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Where are we

Where are we. Why Latvia. General data (1) Independent state : 1918 - 1941 Re-gained independence May, 1991 Total area - 64 589 km 2 Population - 2.46 million Population of Riga 805 997 Population density - 38.1 per km 2. General data (2) State owned energy utility Latvenergo

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Where are we

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  1. Where are we

  2. Why Latvia

  3. General data (1) • Independent state : 1918 - 1941 • Re-gained independence May, 1991 • Total area - 64 589 km2 • Population - 2.46 million • Population of Riga 805 997 • Population density - 38.1 per km2

  4. General data (2) • State owned energy utility Latvenergo • Electricity consumption 6.3 TWh per year • GDP: 2.6-3 kUSD per capita • Power consumption in 1999: 2.75 thous. kWh per capita • Power consumption per family: 1.5 - 3 thous. kWh/year • Annual costs for electricity: 100 - 200 USD/family • Annual costs for lightning: 50 - 150 USD/family

  5. Core topics to be discussed • TARGET groups for ELI program in Latvia • WHY ELI is important for Latvia • WHAT could be done • street - lighting • residential sector • commercial sector • public sector • FIRST RESULTS OF MARKET STUDY

  6. Current status of ELI program in Latvia • Inception mission – last week of March • Market assessment • Activities already underway: • street-lighting • residential sector • commercial and industrial sector • assistance to lighting norms committee

  7. To whom ELI is addressed in Latvia Target groups: • Sectors • residential • municipal street-lighting • commercial/industrial • public • Society • lighting specialists • representatives of municipalities • inhabitants • managers in enterprises

  8. Why ELI is important for Latvia? Market barriers (1) • inadequate Information (R, C, P, S) (R, C, P, S for residential, commercial, public, and streetlighting) • inadequate Financing (R, C, P, S) • lack of Lighting Norms (C, P, S) • high First Costs (R, P, S) • low Quality of Electricity Supply (R, C, P) • low priority (C, S)

  9. Why ELI is important for Latvia? Market barriers (2) • split Incentives for Energy Conservation (C, P) • no experience with ESCO concept (C, P) • poor Project Economics - pay-back 6 … 8 years (S) • lack of lighting energy auditors (C, P) • ownership Structure (S) • limited Availability (R) • disbelief in Promised Performance (R) • inefficient Regulatory Mechanisms to Ensure Product Quality (R)

  10. What could be done? Planned ELI activities in Latvia (1) 1. Assistance to Riga street-lighting project 2. Development of use of efficient lighting in residential sector through CFLs campaign 3. Dissemination of information on: - seminar - training courses

  11. What could be done? Planned ELI activities in Latvia (2) 4. Development of financial mechanisms for energy-efficient lighting: - ESCOs - loan financing (debet cards, credit cards) • 5. Support the secretariat for a Latvian committee to establish lighting norms. 6. Educational, quality, and transaction support in commercial sector. 7. Transaction support in public sector .

  12. Planned ELI activities in Streetlighting Sector (1) A. INITIAL FOCUS – Riga • transaction Support to Rigas Gaisma engineering and economical justification of Riga streetlighting project • assistance in preparation of business plan • assistance in finding the source of funding

  13. Planned ELI activities in Streetlighting Sector (2) B. OTHER MUNICIPALITIES • analysis of business plans for 7 municipalities • letters of support • C. DEVELOPMENT OF ESCO FOR STREETLIGHTING PROJECTS

  14. Planned ELI activities in Residential Sector – promotion of CFL use (1) A. Latvian energy utility Latvenergo has other priorities today (could be involved after privatisation and reorganisation)

  15. Planned ELI activities in Residential Sector – promotion of CFL use (2) B. Alternative ways – promotion through different partners • banks • first negotiations show interesting opportunities • next step – development of schemes • DH enterprises • expressed interest • financial and organisational scheme need to be determined • other possible partners – Lattelekom, Latvijas Gaze, gasoline stations

  16. Planned ELI Activities in Commercial Sector (1) • training of lighting designers in fundamental issues of energy -efficient lighting • development of lighting ESCO industry • keeping of contacts with the high-profile Riga New Town real estate development project, in which IFC in an investor

  17. Planned ELI Activities in Commercial Sector (2) • co-operate with existing financial sources of funding for energy efficiency or climate change projects that could include lighting • Mortgage and Land Bank • the Latvian Environmental Investment Fund • Baltic Clearinghouse • Danish Energy Agency • norms committee

  18. Planned ELI Activities in Public Sector • work through the ongoing World Bank project Energy Efficiency in Schools • development of ESCO market

  19. First results of the market study (1)

  20. First results of the market study (2)

  21. First results of the market study (3)

  22. First results of the market study (4)

  23. Messages from the market study • significant barrier has to be met because of “bad quality” reason • labeling problem is important • distribution of CFLs has to be expanded

  24. Latvia is the right place for ELI

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