Delivering the transition to energy efficient lighting - Chile

Project General Information



00940


5150

Climate change

Climate Change

V





I.                    Summary of the national energy situation                  

 

Chile has an installed capacity of approximately 17 000 MW: 74% is in the Central Interconnected System, (SIC), 25% in the Norte Grande Interconnected System (SING), and less than 1% in medium-sized systems in Aysen and Magellan Regions. Taking into account the expected growth trend until 2020, it is projected to increase in electricity consumption around 7% per year. This represents the challenge of incorporating 8 000 MW of installed capacity in the country. Today the power matrix is composed of 3% share of NCRE, 34% hydropower and 63% of thermal generation.

 

 

Chile’s Electricity Market in 2011, Gross Generation:

 

Great North Interconnected System

 

Installed capacity: 4,344 MW

Max. Demand: 2,162 MW

Generation: 15.9 TWh

Thermal Generation: 100%

Population: 6%

 

Central Interconnected System

 

 

Installed capacity: 12,488 MW

Max. Demand: 6,881 MW

Generation: 46.1 TWh

G. Hydro: 45% - 65%

Population: 92%

 

Aysen Region System

 

 

 

Installed capacity: 49 MW

Max. Demand: 20 MW

Generation: 134 GWh

Population: 1%

 

Magellan Region System

 

 

Installed capacity: 89 MW

Max. Demand: 40 MW

Generation: 269 GWh

Population: 1%

 

 

 

Currently the Ministry of Energy is developing an Action Plan for Energy Efficiency up to 2020 which will provide the detailed guidance to achieve the goal of reducing energy waste in the country. The Government of Chile began in 2005 the implementation of actions to increase energy efficiency with the creation of the National Programme on Energy Efficiency, this effort was institutionalized in early 2010 with the creation of the Division of Energy Efficiency at the Ministry of Energy focused on policy development, and the Chilean Energy Efficiency Agency (AChEE), focused on implementation of policies.

 

II.                 Summary of the national efficient lighting situation in Chile  

 

The Government of Chile is promoting the transition to efficient lighting as a pillar of its Energy Efficiency Strategy. As noted above, the National Energy Strategy identifies as a priority area the development of Minimum Energy Efficiency Performance Standards (MEPS) and supporting policies to encourage efficient lighting, in this sense, the actions have been implemented are:

 

Regulatory Mechanisms

 

The Ministry of Energy of Chile has the power to issue MEPS since the publication in the national gazette (June 2012). The Ministry of Energy expects that with the support of GEF and UNEP the country will define and adopt national standards for efficient lighting products (including CFLs and LEDs and other products to be identified as appropriate).

 

 

Supporting Policies

 

Mandatory energy efficiency labeling for incandescent lamps, compact fluorescent lamps and fluorescent tubes are in place since 2007 (Specification PE Num. 05/06/2). As a result Chilean consumers can find the energy efficiency label the products listed; this is a way to deliver clear and reliable information on the efficiency and performance of lighting products.  

 

From 2007 to date the Ministry of Energy has spearheaded campaigns disseminating information on the proper use of energy, the campaigns highlight the use of energy efficiency labels and advice for individuals to make them chose efficient light bulbs. 

 

Between 2008 and 2009 the Government of Chile carried out a program to replace inefficient incandescent bulbs with CFLs which distributed nearly three million CFLs in vulnerable sectors of the population under the programme “Iluminate con Buena Energia”. This action helped to disseminate and increase awareness on this efficient technology in the country.

 

Monitoring, Verification and Enforcement

 

The Superintendencia de Electricidad y Combustibles is responsible for overseeing regular control and testing in accredited private laboratories for those products following the national labeling scheme (incandescent lamps and CFLs).

 

Environmentally Sound Management of Lighting Products

 

Chile’s environmental intents for this project are threefold:

 

1)      To reduce the greenhouse gas and hazardous heavy metal emissions from fossil fuel combustion that is related to electricity generated for lighting;

2)      To ensure that efficient lighting technologies contain minimal amounts of hazardous materials; and,

3)      That at end of useful life, lighting hardware is collected, treated and adequately managed, so that it has minimal solid waste impact, preventing also exposure risks to health and the environment.

 

It is expected that the ministries of Energy and Environment work closely in order to develop activities along these lines.

 

So far, there have been discussions at the national level to develop a national legislation for electronic waste (therefore including lighting products), though the future of this legislation is uncertain at this stage. In addition some private sector companies have undertaken communication activities for consumers on the treatment of used mercury added lamps. This issue constitutes an important priority for the Ministry of the Environment.

 

In light of the commitment of Chile’s government to promote energy efficient lighting, the country joined the UNEP en.lighten initiative in 2012 and was selected as one of its seven pilot projects worldwide. In this context and under the leadership of the Ministry of Energy and the technical support of the en.lighten initiative Chile is currently completing a National Efficient Lighting Strategy leading to the progressive phase-out of inefficient incandescent lamps following a country-led approach. The strategy is setting national objectives and a detailed roadmap to phase-out inefficient incandescent lamps. Activities include:

 

·         Identifying national phase-out and efficient lighting objectives.

·         Establishing national mandatory lighting MEPS, based on global best practice, accepted international standards and Chile conditions. 

·         Creating policy support mechanisms such as: economic and financial incentives and tools, information and awareness raising campaigns and other market-based actions.

·         Devising a national quality control mechanism to ensure compliance with the lighting MEPS

·         Designing an environmentally sound management scheme with a robust legal framework

·         Creating a locally appropriate communication, information and awareness raising campaign

·         Establishing roles, responsibilities and an achievable timeline for implementing the strategy.

·         Considering how to best finance the strategy to address initial costs and to measure and capture long-term economic benefits

 

Chile’s strategy is being developed in consultation with the relevant national public and private stakeholders following a participatory, multi-stakeholder process. Chile is being supported via existing en.lighten methodology and guidance. The en.lighten global Centre of Excellence with its network of efficient lighting experts supports Chile officials and stakeholders in assessing the most appropriate channels to ensure the transition. en.lighten’s online support center will help to strengthen Chile’s capacities by delivering targeted information, technical webinars and training videos.

 

 

III.               Summary benefits of the transition to energy efficient lighting

 

Under this Project, the transition to efficient lighting in the residential, commercial/industrial and outdoor sectors would result in expected environmental benefits of 1.20 million tonnes annual CO2 reduction directly. Annual energy savings in terms of reduced electricity consumption would be 2.80 TWh, which is 4.81% of total national electricity consumption and 34.4% of electricity consumption used for lighting. The annual costs savings in terms of avoided electricity bills and lamp costs would be about 486 million USD.

 

 

 

 

 

 

 

Annual benefits of the transition to efficient lighting in Chile

(domestic, commercial/industrial and outdoor sectors)

 

CO2 emission reduction (Mt)

Energy savings (TWh)

Cost savings (million USD)

1.20

2.80

486

 

With the phase out of only inefficient incandescent lamps, the environmental benefits would be 0.679 million tonnes annual CO2 reduction directly. Annual energy savings in terms of reduced electricity consumption would be 1.59 TWh. The annual costs savings in terms of avoided electricity bills and lamp costs would be about 320 million USD.

 

B. 2. Incremental /Additional cost reasoning:  describe the incremental (GEF Trust Fund/NPIF) or additional (LDCF/SCCF) activities  requested for GEF/LDCF/SCCF/NPIF  financing and the associated global environmental benefits  (GEF Trust Fund/NPIF) or associated adaptation benefits (LDCF/SCCF) to be delivered by the project:  

The project will strengthen the capacity of the Government of Chile, raise awareness among consumers and interest of lighting industry key players about efficient lighting technologies. The project will speed up the transfer of low-carbon, high efficiency technologies for the lighting sector. This will be translated into comprehensive national policy and regulatory frameworks and create the necessary conditions for technology transfer benefiting Chile.

 

The overall objective of the proposed project is to accelerate the transition to energy efficient lighting technologies in Chile through the development of a national efficient lighting policy and practical interventions that ensure success of the transition, thereby reducing GHG emissions, mitigating climate change and increasing substantive resources for the development of Chile. The project consists of four major components:

 

Component 1: Strengthening MVE capacities to ensure an effective transition to efficient lighting

 

The success of a transition strategy depends on a well-functioning system of monitoring, control, and testing facilities to ensure enforcement and full compliance with MEPS. International experience indicates that unless effective market surveillance systems are established and enforced, substandard products continue to enter national markets, reducing energy and financial savings and thus spoil the market for high performance products.  Poor quality products disappoint users and lead to complaints about the transition to efficient lighting. MVE activities include:  continuous assessment of the process to verify product efficiency; validating declarations of conformance; and, enforcing actions against suppliers or retailers of non-compliant products.

 

This project component will develop or strengthen the operational elements that will guarantee compliance with lighting MEPS. If necessary, lighting test facilities will be developed according to the specific needs and situation in Chile. Any MVE scheme will comply with Chile’s legal system and with the framework of Component 1 (above).

 

To enhance the MVE capacity in Chile, the Project will facilitate sharing of information and skills between neighboring or similar countries. The project will encourage regional cooperation and harmonization to strengthen MVE schemes and to discourage entry of poor-performance products.

 

The Project will also develop Monitoring, Reporting and Verification (MRV) actions to evaluate the effects of the transition to efficient lighting in Chile in terms of reduced electricity consumption and carbon emissions. Actions may include checking and verifying the original baseline data and comparing it with independently published data; developing a model and sampling protocol for verification; and implementation of periodic, spot measurement tests in selected areas in order to assess the progress in the transition to efficient lighting brought by the Project. Longevity of use of installed lighting products in the field is a major concern for any energy efficiency lighting program. This activity will consider and evaluate existing Clean Development Mechanism protocols and any other MRV best practices.

 

Key actors include governmental authorities in change of market control and customs, such as the Superintendencia de Electricidad y Combustibles in close coordination with the Ministry of Energy. This component will be directly supported and co-financed by the National Lighting Test Center (Beijing) and its joint collaboration with UNEP, the Global Efficient Lighting Center, also located in Beijing.

 

Expected outputs:

 

1.1.1 Implementation of legal and administrative processes to improve compliance with national standards

1.1.2 Technical training and support to government authorities and customs administrations

1.1.3 Strengthening of national laboratories to verify compliance with standards

1.1.4 Monitoring, Reporting and Verification actions to assess progress in the transition to efficient lighting

 

Component 2: Implementing environmentally sound management for lighting products

 

Concerns over the mercury content of CFLs with regard to health and the environment may be overstated in the media, but are nonetheless widespread. These concerns are an obstacle to the use of CFLs. To reduce this barrier and to address public concerns, en.lighten’s global task force experts recommend that: the doses of mercury in lamps be reduced to the maximum allowable content in line with international best practice; and, countries adopt environmentally sound management systems to ensure that  mercury and electronic waste is not released into the environment. This advice is consistent with global initiatives such as the “Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and their Disposal,” and the “Intergovernmental Negotiating Committee” for the development of a legally binding agreement on mercury and other related regional agreements.

 

This component includes the implementation of an operational framework to establish a collection scheme, recycling facilities and/or sound disposal systems, as appropriate, to ensure the sustainable end of life treatment of spent lamps. Actions will conform to the national legal waste management framework for efficient lighting products developed under Component 1 (above). The  system will be adapted to the conditions of Chile to ensure effectiveness.

 

The project and its private sector partners will coordinate activities among countries within the region and with other organizations to ensure conformance with the Basel Convention. The system will collect and recycle magnetic ballasts that may contain polychlorinated biphenyls (PCBs), and, CFLs and other mercury-added lamps (linear fluorescent and mercury vapor) that presently could be disposed of in an environmentally unsound manner.

 

These activities will be implemented in close partnership with private sector organizations (lamp manufacturers, recycling companies, importers, distributors and retailers) as well as the Basel Convention Regional Centers. These activities will be co-financed by private sector organizations. 

 

Expected outputs:

 

2.1.1 Implementation of a national framework on environmentally sound lamp waste management;

2.1.2 Training for governmental authorities, retailers and collection bodies;

2.1.3 Awareness raising and communication campaigns to promote collection and recycling of spent lamps;

2.1.4 Implementation of a national waste management system for spent lamps, including facilitating the process to set up facilities and international coordination for the environmentally sound export/import of lamp waste; and

2.1.5 Development of systems and marketing campaigns providing incentives associated with the recovery of mercury-added lamps.

 

Component 3: Lighting innovation – accelerating the use of solid state lighting and controls

 

Solid state lighting and controls used throughout Chile could significantly reduce electricity consumption and related GHG emissions. Energy consumption (watt-hours) for lighting can be reduced by deploying technologies that require lower input power (watts); and, by reducing unnecessary use (hours) through automatic controls or changes in user behavior.

 

The en.lighten initiative Partner Countries, including Chile, express a strong interest in demonstrating, evaluating and deploying light emitting diodes (LEDs), a solid-state lighting technology that meets or exceeds the efficiency of CFLs and incandescent lamps. LEDs for general illumination applications are available in developed markets, but higher initial costs and unfamiliarity among users are two of the common barriers to their deployment in developing countries. Nonetheless, many developing country governments note that LED lamps do not contain mercury and therefore may be an alternative to mercury-added lamps. The alternative option of using LED lamps is often raised by countries that experience challenges establishing a programmed for the collection, recycling and treatment of mercury-added lamps.

 

Lighting controls and the education of lighting users so that they can reduce wasted lighting energy also offer significant energy efficiency benefits. However, they are not widely applied in developing countries due to unfamiliarity with the technology and its benefits, limited understanding of how to use controls in lighting systems, and a lack of appropriate products for developing country conditions.

 

Through this project Chile will promote the use of LEDs and controls. Through stakeholder consultations, the project will develop a menu of market-pull activities including:

 

·         Training and information about LEDs and controls and how they are best applied in each sector (domestic, commercial/industrial and outdoor lighting), drawing upon international best practices, case studies and published evaluations;

·         Demonstrations and evaluations of LEDs and lighting controls, including case studies of financial models for offsetting the higher initial first cost of high efficiency products (such as bulk procurement discounts, leasing schemes, micro-financing, energy service company financing, low-cost loans for pre-qualified products and installation services, and other strategies proven to work in developing countries);

·         Best practice technical advice for LED and lighting controls procurement, such as specification development and product performance evaluation methods;

·         Development of quality specifications and/or MEPS for LED lamps and lighting controls to protect local markets and consumers from inferior products at lower price points;

·         Technical advice and training via the en.lighten expert network for laboratories that intend to be qualified to test and evaluate the performance of LED lamps and lighting control products; and,

·         If requested by industry or economic development authorities, technical consultations will be arranged by en.lighten for manufacturers or assemblers of lighting products, so that they can learn about and potentially produce LED lamps and controls.

 

Key actors include governmental authorities such as the Ministry of Energy, utilities part of the Asociación Gremial de Empresas Eléctricas and private sector companies.  

 

Expected outputs:

3.1.1 Enhancement of the National Efficient Lighting Strategy with more stringent MEPS  to  accelerate demand for advanced lighting technologies and systems.

3.1.2 Supporting policies to increase user acceptance and demand for higher efficiency lighting products and systems.

3.1.3MVE scheme to assure high quality products and to secure the expected energy and GHG emission benefits.

3.1.4 Implementation of a local demonstration programme to introduce and evaluate LEDs and lighting controls among selected tiers of society.


Full Size Project(FSP)

National


Europe


Chile


GEF Trust Fund

Stage Grant to UNEP Grant to other IA Co-Financing UNEP Fee Other IA Fee
Project
$ 2,485,713.00 $ 0.00 $ 9,419,843.00 $ 236,143.00 $ 0.00


No





External



Executing Agency Category
URC (UNEP Risoe Centre )

Partner Category

Name Category Period
Geordie Colville


Weak government support, which leads to inadequate and ineffective enforcement or policies and regulations. Policies might be recommended but not implemented Delayed implementation of activities that are baselines for specific incremental activities of the proposed project Low level participation from the private sector actors including lighting technology manufacturers and distributors.




0





Fiscal Year Project activities and objectives met


$ 0.00


No