component 3: Cogeneration

Energy Efficiency Improvement &Greenhouse Gas Reduction Project

0.17MTOE

En

ergy

Sav

ings

CO

2

0.48MTons


The project target is to reduce the transmission

losses of the UPS from 7% – 5%, reduce

energy consumption by 0.17 MTOE and 0.48 MTons of CO2.

Improving Network Losses Measurement Capability


The project has set a plan for calibration and maintenance of measuring devices in order to get accurate measurements of losses.

All measuring devices of the power sector have been calibrated using the high accuracy (0.01%) calibrating equipment procured by the project.

Capacity Building for engineers and technicians to improve their capability in the field of measurements, and calibration.

Improve Dynamic Response of all Thermal Stations:


Measuring dynamic response of all thermal stations (37 units) with a total power of 10,000 MW

Assessment of dynamic response of generating units based on original specifications and take mitigation actions to improve their performance.

Tuning of 24 units to work under Automatic Generation Control (AGC)

Capacity Building of engineers and technicians from control centers and power plants.

Improve Transmission Losses through Network Analysis and Control Strategies:


Maximum use of reactive power of the generating units.

Improve the power factor through installation of capacitor banks at selected locations.

Optimization of network planning by using the up to date software program “Optimum Power Flow (OPF)”.


Per

cent

age

%

Percentage Losses for the period 98-2007Up to 33 K.V

2

3

4

5

6

7

8

98/99 6.5 6.34 6.34 7.16 6.32 6.48 6.84 6.4 6.09 5.69 7.63 6.93

2001/2002 7.01 6.82 6.43 5.77 4.61 4.5 4.57 4.77 4.03 4.2 4.22 4.66

2002/2003 4.91 4.3 4.08 4.63 4.28 4.25 4.92 3.69 4.34 3.82 4.22 4.76

2003/2004 4.15 4 4.02 3.79 4.5 3.87 3.96 3.01 3.55 3.73 3.42 3.52

2004/2005 3.9 3.74 4.04 3.9 3.58 3.89 3.59 3.31 3.76 3.19 3.56 3.91

2005/2006 3.59 3.91 3.46 3.91 3.45 4.1 4.17 3.91 3.27 3.45 3.77 3.75

2006/2007 3.68 4.06 3.46 3.66 3.44 3.59 4.16 3.45 3.51 3.46 3.84 3.8

July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

2002/2003/ Avg=4.35

2003/2004/Avg=3.79

2005/2006/Avg=3.71 `2004/2005/Avg=3.7

2001/2002/Avg=5.13

98-99 /Avg=6.56

2006/2007/Avg=3.68

Fuel Saving and CO2 ReductionFuel Saving and CO2 Reduction

All these activities lead to a reduction of percentage losses to reach 3.68% by year 2006/2007.

Accumulated Fuel Savings from the start of the project in 1999 up to year 2006/2007: 3.2 MtOE.

Accumulated CO2 reduction from the start of the project in 1999 up to year 2006/2007: 9.59 MTons

Load Shifting using Time of Use (TOU) Tariff


Carrying out study with different scenarios of TOU tariff.

Implementing a pilot load shifting project at a cement factory.

Implementing Integrated Resource Planning Study for the cases of distribution companies ( Alex, Canal, Cairo and Delta South).

Training of 160 engineers from Electricity sector on Integrated Resource Planning (IRP), Demand Side Management (DSM) and Load Shifting.

Study options for Incentive to encourage load shifting.

The electricity sector is analyzing the different scenarios to select the optimum adoption for Time of Use tariff

Adoption of TOU Tariff


Industrial Customers Load Shifting

The cement industry is a heavy consuming one therefore the pilot project was implemented at Beni Suef Cement Company where

4 MW representing 20% of the company peak load has been shifted from the system peak load.

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

1 3 5 7 9 11 13 15 17 19 21 23

Time (Hr.)

Loa

d (M

W)

10/8/2002(Before Load Shifting)

14/8/2002(After Load Shifting)

"adjusted"

4 MW

Daily load curve of Beni Suef cement company


Until the TOU tariff adopted, a pilot project has been implemented to demonstrate the effectiveness of applying this tariff.


2.95MTOE

En

ergy

Sav

ings

CO

2

8.25MTons

80


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Total of 190 energy audits using 10 different technologies have been accomplished in industrial and commercial facilities (200 target).

Training of 60 engineers in the field of energy audits. 20 audits only have been implemented.

1. Under capitalized ESCO (problems to access to finance).2. Unfavorable lending terms.3. High prices of efficient equipment.4. Exchange rates of the currency led to reduction of the economical

attractiveness of the E.E. projects.5. Unchanged prices of electricity (highly subsidized energy prices).

Energy Audits

Obstacles preventing Implementation


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Study for the reduction of custom duties of two selected equipments : CFL from 30% to 5% and efficient motors from 30% to 10%, ( not yet approved).

Undertake a program for the diffusion of CFL by the DCs through replication of the leasing program.

Encourage the private sector to manufacture CFL locally (4 factories were established).

Public awareness program for the diffusion of efficient lamps which led to the increase of the market size of CFL from 434 million/2001 to 4 million/2007

Encourage NGOs to implement energy efficiency projects.

Project Initiatives to face these obstacles:

278,318434,555

520,532

1,378,497

1,929,896

2,500,000

3,300,000

4,000,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2000 2001 2002 2003 2004 2005 2006 2007

Increase in Market size for CFL'sfrom 2000-2007

No. of CFLs

Year


80

Development of Egyptian Market for CFL’s 2000 To 2007

50

36

27

18

0

5

10

15

20

25

30

35

40

45

50

1999 2002 2005 2007


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Decrease of price lamp from 1999-2007


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EEIGGR project has developed a new scheme for the loan guarantee mechanism to provide the necessary finance for the energy service companies (ESCOs) through providing guarantee to these companies to get loans from the banks.

An agreement has been signed between the Egyptian Electricity Holding Company and the Credit Guarantee Company and an approved list of projects are expected to benefit from this mechanism.

Loan Guarantee Program

7 ESCOs have been selected and energy efficiency technologies have been adopted which can payback in less than 3 years.

It is required to leverage additional funds to facilitate implementation of large size projects.


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Loan Guarantee Program

Bank

ECCESCO

EEIGGRCGC

END USER

EEIGGR: Energy Efficiency Improvement and Greenhouse Gas Reduction projectCGC: Credit Guarantee CompanyESCO: Energy Service CompanyEEC: Egyptian Consulting Center

100% loan guarantee

Loan payment

Loan

Installment EE Project

Legal, accounting and administrative

support

Partial guarantee (50-70%)

Regist

ration

Techno-ec

onomical

feasib

ility

Reporting

Technical Support

Marketing

Subcontracted

Cooperation with GEF Small Grants Program (SGP) to assist 7 NGOs in financing energy efficiency lighting programs.

Promoting the use of efficient lighting equip. many demonstration application have been executed at different locations:• Some street lighting, in Cairo and Alexandria;• Headquarter offices, garage and some offices in EEHC building (total of 620 lamps);• Electricity compounds and power plants in Cairo.

Cooperation with NGOs


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• Within the cooperation with NGOs training of 60 electric technicians and lending them money for buying and mounting CFL and electronic ballasts to customers thus their increasing awareness

• Application of leasing program for CFL (revolving fund) in Cairo, Alexandria and Beheira DCs


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Public Lighting and Governmental BuildingsPublic Lighting and Governmental Buildings

• Public lighting and governmental buildings consumes 7%and 5.%% respectively.

Two important studies were carried out:

– Energy efficiency opportunities in governmental buildings,

– Public lighting energy efficiency through the use of efficient lighting systems.


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Energy Efficiency Initiatives in Governmental Buildings

Study recommendations: Short term recommendations:Appointment of an energy manager for each governmental building in addition to awareness programsMedium term recommendations : Implementing retrofits of the current governmental building facilities especially for the lighting system, in addition of improving power factor for these buildings. Long term recommendations: Developing governmental procurement guidelines to take into consideration energy efficiency concept. This stage will rely on the results and experience gained from the medium term recommendations.

• The Ministry of Electricity and Energy has taken the initiative of starting by its own buildings.

• The electricity distribution companies started already implementing energy efficiency measures in their administrative buildings where real savings have been achieved


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Energy Efficiency Initiatives in Governmental Buildings

Implemented Power Projects in Governmental Buildings

Company nameBuildingInvestm

ents

Saving in L.E.

Technologie used

Power factor

Saving Energy

KWH /year

Saving emission of CO2 in Ton/year

BeforeAfter

South Cairo DC Co.

Boulak ElDakrour network building

2749428015Electronic

ballast& CFL0.60.94

140060 (55%)

84

Admin building for ElHaram region


ballast& CFL0.590.94

173600(71%)

103

Canal DC Co.Main governomental

building8694037716

Electronic ballast& CFL

189000(40%)

120

North Delta DC Co.

Admin building for Potable water In

ElMansoura4036254000


0.80.93141000(64%)

85

Admin building for Potable water In Kafr

ElSheikh3068524216


0.86132400(25.8%

)19.2

North Cairo DC Co.

Admin building at Nasr City


ballast& CFL0.50.9515000090

0.730.99

Heliopolis buildingUnder execution

South Delta DC Co.

Admin building 3777416400Electronic

ballast& CFL0.640.9982000249

Information center building

Electronic

ballast& CFL

Canal DC Co.Main governomental

building8694037716Electronic

ballast& CFL 189000110

El Beheira DC Co.

Damanhour central building3177359000Using capacitors0.650.92295600177

Agriculture admin building

Under execution

• The governmental buildings consumption for year 2005/2006 is 4206 GWh representing 5.5% of the total consumption and costs 842 M L.E. (tariff is 20 pts /KWh )

• The equivalent fuel consumption is 2.05 MtOE and the CO2 emissions is 6.1 MTons.

• Saving 10% of this consumption means saving: 0.2 MTOE,0.61MTons of CO2 and 84.2 ML.E

• National program for extending this activity is required to increase the savings with considerable value.


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Expected Energy Savings from Governmental Buildings

• The public lighting consumption for year 2005/2006 is 6489 GWh representing 7% of the total consumption and costs 2.14 Billion L.E. (Tariff for public lighting is 33.1pt /KWh)

• The equivalent fuel consumption is 3.16MtOE and the CO2 emissions is 9.5 MTons.

• Saving 10% of this consumption means saving: 0.3 MTOE, 0.95MTons of CO2 and 214 ML.E


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Expected Energy Savings from Public Lighting

• Annual savings realized from just 10% of the consumption:

0.5 MTOE

1,56 MTons of CO2

300 M.L.E.

• Legislations are needed at the national level to apply energy efficiency measures in each governmental buildings.

• Coordination with the local authorities to use efficient lighting system


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Expected Energy Savings from Both Governmental Buildings and Public Lighting


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A ministerial decree of the Minister of Industry was issued for applying the specifications and the energy efficiency labels for three selected appliances (Refrigerators, air conditioners and washing machines).

Accredited Energy Efficiency Testing Laboratories have been erected at New and Renewable Energy Authority premises:

The Testing lab. for Refrigerators, Washing Machines has been completed

The Photometric Testing Lab. for Efficient Lighting Equipment has also been completed

The testing lab for Air Conditioners will be ready by end of 2007.

Energy Efficiency Labels and Standards:

Refrigerators and Washing Machines Energy Efficiency Testing Labs. at

NREA

Refrigerators and Washing Machines Energy Efficiency Testing Labs. at

NREA


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Energy Efficiency Labels and Standards:

The electricity savings are calculated based on energy consumption of the current appliances’ models as well as the Egyptian energy efficiency standard limits for the years 2003 and 2005.


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Energy Savings from Labels and Standards Program:

– Lighting loads represent the highest energy consuming application with around 34% of the total consumption followed by the

refrigerators 22%, washing machines 18%, and air conditioning 12%.

– Since the residential consumption is 36% out of the total consumption, than the consumption of the three selected

appliances represents around 15% of the total energy consumption

– Starting by a saving of 10% from the use of efficient electrical appliances, the following could be achieved:

0.05 MTOE 0.15 MTons of CO2

•


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Residential energy pattern consumption survey reveals that:

Legislation for checking label presence in the shops and enforcement steps of gradually increasing severity.

Propose a program for the incentives and penalties regarding the commitment towards the developed standards and labels.

Set a strategy and recommendation plan to ensure that local manufacturers will be able in the future to produce and (or) assemble appliances in compliance with the Egyptian efficiency standards.


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Substantial savings could be achieved subjected to legislations:


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Residential Energy Efficiency Building Code

A ministerial decree (482/2005) by the Ministry of Housing Utilities & Urban communities has been issued on 20/12/2005 for enforcement of E.E. code for residential buildings.

The Ministerial decree for the commercial buildings will be issued within the next few months.

Work is undergoing for developing an energy efficiency code for the administrative buildings.

Legislation is needed for ensure enforcement mechanisms for adoption of energy efficiency building codes where the expected savings could reach 20 to 25% of the consumption.


1.08MTOE

En

ergy

Sav

ings

CO

2

3.00MTons


Establishment of small power group within the EEHC to sustain the cogeneration activities beyond the project lifetime.

Training engineers from DCs on cogeneration applications.

Final version of the cogeneration system guidebook.

A power purchase agreement as well as agreement for and energy transfer from cogeneration projects, the agreement is understudy by the legal department of Egyptian Electricity Transmission Company.

Preparing the technical specifications for safe interconnection equipment.

Legal Framework

An assessment study to investigate the possibilities of using the agriculture waste (bagasse and rice straw) for electricity generation.

Report on the potential capacity and proposals for agro-waste fired small and medium CHP projects

Complete contract proposals legal aspects and incentives for the development of the CHP based on agro-wastes


Agriculture Waste

Two pilot projects were proposed for implementation but due to the increase of fuel prices, the payback period of the cogeneration pilot projects increased to 5 – 7 years.

A new approach is proposed for executing a national program for updating the database of the existing cogeneration capacity.


Maximize the utilization of the existing cogeneration capacity

Energy Efficiency Improvement & Greenhouse Gas Reduction Project

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