2. Previous Efforts in the Electricity Sector to Improve Energy Efficiency On Supply Side  Maximum use of natural gas.  Increase of generation efficiency through rehabilitation, conversion to combined cycle, and selection of large sizes for new units.  Reduction of transmission and distribution losses from 19% in 1981 to 13% in 1998, by rehabilitation of networks and installation of shunt capacitors. General Aspects Load Management Program with the support of the World Bank. Load Management strategy mainly for cement industry, and irrigation pumping. New Contracts for EHV & HV consumers based on 0.9 power factor instead of 0.8. On Demand Side Pilot Programs 13 energy audits for different industries have been completed by EEA, Alexandria Electricity Company and OEP (sponsored by USAID). Installation of Time of Use (TOU) meters on some sites of big consumers. Pilot program for distribution of 1000 CFLs in Alexandria with the support of the European Commission.

3. Duration of Execution Duration of Execution : Four years and six months Total Budget Total Budget : 5.895 M US$ Financing of the Project Financing of the Project : GEF 4.11 M US$ UNDP 0.8 M US$ (Cost Sharing)Gov. 0.985 M US$

4. Energy Efficiency Improvement and Greenhouse Gas Reduction Overall Objective The overall objective of this project is to assist Egypt to reduce the long term growth of GHG emission from electric power generation and from consumption of on-renewable fuel resources.

5. Activities to fulfill this Objective: 1 Supporting efficiency improvement and loss reduction in electricity generation, transmission & distribution. 2 Enhancing EEA capabilities in integrated resource planning (IRP). 3 Stimulating customers demand and supporting market delivery for energy efficiency services and equipment. 4 Promoting private sector involvement for investing in energy efficiency projects. 5 Enhancing regional co-operation and exchange of experience in this field. 6 Development and implementation of energy conservation measures in residential, commercial and industrial sectors.

6. High Level Coordinating Committee Project Technical Director Advisory Council Loss Reduction Team Load Shifting Team Audit & Tech Services Team Cogeneration Team Business & Finance Codes & Standards Info Promotion & Component 1 Component 2 Component 3 Team Teams Team

7. - Egyptian Electricity Authority (EEA). - Organization For Energy Planning (OEP). - UNDP - Cairo - UN Department of Economic &Social Affairs (DESA). - Building Research Institute (Egypt). - Egyptian Organization for Standards.

8. Component 1 C o m p o n e n t 1 LOSS REDUCTION, LOAD SHIFTING AND LOAD MANAGEMENT IN THE UPS 1) Reduce Transmission Losses. 2) Set Priorities for Dynamic Response. 3) Network Analysis and Control Strategies. 4) Load Shifting Through Applying Time of Use (TOU) Tariff. (TOU) Tariff. ctivities : A ctivities :

9. ENERGY EFFICIENCY MARKET SUPPORT 1) Energy Efficiency Industry Support and Promotion. 2) Energy Standards and Labeling For New Equipment. 3) Energy Efficiency Codes for the Design and Construction of New Buildings. 4) Establishment of Energy Efficiency Center. Component 2 C o m p o n e n t 2 ctivities : A ctivities :

10. Cogeneration Component 3 C o m p o n e n t 3 Establish and train a small power group within EEA;Establish and train a small power group within EEA; Establish safety and interconnection requirements forEstablish safety and interconnection requirements for parallel grid connections with small producers; parallel grid connections with small producers; Create infrastructure for EEA to purchase electricityCreate infrastructure for EEA to purchase electricity from small producers; from small producers; Establish and develop materials for a customer-trainingEstablish and develop materials for a customer-training program.and program.and Develop industrial cogeneration project.Develop industrial cogeneration project. ctivities : A ctivities :

11. Component 1 Component 1 Component 2 Component 3 0.48 MTons 8.25 MTons 3.00 MTons 0.4 % 2.7 % 7.4 % After the adoption of the developed measures, the full impact of the project activities is expected to be achieved by the year 2010. Energy savings and CO 2 emissions reduction by that year from the project components are expected to be as follows :