1. Energy Efficiency Improvement & Greenhouse Gas Reduction Project
Dr. Ibrahim Yassin
Project Technical Director
October, 2010

2. Introduction
The energy sector is playing a vital role in Egypt's economy. However, the Egyptian government currently faces a real challenge to make a strategic choice between satisfying the ever increasing national primary energy demand (depending by more than 94% on oil and gas) that is being offered to end-users with subsidized prices, and maintaining a certain level of hard currency revenues from oil and gas exports at world prices, even with a growing risk of accelerated depletion rates of national proven reserves.
For the electricity sector, the load and energy demand grows by more than 10 % per year where the load is expected to reach 39703MW and the energy GWh by year 2020.

3. Supply and Demand Sides
Meeting the ever increasing demand on electricity with a high degree of reliability and sustainability has been one of the main issues addressed by the strategy developed and implemented by the Ministry of Electricity and Energy.
The Egyptian Electricity sector has adopted strong measures in order to improve energy efficiency at both the supply and demand sides, this resulted in reducing the overall average specific fuel consumption from 340 gm to gm of oil equivalent per kWh, reducing losses from 18 % to14% in 2008/2009. Comparable efforts have been conducted on the demand side to effectively utilize the electrical energy.

4. Electricity Sector Strategy
The national strategy for Egypt’s power sector includes among others the following:
Optimize use of available energy sources and minimize environment pollution
Provide electricity with minimum price and best quality
Restructure electricity sector to optimize investments and improve electrical services
Utilize modern and sophisticated technical systems in electricity sector's operation and activities
Develop the expertise and skills of engineers and technicians working in the electricity sector.
Energy Efficiency Improvement

5. To continue the electricity sector efforts, EEIGGR Project, was started in 1999, fits very well into this strategy:
The Project with the overall objective to reduce the long-term growth of greenhouse gas emissions from electric power generation and from consumption of non-renewable fuel resources is mainly based upon higher efficiency of equipment in the sector and better know-how of the professional staff through capacity building and learning.
The Project’s aims were specifically to assist Egypt in loss reduction in the electricity transmission system and in load management, enhance the end-use efficiency by market incentives and provide further information and support for co-generated electricity.

6. Energy Efficiency Improvement & Greenhouse Gas Reduction Project
Component 1
EEIGGR
Reduce
Transmission
Losses
Set Priorities
for Dynamic Response
of Generating Unit.
Network Analysis
& Control Strategies
0.17
MTOE
Energy Savings
CO2
0.48
MTons
LOSS REDUCTION,
LOAD SHIFTING AND
LOAD MANAGEMENT
IN THE UPS
Load Shifting
through (TOU)
Tariff
Reduce transmission
losses from 7% to 5%

7. EEIGGR
Calibration and maintenance of measuring devices using high accuracy (0.01%) calibrating equipment
Program set up in cooperation with the power sector for periodical calibration of measuring equipment according to manufacturers
Assessment of dynamic response of generating units and take mitigation actions to improve their performance.
Tuning units to work under Automatic Generation Control AGC).
Component 1
Maximum use of reactive power of the generating units.
Improve the power factor through installation of capacitor banks

8. Beni Suef cement company
EEIGGR
Optimization of network planning using the up to date software
Load redistribution: The cement industry is a heavy consuming one therefore 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.
Component 1
Daily load curve of
Beni Suef cement company   

9. EEIGGR
Percentage %

10. Fuel Saving and CO2 Reduction from component 1
EEIGGR
All these activities lead to a reduction of percentage losses up to 33 kV to reach 3.8% by year 2008/2009.
Accumulated Fuel Savings from the start of the project in 1999 to 2008/2009: MTOE.
Accumulated CO2 reduction from the start of the project in 1999 to 2008/2009 : MTons

11. Energy Efficiency Improvement & Greenhouse Gas Reduction Project80
Component 2
EEIGGR
Energy Efficiency
Industry Support
2.95
MTOE
Energy Savings
Energy Standards
& Labeling
CO2
8.25
MTons
Energy Efficiency
Market Support
Energy Codes
for New
Buildings
Energy Efficiency
Center

12. EEIGGR
Energy audits using different technologies have been accomplished in industrial and commercial facilities.
Training of 60 engineers in the field of energy audits.
Some audits have been implemented.
Undertake a program for the diffusion of CFL by the DCs through replication of the leasing program.
Encourage the Local manufacturers to manufacture CFL locally (6 factories were established).
Public awareness program for the diffusion of efficient lamps through media and conferences
Encourage NGOs to implement energy efficiency projects.
Organizing Exhibitions for the Diffusion of CFLs
Component 2

13. Loan Guarantee Mechanism
EEIGGR
Loan Guarantee Mechanism
The developed scheme provide the necessary finance for the energy service companies (ESCOs) through providing guarantee to these companies to get loans from the banks
7 ESCOs have been selected and energy efficiency technologies have been adopted which can payback in less than 3 years.
Up to date 46 projects are either implemented or ongoing with a total cost of L.E. 68 million and a guarantee of LE 30 million.
Component 2

14. Loan Guarantee Mechanism
EEIGGR
Bank
ECC
ESCO
EEIGGR
CGC
END
USER
EEIGGR: Energy Efficiency Improvement and Greenhouse Gas Reduction project
CGC: Credit Guarantee Company
ESCO: Energy Service Company
EEC: Egyptian Consulting Center
100% loan guarantee
Loan payment
Loan
Installment
EE Project
Legal, accounting
and administrative support
Partial guarantee (50-70%)
Registration
Techno-economical feasibility
Reporting
Technical Support
Marketing
Subcontracted

15. Efficient Lighting Initiatives
EEIGGR
Efficient Lighting Initiatives
In Egypt, the share of lighting accounts for nearly 24 % of the total energy sold in the country.
The residential and commercial sectors consumes nearly 25% of their energy {estimated at 47% of the total energy} for lighting purposes, the lighting consumed by the industrial sector accounts for 10%, while the public lighting and government buildings lighting accounts for nearly 7%
Sector
% of total consumption
% of lighting out of sector consumption
% of Lighting out of the total consumption
Residential
39.2 25
9.8
Commercial
7.8
1.95
Industrial
33.4 10
3.3
Governmental
5.1 38
1.9
Public Lighting
6.2
100
Total
91.7 23
Component 2

16. Development of Egyptian Market for CFL’s
EEIGGR
Development of Egyptian Market for CFL’s
2000 To 2009
No. of CFLs
13.5 Million
Year

17. Decrease of Lamp Price (L.E.)
EEIGGR
Decrease of Lamp Price (L.E.)
from
Price LE
Year

18. Fuel Saving and CO2 Reduction from Lighting Applications
EEIGGR
Fuel Saving and CO2 Reduction from Lighting Applications
Accumulated Fuel Savings from the start of the project in 1999 to 2008/2009: MTOE.
Accumulated CO2 reduction from the start of the project in 1999 to 2008/2009 : MTons
Component 2

19. Cooperation with NGOs
EEIGGR
Cooperation with GEF Small Grants Program (SGP) to assist 9 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 Alex;
Headquarter offices,
garage and some offices in EEHC (total of 620 lamps);
Electricity compounds and power plants in Cairo.

20. 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
EEIGGR
Application of leasing program for CFL (revolving fund) in Cairo, Alexandria and Beheira DCs
These achievements encouraged other NGOs to submit proposal to get grants through the second stage of the project where 4 projects have been approved and other are presented.

21. Governmental Buildings
Public lighting and governmental buildings consumes 7% and 5.5% respectively.
EEIGGR
A study has been implemented to find out opportunities of energy savings in these two sectors.
The Ministry of Electricity and Energy has taken the initiative of applying energy efficiency measures in its own buildings.
The DCs have started implementing EE measures in their administrative buildings where real savings have been achieved.
Up to date energy efficiency projects implemented in governmental buildings reached more than 2000 buildings

22. Governmental Buildings
EEIGGR
Recommendations to be applied in Gov. Builds:
Short term :
Appointment of an energy manager for each governmental building in addition to awareness programs
Medium term :
Implementing retrofits of the current governmental building facilities especially for the lighting system, in addition of improving power factor for these buildings.
Long term :
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.

23. Ministry of Electricity & Energy Building
EEIGGR
Replacing 1650 Incandescent lamps by CFL:
57,750 L.E.
Investments
418 MWH
Energy Saving
86,335 L.E.
Cost of Energy Saving
8 Months
Payback Period
Mounting of capacitors to improve power factor
Case Study
500 KVAR
Capacity
60,000 L.E.
Investments
Avoid Annual Penalty of 80,000 L.E.
Benefit
9 Months
Payback Period

24. Ministry of Water Resources & Irrigation
EEIGGR #
Old Fixture Details
New Fixture Details
Demand Reduction %
Reduction
900
3 × 36- watt (120CM) fluorescent with three magnetic ballasts (150 watts)
2 × 36- watt (120CM) fluorescent with one electronic ballast (66watt)
84 watts
65%
2 × 36- watt (120CM) fluorescent with two magnetic ballasts (97 watts).
2 × 36- watt (120CM) fluorescent with one electronic ballast (66watt).
31 watts
32%
1000
4 × 18- watt (60CM) fluorescent with two magnetic ballasts (101 watts).
4 × 18- watt (60CM) fluorescent with one electronic ballast (69watt).
32 watts
300
100- watt incandescent
23- watt CFL
76 watts
76%
reduction in electric demand rating between 32% and 76%.
The total cost of the upgrade was $ 83,700
average monthly savings yield a reduction in energy bills by approximately $3,300
Simple pay back period 2.1 years

25. Supreme Council Decisions
Supreme Energy Council’s Technical Secretariat Cabinet of Ministers
EEIGGR
Supreme Council Decisions
The Supreme Council of Energy has taken a decision to develop energy efficiency programs to be applied on National Basis in the following sectors:
Street Lighting
Governmental buildings
Public utilities
Residential sector

26. Initiatives Taken By the Egyptian Power Sector to diffuse the use of efficient lighting equipment
The Ministry of Electricity and Energy has started an ambitious program for the diffusion of CFLs through the electricity distribution companies
As a first phase, 6.5 million lamps 20 watt sold to customers, the price of the lamp was 12 L.E .
The customer got one lamp free against one purchased lamp which means a reduction of 50% that bared by the electricity distribution companies.
The customer was allowed to pay the price through installments collected through the electricity bills over a period of one year

27. Energy Efficiency Program for Street Lighting
Energy consumption of street lighting in Egypt reached TWh in year 2008/2009 representing 6.2% of the total electricity consumed by the country with a cost of about L.E 2.8 billion.
A study has been implemented by the Ministry of Electricity and Energy which recommended the measures to be taken for increasing energy efficiency of street lighting and the achieved savings.
Upon recommendations of the Supreme Council of Energy, based on the results of this study, an energy efficiency street lighting program is currently implemented in coordination between the Ministry of Finance, Ministry of Local Development and Ministry of Electricity and Energy

28. Energy Efficiency Program for Street Lighting
The total cost of the program is M.L.E 260 and expected to be implemented over a period of two years.
The first phase is implemented in great Cairo Governorate with a cost of M.L.E 20
The general features of this program consist of:
Replacing sodium and mercury lamps by CFLs depending on the types of streets and in accordance with international standards
Restriction of the use of mercury vapor lamps

29. Energy Efficiency Program for Street Lighting
Expected yearly savings from this program:
Energy savings: Million KWh
Load reduction: M.W
Decrease of the electricity bill bared by the local authorities by: M. L.E 600
Fuel saving: MTOE

30. Standards & Labels Program
EEIGGR
A ministerial decree of the Minister of Industry was issued for applying the specifications and the energy efficiency labels for: Refrigerators, Air Conditioners, Washing Machines, CFLs .
Accredited Energy Efficiency Testing Laboratories have been erected at New and Renewable Energy Authority premises for:
Refrigerators
Air conditioners
washing machines
Efficient lighting equipment
Electric water heaters

31. Annual Energy Consumption for No Frost Refrigerator
Energy Efficiency Testing Labs.
EEIGGR
Level
Annual Energy Consumption for No Frost Refrigerator A
to 1.54 ≥ A B
1.84≥ B ≥ 1.54 C
2.14≥ C ≥ 1.84 D
2.43≥ D ≥ 2.14 E
2.73≥ E ≥ 2.43

32. Number of tested appliances at NREA Lab till June 2009
Energy Efficiency Testing Labs.
Number of tested appliances at NREA Lab till June 2009
EEIGGR
In addition to 126 Air-conditions and more than 2000 CFLs and 500 electronic ballasts

33. Savings achieved from efficient equipment:
EEIGGR
Lighting loads represent 34% of the total residential consumption followed by the refrigerators 22%, washing machines 10%, and air conditioning 12%.
Since the residential consumption is 39% out of the total consumption, then the consumption of these appliances represents 15% of the total energy consumption
Saving 10% from the use of efficient appliances, could achieve around 0.36 MTOE and 1 MTons of CO2

34. Proposed measures to enhance the S&L Program
EEIGGR
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.

35. Building Code
EEIGGR
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, and (190/2009) for E.E. commercial buildings code
Developed administrative building code has been incorporated in the Unified Building Law.
Legislation is needed to ensure enforcement mechanisms for adoption of energy efficiency building codes where the expected savings from S& L program and EE building codes could reach 20 to 25% of the consumption.

36. Energy Efficiency Center
Analysis of the previous studies in the field of energy efficiency in Egypt to assess the energy efficiency potential.
More than 25 seminars were prepared at different establishments in addition to radio, television programs and press articles.
Establishing a database for consumers of over 500 kW, as well as energy audits conducted through the project.
Establishing website for Energy Efficiency Center in English
and started the Arabic version
Establishing a database for energy consumption of governmental buildings for all distribution companies.
EEIGGR

37. Energy Efficiency Improvement & Greenhouse Gas Reduction Project
Component 3
EEIGGR
1.08
MTOE
Energy Savings
Legal
Framework
CO2
3.00
MTons
Cogeneration
Agriculture
Waste

38. Legal Framework
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.
EEIGGR

39. Agriculture Waste
EEIGGR
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

40. Maximize the utilization of the existing cogeneration capacity
EEIGGR
An Agreement with Arab Contractors Co. has been signed to develop the cogeneration unit at Alu Misr for its parallel operation with the grid.
The unit load factor has improved and reached 80% instead of its present value of 57%

41. Cooperation with similar projects in some Arab countries
EEIGGR
Cooperation with similar projects in some Arab countries
HBRC training on residential and commercial building codes to 25 engineers from Palestine, Jordan and Lebanon.
Alexandria D.C training to 65 engineers from Syria in the field of energy audits.
IRP/DSM training to 20 engineers from Saudi Arabia

42. Cooperation with similar projects in some Arab countries
Arab Republic of Syria in the field :
- Specifications for energy efficiency electrical appliances - The financial rules applicable in the United Nations Development
Programme(UNDP)
- Preparing energy efficiency code for residential and
administrative buildings - Training to improve energy efficiency in electric power stations
Kingdom of Jordan in the field : - Training on the energy efficiency code in partnership with
Housing & Building Research Center (HBRC)
Kingdom of Saudi Arabia in the field : - Training on energy audits and cogeneration projects
Republic of the Sudan in the field: - Preparation of joint seminars in the field of energy improvement in
public lighting

43. Preparation for the project second phase
EEIGGR
Due to the satisfactory outputs of the current project a second phase including 2 components is expected to start early 2011, A Project Preparation Grant (PPG) of US$ 100,000 was allocated to cover the following activities:
Updated Market Study of the CFL (GFK- Local Consultant)
Updated assessment of the market potential within the main target sectors
Assessment of local production capacities
Analysis of the key barriers to phase out inefficient lighting
Identification and evaluation of the feasibility of the possible distribution and financing mechanism for accelerating the market transformation

44. Market Study of the S&L for the rest of appliances (GFK-LC)
Updated assessment of the level of implementation and enforcement of S&L program
Decide of selected criteria for S&L more appliances
Compilation of the market information
Review of testing facilities
Preparation of the second phase project document (International Consultant)
Finalizing the project document and CEO endorsement request of the project in accordance with UNDP/GEF formats

45. Efficient Lighting Phase 2
EEIGGR
Facilitate a sustainable market transformation with the objective to completely phase out inefficient lighting in both residential and governmental sectors through:
An enabling regulatory frame work for phasing inefficient lighting.
Develop innovative and attractive financing mechanism for energy efficiency lighting projects
Improve energy management of public buildings
Increase awareness through public campaigns
Enhance capacity of local manufactures to improve the quality of their products

46. Efficient Lighting Phase 2
EEIGGR
Expected energy savings from 70% GLS phase out or complete GLS phase out

47. S & L Program Phase 2
EEIGGR
It will strengthen the regulatory and institutional framework,
develop monitoring and enforcement mechanisms,
provide training to public authorities, appliance professionals, energy suppliers and other relevant stakeholders
Due to the lack of consumers’ awareness, the demand for the efficient appliances is still low, and the retailers don’t grasp the meaning of energy labels and how it can be used to recommend better energy performing products.
The project will promote the awareness of both retailers and consumers of energy efficient appliances.
The project will strengthen the capacity of the local manufacturers to produce appliances complying with the new standards.

48. S & L Program Phase 2
EEIGGR
Expected energy savings from refrigerators as a result of a strengthened S&L scheme

49. Thanks Energy Efficiency Improvement & Greenhouse Gas Reduction
Project
Thanks