The Brazilian Energy Efficiency Market
october 2002
Eduardo Moreno
ABESCO President - Associação Brasileira
das Empresas de Serviço em Conservação de Energia
www.abesco.com.br [email protected]
VITALUX – Performance Contract Director
[email protected]
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Agenda
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Historical
EE Market Transformation
Abesco – Main Activities
Performance Contracts Implemented
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Historical
• 1.994 – Real Plan – inflation fell dramatically
• Entrepreneur learn to know cost composition of
their products in a stable economy
• Increase interest for some Companies to work as a
Esco
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Historical
• First 4-5 years few projects, barriers – customer / financing /
difficulties to spread win-win concept
• 1.997 – Abesco was founded
• 1.998 - Utilities Privatization – 1% - from revenue goes for
energy efficiency projects
• 2.001 - Energy Crise - changed the customer behavior
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Market’s Transformation
• Energy Efficiency has became a good business,
new agents selling energy solutions:
– ESCO: core business is energy solutions – electrical energy,
water, gas, fuel, generation, cogeneration and support in a
regulatory aspects
– SERVICE’s: companies that sell energy solutions in order to
agregate value to be faithfull with the clients . Ex.: Fuels
Distributors ( Petrobras, Shell) / Utilities Energy Distribution
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Market’s Transformation
• ESCOs Profile :
Abesco members
• Last year increased from 28 to 74 companies
• More than 50 % – small Companies
• Few of them Know how to work in a performance
contract
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Market’s Transformation
• EE Utilities Profile :
10% - Has its own ESCO
15% - Intend to start its own ESCO
90% - Contract ESCOS
5% - Work with Performance Contract
10% - Abesco’s members
Fonte: ABESCO - 08/02 - universo pesquisado: 30%
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Abesco
• Convenium with FIESP – the biggest industry
Federation in Brazil - Join ESCOs and Industrial
End Users
• Provide FIESP with technical support
• ABESCO enlarge ESCO concept, join important
partners as the main Federations and Association
• Discuss and spread Performance Contract
Concept
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Abesco
• Review the Rule to expand the profile
members, accepting international members
• Join the Financial Market (FEBRABAN).
• Propose the quality Model for the Sector.
• Join all of the agents ot network Segment
instituting the Brazilian Energy Efficiency
Industry
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Energy Efficiency Industry
ABESCO
Process Certification
Customer
ESCOS
`Financial Market
ABILUX
ABINEE
ABRADEE
Outros
Motores
ABRAVA
Instalação
ABDIB
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Outros Agentes
SINDINST.
$
Energy
Efficiency
(Performance
Contract)
OCTOBER/2002
Partners from the Sector
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( 94) ABILUX - Associação Brasileira da Ind. de Iluminação
(123) SINDINSTALAÇÃO - Sind. da Ind. de Instalação de S.P.
(554) ABINEE - Ass. Bras. da Ind. Elétrica e Eletrônica
(134) ABDIB - Ass. Bras. da Infra-Estrutura de Base
(32) ABEGAS - Ass. Bras. das Empresas de Gás
( 45) SINDICEL - Sind. da Ind. de Condutores Elétricos, Trefilação e
Laminação de Metais não Ferrosos do Est. SP;
( 77) ABCE - Ass. Bras. de Concessionárias de Energia Elétrica;
(52/Energia) ABCE - Ass. Bras. de Consultores de Engenharia;
(400) ABRAVA - Ass. Bras. de Refrig., Ar Condic., Ventilação e
Aquecimento;
(1400) ABIMAQ - Ass. Bras. da Ind. De Máquinas e Equipamentos;
(59) ABRACE - Ass. Bras. dos Grandes Cons. Industriais de Energia;
(44) ABRADEE - Ass. Bras. Distribuidores de Energia Elétrica
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Partners from the Sector
Financial Market:
- FEBRABAN
- Cx. Ec. Federal
- ANB-AMRO
- Banco Mundial
- Banco do Brasil - Unibanco
- Banco Safra
- Sudameris
- IFC - International Finance Corporation
- BMC
- Nossa Caixa
- Itaú
- BNDES
Venture Capital and Special Funds
- A2R - ABB - FondElec - NVST Brasil - Petrobrás - Veritel
Assurance
- Geraseg - Cibrasec
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Integration for Energy Efficiency
Industry
Integration Seminars
1o. 29/Nov/01: Abesco / Abilux / Sindinstalação / Fiesp /
Febraban and Procel.
2o. 10/Set/02: Abesco / Abinee / Abdib / Abilux / Abradee /
Sindinstalação / Fiesp / Febraban e Procel.
Implement the same Fiesp Convenium for other States
• By Abesco’s regionais
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“TOOLS”
Certification (Quality)
– Convenium ELETROBRÁS / PROCEL / ABESCO
model will be ready until 2.003 / march
– Involves ABNT / INMETRO / Certification
Companies / Procel / Cepel / ABESCO
– ABESCO will facilitate capacitation and training
for Escos
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“TOOLS”
Financial Facilities
– Guarantee Fund – WORLD BANK / PROCEL /
FEBRABAN / IBMEC / INEE / ABESCO
– Investiment Fund - Holding to support ESCOS
with financial side - (MME / PROCEL / BNDES).
– Concepting Data Bank - Business in the EE
Industry - site dedicated for the sector.
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Energy Efficiency Law
• Law nº 10.295, october / 17 / 2001:
Establish maximuns “specifical energy
consumption index” for products,
equipments and others goods
manufactered and commercialized in the
country.
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Current Profile of Electricity Consumption
15%
43%
15%
28%
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Other
Residential
Industrial
Commercial
OCTOBER/2002
Performance Contract
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Sectors: Industrial, Commercial and Public
Contract - 3 - 5 years
Savings – 15 % - 30 %
Shared with the customer - 0 a 30 %
Medium project – US$ 200.000
Amount per year – US$ 30.000.000
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Potential Market
• Demand reduction
1.400 MW (2%)
• Investiments
US$ 700 million
• Energy Conservation
500 US$ / Kw
• Expand Power Supply
900 US$ / Kw
NAESCO - INTERNATIONAL FINANCING ROUNDTABLE
OCTOBER/2002
The Brazilian Energy Efficiency Market
october 2002
Eduardo Moreno
ABESCO President - Associação Brasileira
das Empresas de Serviço em Conservação de Energia
www.abesco.com.br [email protected]
VITALUX – Performance Contract Director
[email protected]
NAESCO - INTERNATIONAL FINANCING ROUNDTABLE
OCTOBER/2002