1. Bogotá, September 2014 Energy efficiency in LAC: brief outlook of recent actions and pending challenges Daniel Hugo Bouille Climate Change and Sustainable Energy: Prospect and Challenge for LAC in the decade ahead

2. 2 Preliminary Remarks 1.There have been clear improvements and several countries are making great efforts. 2.In general, LA&C countries began later on energy efficiency and it could be unrealistic to compare the results in LA&C with those successfully executed in OECD countries. 3.It is difficult to establish “common denominators” in the region, in policy, regulatory and institutional frameworks.

3. 3 Energy Intensity Evolution According to SE4ALL objectives, it is important to remark that: On access the LA&C priority is oriented to caloric energy services Renewable represent now 25% of LA&C energy matrix Energy Efficiency is the “Hidden Energy”, where LA&C has big opportunities Not a sufficient Indicator Sector, Sub-sector and Energy services Indicators are neccesary

4. 4 Trends in policy, regulation and institutions New legislation in several countries, in addition to the existing in: Costa Rica, Brazil, Colombia. The consolidation or creation of institutions involved in energy efficiency. Tendency in most countries to establish national energy efficiency programs (or to strengthen programs already in existence), backed by the legal and regulatory support.

5. 5 Key energy efficiency actors Still dominated by the public domain. Low role of Energy Regulators and energy distribution utilities to encourage energy efficiency. No ‘Energy Efficiency –type Agencies’ created recently, except in Chile.

6. 6 Resources and financing mechanisms Generally, the funds come from national budgets or international cooperation. Effectiveness of Multilateral organizations providing support in the form of loans and/or technical cooperation. Substantial increase in the number of ways of boosting the funding due to environmental objectives. Positive trend in Public and private finance sector.

7. 7 Results of energy efficiency programs Results of energy efficiency programs Difficulties to evaluate results according to information available. The quality of the statistics and performance indicators continues to be unsatisfactory. Rebound effect is, generally, not considered. Regional Program on Base Indicators for Energy Efficiency in Latin America and the Caribbean. (participation of 11 countries).

8. 1.“stop and go” policies. Loss of personnel 2.Low institutional influence and priority. 3.Insufficient knowledge on opportunities 4.Appliances markets (small, expensive, imported) 5.Inadequate or insufficient regulations 6.Inadequate Energy Price policies 7.Up front costs as key reference. 8.Difficulties to prevent the importation of low energy- efficient equipment 9.Still lack of oriented financing 10.No ESEs or ESCOs and mistrust in the technical assistance 11.Lack of indicators to assess results and policies 12.ISO 50001 not been widespread 8 Obstacles to be overcome

9. The saving potential is still high -10/15% of energy consumption could be avoided with measures of quick repayment. The positive involvement of public and private actors is the result of: –the political support of Governments; –continuity of the policy and institutions; –ability to access financing; –knowledge on “what can be done” in each sector The existence of energy efficiency legislation in no way guarantees that there will be positive effects on energy consumption. The positive results depends on how projects and programs are adapted to national realities and systematically implemented. 9 Some lessons learned

10. 10 Some ideas 1.Political will as pre-condition 2.Good diagnosis, clear policies and conducive strategies 3.Short, medium and long term target quantification is needed. 4.Indicators to monitoring results and strategies. 5.Responsible and powerful institutions. 6.Is a cross-cutting issue and the need of institutional coordination. 7.Training, capacity building and institutional reinforcement. 8.Long term guarantee of funds is an enabling condition. 9.Supply side efficiency.. 10.International cooperation should be needs oriented.

11. 11 Many thanks for your attention! dbouille@fundacionbariloche.org.ar