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IN-FOCUS Energy Brazil leads the fight for energy efficiency u r b a n 36 WORLD November 2008 The Itaipu Dam provides 25 percent of Brazil’s energy needs Ph o t o © Al i C i A ni j d A m
The International Energy Agency (IEA) predicts that world energy consumption will grow by an alarming 55 percent between 2008 and 2030. At that rate, the number of oil barrels consumed each day would increase by 36 percent to 118 million and the use of the dirtiest fossil fuel, coal, would increase by 73 percent with disastrous effects on the environment. Countries face a stark choice: add sufficient capacity to meet these energy needs or become much more efficient in energy consumption to meet demand. Brazil, with one of the highest electricity prices in the Latin American region and as the largest consumer country in the region, was one of the first developing countries to realise that efficiency is the only way forward. “Cutting energy waste is the cheapest, easiest, fastest way to solve many energy problems, improve the environment and enhance both energy security and economic development,” says Robert Taylor, a World Bank energy specialist. A recent Inter-American Development Bank report shows exactly why Brazil is seeking energy efficiency and not new capacity. According to the IDB, if Brazil’s energy demand continues to grow at the anticipated rate of 3.5 percent per year and the country does not become more energy efficient, it will need to build the equivalent of 132 gas-powered open cycle generation plants to produce the same 57,800 GWh of electricity per year. In dollar terms, it will cost USD 21.5 billion to build the new plants — against USD 6.7 billion if they introduce energy efficiency schemes. Energy IN-FOCUS Brazil is often cited as a world leader in biofuels when it comes to energy initiatives. But this ignores the country’s pioneering role in the fight to use existing resources more efficiently. By Jonathan Andrews. As part of the drive to more efficient consumption, Brazil along with China and India has signed up to the World Bank’s Three Country Energy Efficiency Programme. According to the World Bank, cost effective retrofits in buildings and factories could reduce energy use by at least 25 percent in Brazil and Brazilian <strong>cities</strong> have also begun to remodel energy consumption through energy service companies. An energy service company is a private company that assesses the potential for energy savings in a public or private client’s facilities and then designs and implements energy saving measures. These measures include, installing low energy light bulbs, upgrading old industrial air conditioning and refrigeration systems, and improving insulation, natural ventilation and light. “Cutting energy waste is the cheapest, easiest, and fastest way to solve many energy problems.” — World Bank The savings in energy costs are often used to pay the ESCO back the capital investment of the project over a five- to 20-year period, or they are reinvested into the building to allow for capital upgrades that may otherwise be unfeasible. “One of the biggest risks banks saw in an energy service company project in Brazil was the technical risk, in that the project would not meet its savings objectives and therefore future conditional cash flow would never materialise,” says Pierre Langlois, president at Econoler International, which is consulting on the establishment of Brazilian energy service companies. The United Nations Development Programme and the Global Environment Facility, a USD 4 billion fund set up by donor countries which focuses on climate change, u r b a n November 2008 WORLD 37
Page 1: November 2008 No 1 urban WORLD Harm
Page 4 and 5: OPINION Message from the Executive
Page 6 and 7: OPINION Conflict in Africa taking t
Page 8 and 9: OPINION Coping with urbanisation Wh
Page 10 and 11: OPINION Urbanisation — the engine
Page 12 and 13: COVER STORY The future role of citi
Page 14 and 15: COVER STORY Cities - Back to the Fu
Page 16 and 17: COVER STORY China and India: a tell
Page 22 and 23: COVER STORY Urban inequalities Not
Page 24 and 25: COVER STORY The century of the city
Page 26 and 27: COVER STORY The century of the city
Page 28 and 29: IN-FOCUS Water The impact of desali
Page 30 and 31: IN-FOCUS Water 28 Ksar Ghiléne, in
Page 32 and 33: IN-FOCUS Private sector A call to t
Page 34 and 35: IN-FOCUS Transport The car of the f
Page 36 and 37: IN-FOCUS Transport The bicycle and
Page 40 and 41: IN-FOCUS Energy Cities like Rio de
Page 42 and 43: IN-FOCUS Tourism and culture The Ol
Page 44 and 45: IN-FOCUS Tourism and culture As far
Page 46 and 47: URBAN WATCH News World Habitat Day
Page 48 and 49: URBAN WATCH News Cuba UN praises st
Page 50 and 51: URBAN WATCH News Europe Record numb
Page 52 and 53: URBAN WATCH People 50 Lam Tunguaar
Page 54 and 55: URBAN WATCH Conference briefing Sto
Page 56 and 57: URBAN WATCH Conference briefing Sin
Page 58 and 59: URBAN WATCH Project round-up Transp
Page 60 and 61: URBAN WATCH Project round-up Water
Page 62: URBAN WATCH New publications Must-r

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