1. GHG mitigation through energy eficiency and renewable energies 1 Ana Arrocha MLED Program Chief of Party Climate Change Mitigation: Innovative solutions to reduce the carbon footprint of Industrial Areas INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES | MEXICO 13-14 Oct 2015

2. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES 2 Mexico Low Emissions Development Program (MLED) General Objective Support Mexico’s efforts to pursue long-term, transformative development and accelerate sustainable, climate-resilient growth while slowing and eventually reversing greenhouse gas emissions.

3. Synergies promoting EE+RE market & CO 2 e emissions reductions Synergies promoting EE+RE market & CO 2 e emissions reductions Private and public users (implementing EE + RE) Financing services institutions Technical services organizations CATALYZING 3

4. Motivation and technical context: Low Emissions Development Plan Source: INECC, 2013 with USAID support 4

5. Case study : “Electric and Thermal Energy Efficiency Program” in 12 industrial companies GHG emissions calculation tool and management platform for Mexico GEI Program CESPEDES GHG emissions calculation tool and management platform for Mexico GEI Program CESPEDES 5 GHG mitigation through energy efficiency and renewable energies Study on energy efficiency and renewable energy potential in industrial parks Success story: Energy audit, EE & RE implementation at Children’s Hospital La Villa

6. 6 Electric and thermal energy efficiency program with CCE-CESPEDES 6 Case Studies Electric energy savings potential Range: 2% - 32% Average: 10% Electric energy savings potential Range: 2% - 32% Average: 10% Thermal energy savings potential Range: 4% – 34% Average: 15% Thermal energy savings potential Range: 4% – 34% Average: 15% Per company, an average of 10 energy saving measures were identified (electrical and thermal).

7. Average investment MXN$4,150,000/ company Simple Payback 0.5 a 4.5 years Average: 2.5 years Investment MXN$600,000 to MXN$10,400,000 Economic benefits (yearly) MXN$330,000 to MXN$2,350,000 Economic benefits and investments for “thermal energy projects" Economic benefits and investments for “thermal energy projects" Average savings MXN$1,560,000/ company/year 7 Case Studies

8. Average investment MXN$4,330,000/ company Simple Payback 1.1 a 4.2 years Average: 2.5 years Investment MXN$950,000 to MXN$16,500,000 Economic benefits (yearly) MXN$310,000 to MXN$14,900,000 Average savings MXN$2,640,000/ company/year 8 Case Studies Economic benefits and investments for “electric projects" Economic benefits and investments for “electric projects"

9. Investment MXN$ 300,000 Simple Payback 3 years Cost savings MXN$ 80,000 / year 9 Floor area3,100 m 2 No of beds90 No. of employees459 Consultations per year Around 100,000 Number of collectors32 collectors Energy equivalent supply 185,482 kJ Annual fuel (diesel) savings 12,623 liters/year (21.7% reduction according with baseline of 58,190 liters/year set from August 2012 to July 2013) Volume of water produced 10,000 liters at 60°C GHG mitigation615 ton CO 2 e during life of the system Children’s Hospital La Villa Success story

10. Web-based platform to help private industries and businesses to estimate their emissions. Emissions calculations scope: 1, 2 and 3. Management extension allows the analysis of “what if” scenarios. WRI and SEMARNAT selectable methodologies. Web-based platform to help private industries and businesses to estimate their emissions. Emissions calculations scope: 1, 2 and 3. Management extension allows the analysis of “what if” scenarios. WRI and SEMARNAT selectable methodologies. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES 10 GHG emissions tool and management platform for Mexico GEI Program -- CESPEDES GHG emissions tool and management platform for Mexico GEI Program -- CESPEDES

11. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES 11 There is significant potential for RE in the development of new industrial parks. Mexico has an average irradiance of 5 kWh/m 2 /day Most of the industrial parks are in ideal irradiance regions. PV potential market in Mexico industrial parks

12. Technical and Economic Evaluation Guides 12 Market strategy for enabling sustainable businesses Support to NAFIN sustainable financing program (In partnership with GIZ) Support to NAFIN sustainable financing program (In partnership with GIZ) Energy Efficiency Matrix Support for other financing of EE and RE measures Directory of Energy Efficiency Consultants and training for new Consultants GHG emissions tool and management platform SUPPLY DEMAND Energy audits for CCE-CESPEDES Need for Knowledge: Workshops and Seminars How to estimate GHG emissions? Poential savings at State and Municipal governments Need for technical assistance for private companies in EE + ER projects

13. Synergies promoting EE+RE market & CO 2 e emissions reductions Synergies promoting EE+RE market & CO 2 e emissions reductions Private and public users (implementing EE + RE) Financing services institutions Technical services organizations CATALYZING 13

14. Title of presentation 14 Speaker‘s name: Ana Arrocha Position: Chief of Party Institution: USAID Mexico Low Emissions Development Program Address: Insurgentes Sur 826 piso 2 ala sur, Col. Del Valle, México D.F. Phone: +52 (55) 5523-2848 Email: Ana.Arrocha@tetratech.com