| @2 gJ S S E N @ N g E mX |i EEnergy Sector Management Assistmice Programme Activity Completion Report Industrial Energy Efficiency Activity, Phase I Volume I: Main Report Report No. 148A/92 JOINT VNDP / WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (EMAP) PURPOSE Tne Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) was launched in 1983 to complement the Energy Assssment Progmme, establishcd three years earlier. ESMAP's original pwpose was to implement key recommendations of the Energy Asement report and ensure that proposed investments in the energy sector rprested the most efficient use of scarce domestic and external resources. In 1990, an intematiotal Commission addressed BSMAP's role for the 1990s and, noting the vital role of adequate and affordable energy in economic growth, concluded that the Progrmme should intensify its efforts to assist developing countries to manage their energy sectors more effecttvely. The Comnsusion also tecommended that ESMAP concentate on making long-term efforts in a smaUer number of countries. The Commission's report was endorsed at ESMAP's November 1990 Annual Meeting and prompted an extensive reorganiation and reorientaion of the Programme. Today, ESMAP is conducting Energy A_nts, performing preinveshtmnt and prefeasibility work, and providing insttutional and policy advice in selected developing countries. Through these efforts, ::SMAP aims to assist governments, donors, and potential investors in identifying, funding, and implementing ecoomically and enviromealy sound energy strategies. GOVERNANCE AND OPERATIONS ESMAP is governed by a Consultative Group (ESMAP CO), composed of representatives of the UNDP and World Bank, the govenments and institutions providing financial support, and representatives of the recipients of ESMAP's assistance. The ESMAP CO is chaired by the World Bank's Vice President, Opetdions and Sector Policy, and advised by a Techimcal Advisory Group (TAG) of idependent energy experts that reviews the Progmme's straegic agenda, its work program, and other issues. The Manager of ESMAP, who reports to the World BanRs Vice President, Operations and Sector Policy, adiminister the Programme. The Manager is assisted by a Secrtanat, headed by an Executive Secretary, which supports the ESMAP CG and the TAG and is responsible for relations with the donors and for securing fimding for the Programme's activities. The Manager directs ESMAP's two Divisions: The Strategy and Programs Division advises on selection of countries for assistance, auries out Energy Assessments, prepares relevant programs of technical assistance, and supports the Secretariat on funding issues. The Operations Division is responsible for formulation of subsectoral strategies, preinvestment work, institutional studies, technical assistance, and trainig within the framework of ESMAP's country assistance program. FUNDING ESMAP is a coopetive effort supported by the World Bank, UNDP and odher United Nations agencies, the European Community, Organization of American States (OAS), Latin American Energy Organizaion (OLADE), and countries including Austrlia, Belgium, Canada, Denmark, Germany, Fiand, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom, and the United States. FURTHER INFORMATION For further information or copies of completed ESMAP reports, contact: The Managr or The Executive Secretary ESMAP ESMAP Consultative Group The World Bank The World Bank 1818 H Street N.W. 1818 H Sreet, N.W. Washington, D.C. 20433 Washington D.C. 20433 U.S.A. U.S.A. ACTIVITY COMPLETION REPORT GHANA INDUSTR1AL ENERGY EFFICIENCY ACTI VJTPHASE I Volume I: Main Repowt November 1992 This documet has resticted distrbution and may be used by recipieats only in tho perfomance of their official duties. Its contens may not otherwise be disclosed widthut UNDP or World Bank authointon. ABEU VI4IONS o cedI OWh giw hour 1.0. meal galn kg kiogam ltW klowat kWh ki tt out L liter LPG liOfied petrolewn gs MT mutria ton MW megPwatt MWh megawatt hour too ton of oil equivalent tpd tonperday tpy to per yos ACRONMS ATP Aue Tsbu ad Parte, a Ghna consulting fim CEB Communat Ebetiue du Beni CDA Canadian Inte Ina Deeopment Ageoy (CIDA) CPC coa Proesing Compay BCG Bbectrioy Corporan of Gha BEC Boag Eedtiqu de Ia C8tI 4'Ivoiro ESMAP Ene r Secor Managemet Assistance Proramm GDP Gross Domestic Prduct UAMP Ghanaian Italian Petolm Corpotion GIHOC Ghana Indutrial Holding Company NPC Gha Natonal Perlem Corpoation GOIL Ghman Oil Corpoation GTMC Ghana Textil Msnuftg Company muP Indwusl Eneg Reaario Program IPF IiveP Planning F*ue ISAC Industrial Sector Ajustmt Credit MWp Miisty of Fud NW Power MIST mistry of bIdur, Soience d Technolog NEB National Energy Board SOE S lw Enterris TFCC Tawa Food Complex Corporation UNDP United Na Deveopment Progrm UNDTCD United Nation Deveopvmt Tehical Cooperation D _atmet VALCO Volta Aminum Company VRA Voks River Authoriy OFFICIAL FISCAL YEAL Jnuary 1 - Decembwe31 CULNCY Q WIVAIZNT Cunacy Unit Cedi (o). TI avra exchang rate when de ueavity was impkmtd was US$i - Cedis 31S. ERGY CONVERSION FACTORS: 1 kWh - 3.6 Ml; I L jL oil = 40 Mi PREFACE 1. BachgrewaL In 1986, the Energy Asessment Report on Ghana identified energy ratiolization I the Idustria sector as an importavt factor In managing energy demand and Ipwovig the geera viability of the energy setor.? In response, the Govement of Ghana reuesed technical assistce of the joint World BanWUNDP Energy Sector Managemt Asnce Programme (ESMAP) in preparing and imple an action program to promote higher efficieny in the industrial sector. 2. ESMAP Mt lYMa. Following the Ghana!an request, ESMAP completed an Industri enegy rationalizaio sdy in 198748.2 That report concluded that a government-supported ergy efficiency program In the industra sector was feasible and necesay, and suggested that the program include policy and Institutional measures as well as demosa, training, an dissnin iaves witiin the Instries. In 1989, the Government of Ghana and ESMAP agreed to start the demonstration and tralg phase of the progm. Ihe Govement of Cmada, which had already funded th pDrmiay ESMAP study thtrough thi Canadia Inteational Development Agency (CIDA), agreed to fund the demo on and training phase, entided bdusti Energy Effidency Program: Phase I 3. The Indast,l kewV Wdew PoVwg Phase L Thi activity began in eary 1989 and was completed In 1990. It was digned to (a) illustrate exisig poibilties for er conservation and otons for realizing them; (b) dieminate rel and lesson leaned from pilot btraing progrms; and (c) train Ghanaian profesionals to implement Improvements over the long term. ESMAP contracted witi an consulting firm, ACRES Ltd., to perform most of the field technical work, suevised the activity, assessed the preliminary results of the activity, and deignd the next phase of the program 4. Reports. Two types of report have been prepared in connection with the executo n of the actvity: a Vau w. ThL present downet, whkh Is an AeU* Compudon Repor prepred by ESIAP.' This report summarz the resut of the Phase I atvity and oudines the issues and activities for a possible continuon. The ESMAP report has been desiged not to overa with the consultants' reports but to 1. am. lea wd Opou h tx Euu' Sector, kba Woral Ba/URP E, Sedor Asltac FWagr.uue Report No. 6234.I Noeb 986. 2. Mme Ewe Rafti&a hx du ladt Secor, ESMA?, RepN. 8O4/88, e 1988. 3. De tMA oWer jbr th ac* ww Djmu lusdaai eaiaL Th AcJ*l v Cc. Id d, o Rpot *w preaed by Djwal M^J wfth th use of Sar Soarouu al WtSIRL ENERYEFIlNY GHANA complemt them maly on dhe lessons larned from Phe I, and on how to build an hose lessons to design and Implemeat a frtiher phase of the progm. b. Vokn Il - _ iatne 6bsVant* boewd ˘onsuua' repoets, pnpawd by AC= S In asoedato. WA Ann Tsuba nd Pwlwv (ATA), a Ghankun easula j IhsOe repxrt detail meodology, findin, ress, and tis of the audt pefmed by ACES and ATP (the consultans) o t Industri firms. hese repors have bee ehnslvely discued and reviewed with the udited frms as wel as with Ghanaian autorities and ESMAP in the course of the actty execution; they have constiuted the basis for the acton program undeaken by the industries. 5. Panof Om IS AP rePopt. lbis Phse I Report cosits of seven secdons presnting a summary of activity rests and lessons as weV. as ESMAP's reas; background information on the energy and idustry sectors; the auditing process of three piot industria firms; a summary of follow-up meamses unetake by uited firms; th training an di nation actives assocated with the projct laeso leaned from demoaton and pilot operations; and leea for coniing the energ efficien progrm TABLE OF CONTENTS Pge PREFACE I. SUMMARY AND RECOMMENDATIONS ..... .............. 1 Overall Ojectives, Scope, and Results ...................... 1 M ain Lessons .................. .................. 3 The Decisionmaking Process ......................... 3 Exploitation of Energy conservalton Potential ............... 4 Energy Services ................................. S Direct Support Programs .... ........................... 6 Recommendations .................................. 7 Recommendations on the Industrial Energy conservation Ptogram ... 7 Recommendations on Further ESMAP Support .............. 8 H. TBE ENERGY AND INDUSRY SECTOPS .................. 9 The Overall Economic Scene . .......................... 9 Energy Supply and Consumpion ........ ...................... 9 Energy Institutions and Polict ................. ... 11 The Industrial Sector ............................... 13 m. PILOT ENERGY AUIDS ........................... . 16 Introduction to the Energy Auditing Program ................ 16 Background on the Audited Frms ....................... 17 Audit Results and Recomtaendations .......4 ....... .......... 21 Cocoa Processing company ........................... 24 Ghana Textile Manufacturing Compang ......................... 25 Tema Food Complex Corporation ....................... 27 IV. TRAENNG AND DISSEMINATION PROGRAMS ............28 Training and Transfer of Technology ..................... 28 Dissemination ..... .44444444. 30 V. LESSONS OF TIRE DEMONSTRATION AND PrLAr OPERATIONS . ...................... 31 The Decisionmaldng Process ....... ........ 31 Exploitation of Energy Conservation Potential............ 32 Energy Services ............................ . 34 Direct Support PIrograws ............ ... . .... .. ... 35 VI. CONTINUATION OF TIR ESMA P AC TVffY .... .......... 37 Ghana's Efforts for Energy Conservation ....... ........ ... *. .. 37 Recommendations on the Industrial Energy Conservation Program ... 38 Continuation of the ESMAP support ...................... 41 ANNEXES Annex 1 Cocoa Processing Company Annex 2 Ghana Textile Manufa.. uring Company Annex 3 Tema Food Corporation L. SUMMARY AND RECOMMENDATIONS 1.1. The Ghaan Iniwve. In 1987, the Government of Ghana decided to Implement an Industral Energy Rationalization Program (IERP). Tbe program was intended to create an institutional framework for promoting efficient energy use in the industrial sector; to conduct training and promotion campaigns to encourage industrial firms to carry out energy rationalization measures; to commission a team of consultanu that would conduct energy and industrial audits in cooperation with local industrial specialists; to train Ghanaian energy auditors; and to prepare and Implement related housekeeping measures and capital investments at the plant level. 1.2. Imp kmenton of Me IW. The National Energy Board of the Ministry of Fuel and Power prepared the IERP and was entrusted to implement it in coordinadon with the Ministries of Industries, Science, and Technology; the Bank of Ghana; and the Association of Ghana Industries. Further assistance was provided by CIDA and by an Energy nagement Office, run jointly by the Volta River Authority and the Electricity Corporation of Ghana (ECO), which performed walkthrough electricity surveys of some major industrial firms. UNDTCD, through UNDP IPP funding, also supported training and disemination seminars and energy consumption surveys for 24. industrIa firms. OveraU Objectives, Scope, and Res4lis 1.3. Objecives. The ESMAP activity sought to alert industrW firms, financial intermediries, and Government authorities to the full implications of energy conservation by demonstraig tangible energy savings at the plant level; by training Ghanaian energy professionals who could provide technical services for energy conservation at later stages of the IERP; and by preparing operational- and management-level staff to carry on the eergy efficiency program. 1.4. Scope and resalts. The activity consisted of conducting in-depth energy audits in three industrial firms, training Ghanaian energy auditors, disseminating the methodology, and analying the results of the audits. a. Indept energy auts. Audits were performed in the Cocoa Processing Company (CPC), Ghana Textile Manufacturing Company (GTMC), and Tema Food Corporation Company (IFCC). The firms were selected on the basis of their representaiveness of the Ghanaian industries and the willingness expressed by their management to improve energy utilization efficiency. The industries cooperated fully with the auding process, which fcsed on the measures with maximum likelihood of implementation. A significant conservation potenti was identified; during the activity, CPC and GTMC began implementing the most obvious and profitable measures while the third audited firm, TFCC, postponed implementation initiatives, largely on the grounds that they would be incorporated 2 DUSIRL4L EGYr FI7CENCY, GHANA Into a full-scale rehabilitation program under preparation. Figure I reflets the order of magnitude of the potential of energy conservation fcr the audited Industries as will as the Impact of measures whose Implementation was Initiated during the aWit program. ENERGY CONSERVATION POTENTIAL AND IMPLEMENTATION 100 ao - .. -.. __ ._ 60 - 20 CPC flitC ITCC ladustria C o tost potental savhp imp1i entatoi, bum: @ FIGURE 1. OveraU Result of tse Aud Progra b. T1avddg of Gha1adan eners auditors. A prvate consuling firm, Mare Tsibu Partners (ATP), was directly subcontracted by the main contractor and fully involved In the auditing, training, and dissemination programs. About 125 person/days were provided under this arrangement. Furthermore, seven Glanalan energy professionals were attached to the program as individual consultants. c. D*ea oa of auditg techiues. The methodology, results, and lessons of the auditing process were diseminated to other industries by the National Energy Board (NEB), by the staff of the audited industries, and by the Ghanaian consultants through several cdanels: informal contact, newspapers, and a semir briging together rep aves of the main Industries and professional organization. The results already obtained by one of the audited firms (i.e., CPC, which reduced its fuel consumption by abou 30 percent through w-cost improvements in the combustion efficiency of its boiler) had a significant impact IADUSWUAL ENERGY EFFICIENCY, GHANA 3 in sensitizing other industries to the benefits of energy conservation, particularly through so-clled no- anld lowcost nreasures.4 Mai Lessons 1.5. Tue ESMAP activity was a pilot and demonstration operation. Hence, one of its key objectives was to support Ghanaian institutions and personnel in gaining experience and drawing lessons that would be useful in designing a full-scale program. The lessons to be highlighted from this activity relate to (1) the decisionmaking process within the Industries, (2) exploitation of energy conservation potential, (3) energy services, and (4) design and conduct of energy conservation support program. 77e Decionmaking Proess 1.6. The Prioriy of Energy Conserion among Deckonmakers. Energy conservation was not a high priority for management largely because the attenion of senior management was focused on some strategic issues: the industry's overall competitiveness in face of Imports in a liberalizing environment, resolution of institutional situations emerging from restructuring process, and access to appropriate financing sources. The ease of implementation of energy saving measures and the extent to which senior management would not be distracted from stratgic (and, sometimes, survival- related) issues appeared to have the strongest influences on management's commitment to implementation. 1.7. Risk Avenon as an Impenmnt to ConwvaIon. Reflecting their generally cautious approach, managers, whether from private or public firms, were averse to risk- taking in connection with either the country's situation (for foreign private investors) or the technical and fincial aspects of the recommended projects. Low-cost and capital- cost opportunities of about two-year paybacks are moderately attractive, but a payback of three years is less so, and a payback of four years is seen as totally unatacive. 1.8. Ihe Prevailng "Packagingv of Conseradon with lndwtd Rerudwing. The industrial restructuring process appears to be the primary vebicle for major investment in energy conservation. That is, decisions about conservation are not being made on a case-by-case basis but commonly are integrato4 into a long-term rehabilitation or development program fot the overall industry; this is the 'packaging' process. Any sizable investment in energy conservation thus is almost always the result of or a component of a broader industrial rehabilitatidon, restructuing, or development process. 4. 2U*eAoreshold#bodgl-aiwg no,-ad lowandckopmaca easwesrpres ainddcsed in Chaptr 3 aragraph 3.10). 4 INDUSTRAL ENERGY EFFICIENCY, GHANA Exploftatk' of Energy Conservation PotAnta 1.9. Consldeable Potenal for Low- and No-cost Conseraton. The importance of the physical potential for energy conservation offered by no- and low-cost measures has been affirmed in the detailed investigations carried under the current activity regarding three specific industries. The opportunity to focus on these measures has been evidenced by the results obtained during the course of the activity Itself. Even if all the industries did not fully exploit the energy conservation opportunities identified through the activity, the very tangible results already achieved made the whole exercise profitable. The general conclusion is that an energy efficiency improvement exercise targeting no- and low-cost energy conservation opportunities does not require substantial financial resources, and is both feasible and highly profitable. 1.10. Nuames In the Financing of Energy COnsermation Mesw-es. Lack of appropriate funding for investment in energy conservation has been cited frequently as a major barrier to realizing the substantial potential identified in the industrial sector. Several lessons from the Ghanaian experience (supported by similar results in Senegal) suggest that this problem needs to be understood and addressed in more subtle detail: a. 2he local basd of fwdpg for low-cost ineaswu. A large share of energy conservation potential derives from no-cost and low-cost measures, and these are the measures the industries are most likely to consider and implement. Financing requirements are very limited. They can be met through the industries' own cash resources and, generally, they can be met only through this channel because of the very nature of the measures-often catch-up maintenance action-and of the high transaction costs associated with extemal financing. And the ESMAP activity has evidenced that the industries did meet these limited financial requiremens to implement the most profitable measures. b. 2he "Nustdal"therthan "conservaonvodentationof lae-scalekfd. On the other end of the fiuding spectrum, capital-intensive measures, which generally involve modification of processes or replacement of large pieces of equipment, are often either postponed, sometimes indefinitely, or 'packaged" into more comprehensive rehabilitation programs. Management decisions are based on the technological, financial, or strategic specifications of the overall program rather than on the specifics of any individual measures. The decisionmaking process is then driven by an "industrial" rationale rather than by an *energy conservation" rationale; funding requirements are also dermined by the industrial aspects of the program and can be met only through industrial financing schemes. Hence, the development of earmarked energy conservation funding mechanisms may not stmulate the implementation of capital-intensive measures, except if it introduces concessionary terms, wbich would be econowmcally unjustified and likely to bias the decisionmaking process. c. Puning of "in-between" measure. The only case in which the provision of specific financing facilities may prove an effective tool for removing constraints to investment in energy conservation is for the "in-between" measures-for INDUSMUL4L ENERGY EFFICIENCY, GHANA S example, the replacement of light equipment such as motors or the installation of heat recovery devices and of capacitors. The cost and scope of these measures are limited enough to allow management to make decisions on a case-by-case basis (i.e., without "packaging"); however, funding requirements may appear too high to be met by the industries' own resources without adding excessive pressure on their financial situation but not high enough to justify, particularly with a poor financial intermediation system, the usual transaction costs associated with obtaining traditional external funding. Energy S vices 1.11. 2he Diverse Needs and &pecttons ofthe Finns. Audited industries in Ghana had an overall sense about general ways to improve energy efficiency. But the quantified information base on the energy-using systems was extremely poor; the scope of potental savings, the investment costs, the profitability of the measures, and the operational procedures to implement them were generally unknown and not assessed to allow managerial decisions and effective implementation. The 'information gap' and the need for technical services were patent; however, the industries' management did not fully or always recognize them nor perceive the value of commissioning consulting firms. The cost of consulting services, the absence or nonvisibility of knowledgeable local consultants, lack of experience in managing and exploiting consulting services, and the low priority accorded to energy conservation, appear to be the main barriers to the utilization of technical services. 1.12. The Response to Dferentt Levels of Energy Audi. Several type of audits were offered to industries, ranging from walkthrough audits (a few hours to one or two days spent In one plant) to in-depth audits (several weeks in the plant). The probability that implementation of conservation measures wiJl follow audits seems much higher for the In-depth energy audits than for the walkthrough audits. According to a srey by a ahanaian consulting firm commissioned by the Ministry of Fuel and Power, more than half of the responding firms that had walkthrough audits did not follow up on the recommendtions, while all the firms that had semidetailed or in-depth audits implemented a significant share of the recommendations. These results are not surprising and are consistent with the nature of the 'information gap" and the expectations of industrial firms. 1.13. The Costs of the Audits. These depend on the size and complexity of the industries and the type of audit, ranging from few thousands dollars (for walkthrough audits) to some US$50,000 to $60,000 (for in-depth audits in relatively complex plants). Compared with similar operations in more industrWized countries, the latter figures appear extremely high. There are several reasons for this: the cost of inteational expertise and associated logistical expenditures; the time needed to collect base data; the problems of communications and relationships between the consultant (commissioned by national administratve and/or international entities) and the client industries (which are granted free services); the costs of managing the overall exercise; and so on. 6 iDUS21RIL ENERGY EFFICENCY, GHANA Dvet Spou Progrm 1.14. Supply-Dven Programs. Support programs for industrial energy conservation that are initiated by national institutions-with or without the concurrence of external cooperation agencies-have centered around the provision of energy services and have been driven by "supply" considerations. Aimed at complementing or palliating insufficient price signals, these programs have included a large component of direct energy services (audits, technical support, training, etc.) to the industries and consequently have focused much of their attention and resources on providing technical services. Typically, to reduce a perceived "information gap,' the national and cooperating agencies will absorb substandal costs to commission consulting firms to provide these services for industries, which may make only a nominal contribution to paying the real cost and not act as clients. 1.15. SomeMLts totisApproach. Providingenergyser' esmayproveintrinsically very profitable as an exercise, as illustrated by the experiences of Ghana or Senegal. However, the limits and risks associated with this exercise should be carefully assessed with respect to three iterrelated considerations: a. Impossibt of mabnainng squpot atfidl-scalk. It is impossible to sustain the level of effort involved in demonstration programs to support energy services on a sectorwide basis. b. lfflency in resource allocaton. Aside from the high cost of consulting services, the effectiveness of allocating managerial resources to organizing and monitoring direct services to industries can be questioned if it prevents managers from developing sustainable and market-based policy measures. C. Risks of perverre effects. This may be an important concern. Direct support programs may lead policymakers to neglect pricing and other incentive measures, which are crucial for promoting end-use energy efficiency. They also may involve central administative institutions in areas more properly in the domain of commercial and private consulting services, and they thus may distort the market for energy services. 1.16. -e Instiutiondl Frmuewor*. An extension of the tendency to base energy conservation programs on the supply of ergy services has been the propensity to promote National Energy Conservation Units as the institutional focus of national conservadon efforts and international assistance programs. Administrative institutions may justifiably become involved in promoting conservation through policy, institutional, and pricing measures and by sensitizing energy users (through demontation programs, for example) to the need for and profitability of conservation. At the same time, it would be unrealistic and counterproduitive to have the same administrative institution serve as the engine for reducing the 'information gap' by having it control the actual provision of the energy services. Thus, institutional strengthening efforts should aim at developing the policy-oriented functions of institutions and not at reinforcing any propensity of INDUSIRUL ENERGY EFFICIENCY, GHANA 7 administrative entities to substitute themselves for commercial actors and interfere with market mechanisms. Recommendatdons 1.17. Ghana's Effobs for Energy Conservtaon. Improvement in end-use energy efficiency remains a signfficant component of Ghana's overall energy policy. Ghana is addressing this question, first, through global measures relating to energy pricing and increased reliance on market forces. The Government of Ghana, through the Ministry of Fuel and Power (MFP), is also pursuing an action program aimed at complementing pricing and market liberalization measures. The program's objectives are to improve the overall coordination of energy conservation initiatives, encourage the development of energy services and Ghanaian energy expertise, and increase awareness of the opportunities for and benefits of energy conservation among end-users. Based on Ghana's agenda cdI the lessons gained from the ESMAP activity, the following recommendations are made on the configuration of Ghana's Industial Energy Conservation Program (IECP) and the continuation of ESMAP support to the IECP. Recommendions on the Industridal Energy Consevation PropgAw 1.18. Energy Conservton Targets. lhe ECP should essentially focus on exploidng the conservation potential offered by the no- and low-cost measures. Realizing this potential will be primarily the result of the decisions of the industries' management-to the extent they are provided with appropriate energy price signals and operate under more competitive conditions. However, the IECP, as an "institutional" approach, can complement and speed up the market mechanism by reducing one of the most critical barriers faced by the industry for implementing these measures: the "information gap." In this perspective, the development of a market for energy services is instrumental for the long-term success of the IECP. 1.19. Energy Servies: Demand Side. A first key issue in encouraging the development of a market for energy services is to shift the IECP from a supply-driven to a demand-driven approach. The industrial firms should fully play their role as clients: selecting their own consultants (firms or individuals); agreeing, within contractual arrangements, on the exact and detaited scope of the services to be provided; and paying for the services. The main objectives of this measure will be to ensure that only firms really interested in improving their energy efficiency would benefit from the program and to get a cooperative and dynamic attitude during the auditing process. The information gap and the lack of awareness, particularly among the medium-sized industries, is one eternality to be addressed by the IECP on the demand side. This should be done through (1) pursuing sensitization and awareness campaigns and disseminating the results of demonstraion and pilot programs such as the current ESMAP activity; and (2) 8 MNDUSRAL ENERGY EFFICENCY, GHANA facilitating access of industries to commercialized energy services, mainy by mitigating the costs to be borne by the industries in acquiring energy services, which can be achieved by assuming a share of these costs or acting on the supply side. 1.20. Ehrgy Servies: Supply Sie. The second key issue in the development of an energy services market is that energy services shouid be supplied under quality and cost conditions allowing the emergence of a sustainable demand. Imports of energy services cannot be envisaged because of their costs; however, a domestic supply, based on the existing national expertise, is fully possible. As evidenced by the ESMAP actvity, national consulting firms as well as individual consultants are capable of providing standard energy consulting services, particularly In electrical systems. Focusing on no- and low- or medium-cost measures is an option totally compatible with full use of indigenous expertise. Ptomoting the development of this expertise will require facilitating the access of consultant firms or individuals to the market and arranging for some back-up by international expertise. Recommendations on Farther ESMAP Suppoa 1.21. Objectives and Scope of ESMAP Sppolt. It is recommended that, if requested, ESMAP will conde to assist the Government of Ghana in Implementing an Industrial Energy Conservation Program aiming at developing a market for energy services and at exploiting the existing energy conservation potental in the industrial sector. The objective of the ESMAP support would then be to assist Ghana in designing and monitoring the program and in obtaining the international expertise that may be required tD back up naional suppliers of energy services. The overall cost of the ESMAP activity would be about $US460,000. INDUSRIAL ENERGY EFFICIENCY, GHANA 9 MI. THE ENERGY AND INDUSTRY SECTORS The OveriUl Economic Scene 2.1. Economic Setting. Ghana, the world's third largest ~ LRS *t4O~,Goa(98 producer of cocoa, once enjoyed *0' 14PUk a higher standard of living thanu$52biln most other West African countries. However, the.. hanaian economy, largely based on agriculture (agriculture accounts for 50 percent of GDP, the industrial sector for 16 percent), faced drought, poor msanagement, and increased oil prices, which led to a significant decline in per capita income during the 1970s and ealy 1980s. Since the inception of an Economic Recovery Program in 1983, however, GDP growth has averaged more than 5 percent per year, about 2 percent above the population growth rate, and is projected to grow an average of slity less than 3 percent per year between 1990 and 1995. The per capita income has nevertheless remained low, at about US$400 (mid-1988), with about half the population living in absolute poverty. In 1988, population was estimated at about 14 million (34 percent urban), with the GDP at US$5.23 billion. Energy Supply and Consumption 2.2. Blmass, Hydro, and Solar Potentiamt. Woodfuels and hydropower are the most important energy sources in Ghana, accounting for about 85 percent of the energy supply base. With three-uarters of the total land area under vegetation, Ghana possesses a large biomass energy resource base. If managed in a sustainable way, this biomass base can supply a large part of Ghana's energy needs in the near and medium term. Hydropower generates most of the electricity in Ghana, with thermal generation (all diesel-based) amounting to less than 60 MW. The country's total technically exploitable hydro potential is an estimated anmnal 10,000 GW, equivalent to 2,300 MW installed capacity. Current hydropower generation capacity is about 1,160 MW and is concentrated in two sites, the Akosombo and Kpong dams. Although there is some potential for minihydropower, generation is still negligible. Electricity is exported to neighboring countries. An interconnection with Togo and Benin has existed since the early 1970s. COte d'Ivoire was interconnected in 1983, and Ghana is now supplying a significant amount of power {SS) to the Ivorian grid. Ghana also has large solar energy resources (annual sunshine is between 1,950 and 2,700 hours). Solar energy is mainly used in nrual areas to dry many agricultural and forestry products; however, its contribution to the overall energy balance is negligible. 10 INDUSRL ENERGY EFFICIENCY GHANA ECONOMIC INDICATORS GROWTH RATES Growth rates (in percentage) 10 6_ 4 1984 1985 1986 1987 1988 1999 1990 Legend GDP l GUY/ capita Source: Vbrid Devek pment Report (1990) FIGURE 2. Ghana Growth of GDP and GDP Per Cpia, 1984-90 2.3. Petrolenu Products. Ghana meets all its petroleum requirements through crude imports. There is no current domestic crude oil production, although modest quantities of petroleum were produced for a short period in the early 1980s, when Ghana, like other oil-importing developing countries, suffered from the petroleum price increases of the late 1970s and early 1980s. For example, during that period, Ghana spent almost 40 percent of its foreign exchange earning for petroleum imports, when the real value of Its export earnings had drastically decreased. Crude oil imports still constitute the largest single item in the country's foreign exchange expenditures-20 percent of total foreign exchange earnings (about US$200 million), at a time when world prices for cocoa and gold, the source of Ghana's main export earnings, have again fallen markedly below expected levels. Offshore deposits of both crude oil and natural gas have been identified at Saltpond, Tano, and Cape Three Points, but have not yet been tapped. For refining, the 1.25 million tpy hydros dmming refinery, operated by the stte-owned enterprise (SOE) GHAIP, meets most domestic requirements and exports residual fuel oil. 2.4. Energy Cosumption. Ghana's net energy consumption for 1987 was estimated at 3.7 million toe. Woodfuels accounted for nearly 70 percent of the total energy consumption, with petroleum products and electricity making up 19 percent and 9 percent, respectively, of the total. The household sector, the largest energy consumer, INDUS7RL ENERGYEF ICIENCY, GHANA 11 STRUCTURE OF ENERGY CONSUMPTION (1987) TranspuorU O im X Petr. products 2KN Firewood 27% Industry/Mining 11% _ 1 ^ - _ : . : 4 : : . EbcFk~~~ity 45X HoShold 6BS _ r . . Electrc Source: World Bank FGUE 3. Ghana: Energy Consumpdon Strucwe, 1987 accouns for nearly 70 percent of total energy consumption. Household consumption consists aLmost entirely of woodfuels (charcoal and firewood) for cooking, with modest amounts of electricity, kerosene, and LPG for lighting and cooling. Transportation accounts for about 10 percent of the total energy consumption and in 1987, used 50 percent of all petroleum products consumed in the country. Energy requirements in the industry and mining sectors represent about 11 percent of total consumption, and are satisfied through electricity (45 percent), petroleum products (27 percent), and biomass (27 percent). The Ministry of Fuel and Power expects the country's total energy demand to grow at an average annual rate of 10 percent in the medium term, and, after 1996, at about 2 percent over the GNP. Energy Insn &ons and Policy 2.5. Institudonal Firamework for Energy. The Ministry of Fuel and Power, which supervises state-owned electricity and petroleum corporations, is the dominant institution in the energy sector. During the execution ci the ESMAP activity, the National Energy Board (NEB) had close functional and staff links with the Ministry.5 NEB's main functions were to (a) formulate energy policy for the Government and advise the 5. The NEB was dssod in 1991. 12 INDUSILL ENERGY EFFICENCY, GHANA Secretary of Fuel and Power on energy issues; (b) assess energy resources and monitor their utilization; (c) coordinate renewable energy activities; and (d) establish and maintain a comprehensive energy database. The NEB was also responsible for energy conservation. Recently the National Energy Board was abolished, and, concurrently, an Energy Commission was created with regulatory responsibilities. Tbe Ministry supervises the state-owned Ghana National Petroleum Corporation (GNPC), Ghana Oil Corporation (GOIL), and the refining company Gbanaian Italian Petroleum Corporation (GHAIP). It also supervises the two power sector entities, the Volta River Authority (VRA) and the Electricity Corporation of Ghana (ECO). VRA is responsible for hydroelectic power generation, transmission, and bulk distribution; and ECG distributes power throughout the country and generates electricity in Isolated centers, mainly in the north and east. VRA also exports electricity to Communaute Electrique du Benin (CEB) and Energie Electrique de la C6te d'Ivoire (EECI). The Forestry Department of the Ministry of Lands and Natural Resources has administrative responsibility for the national forest reserves (woodfuels). 2.6. Main Issues. Energy sector plays a significant role in economic growth and development of Ghana. ITe hydropower plants at Akosombo and Kpong provide relatively inexpensive electricity for domestic consumption and enable the country to earn foreign exchange from electricity sales to VALCO and exports to neighboring countries. On the other hand, Ghana is totally dependant on petroleum imports for its liquid fuel requirements, which claim a significant share of the country's exports earnings. In the mid-1980s, Ghana faced a severe energy situation mainly due to the drought of the early 1980s and the poor condition of the existing facilities in power distribution and petroleum refning, storage, and distribution. Much progress has been achieved in addressing these problems. Ghana also face mcnty in its supply of woodfuels. Although the overall indigenous woodfuel resources provides a sustainable basis to continue meeting the county's needs for the foreseeable future, there are local and seasonal shortages in areas supplying population concentrations. Furtermore, the pressure on forest regions from timber operations has caused deforestation, the spread of desers, and declining productivity of agricultural lands, which has shortened the rotation cycle and led to declining fertlity. 2.7. Aserwy Sttegy. Ghana has embarked on the preparation and implementation of a long-term development strategy in the energy sector with the support of the World Bank, which is currendy carrying out an Energy Sector Review. Basically, Ghma's energy policy is designed to (a) reduce the economic cost of energy through rehabilitaion and proper maintenance of instalations in the petroleum and electricity subsecors; (b) reduce dependence on petroleum imports by accelerating oil exploraion and promoting efficient energy use; (c) improve forestry management to ensure an adequate long-term supply of woodfuel; and (d) strengthen sector institutions through a program of public enterise reform focusing on commercialization. 2.8. E,eWy Pdklag. Prices of electricity fell sharply in real terms from the mid-1970s undl 1983, as a result of high domestic inflation and overvalued exchange rates. Aftr the devaluation of the cedi in 1983, domestic energy prices were increased sharply to bring them back into line with their international equivalents. However, l ~~~~~~INPUSIRLL ENERGY EFFICIENCY. GHANA 13 *or 1 hiV w ec b~d# n9r eergy rices id o t epu i ed eauto and use of ionanerpressures an r thredyel correnpondi# vleconoic ot.Eetiity tos ado4eudr ptedM in e1e88 *e are alss0prcetof the LM.q1aI stbf y Ptro leu prIodctprice refec atioa prIicae lvesn are~ unsbsdied. Somre htrot prdie dfist~ ortions d sist, however;frexgy krsn tisbgly taxed and particularlydeopwensve 11* SoduroIbtr i r Secowr ppyb rti tealomlensot 2.9 Bakgrgn. I 199,lhet indusriasetor 4 o*Am tdaprxmtl 1 ecn nomiao eeg procsices dood nroduts keepxpwthiCed, devaluate,ion and nfatinr pressure an refiig currient U aly belo corspningeVonoaAmicotlecrct rom ates (Adopted i8 1988 approximanted about7 percetofwthe long ruen maeraginal pecost (LrMC whrilce, at8 prsnt, theyae ato less tha.5 percent of the LRMC. Petroleum productS. pricWorreflect ContyErntonalmpic levelsandu are u hnsubsrdieed.Some intpodustr pilremicte distoriostd growinguta sector i hn hog emd19s 2.90. Bcgo . 1 99 throess indutralveoral contribuednproIatl 16 perffcient ipr 8ttioD GNP Te nP o te mostrIoporandiet subsect, manufacturing, increased froma 3.8h refinige, cardedouiet masinys byiy i the VotaAlminu Compn itsCO) Isju alsoe8 Teproj ae ecteri epcd to grw54 pecnanully betwrevgru oen 1991u evlpmn and 19.TeWrdBn 14 INDUSTRUL ENERGY EFFICIENCY, GHANA REAL ENERGY PRICES EVOLUTION 1984-89 (Base 1001986) 140 RIce evolution (base 100: 1986) 120 800 s0 40 20 1984 1985 1986 1987 1988 1989 _ LPG 3 Gas Oil K Kerosene E Charcoal Source: World Bank estimates FIGUR 4: Ghana Real Enery Pdkes, 1984-89 the Government of Ghana has started a divestment program which includes most of the industrial firms. The exchange rate, tariff reforms and trade liberalization measures should insure higher competition in the manufacturing sector and provide more appropriate incentives for allocating resources toward export production and efficient export substitution. 2.11. Enero in Indwtry. Industrial energy consumption in 1987 was an estimated 3'N),000 toe, equivalent to about 11 percent of final energy consumption in the economy, and about 26 percent of the total consumption of modern commercial fuels (petroleum products and electricity). The industrial sector accounts for 15 percent of final petroleum consumption, 5 percent of total woodfuels consumption, and about 50 percent of total electricity consumption. In the past decade, industrial energy consumption was depressed for extended periods due to weak industrial activity and supply bottlenecks. Petroleum consumption in 1985 was estimated at 94,000 M.T., down from 159,000 M.T. in 1975; and electricity consumption was 615 GWh, which was 16 percent below its 1975 level of 731 GWh. Spurred by industrial recovery, however, industrial energy consumption since 1985 has been growing once again an average of 15 to 20 percent a year. 2.12. Energy Effciency. Poor industrial energy efficiency reflects the weak performance of Ghanaian industry in recent years. The reasons for this weak INDUST1 A L ENERGY FFICENCY, GHANA 15 performance include technological factors (age and obsoles"ence of the equipment and processes), conjunctural conditions (low capacity utilization In a depressed business environment), lack of incentive systems (distorted energy prices, cost-plus pricing practices, soft budget constraints In publicly owned industries), lack of financial resources (particularly foreign exchange to procure spare parts) and poor power supply conditions (frequent power interruptions with high shutdown and start-up costs). These issues are discussed more fully in ESMAP's Energy Rationalization Study. 2.13. PotenalforEnergy ffickny Improvement. Several studies by the National Energy Board, carried out with the support of UNDTCD and ESMAP, found substantial need for Improved energy efficiency. The 1987 ESMAP study (described in paras 1-3), had emphasized "housekeeping" measures which could be implemented with limited capital, yet generate energy savings of 15 to 25 percent, with a payback period of less than three years. ESMAP found that the most attractive of these low-cost measures could lead to cost savings of US$3 to US$5 million per year (at 1986 international prices), with an initial investment of less than US$1 million. Investments requiring larger outlays could lead to comparable savings. ESMAP concluded that most industrial firms were aware of the need to improve energy efficiency, but that few were able to orgarize energy rationalization programs because they lacked familiarity with options. They were also hampered by weak managerial and engineering skills, a lack of local energy auditing capabilities, and inadequate industrial financing. 6. Ghan. Eny Radonadon In dU hdwrla Secor, MAP, Repr No.084188, JA 19. 16 IADUSTJL EFNERGYEFFICENCY, GHANA mII. PILOT ENERGY AUDITS Inroduction to the Energy Audng Progmm 3.1. Objetves. The main component of the ESMAP activity was the auditing of three industrial firms. The purpose of the audits was not only to help these firms inprove their energy efficiency but also to provide hands-on training for Ghanaian energy auditors; to generate visible results through demonstration and dissemination; to generate Information and know-how on measures reproductible in other industries; and to fine-tune the methodologies to be developed for a larger-scale industrial energy conservation program. 3.2. Main Featues. Based on these objectives, the energy audit program was designed with the following features. First, a local consulting firm subcontracted by A.CRES was responsible for the electrical part of the assignment. Other Ghanaian professionals were selected to be part of the auditing exercise based on their ability, as scholars or energy professionals, to provide commercial energy services.7 Second, the NEB, the audited industries, and ESMAP agreed to develop a thorougb auditing process. The process was intended to be selective in the sense that audits would focus maiy on the least-cital-intensive energy conservation opportunities, to increase the likelihood that they would be pursued in an environment of scarce capital resources. In addition, the audit would be in-depth to the extent that investigations would be based on actual energy measurements, reports would be detailed, and proposas would be fully documented. Finally, the audit process would take place within a time frame broad enough to facilitate development of contacts between industry and audit team technicians and managers and to support the industry's implenton of the most promising efficiency measures. 3.3. ERecutdon. The 5'3, in cooperation with ESMAP, selected three firms that had shown a keen imterest in embarking on energy audits. The audit program, carried out over a six-month period (May through October 1989), included procurement and instalationof metering equipment, energy measurement, sensitization of the plant's staff, execution of the audits, discussion of results, and technical support to implement some recommended measures. The implemented measures were evaluated in May 1990. 3.4. OraMll Resuts. The potential for energy conservation identified tough the audit program is reflected in figure 5. As a consequence of the initial option to focus on 7. Thk point SkAnher developed in chapter IV, Trabdn and DssendoN Pogronw. ANDUSVTL4L ENERGY EFFICENCY, GHAWA 17 measures with the maximum likehood of being implemented, measures involving substantl process changes have not been assessed. THE ENERGY CONSERVATION POTENTIAL soox oow - --------111§-1 -- ---- TCc GTMC TFCC Imdustries -No-cost low-cost Capital-cosit FIGURE S. Overl Rsul of Oh Aid& PrgA Backgmwad on the Audited Finns 3.5. Sdecdon. Based on the actvity's objectves, the industries were selected for audi according to the criteria summarized in table 1. Based on these criteria, the NEB, In coopeation with ESMAP, selected the TEMA Food Complex Corporation (lFCC), the Cocoa Processing Company (CPC), and the Ghan a ietile Manufacturing Company (GTMC) for the program. However, none of the fim, parualy the TEMA Food Corporton, f=ly met all of the secton caieria. Among the energy tissues the induses and the ESMAP activit, lack of 18 INDUSRUAL ENERGY EFFICIENCY, GHANA information and records on energy consumption, utilizaton, and costs was the most pervasive, which was a further indication on the need to assist these industries'. TABLE 1: Cdteia for Selecting gns for A ing Domals Cr**ea Ratonak The firm 0 medium* size 0 to get a representative * manufacturing industry p8le and to avoid too * replication of the industrial complex situations proms * relatirvly 'safe' fcial 0 to avoid involvement in situation a purely industrial * relatively good capacity revamping process ulization rate Energy consumption * energy as a significant sbare of 0 to get tangible reslts pa=tt operating costs * potential for energy conuervaton Restuturing proes * reasonable chance to be viable 0 to keep eneg after the ongoing indusutial conservation as a restructurn pre meaningfiil corporte o no major rehabilitation program objective under way M gement attitudes 0 Commitment of the senior 0 to work with receptive management to energy and motivated actors conservation Location * Accra 0 to facilitate communication and reduce the activity's costs and delays 3.6. The Cocoa Processing Company (CPC). CPC, a state-owned firm, produces cocoa lic'ror, butter, powder, and a vmrety of chocolate confectionery items, mainly for export. Production has increased steadily from 2,300 tosS annual output in 1985 to nearly 7,000 tons in 1989. To date, energy costs have been about 10 peieent of the total operating costs. Gasoil is used to generate steam for process heaing and to roast cocoa beans. Electricity provides power for motors and lighting. Oil accounted for the largest percentage of CPC's energy costs-Cedis 57.4 million (about $US165,000) in 1988-, 8. &Be data colected or estnmated on Me tree fn are sewnaried in annaes I to 3. INDUSTR1AL ENERGY EFFICIENCY, GHANA 19 or about four times the cost of electricity, which is priced well below its economic cost. Figure 6 reflects the key movement that occurred between 1985 and 1989: unit energy consumption declined drasdcally as production increased. This trend reflects improved energy use and reduced parasitic losses, with less equipment idling or operating at low load. The declining trend in unit energy requirements has been more or less balanced by increases in current energy prices over the period, with the unit cost of energy consumed per ton of output remaining steady around Cedis 11,000. The trends in production and energy consumption show that CPC has achieved spectacular progress in Improving operational efficiency over the last years. The standards of routine maintenance and emergency repairs were adequate. The firm's management plans to extend the plant's capacity over the next few years and to incr,!ase total production to 20,000 tons. COCOA PROCESSING COMPANY EVOLUTION OF SOME PARAMETERS 400 300 - ... . _ . ._ . .. . .. . .. . ....... 200 -t........ . - E 100 1985 1989 Production Unit energy consump. Energy blU Ba. 00 X 1985 FIGUE 6. Producdon and EneiU Costs a e Cocoa Processing Company (CPC) 20 U2RL4L ENRGY EIENCY, GHA 3.7. Ghan Texi Mwafaria Company (GTMC). GTMC is a privately owned firm that produces a variety of finished cotton fabrics, prints, and dyestuffs using local and Imported cotton. Production doubled between 1985 and 1988. Current capacity utUization is 40 percent. Tbe energy component represents 10 percent of operating costs and 50 percent of labor costs. The share of petroleum products in energy costs has steadily Increased. As reflected In figure 7, unit energy consumption remained relatively stable between 1985 and 1989. The nominal cost of energy per unit of output increased threefold In the same period, primarily as a result of rising energy prices. The firm's management is conservative. Plant maintenan3 ~ and housekeeping are minimal and mainly reactive, with equipment serviced only as failures occur. This minimal care has resulted in control systems falling into disuse. Largely because of the low prices of energy, the firm has given litde attention to eliminating obvious sources of energy loss. Steam and water wastage have been considerable and present numerous opportunities for conservation.. GHANA TEXTILE MANUFACTURING COMPANY EVOLUTION OF SOME PARAMETERS 5000 400 S;oo - _..___ 200- 100 0 1985698 Production unit euner consump. -Energy bilt vane 100 In 1985 FIGUR 7. Pmdkddon and Emli Costs at tse Ghana Textile Mamtfatd ig Company (GTMC) IVDUSMAL ENERGY EFFICENCY, GOHA 21 3.8. Tema Food Complex Coiporialon (TFCC). TFCC consists of six production plants: a flour mill, an animal feed mill, a vegetable oil mill, a fish cannery, a fish meal plant, and a fish smoking plant. The firm also operates a 5,000 ton commercial cold storage facility. Capacity utilization Is about 40 percent for the flour mill and 30 percent for the animal feed mill. Output from the other shops iS extremely low, with capacity utilization ranging from 2 to 15 percent. Annual fuel consumption has been low because of resticted and intermittent production of the plants; in recent years, TFCC's energy costs have been about 5 percent of total production costs. This situation is expected to change as a result of rising fuel costs and planned production increases in edible oil and various fish products, which require large amounts of process steam. The major energy cost component is electricity (cold generation). Residual oil is used for generatig steam, the major energy source for the oil mnil, cannery, and fishmeal operations. To meet the 1990 production target for fsh products, fuel consumption will be about I million liter. The energy consumption of individual plants is not metered, so unit consumption per ton of each product cannot be identified. Even though energy consumption trends over a nmber of years of operation can identify losses caused by deteriorating equipment or wasteful operating practices, such energy consumption data do not lend themselves to meaningful analysis because of the changing mix of products, lack of separate metering of each plant, and insufficient reliability of data on energy consumption, utiization, and costs. The firm has been preoccupied for many years with severa rehablitation plans for its flour mill and had placed a low priority on energy conservation. The new seorr management, which took over at TFCC just before the stat of the ESMAP activity, expressed a strong interest in promoting down-to-earth housekeeing measures and low- cost operatonal improvements to realize a significant proportion of the conservation potendal without waiting for long-term investments. When the audit was completed, the future development of the firm was not yet defined. Audt Resuls and Recommendaions 3.9. AdIti Methodology. Based on ESMAP's experience in other countries, special attention was to be paid during the audit process to four issues, which had proven critical for the success of the exercise: energy mea sensitzaion, detaied audit investigation, and continuous communication with the *clent industries. a EneVrg uwasement. Informadon on the energy situation in the ree firm was extremely poor and for TFCC almost nonexitent. There were no energy balances, no flow meters, no historical records, and no data on specific ener consumption. The first part of the audit therefore consiste of setdtg up appropriate measurement procedures and equipment. In addition to the portable equipment the auditors normaly use, ESMAP supplied flow-meaurin orifice plates for steam and water. These were instlled at selected emplacements in he 22 IUDUS1IL4 ENERGY EFFICIENCY, GHANA three firms, and data collection stared at the very beginning of the audit program. TEMA FOOD CORPORATION EVOLUTION OF SOME PARAMETERS 300 - PAO - 300' 160- . 100- 50 0' 1986 1S98 1 Produotion X Unit energy consump. Energy bill Ban 100 ihL 1985 FIGURE 8. Producion and Energy Costs at the Tema Food Complex Corpoaton (TFCC) b. Senson. Although all of the senior managers of the firms were willing to undertake an energy audit, the auditors found it necessary to convince them of the potentials for improving energy efficiency and of the need to designate an energy person', which was done by the three firms. It should be noted that the frms' technical staff in general seemed more concerned about energy conservation than the managers. c. Deiled au nvesdgatons. During the audit, he most energy consuming parts of the electrical and mechanical systems were investigated in detail to convince the technical staff and the managers of the causes of inefficiencies and the potentials for improvements. Ihese investigations were also inteded to contribute o training and dissemination and o ease implementation. The average time spent for each audit was about one month. INDLSTIAL ENERGY EFFICIENCY, GHANA 23 d. Comnzwd cation with the dstries. The audit team maintained close communication with the firms. The audits were designed and carried out in coordination with the technical staff, which enabled the team to generate early support for improving operation and maintenance procedures. Six months after the audits, the team revisited the industries to assess their progress in implementing the recommendations and provide continuing support. 3.10. Overal Resuls. Figure 5 summarizes the main results of the audits, based on 1989 energy consumption and levels of activity, and indicates the percent of total energy consumption which could be saved by each type of measures. The following paragraphs as well as the annexes and the consultants' reports provide more detailed information on the energy conservation opportunities. ENERGY CONSERVATION POTENTIAL SUMMARY OF THE RESULTS OF THE AUDITS 40 - 20-- - 0 CPC GTMC TFCC = No-eost Low-cost M Capital-cost Percent of 1otal aeeV oonsumptlon FIGURE 9. Sumary of the fPdings and Recommendions of the Audit Progmn The classification of the measures into "no-", "low-", and "capital-cost" categories did not rely on a strictly defined set of thresholds (except for the no-cost measures). lhe 24 DUSURL4L ENERGY EPFFCENCY, GHANA classification is Indicative and aims at reflecting, for each individual firm 9, a cost-based distribution of conservation opportunities. The low-cost measures include that measures which require minimum costs and which can be implemented on a rather continuous basis (for example, insulation of piping systems), while capital-cost measures include investment actions involving installation of new equipment, requiring more resources and of a discrete nature. For each of the three firms, the grouping of the measures into these categories in indicated in annexes 1 to 3. No measure with a payback higher than five years has been investigated because of its extremely low probability of being implemented. Cocoa Processing Company 3.11. Reses. The mechanical audit at CPC focused on the boiler plant, the steam and hot water distribution systems, the oil-fired cocoa roasters, and on the chiller and air conditioning systems. Major sources of steam and hot water wastage were identified. The electrical audit concentrated on the main substation and distribution systems. Control of maximum demand and plant power factors was a priority. Table 2 summarizes the main audit findings and indicates the energy savings, capital investment requiremes, and simple payback periods for electrical and mechanical conservation measures. Annex 1 provides detailed information on the mechanical and electrical plant audits, and the consultant's report fuly descnbes the audit investigations and results. TABLE 2: Audit Results, Cocoa Processing Company (CPQ Annua Energy Savig Capital Paybwk _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~ osd In AUASM kWh Lters 000 cedls 000 cedls Moth NO COST 112,000 629,300 36,060 LOW COST 43,000 73,200 4,265 3,620 10 CAPIrAL COST 63,700 29,375 27,125 11 FUEL SUBSTITUTION 22,000 25,000 14 GRAND TOTAL 218,000 702,500 63,700 30,745 6 PERCENT OF 8.14 50.18 66.13 CON3UMPTION 9. A classion based on threshold flgures ident for As dire fi, would hav been wadtLatory to *e et that ferences in the ines'ste andperecva woU not hae been taken hto conslderadon. lNDUSlRlAL ENERGY EFFICIENCY, GHANA 25 3.12. Scope for Energy Conservatdon. Table 2 shows that eletrical energy savings at CPC could be about 8 percent of present consumption. The reduction in costs would be around Cedis 2.2 million and would stem largely from reducing maximum demand through bulk power factor correction at the main substations. Lighting in some areas is quite Inadequate. Improved cleaning and maintenance, along with greater use of natural light and replacing bulbs with high-efficiency luminaries could improve lighting while reducing energy consumption. 3.13. The largest saving potential is, however, related to mechaical systems and concerns petroleum products. Optimizing heating practices, boiler and cocoa roaster combustion, and boiler steam pressures can yield an average overall fuel savings of 1,500 liters/day, about 35 percent of daily consumption, and a boiler water savings of 20,000 liters/day. Annualized, these savings amount to 450,000 liters/year of fuel, valued at Cedis 25.6 million, and water savings of Cedis 1 million. Further savings are feasible. No-cost measures, such as modified operating practices and maintenamce repairs, can produce up to 90 percent of expected fuel energy savings (630,000 liters of fuel oil), with a savings of Cedis 35 million (1989). With conversion of steam boilers to fire residual fuel oil, the additional savings would be Cedis 22 million a year. Including fuel conversion, the overall program should reduce fuel use by half, and produce cost savings of 65 percent (Cedis 60 million, or US$190,000) a year. Given the expected increase in production, these savings wil become increasingly important. Ghan Texik Mfaaudng Company 3.14. Result. The mechanical audit work focused on the steam boiler and thermal oil heating plant, the steam and condensate piping systems, and the energy-user processes involving cloth boiling, washing, bleaching, dyeing, and drying operations. The electrical audit focused on the main substation and plant metering, electrical distribution systems, the larger motor drives, and plant lighting. The audit paid a special attention to regulation of maximum demand and power factor, and improved plant lighting. The plant power factor was low, and correction could provide a considerable savings opportunity. Other savings could result from modifying operatig practices to reduce electrical energy consumption. Table 3 summarizes the main audit findings, including energy savings, capital investment, and simple payback periods for conservation measures. Annex 2 provides detailed information on the electrical and mechanical plant audis, and the consultants' repots fully describe the audit investigations and results. 26 INDUS2RL4L ENERGY EFFICIENCY, GHANA TABLE 3: Audit Resuls, Ghana Textile Manqfacturng Company (GTMC) Annual Energy Savings Capital Payback Cost In MEAsURE kWh LUters 000 cedis 000 cedis Months No CosT 685,000 345,000 19,400 Low CosT 276,800 9,530 16,720 21 CAPITAL CosT 222,000 285,000 26,250 34,790 16 FUEL SUBSYUTnIoN 11,000 10,000 11 GRAND TOTAL 907,000 906,800 55,180 51,510 11 PERCENT OF 9.27 28.07 27.91 CONSUMPnON 3.15. Scopefor Energy Conservaton. The potential electrical energy savings from all meares is about 10 percent, or Cedis 6.3 million a year. The measures include reducing maximum demaqnd, improving substation power factors, switching off idling motors, making better use of natural light, and replacing luminaries with high-efficiency units. 3.16. The total fuel oil savings potential from all meares represents 35 percent of annual consumption. Of the 907,000 liters in possible savings that the auditors identified, a third can be achieved through no-cost changes to operating practices and catch-up maintenance. Opportunities for reducing therma energy wastage were found to be also considerable, with massive steam losses occurring from valves, flanges, and equipment. Much of the distribution piping is not insulated. Steam traps are contributing to major losses. No condensate is recovered, which increases fuel consumption by at least 10 percent. With approximately 70 percent of these potential energy savings achievable in the next 12 to 18 months, fuel conservation should be on the order of 700,000 liters, or 30 percent, and cost savings should be about Cedis 30 million a year. In 1988, gas oil purchases were almost 25 percent of the total fuel bill. Conversion to residual oil would reduce this fuel cost component Cedis 11 million, with the total cost savings amounting to Cedis 40 million a year. If all measures are implemented, annual savings (1989) could reach Cedis 55 million, close to one-third of GTMC's total energy bill, for an investment of Cedis 51 million, with a payback period of I1 months. INDUSTLL ENERGY EFFICIENCY, GHANA 27 Tema Food Complex Corporaion 3.17. Results. The mechanical plant audit focused on the steam boiler plant and distribution systems; the steam-user equipment in the cannery, fish meal, and oil mill plants; and on the cold stores and ammonia refrigeration plant. The electrical audit focused on the substation and distribution systems, the larger motor drives, and on plant and office lighting. The audit revealed a variety of no-cost and low-cost mechanical measures, shown in Table 4. Annex 3 provides detailed information on the electrical and mechanical plant 'audits, and the consultants' reports fully describe the audit investigations and results. TABLE 4: Audit Results, Tema Food Complex Corponaton (TFCC) Annual Energy Savings Capital Payback cost In MEASURE rkWh Liters 000 cedis 000 cedis Months No Cosr 112,000 231,000 12,770 Low Cosr 94,900 3,350 8,200 29 CAPrrAL 145,000 32,600 4,210 9,944 28 Cosr GiRAMD 257,000 358,500 20,330 18,144 11 TOrAL PERCNT OP 6.09 51.21 33.06 CONSUMWON 3.18. Scope for Energy Conservation. Recommended energy conservation measures would result in savings of about one third of the average annual consumption. The major no-cost opportunities involve replacing the maximum demand meter and discontinuing payment on the basis of estimated demand; rescheduling the feed mill shift to reduce maximum demand; and making better use of natural lighting. Of the capital-cost measures, bulk power factor correction offers the major cost savings with some small savings in energy. The total potential fuel oil savings is 359,000 liters, equal to 35 percent of the fuel oil consumption required to meet 1990 target production levels. The overall payback for all measures would be 11 months for an investment of Cedis 18 million. 28 UU L4LENERGOYEFICENCY,GI4AA IV. TRAINING AND DISSEMINATION PROGRAMS 4.1. Intrdudion. Aside from providing energy services to selected industries for demonstrationpurposes, the ESMAP activity also included training of Ghanaln personnel In industrial auditing techniques as well as disseminion of tie audits results. Ihe development of local professional resources In the domain of energy conservation was a key concern for the Ministry of Power and Fuels (MPF) and had already been initiated as a part of a UNDP-financed energy project.10 Under this project, executed by the UN Department of Technical Co-operation for Development (UNDTCD), about 15 Ghanaian energy professionals were trained, particularly through the execution of walkthrough audits for 24 industrial fims in 1988. The ESMAP activity was requested to prolong the acdon already engaged. It was agreed with the MPF that the objective would be to develop a core group of experienced personnel capable of undertakdng future audits on a commercial basis to assist industries at large and thus to focus the training effort on operaional aspects of in-depth energy auditing techniques. The objective of the dissemination activity was to sensitize industri firms on the existece of a abstantia potetal for energy conserion through no- and low-cost measures that coud be easily realized. TA*ng and Tnmsfer of Technology 4.2. Ghaadn Resources. The training program sought to draw on and develop three types of professional expertise: a. Pdivate consultas. A private conslting firm (Asare Tslbu Partners) was subcontracted directiy by ACRES. It bad its principal experience In electrical engineering with limited prior exposure to energy conservation sevrices. b. Indi&vtal consultan (assisant auditous"). Seven professionals were drawn from a broad cross-section of candidates with diverse backgrounds and experience. All had been involved in the UNDTCD-supported program, especially in the walldhrough audit program. The purpose of the exercise was to have them actively participate in the detailed audits. 10. UNDP-A /82/020. IVDUStLL ENEPRGY EFFCIENCY, GHANA 29 c. Indwti sto. During s 1 S ? the plant audits, company E personnel contributed iatmA) ws.abWelx directly or remained in h al 8Q' AP1 netdl close atendance to assist i X g & e I a p o the audit teamn with data ~~~ f collectin or in collecting '1ST W *Wa flMP SI information on plant and . . process operating history a d db W d T E and practces so that they ~ coud become familiar .fou with energy conservation hdsii'A a~asbd ~ Ii principles. Two or tfree V wh i personnel from each of btr~~~ e te three firms also attended the formal technical training and worshop. With regard to the ar group, th trWaining objectives were to familiarize industry staff with energy management techniques and to alert them to the specific energy problems to be addressed in their plants. The objective regarding the individual consltants was different-to familiarize them with energy auditing methodologies and enhance their consulting skdlls. No training was developed at the administrative level because the focus of the trining was on plant-level energy conservation. 4.3. HanW-On TAl tg. For all the services rendered to the industries, a team of Ohanalan professionals, both individual consultants and staff from ATP, and of iternational expertise, was constituted. All the staff reported to the field team leader (a senior staff from ACRES). The overall size of each auditing team was about 6 persons (more tan double the size of a standard team). All the work was performed with close supervision by senior staff of junior staff, and the same team underwent all the phases of the audit process, including collection of base data, diagnosis, option evaluation, mulation of recommendations, and preparaton of reports. 4.4. Foew Tldnig. Given the strong educatonal backgru of the (hana staff, as weJl as the previous trainig programs exeuted with UNDTCD support, the formal training component was limited to a one-week workshop. The workshop was devoted to auditing tchniques, procedures, and energy management systems. It took place just before the beginning of the audit program. The industry staffs were involved in the training program mainly for sensitizadon purposes. Special care was taken to avoid confsion between the functions and the role of the industies' technical staff and the energy consultants during the training and auditing exercises. 30 INDUSxTIAL ENERGY EPPICENCY, GHANA 4.5. Results. The training activity, especially the hands-on activity, led to a heavy management burden: team structuring, communication, coordination and relationship with the client industries required a significant amount of effort and time, which impacted on the cost and the implementation schedule of the activity. The general opinion of the actors involved in the ESMAP project was that the training and transfer of technology activities have been successful and met their objectives. The collaboration with ATP has been excellent and the essential of the audit work on the electrical systems has been performed by ATP, with the result that the volume of international expertise initially allocated for auditing these systems was substantially scaled down. In general, the individual consultants have also shown good professional talents. The most suitable of the individual consultants for auditing of mechanical systems were found to be those who had previous design experience with one of the offshore major petroleum, chemical or power plant consultant/contractors. However, for the purpose of developing a core competency in audit skills, more extended training programs are required with participation by attenders carefully selected on the basis of having the appropriate background of experience and skills. It should be noted that when undertaking a series of audits, it Is desirable that auditing and report preparations for each fim are completed before initiating an audit on the next firm. Reasons include maintaining continuity and familiarity with the work, and the need to ensure that audit assistants are retained and available to complete the work. Dssemination 4.6. Scope and Results. The activity consisted mainly of a national seminar, which presented the resu!ts of the auditing exercise from a management perspective, identifying the "bottom line" value of conservation and the organizational requirements for setting up an energy management program in an industry, emphasizing the need for top management commitment to conservation, and illustrating the impact of the such an activity on the energy bill. The seminar included a review of industrial processes and engineering issues and discussed ways and means to achieve energy and cost savings. The seminar was attended by representatives of some 15 industrial firms, the Association of Ghana Industries, energy consulting firms, and almost all the assistant auditors who had been involved in the ESMAP project. The consultants involved in the project gave an exposition of the methodology of the industrial audits and the lessons gained from this exercise. Representatives of the three audited firms presented their own perception of the auditing process, of the achieved and expected results, and of the barriers or constraints they may face for implementing furither recommendations. The results achieved in the Cocoa Processing Company were largely discussed and nmnmented upon. The seminar received broad coverage in the nional media. USD L ENERGY EFFICENCY, GHANA 31 V. LESSONS OF THE DEMONSTRAT1ON AND PILOT OPERATIONS 5.1. The ESMAP ctdvity was a pilot and demonstration operation. Hence, one of its key objectves was to support Ghanal Institutions and personnel In gaining experiene and drawing lessons that would be useful in design a full-scale program. Tbis chapter presents the main lessons leaned from the activity In Ghana and draws as well on the resuts of similar end-use eney efficiency actvides ESMAP has cared out in counties such as Senegal and Tanzania. The lessons are grouped under four categories: (1) the decisionmaking process wihin the industries, (2) exploitation of energy conservatIci potential, (3) energy services, and (4) design and conduct of external technical assista programs. ine DeWaaiag P*css 5.2. Ile Low PdorAy of Eaery Conwerwaton among Dedsokers. Energy conservation was one among svera options the industries decisionmakers had to improve oveal efficiency of their firms' operations. It was not a high pnority for management in part becu of the relatively low share of energy in the industries' costs, this intu largely a function of low energy prices. In addition, much of the senior management's attention was on strategic issues (e.g., the inustry's competitveness In face of imports in a liberalizing environment, increasing production, improving the quality of products, personnel management, resolution of instiutional situion emerging from restructuing process, and access to apropriate financing sources). The intrinsic profitability of the energy consration measures thus did not appear to be crucial in shaping management decisions. Rather, the ease of implemention of the recommedations and the ext to which senior manmet would not be distracted from strec (and, sometimes, survival-related) issues appeared to the strongest influences on the management's commiment to implementation. 5.3. Risk Aversion as an ImpeAien to Cowsermion. Reflecting their generally cautious approach, managers, whether from private or public firms, were averse to risk- takdng In connection with either the country's situation (for foreign private investors) or the technical and financial aspects of the recomme projects. The payback proved esntal in making implementation decisions: according to the industries' managers, firms would be reluctant to invest in capital-intesive conservation measures, despite the coniderable potentidal for savings, because of the length of payback. Low-cost and capital-cost opportunities of about two years are moderately attractive, but a payback of three yea is less so, and a payback of fouyears is seen as totally unattractive. It 32 IUS2RUL ENRY EPCJNC1, GfAMi should be nod that Industries' tehnical staff had often deified the meas to be Impleented, but Waeny manaement had to be further convinced and rured by eernal e tise (eier nadonal or Irnational) on the soundne of the measures eviaed. S.4. TAu phaaf "P ag'ng o,f .Comarnma wtk IMWt Ratwdwig. The indust restructig process ape centra to any major invetmet decisions In ne consewvation. Iha is, decision about consevaon are not being made on a case- by-cse basis but commonly are igrated into a long-tem rehabllitaton or development program for the overl industry-the soalld pacbging process. For eample, the Tema Food Corporation has been conemplang l -e rehabilitation measures for several yeas. Following the audit exercs, It conditioned Investment decisions about energy conservation on the dnion and impl on of an overall negrated invesment progrm. This sounds ratonal, but In fact It may divert atention from no- cost energy conservaton measu ; furhermore, when conservation measures a too closey tied to larer rehilitation programs-which are generally more complicaed to define and fumd and hence more prone to delay-the conevation mear may be undy postponed. This, of course, distors the iiial raonale of the p gg process and may explain why some obvious savgs potentials remain unexploited despie their high proftability. ExpeI* a of5-BM Co.wverieu Poteatkul 5.5. CPo" for Low. ad Ne-oa sernwUea Ihe Imtan of the physical poti for eneWgy conservation offered by no- and low-cost measures was undelined In the earier ESMAP report on idusti ene ratioization in Ghana and has been affirmed in the detailed investigaions caried under the curreativity r free specfic dustries. The tnit to focus on these meares has been evidenced by the reslts obtaied during t ourse of the actvity tself. Even If al the I P - mendadon were not followed, the results achieved by some industries made the whole exercise profitble. T cas of the Cocoa Process Company, which bad fced sever overal hffidcey and Mis emen t before the executo of the audit, may be an excepton, however. Nonetheless, rsuts achieved by Ghana Textile ManufaclrI Compny (a private foreign fim) have been , and the global conduson iB that targeting no- and low-cost engy conseratin opportnities in an energy effiency Improvt exercie iB both feasble and higy profitable, wit requiingsst fimacial resources. 5.6. Nuc in e Pwtluag of Eau Ce adon Mserw vs. Lack of appropate funding for Ivestment in energy consevaion has been cted frently as a major barier to realig the pote l identfied in the idusti sector. NU2RJAL ENERGY EFFICIENC, GHAN 33 Saeval lessons from the Ghanai eperience (supported by similar results in Senegd) suggest that dit problem needs to be undestood and addressed in more subtle deta: a. 27. Locals of PJFw gorLow-Coat Mewws. A lage shato of energy conservation potenti derives from no-co and low-co meures, and these are the most meares the industries are most likely to consider and Implemt. When low-cost measures-often catch-up matenance actionrquire finding, is genealy comes fiom the Indues' own resources and heace b available. (If these resources are not sufficient, the Improve ts genly are not Implemented because the trnsacdon cost for exteral fding ar imprctcal for the small size of the invesment.) b. 17.e "Inadwtmfd4 er mn TMConwerwa6v Focus of oargeae Fdlg. On the oter end of the fnding spectum, capital-hsive meaures, which generaly Involve modification of processe or replacement of large pieces of equipment, a often either postpe, sometmes Indefinitely becau of risk, or 'packWd" Into more comprehesive abltiprograms. Fundingf tus may be available, but manemet desions are based on tecological, f cW, or strategic c n of the oveall program raer than on the specffics of any ind meaures. Except for the very higly energy Intensive huries (e.g., frtilizers, steel, cement, and aluminum), where ergw is central to the ndustrial process itself, the deionm process appears to be driven by an *industri rationale rather ta by an energy conservation' rationale; funin requirement wil also be dermined by the industrial aspocts of the program and can be met only throh iusrial flnning scheme. Large scale energy consevation invetme wil then be many the result of an industrial development process. Ihe development of emadred energy conservation fii mg s may not stmulate th implemenaon of capital-Intensive measures, except if it introduces conc y terms, which would be economically unjustfied and likely to bias the decisio in5 proces. C. 17ke PoFe afo,r Funin of "bI-Be*wMea Me_ares. lhe only case in which ex al financng may prove an effectve tool for removing constraints to investmet in energy conservaton is for the 'in-between' measue-generally the replacement of light equipmet such a motors and heat recovery devices and the inslation of capcits. The cost and scope of ihese measures are limitd enough to llow management to make decisions on a case-by-case basis (i.e., withot packaging) but fuding I re II may appear too high to be met by the industr' own resources wthon adding excessive pressure on their financial siution or not high enugh to justfy, pardcularly with a poor financia i 1 - eiation system, the usual trsaction costs associaed with obtaing extemal funding. 34 INUSIAL ENERGY mFIChRNCY, GHANA Ewrgy Servik 5.7. ITe Diverse Needs wad Eqiectaons of Ame Raww. Audied industries in Ghana (as well as in other counties where ESMAP has carried out similat programs) present different levels of awans about energy conservation and expectadons about energy services. They had an overal sense (at least, at the tcnical staff level) about standard and most evident energy comervation opportnes and genera ways to Improve energy efficiency; but the qunified information base on the energy-using systms was extremely poor (if It existed at all). Moreover, the scope of potential savings, the investmet costs, the profitability of the measures, and the operational procedures to implement them were generally unknown and not asssed to allow mMagerial decisions and eifective implementation. The "information gap" and the need for tehical services were patent; however, the industries' management did not fully or always recognize them nor perceive the value of commissioning consuldng fim. The cost of consuldng services, the absce or nonvisibility of knowledgeable local consultarts, lack of experience in managing and exploiting consulting sevices, and the low priority accorded to energy conservation appear to be the main barriers to the utilization of technical services. Furthermore, some general skepticism prevailed about possible conbion from Initiatives sponsored by national administatve entities and/or international institions to supply these services. 5.8. lsTe Response to D(Vereat Levds of Exergy Audi. Several types of audits were offered to indusWies, ranging from walkhough aud (a few hours to one or two days spent in one plan) to in-dep audits (seval weeks in the plant). The probability that iplementation of conservation measures will follow audits seems much higher for the in-depth energy audits than for the wallthrough audis. According to a survey by the Ghanaian consting fim SAGES (mmission by the Ministry of Fuel and Power), more than half of the respoing firms that had wa ugh audits hat recoed conervation measures did not follow up on the reco ons, whfle all the firms that had semidetalled or ineth audits imple a significant share of te recommendations.U These resuts are not prising and are consitent with the nature of the "information gap' and the expectations of indstial firms. 5.9. Th Costs oft Aim%. These depend on the size and complexity of the industries and the type of audit, ranging from few thousands dollars (for walkthrough audis) to some US$50,000 to $60,000 (for inepth audit in relatively complex plants). Compared with similar opeatons in more industriaized countries, the latter figures L. The srwvy also covered die ndbsfrM audid In de cowse of the ESMAP actviy. For dtese bdwsvls, dte swrvy's resads cowfln dhe ESMAP estmates prested in dis rport ad, in fact, tend to be somewhat more optimlstkc about the b,~emto r IUSIRUL E EGYEFICENCY, OHANA 35 appear emely high (say, at least, twice the cost of the same audit In the United States or Canada). There are sever reasons for thi: the cost of Intewnational expexis and ssociated logtical expenditures (tavels and stays); the time needed to collect bae data; the problms of communications and relaonships between the consultants (commisoned by naional aministi and/or eational entities) and the client industries, which are granted some free services; the cost of managing the overa exercises; and so on. Becaue plant and process data is very limited, auditg budgets and schedules are affected. Consideable efort and mapower is absorbed in sketchin layouts, process flow diagrams, electrical one-line digrms, and mechanical system schematics In sufficient detail to comprehend the design and operation of the plant and the interplay of mat s and energy streams. Substatl investigative efort is required to obtain physica and process desig and operaion information from which to develop a compreensie range of energy savings options. Dbwct SI9port Program 5.10. Suypl-Ddvwe Pgraiws. Support programs for industri energy conservadon that are initiated by national instiutions-with or without the concurrence of exten cooperton agencies-have centered around the provision of energy services and have been driven by 'supply considrions. Aimed at compleng or palliang nsufficnt price signals, these programs have included a large component of direct energy services (dits, technica support, training, etc.) to the industries and consequendy have focused much of their attention and resources on prviding technical services. Typically, to reduce a perceived informaion gap,* the nadond and coop tg agencies will absorb sul costs to commission consulting firms to provide these seic for Industries, which may make only a nominal conbution to paying the real cost. 5.11. Some Lim to thds Approwa Providing energy services to industries may prove intsically very profiable as an exercise, as illusated by the experiences of Ghana or Senega. However, the limits and risks assted with this exercise should be carefully assessed with respect to three interrelated consierons: a. ImopsIt of aujat sifppoi0tfMiscak. It i impossible to sustain the level of effort involved in don progrms to support energy services on a seconwide basis. b. ROldeac, In resowre soeadoiL Aside from the high cost of consulting services, the effectiveness of allocatig managerial resources to organizing and monitoring direct services to industries can be questioned if it prevents managers from developing susainable and market-based policy measres. 36 WUS2RUL ENERGY EFFC ENCZ GHANA c. Rk f pervn dk&. T may be an Importa concer. Diect suppott ptogrms may lead policymakes to neglect pricing and othr incentive mea es, whh are crucial for promotng end-s energy efficienc. They also may involve central admInistativ institutons in arse more properly in the domain of commercial and privae consulting services, and they thus may distort the market for ery services. 5.12. Ibe Iu isldl Prwmwrk. An extson of the tndeacy to base energy consevaton programs on the supply of engy services has been the propeniy to promote National Energy Conservation Unks as the Insdtiuonal focus of nadonal conservation ef and itional assitance programs. Adminv Instons may justfiably become Involved in promoing coneraton thugh policy, instuional, and pricing meaes and by seitizing energy u8se (trough demonsaion programs, for eample) to fte need for ad proifitbility of conservion. At same time, it would be unrealistic ad counterpucte to have the sam mive nstitution serve as the engn for reducing the informaon gap by hain It control he atual provisio of th energy svices. Thu, Iuta s-t hig e o d aim at developing te policy-oened fntions of istuio and n at refrcing any propensity of administrative entes to substhitut *emselves for commerci actors and interfe wit market mechisms. UNUSILL ENERGFF1CENC7, GHANA 37 VI. CONTNUATION OF THU ESMAP ACTIVIY 6.1 d a The ls part of the report deals with a proposed contiaton of the ESMAP support to Ghanas efforts for prmotig engy consevation in the indua sectr. This proposal folows a request formulated by the Govermt of Ghana and builds on the results of the past activities and on th e perience gained by Ghanalan Insmtuons, UNDTCD, and ESMAP. Ghana's Pffon1 for Energ Conseratlon 6.2. E"V P dag M s. provem n end- energy efficiency remais one sigificant mepone of Ghans overl energy policy. Ghan is adresing this question, ffrst, ro global meaus relating to enr pricing and increased reli on market forces. ITh Govenment has recently completed a study on the costs and pricing of eectrcity, for which there are still major ditortions. A schede for progressively adjustng electciy prices up to ts long rn margin cost has been prepared, and the power utilities have already prwposed a fis incrse In this direc Ihe Goverment i expected to decide shortly on the price adjusmns. 6.3. The NIo Ea 11rgy Conserwoa Progrmaw. The Goverment of Ghana thirough he Minty of Fud ad Power (MFP), is also pursuing an action program aimed at c e ng the above pdcing and market librization meares. The progras objecdves are tDo Improe the orl coordination of energy convato i tives, encourage the development of ene servic and Ghmaian expertse ouresoes, and h e awarws of the ority and bnefs of ener cavaon among end-users.Y2 6.4. The IsgiAie In Waa. Wihin the MFP, a smallU consttuted of the senior profesionals, has been etuted with the overall ronsbflity of designing, steeing, and monito e program. To dishage i funtions, and paricuarly to implemen its acion progm, the nr consevaton unit (CU) is stregtening ks own intuial capabwil though r its procedures and interfac wih the sector's actos tvolved in energy consevin, increaig expose of is senior staff to energy efficency progrms and iniatives In other countries, and devoloping a data base 11 7Jpm e repoi, ba vsModdaw hea*fi * 1950 W?rwaxq fA dWiNd &Ery B=& Acordg to di eM, do odbja ad wope VI wo* In ewV conae on haw not euifudb,dw1S A* dLaob f gm. N h 1991. 1 ' M , P1 1 11 £iIil I,l' . i1 ! [jtiS FIS 5f4 Fi NUSRUL ENERGY EFFICENCY, MM 19 IECP essentally target the no- and low-cost measures. Only In very exceptional cases should large nvesment projecs be investgated i detail. The ESMAP pilot actvity has (a) clearly confirmed th existnce of a vast potental for sving energy through these sorts of me s; (b) demo d t poteal can substantily be realized with the supply of appropriate energy servics; and (c) hined ta more capital-intensive measures, even if highly profitable, will not be Implemeted because of the risk-aversion of decisioDmakers and lak of fince. Should they be favorably conemplated by industries, they would then be Integrated Into more comprehensive industrial rehabilitation and restricturing programs largely independent of energy conservation concers. Achieving this base objective will be, foremost, the result of the decisions of the industries' management to the etent they are provided with appropriate energy price signals and opera under more competive conditions. However, the IECP, as an 'istitutonalT approach, can complement and speed up the market mechanism by reducing two of the most critical barriers faced by the industry for Implemening ihese measures- the inforaion gap and the high transaction cost of financing some of the low-cost measures. In this pespecive, the development of energy services and the esablishment of a small and flexle financa facility may be instrment for the success of the IECP. 6.8. Enewg Servc. Energy services such as the energy audis are essential to reduce the information gap. The key issue in encouraging the development of energy services is to sh ftom a supply-riven to a demand-driven approah. To date, the provison of eneY services has been mainly driven by the supply sde: the administron, through the former NEB, with its own resources or with the spo of eealW sources and donor contributions, has played a leading role In providing energy services to industial fims. These services were free of charge for the industries; the consulting firms were selected by the adminraion or the donor Institutions; the client was the adminon; and the Industries had a passive role. This approach, mainly jusifed on the grounds that ons were necear, led to substantial and tngible results, but they cannt be sustained: not ondy are perverse effe are to be expected (e.g., lack of focus of the services, pmus of the fim, reduced control over the consulting firm, and risks in seleing consulting fim) but the effort would not be possible on a foil-scale basis because of limitat in funding and managerial resources (from public or international origin). The commercial charaer of energy services, particuarly energy audt, has to be fully recognized by policy-makers as well as beneficiaries, and the demand dimension must be revitized. 6.9. Bii of SAu& icrs. The industril firms should fully play their role of cient: select their own consultants (a firm or an indidual); agree, within conatual arrangements, on the act and detailed scope of the services to be provided; and pay for AU ANUSZRL NERGYEFFCINCY, GHANA toe services.1' Energy services proved to the inut firms (either public or private) toug NEB's conservation progrnams have been Wplied free of charge to date. For the ESMAP project t rationalo for this opion was that denon effects should be the main exctadon from the project. For fure conservation progms, the commercial firms, iter private or pulbUc, should bear a portion I of the ini cost of the ne services from which they will benei. The main objecdves of this measure wil be to ensmue that only firms really interested in improving their eergy efficienqy would benefit from the program and to get a coopative and dynamic atude during the Uditig proces.' SVeral options are available to imple t this principle: a. The cost bome by the frms should be In proportion to the overall audit cost. b. ITe firms should bear a portion of the cost at the ,eging of the audit and not afer the compledon of the audit The essent point is not to collect money from the fitms (as would be the ce for any meanism solely based on reimbursing the ni cost rough the actual energy savings) but to have them "tkiQg some risks In the auditin process and being effectively involved, concered ad modvated in this process.17 c. The MFP will set and apply ndes to allow a fair performanc of tis "demand ad supply" guame-fr example, by isuing crtia and procedures for rqbtelAg energy auditing comultants; making existing MFP meri eqipmet avalable to all registered consultants; and avoiding any diIn access to investme fn faidities based on tie selection of consulta 6.10. NatxnA*l o . Thobaisfor prving thogy seres thed i fim should be the natio eisting epert, paticuly that one consitud of existng firms speciazed in Industri l, equment d and power engineeri. As evienced by the ESMAP project, national consulting firms as well as indiviu consultants are caple of providing standad energy consulting services, 14. NDe AIb could is di tadad caual aemet sealpabite cm be cVlreS 15. & ny be pr.nawe to dfo new mat beld b the pdcbsg iechas Howr, as afs bask, di cos of lea onaag servIcs sil befi reovwr Buget ehat ha been baed onSW asawp$n 14 2I attd i lfk4 to _suInak cm do, di coot f di eV audt by reducing i t spen hi cole* it bse dat d bybcwn die aukI*rs'bm ra on dmuwes Ohan ards R ely to be qmeMenby tdb*imnu. 1z. It L coew to ha a Is,stae nwwna at di ft wsAe, di Pm wU parualy partic~vt I de co of de aud #0 l&w itsoglie b.Wvew ad ktre)k at ie seod, defn wIU rebwn dif*H balax tf* acoat cm t W&leaeww rc n fd au #)w die acul MAnS #0 mak do courwtoa r 4fsasa 1NUSmIL ESNGrFZNCY, GOAM 41 pailrly In electrical systems; for mechanical systems and process operation or equipment related work, some back-up, to be discussed on a case-y-cas bsis, may prwve usefu. Focusing on no- and low- or medium-cost measures wi be an option toaly compatible with a ful utilization of nation eptise. However, rules hould be clearly statd to avoid any kind of Imposed monopoly posion and to allow fair access of all competent frms or indiidud consultants to the supply of these services. 6.11. PFdiagf ofe Mw . Funing may prove to be one importat lue for the succs of the industral conservaion progm. Based on eperiene In other countries, it is very likely hat the range of eergy conservation portunies for which the C8ex of financing faiities will be the most detmna i low- to medium-capital- cost measures (say between 4 or S million Cedis to 20 or 30 million Cedis.n Lower- cost measure are geray catch-up m or operation Improvement, and they will be financed out of the firm's own resources (or they will never be implemted); higher-cost measures generaly involve changes of equpent, process mdficaio, and are likely to be Itegrated Into a more comprehensive rebiitation program. Sources for fing hese tpes of programs either exist (ISAC, CCCE) or have to be set up wiin a genead Industa rehabilttion ramewormk they cant raslly be a part of an eergy consevat progrmL Such an evice will have two impiaons on the esign of hex atlon of the ICP: the setng up of a financi fadlity for low- or medium- cost measurs should be one of the first actions to perform at the beginning of the exnsion. The initil conution could be quite small (say US$500,000) and shoud play mainly a calytic role. B se the payback priod of the type of measures likely to be financed through this facility is about two years, the acility soud be replenished tldy (auming ta riuse condition are based on the payback profie). Ceutamtiof. the ESMAP p,wea 6.12. Objectves and scope of the activity. ESMAP could continmu to asist the Governmet of Oa in eating its Indutrial energy conservation program, and iUarly in prov g suWort to address the issues menoned above. The ESMAP activity d d then focus on a. Reizin, at the level of thewhole industrialsector thepotenaof energy conservation offered by no- and low-cost meaures, as illusraWed In the frst phae of the activity on a small smple of Industries, wio ntrfeg with ay industrial restructuring process; and b. DevelopiAg a local market of eng services based on private and individual initiaive. 18 he figures arproe p Be geo Om mor e/nsagnade; &k are derfived an rfwd u e conervatonpvgrwm hx Segal any nOt be rekewntfr &na 42 wMUML ENERGY .07CIENCr, HAMA 6.13. The acedvity's ompont. Ihe actiy should comprise four main componts consisting of: a. Updatng the information base on the scope and demand from industries for energy conservation investment, aseaining with Ghanaian instituons the key asumptions on which the activity concept is based, and a8gee the main project procedures relating, for eamle, to udlizaton of national capabilities, selecion of consultng firms, biling of the energy services, and coordinadng and monitoring meanim. b. Definig the iutional framework required to monitor the program and to consolidate the capabilities of the Mistry of Fuel and Power for administeing the energy conservation programs: the insdtutioal componet should cover the following: I. Update and, if necessary, improve the MFP's data bases and nfrmation systm; Hi. Prepare the regulatory measur necesary to execu the program: clearance of energy consultants and services companies; procedures for accessing to the benefits of the progra, management of a finncial fcility, etc...; Mii. Expose senior administraive staff to similar situations and activities in other developed or developing counties. C. Promoting maket-based energy servid ou the provision of I. Technical support to Gbanaian energy consultamn and firms in their supplying sevices (such as enaergy audits) to Industries; ii. Quality control to the local consltants and client industries; Hli. Training of energy profio , pardcularly on audit medhologls for mechanical sysm - for which the local pertie i less developped than for electrical systems-. It should be underlined tht energy services should be provided by local consulting fim to industries on the basis of conttua agreemen directly negoclad between the idusries (te lients) and the consulting fims (the supplyers). Ihe industis would pay consuWng fees, based on the rates prevailing in Ghana; in principle, these fees shoud MDUS2RUEL ENERG EFFCENCr GHANA 43 substanlly cover cost of local consultancy sevice, whfle the ESMAP contribuion (a concessionary componen) would, In fact, cover the cost of transfring know-how to Ghanalan energy speiaists. d. Establishing and mangn a small fancl fcility to fimd low-cost measures acdig to recomme ans ready fomlated (sew above). Detailed specificaO for muing the city should be joitly agreed among the Govenment of Gbana, th donor(s) and ESMAP at the beginning of the second phase. 6.14. Budget and schedule Based on preliminary discussions with the asoation of Ghana m and MFP, i is epcted that some twenty industries will express interest In the program, and wil be willing to pay for eergy audi services. The overall input required to execut the program are esmated in the following table: TABU 4: Budget of tOe second phse of Oh ESMAP adMy Input and budget itks Total cost Jnsltulwialsuppor!t 5o0000 consulting services 35 000 study our 1S 000 -eg s f' 162 000 nteaional consultants (fees) 112 000 logisdcs 50 000 _~~~ of the &Mty 35 000 Miscellaneous 60 000 ESMAP suervsion costs 81 000 UNDP and World Bank fees 66 100 Total 444100 To this cost should be added the cost of services to be provided by local consultans and esmated to about $US 125 000. 44 WUSLM L EPJRGYEFFCZNCY, GHANA ANNEW a. Tho fowing annexes present data on the production, emrgy consumption and coneation potenti of the tre audited firms. Records on productdon and eneW costs were found to be Incomplete, pardicady for years before 1988. Data included In the annues rprese the best offrtu from the Indusies, NEB, the consultants and ESMAP staff to figure out the ma trends In production and egy consumpton. b. The following table indicat unit used In the amexes. atm UJai Produton 000 meric tons for CPC and TFCC and in OOC yards for GTMC Total coss 000 curt cedis Unit cost cume cedis per metric ton (or per 000 yards) Total em_y_co_ump_onOgap Joule Unit energy consmpio ga JouIe per metric ton (or per 000 ._____ _____ _____ _____ _ y yards) Electy cmption 000 kWh Petroleum product con 000 Liters Table 1.1: Cocoa Procesisg Compamy: Prdndion awd Energy cost PRODUCTON AND ENERGY CONSUMPTION ____ 1985 1986 1987 1988 1989 Production (000 t) 6051 6 147 7 987 11 100 10 384 Total energy consumption (GJ) 44941 54 809 46504 59 458 65 641 Unit energy oonsumption (GJ/t) 20 19 10 9 9 Annual anr costs (c 000) 25 880 41 880 47 190 72 400 96325 Electicity (c 000) 3 150 6 410 10 310 15 010 19 185 Petroleum products (c 000) 22 730 35 470 36 880 57 390 77 140 Electricity (000 kWh) 1 206 1 058 1 640 2 416 2 678 Fuel Oil (000 L) 1 015 1 275 1 015 1 269 1 400 Unit energy cost (cdt) 11.44 14.29 10.65 11.46 13.76 Source: Consiltants reports, NEB, CPC and ESMAP esimates. Table 1.2: Cocoa Procesing Company: Swwnuy of Conseraion Masaues ri the Mechanal sems TYE oF MEASu1RE ANNUAL SAVINGS CAITAL PAYBACK QUAMTiY 000 CEMCOST (MONT) ______________________________________ ~(000 CEDI) No-cosr MEASURES Improve combustion effciency of boiler and roaster #2 450 000 25 600 Eliminae leaks in the steam system 150000 8 250 Isolate hot water system to grinders, attriters 26 000 1 430 Adjust combustion efficiency of roaster # 1 3 300 180_ _ Sub-total 629 300 35 460 Low-Cosr rM.AS S__ Insulate steam/condensate tank and piping in the heat system 45 600 2 515 2 470 12 Insulate hot water system piping 3 100 170 500 35 Insulate central mass tank 24 500 1 350 500 4 Sub-total 73 200 4 035 3 470 10 CAPTAL-cor MEAsU__ _ Boiler fuel conversion 22 000 25 000 14 Sub-total _ 22 000 25 000 14 TOrAL 702500 61 495 28 470- 6 Source: Consultants reports. Tablk 1.3: Cocoa Procesing Company: Swnmary of Consermaion Measres in the Elecric Systems TYE OF MEASURE ANNUAL SAVINGS CAPrrAL PAYBACK COSr (MONTHS) LLAN's 000 EDIS (000 CEDIS) No-cosr MEAsuREs Eliminate leakages in the compressed air system 76 000 400 Switch off tower fan 36 000 200 Sub-total 112 000 600 1 1 Low-cos m EAsuREs _ _ _ _ _ _ _ _ _ _ _ _ Install automatic controls in the central air compressor 43 000 230 1501 8 Sub-total 43 000 230 150i 8 CAPTAL-osr muRES__ Replace motor drives 15 700 273 800 35 Improve power factor (capacitors) 48 000 1 102 1 325 14 Sub-total 63 700 1 375 2 125 19 TOTAL 218700 2205 2275 12 Source: Consultants reports. Table 2.1: Ghana Textfe Manfacturing Copany: Pmdudion and Ener Costs PRODUCFON AND ENERGY CONSUMMrON 1985 1986 1987 1988 1989 Production (000 yd) 6 051 6 147 7 987 11 100 10 384 Total energy consumption (GJ) 89111 91 682 108 550 150 918 165 462 Unit energy consumption (GJ/1,000 yd) 15 15 14 14 16 Annual energy costs (c 000) 37 292 63 342 92 585 156 315 197 733 Electricity (c 000) 13 676 24 951 30 560 47 625 65 209 Petroleum products (c 000) 23 616 38 391 62 25 108 690 132 524 Electricity (000 kWh) 5 229 4 122 6 '28 8 475 9 785 Fuel Oil (000 L) 1 442 1 540 1 696 2 430 2 958 Gas Oil (W3 L) 305 375 443 546 272 LPG (000 kg) 11 6 15 36 32 Unit energy cost (clt) 6.16 10.30 11.59 14.08 19.04 Source: Consultants reports, NEB, GTMC and ESMAP estimates. Tabl 2.2: Ghana Textile Mawfacwaoig Company: Swsmay of Ceinseraon Measues in the Mechnie Systems TYPE oF MEASURE ANNUAL SAVIS CAPITAL PAYBACK QUANT__ _ _ __ __Cjjj cosr (MsM) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(_ (000C S CEDTS) No}COST MNASURES Improve boiler combustion efficiency 97 000 3 400 Elinmnate steam leaks in the steam systemn 120 000 4 200 Reduce hot bath drai/overflow (wash bath equipment) 50 000 1 750 . Repair burner and equipment controls of the oil system 175 000 9 700 Sub-total 345 000 15 650 1 Low-coSr MEASURE Insulate steam piping 273 000 9 400 16 600 21 Insulate tank and piping in the bleach & dye equipment 3 800 130 120 11 Sub-total 276 800 9 530 16 720 21 CAMAL-COsr MWASURES Shift to IFO (fuel conversion) 11 000 10 000 11 Recover condensate (steam system) 225 000 10 500 15 000 17 Recover w3ste heat (bleach and dye plant) 60 000 2 200 4 000 22 Sub-total 285 000 23 700 29 000 15 TOrAL 906 800 48 880 45 720 11 ource: Consutants report. i01 I~ > > 48~~0 _ -1.0S X X | W - -- --- 0 b- tu --It-l £ Z NNZW~~~~~~~~~~~~~~~~I Table 3.2 Tat PFod Corpontoig Samumay of ConsenWojt Mesur in the Meduans d £y Tm of zAmm ANNUAL SAVBNGS CAPITAL COST P A ____________________________j QUANTITY T0DS ._.o CEIn)_I____ No-SooTMuA m _ _ _ _ _ _ E____ __at__atom _l _ _ __in_d_c__ _ __y_ __ 16000 550 ..mina sem leaks do fish ..uod plnt 30000 1100 __ _ _ove_b_d___ rh_____D_ _ _ ___ _ _ 95000 3 500 Eliminat,valn leak in & sem & umiaste ssam 90000 3200 SubwetaI 231000 8350 Jmite oles/o conmluuae in --- oil .M plt 3350 110 300 32 hinulat, saw. pzoke in do. cmmy plant 7 000 240 700 34 _r_____vw_______in fish =l ple _,- 4850 220 250 14 insate tank in dth bow plat 9 700 340 350 12 1umatesm and s te m pipng 70 000 2 440 6 60 32 Sub4ol 94900 3 350 8 200 29 CAPSTAL-CO MASr_ __ Reower auto hot wate in te c˘nay plat 32 600 1 625 2 5S0 19 Sub-total 32600 1 620 2550 19 TOTAL 358 500 13 320 tO 750 10 Swe Caoslnts zprt _ ---__ _ IS iiil a j1-- L00- -- a- Table 3.1: Trn Ped Ceopeswtvern Podufoie awl Costs PRDUTINAND ErM CaGirnaN 1985 1986 1987 1988 1989 _ 0 lr_den __ WO t) 20230 24 090 24385 24 800 25151 26 5S Total eng (GJ) 17 950 23 977 35 007 20 823 21 400 43 200 Usit ener Ponsupto (GJIt) 0.88 0.99 143 0.84 08 1.62 Amual aua gyo (c 0O) 14958 32 256 42 893 38 832 41863 61 500 Electricity (c 000) 14958 29 200 27 800 33 500 35 738 37 000 Perolaim produt (c 000) ... 3 056 15 093 5 332 6 125 24500 Eectticity (000 kWh) 4986 4 538 3 513 3 873 4 000 4222 Fad Oil (000 L) ... 191 559 172 175 700 Uni energy (di) .74_ 1.34 1.75 1.56 L." 2.31 Source: Conultants reots, NEB, TFC snd ESMAP estbnates ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME COMPLETED ACTIVITIES COwudy Ac*vky Date Number SUB-SAHARAN AFRICA (AFR) Africa Regional Anglophone Africa Household Energy Workshop (English) 07/88 085/88 Regional Power Seminar on Reducing Electric Power System Losses in Africa (English) 08/88 087/88 Istitutional Evaluation of EOL (English) 02V89 098/89 Biomass Mapping Regional Workshops (English - Out of Print) 05/89 - Francophone Household Energy Workshop (French) 08/89 103/89 Interafrican Electrical Engineering College: Proposals for Short- and Long-Term Development (English) 03/90 112/90 Bioma Assessment and Mapping (English - Out of Print) 03/90 - Angola Energy Assessment (English and Portuguese) 05/89 4708-ANG Power Rehabilitation and Technical Assstance (English) 10/91 142/91 Benin Energy Assessment (English and French) 06/85 5222-BEN Botswana Energy Assessment (English) 09/84 4998-BT Pump Electrification Prefeasibility Study (English) 01/86 047/86 Review of Electricity Service Connection Policy (English) 07/87 071/87 Tuli Block FPams Electrification Study (English) 07/87 072/87 Household Energy Issues Study (English - Out of Print) 02/88 - Urban Household Energy Strategy Study (English) 05/91 132/91 Budina Faso Energy Assessment (English and French) 01/86 5730-BUR Tecbnical Assistance Progam (English) 03/86 052/86 Urban Household Energy Strategy Study (EngLish and French) 06/91 134/91 Burundi Energy Assessment (English) 06/82 3778-BU Petroleum Supply Management (English) 01/84 012/84 Status Report (English and French) 02/84 011/84 Presentation of Energy Projects for the Fourth Five-Year Plan (1983-1987) (English and French) 05/85 036/8S Improved Carcod Cookstove Strategy (English and Frech) 09/85 04V85 Peat Utilization Project (English) 11/85 046/85 Energy Assessment (English and French) 01/92 9215-BU Cape Verde Elnergy Assessment (English and Portuguese) 08/84 5073-CV Household Energy Strategy Study (English) 02/90 110/90 Centml African Republic Energy Assessement (French) 08/92 9898-CAR Comoros Energy Assement (English and French) 01/88 7104-COM Congo Energy Asse (English) 01/88 6420-COB Power Development Plan (English and French) 03/90 106/90 CBte d'Ivoire Energy Asment (English and French) 04/85 5250-IVC Improved Biomass Utilization (English and French) 04/87 069/87 Pc,ver System Efficiency Study (Out of Print) 12/87 - Power Sector Efficiency Study (French) 02/92 140/91 Ethiopia Energy Assement (English) 07/84 4741-ET Power System Efficiency Study (English) 10/85 045/85 Agricultural Residue Briquetting Pilot Project (English) 12/86 062/86 CowuhY Acis* Dai Number Bagasse Study (English) 12/86 063/86 Cooking Efficiency Project (English) 12/87 - Gabon Energy Assessment (English) 07/88 6915-GA The Gambia Energy Assessment (English) 11183 4743-GM Solar Water Heating Retrofit Project (English) 02/85 030/85 Solar Photovoltaic Applications (English) 03/85 032/85 Petroleum Supply Management Assistance (English) 04/85 03S/85 Ghana Eney Assessment (English) 11/86 6234-GH Energy Rationaliztio in the Idusria Sector (Euglish) 06/88 084/88 Sawmill Residues Utilizatieon Study (English) 11/88 074/87 Guinea Energy A _t (Out of Print) 11/86 6137-GUI Guinea-Bissau Energy Assessment (English and Portuguese) 08/84 5083-GUB Recommended Tecenical Assistance Projects (English & Portuguese) 04/85 033/85 Mmagement Options for the Electrc Power and Water Supply Subsectors (English) 02/90 100/90 Power and Water Institutional Restructuing (French) 04/91 118/91 Kenya Energy Assessment (English) 05/82 3800-KE Power System Efficiency Study (English) 03/84 014/84 Status Report (English) 05/84 016/84 Coal Conversion Action Plan (English - Out of Print) 02187 - Solar Water eaing Study (English) 02/87 066/87 Peri-Urban Woodfuel Development (English) 10/87 076/87 Power Master Plan (English - Out of Print) 11/87 - Lesotho Energy Assessment (English) 01/84 4676-LSO iberia Energy Assessment (English) 12/84 5279-LBR Recommended Technical Assistance Prects (English) 06/85 038/85 Power System Efficiency Study (English) 12/87 081/87 Madagaca Energy A s_ (English) 01/87 5700-MAG Power System Efficiency Study (English and French) 12/87 075/87 Malawi Energy Asssment (English) 08/82 3903-MAL Technical Assistance to Improve the Efficiency of Fuelwood Use in the Tobacco Industry (aglish) 11/83 009/83 Status Report (English) 01/84 013/84 Mali Energy Asst (English and French) 11/91 8423-MU Household Energy Strategy (English and French) 03/92 147/92 Islamic Republic of Mauritania Energy Assessment (English and French) 04/85 5224-MAU Household Energy Strategy Study (English and Fnmch) 07/90 123/90 Maitius Energy Assessmet (English) 12/81 3510-MAS Status Report (English) 10/83 008/83 Power System Efficiency Audit (English) 05/87 070/87 Bagasse Power Potential (Englis) 10/87 077/87 Mozambique nergy Assessment (English) 01/87 6128-MOZ Household Electricity Utilization Study (English) 03/90 113/90 Niger Energy Assesment (French) 05/84 4642-NIR Status Report (English and French) 02/86 051/86 Improved Stoves Project (English and French) 12187 080/87 Counby Acdvb l& Nnbuer Niger Household Energy Conservation and Substitution (English and French) 01/88 082/88 Nigeria Energy Assessment (English) 08/83 4440-UNI Rwanda Energy Assessment (English) 06/82 3779-RW Energy Asessment (English and French) 07/91 8017-RW Sts Report (English and French) 05/84 017/84 Improved Charcoal Cookstove Strategy (English and French) 08/86 059/86 Improved Charcoal Production Techniques (English and French) 02/87 06S/87 Commerciliztion of Improved Charcoal Stoves and Carbonization Techniques Mid-Term Progress Report (English and French) 12/91 141/91 SADCC SADCC Regional Sector: Regional Capacity-Building Program for Energy Surveys and Policy Analysis (English) 11/91 - Sao Tome and Principe Energy Assst (English) 10/85 5803-ST Senegal Energy Assement (English) 07/83 4182-SE Status Report (Baglish and French) 10/84 025/84 Industrid Energy Conservation Study (English) 05/85 037/8S Preparatory Assistance for Donor Meetig (English and French) 04/86 056/86 Urban Household Energy Strategy (Eaglish) 02/89 096/89 Seychelles Energy Assessment (English) 01/84 4693-SEY Electric Power System Efficiency Stdy (English) 08/84 021/84 Siena Leone Energy Asesent (English) 10/87 6597-SL Somalia Energy Assessment (English) 12/85 5796-SO Sudan Management Assistance to the Ministry of Energy and Mining 05/83 003/83 Energy Assment (English) 07/83 4511-SU Power System Efficiency Study (English) 06/84 018/84 Status Report (English) 11/84 026/84 Wood Energy/Foty Feasibility (English - Out of Print) 07/87 073/87 Swazand Energy Assessmt (English) 02/87 6262-SW Tanzonia Energy Assessment (English) 11/84 4969-TA Peni-Urban Woodfuels Feasibility Study (English) 08/88 086/88 Tobacco Curing Efficiency Study (English) 05/89 102/89 Remote Sensing and Mapping of Woodlands (English) 06/90 - Industrial Eergy Efficiencq Technical Asistane (English - Out of Print) 08/90 122/90 Togo Energy Assessment (EngSh) 06/85 5221-TO Wood Recovery in the Nangbeto Lake (English and French) 04/86 055/86 Power Efficiency bnprovement (English and French) 12/87 078/87 Uganda Eergy Assesment (English) 07/83 4453-UG Status Report (English) 08/84 020/84 Institutional Review of the Energy Secto (English) 01/85 029/85 Energy Efficiency in Tobacco Curing industry (nglish) 02/86 049/86 Fuelwood/Forestry Feasibility Study (English) 03/86 053/86 Power System Efficiency Study (English) 12/88 092/88 Energy Efficiency Improvement in the Bnck and Tile lIdustry (English) 02/89 097/89 Tobacco Curing Pilot Project (English - Out of Print) 03/89 UNDP Terminal Report Coun*y Acdv* DeW Nambr Zaire Energy A05 (llish) 0S/86 5837-ZR Zambia Eergy Am t (English) 01/83 4110-ZA Staus Report (nglih) 08/85 039/8S Eney Sector IstutionalReview (nglsh) 11/86 060/86 Zambia Power Subsetr Efficiency Study (English) 02/89 093/88 Energy Sttgy Study (English) OQ/89 094/88 Ura HousIold Energy Strategy Study (English) 08/90 121/90 Zimbabwe Energy A _ (IXDlisb) 06/82 3765-ZIM Power System Efficiency Study (English) 06/83 005/83 Status Report (English) 08/84 019/84 Power Sector Maagement Assisance Ptoject (English) 04/8S 034/85 Petleum Man nt istance (Enlish) 12/89 109/89 Power Sector Management Instution Building (Engli - Out of Pdt) 09/89 - Carcold Uliation Prefesbility Study (English) 06/90 119/90 Integrated Eney Stategy Evaluatio (gih) 01/92 8768-ZIM EAS ASIA AND PACIIIC (WA" Asia Regional Pacidc Houseod and Rurd Energy Seminar (English) 11/90 - China County-,evel Ruw Energ y s (English) 05/89 101/89 Fuewood Foresty Preivstnt Study (English) 12/89 10/89 Fii Enery Ant glish) 06/83 4462-PU Indoesia Energy A(en ish) 11/81 3543-IND Status Report ish) 09/84 022/84 Power Geneation Efficiency Study nglis) 02/86 050/86 EneY Efficency in the Brick, Tile and Uns Industries (Engi) 04/87 067/87 Diesel acatin Plant Efficien Study (English) 12/8U 095/88 Ura Household Ener Stra Study (Englis) 02/90 107/90 Biomass 3asifier Preinestmet Study Vola. I & II (English) 12/90 124M90 Malaysia Sabah Power System Efficiecq Study (Enlish) 03/87 06887 Gas Utlizton Study (Engli) 09/91 9645-MA Myanr Euer Agy m (En"i) 06/85 5416-BA GNa Ene Agyt (En ) 06/82 3882-PNG 3tatus Rept h) 07/83 006/83 Energy Strategy Paper (English - Out of Pint) - - Institutiond Review in the Enr Seto (English) 10/84 023/84 Power Tariff Study (English) 10/84 024/84 Solomn Ildands Enery AEt glish) 06/83 4404-SOL Energy Aent aglish) 01/92 979/SOL South Pacific Petroleum Tansport in the South Pacfic (English-Out of Pnnt) 05/86 - Thailad Energy Asessment (English) 09/85 S793-TH Rurd Ener Is1 and Opfions (English - Out of Print) 09/85 044/85 Accelerated Disemination of Imprved Stoves and Charcod Kilns (Englih - Out of Print) 09/87 079/87 Co=" Acdv1y D.l Nwxbr ThaIland Norteast Region Village Forestry and Woodfiels Preinveatmmnt Sudy (Enish) 02/88 083/88 bIpact of Lower Oil Pices (ogli) 0/88 - Coal Development and Utilization Study (Enlish) 10/89 - Tonaga lr h_t (1ngIh) 06/85 5498-TON Vanuatu Eum8 A t (EnsM) 06185 SS77-VA Western Saoa Energy _ eng ish) 0618S S497-WSO SOUTH ASIA (SAS) Ban8desh EyaV A _esmmt (En") 10/82 3873-BD Priority Investment Program 05/83 002/83 Stts Report (Englis) 04/84 01S/84 Power System Efficienc Study (Engish) 02/85 031/8S Small Scale Uses of Gas Prefesibility Study (Eglish - (out of Print) 12/88 - nia Opportunities for Commeilization of Noventional Energy Systems (nglish) 11/88 091/88 Mahat Bagas Energ Efficency Projet (English) 05/91 120/91 Mini-Hydro Development on Iigation Dam and Caa Drops Vols. 1, I1 and m (Englsh) 07/91 139/91 Nepal Ena _ (Ensh) 08/83 4474-NEP Sfifts Rqxxt (&gSI) 01/85 028/84 Pakistan HoUsehold Ene A t (English - Out of Print) 05/88 - of Photovoltaic Programs, Applications, and Ma (English) 10/89 103/89 Sri ank A t (angls) 05/82 3792-4C Power Sysem Losu Redu Study (Bnglis) 07/83 007/83 Stt Report (English) 01/84 010/84 Industrial Ergy Conseaton Study (lh) 03/86 054/86 EROPE AND CENTRAL ASIA (ECA) Bastem Elurope The Fuure of Natual Gas in Eastem Europe (English) 08/92 149/92 Portuga Energy A t (nglish) 04/84 4824-PO Turey EneW As_t (English) 03/83 3877-TU MIDDLE EAST AND NORTH AICA (MNA) Morocco Ene Argt (English and French) 03/84 41S7-MOR Status Report (Enghsh and French) 01/86 048/86 Syria Energy (English) 05/86 5822-SYR Electrc Power Efficiey Study (English) 09188 089/88 Energy Efficiency Impwovement in te Cment Sector (nglish) 04/89 099/89 Enery Efficency Imp ment i th Fertlizer Sitor(Enhsh) 06/90 115/90 Coax" AcdW* Doe N=br Tunisia Fuel Substitutioon and French) 03/90 - Powet Effiiency Study (E3glish ad Frenh) 02192 136/91 8Yer Misaemn Se in &Be RaWedtalad Ta*q Sectors (EUSH* 04/92 146/92 Yemen Energy A(Engl;iSh) 1284 4892-YAR Energy lIvestment Priorities (Engis - Out of Print) 02/87 6376-YAR Housed Energ Strty Stady Phas I (EHnglih) 03191 126191 LATIN AMERICA AND THE CARIBBEAN (LAC) LAC Regional Region Seminar on Electric Power System Loss Reductiou in the Caibbean (nsh) 07/89 - Bolivia Eneg A (EngliSh) 04/83 4213-BO Nation Energy Plan (aglish) 1287 - Nationa Enry Plan (Spanish) 08/91 131191 La Paz Private Power Technical Assistan (English) 11/90 111/90 Natudal Gas Distnbution: EBoomics and Regulatio (Englsh) 03/92 125/92 Peeasiebity Evaluation Rual Electrification and Demand Asomumt (osh and S;panith) 04/91 129/91 Prvate Powe Generation and Tran o nglishA) 01/92 137/91 Chile Energy Seui e Review (English - Out of Prit) 08/88 7129-CH Colombia Eneg Stey Paper (ngish) 12/86 - Costa Rica Energy A (English and Spanish) 01/84 465-CR Recommeaded Technical Aistce Proects (English) 11/84 027/84 Forest Residu Uftiztion Study Eglsh and Spanish) 02190 108/ Dominican Republic Energy A (English) 05/91 8234-DO Ecuador Energy A (Spanish) 12/85 86-EC Energy Sat Phase I (Spanish) 07/88 - Energy Strategy (Engish) 04/91 - Haiti Energy At(English and French) 06/82 3672-HA Status Rpo (English and Frn) 08/85 041/85 Houshold Ener Stategy nglih and Feh) 12/91 143/91 Honduas Energy A _t (English) 08/87 6476-HO Petroleum Supply Manaement (Eonglish) 03/91 128/91 Jamaia Energy A _e pish) 04/85 S466-CM Poleum Procuement, Refining, and Disrbution Stuy nglis) 11/86 061/86 Energy Efficiency Bilding Code Phae I (Enlsh-Out of Pnnt) 03/88 - Energy Efficiency Standards and Labels Phasn I (English - Out of Print) 03/88 - Manm Iforo System Phms I (English - Out of Print) 03/88 - Chacoal Production Project (niSH) 09/88 090/88 FPDCO Sawmili Residues Utiization Study (Engish) 09/88 088/88 Energy Sector Staty and lIvestment Planing Study (Egliah) 07/92 135/92 Coun*iy AcW* 1 V Number Mexico Impoved Charcoal Productiot Within Foret Management for the State of Veacuz (Engs and Spanish) 08191 138/91 Panama Power System Efficiency Study (English - Out of Pint) 06/83 004/83 Paraguay BqgV A_enit;ih) 10/84 5145-PA Recomendd Technical Assisce Projecta (English- (Out of Pint) 09/85 - Status Rpo (English and Spanish) 09185 043/85 Peru Enegy A s english) 01/84 4677-PE Status Report (English - Out of Print) 08/85 040/85 Ptoposal for a Stove Disseminrtion Program in the Siesra (Engli and Spanis) 02/87 064187 lyew Stywa (Sp*) 12/90 - Saint Li.cia Energy As_ (English) 09/84 5111-SLU SL Vint and the Gradines Eneryy A _t (English) 09/84 5103-M Ttriidad and Tobago Ene A t (Enli - Out of Print) 12/8S 5930-TR GLOBAL Eney End Use Efficiency: Research and Stategy (English Out of Print) 11/89 - Guidelines for Utility Customer Management and Metering (English sad SpaDish) 07/91 - Women and Energy-A Resource Guide Th Intendational NetworL PoDLcies and Expern (English) 04/90 - of Personal Computer Modds for Ener lanning in Developing Co _nties (Engi) 10/91 - 080692 i. hl~ SIUM1A FASO ,B U R2 K I N A F A; _ 0 - - { t ~ ~ ~ ~~ ( R ~~~~~e g io n COTEAt L,<@ DT /) + 7t U p p\ r W es t u ' R e a e 8 'i o nco s.1m , WA~~~~~~~~~~~~~~~~~~~~~~~~~~~ wo g ) ')R t 4 ( g * t *allbml o~Lg3m~ STAPON NMMkO row P3MATS DIOR l) C 7. -~ " ' alhv?° _G@lS , / X ;) (u\SOtHlfi ;S =~) ...'= <, > N o r t h e ro R e 9 i o n kBimbili T.A bSdi.ATK'7. 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