Energy and Water for

Sustainable Living:

A Compendium of Energy and Water Success Stories

U.S. Department

of Energy

U.S. Department

of State

U.S. Agency for

International Development

World Summit on Sustainable Development, Johannesburg, South Africa, 2002

DOE/PI-0001
Disclaimer

This report was prepared as an account of work sponsored by an agency of the United States Government.

Neither the United States Government nor any agency thereof, nor The University of Chicago, nor any of

their employees or officers, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process 

disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does 

not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States

Government or any agency thereof. The views and opinions of document authors expressed herein do not

necessarily state or reflect those of the United States Government or any agency thereof, Argonne National

Laboratory, or The University of Chicago.

Available electronically at http://www.pi.energy.gov,

http://www.state.gov/g/oes/sus, and

http://www.usaid.gov/pubs/WSSDEnergyCompendium.pdf.
Energy and Water for

Sustainable Living:

A Compendium of Energy and Water Success Stories

Prepared by Argonne National Laboratory

for U.S. Department of Energy,

U.S. Department of State, and

U.S. Agency for International Development

July 2002

DOE/PI-0001
ii Energy and Water for Sustainable Living

This report is printed on recycled paper
Energy and Water for Sustainable Living iii

I am pleased to offer this compendium of sustainable energy and water 

success stories to the Delegates and civil society attendees of the World Summit 

on Sustainable Development. 

Energy and water are necessary for building sustainable societies throughout the

world, and this report illustrates many successful efforts toward that end. This report

shows that sustainable development in the energy and water sectors is taking place

where the principles of good government obtain. 

This document describes energy and water projects, completed or underway, 

that are building blocks for sustainable development. Some of the projects described

involve the U.S. Government or U.S. corporations; others do not. This report is 

complementary to a larger effort reporting on sustainable development activities in all

sectors in 2002 supported by the U.S. Government: Working for a Sustainable World:

U.S. Government Initiatives to Promote Sustainable Development. 

I know that you will find this report informative. 

Spencer Abraham

United States Secretary of Energy

FOREWORD
iv Energy and Water for Sustainable Living

We would like to thank all of the project managers who submitted success

story projects for inclusion in this report. Unfortunately, some submissions

could not be included in this compendium because incomplete information 

was provided, the basic criteria for inclusion were not met, or, the candidate

essentially duplicated another submission.

Our appreciation also goes to Argonne National Laboratory for preparation

of this report, and particularly to Principal Investigator Deborah Elcock.

This compendium was conceived and managed by David O. Moses, 

U.S. Department of Energy. He will accept any praise and is responsible for all

errors. He is grateful for assistance provided by Ann Stewart, U.S. Department 

of State, and Dr. Griff Thompson, U.S. Agency for International Development.

Financial support for preparation of this document was provided by the three

organizations just mentioned. 

ACKNOWLEDGMENTS
Energy and Water for Sustainable Living v

FOREWORD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

NOTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

GOVERNANCE AND FINANCE FOR SUSTAINABLE ENERGY 

AND WATER RESOURCES MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . 3

Energy Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Fostering Governance in the Energy Sector . . . . . . . . . . . . . . . . . . . . . . . 3

The Energy Governance-Finance Connection . . . . . . . . . . . . . . . . . . . . . . 6

Water Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Fostering Governance in the Water Sector . . . . . . . . . . . . . . . . . . . . . . . . 7

Mobilizing Financial Resources to Manage Water Resources . . . . . . . . . . . 8

The Water Governance-Finance Connection . . . . . . . . . . . . . . . . . . . . . . . 8

SUSTAINABLE ENERGY AND WATER SUCCESS STORIES . . . . . . . . . . . . . . . . . 9

India: India Zero Emissions Transportation Program . . . . . . . . . . . . . . . . . . 10

Guatemala: Hidroeléctrica Papeles Elaborados S.A. . . . . . . . . . . . . . . . . . . . 12

Mexico: Renewable Energy for Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . 14

Russia: Krasnogorsk Water-Efficiency Program . . . . . . . . . . . . . . . . . . . . . . 16

Mexico: Renewable Energy for Protected Areas in Mexico . . . . . . . . . . . . . . 18

Vietnam: Sale and Distribution of Household Biogas Systems . . . . . . . . . . . 20

India: Alternative Bagasse Cogeneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Global: Collaborative Labeling and Appliance Standards Program . . . . . . . . 24

Indonesia: Water Efficiency Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Bangladesh, India, Nepal, Pakistan: South Asia Transboundary Water 

Quality Monitoring Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

China: Geothermal Heat Pump Demonstration Project . . . . . . . . . . . . . . . . 30

Argentina: Solar Systems for Schools in the Province of Jujuy . . . . . . . . . . . 32

Kenya: Ngong Cookstove Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Honduras: Soluz Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Poland: Cracow Clean Fossil Fuels and Energy-Efficiency Program . . . . . . . 38

Bolivia: Bolivia Private Hydropower Project . . . . . . . . . . . . . . . . . . . . . . . . . 40

Mexico: Design, Installation, and Testing of a Cleaner Combustion 

Technology at a Petroleos Mexicanos Refinery . . . . . . . . . . . . . . . . . . . . 42

Bulgaria: Pirinsko Pivo Brewery Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Costa Rica: Tierras Morenas Wind Farm . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Republic of Korea: Ulsan Landfill Methane Gas Project . . . . . . . . . . . . . . . . 48

Jamaica: Environmental Audits for Sustainable Tourism . . . . . . . . . . . . . . . . 50

Philippines: Increasing Electric Power for Development 

in the Southern Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Thailand: Clean Thai Biogas Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Colombia: Cartagena Water Supply, Sewerage, 

and Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

CONTENTS
vi Energy and Water for Sustainable Living

Mexico and the Philippines: Ultraviolet Waterworks . . . . . . . . . . . . . . . . . . 58

Mexico: Cerveceria Cuauhtemoc Moctezuma . . . . . . . . . . . . . . . . . . . . . . . . 60

Taiwan: Environmental Center for Livestock Waste Management . . . . . . . . 62

Guatemala, El Salvador, Honduras, Nicaragua, Panama: Increased Use 

of Renewable Resources Program for Central America . . . . . . . . . . . . . . 64

Russia: Cherepovets Water-Efficiency/Tariff Reform Program . . . . . . . . . . . . 66

China: US/China High-Efficiency Motors Demonstration Project . . . . . . . . . 68

Mexico: Improving Manufacturability and Reliability 

of Solar Water Distillers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Romania: Leak Abatement in Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Peru: Renewable Energy Systems in the Peruvian Amazon Region . . . . . . . . 74

China: Modernized Biomass Utilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Chile: Clean Cities Santiago Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Indonesia, Malaysia, Vietnam, India, Philippines, Thailand: 

Greening the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

India: Efficient Power Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Bolivia: Kanata Hydroelectric Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

India: Sustainable Cities Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Brazil: Municipal Water-Efficiency Program . . . . . . . . . . . . . . . . . . . . . . . . . 88

India: India Renewable Resources Development Project . . . . . . . . . . . . . . . . 90

Mexico: Comision Federal de Eletricidad/Arizona Public Service 

Company of Phoenix Renewable Energy Mini Grid Project . . . . . . . . . . 92

El Salvador: Increased Access by Rural Households to Clean Water . . . . . . . 94

Uganda: Solar Light for the Churches of Africa . . . . . . . . . . . . . . . . . . . . . . 96

Jordan: E7 Project 82 - Efficiency Improvements in Power Plants . . . . . . . . 98

Ukraine: Industrial Energy Efficiency in Ukraine – Gostomel Glass Plant . . .100

APPENDIX: EXAMPLE RESEARCH AND DEVELOPMENT 

TECHNOLOGY TRANSFER CASE STUDIES AND ENABLING POLICY

ENVIRONMENT PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

EXAMPLE RESEARCH AND DEVELOPMENT TECHNOLOGY 

TRANSFER CASE STUDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Chevron Texaco Gulf of Mexico Gas Hydrates Joint Industry Project . . . . . 106

Wabash River Coal Gasification Repowering Project/Clean Coal 

Technology Demonstration Program . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Restoring Coastal Wetlands Using Drill Cuttings . . . . . . . . . . . . . . . . . . . . 110

Mallik 2002: An International Research Initiative Considering 

Gas Hydrates as a Potential New Energy Resource . . . . . . . . . . . . . . . . 112

EXAMPLE ENABLING POLICY ENVIRONMENT PROGRAMS . . . . . . . . . . . 115

South Asia Regional Initiative for Energy Training . . . . . . . . . . . . . . . . . . . 116

South Asia Regional Initiative for Energy Rural Electrification Services . . . . 118

Egyptian Environmental Policy Program . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Egyptian Electric Regulatory Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

CONTENTS
Energy and Water for Sustainable Living vii

ACRONYMS, INITIALISMS, AND ABBREVIATIONS

ACUACAR Aguas de Cartagena

AED Academy for Educational Development

AEP American Electric Power

AFV alternative fuel vehicle

APS Arizona Public Service Company of Phoenix

ARENA-ECO Agency for Rational Energy Use and Ecology

Ave. avenue

BAL Bajaj Auto Limited

BCS Baja California Sur

BNL Brookhaven National Laboratory

BP British Petroleum

CABEI Central American Bank of Economic Integration

CAGECE Companhia de Água e Esgoto do Ceará 

CCM Cerveceria Cuauhtemoc Moctezuma

CCT clean coal technology

CEGCO Central Electricity Generating Company

CENPEEP Centre for Power Efficiency and Environmental Protection

CEP Código de Endereçamento Postal 

CETAR Consejo Transitorio de Administración Regional 

CFA Corporación Financiera Ambiental 

CFE Comision Federal de Electricidad

CI Conservation International

CLASP Collaborative Labeling and Appliance Standards Program

CNG compressed natural gas

CO carbon monoxide

CO Colorado

Co. company

CO2 carbon dioxide

CONAMA RM Comisión Nacional Del Medio Ambiente, Region Metropolitana 

CORFO Corporación del Fomento de la Produccion 

Corp. corporation

COS carbonyl sulfide

D.F. Distrito Federal 

DC direct current

DC District of Columbia

DEP Dirección Ejecutiva de Proyectos 

Dept. Department

DLPC Davao Light and Power Company

Dr. drive

EAST Environmental Audits for Sustainable Tourism

ECLWM Environmental Center for Livestock Waste Management

NOTATION
viii Energy and Water for Sustainable Living

EEC Energy Efficiency Council

EEPP Egyptian Environmental Policy Program

EERP Egyptian Electric Regulatory Program

EESBA Egyptian Energy Service Business Association

EETP Energy and Environmental Training Program

EJEDSA Empresa Jujeña de Sistemas Energéticos 

Dispersos Sociedad Anónima 

EMS environmental management system

EPT Electric Power Institute

EPT Electric Power Technologies

Eximbank Export-Import Bank of the United States

Ext. extension

FENERCA Financiamento de Empresas de Energia en Centroamerica 

FIRCO Fideicomisio de Riesgo Compartido

GEF Global Environment Facility

GEP Greenhouse Gas Pollution Prevention

GFZ GeoForschungsZentrum 

GHG greenhouse gas

GHP geothermal heat pump

GmbH Gesellschaft mit beschränkter Haftung 

GPS global positioning system

GSC Geological Survey of Canada

GSC greening the supply chain

H2S hydrogen sulfide

HPE Hidroeléctrica Papeles Elaborados

ICE Instituto Costarricense de Electricidad

IFC International Finance Corporation

IGCC integrated gasification combined-cycle

IIE Instituto de Investigaciones Electricas 

ILZRO International Lead Zinc Research Organization

Inc. Incorporated

IREDA Indian Renewable Energy Development Agency Limited

ISO International Organization for Standardization

IZET India Zero Emissions Transportation Program

JIP joint industry project

JNOC Japan National Oil Consortium

KEMCO Korean Energy Management Corporation

LA Louisiana

LBNL Lawrence Berkeley National Laboratory

LLC Limited Liability Company

NOTATION
Energy and Water for Sustainable Living ix

LLNL Lawrence Livermore National Laboratory

LPG liquefied petroleum gas

Ltd. Limited

MA Massachusetts

MCA Millennium Challenge Account

MD Maryland

MEM Ministry of Energy and Mining 

METROGAS Chilean company

MNES Ministry of Nonconventional Energy Sources 

MOA Memorandum of Agreement 

MOPNG Ministry of Petroleum and Natural Gas 

N north

NC North Carolina

NE Nebraska

NEA Nepal Electricity Authority

NEES National Energy Efficiency Strategy

NETL National Energy Technology Laboratory

NGM New Generation Motors

NGO nongovernmental organization

NJ New Jersey

NM New Mexico

NMPC Niagara Mohawk Power Corporation

No. number

NOx nitrogen oxides

NPTO National Petroleum Technology Office 

NPUST National Pingtung University of Science and Technology 

NREL National Renewable Energy Laboratory

NTPC National Thermal Power Corporation

NW northwest

NY New York

ODA official development assistance

OEP Organization for Energy Planning

Org. organization

PA Pennsylvania

P.A. Public Accountant

PCS power conversion system

PEMEX Petroleos Mexicanos 

PEPP Philippines Energy Partnership Program

Ph.D. Doctor of Philosophy

PNNL Pacific Northwest Laboratory

PROCEL Programa Nacional de Conservacáo de Energia Elétrica 

PV photovoltaic

NOTATION
x Energy and Water for Sustainable Living

RAJAC Regia Autonoma Judeteana de Apa-Canal Iasi 

RAPS Remote Area Power Supply

REACH Reduced Emissions and Advanced Combustion Hardware

REEF Renewable Energy and Energy Efficiency Fund

RES Rural Electrification Services

RESPAR Renewable Energy Systems in the Peruvian Amazon Region

RRD Renewable Resources Development 

S.A. Sociedad Anonima 

SARI South Asia Regional Initiative

SATWQM South Asia Transboundary Water Quality Monitoring

SCADA Supervisory Control and Data Acquisition

SCNG Strategic Center for Natural Gas 

SDC Swiss Development Corporation

SEIA Solar Energy Industry Association

SLCA Solar Light for the Churches of Africa

SLU Southeastern Louisiana University

SME small and medium-sized enterprise

SO2 sulfur dioxide

St. street

TPS thermal power station

TX Texas

UBB United Bulgarian Bank

UN United Nations

UNDP United Nations Development Program

UNEP United Nations Environment Program

UNF United Nations Foundation

Univ. university

US United States 

US$ United States dollar(s)

USA United States of America

US-AEP United States-Asia Environmental Partnership

USAID United States Agency for International Development

USDOE United States Department of Energy

USEPA United States Environmental Protection Agency

USIJI United States Initiative on Joint Implementation

UV ultraviolet 

VA Virginia

VSD variable speed drive

VSP vertical seismic profiling

WEF Water Environment Foundation

WET Water Efficiency Team

WWF World Wildlife Fund

NOTATION
Energy and Water for Sustainable Living xi

NOTATION

UNITS OF MEASURE

A ampere(s)

Ah ampere-hour(s)

atm atmosphere(s)

bbl barrel(s)

Btu British thermal unit(s)

d day(s)

ft foot (feet)

GW gigawatt(s)

GWh gigawatt hour(s)

h hour(s)

ha hectare(s)

kcal kilocalorie(s)

kg kilogram(s)

km kilometer(s)

kV kilovolt(s)

kKW kilowatt(s)

kWh kilowatt hour(s)

kWp kilowatt(s) peak

L liter(s)

lb pound(s)

m meter(s) m3 cubic meter(s)

Mg megagram(s)

mi mile(s)

MW megawatt(s)

MW(e) megawatt(s) (electrical)

MWp megawatt(s) peak

rps revolutions per second

s second(s)

V volt(s)

VDC volt(s) direct current

W watt(s)

Wh watt hour(s)

Wp watt(s) peak

yr year(s)
xii Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 1

INTRODUCTION

This report grew out of an April 2001 study on energy

prepared by the U.S. Agency for International Development

(USAID) for the ninth session of the United Nations

Commission on Sustainable Development. That study,

called Energy for Life, A Case Study Compendium, contained

35 examples demonstrating the variety of ways that energy

technologies can improve quality of life and showing the

dramatic impact these technologies can have on economic

development.

This report presents case studies of energy and water

technology applications to illustrate how sustainable development can flourish in developing countries when principles of good governance are present. It also illustrates that

funding from both the private and the public sectors flows

to areas where principles of good governance are operating. 

A sustainable development project must meet three 

criteria. First, it must result in economic growth — a good

or service must be provided, and jobs must be created.

Second, it must encourage social development — the goods

or services developed must promote or enhance communities and social systems. Third, the project must occur in a

manner protective of human health and the environment. 

Governance refers to the processes by which public,

private, and civil society1 participants organize themselves

and coordinate with each other to make decisions, develop

rules of behavior, and distribute rights, obligations, and

authority. Good governance incorporates transparent,2

accountable, and participatory practices designed to build

consensus on priority needs and foster the more generalized

building of civil society and cultures.

Some basic principles of good governance are listed here: 

• Integrated, intersectoral, and multi-objective 

decision making; 

• Informed and science-based decision making that

includes adequate public input; 

• Broad stakeholder participation and empowerment;

• Strong, effective, and culturally appropriate institutional,

policy, and legal frameworks (including standards and

regulations);

• Effective coordination among sectors; 

• Emphasis on decision making and assignment of

authority at the lowest appropriate level; and

• Commitment to create and strengthen strong human

and organizational ties.

Although the water and energy projects highlighted in

this report are diverse, they all have one thing in common:

they attracted private-sector funding. While many also

included public financing, the combination of sustainable

development and good governance attracted the privatesector support.

The case studies represent instances where commercially

proven energy and water technologies have been successfully

applied. These success stories often could not have occurred

without technology research, development, and transfer, or

without enabling actions such as feasibility analyses and

institution-building programs. Indeed, the process of technology diffusion and adoption begins with research and

development and ultimately depends on the proper institutional environment of policies and regulations for ultimate

commercialization. The appendix to this report provides

examples of (1) energy and water technologies currently

under development that have the potential to contribute to

sustainable development and (2) programs that are contributing or have contributed to the development of an

enabling policy environment in which sustainable development could occur.

In conclusion, this work is designed to complement a

much larger U.S. government effort in support of the World

Summit on Sustainable Development that is now underway.

This larger effort will result in a profile of international

activities by the U.S. government in support of sustainable

development initiatives and programs across all sectors. The

profile, Working for a Sustainable World: U.S. Government

Initiatives to Promote Sustainable Development, should be

available in August 2002.

1 “Civil society” refers to the realm of society in which social institutions operate. These include families, churches, neighborhoods, civic groups, etc. 

2 “Transparent” means open access to information about procedures, policies, and decisions, whether by government, corporations, or civic groups.

Access to information permits stakeholders to challenge authoritative actions with which they disagree and to seek redress for misconduct. Access

to information also deters misconduct by reminding officials of their accountability.
2 Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 3

Governance and Finance for Sustainable Energy

and Water Resources Management

Sustainable development embraces the concept of

meeting the needs of the present without compromising the

ability of future generations to meet their own needs. The

United Nations Conference on Environment and Development,

or Earth Summit, held in Rio de Janeiro, Brazil, in 1992,

addressed global environmental issues. A product of the

Earth Summit was Agenda 21 — a comprehensive set of

guidelines for achieving sustainability that was adopted by

172 nations at the conference. Since then, nations have been

striving to incorporate principles of sustainable development

(economics, environment, and societal equity) into new

development projects, including energy and water projects.

Official development assistance (ODA) often plays a

vital catalytic role in achieving development goals. However,

in the past decade, ODA to developing countries has

decreased, despite the fact that energy and water infrastructure needs in developing countries have increased. More

than US$1.5 trillion is needed each year to meet global

energy demand. On March 14, 2002, President George W.

Bush announced that the United States will dramatically

increase its core assistance to developing countries by 50%

over the next three years, resulting in a US$5 billion annual

increase over current levels by fiscal year 2006.1 This

increased funding will go into the new supplemental

“Millennium Challenge Account,” or MCA. In announcing

the MCA, the President stressed that this new money is in

addition to the more than US$10.8 billion per year the

United States currently devotes to ODA. “The goal is to 

provide people in developing nations the tools they need to

seize the opportunities of the global economy. In return 

for this additional commitment, we expect nations to adopt

the reforms and policies that make development effective

and lasting,” the President said. 

ODA alone cannot meet the growing need for investment in the energy and water infrastructure of the developing world. Private-sector funds must help bridge this gap.

However, without sound and predictable “good governance”

principles in place, private funding is difficult to attract.

Experience shows that private-sector funds flow to areas

that have established economic, political, and legal foundations amenable to development. Such foundations, or principles, include, among other things, policies that allow for

capacity building, informed decision making, standard commercial practices, institution building, competitive environments, consistent and enforced regulations, and public participation in decision making.

ENERGY SECTOR

Fostering Governance in the Energy Sector

Economic growth and social development in developing countries are hindered by a lack of adequate, efficient

supplies of quality modern energy. The energy sector in

many developing countries is dominated by state-owned

monopolies that are often not operated along commercial

lines; they are commonly characterized by relatively low levels of efficiency and frequently undermined by corruption.

The result is underperformance, which translates into high

costs in terms of both overall cost levels and detailed cost

structures. The high costs often lead to the adoption of

untargeted, damaging, and distorting subsidies. This problem results in considerable economic waste and fiscal burdens at the macroeconomic level in many developing countries, and it also inhibits the provision of energy to other

sectors that require supplies of quality modern energy at the

microeconomic level. 

The ability to create a business environment that will

attract the investments necessary to provide adequate, efficient supplies of quality modern energy is constrained by

problems that can be characterized as follows:

• Inefficient energy-sector institutions, 

• Inappropriate energy-sector policies, 

• Intermittent application of the rule of law, 

• Immature markets for energy and environmental 

services, 

• Weak local capital markets, 

• Poor performance by business management in energy

institutions, 

• Lack of adoption of best practices and standards by

energy institutions and the public sector, 

• Lack of consumer knowledge about legal and commercial requirements for sustainable energy services, and

1 “President Proposes $5 Billion Plan to Help Developing Nations,” remarks by President Bush on global development, Inter-American Development

Bank, Washington, D.C, March 2002.
4 Energy and Water for Sustainable Living

• Lack of roles for civil society in formulating public

policies for energy services. 

Good governance, by addressing inadequacies in the

administration of the energy sector by public and private

sector institutions, can resolve these constraints. Generally,

governance involves how decisions are made, implemented,

and enforced within a sector as well as how disputes are

resolved. Good governance embodies transparency,

accountability, efficiency, and the rule of law. It leads to relatively low levels of corruption; consistent, cost-effective

levels of service provision; and responsiveness to changing

conditions and public needs. 

Energy-sector governance is the institutional scaffolding

(i.e., transparent, predictable, and enforceable political,

social, and economic rules) of public administration that

enables transactions for energy products and services to be

economically sustainable. Governance (both public policy

and corporate governance) is a means to achieve the economic and financially viable provision of services by the

energy sector. There is a growing international acceptance

of several basic principles that can promote sustainable

development by all countries, anywhere in the world.

These include:

• Effective and democratic institutions that include an

independent and fair judiciary; 

• Sound monetary, fiscal, and trade policies that promote

economic growth and encourage social development

and environmental protection; 

• Participatory roles for all members of civil society; and

• Sound policies informed by science and the scientific

method. 

A well-governed energy sector is characterized by utilities that operate under standard commercial practices.

Commercialization refers to the wide range of activities necessary to bring a generation, transmission, or distribution

company in line with commercial standards. These activities include, but are not limited to, forming a management

team that is independent from the government; hiring or

developing a staff with the appropriate skills for the job;

releasing redundant staff; improving cost recovery; setting

up metering systems; installing management information

systems; and keeping financial records in line with international accounting standards. 

With respect to the energy sector, reforms are the

embodiment of improved governance. The reasons for

implementing energy-sector reforms depend on the conditions of the particular country seeking the reforms. In

developed countries, the main goal is to reduce end-user

tariffs through increased efficiency within the sector. In

contrast, in most developing countries unable to finance an

energy supply infrastructure with state funds, the goal is to

privatize state-controlled monopolies in order to attract sufficient private investment to upgrade and expand the inadequate infrastructure.

Experience has shown that energy-sector reform usually

starts from a shared vision of the core objectives. These

objectives typically include a reliable, affordable energy supply; commercially viable enterprises; tariffs that reflect costs;

private-sector investment; maximized competition and

deregulation; and an overall structure that meets international standards, best practices, and legitimate investor

expectations. The benefits include improved service and

quality for customers; more efficient use of scarce resources;

technology transfers; foreign direct investment; increased

trust in government institutions; macroeconomic growth;

environmental improvement; and, most importantly, better

living standards for people.

Energy-sector reform encompasses a number of elements, but these elements have common objectives: to

increase access by users, increase the efficiency of energy

services, decrease the cost of energy services, and introduce

competition into the sector wherever feasible. The elements

of energy-sector reform are generally implemented through

a sequence of steps designed to achieve full private-sector

involvement and competitive markets. First state-owned

utilities are commercialized and corporatized. Then

enabling legislation is passed, allowing the introduction of

private ownership into the sector. Next, as private energy

companies become interested in investing, a host state

establishes the regulatory framework to supervise a competitive, privatized sector. Then the actual transfer of utilities

into private ownership occurs, which requires the

unbundling of existing power generation, transmission, distribution, and supply activities into separate activities.

Finally, once unbundling of state-owned utilities has

occurred, the resulting separated entities are partially or

wholly privatized.

Implementation of successful energy-sector restruc-
Energy and Water for Sustainable Living 5

turing typically follows three basic stages: (1) comprehensive

legal and regulatory reforms, (2) commercialization and

development of the existing dominant utilities, and 

(3) domestic and/or international private-sector investment

and privatization. The linchpin for this vision is a comprehensive energy law that meets key global norms and standards. The law should define the basic structure of the 

sector; establish basic policies and priorities; separate the

functions of policy making, ownership, and regulation;

establish an independent regulator; and create a framework

for private investment and ultimate privatization.

Therefore, the major aspects of energy-sector reform

can be consolidated as follows:

• Promulgation of legislation that allows unbundling

and/or privatization of existing assets: The establishment of a reordered regulatory framework and the

introduction of competitive markets and commercial

practices into the energy sector are preliminary steps

toward privatization of existing assets. 

• Promulgation of legislation that allows private investment in the industry: Enabling legislation is required to

permit transfer of existing assets and concessions into

private hands. Public access to the privatization

process and information about privatization helps

develop community acceptance of this step in energysector reform. 

• Establishment of an independent regulatory authority:

Institution building is a central aspect of energy-sector

reform. Privatization of assets and competitive markets

require a reordering of the regulatory framework to

supervise the restructured energy sector. Critical aspects

include the separation of the regulator from both the

energy policy arm of government and state-owned

power providers; the financial autonomy and independence of the regulator; the adequacy of the regulator’s

inspection and supervisory authority; and the ability of

the regulator to address anticompetitive circumstances.

• Corporatization and commercialization of existing utilities: A considerable amount of data from many countries demonstrates that development benefits accrue

when utilities are separated from other government

functions and when utilities are exposed to the best

commercial practices. 

• Privatization of existing assets: The final stage in sector

reforms is the implementation of privatization. A critical

issue to consider is whether the process of privatizing

existing utilities is transparent and open to foreign

investors, thereby enhancing both public participation

and capacity building. 

The Energy Governance-Finance Connection

The growth of the energy sector that is required to

meet human needs hinges on attracting investment. Both

debt and equity are drawn to safe havens where funds are

likely to grow and provide a return on investment. Legal,

regulatory, and policy regimes that ensure a stable environment (i.e., transparent and predictable political, social, and

economic market rules) characterize locations in which

investments can flourish. Governance actions designed to

mobilize investment in the energy sector include these:

• Promoting transparency in the formulation, promulgation, and implementation of rules, regulations, and

technical standards;

• Establishing nondiscriminatory third-party access to

and interconnection with energy networks and grids;

• Establishing independent regulatory authorities separate from and not accountable to any supplier of energy

services;

• Establishing nondiscriminatory, objective, and timely

procedures for the transportation and transmission of

energy;

• Requiring parties to undertake measures designed to prevent certain anticompetitive practices from occurring in

energy sectors (e.g., engaging in anticompetitive crosssubsidization or using information obtained from competitors that could lead to anticompetitive results); and

• Increasing the public’s understanding of the market

approach to providing energy services and its knowledge of ways in which it could effectively participate in

this approach. 

WATER SECTOR

Fostering Governance in the Water Sector

Good governance is recognized internationally as a 

critical centerpiece of effective, sustainable, and integrated

water management. Water managers and users alike

acknowledge the need for transparent, accountable, and

participatory governance to build a consensus on priority

needs today and to respond to an ever-changing context in

the future. Beyond immediate benefits, effective water
6 Energy and Water for Sustainable Living

resource governance also offers numerous opportunities to

foster the more generalized building of civil society and a

culture of democratic governance in many countries.

There is no universal model for water governance

appropriate for all contexts. There is, however, a growing

international acceptance of several basic principles that are

shared by all “good water governance” participants anywhere in the world. The following aspects are involved:

• Integrated, intersectoral, and multi-objective decision

making about water resources at the basin scale, in

which the relationships between groundwater and surface water; weather, climate, and hydrologic resources;

water quantity and quality; land and water; and freshwater and marine systems are recognized and in which

the central importance of the ecological services provided by hydrologic systems is acknowledged; 

• Informed and science-based decision making, in which

the public has adequate access to water resources information for an improved understanding of the water

cycle; 

• Broad participation and empowerment of stakeholders

in water resources decision making, across sectors and

social/cultural groups and especially including women; 

• Strong, effective, and culturally appropriate institutional,

policy, and legal frameworks (including setting standards and regulations) that reinforce integrated,

accountable, participatory, and sustainable management

and that minimize corruption; 

• Effective coordination among sectors, between public

and private participants, and across multiple geographic

and institutional scales; 

• Emphasis on decision making and assignment of

authority at the lowest appropriate level; and

• Commitment to creating and strengthening the human

and organizational capacity for sustainable and integrated water management, in both the public and 

private sectors. 

Mobilizing Financial Resources to Manage

Water Resources

Mobilizing the financial resources necessary to manage

water resources is often the first and major challenge facing

managers and governments around the world. The responsibility for financing the water resource infrastructure and

other needs often rests with the local or national government, although investment from private and other external

sources is also frequently required. 

The greatest investment gap exists in the developing

world, where the current annual investment of US$75 billion pales in the face of the total water resource needs in all

sectors, estimated to be as much as US$180 billion per year.

Financing to address water investment needs in developing

countries is currently drawn from a mix of sources, including these: 

• Domestic public-sector financing at the national or

local level (from taxes, user fees, public debt, etc.)

[64% of total expenditures];

• Direct investments from domestic private sources 

[19% of total expenditures]; 

• Direct investments from international private sources

[5% of total expenditures]; and 

• International sources of support and cooperation

(including multilateral and bilateral ODA) [12% of total

expenditures].

Each of these sources has, and will continue to have, 

an important and distinct role to play in ensuring a sustainable and secure water future for the world. These totals tell

only part of the story, since different water use sectors 

(e.g., agriculture, urban and rural water supply and sanitation, industry, energy, and environmental services) require

unique combinations of funding that can depend more

heavily on some of these sources than on others. In all 

sectors, however, it is clear that the majority of future

investments must increasingly come from an appropriate

balance of self-regenerating domestic public sources of capital as well as domestic and international private sources. 

The Water Governance-Finance Connection

The themes of governance and financing for water

resources management intersect at many levels. Good 

governance is a central precondition for the successful 

generation of the financial and human resources necessary

for the sustainable development and management of water

resources. Unfortunately, some of the countries that are

most in need of additional resources lack the governance

conditions that will either attract new sources of financing

or ensure that public and private resources are managed in

an equitable or sustainable way. 
Energy and Water for Sustainable Living 7

Sound governance practices create “enabling environments” that encourage good both public- and privatesector investment. Beyond providing general support to

achieve good governance conditions, specific attention

should be directed to efforts that reduce risk and facilitate

healthy capital markets, especially domestically. Some additional guidelines on using good governance to mobilize

financial resources include these: 

• Water should be recognized as an economic, social,

and environmental good; the full costs of water management and water services should be acknowledged;

and the costs should be allocated transparently, equitably, and sufficiently throughout society (through 

tariffs, subsidies, taxes, etc.). 

• Conditions and mechanisms of access to capital should

be available at all levels (e.g., microcredit, revolving

loan programs, local bond issues). 

• Stable systems that provide access to water and allocate

water should be available (e.g., water rights frameworks, formal and informal water markets, common

property management). 

• Accountable and transparent systems, the full accounting of costs and benefits, a progressive policy and legal

environment, and a constructive relationship between

civil society and government should be promoted to

ensure that flows of resources from all sources are generated and allocated in a way that protects the public

interest, considers the needs of the full spectrum of

social participants, and adequately protects ecosystems. 

The responsibility for forging better water governance

throughout the world, including creating the enabling environment necessary for sustainable financing, is ultimately

the responsibility of local participants. However, these

processes are unlikely to take hold in many places unless

there are increasingly coordinated partnerships among

external donors, domestic public bodies, the private sector,

and civil society. In this mix, ODA serves an essential catalytic role. Targeted and strategic expenditures of development assistance funds can help advance the sustainable

management of water resources through good governance.

Such assistance can include supporting basin-level management structures, fostering appropriate technologies and 

nonstructural measures to reduce consumption and improve

quality, and strengthening enabling conditions to mobilize

financial resources. Such support is most effective when it is

applied to local strategies that encourage innovative processes

and approaches, broaden the menu of tools and options

available, leverage internal and external support and investments, and build capacity in civil society and the public and

private sectors.
8 Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 9

SUSTAINABLE ENERGY

AND WATER SUCCESS STORIES
Summary

Under the IZET Program, seven three-wheelers are

being field-tested in the city of Agra for one year. With the

initial success of the prototype three-wheeler demonstration

phase, Bajaj Auto Limited (BAL) of India and New Generation

Motors (NGM) of the United States (US) have signed a

Memorandum of Agreement (MOA) to enter into a joint 

venture to produce 1,000 electric three-wheelers in India.

Soon the people of India, and perhaps those throughout the

region, will have options for replacing pollutant-emitting

conventional vehicles with zero-emission vehicles. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable

development

Partners in the IZET Program recognized that a sustainable economy requires a market-based approach. In pursuit

of this strategy, the program collaborated and cost-shared

with US and host-country private sectors to leverage

resources and encourage private-sector participation. 

Sound principles that have helped instill commercial

standards and attract private financing included the formation of a management team independent of the government,

and hiring and developing staff with appropriate skills

matched to the job. Educational workshops for decision

makers, stakeholder partnerships and exchanges, dissemination of best practices, and participation in international

forums and workshops have enabled informed decision making. Such activities have also increased the awareness,

knowledge, and skills of sector professionals in such technical areas as commercial business practices and management

of private-sector involvement.

Increased public support for sustainable development

has been enhanced through programs in public education

and communication; implementation of state-of-the-art systems for collecting, demonstrating, and exchanging information; and innovations in the use of education, communication, outreach strategies, methods, and tools. Papers were

presented and protype vehicles were displayed for show-andride at various transport-related seminars to emphasize the

importance of zero-emission vehicles in mitigating tailpipe

emissions and improving human health.

The federal and state governments have issued a series

of stringent directives and regulations against conventional

vehicles and encouraged alternative transport options in

urban areas.

Financing

Total project investment from all sources is roughly

US$9,360,000, which covers activities through prototype

testing and some redesign. Estimated private financing contributions include US$3,900,000 from NGM, US$1,500,000

from BAL, $30,000 from Sheraton, and $30,000 from Pizza

Hut. The United States Agency for International

Development (USAID) contributed US$3,900,000.

NGM has secured US$700,000 in funding from the

Industrial Credit and Investment Corporation of India

(ICICI), a leading private equity investor in India, to analyze

vehicle design to improve production techniques for commercial production of the first 200 electric three-wheelers.

Initial USAID funds were leveraged 1:1.3, and, should

full-scale production ensue as expected, the private-sector

funding will dwarf USAID’s funds.

INDIA

India Zero Emissions Transportation Program (IZET)

Location: Delhi, Agra, and Pune

Type: Design, test, assemble, and demonstrate electric vehicles

Size: 1,000 electric three-wheelers

Funding: Total: US$9,360,000

Private: US$5,460,000

Public: US$3,900,000 

Objective: To reduce health impacts from vehicular 

emissions.

Duration: 1999–2003

Scale: Urban

10 Energy and Water for Sustainable Living
The Project

Indian urban centers are among the most polluted in the

world, resulting in respiratory disease and the expenditure of

billions of dollars a year. Emissions from two- and threewheeler two-stroke vehicles are the major source of urban air

pollution. The IZET Program seeks to replace pollutantemitting conventional two-stroke engines in two- and threewheeler vehicles with electric motors. Electric vehicles have

zero tailpipe emissions, thus reducing the impact on human

health. 

IZET is collaborating with motivated private firms that

have the technological, financial, and commercial resources 

to move electric-vehicle technology from demonstration to

commercialization. BAL has entered into a MOA with NGM

to produce 1,000 state-of-the-art electric two- and threewheelers in India. Each partner to the agreement has agreed

to produce 200 electric three-wheelers by early 2003. BAL

and NGM are also considering a similar MOA for production

of electric two-wheelers. 

Technical Data

The key technologies used are direct current brushless

electric motors and microcontrollers. The equipment is

designed to meet Indian driving and environmental conditions. Range, for example, is well within the majority of 

consumers’ needs, and the vehicles can operate without

degradation during the rainy season.

Performance Data

The IZET Program serves two cities. On the basis of the

projected penetration scenario, electric vehicles are expected

to reduce significant amounts of vehicular pollutant emissions,

including greenhouse gases.

Participants and Roles

BAL screened electric-drive systems for the Indian marketplace, which led to NGM of the US becoming a technology

provider. BAL has also provided substantial resources in

design, testing, certification, operation, maintenance, oversight of data acquisition, and product evaluation of electric

vehicles. NGM provides state-of-the-art motors and controllers for electric vehicles and cost-shares their design and

production activities in the program. Welcomgroup’s Mughal

Sheraton Hotel in Agra uses prototype electric three-wheelers

to transport guests to local attractions. Tricon Restaurants

International (Pizza Hut) in New Delhi will use electric twowheelers as part of its normal operations. USAID identified

various partners in India and in the US to increase interest in

electric-vehicle technology. With nominal financing, USAID

brokered partnerships with organizations in the host country

while maintaining the overall schedule and providing technical assistance to partners.

Partner Contacts

Ram Berry

USAID India, American Embassy

New Delhi 110021 India

Phone: 91-11-419-8712

Fax: 91-11-419-8454

E-mail: rberry@usaid.gov

Tapan Basu

Bajaj Auto Limited, Akundi-Road, 

Pune 411035 India

Phone: 91-21-772-85

Fax: 91-20-771-903

E-mail: tbasu@bajajauto.com

Nabih Bedewi

New Generation Motors

44645 Guilford Drive, Suite 201

Ashburn, VA 20147 USA

Phone: 703-858-0036

Fax: 703-858-0699

E-mail: nbedewi@ngmcorp.com

Energy and Water for Sustainable Living 11
Summary

A small, commercial paper company, HPE, brought energy

to its facility by constructing a hydroelectric power plant

nearby. Realizing a significant business opportunity, HPE

brought 8.2 MW of additional capacity to the grid connection, providing approximately 42 GWh of electricity per year.

Given the demands of the power system in Guatemala, if such

renewable energy had not been provided, energy needs would

likely have been met through thermal energy production. In

addition, HPE completed one of the first international green

certificate transactions involving a developing country, whereby

a Dutch utility (Nuon) has committed to purchase 100% of its

environmental benefits for a period of 10 years.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

A key principle that helped attract the private financing

was the effective coordination among sectors, between public

and private actors, and across multiple geographic and institutional scales.

A management team independent of the government, the

hiring and developing of staff with appropriate skills matched

to the job, and stakeholder partnerships and exchanges also

were important to attracting private-sector participants. 

Important institution-building principles included privatization of the energy structure, and a comprehensive energy

law that meets global norms and standards characterized by

basic policies and priorities, and separate policy-making,

ownership, and regulatory functions.

Financing

Total project investment was US$12,400,000. All funds

came from private sources and included US$5,400,000 from

shareholders, US$6,000,000 from the Central American Bank

of Economic Integration (CABEI) and local banks, and

US$750,000 from the Corporación Financiera Ambiental

(CFA), an environmental venture fund, and US$250,000 

from E+Co. 

Capital costs included US$6,800,000 for infrastructure

and construction and US$3,700,000 for power plant and

equipment. Costs for studies, administration, legal, and 

engineering totaled US$800,000.

Financing was 44% equity (from the shareholders) and

56% debt (from the other sources).

The Project

The project consists of a small commercial hydroelectric

power plant connected to the grid in Guatemala. Initially, the

primary goal of the project was to supply energy to the nearby

paper plant using a constant and inexpensive power source.

As the company realized that there was a significant business

opportunity associated with generating this power, it expanded

the capacity and became a mainstream electricity supplier to

Guatemalan distribution companies, which are privatized.

The project transmitted lessons to traditional lending institutions, thereby facilitating access by new renewable energy

ventures to bank financing.

GUATEMALA

12 Energy and Water for Sustainable Living

Hidroeléctrica Papeles Elaborados S.A. (HPE)

Location: Pueblo Nuevo Vinas, Department of Santa Rosa

Type: Hydroelectric plant

Size: 8.2 MW installed capacity 

Funding: Total: US$12,400,000

Private: US$12,400,000

Objective: To provide constant, inexpensive energy for a

manufacturing facility, and subsequently to 

provide electricity to distribution companies.

Duration: 1999–2000

Scale: Rural
Technical Data

The project consists of two 5-MW “Francis” turbines and

maximizes the hydroelectric generation of the Aguacapa River.

The HPE is generating approximately 42 GWh of electricity per year and is operating at 58% of installed capacity.

Performance Data

The project has generated 400 jobs during the 

construction phase and 30 additional permanent jobs for

operating and maintaining the facility in the town of Pueblo

Nuevo Vinas.

Roughly 20 employees have been trained in turbine

maintenance and related subjects.

The plant has reduced annual carbon dioxide (CO2)

emissions by 10,000 tons, and a carbon emission transaction

was made with the Dutch utility Nuon. The utility has committed to purchase 100% of the environmental benefits from

HPE. This transaction represents one of the first international

green certificate transactions involving assets in a developing

country.

Participants and Roles

Shareholders of HPE provided US$5,400,000 in equity

financing for the project. The CABEI, local banks, and the

environmental venture fund CFA provided US$6,750,000.

E+Co provided enterprise development services and a

US$250,000 loan, which leveraged US$750,000 from CFA. 

Partner Contacts

Jaime Arimany, President

Hidroeléctrica Papeles Elaborados, S.A. – HPE

Guatemala

Phone: 502-360-3103

E+Co 

383 Franklin Street

Bloomfield, NJ 07003 USA

Phone: 973-680-9100

Fax: 973-680-8066

E-mail: eco@energyhouse.com

Energy and Water for Sustainable Living 13
Summary

Through the program, more than 1,000 engineers, 

technicians, and agricultural extensionists throughout Mexico

are receiving training in the appropriate use of renewable

energy technologies for ranching and farming. More than

1,000 demonstration projects are scheduled for installation,

and more than 10,000 rural producers are expected to benefit

from the program, which will result in a strong and growing

private market for renewable energy technologies in the agricultural sector. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

The Government of Mexico has demonstrated the capabilities and the institutional arrangements, including appropriate independent evaluation and oversight, necessary to

implement and manage this project.

The program is highly decentralized, with activities

underway in each of Mexico’s 32 states. Thus outreach and

education of the local participants are key to its success and

long-term sustainability. Such outreach and education,

although focused on empowering local people to make decisions related to their own energy and water use, also provide

a structure for increased democratization in rural areas, which

is often reinforced by the need to make decisions at a community level. 

Capacity-building activities that have helped foster the

implementation of commercial standards, thereby helping to

attract private financing, include the formation of a management team independent of the government, hiring or developing staff with appropriate skills matched to the job, installing

management information systems, and keeping financial

records in line with international accounting standards. 

Strengthened institutional structures resulting from the

creation and definition of competitive markets and the management of private-sector involvement also have helped attract

private investment. 

Financing

Total project investment from all sources is about

US$31,000,000. Roughly 25% (US$7,750,000) will come

from the Mexican private sector. The Government of Mexico,

through World Bank financing, contributed half of the funding (US$15,500,000).

The Global Environment Facility (GEF) contributed

US$7,750,000. United States (US) investment in the pilot

phase of the project, which eventually led to the GEF funding, included roughly US$5,000,000 from the US Department

of Energy (USDOE) and US$6,000,000 from the US Agency

for International Development (USAID). The Mexican private

sector contributed US$2,500,000 to the pilot phase. 

The Project

In 1994, USAID and the USDOE began collaborating

with Fideicomiso de Riesgo Compartido (FIRCO), the

Mexican implementing agency, and local suppliers to introduce renewable energy technologies. Under the “Mexico

Renewable Energy Program” (MREP), more than 200 PV

water pumping projects were installed in 12 Mexican states,

MEXICO

14 Energy and Water for Sustainable Living

Renewable Energy for Agriculture

Location: Rural Mexico

Type: Rural agricultural development

Size: 1,152 photovoltaic (PV) water pumping projects; 

55 demonstration wind-water pumping systems

Funding: Total: US$31,000,000

Private: US$7,750,000

Public: US$23,250,000 

Objective: To increase the capacity of small ranchers and

farmers to operate in an environmentally

friendly manner.

Duration: 2000–2004

Scale: Rural
principally for livestock watering on ranches. FIRCO and the

Secretariat of Agriculture are now implementing a nationwide

program with a World Bank loan and a GEF grant to facilitate

the use of renewable energy technologies to power waterpumping and other agriculture systems. 

Benefits for ranchers and farmers and their families range

from improved nutrition to more sustainable irrigation.

Over the long term, renewable energy systems are typically less expensive than conventional systems. They result in

fewer pollutants than the diesel and gas-powered pumps they

replace, and they reduce emissions of greenhouse gases.

Operations and maintenance requirements of renewable systems consume less time, thus allowing ranchers and farmers

to engage in more productive activities. This shift can lead to

the development of new industries in various sectors, serving

numerous end uses. 

Technical Data

Solar PV and wind electric systems for water pumping

for small irrigation and livestock include appropriately sized,

renewable energy technologies and systems that utilize

groundwater in a sustainable fashion. 

Performance Data

More than 450 engineers and technicians have been

trained in project implementation, including private- and

public-sector implementers.

The program has produced more than 28,000 direct and

indirect beneficiaries, including ranchers and farmers, other

community members, and system suppliers.

Participants and Roles

USAID and the USDOE provided funding during the

pilot phase through premarket investment in demonstrating

the feasibility of the technologies. Sandia National

Laboratories has managed the program, and the USDOE’s

National Renewable Energy Laboratory (NREL) has helped

implement the program.

Other partners include FIRCO, Secretariat of Agriculture,

Mexico, World Bank, GEF, Winrock International, New

Mexico State University, Enersol Associates, and Ecoturismo y

Nuevas Tecnologias.

Partner Contacts

Michael Ross

US Department of Energy

Sandia National Laboratories

PO Box 5800

Albuquerque, NM 87185-0753 USA

Phone: 505-844-3301

Fax: 505-844-6541

E-mail: mpross@sandia.gov

Ing. Jose Manuel Arango

Fideicomiso de Riesgo Compartido

Mexico City, Mexico

E-mail: inycagte@sagar.gob.mx

Chris Rovero

Winrock International

1621 N. Kent St.

Arlington, VA 22209 USA

Phone: 703-525-9430, Ext. 648

Fax: 703-243-1175

E-mail: crovero@winrock.org

Energy and Water for Sustainable Living 15
RUSSIA

16 Energy and Water for Sustainable Living

Krasnogorsk Water-Efficiency Program

Summary

The municipal water utility in Krasnogorsk, a municipal

utility turned joint-stock company, implemented several innovative water efficiency measures – all completely funded by

the “vodokanal” itself. Automating remote control systems

and introducing variable speed drives (VSDs) reduced electricity consumption per unit of pumped water by an average

of 17%. Despite a 20% increase in pumped water in 2000

compared with 1997, electricity use remained the same, and

actual costs of municipal water supply dropped by 3.4%.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

A basic principle for enabling effective, sustainable, and

integrated water management was the effective coordination

among sectors, between public and private actors, and across

multiple geographic and institutional scales.

An important guideline that helped create an enabling

environment and mobilize financial resources was the consideration of water as an economic, social, and environmental

good, including acknowledgement of the full costs of water

management and water services, and transparent, equitable,

and sufficient allocation of those costs throughout society.

Financing

The Krasnogorsk Vodokanal was, as were all water utilities in Russia, a municipal enterprise. Subsequently it became

a rented company, and ultimately, a joint-stock company.

With this change of status, a new generation of leaders

emerged, who focused on finding ways to analyze and reduce

production costs.

All funding (US$158,000) for the improvements came

from the joint-stock utility.

The Project

Water supply and distribution in the vodokanal includes

13 pumping plants supplying water from water wells to the

municipal network. Water pumping stations differ in capacity

and vertical rise (head), so each station had a different impact

on the network. In the past, there was little if any monitoring

information or data for individual stations, making optimal

functioning of the entire system difficult to ensure.

Reliability decreased from year to year, and maintenance

costs grew. In 1996, vodokanal management decided to

replace this remote control system with a more up-to-date

one. The new system allows for permanent control over all

pumping plants by monitoring water pressure, water consumption, and water store in the city. At any minute, the dispatcher has complete control over all pumping plants and can

change their operating parameters by switching on/off relevant equipment.

Technical Data

The obsolete remote control system was replaced with a

modern one that uses computerized tools, controllers, and

software that allow for retrospective information control.

Information for up to 400 days in the form of curves, charts,

etc., allows for equipment operation analysis and projections

for various scenarios.

On the basis of water level in storage tanks, the updated

system regulates the work of pumps. Frequency converters or

VSDs have been incorporated in the rotary pumps control layout. By changing parameters of frequency converters, daytime

Location: Krasnogorsk, in the Moscow Region

Type: Water utility reform and water efficiency

Size: 13 pumping plants 

Funding: Total: US$158,000

(All from the joint stock water utility)

Objective: To reduce water utility energy consumption.

Duration: 1997–2000

Scale: Urban
and nighttime pressure in the network is ensured — so the

system can adjust for changes in demand, thus saving energy

when demand is lower.

Performance Data

The remote control automation system, by stabilizing

water pressure and removing water hammers, has reduced 

the number of emergencies in water pipe operations. Water

pipe breaks were 33% lower in 1999 to 2000 as compared

with 1998 because of the installation of frequency converters.

The system also reduces electricity consumption by lowering

nighttime pressure from 5.5 to 3.6 atm. Installation of 

frequency converters also reduced electricity consumption 

by 30%. 

Participants and Roles

The project improvements were conceived of and

financed by the joint-stock utility. Outside contractors provided technical guidance, equipment, and software.

Partner Contacts

Igor Bashmakov 

Center for Energy Efficiency (CENEf)

54, korpus 4, Novocheremushkinskaya St.

117418 Moscow, Russia

Phone: 7-095-120-5147

Fax: 7-095-883-9563

E-mail: bashmako@online.ru

Alexander Gloukhov

Gaidara St. 143/21

236029 Kaliningrad, Russia

Phone: 7-0112-324-123

Fax: 7-0112-216-338

E-mail: alliance@alliance.koenig.ru

Energy and Water for Sustainable Living 17

Specific electricity consumption for 

water extraction, 1997-2000
Summary

This program successfully demonstrated the role that

renewable energy technologies can play in managing protected

areas and developing buffer zone communities throughout

southern Mexico. As a result, international and local nongovernmental organization (NGO) partners are now including

energy considerations in their planning activities, and they

have the capability to decide when clean energy technologies

can help to meet these needs. The approach has stimulated

improvements in field research capabilities, improved quality

of life for reserve rangers and guards, and enhanced environmentally friendly economic development throughout Mexico.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

Capacity-building activities that helped enable the success of the partnerships included awareness and educational

workshops for decision makers, skills-oriented training for

decision makers and staff, study tours, stakeholder partnerships and exchanges, dissemination of best practices, and participation in international forums and workshops. 

Programs in professional training, public education and

communication, and outreach have helped increase public

knowledge of, and participation in, energy decision making. 

The definition and creation of competitive and captive

markets also helped to improve institutions.

The Mexican Environment Secretariat has maintained a

strong mandate to manage activities related to the protection

of the environment. The success of this project comes largely

from the strength of this government office and the high value

that it places on partnerships with NGOs and the private sector.

Financing

Total capital costs were approximately US$600,000. 

In-kind contributions from conservation organizations are

estimated at roughly US$300,000. These nongovernmental

contributions, which were used to conduct the procurements,

manage the installations, and assure their viability, were essential to the success of the project.

The Project

Protected areas are national parks, biosphere reserves, and

other designated conservation areas where a governing body

has officially declared protection of nature to be a priority. 

Effective and efficient management of these areas include

the sustainable use of available energy resources. Since 1994,

international conservation organizations, together with their

respective local NGOs, have integrated energy planning into

remote conservation and sustainable development activities. 

Since 1997, program partners have installed 74 systems,

totaling more than 25 kW, which provide critical electricity

services for operations, infrastructure, and community development activities in protected areas. Renewable energy projects include PV electrification, PV communication, PV water

pumping, and wind electrification. 

For example, a PV-powered radio network enables more

than 200 coffee producers to mobilize coffee more efficiently.

The resulting higher incomes not only benefit these producers

and their families, but also draw other producers to more sustainable cultivation practices.

MEXICO

18 Energy and Water for Sustainable Living

Renewable Energy for Protected Areas in Mexico

Location: Southern Mexico (Chiapas, Oaxaca, Quintana Roo)

Type: Distributed photovoltaic (PV) and wind applications

Size: 75 independent stand-alone systems, ranging from 

50 to 11.2 kW

Funding: Total: US$900,000

Private (in-kind): US$300,000

Public sources: US$600,000 

Objective: To use renewable energy technology in remote,

protected areas.

Duration: 1994–2000

Scale: Rural
Such projects have generated substantial private- and

public-sector replication. For instance, in Chiapas, where a

PV system was installed in a reserve, surrounding community

residents elected to invest their municipal funds in PV electrification of several hundred rural homes.

Technical Data

PV and wind electrification systems range from 50 to

11,200 W. They power water-pumping and purification

activities, communications, scientific and audiovisual equipment, refrigerators, fans, computers, and basic lighting. Most

systems are less than 300 W. Three examples follow:

• Three 300-W wind turbines provide lighting and power,

and an independent PV system provides water pumping

for a ranger station and visitor center on Isla Contoy, an

island designated as a bird sanctuary off the shores of

Cancun.

• A 1.9-kW PV system pumps stream water over a 

kilometer to provide 38 families with potable water.

• Four PV systems totaling 1.9 kW provide electricity for a

central lodge/research station and three remote cabins in

the El Eden Ecological Reserve, where biologists demonstrate the profitability of conservation.

Performance Data

Implementation of the PV and wind systems has given

more than 4,000 people dispersed across remote communities

access to clean and quiet electricity.

Although the true test of sustainability is time, the high

performance of the systems and favorable operator response

indicate that the services will continue to satisfy local needs

well into the future. 

Continual feedback, routine inspections, and word-ofmouth transfer of basic concepts on the installation and maintenance of solar systems and the benefits of renewable energy

enhance the likelihood of long-term satisfaction. 

Participants and Roles

The partner NGOs, which implemented the systems, are

The Nature Conservancy, Conservation International, World

Wildlife Fund, Linea Biosfera, Amigos de Sian Ka’an, El Eden 

Private Reserve, Campesinos Ecológicos de la Sierra Madre de

Chiapas (CESMACH) coffee growers cooperative, Instituto de

Historia Natural, and Pronatura Peninsula Yucatán. US and

Mexican Implementing Partners were Sandia National

Laboratories, New Mexico State University, Winrock

International, Enersol Associates, and Ecoturismo y Nuevas

Tecnologias. Project sponsors included the United States

Agency for International Development (USAID) and the

United States Department of Energy (USDOE), and the

Mexican Secretariat of Environment, Natural Resources, and

Fisheries (implementing partner).

Partner Contacts

Michael Ross

US Department of Energy

Sandia National Laboratories

PO Box 5800

Albuquerque, NM 87187-0753 USA

Phone: 505-844-3301

Fax: 505-844-6541

E-mail: mpross@sandia.gov

Lisa Büttner

Winrock International

1621 N. Kent St., 12th Floor

Arlington, VA 22209 USA

Phone: 703-525-9430, ext. 663

Fax: 703-243-1175

E-mail: lbuttner@winrock.org

Energy and Water for Sustainable Living 19
Summary

Vacvina, Vietnam’s national horticultural training association, has successfully installed roughly 3,000 household biogas

systems in rural, agricultural areas of Vietnam. The systems

provide an inexpensive source of cooking fuel, displace the

need to collect and use fuel wood, remove wastes that often

flow into local streams, and improve living conditions

through improved sanitation and cleaner air.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

The most important in-country principle that attracted

the private financing was the ability to hire and develop a staff

with appropriate skills matched to the job. This activity was

necessary to bring the project in line with commercial standards, which, in turn, enabled energy product and service

transactions to be economically sustainable. 

Financing

Total project financing was US$89,500, all of which 

was provided by E+Co. (E+Co. is a United States [US] 

corporation that provides business development services and

financing to establish enterprises that provide sustainable

energy.) The US$89,500 is catalytic seed capital that allows

entrepreneurs to move from initial stage ideas to investment,

implementation, and growth. With this support, Vacvina has

moved from an organization that had no commercial basis to

one that shows a positive cash flow on a month-to-month

basis.

The Project

Vacvina provided planning and financial assistance to

commercialize the sale and distribution of household biogas

systems. These systems use the waste from the one to two

pigs typically owned by a farmer to produce sufficient

methane to meet daily cooking requirements. As such, they

displace the need for collecting and using fuel wood, remove

the waste stream that often flows into local streams, and can

provide a supplementary water source for fish farming.

Eighty percent of Vietnam’s population lives in rural areas

and practices agriculture. Family plots are extremely small,

and farming techniques must be adapted to provide sufficient

food for household needs. The most important animal husbandry activity is pig farming. The development of environmentally friendly, renewable energy sources is important for

maintaining agricultural production while meeting energy

requirements. 

The use of the biodigesters eliminates the flow of animal

waste into surface water and provides a decontaminated water

supply suitable for fish farming and small-scale irrigation. It

also improves sanitation and the drinking water supply, the

latter of which is enhanced by the ready availability of a fuel

source to ensure that water is boiled prior to consumption.

To date, roughly 3,000 household biogas systems have

been installed.

The widespread use of biogas plants brings financial,

environmental, and health-related benefits to the farmers, the

environment, and the community.

The methane produced displaces the use of firewood

(estimated at 2,500 kg per family per year, for which families

spend between $5 and $10 per month) and provides a supply

of boiled water for drinking. Women reap most of the benefits

of household biogas plants, as these plants give them additional

VIETNAM

20 Energy and Water for Sustainable Living

Sale and Distribution of Household Biogas Systems

Location: Rural areas in Vietnam

Type: Household biogas systems

Size: 3,000 systems

Funding: Total: US$89,590

Private: US$89,590 

Objective: To commercialize the sale of household 

biodigesters to improve water quality and 

meet energy needs.

Duration: 2001

Scale: Rural
time for productive activities. The plants also improve sanitation and promote cleaner air.

Technical Data

The initial biodigesters used a simple, tubular plastic

holding tank and readily available fittings to use household

cattle, pig, or poultry waste to produce sufficient methane to

meet the daily cooking requirements of the family. 

These systems initially had low profit margins, but continuing development produced a more efficient, sustainable,

and profitable biodigester structure.

Vacvina’s new hybrid-technology biodigester with automatic scum control (HTASC) represents a significant improvement over the currently used biogas plants. The design uses a

small reinforced concrete unit that is more compact and can

be placed below the area used by the piggery to reduce the

land area needed by the more basic plastic unit. 

Performance Data

Vacvina has sold and successfully installed nearly 

3,000 units, representing the equivalent of US$418,000.

Forty-four technicians have been trained in 11 provinces.

Living conditions have improved through increased sanitation and clean air.

Vacvina has maintained the position it has built in the

biogas market, improved the quality of its products, and

offered a more permanent system that is simple in design but

still modestly priced. The biogas activities that Vacvina has

promoted to date have caught the attention of a number of

bilateral agencies.

Participants and Roles

Vacvina, with development and financial assistance from 

E+Co., has moved from an organization that had no commercial basis to one that shows a positive cash flow on a monthto-month basis.

Partner Contacts

Pham Van Thanh

VAC Co Ltd

Thanh cong Str - Ba Dinh Dst Hanoi, Vietnam

Phone: 844-835-0489

Fax: 844-835-0489

E-mail: tvc-vacvina@netnam.org.vn

E+Co

383 Franklin Street

Bloomfield, NJ 07003 USA

Phone: 973-680-9100

Fax: 973-680-8066

E-mail: eco@energyhouse.com

Energy and Water for Sustainable Living 21
Summary

Six sugar mills installed with high-efficiency cogeneration

units and using biomass/bagasse fuels generate 500 million

kWh annually and offset 550,000 tons of carbon dioxide

(CO2) emissions. The bagasse-based cogeneration potential in

India is estimated at 5,000 MW, with only 300 MW commissioned so far. The proven success of bagasse cogeneration

will help ensure sustainability and help India achieve the

5,000 MW potential. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

Activities that support capacity-building and informed

decision-making principles, which in turn can help attract

private financing have included study tours, demonstration

activities, seminars, and participation in international forums

and workshops, which help increase awareness of commercial

business practices, competitive energy market operation, and

managing private sector involvement. 

A central element of energy-sector reform efforts is

increased public knowledge of and participation in energy

decision making, which have been enhanced by professional

training and outreach programs.

Government policies that supported private investment

in sugar mill cogeneration for exporting electricity to the grid

(for additional revenues) also contributed to private-sector

participation.

Financing

Total cost is US$128,000,000. Private-sector sugar 

mills invested US$120,000,000. The United States Agency

for International Development (USAID) contributed

US$8,000,000 in grants and technical assistance.

The Project

The project is designed to reduce the emissions of GHG

by encouraging increased and efficient use of biomass fuels at

sugar-mill cogeneration facilities. (Cogeneration is the joint

production of process steam, and bagasse is a waste product

of sugar-cane processing.)

Under the project, nine sugar mills will set up high-efficiency cogeneration units using biomass and bagasse fuels.

Six of these plants have already installed cogeneration units

and are generating about 500 million kWh of electricity annually. Cogeneration units at the three remaining sugar mills are

being commissioned in 2002. 

Net CO2 emissions from bagasse/biomass usage for energy

are considered zero, because these fuels absorb CO2 during

their growth, and the corresponding CO2 generation by fossil

fuels is eliminated. Thus, the use of biomass/bagasse fuels in

the six plants eliminates approximately 550,000 tons of CO2

emissions per year. 

The utility sector is the primary beneficiary of the project,

but all sectors benefit from the increased provision of electricity using nonpolluting energy sources.

The project is also extending the merits of bagasse cogeneration to other biomass fuels year round, as many cogeneration developers use coal or lignite in the off season.

INDIA

22 Energy and Water for Sustainable Living

Alternative Bagasse Cogeneration (Greenhouse 

Gas Pollution Prevention [GEP] Project)

Location: Countrywide

Type: Bagasse cogeneration

Size: 9 cogeneration units expected to total about 

200 MW capacity

Funding: Total: US$128,000,000

Private: US$120,000,000

Public: US$8,000,000 

Objective: To reduce the emissions of greenhouse gases

(GHGs) per unit of electricity generated by

encouraging increased and efficient use of biomass fuels at sugar mill cogeneration facilities.

Duration: 1995–2003

Scale: Rural and urban
Implementing high-efficiency cogeneration at sugar mills

and supplying the excess electricity to the grid is akin to distributed generation, and therefore minimizes transmission

and distribution losses because of the local end use.

Technical Data

The sugar mills are switching to high-pressure/high-temperature-based cogeneration units and multifuel boilers with

electrostatic precipitators.

Performance Data

The six sugar mills with completed installations are 

generating about 500 million kWh electricity annually and

reducing CO2 emissions by about 550,000 tons per year.

Participants and Roles

The Industrial Development Bank of India implements

the project’s investment-related activities, and the sugar mills

provide the vast majority of funding. The US Department of

Energy (USDOE) National Energy Technology Laboratory

(NETL) provides technical assistance and training to Indian

counterparts through Science Applications International

Corporation (SAIC) and Winrock International India. 

Partner Contacts

Richard Edwards

US Agency for International Development

American Embassy

Chanakyapuri, New Delhi

110 021 India

Dr. Shyamala Abeyratne

Winrock International India

7 Poorvi Marg, Vasant Vihar

New Delhi 110057 India

Doug Jewell

US Department of Energy

National Energy Technology Laboratory

3610 Collins Ferry Road

Morgantown, WV 26507 USA

Phone: 304-289-4720

E-mail: djewel@netl.doe.gov

Dr. Sai Gollakota

Science Applications International Corporation

626 Cochrans Mill Road

Pittsburgh, PA 15236 USA

Phone: 412-386-5717

Fax: 412-386-4604

E-mail: saigollakota@sa.netl.doe.gov

Energy and Water for Sustainable Living 23
Summary

Worldwide residential energy consumption can be

reduced cost-effectively by over 5% through energy-efficiency

standards and labels. By 2010, CLASP will have assembled a

global network of experts and provided in-depth and tailored

technical assistance and training in the development of energyefficiency standards and labels to more than 15 priority countries, while simultaneously supporting as many as 50 others

through information dissemination.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

• Public participation in, and support of, sustainable 

development 

Capacity-building and informed decision-making principles help government officials, lawyers and judges, manufacturers, product distributors, retailers, consumer groups, and

the public become more capable bureaucrats, businessmen,

and citizens, thereby attracting private-sector financing.

Activities that have enabled the realization of these principles

for CLASP include formation of a management team independent of the government, hiring staff with skills matched to

the job, providing training for decision makers and staff

through study tours, stakeholder partnerships and exchanges,

participation in international forums and workshops, and 

dissemination of best business practices.

Institution-building principles and activities that have

helped attract private financing included comprehensive energy

laws that accord with global norms and standards.

Financing

Total project investment from all sources is

US$4,760,000. Private sources have contributed more than

half of the total investment and include the Energy Foundation

(US$330,000), the International Copper Association

(US$700,000), and the United Nations Foundation (UNF)

(US$1,610,000).

Public funding has come from the United States Agency

for International Development (USAID) (US$1,150,000), the

US Department of Energy (USDOE) (US$260,000), the 

US Environmental Protection Agency (USEPA), and others. 

The Project

CLASP originated from the realization that energy-efficiency standards for appliances, equipment, and lighting

products, which potentially affect the manufacture and sale of

GLOBAL

24 Energy and Water for Sustainable Living

Collaborative Labeling and Appliance Standards

Program (CLASP)

Location: Multiple countries with an emphasis on China,

Mexico, India, Brazil, Ghana, and Poland

Type: Energy-efficiency standards and label development

Size: Nationwide impacts for several countries

Funding: Total: US$4,760,000

Private: US$2,640,000

Public: US$2,120,000 

Objective: To lower energy costs and pollutant emissions

through energy-efficiency standards for appliances, equipment, and lighting products.

Duration: 1996–present

Scale: Urban and rural
all energy-consuming products, may be the most cost-effective

energy saving policy a government can adopt.

Every country has opportunities for more energy-efficient

appliances, equipment, and lighting products, the use of

which can lower energy costs, lower demand on constrained

electric utility systems, and reduce greenhouse gas (GHG) and

local pollutant emissions.

All sectors benefit through improved lighting, refrigeration, and cooking systems, and more stringent requirements

placed on manufacturers through energy-efficiency standards

and labels can stimulate a healthier and more competitive

appliance industry.

By 2010, CLASP will have provided in-depth and tailored technical assistance and training in the development of

energy-efficiency standards and labels to over 15 priority

countries and will have simultaneously supported roughly 

50 others through information dissemination via the Internet

and other training forums.

Technical Data

The CLASP Web site (www.CLASPonline.org) contains

information on standards and labeling programs worldwide

and has received nearly 500,000 hits from more than 

100 countries.

Technical assistance for developing standards for room

air conditioners, clothes washing machines, fluorescent lamp

ballasts, lamps, and motors is being provided to governmental

institutions.

Performance Data

More than 20 developing countries have introduced

energy-efficiency standards or labels for a total of 43 energyconsuming products.

To date, 20 Chinese and 6 Mexicans spent 100 personweeks at Lawrence Berkeley National Laboratory learning

about energy efficiency, testing, standard setting, and labeling.

Over the next 10 years, dozens of countries are expected

to initiate energy-efficiency standard-setting and labeling programs. Performance targets include a 1 to 2% reduction in

the ratio of energy consumption to gross domestic product, a

5% reduction in national residential energy consumption, and

a 5% reduction in urban pollutants and GHG emissions.

Benefits from a standards and labeling program can start

to accrue in as little as 3 years, but 6 to 10 years are generally

needed to build institutional capability, conduct rulemakings

for each product, and modify production lines to produce the

products that will meet the new standards. Benefits will continue to accrue over the following 10 to 30 years, depending

on the particular product as the existing stock wears out and

is replaced.

Participants and Roles

In 1999, the International Institute for Energy

Conservation, Lawrence Berkeley National Laboratory, and 

the Alliance to Save Energy formed CLASP to establish

regional standards. The USAID, the USDOE, the UNF, the

Energy Foundation, and the International Copper Association

are major partners and sponsors. In addition, numerous 

US agencies, other funding organizations, project consultants,

volunteers, host-country government agencies, manufacturers,

and nongovernmental organizations are participating.

Partner Contact

Christine Egan

Collaborative Labeling and Appliance Standards Program

1200 18th St., Suite 900

Washington, DC 20036 USA

Phone: 202-530-2241

Fax: 202-331-9588

E-mail: cegan@clasponline.org

Energy and Water for Sustainable Living 25
Summary

Water service to the urban poor was greatly expanded

through implementing the principle that the most efficient

way to increase service delivery and coverage is through more

commercially oriented and professional water enterprise management. The WET project made financial, management, and

technical recommendations that helped more than 50 water

enterprises reduce costs, increase revenues, and install 

20,000 new water connections to the urban poor.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

A key principle that helped attract private investment in

more efficient water delivery systems was the consideration 

of water as an economic, social, and environmental good,

including acknowledgment of the full costs of water management and water services, and transparent, equitable, and sufficient allocation of those costs throughout society.

Also important were an emphasis on decision making

and assignment of authority at the lowest appropriate level,

broad stakeholder participation and empowerment in water

resources decision making, and stable systems of access to

and allocation of water.

Indonesia’s reformation and decentralization initiatives

have created a supportive atmosphere for professional, commercially viable, consumer-oriented piped water service.

Local governments are now fully accountable to their constituents for their water enterprises, thus creating an incentive

to provide affordable and convenient service.

Financing

Total project investment was US$400,000. The United

States-Asia Environmental Project (US-AEP) provided the bulk

of the funding, and the Water Environment Foundation (WEF)

contributed about US$8,000 for general project support.

The Project

Less than 40% of Indonesia’s urban population is served

by piped water. Over the past 20 years, the Government 

of Indonesia has spent the equivalent of more than

US$2,000,000,000 on water-related projects. However, these

efforts have not significantly improved service or increased

coverage.

The primary goal of the WET project was to work directly

with local water enterprises to identify areas for reducing

costs and improving revenues and to improve the efficiency

and effectiveness of water delivery services, especially during

the 1989-1999 Asian monetary crisis.

Most of the water system enterprises assessed by WET

suffered from high debt, idle excess production capacity, and a

waiting list of potential consumers. Income for the water

enterprises was low, because tariffs covered only about 70% of

the average water enterprise’s total costs.

Indonesia’s 300 municipal water enterprises were so

squeezed by soaring costs that some put untreated water

through the mains, threatening large-scale epidemics, and

others planned complete shutdowns. By implementing WET

financial, management, and technical recommendations to

address these problems, more than 50 water system enterprises were able to reduce their costs, improve their services, and

increase their revenues.

Previous well-intended but misdirected policies required

cash-strapped water enterprises to sell water to the poor at a

loss, thus draining funds that would have been used to

INDONESIA

26 Energy and Water for Sustainable Living

Water Efficiency Team (WET)

Location: Countrywide

Type: Water system efficiency

Size: 55 water enterprises

Funding: Total: US$400,000

Private: US$8,000

Public: US$392,000 

Objective: To improve water system service.

Duration: 1998–1999

Scale: Urban
expand and maintain the distribution system. As a result, 

the urban poor purchased from vendors who charged up to

12 times the price they would have paid for piped water,

were it available. The new connections gave thousands of

poor people access to clean water.

Technical Data

The project made recommendations addressing financial,

management, and technical aspects of water delivery; it did

not recommend, use, or install specific technologies.

Performance Data

Because of the WET recommendations, 55 individual

water enterprises were trained in ways to improve service

delivery. Approximately 20,000 new connections servicing

250,000 people were installed. At least 150,000 person-days

of employment were generated. 

WET helped small water enterprises create recovery

plans and explained those plans to skeptical local governments. The local governments approved long-overdue tariff

increases that were tied to improvements in service. WET

assistance led to tariff increases valued at 12 times the startup investment. 

New connections were extended to customers on the

backlog list, thus expanding service, increasing revenue, and

moving water enterprises back to financial health. 

WET’s emphasis on transparency and self-help rather

than capital infusion has helped move the Government of

Indonesia’s priorities for the development of the water sector

toward full commercialization. WET has demonstrated that

even small water enterprises can become financially self-sufficient with the institution of proper systems and procedures. 

Participants and Roles

US-AEP partnered with the Government of Indonesia,

the Asian Development Bank, and the World Bank to help

fund the outreach effort. The WEF provided support with

budgeting, travel, and selection and orientation of technical

assistance teams.

Partner Contacts

Jeremy Hagger, Associate Director

US-Asia Environmental Partnership

Asia/Near East Bureau, USAID

1300 Pennsylvania Ave., NW

Washington, DC 20523-4101 USA

Phone: 202-712-4923

Fax: 202-216-3379

E-mail: jehagger@usaid.gov

Jim Woodcock

Urban Environmental Infrastructure Representative

US Agency for International Development

American Embassy

Jalan Madan Merdeka Selatan 3-5

Jakarta, Pusat, Indonesia

Phone: 62-21-3435-9480

Fax: 62-21-3483-4518

E-mail: jwoodcock@usaid.gov

Energy and Water for Sustainable Living 27
Summary

The purpose of the SATWQM project is to assess river

water quality and identify potential problems that can lead to

serious adverse health effects. By focusing on the less sensitive

subject of water quality (as compared to quantity) and using

non-governmental partners, the SATWQM project is progressing despite continuing, strained relations between India and

Pakistan. The SATWQM network is poised to expand its membership, increase the number of sampling sites and parameters,

and begin the transition from a United States (US)-hosted 

initiative to one managed by a regional organization.

In-Country Principles That Attracted NonDonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

Principles that have helped attract private-sector support

for SATWQM include integrated, intersectoral, and multiobjective decision making about water resources at the watershed or basin scale; informed and science-based decision

making; broad stakeholder participation and empowerment in

water resources decision making; and strong, objective and

culturally appropriate institutional, policy, and legal frameworks.

Other principles that have attracted private-sector interest include effective coordination among sectors and across

multiple geographic and institutional scales; consideration of

water as an economic, social, and environmental commodity,

including acknowledgement of the full costs of water management and water services; an emphasis on decision making and

assignment of authority at the lowest appropriate level; the

commitment to create and strengthen human and organizational capacity for sustainable water management; systems of

accountability and transparency; and a progressive policy and

legal environment. 

Financing

Total approximate annual funding for this ongoing project is US$350,000. The estimated dollar value of in-kind

services provided by regional partners is US$50,000. On

average, the United States Department of Energy (USDOE)

provides US$200,000, and the US Department of State contributes US$100,000 annually.

The Project

The project has created a network of South Asian organizations that monitors water quality in transboundary tributaries of the Ganges and Indus River basins and shares the data

over the Internet.

Issues of concern to SATWQM include impacts of

untreated sewage, industrial effluents, and agricultural runoff;

river siltation and channel shifting; salinity increases in fresh

waters; and the environmental degradation of critical habitats. 

The principal idea underlying the project is that cooperation to ensure a sustainable environment can improve relations among countries. The network includes research institutions, universities, and nongovernmental organizations that

collect water quality data in the border regions of PakistanIndia (on the Ravi River), Nepal-India (on the Bagmati and

Narayani Rivers), and Bangladesh-India (on the Ganges River).

BANGLADESH, INDIA, NEPAL, PAKISTAN

28 Energy and Water for Sustainable Living

South Asia Transboundary Water Quality

Monitoring (SATWQM) Project

Location: South Asia

Type: Water quality monitoring

Size: 6 partner organizations; 40 supporting organizations

Funding: Total: US$350,000 (annually)

Private (in-kind): US$50,000

Public: US$300,000 

Objective: To sample, monitor, and create a shared database

on transboundary river water quality.

Duration: 1999–present

Scale: Rural and urban
Comprehensive water quality monitoring across national

boundaries enhances assessment of water resources across an

entire watershed and helps identify potential problems.

Environmental cooperation among countries also has

several indirect security-related benefits. It increases dialogue

between policy makers and scientists that can be maintained

even when talks on other more sensitive subjects are suspended.

It also creates an information-sharing infrastructure that can

be expanded to include sensitive security and arms control

subjects.

Technical Data

Technologies include the Hydrolab minisonde with electronic sensors to measure water quality, Jal-Tara field-testing

kits for chemical analyses of water samples, global positioning

system units, Secchi disks to measure turbidity, and digital

cameras.

Temperature, pH, conductivity, salinity, and dissolved

oxygen are monitored using the Hydrolab minisonde, and 

14 other physiochemical water quality parameters are monitored using the Jal-Tara semiquantitative field-testing kits.

Performance Data

The network of participating organizations has doubled

in 2 years and now totals 40. The sophistication of the sampling equipment has improved, and the number of parameters monitored and the amount of data shared has increased

significantly. Approximately 40 people have been trained in

water quality monitoring to date. 

Participants and Roles

The six transboundary data collection partner organizations (in alphabetical order) are Bangladesh Unnayan

Parishad, Dhaka, Bangladesh; Center for Environment and

Development, Kolkata, India; Department of Biology, Guru

Nanak Dev University, Amritsar, India; Environment and

Public Health Organization, Kathmandu, Nepal; Environmental

Biology Laboratory, Patna University, Patna, India; and the

World Wide Fund for Nature, Lahore, Pakistan. Data collection partners provide in-kind services needed to collect the

SATWQM project data and share data using the project Web

site. Other supporting partners share relevant archival data

from other water quality monitoring projects on transboundary rivers using the SATWQM project Web site, disseminate

project data and information, and provide insight and guidance to ensure project success and sustainability.

The Cooperative Monitoring Center at USDOE Sandia

National Laboratories acts as the catalyst for the SATWQM

project through the sponsorship and guidance of the 

US Department of State’s Regional Environmental Affairs

Office, Kathmandu, and the USDOE. It also supplies equipment to SATWQM partners and creates mechanisms to access

and use the data via the project Web site.

Partner Contact

J. David Betsill, PhD, PG

US Department of Energy

Sandia National Laboratories

PO Box 5800 MS-1371

Albuquerque, NM 87185 USA

Phone: 505-844-9578

Fax: 505-284-5055

E-mail: Jdbetsi@sandia.gov

Energy and Water for Sustainable Living 29
Summary

This project, a part of the United States (US)/China

Bilateral Protocol on Energy Efficiency and Renewable Energy,

resulted in the completion of three major residential GHP

demonstration projects. These projects, which were facilitated

with training, information, study tours, and prefeasibility

studies, were ultimately financed on a purely commercial

basis, with a total investment of US$5,300,000 by privatesector Chinese companies.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

Key to attracting private-sector financing was the ability

for the energy sector to operate under standard commercial

practices. Related to this were the increased awareness,

knowledge, and skills of sector professionals in commercial

business practices, which resulted from study tours, stakeholder partnerships, exchanges, and participation in international forums and workshops.

Another important principle that helped attract privatesector interest was increased public knowledge of, and participation in, energy decision making. Programs in professional

training, public education and communication, and outreach

helped increase public access. A particularly important activity

in this area was developing and implementing monitoring and

evaluation strategies and tools for measuring the impact of

education, communication, and outreach programs. 

Financing

Total capital costs for equipment purchases were approximately US$5,300,000. All of these funds came from privatesector Chinese developers. 

Prior to the capital investment, the US Department of

Energy (USDOE) provided training, linkages to US industry,

information exchanges, and prefeasibility funds, totaling

about US$160,000 over several years.

The Project

As China moves toward sustainable economic and energy

development, a key challenge is how to reduce its reliance on

coal combustion, with its associated adverse environmental

impacts. China has rich geothermal resources and a long history of geothermal resource use for direct applications. More

than 1,600 sites in China use geothermal energy, and these sites

have produced energy equivalent to 5,000,000 tons of coal.

GHP technology, which uses soil or water temperature as

a heat exchanger to heat and cool buildings, is a costeffective, energy-efficient, and environmentally friendly

way to cool and heat buildings in China. 

China and the USDOE have identified eight pilot

GHP projects. Three have been demonstrated successfully. They include separate apartment projects in

Beijing, Ningbo, and Guangzhou. These projects are to

be replicated on a larger scale, with the goal of commercialization. 

The GHP technology saves end users energy and

money. Reduced power demand reduces utilities’ needs

to build more plants, and offsetting the electricity consumption for cooling in buildings reduces peak power

loads for utilities.

CHINA

30 Energy and Water for Sustainable Living

Geothermal Heat Pump Demonstration Project

Location: Beijing, Ningbo, and Guangzhou

Type: Geothermal heat pump (GHP)

Size: 5,825 tons cooling/heating capacity

Funding: Total: US$5,460,000

Private: US$5,300,000

Public: US$160,000 

Objective: To provide cost-effective heating and cooling

using renewable energy.

Duration: 1987–2001

Scale: Urban
Technical Data

GHP technology uses the earth’s relatively constant soil

temperature to provide efficient year-round heating and cooling, by exchanging heat with the earth through a system of

buried plastic pipes, or ground heat exchangers.

The three demonstration projects provide a combined

heating and cooling capacity of 5,525 tons.

Performance Data

Performance monitoring is underway, and preliminary

results indicate that the GHPs are resulting in reduced operating and maintenance costs. Monitoring and evaluation of the

project and dissemination of this information will help to 

further develop the market for GHP technology.

Participants and Roles

Chinese developers implemented the demonstration

projects, the USDOE provided training and outreach, and the

USDOE’s National Renewable Energy Laboratory (NREL) 

provided technical assistance.

Partner Contacts

Andre Van Rest

US Department of Energy

1000 Independence Ave., SW

Washington, DC 20585 USA

Phone: 202-586-9793

E-mail: andre.vanrest@ee.doe.gov

Li Xiuguo

China Academy of Sciences

Phone: 8610-6487-5548

Fax: 8610-6487-5548

E-mail: lixiuguo@263.net

Jean Ku

US Department of Energy

National Renewable Energy Laboratory

1617 Cole Blvd.

Golden, CO 80401 USA

Phone: 303-384-7554

Fax: 303-384-7419

E-mail: jean_ku@nrel.gov

Energy and Water for Sustainable Living 31
Summary

One thousand five hundred rural schools now have 

electricity provided by PV systems. The rural electrification

project stems from an aggressive utility privatization plan. It

represents the first actual implementation project in Latin

America where international funding, local government policies, the private sector, and community representatives have

joined in the common goal of applying renewable energy 

systems to a rural electrification sustainable business model.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making 

• Institution building and access to justice and 

enforcement of laws

• Public participation in, and support of, sustainable 

development

A key factor in attracting private-sector investment has

been allowing utilities to operate under standard commercial

practices, which include financial recordkeeping systems 

consistent with international accounting standards and a management team independent of the government. Participation

in international forums and workshops helped energy-sector

professionals increase their knowledge and skills in commercial business practices, cost-based pricing, international

accounting standards, competitive energy market operations,

independent energy regulation, and management of privatesector involvement.

Institution-building principles that attracted private

financing included the creation of competitive markets and 

a successful energy restructuring. Also important was a

comprehensive energy law consistent with global norms 

and standards characterized by basic policies and priorities;

separate policy making, ownership, and regulatory functions;

an independent regulator; and a framework for private investment and ultimate privatization. A legal and regulatory framework covering tariffs, social and security issues, and the 

privatization process was key. Technical assistance, in which

development partners worked with Argentine nationals to

allow corporate restructuring of energy enterprises to support

commercial operations, also helped attract private financing.

Also important were increased knowledge of, and participation in, energy decision making, facilitated through citizen

education and an institutionalized sustainable education,

communication, and outreach program.

Financing

Total costs were US$1,400,000. BP Solar (United States

[US]) was involved in the amount of US$700,000; the

Government of Argentina and the World Bank/Global

Environment Facility (GEF) each contributed US$350,000.

Empresa Jujeña de Sistemas Energéticos Dispersos

Sociedad Anónima (EJEDSA), the utility company for Jujuy, is

a private company. As part of its concession contract with the

government, it is required to provide electricity through

renewable energy sources for dispersed public and private

users. BP Solar was awarded the contract to provide 1,500 PV

systems. Special financial terms (LIBOR [London Interbank

Offered Rate] plus 1.5%) for a five-year US Export-Import

Bank (Eximbank) loan were arranged between the utility and

BP Solar for equipment purchase.

The debt/equity ratio for the project was 50:50. A key

factor for sustainability is that maintenance and operation of

the installed systems comes from monthly user fees. 

ARGENTINA

32 Energy and Water for Sustainable Living

Solar Systems for Schools in the Province of Jujuy

Location: Province of Jujuy

Type: Rural electrification

Size: 1,500 110-W photovoltaic (PV) systems

Funding: Total: US$1,400,000

Private: US$700,000

Public: US$700,000

Objective: To provide electricity to off-grid rural areas.

Duration: 2001–2002

Scale: Rural
The Project

One thousand five hundred schools that were never part

of the power grid now have access to reliable and economical

electricity through PV systems. 

An aggressive privatization and concession plan for the

utilities was the main engine for success. Utilities joining the

program are obligated to use PV systems to supply electricity

to the dispersed areas of the province, where there is no conventional grid. Community buildings (schools, health centers,

police stations) and home users in those rural areas apply to

the utility to install the PV systems where the conventional

grid is not available. A fee-for-service rate approved by the

federal government is applied for those users. The collected

fees are reinvested for maintenance and operation services as

a sustainable business model.

Residential sectors benefit through improved health,

lighting, and education. The utility sector benefits by extending its coverage and adding new customers beyond the

schools.

The project is 75% complete (three of four scheduled

deliveries have been made). The final delivery is on hold

pending resolution of recent social and economic problems 

in Argentina.

Technical Data

Each of the 1,500 PV systems includes a 110-Wp solar

panel, a solar controller, a 150 Ah/12-V battery, an 11W/12V

lamp, and a wiring kit. Local components are used where

possible.

Performance Data

With the addition of the 1,500 rural schools, the electrification index in the province increased by 10%. 

The market value of services achieved because of the

project is US$1,400,000. More than 50% of the total investment came from local suppliers of batteries, lamps, wiring

kits, and battery containers, and local installation services.

Energy demand has been reduced by 10%.

Participants and Roles

EJEDSA (the private utility company) provides electricity

from PV systems to rural schools off the power grid. BP Solar

(US) supplied the PV systems; the equipment purchase was

supported by a US Eximbank loan. The Secretaria de Energia

of the Federal Government of Argentina was responsible for

program and policy development with assistance and funding

from the World Bank/GEF. Allfirst Bank was the US intermediary bank.

The World Bank, Organization of American States,

Renewable Energies in the Americas (REIA), and US Solar

Energy Industry Association (SEIA) conducted regional seminars that helped attract project interest and financing.

Partner Contacts

Carlos Arias, General Manager EJEDSA

Independencia No. 60 

4.600 S.S. de Jujuy, Argentina

Phone: 54-388-4239-95-55

Fax: 54-388-4239-95-55

Luis Raygada, Director – Latin America

BP Solar

Lima, Peru

Phone: 511-463-2828

Fax: 511-461-5350

E-mail: raygadale@bp.com

Energy and Water for Sustainable Living 33
Summary

Women who had no alternative but to burn plastic bottles and other trash as a cooking fuel were trained to build

and construct more efficient stoves to save money and

improve health. The women have now gone into business

building these stoves and selling them to communities across

Kenya. Strong community participation and capacity building

have helped to ensure economic viability and continued

investment in the project by community members.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public access to, and support of, sustainable development and public participation, coordination, and 

partnerships

Capacity-building principles that helped attract private

funding included hiring and developing staff with appropriate

skills matched to the job, incorporation of popular input, and

study tours. Also important were skills-oriented training for

decision makers and staff and stakeholder partnerships and

exchanges.

Public understanding of the changes made to the energy

sector was facilitated through increased knowledge of, and

participation in, energy decision making. Activities that

helped increase public access and participation, which, in

turn, helped generate private-sector support, included defining appropriate applications of education, communication,

and outreach methods, and institutionalizing sustainable 

education and outreach programs. 

Financing

Total project investment was US$10,000. The capital

costs of the project were approximately US$4,000; operations

and maintenance costs were US$6,000. 

The Ngong Women’s Group, an informal communitybased organization of women, contributed US$2,000, and the

United States (US) Department of Agriculture contributed

US$8,000. 

Two aspects of this financing arrangement are noteworthy. The first is the relatively small amount of total financing

for a project that has already brought financial and health

improvements to over 800 families and that led to the development of a small business. The second is the size of the 

contributions relative to the resources of the funding organizations. Proportionally, the contribution by the Ngong

Women’s Group far exceeded the contribution of the 

government group.

The Project

Fuel cost savings and health benefits for poor women

and their families were achieved through reducing wood fuel

use and avoiding toxic cooking fuels. The women of Ngong,

an impoverished area outside of Nairobi, were increasingly

unable to afford the wood needed to fuel their stoves and

were using toxic materials such as plastic bottles and other

trash as fuel. 

To eliminate the harmful effects of using such cooking

fuel, the women constructed energy-efficient household-scale

ceramic cookstoves and insulated cookers that allowed them

to return to using wood as a fuel source.

The project is operational and has benefited the residential sector through increased health through improved cooking methods. Not only have the women enriched their families’ health, but also they have developed a business that

builds the stoves and sells them throughout Kenya.

KENYA

34 Energy and Water for Sustainable Living

Ngong Cookstove Project

Location: Ngong, Kenya

Type: Improved cookstoves

Size: 800 systems

Funding: Total: US$10,000 

Private: US$2,000 

Public: US$8,000 

Objective: To save money and improve health through 

the use of safer, more efficient cookstoves.

Duration: 1999–2001

Scale: Urban
Technical Data

An improved ceramic cookstove (“jiko”) and an insulated

basket cooker were introduced to replace inefficient cooking

systems. The new systems use more efficient direct combustion

systems for wood. Over 800 of the new systems are in use.

Performance Data

The improved systems allow more efficient use of wood

as cooking fuel. The greater efficiency of the new systems

lowers the total cost of wood for cooking, thus reducing the

use of plastic bottles and other toxic trash as a fuel source.

The new cooking systems lead to cost savings and reduced

toxic air emissions.

Participants and Roles

The Kenya Forestry Research Institute implemented the

project and provided capacity-building support. The women

of Ngong provided the energy, labor, and enthusiasm to not

only build stoves but also build a business. 

The US Department of Agriculture was the primary

source of funds. Winrock International managed the project

and provided technical assistance.

Partner Contacts

Jamal Gore

Winrock International

1621 N. Kent Street #1200

Arlington, VA 22209 USA

Phone: 703-525-9430

Fax: 703-243-1175

E-mail: jgore@winrock.org

Professor Julia Gitobu

Winrock International Kenya

PO Box 60745

Nairobi, Kenya

Phone: 254-2-711590

Fax: 254-2-712839

E-mail: jgitobu@winrock.org

Energy and Water for Sustainable Living 35
Summary

Soluz Honduras, a private energy company with a strong

market orientation and customer focus, supplies more than

2,000 rural households, micro-enterprises, churches, schools,

and clinics off the power grid with electricity generated by 

PV systems, including over 1,500 on a monthly rental basis.

Key to project success were revised private foreign investment

laws, rational and transparent import tariffs, and private-sector

participation in public conferences with government agencies.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

Key to attracting private financing for the project were

comprehensive and transparent energy laws and policies that

defined the basic structure of the energy sector and provided

a framework for private investment and ultimate privatization.

In 1994, Honduras implemented a foreign investment law.

Enforcement of this law, combined with rational import tariffs

on equipment, was critical to attracting investment capital.

Access to and linkage with available and transparent rural

electrification plans were important in attracting private

investment. 

Also important were principles that allowed utilities to

operate under standard commercial practices and to form

management teams independent of the government.

Financing

Total investment in the project was US$1,500,000.

Private-sector sources included Triodos-Solar Investment

Fund (US$250,000), Corporacion Financiera Ambiental

(CFA) (US$300,000), and SunLight Power International

(US$250,000). 

The World Bank Group’s International Finance

Corporation (IFC) provided US$500,000 through the Small

and Medium-Sized Enterprise (SME) Program, which is funded by the Global Environment Facility (GEF). A US$200,000

investment from E+Co included funds that originated from

the Inter-American Development Bank’s Multilateral

Investment Fund. The United States Agency for International

Development (USAID) provided US$23,000 in cost-shared

funds for market assessment, and Soluz funded two market

surveys costing $73,000.

Costs were allocated in two phases. Phase I, “market

assessment,” was US$500,000, and Phase II, “breakeven,” was

US$1,000,000, with three disbursements based on performance milestones.

The Project

This project provides electricity, on a private basis, to

households, small businesses, schools, clinics, and churches

that are not connected to the national electricity grid. It 

provides energy for lighting, cooking, recreation, refrigeration,

entertainment, wireless communication, personal computer

operation, and standard appliances to users who otherwise

would have no access to electricity from the electric utility. The

service displaces nonsustainable kerosene and battery usage.

The company provides electricity for dispersed rural

households and small businesses, mainly through a “wireless”

fee-for-service (rental) approach that offers PV systems and

services at affordable prices. By eliminating the up-front costs

of purchasing PV systems, Soluz Honduras has achieved 

HONDURAS

36 Energy and Water for Sustainable Living

Soluz Honduras

Location: North and northwestern Honduras

Type: Rural energy delivery

Size: 2,500 photovoltaic (PV) systems delivering the equivalent of 500 kW of conventional centralized power

Funding: Total: US$1,500,000 

Private: US$1,000,000

Public: US$500,000 

Objective: To provide electricity to dispersed rural 

households and small businesses.

Duration: 1998–2002

Scale: Rural
significant market penetration without customer subsidies or

donor programs. The company’s infrastructure, developed for

service to private residential and commercial customers, has

expanded to serve public applications such as schools and

clinics. Phase I began in 1998 and was completed with 

500 customers served. Phase II is 60% complete, with service

provided to 1,500 out of the 2,500 projected for this phase. 

Completion of the 2,500 installations is taking 4.5 years

and includes a 1-year delay due to Hurricane Mitch.

Subsequent expansion phases to 5,000 units or more will

occur as appropriate.

Technical Data

The distributed micropower technology is powered by

PV systems ranging from 20 to 200 Wp. The systems are

installed at point of use on a “wireless power” basis, thereby

eliminating the need for an electrical distribution infrastructure (similar to the avoidance of telephone wires with cellular

telephone technology.) A battery-recycling program helps

limit pollution.

Performance Data

By early 2002, Soluz Honduras provided electricity to

over 10,000 people through a rental customer base of 

1,500 and a total customer base of 2,000. Monthly collection

rates above 90% are attributed to customer service and client

responsibility commitments.

By eliminating the need to reach remote customers

through the normal electric power distribution system, about

US$2,500,000 in distribution infrastructure investment

(roughly US$1,000 per connection) has been avoided. The

elimination of kerosene use reduces energy unit costs by 90%

and eliminates 625 metric tons of carbon dioxide (CO2) emissions per year.

Quality of life improvements include better in-home

study habits, improved education (through access to computers), improved health (though reduced respiratory disease),

and income generation (by providing energy to micro-enterprises). Participation in the democratic process is also facilitated

through access to modern communications (the election

process is televised). 

Nearly 100 people have been trained in rural energy

delivery.

Participants and Roles

Soluz Inc. developed and raised capital for the project.

Triodos-Solar Investment Fund, CFA, SunLight Power

International, E+Co, and International Finance Corporation

(IFC/SME-GEF) provided financing. USAID provided costshared funds for market assessment through Winrock

International.

Partner Contacts

Griffin Thompson, Director

Office of Energy, Environment, and Technology 

US Agency for International Development

Ronald Reagan Building

Washington, DC 20523-3800 USA

Phone: 202-712-1750

Fax: 202-216-3230

E-mail: gthompson@usaid.gov

Richard Hansen, President

Soluz Honduras C/O Soluz, Inc.

55 Middlesex Street, No. 221

N. Chelmsford, MA 01863-1561 USA

Phone: 978-251-5290

Fax: 978-251-5291

E-mail: rhansen@igc.org

John Rogers, Vice President

Soluz, Inc. 

55 Middlesex Street, No. 221

N. Chelmsford, MA 01863-1561 USA

Phone: 978-251-5290

Fax: 978-251-5291

E-mail: jhrogers@igc.org

Energy and Water for Sustainable Living 37
Summary

The project reduced average annual air pollutant concentrations at more than 300 small-scale, solid-fuel-fired boilers

and home stoves in Cracow by 50 to 60%. Project success is

attributed to numerous joint ventures of Polish and United

States (US) companies, cost-effective use of available funds,

and the environmental consciousness of the people of Cracow.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

A key factor that helped attract private financing was

standard commercial operating practices for the energy sector.

Such practices included maintenance of financial records consistent with international accounting standards, release of

redundant staff, improved cost-recovery techniques, metering

systems, skills training, and cost-based pricing. 

Increased public knowledge of, and participation in,

energy decision making was facilitated through a survey of

public opinion regarding local air quality, heating sources,

personal incomes, and the willingness and ability to pay for

real energy costs and environmental improvement.

Information gathered in the program was made available to

the public and announced through published brochures and

television and radio announcements. 

Also important for attracting private-sector support was 

a comprehensive energy law characterized by basic policies

and priorities; separate policy making, ownership, and regulatory functions; and a framework for private investment.

Technical assistance allowed corporate restructuring of energy

enterprises and helped energy-based nongovernmental organizations to participate in the restructuring process.

The Polish Government’s action to lower permitted

emission levels for many emission sources forced facilities to

either lower emissions or pay fines.

Financing

Total project investment was US$58,400,000. Private

funds came from Polish local utilities (US$22,400,000) and

boiler house owners and citizens (US$900,000). Public 

funding sources included Polish environmental funds

(US$15,100,000) and US Agency for International

Development (USAID) (US$20,000,000).

Local utilities and boiler house owners requested Polish

environmental funds (grants or low-interest loans) for equipment installations. Eight teams of American and Polish 

companies were selected through an open solicitation to

participate in the project. Each team provided a 50% cost

share for its project task.

The Project

In 1989, the levels of SO2 and particulates in the ambient air of Cracow exceeded the local standards by several

times. The poor air quality, which resulted from emissions

from small, low-stack boilers and home stoves and from

upwind, high-stack sources (power plants), was harming the

health of Cracow citizens and the city’s historic treasures. 

The objective of the project was to reduce emissions from

POLAND

38 Energy and Water for Sustainable Living

Cracow Clean Fossil Fuels and 

Energy-Efficiency Program

Location: Cracow

Type: Emissions reductions in new and existing heating 

systems

Size: 300 units; combined capacity of 285 MW

Funding: Total: US$58,400,000

Private: US$23,300,000

Public: US$35,100,000 

Objective: To reduce sulfur dioxide (SO2) and particulate

emissions from small, solid-fuel-fired boilers 

and home stoves.

Duration: 1991–2000

Scale: Urban
sources within the control of the local government and

Cracow citizens. 

The project studied existing heating equipment and

options for emissions reductions; surveyed public opinion;

demonstrated energy-efficiency measures; gathered and

shared data on heating equipment and emissions sources;

established a clearinghouse to disseminate energy, heating,

environmental, and air quality information to the general

public; and prepared a regional plan to continue to improve

regional air quality. US-Polish joint ventures provided technical solutions to emissions problems for industrial- and commercial-scale solid-fuel-fired boilers and home stoves. 

Residential, utility, commercial, and industrial sectors

benefited through upgrades to heating sources that increased

efficiency and lowered emissions. Community health was

improved and quality of life was improved through installation of radiator valves in apartments, allowing individuals, for

the first time, to control the temperature of their apartments.

Technical Data

Technologies included commercial gas- and oil-fired 

boilers, automatic combustion controls, and high-efficiency

particulate collection devices. District heating lines and additional heat exchangers were installed for the district heating

distribution utility, and heating load was added for the electrical utility, which provided the source of district heat though

cogeneration. Of the 275 boiler houses in the project, 

107 were converted from coal or coke to natural gas or oil.

The remaining boiler houses were eliminated and replaced 

by heat exchangers for the district heating system.

Performance Data

The concentration of suspended particulates dropped by

nearly 60% and the concentration of SO2 dropped by 65%. It

is estimated that the program resulted in the yearly reduction

of 1,771 metric tons of particulates, 1,593 metric tons of SO2,

296 metric tons of nitrogen oxides, 2,267 metric tons of carbon monoxide, and 67,645 metric tons of carbon dioxide.

Solid fuel use dropped by 70% from the 1991 level of

475,000 metric tons. The district heating utility gained more

than 180 MW of new load. 

Participants and Roles

Key participants included the local utilities and boiler

house operators, the Polish government, and USAID.

Additional participants from Poland include the Cracow

Office of Environmental Protection; Polish Ministry of

Environmental Protection, Natural Resources, and Forestry;

City of Cracow; and Naftokrak-Naftobudowa and the Cracow

District Heating Distribution Utility (two Polish joint-venture

partners.) US participants include the following joint venture

partners: LSR Technologies, Honeywell, Control Techtronics,

Shooshanian Engineering Associates, and Tecogen. The

National Energy Technology Laboratory and Brookhaven

National Laboratory of the US Department of Energy

(USDOE) provided technical support.

Partner Contacts

Dr. Joseph P. Strakey

US Department of Energy

National Energy Technology Laboratory

PO Box 10940 

Pittsburgh, PA USA 15236

Phone: 412-386-6124

Fax: 412-386-6127

E-mail: joseph.strakey@netl.doe.gov

Jan Bieda

Cracow Development Office (BRK)

Ul. Kordylewskiego 11

31-547 Cracow, Poland

Phone: 48-12-411-70-44

Fax: 48-12-412-55-04

E-mail: BRK_SA@KR.ONET.PL

Dr. Thomas Butcher

US Department of Energy

Brookhaven National Laboratory

Upton, NY 11973 USA

Phone: 631-344-7916

Fax: 631-344-2359

E-mail: butcher@bnl.gov

Energy and Water for Sustainable Living 39
Summary

The project consists of one refurbished and two new

hydroelectric plants that provide roughly 84 MW of clean

energy to nearly 100,000 households in rural Bolivia. 

The plants will also reduce greenhouse gas emissions by 

10,000,000 metric tons over the life of the project. The 

project was developed as a result of deregulation of the

Bolivian energy market. Private electric developments are 

now permitted with payment based on either spot-market

prices from firm capacity and energy, or negotiated power

purchase agreements. 

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

Sound government principles and actions that attracted

private involvement in the project included investment and

privatization, which followed the creation of comprehensive

legal and regulatory reform and the implementation of successful energy sector restructuring. Also important was a 

comprehensive energy law that meets key global norms and

standards; separates the functions of policy making, ownership, and regulation; and creates a framework for private

investment and ultimate privatization. 

Capacity-building activities also helped attract private

financing. These included the formation of management

teams independent of the government; hiring and development of people with skills matched to job requirements; and

increased awareness and skills of sector professionals in 

commercial business practices, cost-based pricing, and competitive market operation. Stakeholder partnerships, dissemination of best practices, and participation in international

forums and workshops helped build these skills. 

Financing

Total project costs were US$97,400,000. Private-sector

debt and equity funded more than 99% of these costs. Debt

financing of roughly US$78,000,000 came from commercial

banks and bond issues. Equity sources included local industrial groups, engineering firms, and foreign groups. 

The US Agency for International Development (USAID)

provided $81,000 to partially fund the feasibility study, which

led to the US$97,400,000 investment.

Capital costs were US$68,700,000, and other costs, such

as operations and maintenance, were US$28,700,000.

The Project

The project provides roughly 84 MW of environmentally

sound electricity supply to nearly 100,000 households in and

near La Paz. It consists of two run-of-river plants and a refurbished facility along the Taquesi and Unduavi Rivers. 

It reduces CO2 emissions through the displacement of

electrical energy produced by single-cycle combustion engines.

Increased electrical power from non-polluting hydropower

benefits commercial, residential, and utility sectors in La Paz

through improvements in health, education, lighting, refrigeration, irrigation, sewage, navigation, and recreation. 

Construction of the project began in 1999 and was completed in 2001. The plants are currently operating.

Technical Data

A 115-kV transmission line connects the project with 

the Pichu substation located near Yanacachi. From the Pichu

BOLIVIA

40 Energy and Water for Sustainable Living

Bolivia Private Hydropower Project

Location: Rural Bolivia

Type: Hydropower

Size: 84 MW

Funding: Total: US$97,400,000

Private: US$97,319,000

Public: US$81,000 

Objective: To provide hydroelectric power and reduce

carbon dioxide (CO2) emissions.

Duration: 1999–2001

Scale: Rural
substation, the power is transmitted on an existing 115-kV

transmission line to the Kenko substation near the northern

portion of La Paz, Bolivia’s major load center.

The project’s net electrical output is sold under the terms

of Bolivia’s Electricity Law, which regulates electric power production on the basis of economic dispatch and lowest marginal cost of production

Performance Data

The project serves roughly 100,000 households in and

around La Paz.

It generates more than US$2,500,000 in revenues annually from the sale of electricity production and provides

power at reduced cost to the Bolivian national grid, thus

allowing growth in all other economic sectors.

Construction and operations of the project have created

both temporary and permanent jobs.

The project reduces CO2 emissions by 500,000 metric

tons per year, for an estimated total reduction of 

10,000,000 metric tons over the projected 20-year life 

of the project. 

Because of the small footprint of the project facilities,

impacts to soil and forest resources are minimal.

Participants and Roles

Tenaska, a private US company, constructed the facility.

USAID provided US$81,000 to Tenaska to partially fund the

feasibility study. Private-sector investors funded the project. 

Partner Contacts

Marc L. Petersen

Tenaska International

1044 N. 115 Street, Suite 400

Omaha, NE 68154-4446 USA

Phone: 402-691-9500

Fax: 402-691-9570

John Hammond

US Energy Association

1300 Pennsylvania Ave., NW

Suite 550, Mailbox 142

Washington, DC 20004-3022 USA

Phone: 202-312-1230

Fax: 202-682-1682

E-mail: Jhammond@usea.org

Richard Moore

US Initiative on Joint Implementation

1000 Independence Ave., SW 

Washington, DC 20585 USA

Phone: 202-586-6485

Fax: 202-586-3485

E-mail: Richard.H.Moore@hq.doe.gov

Energy and Water for Sustainable Living 41
Summary

This public-private partnership project used innovative

combustion technology to retrofit a steam and electric powergenerating boiler at the Francisco I. Madero refinery, a large

PEMEX facility near Tampico, Mexico. The project is expected

to result in annual emissions reductions of 5,300 tons of 

carbon dioxide (CO2) and 162 tons of nitrogen oxides (NOx)

at the facility, while simultaneously improving efficiency and

reducing operating costs. Seventy percent of total project costs

were leveraged from the private sector and Mexican government agencies.

In-Country Principles That Attracted

Nondonor Financing

• Institution building and access to justice and 

enforcement of laws

The key principle that helped attract private-sector

financing was a comprehensive energy law that meets global

norms and standards and that created a framework for private

investment and ultimate privatization.

Financing

Total project investment was US$760,000. Electric Power

Technologies (EPT) of California provided US$145,000 in 

private-sector funding, PEMEX contributed US$390,000, and

the United States Agency for International Development

(USAID) contributed US$225,000. 

The Project

The Madero refinery processes approximately 

170,000 bbl/d of crude oil, or about 12% of Mexico’s total

refining capacity of 1.5 million bbl/d. The refinery has seven

boilers, fired primarily by heavy fuel oil. Combined, these

boilers generate about 1,400 tons per hour of steam, which is

equivalent to 385 MW. 

Prior to implementation, the refinery emitted about

1,800,000 tons of CO2 and 4,000 tons of particulate matter

per year. 

Acting on its mandate to mitigate GHG emissions in

Mexico, USAID initiated a collaborative partnership that

emphasized the importance of private-sector participation.

Under the partnership, USAID’s Center for Environment,

USAID Mexico, PEMEX, the Instituto de Investigaciones

Electricas (IIE) (Mexico’s research institute for the state-owned

electric utility), and EPT are working together to accelerate

the transfer of environmental control technologies by demonstrating them in real-world conditions. 

The project is addressing environmental constraints that

impede development, and it is reducing long-term threats to

the global environment — particularly the loss of biodiversity

— by mitigating GHG emissions while promoting sustainable

economic growth. 

Technical Data

The technology used in retrofitting the boilers is Reduced

Emissions and Advanced Combustion Hardware (REACH). 

By replacing the refinery’s heavy-oil burners with the new

technology, combustion efficiency is improved and carbon

MEXICO

42 Energy and Water for Sustainable Living

Design, Installation, and Testing of a Cleaner Combustion

Technology at a Petroleos Mexicanos (PEMEX) Refinery

Location: Tampico, on the Gulf of Mexico

Type: Boiler retrofit

Size: 385 MW

Funding: Total: US$760,000

Private: US$145,000

Public: US$615,000 

Objective: To increase energy efficiency and reduce

greenhouse gas (GHG) and other emissions.

Duration: 1998–2003

Scale: Urban
and atmospheric particulate emissions are reduced. The

REACH burners also reduce GHGs since less oil is required 

to generate similar amounts of steam and electricity. 

Performance Data

The project will reduce CO2 emissions by about 

5,300 tons per year. When the REACH technology is operational in all 40 PEMEX boilers, approximately 200,000 tons

of CO2 will be avoided every year, and annual savings of

US$10,000,000 are expected.

Participants and Roles

PEMEX has hosted the project and contributed financing,

EPT provided the technology, USAID brokered the partnership

with PEMEX and leveraged financing for GHG emissions reduction, and Nexant was responsible for project implementation.

Partner Contacts

Gordon Weynand

US Agency for International Development 

Global Bureau

Ronald Reagan Building

Washington, DC 20523-1000 USA 

Phone: 202-712-4169

Fax: 202-216-3230

E-mail: gweynand@usaid.gov

Jorge Landa

US Agency for International Development/Mexico D.F.

Department of State

Washington, DC 20521-8700 USA

Phone: 52-5-209-0042

Fax: 52-5-207-7558

E-mail: jlanda@usaid.gov

Bob Carr

Electric Power Technologies

1050 University Dr.

Menlo Park, CA 94025 USA

Phone: 650-322-2819

E-mail: CarrEPT@aol.com

Energy and Water for Sustainable Living 43
Summary

This project consisted of establishing energy-efficiency

measures at a medium-sized, joint-stock company brewery,

which significantly reduced annual electricity consumption

and heavy oil consumption. These energy savings translated

into a 6.4% average decrease in product costs, allowing the

brewery to price its products more competitively and increase

its market share from 4.5 to 9.5% in two years. Significant

emissions reductions also resulted from more efficient operations and reduced fuel consumption.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

A key principle that attracted private financing was the

ability of the firm to operate under standard commercial practices. Such practices included improved cost recovery, metering systems, and maintaining financial records consistent with

international accounting standards. 

Study tours and dissemination of best practices helped

increase awareness, knowledge, and skills of sector professionals in technical areas such as cost-based pricing, international accounting standards, and competitive energy market

operations. 

Increased public knowledge of, and participation in,

energy decision making — accomplished largely through outreach programs — were also important. Activities contributing to this increased knowledge and participation included

institutionalizing sustainable education, communication, and 

outreach programs through capacity building and innovative

financing.

Financing

Total project costs were US$406,000. The Pirinsko Pivo

Brewery provided US$106,000 in equity, and the United

Bulgarian Bank (UBB), a private, commercial bank, provided

$300,000 in debt financing. USAID provided a 50%

Development Authority Guarantee for the loan, which

allowed for risk sharing and, consequently, for the bank to

make a longer-term loan under commercial rates.

The Project

In 1997, the Pirinsko Pivo Brewery was registered as a

joint-stock company. At that time, its market share was 4%.

To obtain a greater market share, the company realized it

needed to reduce its costs, and particularly its energy costs. A

comprehensive energy audit showed that the brewery’s energy

costs were considerably higher than those of its competitors.

To reduce energy costs, the brewery developed a strategy to

speed up implementation of an integrated energy-efficiency

system. 

The implemented energy-efficiency measures resulted in

a 27% savings in electrical energy, 35% savings in heavy fuel

oil, and 1% savings in production-related water consumption.

Technical Data

Several energy conservation measures and technologies

were implemented. These included the following: devices

enabling measurement information to be fed into a computer

system for monitoring and maintaining energy consumption

within prescribed standards; steam distribution improvements

such as installation of reduction valves and highly effective

BULGARIA

44 Energy and Water for Sustainable Living

Pirinsko Pivo Brewery Project

Location: City of Blagoevgrad

Type: Energy efficiency and production line improvement

Size: US$2,700,000 in annual sales

Funding: Total: US$406,000

Private: US$406,000, partially guaranteed with

United States Agency for International

Development (USAID) mechanism 

Objective: To reduce energy costs and increase market 

penetration.

Duration: 2000–2001

Scale: Urban
steam traps; refrigeration improvements, including change of

the isolation and implementation of automatic control of the

compressors; energy-saving lighting systems that included

sectioning and automatic control; and air compressor replacement containing a new screw-type compressor that consumes

30% less power.

Performance Data

The direct energy savings helped reduce the final cost of

a bottle of beer by 6.4%. This reduced product cost gave the

brewery more flexibility in its pricing policy which, coupled

with the increase in production capacity, led to a doubling of

sales and market share in two years. Return on investment

was 38%.

Carbon dioxide (CO2) emissions due to heavy fuel oil

burning were reduced by 35%. The level of production forecast for 2000 to 2004 is expected to result in the reduction 

of CO2 emissions by 17,218 tons and sulfur dioxide (SO2)

emissions by 316 tons. During this period, water savings are

estimated at 14,000 m3.

Participants and Roles

Participants in the project are Pirinsko Pivo Brewery, the

beneficiary of the project; Energy Efficient Systems Ltd. (EES),

which developed and implemented the energy-efficiency project; Electrotek Concepts, which developed the business plan

and the loan application; and the UBB, which made the loan. 

Partner Contacts

Edward La Farge

US Agency for International Development/Sofia

NDK Office Bldg., 1 Bulgaria Square, 1414 Sofia 

Bulgaria

Phone: 359-2-951-5670

Fax: 359-2-951-5070

E-mail: elafarge@usaid.gov

Dimtcho Linkov

Electrotek Concepts, Inc.

3 Vassil Levski Blvd., 1000 Sofia

Bulgaria

Phone: 359-2-987-1903

Fax: 359-2-987-1903

E-mail: dimtcho@tusk.icn.bg

Michael Velikanov

Electrotek Concepts, Inc.

2111 Wilson Blvd., Suite 323 

Arlington, VA 22201 USA

Phone: 703-351-4492, Ext. 125

Fax: 703-351-4495

E-mail: mvelikanov@electrotek.com

Energy and Water for Sustainable Living 45
Summary

The 24-MW Tierras Morenas Wind Farm is one of the

largest wind projects in Latin America and has one of the best

performance and output records in the hemisphere. The project provides diversity and resilience of electricity supply and

generates no air pollution, water pollution, or GHG emissions. Government commitment to environmentally sustainable development helped attract investment from a private

consortium. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

A key factor that helped attract private financing was

increased public knowledge of, and participation in, energy

decision making. Public access and public participation were

facilitated through the institutionalizing of sustainable education, communication, and outreach programs through capacity

building and innovative financing.

The Government of Costa Rica’s commitment to environmentally sustainable development and resource use and

reduced GHG emissions, as demonstrated by its goal to develop

60 MW of wind energy generating capacity, also helped attract

private-sector investment. A long-term power purchase agreement with the local utility, as opposed to spot-market trading,

was also instrumental in attracting private financing. 

Financing

Total project investment was US$35,000,000. Roughly

US$24,000,000 came from private and public loan and grant

support from five Costa Rican banks and the Central

American Bank for Economic Integration.

Supplemental funding for the project came from the

Danish International Development Agency (DANIDA). This

bilateral government support for wind power helped attract

investors and reduce up-front installation costs.

The project was built under a fixed price, turnkey contract backed by service agreements and warranties.

The Project

Located near Lake Arenal in Tilarán de Guanacaste, the

project consists of 32 wind turbine generators that produce

about 70,000 MWh of electricity per year. The project sells

this generation to the Instituto Costarricense de Electricidad

(ICE), the state-owned national electric utility, under a 

15-year power purchase agreement.

The Tierras Morenas project complements ICE’s hydrointensive generation mix, because its wind regime is strongest

during Costa Rica’s dry season.

Increased electricity production with no pollution helps

improve lighting and health in the region.

Technical Data

The 24-MW wind farm consists of 32 NEG Micon

750/44-kW wind turbines, each with 44-m rotors and 40-m

towers. The turbines have three blades, a 690-V generator,

and are computer-controlled. 

The generated electricity feeds into the ICE through the

main switch house and an 11-mi overhead feeder line built

over difficult terrain.

COSTA RICA

46 Energy and Water for Sustainable Living

Tierras Morenas Wind Farm

Location: Guanacaste region

Type: Utility-scale wind farm

Size: 24 MW

Funding: Total: US$35,000,000, from combined private 

and public sources 

Objective: To generate electricity without greenhouse gas

(GHG) or other pollutant emissions.

Duration: 1999

Scale: Rural
The generation of electricity produces no air emissions,

and environmental impacts associated with the materials used

to manufacture the wind turbines are addressed through the

manufacturer’s environmental policy, which calls for increasing environmental standards from its suppliers.

Performance Data

The project has reduced GHG (carbon dioxide [CO2])

emissions by an estimated 57,200 tons due to the displacement of fossil fuels that otherwise would have been used to

generate the electricity. The project causes no disruption to

pre-existing land use. It allows ranching and farming to continue up to the foot of the turbines and provides more than

two dozen full-time, well-paid jobs.

Despite logistical, cultural, and climatic challenges, the

project was completed ahead of schedule with a perfect safety

record and high degree of design and construction quality. 

The annual capacity factor for the farm is about 45%. 

Maintenance costs are low, and the turbines are safe

enough that in Denmark, they are installed in recreational

parks and public areas. 

Participants and Roles

Energia Global International (EGI), developed the plant,

NEG Micon manufactured the turbine generators, Zilkha

Renewable Energy organized the financing partnership, and

ICE purchases the electricity. The project is part of the United

States Initiative on Joint Implementation (USIJI), sponsored in

part by the US Department of Energy.

Partner Contacts

Richard Moore

US Initiative on Joint Implementation

1000 Independence Ave., SW

Washington, DC 20585 USA

Phone: 202-586-6485

Fax: 202-586-3485

E-mail: Richard.H.Moore@hq.doe.gov

Zilkha Renewable Energy

1001 McKinney, Suite 1740, 

Houston, TX 77002 USA

Phone: 713-571-6640

Web site: www.zilkha.com

Jorge Dengo

Energia Global

Parque Empresarial Forum Santa Ana

San Jose, Costa Rica

Phone: 506-204-7421

Fax: 506-204-7431

Energy and Water for Sustainable Living 47
Summary

The project captures and reuses methane gas produced

from a municipal landfill. The gas is transported to a local

industrial site, where it is burned in boilers without being

purified. The project saves energy and prevents the exhaust

of methane gas into the environment. This international,

cooperative effort optimizes public-private, national, and

international partnerships and funding to reduce greenhouse

gas (GHG) emissions and build Korea’s capabilities to install

similar projects.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

• Public participation in, and support of, sustainable 

development

Capacity-building principles that helped attract privatesector investment included hiring people with appropriate

skills, operating utilities under standard commercial practices,

creating a management team independent of the government,

and providing improved cost-recovery opportunities.

Stakeholder partnerships and exchanges, dissemination of

best practices, and participation in international forums

helped increase awareness and knowledge of commercial

business practices.

Important institution-building principles that helped

attract private interest included a successful energy restructuring that embodied comprehensive legal and regulatory reforms

and a comprehensive energy law that meets global norms.

Also important were increased public knowledge of, and

participation in, energy decision making facilitated by professional training; public education, communication, and outreach programs; and a state-of-the-art system for collecting,

demonstrating, and exchanging information on outreach

strategies, methods, and tools.

Financing

Total project investment is US$3,900,000. Construction

costs of US$3,500,000 were funded through a commercial

bank loan to the City of Ulsan using the revolving fund established by the Korean Energy Management Corporation

(KEMCO). The Korean government funds and staffs KEMCO

to help reduce barriers to energy efficiency. KEMCO funds

energy-efficiency projects through a dedicated fund that provides low-interest loans. 

Operations and maintenance costs (about US$400,000)

are funded by SK Corporation of Korea, a private company,

which uses the recovered methane as fuel. 

The Project

The Ulsan facility is a lined landfill, which, until recently,

flared the methane gases that it generated. The project changes

these GHG emissions into useful energy. Methane gas is transported to a nearby industrial site, where it fuels a boiler, thereby

reducing methane emissions, decreasing the amount of natural gas that would otherwise be burned, reducing odor from

the landfill, and reducing the risk of methane creep and attendant explosions in adjacent properties. 

REPUBLIC OF KOREA

48 Energy and Water for Sustainable Living

Ulsan Landfill Methane Gas Project

Location: Ulsan

Type: Landfill methane gas capture and use

Size: 11,230 tons of methane per year

Funding: Total: US$3,900,000

Public: US$3,500,000 

Private: US$400,000 

Objective: To reduce the amount of methane gas 

released to the atmosphere and reduce the

need to import and burn natural gas.

Duration: 2000–2002 (construction)

Scale: Urban
The feasibility study was started in November 2000. 

The municipality awarded the project in September 2001,

and construction started in December 2001. Completion is

expected in 2002.

Technical Data

A methane-collection mechanism, transportation

pipeline, dewatering device, and connection to the boiler at

an adjacent chemical company, which will use the methane as

fuel, were installed. An estimated 11,230 tons of methane

per year will be collected and used for fuel.

Performance Data

The market value of the methane gas supplied to the

boiler over the life of the system is estimated at US$3,400,000.

Air quality is expected to improve as a result of reduced 

carbon dioxide (CO2) emissions, which are estimated at

84,000 metric tons per year.

Participants and Roles

Ulsan City officials were open to installing a landfill

methane project in their city, attended a workshop conducted

by the United States Environmental Protection Agency

(USEPA’s) methane outreach program in Korea, completed the

project, and funded the installation. The Republic of Korea’s

Ministry of Environment implemented standards that changed

the way waste is disposed of in landfills, resulting in landfills

that have the potential to be developed for methane recovery.

SK Corporation conducted an independent assessment of

the site, installed the project, and will use the gas. LFG

Consult Aps conducted a feasibility study for SK Corporation

to determine the capability of the landfill to generate gas and

helped with project design.

The United States-Asia Environmental Partnership 

(US-AEP) provided initial funding for the US Department of

Energy’s (USDOE’s) National Renewable Energy Laboratory

(NREL) and the USEPA to pursue development of a Clean

Technology Initiative in Korea.

Partner Contacts

Mark Heil

US Environmental Protection Agency

1200 Pennsylvania Ave., NW (6205J)

Washington, DC 20460 USA

Phone: 202-564-9724

Fax: 202-564-2155

E-mail: heil.mark@epamail.epa.gov

Gyungae Ha

Korea Emergency Management Corporation 

1157 Pungdukchun-ri, Suji-epu, Yongin

Kyonggi-do 449-840 Korea

Phone: 82-31-2604-065

Fax: 82-31-2604-059

E-mail: hga@kemco.or.kr

Dave Howard

US Department of Energy

National Renewable Energy Laboratory

901 D St. SW, Suite 903

Washington, DC 20024 USA

Phone: 202-646-5221

Fax: 202-646-7780

E-mail: dave.howard@nrel.gov

Energy and Water for Sustainable Living 49
Summary 

Actions put in place as a result of the implementation of

environmental management systems at five Jamaican hotels

have reduced energy use per guest night by 12%. These

actions also reduced water consumption by 50,000,000 gal

and energy use by 1,665,000 kWh. The dollar value of the

efficiency gains for the five hotels was US$616,555, or about

US$330,000 on an annual basis.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

Informed decision-making principles that helped attract

private sources of funding included dissemination of best

practices; participation in international forums and workshops; and increased awareness, knowledge, and skills of professionals regarding commercial business practices. 

A central element of sector reform efforts that helped

attract private financing was increased public knowledge of,

and participation in, energy decision making. Knowledge and

awareness of the conditions required for providing sustainable

energy helped create the popular support necessary for political changes to enable sustainable, market-based provision of

energy services. In Jamaica, such knowledge and awareness

were increased via programs in professional training, public

education and communication, and outreach. 

Additional principles that helped attract private funding

included the commitment to creating and strengthening a

strong human and organizational capacity for sustainable and

integrated water management and the consideration of water

as an economic, social, and environmental good, including

the acknowledgment of the full costs of water management

and water services.

Financing

Total investment costs for the five hotels for which data

were collected was US$175,000. Of this, 75% came from private sources (Sandals Resorts International [US$56,000] and

Couples Hotels [US$76,000]). The United States Agency for

International Development (USAID) contributed US$43,000.

The Project

For each of the hotels, an EAST project team, consisting

of engineers and hotel operations specialists, assessed the

hotel’s infrastructure, equipment, practices, and operations to

determine the environmental performance baseline and identify opportunities to improve efficiency and reduce environmental impacts. Each hotel then used this information to create an environmental management system (EMS) — a tool to

help incorporate environmental care in all key aspects of a

facility’s operations, management, and decision-making

processes.

Actions developed through the implementation of the

EMS helped the hotels reduce their use of water, energy, materials, and chemicals and to realize monetary savings. 

Examples of actions that led to energy efficiency and

environmental benefits included monitoring electricity and

water consumption to track performance and identify unusual

shifts in energy use that could indicate equipment or operational problems; turning on lights and air-conditioning in

JAMAICA

50 Energy and Water for Sustainable Living

Environmental Audits for Sustainable Tourism (EAST)

Location: Jamaica

Type: Energy efficiency, water conservation, and waste 

minimization

Size: 2,147 hotel rooms

Funding: Total: US$175,000 

Private: US$132,000

Public: US$43,000

Objective: To implement effective environmental management practices for greater energy efficiency

and environmental protection in the hospitality

industry.

Duration: 1997 to 2002

Scale: Urban and rural
guest rooms only 30 minutes prior to guest arrival, rather

than early in the morning of guest check-in; and encouraging

guests to turn off lights, television sets, and air-conditioning

units prior to leaving their rooms.

Actions that have contributed to reduced water use

include backwashing pool filters only when recommended by

the equipment manufacturer, starting a voluntary towel reuse

program in guestrooms, and training staff on how they can

conserve water in their daily activities.

Technical Data

Technologies used to achieve energy savings included

energy-efficient compact fluorescent bulbs to replace incandescent lights, photocells and timers installed on outdoor

lighting circuits to ensure that lights remain on no longer

than necessary, and high-efficiency air-conditioners to replace

older units. 

Water conservation technologies included low-flow

showerheads and faucet aerators, submeters to aid in detection and repair of water leaks, drip irrigation and low-pressure sprinkler systems, and trigger nozzles on water hoses.

Performance Data

Although the project has included 2,147 hotel rooms,

the following data come from the five hotels (673 rooms) for

which data were collected. 

Energy use was reduced by 12% per guest night. The

total savings at the five hotels resulting from the energyefficiency improvements included 1,665,000 kWh of electricity and 160,000 L of liquid propane gas. Reduced water

consumption resulting from water conservation measures

totaled 50,000,000 gal.

The monetary savings from these reductions is

US$616,555, or an estimated annual savings of US$333,000.

Average annual per-room savings at each of the hotels ranged

from US$330 to US$1,160.

In addition to the water and energy savings, carbon dioxide (CO2) emissions were reduced by 2,140 tons per year.

Participants and Roles

PA Consulting Group conducted the environmental

assessments and helped prepare the EMS in cooperation with

the participating hotels. USAID contributed financial support.

Partner Contacts

Howard Batson, Cognizant Technical Officer

US Agency for International Development/Jamaica

2 Haining Road

Kingston 5 Jamaica

Hugh Cresser

2 Ardenne Road

Kingston 10 Jamaica

Phone: 876-926-3635

Fax: 876-929-1054

E-mail: east@infochan.com

Energy and Water for Sustainable Living 51
Summary

In this project, a private United States (US) electric utility

(American Electric Power [AEP]) partnered with the Davao

Light and Power Co., Inc. (DLPC) to implement an “underfrequency load shedding system.” As a result, DLPC can now

section off portions of its power grid to increase availability of

uninterrupted electric supply, thus allowing industrial and

commercial enterprises to continue production operations

without interruption. The project has also reduced costs to all

classes of consumers because they no longer need to purchase

and run backup electric generators.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and informed decision making

A key factor that helped attract private financing was the

ability of the utility to operate under standard commercial

practices. Activities that helped bring the utility in line with

standard commercial practices have included a management

team independent of the government, and hiring/developing

staff with appropriate skills matched to the job. Also important were the increased awareness, knowledge, and skills of

sector professionals in technical areas such as commercial

business practices, competitive energy market operation, and

management of private-sector involvement. This increased

awareness has been accomplished via study tours, dissemination of best practices, and stakeholder partnerships and

exchanges. 

Also important was a successful energy restructuring,

characterized by commercialization and development of the

existing dominant utilities and investment and privatization.

Financing

Total project investment was US$50,000. All of this was

for capital costs and all was provided by the privately held

DLPC, the third largest electric power distribution company

in the Philippines. 

The Project

Systemwide power blackouts plagued 190,000 household consumers of DLPC, which does not generate its own

power, but buys it from providers.

Under the United States Agency for International

Development (USAID)-funded Philippines Energy Partnership

Program (PEPP), AEP — a private US electric utility based in

Ohio — partnered with DLPC and demonstrated how to

institute an under-frequency load shedding system. At no cost

to DLPC or USAID, AEP transferred its experience in sectioning off portions of its power grid to ensure power quality and

reliability. Specifically, AEP showed its Philippine partner how

to switch a cement plant off of its electrical system during the

frequent occasions when power quality declined below

acceptable levels. 

This load-shedding ability enables DLPC to keep its

remaining customers from experiencing total blackouts. 

Technical Data

Under-frequency relays were used to limit power outages

to small sections of the city, while maintaining power in the

rest of the city.

PHILIPPINES

52 Energy and Water for Sustainable Living

Increasing Electric Power for Development 

in the Southern Philippines

Location: Davao City, on the southern island of Mindanao

Type: Utility load-shedding system

Size: 190,000 household customers

Funding: Total: US$50,000

Private: US$50,000 

Objective: To increase availability of uninterrupted 

electric supply.

Duration: 1999–2001

Scale: Urban
Performance Data

The project has limited blackouts for 190,000 households and has resulted in savings of about US$3,000,000 per

year for industrial, commercial, and residential users. The

reliable supply of electricity has improved health and education in the city and has also enhanced industrial production

and commercial sales. 

Participants and Roles

USAID funds the PEPP, which helped link the US utility,

AEP, with its Philippine Partner, DLPC. DLPC financed the

capital costs of the project and AEP transferred its experience

to DLPC in sectioning off portions of the power grid to ensure

power quality and reliability. The US Energy Association

(USAE) administers the PEPP.

Partner Contacts

John Hammond, Program Manager

U.S. Energy Association - Energy Partnership Program

1300 Pennsylvania Ave., NW

Washington, DC 20004 USA

Phone: 202-312-1230

Fax: 202-682-1682

E-mail: jhammond@usea.org

Raul Lucero

Davao Light and Power Co., Inc.

C. Bangoy Sr. St.

Davao City, Philippines 8000

Phone: 63-82-221-2191

Fax: 63-82-221-2105

E-mail: davaolight@aboitiz.com

Web site: www.davaolight.com

Energy and Water for Sustainable Living 53
Summary

A Thai-based company has designed and is installing an

anaerobic biodigester to convert organic-rich wastewater from

a cassava processing plant into methane. The plant will save

money by avoiding the costs of purchasing heavy fuel oil and

electricity. The project will also reclaim dozens of acres of

land that were previously used to purify the factory’s wastewater. In addition, the project is expected to generate several

hundred tons of carbon offsets per year.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

The key principle in attracting private-sector financing

was a successful energy restructuring, which included the creation of comprehensive legal and regulatory reform. 

Another important factor was that the Thai Bureau of

Investments approved the project for tax incentives and other

privileges provided to businesses willing to work in economically depressed regions of the country.

Financing

Total project investment was US$1,850,000. Of this, the

private sector contributed more than 85%. Private sources

included Al Tayyar Energy and the Renewable Energy and

Energy Efficiency Fund (REEF). 

A short-term loan from E+Co. allowed completion of the

feasibility evaluation and the preparation of investment documents necessary for attracting additional investment.

Equity sources included foreign utilities, multilaterals,

and insurance agencies. Local debt in Thailand is difficult to

access, and it is hoped that as Clean Thai’s projects build a

track record, local debt availability will increase.

The Project

Clean Thai is a Thai-based company that specializes in

the production of biogas from agricultural and process waste

streams. It established this project to finance, construct, operate, and maintain a biodigestor power plant at a cassava processing plant. The plant produces more than 500 tons per day

of cassava starch, and, prior to the project, it consumed

US$2,300,000 in electricity and US$2,200,000 in heavy fuel

oil costs per year.

With this project, the waste from the plant will operate

an anaerobic digestion system that will produce enough biogas to replace significant portions of the facility’s heavy oil and

electricity needs. 

Commercial, residential, and agricultural sectors will

benefit from the project. By utilizing an anaerobic digestion

system, organic matter decomposes in a contained environment, thus virtually eliminating odor and pest issues caused

by large-scale decomposition of organic material for residents

close to the site.

As Clean Thai grows as a project developer, each additional anaerobic digestion system that it installs will provide

similar environmental benefits.

Technical Data

The technology used is methane collection, powered by

four gas boilers. The methane is generated through an anaerobic digestion process using cassava-rich wastewater.

THAILAND

54 Energy and Water for Sustainable Living

Clean Thai Biogas Plant

Location: Countrywide

Type: Biogas plant at cassava processing facility

Size: 550 tons per day of cassava starch

Funding: Total: US$1,850,000

Private: US$1,585,000

Public: US$265,000 

Objective: To convert waste into methane to reduce 

heavy fuel oil and electricity consumption.

Duration: 2001–2002

Scale: Rural
Performance Data

At this writing, the project is under construction, so performance data are not available. However, it is estimated that

the methane generated from the project will displace tens of

thousands of barrels of heavy fuel oil per year, replacing

100% of its heavy oil needs and 75% of its electricity needs

(which are currently purchased from the grid.)

Estimated carbon offsets are 315,000 tons per year. 

The project is projected to save the cassava processing

factory hundreds of thousands of dollars in operating expenses each year.

Four to six people have been trained in the construction

and ongoing maintenance of anaerobic digestion systems.

Participants and Roles

Clean Thai developed the project, and REEF, a renewable

energy equity fund, and Al Tayyar Energy, a private energy

investment fund based in Abu Dhabi, provided financing for

the project. E+Co. provided a short-term loan at the early

stage, which helped attract second-stage capital.

Partner Contact

Steve Cunningham

E+Co

383 Franklin St.

Bloomfield, NJ 07003 USA

Phone: 973-680-9100

Fax: 973-680-8066

E-mail: steve@energyhouse.com

Energy and Water for Sustainable Living 55
Summary

The implementation of cutting-edge water treatment and

production technologies by a private partner has improved

the living conditions of the poor and diminished public

health risks. The long-term private-sector interest in developing Cartagena’s water sector has helped make the water utility

of Cartagena the most advanced in Latin America. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

The most important principles that supported reform in

the water sector in Cartagena, and, in turn, helped attract private-sector financing included decentralization, enactment of

a legal framework that promotes private-sector participation,

and subsidies and political commitments to support privatesector participation at the local and national government levels. Also important was a clear and transparent bidding

process.

Other principles that helped attract private-sector financing included the following: informed and science-based decision making; strong, effective, and culturally appropriate institutional, policy, and legal frameworks; effective coordination

among sectors; an emphasis on decision making at the lowest

appropriate level; and consideration of water as an economic,

social, and environmental good, including acknowledgment of

the full costs of water management and water services, and

transparent, equitable, and sufficient allocation of those costs

throughout society. Systems of accountability, including full

accounting of costs and benefits, were also important.

Financing

Total project investment was US$117,200,000. Of this,

US$103,200,000 was for capital costs, and US$14,000,000

was for operations and maintenance.

Aguas de Cartagena (ACUACAR), the Cartagena Water

Company, provided US$4,600,000 in private funds. Public

funding came from the Government of Colombia

(US$20,000,000, the District of Cartagena (US$7,600,000),

and the International Bank for Reconstruction and

Development (IBRD) (US$85,000,000).

The “mixed-capital company model,” under which the

private sector provides investments as permitted by the

applied tariffs and the public sector provides the balance of

the funding required to achieve the performance targets set by

the public sector, has achieved excellent results in Cartagena

and transformed its utility to an exemplary institution.

The Project

The project had three objectives: (1) to improve the

water and sewerage services of Cartagena by expanding coverage, particularly in the city’s poor neighborhoods; (2) to facilitate the environmental cleanup of water bodies surrounding

the city by providing adequate collection, treatment, and disposal of the entire flow of the city’s wastewater; and (3) to

COLOMBIA

56 Energy and Water for Sustainable Living

Cartagena Water Supply, Sewerage, 

and Environmental Management

Location: Cartagena

Type: Rehabilitation and expansion of water supply and 

sewerage networks

Size: 240,000 m3 per day production capacity

Funding: Total: US$117,200,000

Private: US$4,600,000

Public: US$112,600,000 

Objective: To improve water and sewerage services, facilitate the environmental cleanup of water bodies, and enhance sustainability of water and

sewerage services.

Duration: 1999–2004

Scale: Urban
improve the sustainability of water and sewerage services in

Cartagena by leveraging bank support to shore up the privatesector participation model pioneered by ACUACAR, the city’s

water and sanitation utility, against the prospect of political

interference.

The project rehabilitated and increased water production

capacity to 270,000 m3/d, rehabilitated and expanded water

and sewerage networks to serve a population of about

1,000,000 inhabitants, and completed construction of a

wastewater collection, conveyance, treatment, and disposal

facility with a capacity of 4 m3/s.

Providing water and sewerage services in poor neighborhoods helped improve living conditions and diminish public

health risks. Cleanup of the water bodies surrounding

Cartagena (Cartagena bay, beaches, the Cienaga coastal

lagoon) boosted recreational uses of these water bodies and

decreased health risks to residents and tourists.

Technical Data

The following cutting-edge technologies were used to

accomplish the project’s objectives: sewerage networks, wastewater conveyance systems, pressure pipes, pumping stations,

wastewater treatment installations, effluent disposal through a

submarine outfall, centralized control and operation systems,

and modern integrated financial and commercial management

technologies.

Wastewater screening in fine-opening rotating screens

and grit removal in vortex-type grit chambers helps control

pollution. 

Performance Data

The project serves 134,031 water supply users and

107,912 sewerage facility users.

The following table illustrates how the project improved

water supply and sewage coverage through 2001:

Participants and Roles

The Municipality of Cartagena is an associate of the

water utility and provides financial support. Aguas de

Barcelona, the private operator of the water utility of

Barcelona, Spain, operates the water utility of Cartagena, in

association with the municipality. The Government of

Colombia, through the Ministry of Economic Development,

provides national government subsidies and political support,

and the World Bank provides financing.

Partner Contacts

Jesus Blanco Garcia

Aguas de Cartagena (ACUACAR)

Apartado Aereo 4240, Ed. Chambacu Cra 13B

#26-78 Sector Papayal

Cartagena de Indias, Colombia

Phone: 57-5-650-4100

Fax: 57-5-650-4104

E-mail: jblanco@acuacar.com

Menahem Libhaber

World Bank

1818 H Street

Washington, DC 20433 USA

Phone: 202-473-5327

E-mail: mlibhaber@worldbank.org

Energy and Water for Sustainable Living 57

Before After

Project Project 

(1994) (2001)

Water coverage 68% 91%

Sewerage coverage 56% 72%

Domestic metering 30% 99%

Unaccounted water 60% 41%

Water production 160,000 270,000 

capacity m3/day m3/day

Number of clients 84,143 117,194
Summary

The UV Waterworks project uses an innovative ultraviolet water disinfection system to provide safe drinking water

for more than 300,000 individuals in rural and urban communities in Mexico and the Philippines. Over the course of

one year, 175 disinfection units were installed in Guerrero,

Mexico, and in Manila, the Philippines. The community-level

focus of this project and the sustainable clean drinking water

management prospects helped attract almost US$5,000,000 in

private-sector investment.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

Key principles that helped attract private-sector financing

included training of local community members and technicians for installation and maintenance of the systems and

presentation of detailed information about the project and

alternative options to the State Government of Guerrero and

individual communities in Manila.

Disinfection installations in Manila resulted from a partnership between the local branch of the Rotary Club and the

local communities, whereby the Rotary Club facilitated access

to capital through a revolving loan program. This facilitated

the establishment of a sustainable system of access to and

allocation of water through a formal water market. Local community members who became entrepreneurs in the communities served by the clean water own their own kiosks.

The installations in Mexico also focus on strengthening

human capacity for sustainable water management, using a

public-sector approach. The state government purchased the

systems, and a private local entrepreneur distributed, installed,

and provided follow-up maintenance on the systems.

Broad stakeholder participation and empowerment are

evidenced by an emphasis on decision making and authority

at the lowest appropriate level. In Mexico, the local Health

Committee, composed of village women with young children,

is the primary body in charge of supervising the functioning

of the units and coordinating their maintenance. 

The direct involvement and ownership of the units on a

community level in both Mexico and the Philippines reinforce

accountable, participatory, and sustainable management and

minimize opportunities for corruption, making the investment

safer for funding agencies. 

Financing

Total project investment was US$5,690,000. More than

80% came from the private sector, which included the Bendix

Corporation (Philippines) (US$1,000,000), WaterHealth

International (US$3,500,000), and private foundations, such

as Pew, Gilmore, and Rockefeller (US$105,000). Public funding sources included Guerrero State in Mexico (US$750,000)

and United States (US) government agencies (US Agency for

International Development [USAID] and US Department of

Energy [USDOE]) (US$335,000).

Roughly US$440,000 went to research; US$1,7500,000

went to capital costs (175 units at US$10,000 per unit); and

US$3,500,000 went to product development and equipment

manufacturing. Operations and maintenance costs average

$100 per month, per unit.

The Project

Each UV disinfection system can meet the daily drinking

water needs of a community of 2,000. The units were installed

MEXICO AND THE PHILIPPINES

58 Energy and Water for Sustainable Living

Ultraviolet (UV) Waterworks

Location: Rural villages in Guerrero, Mexico, and Manila, 

the Philippines

Type: Water disinfection system

Size: 57,600 gallons per day, per installation; 

175 installations

Funding: Total: US$5,690,000

Private: US$4,605,000

Public: US$1,085,000 

Objective: To provide safe drinking water.

Duration: 1993–1999

Scale: Urban and rural
in areas where centralized water piping is prohibitively expensive for local governments, and chlorination is not feasible

because of an unstable chlorine supply and the impracticality

of having a trained operator continually present.

The units, which have been tested by 11 laboratories in

5 countries, have been installed according to 3 separate

approaches. In Manila, approximately 90 units were installed

privately, on a for-profit basis. The Rotary Club installed

another 10 in the slums in and around Manila through a

revolving loan. The State Government of Guerrero purchased

and installed 75 units in rural villages in Mexico. 

The systems benefit both the residential and commercial

sectors. Families benefit from safe drinking water without

having to boil it. To boil drinking water, 3 kg of scarce fuel

wood is needed per person, per day. Boiling water over a biomass cookstove creates substantial smoke inhalation for the

family, thus making the process economically and environmentally unsustainable on a long-term basis. 

The Manila operation generates income for local entrepreneurs and workers, and the Mexican project creates

employment for local distributors and technicians.

Technical Data

The UV disinfection systems use about 60 W of electricity

for disinfection and about 150 W for pumping (when needed)

for about 4 hours per day. The effectiveness of the systems

exceeds US Environmental Protection Agency (USEPA) and

World Health Organization (WHO) disinfection standards.

Performance Data

The 175 installed units serve more than 300,000 individuals. Compared with boiling water for disinfection, the 

UV systems consume 6,000 times less energy (excluding the

power for the pump).

Rural Mexican communities have reported a 90% decrease

in gastrointestinal disorders since implementation of the new

systems.

Participants and Roles

Lawrence Berkeley National Laboratory (LBNL) performed the technological research, funded by the USDOE,

USAID, and private foundations, including Pew, Rockefeller,

and Gilmore. The Natural Resources Defense Council helped

with field-testing. WaterHealth International, Inc., developed

the product and marketed it, along with Bendix Corporation

in the Philippines and WaterHealth Mexico in Mexico. The

State Government of Guerrero, Mexico, and the Rotary Club

and Bendix Corporation in the Philippines facilitated the 

purchase of the units.

Partner Contacts

Ashok Gadgil

US Department of Energy

Lawrence Berkeley National Laboratory

Mail Stop 90-3058

Berkeley, CA 94720 USA

Phone: 510-486-4651

Fax: 510-486-4651

E-mail: AJGadgil@lbl.gov

Michael Lim

Bendix Corporation

4th Floor, HPL Building

60 Buendia Ave., Makati City

Metro Manila, Philippines 1200

Phone: 63-2-816-8037

Fax: 63-2-816-0983

E-mail: water-works@iname.com

Erwin Ruggeberg

WaterHealth Mexico

Avenida Universo 106, Colonia La Calera

Puebla, Mexico 72590

Phone: 52-2-216-0250

E-mail: erwinrb@prodigy.net.mx

Energy and Water for Sustainable Living 59
Summary

This privately financed project used various energyefficiency improvements to reduce peak demand at a large

Mexican brewery. Significant savings have resulted during the

summer months (roughly US$21,000 per month) when peak

electricity demand increases by six times over winter months

due to product refrigeration requirements. In addition, carbon

dioxide (CO2) offsets resulting from the efficiency improvements are estimated at more than 5,000 tons during the life of

the project. The performance contracting approach helped

secure reasonably priced financing, and transferring carbon

rights from the project to investors helped offset financing

costs and mitigate the risks of new financing methods.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

A key factor that attracted private-sector interest was the

ability of the plant to operate under standard commercial

practices. Activities that helped bring the plant in line with

standard commercial practices include having a management

team independent of the government, improved cost recovery,

and metering systems. Also important were the increased

awareness, knowledge, and skills of sector professionals in

technical areas such as commercial business practices, costbased pricing, and competitive energy market operations. 

Financing

Total project investment was US$175,000. The project

was structured as a shared savings, performance-type contract, with quarterly lease payments made by the brewery to

an energy services company, Empresas ESM SA de CV, on the

basis of actual savings measured by the brewery. The five-year

contract stipulates that Empresas will receive a percentage of

the savings generated by the project over a number of years,

with the brewery obtaining the remaining benefits generated.

At the end of the contract period, the brewery receives 100%

of the benefits generated.

The contract also assigns carbon offsets generated by the

project to Empresas, which in turn, shares ownership of the

carbon credits with Econergy International Corporation (EIC),

a private United States (US) participant, that provided subordinated debt financing, financial advisory services, and technical services related to greenhouse gas (GHG) emissions. The

additional potential value of carbon offsets derived from the

project enables the brewery owner to obtain the services of

EIC as an “in-kind” contribution to the project. In addition, in

anticipation of the future value of the carbon credits, EIC carried many of the transaction costs, accelerating financial closure, which otherwise would have been difficult to complete.

Performance contracting allowed the brewery to budget

for regular lease payments as part of its operations and maintenance budgets, without an up-front outlay of capital. The

approach also allows the project developers (in this case EIC

and Empresas) to "own" the carbon credits generated by the

project as a concession for the reasonably priced financing.

The carbon credits will be aggregated into a larger package

attractive to potential buyers interested in bulk carbon credit

purchases.

The Project

An energy services company, Empresas ESM SA de CV, in

association with a private US firm, EIC, implemented an energy-efficiency performance contract with one of Mexico’s

largest beer companies, Cerveceria Cuauhtemoc Moctezuma

(CCM). The project includes energy-efficiency measures to

MEXICO

60 Energy and Water for Sustainable Living

Cerveceria Cuauhtemoc Moctezuma

Location: Sonora

Type: Energy efficiency

Size: 3,700,000 kWh annual savings

Funding: Total: US$175,000

Private: US$175,000 

Objective: To reduce plants’ energy needs by regulating

electric load. 

Duration: 1998–1999

Scale: Urban
improve electricity load management during peak hours. Total

peak demand is reduced by using electrical equipment for

process cooling on a sequential or staggered schedule rather

than simultaneously and continuously. Brewing process efficiency measures were also installed.

Technical Data

Technologies included controls on motors, fans, pumps,

and other electric devices, as well as improving the efficiency

of backup cooling systems.

Performance Data

The energy-efficiency improvements have produced energy,

emissions, and economic savings that include the following:

annual energy savings of 3,775,752 kWh (or 7% of the brewery’s annual energy consumption), annual carbon savings of

nearly 1,000 tons, and annual economic savings of

US$126,100.

These savings have exceeded the projected savings by

more than 20% on an annual basis and by more than 100%

in some months. The brewery has been making quarterly payments of US$26,340 in accordance with the terms of the performance contract. 

Participants and Roles

Empresas ESM SA de CV was the project developer; EIC

provided subordinated debt financing, financial advisory services, and technical services related to GHG emissions; and

CCM was the “host” facility that benefited from the energyefficiency improvements.

Partner Contacts

Hector Martinez

Empresas ESM SA de CV

Golfo de Vizcaya No. 2200

Fracc. Bernardo Reyes

Monterrey N.L., C.P. 64780, Mexico

E-mail: hmtzv@infosel.net.mx

John Paul Moscarella

President

EIC Boulder Headquarters

3825 Iris Avenue, Suite 350

Boulder, CO 80301 USA

Phone: 303-473-9007

Fax: 303-473-9060

E-mail: moscarella@eic-co.com

Energy and Water for Sustainable Living 61
Summary

After researchers identified pig-farm waste as one of

Southeast Asia’s major environmental problems, faculty from

the National Pingtung University of Science and Technology

(NPUST) and several United States (US) universities, equipment manufacturers, and federal agencies cooperated to establish the ECLWM. At the ECLWM, team members have

designed and built a prototype swine manure-management

system that provides training and demonstrations for innovative, cost-effective waste management technologies that

include recycling of discharge water for irrigation. Currently

focused on swine waste, the prototype will eventually include

poultry and bovine waste management.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

Specific principles that aided in attracting private funding

contributions for the ECLWM included the following: multiobjective decision making about water resources at the basin

scale; strong, effective, and culturally appropriate institutional,

policy, and legal frameworks; effective coordination among

sectors and across multiple geographic and institutional

scales; an emphasis on decision making and assignment of

authority at the lowest appropriate level; and a commitment to

creating and strengthening strong human and organizational

capacity for sustainable and integrated water management in

both the public and private sectors. 

An additional in-place guideline that helped reduce risk

and mobilize financial resources was the consideration of

water as an economic, social, and environmental good,

including the transparent, equitable, and sufficient allocation

of the full costs of water management throughout society.

Financing

Total investment costs were US$3,150,000. Taiwan

invested US$2,000,000 in the construction and operation of

the ECLWM. Five American universities donated engineering

services (an in-kind contribution of US$300,000) to design

the waste treatment system, and several US manufacturers

contributed their equipment (valued at US$500,000) to the

center. The US-Asian Environmental Partnership (US-AEP)

contributed US$350,000 to the project. 

The Project

Over the past several years, countries worldwide have

witnessed a shift from small pig farms to large-scale operations. While production has increased, the supply of land for

proper treatment of swine waste has decreased. Plans for the

TAIWAN

62 Energy and Water for Sustainable Living

Environmental Center for Livestock Waste

Management (ECLWM)

Location: Neipu, Southern Pingtung County

Type: State-of-the-art research facility for waste handling 

and processing

Size: 48,000 L/d

Funding: Total: US$3,150,000

Private: US$800,000

Public: US$2,350,000 

Objective: To advance the state of the art of swine production/waste management to, among other

things, protect drinking water.

Duration: 1997–1999

Scale: Rural
ECLWM began in 1996 after pig-farm waste was identified as

a major environmental problem. Construction began in 1999,

and the center is now housed on the 285-ha campus at

NPUST, Taiwan. 

The ECLWM is a first-of-its-kind, international training

and demonstration center for the Asian region. It develops

and demonstrates innovative, cost-effective technologies that

impact livestock waste policies, comply with regulatory

requirements, and provide technology transfer to producers in

the US and Asia.

Because of the project, various waste management techniques, ranging from simple composting to cutting-edge treatment, have been shared, making the ECLWM an excellent

example in the transfer of environmental protection technology and cost-effective solutions for the future of sustainable

agriculture. 

The ECLWM is not only a partnership between the 

US and NPUST, but also a regional center that engages leading livestock-raising countries in Asia such as Korea, the

Philippines, Thailand, Malaysia, and Hong Kong.

Technical Data

Technologies used at the center include anaerobic

digesters and batch reactors for aerobic processing. Such technologies yield a range of useful end products, including discharge water that meets regulatory standards, fertilizer, compost, and energy. The ECLWM integrates various livestock

waste management systems and technologies to address different situations and conditions.

Performance Data

The ECLWM treats waste (48,000 L/d and 2.2% solids)

from a 240-sow (female pig), farrow-to-finish operation.

By sharing waste management information, the ECLWM

effectively transfers environmental protection technology and

cost-effective solutions for the future of sustainable agriculture. The ECLWM hosts observers from around Asia, showing

them new ways to address similar problems at home. It also

provides for collaborative research and training activities. 

Participants and Roles

The ECLWM is a product of a unique public-private consortium of leading US and Asian government agencies, companies, and universities in the field of waste management.

Taiwan has contributed the bulk of funding for building and

operating the ECLWM. US partners include five universities

(Illinois Institute of Technology, Iowa State University, North

Carolina State University, Oregon State University, and Purdue

University), which donated engineering services; the

Equipment Manufacturers Institute, whose members contributed equipment; the US Environmental Protection Agency

(USEPA), which led the program and provided a major financial contribution; the US Department of Agriculture, which

provided extension and engineering services; and the 

US Department of Commerce. The Environmental Exchange

Program, administered by the Institute of International

Education, provided funding for travel and training, and 

the Environmental Technology Network for Asia Program

provided technical support, including identifying and notifying US companies of the project and inviting them to participate in the endeavor.

Partner Contacts

Dr. Randolph Yamada

US-Asia Environmental Partnership Program

US Agency for International Development 

1300 Pennsylvania Avenue, NW, 4th floor 

Washington, DC 20523 USA

Phone: 202-712-1699

Fax: 202-216-3379

E-mail: ryamada@usaid.gov

Dr. Shan-Da Liu

National Pingtung University of Science and Technology

1 Hseu-Fu Road, Neipu, Pingtung 91027 Taiwan

Phone: 886-8-770-3660

Fax: 886-8-770-2226

E-mail: shanda@mail.npust.edu.tw

Energy and Water for Sustainable Living 63
Summary

Under the Financiamiento de Empresas de Energia en

Centroamerica (FENERCA) Program, five Latin American

countries have integrated environmental and economic sustainability into their energy agendas. Numerous rural communities without access to conventional power grids and urban

communities with unreliable power systems now have access

to clean, renewable, and reliable electricity through the establishment of PV home systems and power generating facilities

using hydro and biomass fuel. Entrepreneurs structured and,

in some instances, initiated operations to produce clean energy

for the region. 

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

A key principle that helped attract private-sector financing was allowing energy facilities to operate under standard

commercial practices. In El Salvador and Honduras, activities

that helped accomplish this included forming a management

team independent of the government and hiring and developing staff with appropriate skills matched to the job. Corporate

restructuring of energy enterprises to support commercial

operations was also important. Other principles that helped

attract private-sector support included broad stakeholder participation in decision making and effective coordination

among sectors, between public and private sectors, and across

multiple geographic and institutional scales. 

Financing

Total project investment was US$4,295,000. E+Co contributed US$625,000 in catalytic seed capital. Public funding

sources included the United States Agency for International

Development (USAID) (US$2,850,000), United Nations

Foundation/United Nations Environment Program (UNF/UNEP)

(US$70,000), and United Nations Development Program/

Global Environment Facility (UNDP/GEF) (US$750,000).

Local Central American financial institutions are considering investing US$2,000,000 in renewable energy projects

and initiatives.

The Project

FENERCA, a USAID initiative, seeks to promote the

development of renewable energy enterprises and projects,

while increasing the capacity of financial institutions and nongovernmental organizations (NGOs) in the region. The program provides enterprise development services, assists in

securing financing, and provides regulatory and policy alternatives to local governments. 

The project has enabled entrepreneurs to structure and,

in some cases, initiate clean-energy-producing projects. As a

result, several rural communities have gained access to clean

energy services. In addition, urban areas have benefited from

increased grid capacity. 

Residential, industrial, and commercial sectors are benefiting through improved health, education, lighting, refrigeration, drinking water, cooking, and recreation.

GUATEMALA, EL SALVADOR, HONDURAS, NICARAGUA, PANAMA

64 Energy and Water for Sustainable Living

Increased Use of Renewable Resources Program 

for Central America

Location: Guatemala, El Salvador, Honduras, Nicaragua, 

and Panama

Type: New power generation using renewable energy sources

Size: 1,200 photovoltaic (PV) home systems in use; 5 MW of

biomass potential power; 2 MW of hydropower

Funding: Total: US$4,295,000

Private: US$625,000

Public: US$3,670,000 

Objective: To develop renewable energy enterprises and

projects.

Duration: 2000–2003

Scale: Urban and rural
Technical Data

Technologies include biomass (sugar cane bagasse) for

increased grid capacity, geothermal, hydro (turbines), solar 

PV (home energy systems), and wind. To date, 1,200 solar

home systems have been installed, providing 375 kWh/d.

Five megawatts of biomass power potential have been developed, and approximately 2 MW of electricity will be generated

through three hydro projects under construction.

Performance Data

Of the approximately 120 proposals identified under the

FENERCA program, 24 received enterprise development

services and 15 have business plans under review. Two enterprises are delivering new clean energy, and three are under

construction.

In Honduras, 18 proposals for renewable energy projects

have been approved by the electric utility, and a local

Honduran financial institution has provided a loan of

US$550,000 to finance the construction of a hydroplant.

Several direct and indirect jobs have been created, road

conditions that facilitate commuting between regions have

improved, indoor use of kerosene has been displaced, and

access to clean energy in rural communities has been provided.

Greenhouse gas emissions have been reduced by the displacement of fossil fuels used to generate electricity.

Comprehensive training sessions on business plan development and renewable energy finance were held to strengthen

the capacity building of entrepreneurs, NGOs, and financial

institutions. As a result, local financial institutions are considering US$2,000,000 in active investments, and funds totaling

US$525,000 have been committed and/or invested by E+Co

in three specific project proposals.

Participants and Roles

FENERCA is an initiative of the USAID being implemented by E+Co, in close partnership with BUN-CA (Biomass

Users Network-Central America).

Partner Contacts

Patricia Flanagan

US Agency for International Development

G/ENV/EET

Ronald Reagan Building, 308

1300 Pennsylvania Ave., NW

Washington, DC 20523-1000 USA

Phone: 202-712-4026

Fax: 202-216-3230

Jose Maria Blanco

Biomass Users Network-Central America

Apdo 573-2050 Montes de Oca

San Jose, Costa Rica

Phone: 506-283-8835

Fax: 506-283-8845

E+Co

383 Franklin St.

Bloomfield, NJ 07003 USA

Phone: 973-680-9100

Fax: 973-680-8066

E-mail: eco@energyhouse.com

Energy and Water for Sustainable Living 65
Summary

Cherepovets, a city with a typical Russian income profile,

has shown how tariff reform can help rehabilitate a city’s

infrastructure, and in so doing, build its economy and

enhance the quality of life for its citizens. The city’s program

demonstrated that prices could be raised to the point of fullcost recovery (plus profits needed to make investments). The

city was able to accomplish this while increasing the overall

level of payments and without significant political opposition.

The Cherepovets example has demonstrated that the public

will support and pay for increased tariffs, despite opinions to

the contrary.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

The tariff redesign was accomplished in a manner that

built consensus within the city government and educated the

population on the need to increase prices (thus reducing public opposition). Part of this effort was a public awareness campaign, including educating children on water conservation

through games in schools.

A key factor that made the reform possible was educating

the general public about the need for raising prices and assuring people that the tariffs would be used to improve the quality of heating and water services. Creating a working group

that included members of different city departments and the

general public was critical for successful reform. The process

for increasing prices was transparent and based on consensus. 

The following principles also contributed to the ability to

finance system improvements with no outside funding: (1) a

sound and rational tariff policy, which included the introduction of a dual tariff (network charge plus actual consumption

payments) that improved and stabilized the financial situation

of municipal utilities; (2) a tariff restructuring that substituted

subsidies for all citizens with subsidies only for the truly

needy; (3) gradual improvement of the market environment

in the municipal housing and public utility services sector

through tenders for renovation of public buildings and for

technical maintenance of residential buildings; and (4) development of private contractors, who, incidentally, are expanding their activities to include reducing the amount of heat

wasted in area schools.

Financing

Total investment costs were about US$1,600,000. With

no outside money, the City of Cherepovets raised water tariffs

not only enough to cover costs, which would have been a

success in itself, but also enough to generate revenues for

investment. Investments funded by the increased tariffs

include:

• A new water treatment facility (investment of 

40.5 million rubles)

• Three new, modern pumping stations (1.5 million

rubles)

• Twenty-four kilometers of old, leaking pipes replaced

with new pipes (1.6 million rubles)

• More than 1,100 water meters installed in buildings citywide, enabling consumption-based billing (investment of

6.4 million rubles).. 

The Project

The City of Cherepovets, in Northwest Russia, has implemented a wide-ranging tariff reform and water-efficiency 

RUSSIA

66 Energy and Water for Sustainable Living

Cherepovets Water-Efficiency/Tariff Reform Program

Location: City of Cherepovets

Type: Tariff reform and water efficiency

Size: 1,100 water meters, 24 km of pipes, three pumping 

stations, new treatment facility

Funding: Total: US$1,600,000 — all from increased water

tariffs

Objective: To improve the financial situation of the utility,

enabling it to invest in system improvements.

Duration: 1998–2000

Scale: Urban
program that has proven to be a model for Russia. The city

took two very innovative steps. First, it rationalized subsidies

on the basis of income. As a result, the poorest people pay no

more than 10% of their income to utility payments, and those

who can afford to pay 100% receive no subsidies from the

municipality. Second, the city used the additional revenue to

implement a major water-efficiency investment program,

which invests in both the water supply system and in end user

buildings. The results of these efforts include the following.

The city raised water tariffs enough to cover costs and to

invest in water-efficiency projects. These projects included a

new water treatment facility, 3 new pumping stations, the

replacement of 24 km of old, leaking pipes with new pipes,

and the installation of more than 1,100 water meters in buildings all over the city so that water can be billed on the basis

of consumption.

The city reduced leaks in the supply network from 25 to

10% in four years. It also reduced the amount of electricity

required to pump 1 m3 of water through the system by 12%.

Before the initiative, 75% of the network’s pipes were

more than 25 years old (intended lifetime is 20 years). Today,

only 25% of the pipes are more than 25 years old.

Technical Data

The technologies used included water meters, new water

pipes, and new water treatment technologies.

Performance Data

The project has produced revenues that the city has

invested to provide 3 new pumping stations, a water treatment

station, and 1,110 water meters in buildings across the city.

The tariff reform and subsequent investment have

reduced the amount of electricity required for water pumping

by 12% per cubic meter pumped. 

Participants and Roles

The Cherepovets Tariff Design Group, which consisted of

managers from several key city departments, relevant committees of the city council, and members from the general public,

was responsible for the tariff program and water-efficiency

investments.

Partner Contact

Svetlana Sorokina 

Center for Energy Efficiency

E-mail: svetlana_sorokina@mtu-net.ru

Energy and Water for Sustainable Living 67
Summary

Under this project, Shengli Oil Company, the second

largest oil company in China, was identified as a potential

project host for energy-efficient industrial motors. Ten oil field

motor retrofits were demonstrated, and savings were greater

than expected. As a result, Shengli Oil recently decided to

expand the energy-efficient motors program and has set aside

US$60,000 to add more energy-efficient motors in its system.

On the basis of this success, other oil companies are now

evaluating their systems for use of energy-efficient motors.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to 

justice and enforcement of laws

Chinese research institutes helped create the standards that were integral to the

design of national energy-efficient motors

certification programs and efficiency standards. Such standards allowed motor manufacturers to differentiate their motors as

efficient, able to produce real savings, and

perform as expected.

Capacity-building activities that

helped attract private financing included

dissemination of best practices and participation in international forums and workshops to increase the awareness, knowledge, and skills of sector professionals.

Increased public knowledge and participation in energy

decision making through professional training and outreach

programs also helped attract private-sector interest. 

Financing

Project investment for the first phase (retrofitting of 

10 motors) was US$15,000 and was privately financed by

Shengli Oil Company. On the basis of the success of phase

one, Shengli has committed an additional US$60,000 to

implement more energy-efficient motors in its system. 

The Project

Shengli Oil Company has been interested in implementing technologies and policies that improve cost efficiency. It

had already implemented demand-side management in many

technologies, but not in motors. The company has more than

14,000 motors installed, consuming 14.2% of total production cost. Retrofitting 10 motors was so cost-effective that

Shengli’s parent company, China Petroleum and Chemical

Corporation (SINOPEC Corp.), requested that all 7 of its subsidiary companies assess their potential for similar energyefficient retrofits and report back with proposals to implement

these retrofits.

Industrial, commercial, and utility sectors are benefiting

from the project. 

Technical Data

The high-efficiency motors pump oil from

the ground and are fueled by conventional

power generation through the utility grid.

(About 70% of China’s power is generated

using coal.) After retrofit, the motors are still

fueled from the power grid but are more efficient and use less power.

Performance Data

The new motors use about 9.6% less

energy than the older motors. 

If high-efficiency motors replaced all of

Shengli Oil Company’s broken motors, expected

savings would be US$4,600,000 per year.

CHINA

68 Energy and Water for Sustainable Living

US/China High-Efficiency Motors 

Demonstration Project

Location: Oil fields in China

Type: Efficient industrial motors

Size: 10 motor retrofits

Funding: Total: US$75,000

Private: US$75,000 

Objective: To increase efficiency of industrial motors.

Duration: 2000–2002

Scale: Rural
The estimated payback period for the retrofit is about

seven months.

Participants and Roles

Shengli Oil Company’s Demand-Side Management Office

identified and implemented the project. The United States

Environmental Protection Agency (USEPA) and the China

State Development Planning Commission manage the US/China

Technology Cooperation Agreement Pilot Project, which

sponsored the demonstration project. The US Department of

Energy’s (USDOE’s) National Renewable Energy Laboratory

(NREL) and China’s Tsinghua University coordinate technology

activities. The International Institute for Energy Conservation

led technical assistance and evaluation efforts. The USDOE

helped provide technical assistance in monitoring, evaluating,

and demonstrating the energy and cost savings.

Partner Contacts

Paul Schwengels

US Environmental Protection Agency

1200 Pennsylvania Ave., NW

Washington, DC 20460 USA

Phone: 202-564-3487

Fax: 202-565-2155

E-mail: schwengels.paul@epa.gov

Peter Liu

International Institute for Energy Conservation

66 Nanlishi Lu

Beijing 100045, China

Phone: 86-10-6804-2450

Fax: 86-10-6802-0990

E-mail: peterliu@public.bta.net.cn

Debra Lew

US Department of Energy

National Renewable Energy Laboratory

1617 Cole Blvd.

Golden, CO 80401 USA

Phone: 303-384-7522

Fax: 303-384-7419

E-mail: dlew@nrel.gov

Energy and Water for Sustainable Living 69
Summary

By using solar water distillers, sunlight (an abundant

resource in Mexico) is used to produce drinking water 

(a scarce resource). The solar water distillation technology for

the project was designed to be manufactured locally, thereby

expanding the industrial capacity of the private sector. Local,

private-sector participation supports the sustainability of this

energy technology, which simultaneously gives households

access to clean drinking water and creates wealth and wellbeing. 

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public access in support of sustainable development and

public participation, coordination, and partnerships

Principles that attracted financial support for the project

included hiring people with the appropriate skills to match

job requirements and developing those skills as needed.

Partnerships, exchanges, and outreach programs also have

helped enhance communication and education on water 

use issues. 

Another principle that has attracted private-sector financial support has been broad stakeholder participation and

empowerment in water resources decision making across 

sectors and social/cultural groupings.

Financing

Total project investment is US$182,000. The Border Pact

provided US$10,000 of private funds. The United States

Environmental Protection Agency (USEPA) contributed

US$100,000, and the US Department of Energy (USDOE)

National Border Technology Partnership Program and the

Sandia/New Mexico Small Business Assistance Program provided US$52,000 and US$20,000, respectively. 

The Project

The installation of household-sized solar distillation units

capable of providing 1 to 2 gallons of drinking water per day

helps eliminate or reduce reliance on expensive bottled water. 

The project benefits industrial and commercial sectors by

capitalizing on the existing capacity in the regions. The distillation units come from local suppliers and manufacturers.

The residential sector gains financial savings and

improved health through safe and readily available drinking

water. 

Technical Data

The technology consists of family-sized, solar thermal

distillation units that are capable of generating 1 to 2 gallons

of drinking water per day. 

Performance Data

Forty households are using the units and saving money,

because they no longer need to buy bottled drinking water. 

MEXICO

70 Energy and Water for Sustainable Living

Improving Manufacturability and Reliability 

of Solar Water Distillers

Location: Juarez, Columbus, and Palomas

Type: Water technology development and deployment

Size: 1 to 2 gallon-per-day distillation units

Funding: Total: US$182,000

Private: US$10,000

Public: US$172,000 

Objective: To address water quality problems and create

business opportunities.

Duration: 2001–2002

Scale: Urban and rural
Four people have been trained to manufacture the solar

distillation units. 

Participants and Roles

Sandia National Laboratories, the University of Texas – El

Paso, New Mexico State University, SolAqua, Inc., and El Paso

Solar Energy Association were all involved in the project. The

US-Mexico Bi-National Laboratory Initiative connected the

key players to develop and implement the solar water distillation project.

Partner Contact

Vipin Gupta

Sandia National Laboratories

University of Texas – El Paso

500 W. University Ave.

Burges Hall, Room 321

El Paso, TX 79968 USA

Phone: 915-526-2753

Fax: 505-284-4778

E-mail: vpgupta@sandia.gov

Energy and Water for Sustainable Living 71
Summary

A water utility that was losing 30% of its daily production to leaking pipes teamed with a private environmental

technology provider to pilot a pipeline leak-detection system.

Three of the leaks detected with the new system accounted for

losses of 60,000 m3 per year, or US$24,000. The pilot project

demonstrated the value of private- and public-sector teaming

for identifying cost-effective responses to energy inefficiencies.

The success of the pilot project has paved the way for a systemwide US$40,000,000 leak-abatement program.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

A key principle that helped attract private-sector financing was the commitment to creating and strengthening

strong human and organizational capacity for sustainable

and integrated water management, in both the public and

private sectors.

Another important principle was the consideration of

water as an economic, social, and environmental good,

including acknowledgment of the full costs of water management and water services, and transparent, equitable, and sufficient allocation of those costs throughout society (through

such means as tariffs, subsidies, and taxes). 

Financing

Total project investment was US$118,074. A small

United States (US) civil and engineering firm provided

US$71,254 in private funds, and the remaining US$46,820

came from a United States Agency for International

Development (USAID) EcoLinks grant.

Capital costs were US$20,000; technical assistance costs

were US$98,074.

The Project

Regia Autonoma Judeteana de Apa-Canal Iasi (RAJAC), 

a local water utility company established by the Iasi City

Council in 1991, is responsible for providing water to the city

and for operating the municipal sewage system. It serves more

than 550,000 inhabitants and 2,100 institutions with a 600-km

distribution network. RAJAC loses about 16,000,000 m3, or

30%, of its water production annually, wasting potable water,

treatment capacity, energy, and money. 

As a first step in a proposed program to cut those water

losses by at least half, RAJAC teamed with an American technology provider, Cavanaugh & Associates, using a USAIDsponsored EcoLinks grant, to develop, implement, and evaluate

a pilot leak-detection and abatement program. RAJAC provided

water-system maps, and Cavanaugh trained RAJAC personnel

in the use of leak-detection equipment. The project team 

prepared a list of conservation measures to raise consumer

awareness. Other utility companies were informed of project

successes, paving the way for establishing a US$40,000,000

systemwide leak-abatement program.

The project increases the operating efficiency of the utility,

and residential, commercial, and industrial sectors benefit

from reduced water costs.

Technical Data

Technologies included Doppler leak-detection equipment,

data loggers, and computer software. Local utility personnel

are easily trained to operate the equipment, which is useful not

ROMANIA

72 Energy and Water for Sustainable Living

Leak Abatement in Romania

Location: City of Iasi

Type: Water delivery efficiency

Size: 60,000 m3 of water saved per year

Funding: Total: US$118,074 

Private: US$71,250

Public: US$46,820 

Objective: To develop, implement, and evaluate a water

pipe leak-detection system.

Duration: 1999–2000

Scale: Urban
only for water utility companies, but also for district-heating

enterprises and other large water-transportation networks.

Performance Data

Roughly US$24,000 and 60,000 m3 of water are saved

annually because of this pilot project. The payback period for

the equipment during the pilot project was less than one year.

Potential savings of 8,000,000 m3 and US$3,000,000 per

year are expected once the US$40,000,000 infrastructure

project is in place.

Consumer water conservation measures are promoted

through media campaigns.

Discussions are underway to develop an autonomous

company providing leak-detection systems to other water

companies in Romania. 

The project has generated interest in applying the leakdetection technology to the Iasi District Heating Company,

and requests to demonstrate the technology in Bucharest,

Poland, and Moldova have been received. 

Participants and Roles

Cavanaugh & Associates teamed with RAJAC to conduct

the pilot. Fluid Conservation Systems, the manufacturer of

the leak-detection equipment, provided supplementary equipment training. 

Partner Contacts

Mihai Dorus

Regia Autonoma Judeteana de Apa-Canal Iasi Str. 

Mihai Costachescu No. 6

Iasi, Romania

Phone: 40-32-214-170

Fax: 40-32-214-170

E-mail: dorusm@rajac.dntis.ro

Steve Cavanaugh

Cavanaugh & Associates, P.A.

8064 North Point Blvd., Suite 102

Winston-Salem, NC 27106 USA

Phone: 336-759-9001

Fax: 336-759-1005

E-mail: stevec@cavanaughsolutions.com

Energy and Water for Sustainable Living 73
Summary

Integrating solar renewable energy, advanced batteries,

and high-quality electronic control systems with existing

diesel generators in remote villages will provide 24-hour-perday electricity and significantly reduce diesel fuel usage, costs,

and noxious air emissions. Rural communities that are not

connected to a power grid will no longer have to depend on

diesel generators, which require frequent maintenance, use

expensive fuel, and release noxious emissions, to produce

only a few hours of electricity per day. Remote Area Power

Supply (RAPS) systems will help alleviate poverty, improve

lifestyles, and improve environmental conditions.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

The Peruvian Rural Electrification Program and the

Peruvian tariff treatment in the Loreto region helped attract

private financing by allowing utilities to operate under standard commercial practices. Thus, management teams can

function independently of the government, and staff with

skills matched to the job can be hired and trained. 

Also attracting private investment were activities to

increase public participation in energy decision making. These

included stakeholder partnerships and exchanges and participation in international forums to increase energy-sector professional knowledge of energy practices. Public input on 

pricing and payment issues was solicited, and the results were

incorporated into energy policies. 

Financing

Total project investment was US$2,740,500. Private

funding sources included Common Fund for Commodities

(US$600,000), Australian International Greenhouse

Partnership (US$105,000), Solar Energy Industries

Association (SEIA) (US$18,000), Ferreyros (Peru)

(US$80,000), and International Lead Zinc Research

Organization (ILZRO) (US$700,000). Electro Oriente (Peru)

provided an in-kind loan of US$713,000.

Public funding sources included Regional Government of

Loreto (US$385,000), Global Environment Facility (GEF)

(US$747,500); United States Department of Energy (USDOE)

(US$80,000), and National Association of State Development

Agencies (NASDA) (US$25,000).

The Project

The objective of the project is to help ensure sustainable

development of communities by providing electricity to

increase income-generating activities. By incorporating solar

renewable energy, advanced batteries, and high-quality electrical control systems with existing diesel generation, RAPS systems will provide 24-hour-per-day electricity and greatly

reduce diesel fuel use. Diesel fuel reductions mean lower fuel

costs and reduced environmental damage.

Sustainability of the RAPS system is based on identifying

and promoting income-generating activities for community

members that are compatible with the ancestral habits of the

PERU

74 Energy and Water for Sustainable Living

Renewable Energy Systems in the Peruvian 

Amazon Region (RESPAR)

Location: Indiana and Padre Cocha in Loreto, Peru

Type: Rural community electrification

Size: Indiana, 600 kW/d; Padre Cocha, 300 kW/d

Funding: Total: US$2,740,500

Private: US$1,503,000

Public: US$1,237,500 

Objective: To provide 24-hour electricity to rural 

communities.

Duration: 2002–2004

Scale: Rural
inhabitants, rational use of natural resources, and minimal

energy consumption. Local utilities will benefit with the

increased business from the communities.

The project development period is July 2002 to 

July 2004. Currently, equipment is being transferred to and

installed in the village sites.

Technical Data

The RAPS technology consists of two to four modules,

each capable of 150 kWh per day (rps-150), designed to

operate in parallel, with the capacity to provide electric energy

of 300 to 600 kWh per day. The systems consist of a battery

bank of 750 Ah to 240 VDC, a power conversion system of

40 kW, and an assembly of photovoltaic (PV) panels with a

maximum capacity of 50 kWp. 

Also included is a control system to monitor the voltages,

currents, and temperatures of the battery bank; current and

voltage of the solar panel assemblies; ambient temperature;

and other system parameters to determine operating conditions and the need for modification. Indiana will have four

modules and Padre Cocha will have two. A generator will be

included as an additional power source for each of the two

systems. 

The RAPS system includes recycling plans. The battery

installer will remove and send the old, lead-containing batteries

to a recycling center. All batteries will be replaced at the same

time and will be removed from the community in an environmentally appropriate manner. The financial incentive for recycling is the significant salvage value of the used batteries.

Disposal of used lubrication oil from remote diesel generators

has traditionally been a problem. However, the reduction in

hours of RAPS generator operations means that only 4 oil

changes are required a year as opposed to the usual 35. Smaller

amounts of used oil production mean that disposal can occur

once a year during fuel delivery or maintenance visits.

Performance Data

Diesel fuel savings of 466,000 L/yr are expected. Actual

performance data are not yet available.

Participants and Roles

In July 1997, ILZRO, the SEIA, the Direccion Ejecutiva

de Proyectos (DEP) of the Ministry of Energy and Mining

(MEM) of Peru, and, later the Regional Government of Loreto,

signed a Memorandum of Understanding to collaborate on

reducing diesel fuel dependence by using a PV-battery-diesel

hybrid system.

Key participants include the following: GEF focal point

in Peru (Consejo Nacional del Ambiente [CONAM]); United

Nations Development Program (UNDP)-Peru; MEM and DEP

in charge of the National Electrification Plan; Solar Energy

Industries Association (Solar Energy Research and Education

Foundation [SEREF]/SEIA); the Regional Administration of

Loreto (Consejo Transitorio de Administración [CTAR]-

Loreto); the National Fund for Social Programs (Foncodes);

Solarex/Ferreyros; Doe Run Peru; Indiana and Padre Cocha

communities; and local nongovernmental organizations.

Partner Contacts

Jerome F. Cole, President

International Lead Zinc Organization

2525 Meridian Parkway

PO Box 12036

Research Triangle Park, NC 27709 USA

Phone: 919-361-4647

Fax: 919-361-1957

E-mail: jcole@ilzro.org

Rosalind Volpe, D.PH.

International Lead Zinc Organization

2525 Meridian Parkway

PO Box 12036

Research Triangle Park, NC 27709 USA

Phone: 919-361-4647

Fax: 919-361-1957

E-mail: rvolpe@ilzro.org

Energy and Water for Sustainable Living 75
Summary

This combined heat and power project in Northeast

China will show that existing agricultural residues can be converted into a clean, modern energy carrier that improves the

lives of local villagers. The production of gas for winter heating and the generation of electricity for sale to the local grid

makes the project economically attractive and is expected to

lead to project replication.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

Activities that have increased awareness, knowledge, and

skills of sector professionals in commercial business practices,

which, in turn have helped attract private financing, include

awareness and educational workshops for decision makers,

skills-oriented training for decision makers and staff, study

tours, stakeholder partnerships and exchanges, dissemination

of best practices, and participation in international forums

and workshops.

Increased public knowledge of, and participation in,

energy decision making — a central element of energy-sector

reform efforts — has been facilitated through programs in

professional training.

Financing

Total project investment from all sources is

US$1,994,000, of which US$734,000 is for capital costs.

Private equity, in the amount of US$254,000 comes from

Hechengli Village Enterprise, a local community group. Other

funding comes from the United Nations Development

Program (UNDP), via a US$480,000 equipment grant, and

US$760,000 in UNDP technical, business plan, and impact

assessment support. The Jilin Environmental Protection

Bureau is providing $500,000 for design, training, evaluation,

and dissemination.

The Project

The project will demonstrate the technical, economic,

and market viability of a modern biomass gasification system

to provide cooking gas, heat, and electricity to village communities in China. 

Jilin Province is an ideal location for the project, because

it has abundant biomass resources, the need for rural development, an emerging industrial base, and the government commitment needed to ensure sustained growth of such a new

industry. The project was designed to be consistent with

UNDP’s corporate policy on sustainable energy, which promotes the provision of sustainable energy services as a means

of addressing multiple social, economic, and environmental

bottlenecks to human development.

The residents of Hechengli Village will receive clean gas

for heating and cooking, which will reduce indoor air pollution and its associated adverse health impacts. The gas will be

two-thirds the price of liquefied petroleum gas (LPG) and will

compete with coal. Outdoor air pollution will be improved

because less surplus agricultural residues will be burned in

the fields. The village standard of living will be improved, and

women and children will have more time available for productive activities. The project will create jobs, and the sale of

biomass residues to the project will generate revenue for the

poorer villagers. The electric company will benefit from this

distributed electricity generation from a renewable resource.

CHINA

76 Energy and Water for Sustainable Living

Modernized Biomass Utilization

Location: Jilin Province, Hechengli Village

Type: New construction of a biomass gasification combined

heat and power project

Size: 14,000 m3 of gas per day for cooking and heating and

200 kW of electricity

Funding: Total: US$1,994,000

Private: US$254,000

Public: US$1,740,000 

Objective: To provide cooking gas, heat, and electricity to

village communities in China.

Duration: 2000–2004

Scale: Rural
Construction is nearing completion, and following a 

trial production period, full operation is scheduled for

December 2002.

Technical Data

The project will use thermochemical gasification of crop

residues (corn stalks and leaves) to provide a clean-burning

gas for cooking, heating, and electricity generation. The plant

will consist of biomass preparation and feeding equipment,

three gas generation systems rated at 600 m3 of gas per hour,

a 500-m3 gas storage tank, a piping distribution network to

the households, and a 200-kW gas-engine generator interconnected to the electricity grid. All systems will use commercially

proven equipment.

Performance Data

The project will meet the entire cooking and heating

demand for the village, which consists of 224 households.

The net electric output, after plant loads are met (about 

140 kW), will be sold to the local electricity grid.

The project will generate about US$140,000 of revenue

from the sale of gas, electricity, and ash fertilizer. It will

employ about 15 villagers, who will be trained in the operation and maintenance of the system, and it will pay about

US$25,000 to local farmers for the biomass residues.

A reduction of about 2,400 tons of carbon dioxide (CO2)

equivalent warming potential is expected due to reduced coalbased electricity generation and the elimination of traditional

biomass combustion for cooking and heating.

Participants and Roles

The project sponsors are the Jilin Environmental

Protection Bureau and Hechengli Village Enterprise. The

UNDP, with funds from the UN Foundation, is providing a

grant to the project. Clean Energy Commercialization is providing technical and business planning support, and

Princeton Environmental Institute is supporting the assessment of the project benefits.

Partner Contacts

Xiaodong Wang, Ph.D.

United Nations Foundation Senior Program Officer 

for Climate Change

1301 Connecticut Avenue, NW

Washington, DC 20036 USA

Phone: 202-887-9040

Fax: 202-887-9021

E-mail: xwang@unfoundation.org

Dr. Pat DeLaquil

Clean Energy Commercialization LLC

1816 Crosspointe Drive

Annapolis, MD 21401 USA

Phone: 410-224-5864

Fax: 410-224-8788

E-mail: delaqui@attglobal.net

Eric D. Larson, Ph.D.

Research Engineer

Princeton Environmental Institute

Princeton University

Guyot Hall, Room 26

Princeton, NJ 08544-1003 USA

Phone: 609-258-4966

Fax: 609-258-1716

E-mail: elarson@princeton.edu

Energy and Water for Sustainable Living 77
Summary

The Clean Cities Santiago Program is a public-private

partnership in cooperation with the United States Department

of Energy (USDOE) for the deployment of AFVs. Establishing

a dialogue between fuel suppliers, equipment manufacturers,

and regulators led to the conversion of 500 taxis to natural

gas, the deployment of 12 natural gas buses, the construction

of 6 natural gas refueling stations, and the potential for building a natural gas refueling station at the Arturo Merino

Benitez International Airport.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

A key principle that helped attract private financing was

the convening of fuel providers, natural gas equipment manufacturers, fleet operators, policy makers, and legislators to

deploy natural gas vehicles in Santiago. Activities such as

awareness and educational workshops, skills-oriented training

for decision makers and staff, study tours, dissemination of

best practices, incorporation of public input, and participation

in international forums and workshops helped increase the

awareness, knowledge, and skills of sector professionals in

commercial business practices.

Also important were legal and regulatory frameworks

covering tariffs and the willingness of the public sector to

establish subsidies and incentives promoting natural gas vehicles. A comprehensive energy law that meets global norms

and standards characterized by basic policies and priorities

and a framework for private investment also helped attract

financing.

Government mandates, policies, and strategies combined

with local private-public partnerships created a demand for

vehicles using alternative fuels and infrastructure. Public support for sustainable development was facilitated by educating

citizens so that they could help shape the policies, markets,

and institutions that affect their lives; and by implementing

state-of-the-art systems for collecting, demonstrating, and

exchanging information to increase the impact of education,

communication, and outreach strategies. 

Financing

Total project investment was US$1,587,800. Of this,

US$210,000 was privately funded via a METROGAS subsidy

for light-duty conversion kits. (METROGAS is the monopoly

distributor of natural gas in Santiago.) In addition, several private companies funded portions of training visits. Publicsector contributions included a US$1,250,000 subsidy from

the Chilean National Development Corporation (CORFO) for

compressed natural gas (CNG) buses, and US$127,800 from

the USDOE’s Clean Cities International Program. 

The Project

Santiago had reached critical levels for carbon monoxide

(CO) and particulate matter. In 1995, the Clean Cities

International Program began sharing information on reducing

emissions through the use of natural-gas-fueled vehicles with

the City of Santiago. It helped develop the Clean Cities

Santiago Coalition, a group comprised of national and local

CHILE

78 Energy and Water for Sustainable Living

Clean Cities Santiago Program

Location: Santiago

Type: Alternative fuel vehicles (AFVs)

Size: 500 taxis,12 buses, 6 refueling stations

Funding: Total: US$1,587,800

Private: US$210,000

Public: US$1,378,000 

Objective: To reduce vehicular emissions through the use

of alternative fuels.

Duration: 1995–present

Scale: Urban
governments, natural gas utilities, manufacturers,

and fleet managers with the local goal of reducing

emissions from mobile sources. The coalition sought

to develop and use natural gas-fueled vehicles,

which would emit less reactive hydrocarbons, CO,

nitrogen oxides (NOx), and particulate matter than

diesel and gasoline vehicles.

The Chilean National Environment

Commission for the Region of Santiago (CONAMA

RM) took over and now administers the Clean Cities

model; to date, 500 taxis have been converted from

gasoline to natural gas, 9 diesel buses have been

retired and replaced with CNG, and 3 diesel buses

have been converted to CNG. In addition, 6 refueling stations now provide natural gas for vehicles.

All sectors reap health benefits associated with

switching from diesel or gasoline fuel to cleanerburning natural gas. Local reservoir water quality

has improved due to reduced pollution from the converted

vehicles affecting the river running through Santiago (el Rio

Mapocho). The new transportation market also benefits the

natural gas distribution system in Chile.

Technical Data

Technologies used in the project include CNG buses and

conversion kits, and a refueling structure for natural gas.

Performance Data

Although not quantified, the project is helping to

decrease CO, NOx, ozone, particulate matter, and greenhouse

gas emissions in the Santiago area. 

Roughly 500 drivers/mechanics and several airport officials have been trained on the safety, maintenance, and environmental benefits of natural gas vehicles.

Participants and Roles

CONAMA RM administers the project. METROGAS and

CORFO provided subsidies. The USDOE provided technical

experts to ensure an effective and safe natural gas vehicle program, conducted public outreach, and organized reverse trade

missions. It also provided technical assistance to the Arturo

Merino Benitez International Airport on the potential siting of

a natural gas refueling station. Blue Energy provided technical

assistance, the Gas Technology Institute (GTI) helped with

logistics for technical visits, and Science Applications

International Corporation (SAIC) coordinated reverse trade

missions. 

Partner Contacts

Marcy Rood

US Department of Energy

1000 Independence Ave., SW

Washington, DC USA 20585

Phone: 202-586-8161

Fax: 202-586-1558

E-mail: marcy.rood@hq.doe.gov

Marcelo Fernandez

Comision Nacional del Medio Ambiente 

Region Metropolitana 

MacIver 283 Piso 7, Santiago Centro

Codigo Postal 6500777

Phone: 562-441-0340

Fax: 562-441-0356

E-mail: mfernandez.rm@conama.cl

Julie P. Doherty

Science Applications International Corporation

8301 Greensboro Dr., M/S E-5-7

McLean, VA 22102 USA

Phone: 703-676-5253

Fax: 703-827-9514

E-mail: julie.p.doherty@saic.com

Energy and Water for Sustainable Living 79
Summary

GSC is a tool and a process that allows corporations to

reach out to small- and medium-sized enterprise suppliers 

to improve environmental practices and to identify energy 

and water conservation opportunities. The GSC has led to

improved environmental conditions and more efficient use of

scant natural resources. Improved product quality, increased

productivity, and involvement and participation of top management in environmental matters have also resulted from 

the program. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity-building and informed decision making

• Public participation in, and support of, sustainable 

development

Capacity-building activities that helped promote 

commercialization and attract private financing included the

formation of a management team independent of the government, improved cost recovery, and installation of management

information systems. Informed decision-making activities that

helped increase the awareness, knowledge, and skills of sector

professionals included awareness and educational workshops

for decision makers, skills-oriented training for decision makers and staff, stakeholder partnerships and exchanges, dissemination of best practices, and increased knowledge in the

management of private-sector involvement. Increased public

access in support of sustainable development included programs in professional training and citizen education, institutionalizing sustainable education and communication programs, and monitoring strategies to measure the impacts of

these programs. 

Financing

From 1997 to 2001, total project investment is estimated

at US$1,300,000. During that time, the United States-Asia

Environmental Partnership (US-AEP) awarded approximately

US$300,000 in grants, which leveraged matching resources

amounting to roughly US$1,000,000. Although the contributions of private-sector companies were not shared with the

project sponsors (US-AEP and US Agency for International

Development [USAID]), the following companies are illustrative GSC champions: United Technologies Corporation, Ford

Motor Company Philippines, Nestle, Philippines Shell,

Unilab, and the Philippine National Oil Company.

Implementing environmental controls and environmental

management systems (EMSs) can be prohibitively expensive

for small enterprises. Several companies and corporations are

helping reduce those barriers by providing subsidized loans

or other financial support. A continuing benefit of the project

is its ability to leverage extensive partner resources from much

smaller amounts of project funds.

The Project

Supply-chain management refers to the process by which

buyer companies require a certain level of environmental performance from their manufacturing partners and vendors.

When a company imposes environmental conditions on the

products and processes of its suppliers, it is called GSC.

Companies participating in GSC leverage scant resources

to reach small- and medium-sized enterprises in developing

countries to increase energy and water conservation and

improve environmental practices. Through various environmental and cost-saving initiatives, including “green” procurement, enhancing regulatory environmental compliance, and

INDONESIA, MALAYSIA, VIETNAM, INDIA, PHILIPPINES, THAILAND

80 Energy and Water for Sustainable Living

Greening the Supply Chain (GSC)

Location: Indonesia, Malaysia, Vietnam, India, Philippines,

Thailand

Type: Technical support for increased energy and water 

conservation

Size: 3,000 suppliers

Funding: Total: US$1,300,000

Private (in-kind estimated): US$1,000,000

Public: US$300,000 

(for 1997-2001) 

Objective: To achieve energy and water conservation in

small- and medium-sized enterprises.

Duration: 1994–present

Scale: Urban
implementing an EMS, private-sector companies are starting

to work on environmental initiatives with their suppliers to

“green their supply chain.” In the process, many of these

companies have found that GSC not only generates significant

environmental benefits, but also offers opportunities for cost

containment, enhanced quality, and strategic and competitive

advantage.

The project identifies corporations who champion the

values of GSC, collaborates with US and Asian companies to

create environmental outreach programs with suppliers, and

delivers technical assistance and training to Asian industry

associations that provide expertise to small- and mediumsized enterprise supplier companies on environmental protection and energy and water conservation.

Increases in efficiency, competitive advantages through

innovation, improved product quality, and improved public

images resulting from the program have benefited industrial,

commercial, and utility sectors.

Technical Data

The International Organization for Standardization (ISO)

14001 EMS and various supplier environmental management

activity protocols have been used extensively in this project.

These include outreach, education, and training to identify

water and energy conservation opportunities.

Performance Data

To date, more than 3,000 suppliers (mostly small- and

medium-sized enterprises) were reached that could not have

been reached without the program. A typical example is a

case in which one GSC company visited six industrial supplier sites ranging in size from tiny enterprises with four

employees to enterprises with several hundred employees.

The visits helped identify energy and water conservation

measures that provided opportunities to save money and

improve industrial environmental performance.

Dollar savings that result from energy audits at sites vary,

but generally average 5 to 10%.

Improved environmental protection, resource efficiency,

and water and energy conservation have had positive though

unquantified impacts on surrounding communities.

Participants and Roles

US-AEP and USAID have sponsored the program, completing several discrete GSC activities in India, Malaysia, the

Philippines, Indonesia, Thailand, and Vietnam. Many privatesector companies have provided financial and in-kind support

to improve the environmental standards of small- and medium-sized enterprises.

Partner Contacts

Judith Barry

US-AEP Asia Near East Bureau

US Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20006 USA

Phone: 202-712-5518

Fax: 202-216-3379

E-mail: jbarry@usaid.gov

Conchita Silva

US-AEP Technical Services Support

US-AEP/Clean Technology Contract and 

Environmental Management

Sagitarrius Building, 12th Floor

HV de La Costa Street, Salcedo Village 1227

Makati, Philippines

Phone: 632-816-6576

Fax: 632-818-6470

E-mail: asiactem@mozcom.com

Energy and Water for Sustainable Living 81
Summary

Increased operating efficiencies through the use of

advanced technologies at coal-fired power plants generating

20,000 MW are reducing greenhouse gas (GHG) emissions

and narrowing the gap between power supply and demand.

The project identified the potential for a 2% improvement in

heat-rate efficiency. Technologies are being implemented to

reduce fuel costs and, consequently, the price of electricity.

Efficiency improvements have reduced carbon dioxide (CO2)

emissions by 1,840,000 tons per year.

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public access in support of sustainable development and

public participation, coordination, and partnerships

Activities that support capacity building and informed

decision-making principles, which in turn help attract private

financing, have included study tours, demonstration activities,

seminars, and participation in international forums and workshops, which help to increase awareness of commercial business practices, competitive energy market operations, and

managing private-sector involvement. 

A central element of energy-sector reform efforts is

increased public knowledge of, and participation in, energy

decision making, which has been enhanced by professional

training and outreach programs.

Government policies are being modified to support the

introduction of clean-coal technologies in electric-power 

generation to mitigate climate change.

Financing

Total project investment includes US$12,000,000 from

United States Agency for International Development (USAID)

technical assistance, plus an unspecified amount of in-kind

contributions from the Centre for Power Efficiency and

Environmental Protection (CENPEEP), established by India’s

National Thermal Power Corporation Ltd. (NTPC), with assistance from USAID-India. 

The Project

The project is designed to reduce the emissions of GHG

per unit of electricity generated by improving the efficiency of

existing coal-fired power plants and by implementing

advanced technologies for future coal-based power plants. 

The CENPEEP was established to implement the Efficient

Power Generation (EPG) component of the GEP project,

which was set up by the Government of India and USAID.

CENPEEP is a national resource for assimilating, disseminating, and demonstrating technical know-how in support of

improved power-sector management, increased operating efficiencies, and strengthened environmental protection in India.

Advanced technologies have improved power generation

efficiency and environmental controls at coal-fired power stations. NTPC and some state electricity boards have been

implementing heat-rate improvements in power plants with a

combined generating capacity of about 20,000 MW. Increased

operating efficiencies reduce the gap between the demand and

supply of power, reduce GHG emissions, and improve the

reliability of electricity supply to end users.

Long-term sustainability through cost recovery, global climate change mitigation through implementation of the heat-rate

INDIA

82 Energy and Water for Sustainable Living

Efficient Power Generation (Greenhouse Gas

Pollution Prevention [GEP] Project)

Location: Countrywide

Type: Energy-efficiency improvements in electricity generation

Size: Coal-fired stations totaling 20,000 MW capacity

Funding: US$12,000,000, plus unquantified in-country 

partner contribution 

Objective: To improve power-sector management, 

increase operating efficiencies, and enhance

environmental protection.

Duration: 1995–2005

Scale: Rural and urban
guidelines, and information dissemination are the guiding

principles of CENPEEP and its regional centers.

Technical Data

Technologies include boilers, turbines, electrostatic precipitators, high-pressure/intermediate-pressure turbines, condensers, and high-pressure heaters.

New technical initiatives include (1) a mine-mouth coal

washery to demonstrate the benefits of using washed coals in

pit-head power generation; (2) mine backfilling of coalderived ash to demonstrate the benefits of large-volume ash

utilization and abandoned mine land reclamation for

afforestation; (3) evaluation of integrated gasification combined cycle (IGCC) technology for significant thermal efficiency improvements in new coal-based power generation; 

(4) and regional centers for CENPEEP to expedite heat-rate

improvements in additional power plants.

Performance Data

Power plant performance optimization studies are showing

significant improvements in efficiency and reductions in CO2

and particulate emissions. For example, for a 210-MW unit,

heat-rate improvement potential identified by optimizing highpressure/intermediate pressure turbine efficiencies, condenser

vacuum, high-pressure heaters, and relative humidity spray is

about 100 kcal/kWh. This optimization corresponds to the following annual reductions: 46,000 tons of coal, 60,000 tons of

CO2, and approximately US$135,000 in fuel costs.

The cumulative CO2 reduction achieved due to all efficiency improvements is about 1,840,000 tons/yr.

Participants and Roles

The CENPEEP provides a self-sustaining mechanism 

for long-term support of coal-fired power plants for testing

and demonstrating efficiency improvements. India's NTPC

and USAID-India helped to establish CENPEEP. The 

US Department of Energy’s National Energy Technology

Laboratory provides technical assistance and training to 

CENPEEP.

Partner Contacts

Richard Edwards

US Agency for International Development

American Embassy

Chanakyapuri, New Delhi

110 021 India

S.C. Deo Sharma

CENPEEP/NTPC

R&D Building

A-8A, Sector-24, NOIDA

201301 U.P. India

Doug Jewell

US Department of Energy

National Energy Technology Laboratory

3610 Collins Ferry Road

Morgantown, WV 26507 USA

Phone: 304-289-4720

E-mail: djewel@netl.doe.gov

Dr. Sai Gollakota

Science Applications International Corporation

626 Cochrans Mill Road

Pittsburgh, PA 15236 USA

Phone: 412-386-5717

Fax: 412-386-4604

E-mail: saigollakota@sa.netl.doe.gov

Energy and Water for Sustainable Living 83
Summary

The 7.4-MW capacity Kanata hydroelectric project is

generating 22.3 GWh of electricity and 8,000,000 m3 of

potable water per year for the City of Cochabamba. Kanata’s

power began to feed the Bolivian grid in May 1999, making it

the first independent power production project of its kind in

the country.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

Sound principles that helped attract private financing

included integrated, informed, and science-based decision

making about water resources at the basin scale; broad stakeholder participation and empowerment; effective coordination

between public and private sectors and across multiple geographic and institutional scales; a commitment to strengthening human and organizational capacity for sustainable water

management; and consideration of water as an economic,

social, and environmental good (including acknowledgment

of the full costs of water management and water services) and

transparent, equitable, and sufficient allocation of those costs

throughout society.

Specific capacity-building activities that helped attract

financing by bringing the enterprise in line with standard

commercial practices included the formation of a management

team independent of the government, hiring and developing

staff with appropriate skills matched to the job, installing

management information systems, and keeping financial

records in line with international accounting standards.

Activities that helped increase knowledge of sector professionals in commercial business practices and competitive

energy market operations included awareness and educational

workshops for decision makers, skills-oriented training for

decision makers and staff, stakeholder partnerships and

exchanges, dissemination of best practices, and participation

in international forums and workshops.

Financing

Total project investment was US$6,131,000. All of the

funding (70% debt and 30% equity) came from private

sources. Equity sources included Strycon GmbH

(US$821,000), Continental Vissions Ltd. (US$525,000), and

Austrian and Bolivian individuals (US$693,000). Debt sources

included Giro Credit (Bank) (US$1,668,500), Cidre (local

development credit fund) (US$500,000), Continental Vissions

Ltd. (US$804,000), and Austrian and Bolivian individuals

(US$1,051,000).

Although the Bolivian developers had assembled a

financing mix of debt and equity from European and local

investors, a US$1,000,000-financing gap existed in 1996.

E+Co provided a US$250,000 loan, which allowed the

developers to leverage the balance of debt and equity necessary to complete the project financing.

The Project

The Kanata hydroelectric project is a joint venture of

Bolivian and Austrian companies. It was developed to increase

the water supply to the City of Cochabamba (which suffers

continuous drought conditions), generate electricity, and position the project as the first independent power producer in

Bolivia. 

The plant’s annual generation of 22.3 GWh of electricity

and 8,000,000 m3 of potable water benefits approximately

50,000 people in the City of Cochabamba. 

BOLIVIA

84 Energy and Water for Sustainable Living

Kanata Hydroelectric Plant

Location: City of Cochabamba

Type: Hydroelectric plant

Size: 7.4 MW; 8,000,000 m3 of potable water 

Funding: Total: US$6,131,000

Private: US$6,131,000 

Objective: To increase the city’s water supply and 

generate electricity.

Duration: 1995–1999

Scale: Rural
Prior to the project, water from this dam passed through

an open canal that lost a significant amount of water to spillage.

The project has provided a 4-km grid line, which has

enabled the expansion of the electricity distribution network

to unelectrified rural communities in the surrounding areas,

thus benefiting industrial, commercial, and residential users. 

End uses improved by the project include health, education, lighting, drinking water, nutrition, cooking, and recreation.

Technical Data

The plant uses high-efficiency Pelton turbines, which are

well suited to partial load conditions and to conditions of

severe fluctuations in the water supply. 

Performance Data

Kanata’s power began to feed the Bolivian power grid in

May 1999, making it the first independent power production

project of its kind in the country. The Kanata facility results in

the avoidance of 2,000,000 m3 of water losses per year. Water

pollution has also decreased, reducing water treatment costs.

During the construction of the project, new jobs were

created. The project provided clean energy to previously

unelectrified rural communities, and it increased the availability of potable water by 30%.

Participants and Roles

Bolivian developers, in conjunction with Austrian partners, designed and implemented the project. They also assembled a financing mix of debt and equity from European and

local investors. 

E+Co provided a $250,000 loan, allowing the developers

to leverage the balance of debt and equity necessary to complete the project financing.

Partner Contacts

Hector Alarcon

Synergia S.A.

Av Libertador Bolivar #1227 Casilla #2639 

Cochabamba, Bolivia

Phone: 591-42-84901

Fax: 591-411-7109

E+Co

383 Franklin Street

Bloomfield, NJ 07003 USA

Phone: 973-680-9100

Fax: 973-680-8066

E-mail: eco@energyhouse.com

Energy and Water for Sustainable Living 85
Summary

Sixty people were trained to identify and implement

energy-efficiency opportunities in municipal water systems. A

municipal energy management team established by the mayor

of Indore identified energy-efficiency savings measures that

resulted in savings of more than US$100,000. In Pune, a similar team identified energy-efficiency measures that saved the

city more than 300,000 kWh. 

In-Country Principles That Attracted

Nondonor Financing 

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building and access to justice and 

enforcement of laws

Capacity-building principles that helped attract private

funding included a governmental structure that allowed utilities to operate under standard commercial practices, which

included improving cost recovery and setting up metering

systems. Training local water utility staff to better manage

energy and water within their utilities was also important.

Other factors that helped attract private financing were

the existence of a legal and regulatory framework that covered

tariffs; increased public knowledge of, and participation in,

energy decision making; an emphasis on decision making and

assignment of authority at the lowest possible level; a commitment to creating and strengthening human and organizational

capacity for sustainable and integrated water management;

and consideration of water as an economic, social, and environmental good, including acknowledgment of the full costs

of water management and water services.

Financing

Total project investment to date has been US$393,000.

Private-sector sources made in-kind contributions of

US$15,000, which provided necessary technical expertise on

specific technology areas. The Indore Municipal Corporation

contributed US$80,000 (US$30,000 in cash and US$50,000

in-kind). The United States Agency for International

Development (USAID) provided US$200,000, and the 

US-Asia Environmental Partnership (US-AEP) provided

US$98,000. 

A proposal is being considered that would use private

money, through an energy-service contract, to retrofit all the

street lighting in Indore using the energy savings to pay back

the investment and profit; this would provide additional private-sector investment of about US$800,000.

The Project

As water needs grow and supplies become scarce, waterservice-related energy use and associated costs become more

expensive. Energy efficiency provides a way for municipalities

to reduce costs for water services while simultaneously

improving the capacity and reliability of the delivery system.

Energy management teams were established in municipalities and trained to identify and implement opportunities

to make energy and water use more efficient. Reduced energy

and water use costs allow municipalities to redirect limited

resources to other areas of need and result in improved customer service.

Industrial, commercial, and residential sectors are benefiting through improved health, nutrition, education, drinking

water, sewage, and irrigation. The utility sector benefits through

expanded service areas, increased number of connections,

improved operating efficiency, and reduced energy demand.

INDIA

86 Energy and Water for Sustainable Living

Sustainable Cities Initiative

Location: Indore and Pune

Type: Water and energy efficiency

Size: Varies with pumping station

Funding: Total: US$393,000

Private: US$15,000

Public: US$378,000 

Objective: To reduce energy use and improve efficiencies

of water utilities.

Duration: 1997–2005

Scale: Urban
The project has sought not only results that

can be achieved elsewhere in India and globally,

but also to institutionalize energy- and waterefficiency concepts to ensure that savings continue

well beyond the end of the project.

Technical Data

Technologies used to increase efficiency

included variable speed motors, high-efficiency

pumps, leak-detection systems, and low-friction

pipes. 

Performance Data

Sixty people have received energy management 

training to date.

The Indore energy management team identified more

than US$100,000 worth of energy savings opportunities. The

city has commissioned a municipality-wide energy monitoring

protocol and developed a budgetary system to evaluate and

implement energy-efficiency projects.

Energy-efficiency activities in Pune have saved a total of

4,230 MWh with an average payback of 16 months. In addition, 4,319 tons of carbon dioxide (CO2) are avoided in Pune

per year.

Participants and Roles

The municipalities of Pune and Indore provided the regulatory structure and financial support with cash or in-kind

services. The W. Alton Jones Foundation and the Honeywell

Foundation contributed funding to provide technical assistance and conduct seminars. USAID and US-AEP provided

additional funding.

Partner Contacts

Sanjay Kumar Shukla

Indore Municipal Corporation

Indore, Madhya Pradesh, India

Phone: 91-731-431610

Fax: 91-731-434489

Ashok Deshpande, Additional Commissioner

Pune Municipal Corporation 

Pune, Maharashtra, India

Phone: 91-20-553-4365

Energy and Water for Sustainable Living 87
Summary

Inadequate or outdated water delivery systems create

reliability problems and high energy demands. This project 

is helping promote energy efficiency, and thereby expanding 

and improving water service to end users. Energy costs are

reduced and water use efficiency is increased through comprehensive energy management strategies for water utilities. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

• Public access in support of sustainable development and

public participation, coordination, and partnerships

The key to private-sector interest in this project has been

political support for reform from the state government and

governor. Also key has been allowing utilities to operate under

standard commercial practices, for example, by hiring and

developing staff with appropriate skills matched to the job,

improving cost recovery, setting up metering systems, installing

management information systems, and keeping financial

records in line with international accounting standards.

Increased awareness, knowledge, and skills of sector 

professionals in technical areas, the existence of a legal and

regulatory framework that includes tariffs, and increased public knowledge of, and participation in, energy decision making

have also been important. The project includes a waterand energy-efficiency public outreach campaign.

Other in-place principles helping to attract private-sector

interest include effective coordination among sectors, between

public and private sectors, and across multiple geographic

and institutional scales; an emphasis on decision making and

assignment of authority at the lowest appropriate level; consideration of water as an economic, social, and environmental

good, including acknowledgment of the full costs of water

management and water services; and conditions and mechanisms of access to capital at all levels. 

Financing

Total investment to date has been US$385,000. The

municipal water authority, Companhia de Água e Esgoto do

Ceará (CAGECE) provided US$100,000 of in-kind contributions (staff time and event costs). Private-sector groups contributed about US$15,000 of training, in addition to travel

expenses. 

The United States Agency for International Development

(USAID) contributed US$250,000, and the US Department of

Energy (USDOE) provided US$20,000. 

Additional funding of US$1,600,000 for further efficiency

investments is expected to come from a loan from the World

Bank and Programa Nacional de Conservacäo de Énergia

Eléctrica (PROCEL) and guaranteed by the local, privately

held electric utility. PROCEL is the Brazilian national electricity

conservation program, an organization that funds or cofunds

private- and public-sector conservation projects.

The Project 

As water needs grow and supplies become scarcer, costs

for water-service-related energy use become more difficult 

for municipalities to afford. Problems such as inadequate or

BRAZIL

88 Energy and Water for Sustainable Living

Municipal Water-Efficiency Program

Location: City of Fortaleza, State of Ceara

Type: Water- and energy-efficiency improvements

Size: 22,000,000 m3

Funding: Total: US$385,000

Private: US$115,000

Public: US$270,000 

Objective: To increase water utility efficiency. 

Duration: 2000–2003

Scale: Urban and rural
antiquated infrastructure and limited or irregular supply

impede the efficient delivery of water to end users. Water

delivery is a relatively energy-intensive municipal service, and

energy efficiency can help municipalities reduce the costs

associated with water services while improving the capacity

and reliability of the delivery system. 

The city of Fortaleza, aided by the Alliance to Save

Energy, is developing a comprehensive energy management

strategy for its municipal water system. Specific activities

include assessing the potential for energy and water savings,

mobilizing community-wide resources to participate in the

development and implementation process of a comprehensive

water management strategy, and developing and implementing the strategy.

The project has expanded and improved water service to

end users at lower costs. It has also given water utilities the

ability to manage energy use in the midst of an energy crisis

and rationing, and has increased management’s understanding

of energy use as a nonfixed cost. Commercial, industrial, and

residential sectors are benefiting through access to safer,

cheaper, and more reliable water services.

Technical Data

Technologies include variable-speed motors, high-efficiency pumps, and supervisory control and data acquisition

(SCADA) systems.

Performance Data

Between 2000 and 2001, US$181,000 worth of energy

savings resulted from efficiency improvements. Sixty internal

utility staff and 100 external staff have been trained in energy

management strategies. The population served by the water

utility has increased.

Participants and Roles

CAGECE provides in-kind support, and USAID and

USDOE provide financial support through the Alliance to

Save Energy. Other existing and potential participants include

PROCEL and the World Bank.

Partner Contacts

Regina Ostergarrd Klem

US Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20523-3800 USA

Phone: 202-712-4185

E-mail: rostergaard-klem@usaid.gov

Renato Rolim

State of Ceara Water and Wastewater 

Company (CAGECE)

Av. Dr. Lauro Vieira Chaves, 1030

CEP 60.420-280

Fortaleza, CR, Brazil

Phone: 55-85-433-5601

E-mail: RENATO@cagece.com.br

Energy and Water for Sustainable Living 89
Summary

The renewable energy share of power generation capacity

in India grew from 0.1 to 3% in eight years as the approach to

renewable energy development shifted from largely state

administration to a demand and market-driven commercialization approach with active private-sector involvement.

Nearly 3,000 MW of wind, small hydro, biomass, and solar

photovoltaic (PV) power systems were in operation by 

March 2001, compared with about 100 MW in 1992. The

increase is attributable to a pricing policy that more closely

represents the economic costs of energy supply, trade, and

industrial policy reforms, and the entry of the private sector

to augment power generation capacity. 

In-Country Principles That Attracted

Nondonor Financing 

• Institution building and access to justice and 

enforcement of laws

The project attracted private-sector investment because

of successful energy-sector restructuring that established a

framework for private investment and ultimate privatization. 

Fiscal incentives and policies that helped encourage 

private-sector participation included low-interest loans with

soft repayment terms, a five-year tax holiday for independent

power producers, 100% accelerated depreciation in the first

year, reduced customs duties on renewable resources energy

equipment, sales-tax exemptions (in select states), and facilities for banking, wheeling, and third-party power sales.

Financing

Total project investment was US$216,000,000. The Indian

Renewable Energy Development Agency Limited (IREDA), an

autonomous financial institution within the Government of

India’s Ministry of Nonconventional Energy Sources (MNES),

has financed about half of the capacity additions through direct

and loan support. Private-sector equity (amounts not reported),

MNES support, and loans from other lenders financed the balance. Public financing sources included the Swiss Development

Corporation (SDC), the Danish International Development

Agency, and the Global Environment Facility (GEF).

The Project

India’s renewable energy resource use increased substantially through the expansion of the role of the private sector in

technology commercialization.

Commercial, industrial, and residential sectors benefit

because of increased access to reliable and reasonably priced

electricity. Other benefits include land price increases,

improved quality and availability of power in the vicinity of

wind farms, and infrastructure development, such as

improved roads. 

The development of a commercial solar PV market 

has created a large, private-sector-led manufacturing base 

(60 firms in 2002 compared with 10 in 1992), a competitive 

marketplace where product costs are now among the lowest

in the world, and increased participation by financial intermediaries. 

Technical Data

Technologies include 5-Wp solar lanterns, 900-Wp PV irrigation pumps, 500- to 2,500-Wp solar power packs, 25-kWp

village power systems, and a 200-kWp-grid tied system.

INDIA

90 Energy and Water for Sustainable Living

India Renewable Resources Development 

(RRD) Project

Location: Nationwide

Type: Commercialization of renewable energy technologies

Size: 3,000 MW from renewable resources

Funding: Total: US$216,000,000

Private: (in-kind support): Amount not provided 

Public: US$216,000,000 

Objective: To increase private-sector involvement in 

renewable energy.

Duration: 1993–2001

Scale: Urban and rural
Performance Data

Small Hydro

Over 113 MW of small hydro capacity (33 projects) 

was commissioned and financed, compared with a target of

100 MW. Installed capacity has risen to more than 1,340 MW.

Construction of 17 more small hydro systems (over 34 MW)

has begun. An additional 155 MW has been financed in part

with domestic market borrowings. The vast majority of new

installations are owned and operated by private-sector 

companies.

Installations produce an aggregate annual energy output

of 465,000,000 kWh at an average plant factor of 47%. Unit

costs average US$1,150 in real (year 2000) terms. Average

estimated cost was US$1,000/kW (year 2000 dollars) in comparison to US$3,000/kW when installations were developed

by the public sector. As the time from groundbreaking to

commissioning has decreased from 20 to 54 months in 1997

to 11 to 20 months today, project cash flows have improved.

Wind Power

Installed capacity is now 1,340 MW as compared to 

40 MW in 1992; more than 92% of capacity was implemented

by the private sector. Unit costs are about US$1,070/kW (year

2000). Rural employment amounting to 7,000 to 9,000 jobs

in Tamil Nadu resulted from the 800-MW wind farms

installed in the state.

Solar Photovoltaics

Seventy-eight projects with a combined capacity of 

2,145 MWp generate 3,000,000 kWh annually; 40% of 

the 20 MWp produced in 2000 was exported. Average unit

cost in real terms has declined from US$22/Wp at appraisal 

to US$11/Wp. There has been a five-fold income increase

among farmers using PV pumps and a 50% increase in net

income by some traders using solar rather than kerosene

lighting. The income of some rural households is rising by 

15 to 30% due to increased home industry output. 

In addition to these performance measures, the carbon

emissions avoided by RRD are estimated at about 3.6 million,

0.74 million, and 87,000 tons over the lifetime of the small

hydro, wind, and PV projects financed under the project,

respectively. 

Participants and Roles

IREDA, under MNES, Government of India, implemented

the project. The GEF, the SDC, and the Danish International

Development Agency provided technical assistance.

Partner Contacts

Magdalena Manzo

World Bank

1818 H Street, NW

Mail Stop Number MC-10-1002

Washington, DC 20433 USA

Phone: 202-458-1466

Fax: 202-522-2427

E-mail: mmanzo@worldbank.org

K.S. Janakiram

Chief General Manager

IREDA, India Habitat Centre

Core-4 A East Court, First Floor

Lodhi Road

New Delhi, 110003, India

Phone: 91-11-4682214-21

Fax: 91-11-4682202

E-mail: mdireda@rediffmail.com

Josef Imfeld

Regional Coordinator, South Asia

SDC Coordination Office 

Chandragupta Marg. 

Chanakyapuri, New Delhi 110021, India

Phone: 91-11-6877819

Fax: 91-11-6873631

Energy and Water for Sustainable Living 91
Summary

In this project, two United States (US) electric utilities

worked with the Mexican national utility CFE to replace a

205-kW diesel generator in San Juanico, Mexico, a small village not connected to the power grid. The hybrid system,

which uses solar, wind, and diesel capacity, extends electrical

service availability from the current 3 to 4 hours per day to

24 hours per day. It has improved the economic well-being

and quality of life in this rural village, using technologies that

keep GHG emissions to a minimum. The BCS State government plans to use this model to electrify several coastal villages over the next several years.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

Private-sector interest was facilitated by the ability of utilities to operate under standard commercial practices, as evidenced by the hiring and developing of staff with appropriate

skills matched to the job. Also important were the increased

awareness, knowledge, and skills of sector professionals in

technical areas, made possible, in part, by stakeholder partnerships and exchanges and dissemination of best practices. 

Technical assistance, where development partners

worked with Mexican nationals to invent and design solutions

for local implementation also helped attract private-sector

financing. The commercialization and development of existing utilities and a legal and regulatory system that covers 

tariffs also helped attract private-sector interest. 

Financing

Total project investment was roughly US$1,040,000

(US$135,000 for project development and US$905,000 for

implementation). Of the total, more than half (US$530,600)

came from two private US utility companies, APS and Niagara

Mohawk Power Corporation (NMPC). The government of

BCS State contributed US$222,750, and CFE contributed

US$37,100. The US Agency for International Development

(USAID) and the US Department of Energy (USDOE) contributed a total of US$249,480.

The local community formed an electrification committee

(patronato) and agreed to a tariff structure that makes the project sustainable by generating revenues sufficient to cover labor

and expenses for system operation, fuel, equipment maintenance and minor repair, and replacement of consumables.

The Project

The project site is a surfing destination and fishing village of 400 people in the BCS State that is 30 km from the

nearest power grid. Villagers depended on a 205-kW diesel

generator for their energy needs, which, because of high fuel

costs, is operated for only 3 to 5 hours per day.

The APS/CFE Mini Grid Project developed solar, wind,

and diesel capacity to displace the use of the diesel generator.

The diesel component operates when solar and wind

resources are below set levels and the battery banks are fully

discharged. Under those conditions, the diesel generator provides power to the grid, with any excess power recharging the

MEXICO

92 Energy and Water for Sustainable Living

Comision Federal de Eletricidad/Arizona Public

Service Company of Phoenix (CFE/APS) Renewable

Energy Mini Grid Project

Location: San Juanico, Baja California Sur (BCS) State 

Type: Alternative energy generation

Size: 205 kW

Funding: Total: US$1,040,000

Private: US$530,600

Public: US$509,400 

Objective: To use a renewable-energy hybrid system to

extend delivery service and reduce greenhouse gas (GHG) emissions.

Duration: 1998–2028 (mini grid is fully operational)

Scale: Rural
batteries. Diesel consumption is estimated at roughly 90 L of

fuel per day, compared with the previous 410 L per day.

The mini grid gives the community power 24 hours 

per day, allowing for the preservation of the daily fishing

catch, improved food storage in residents’ homes, longer

school hours, and strengthened local public institutions.

Economic benefits include providing power for the previously

nonoperational fish processing facility and promoting tourism

through the creation of a more reliable infrastructure.

Environmental benefits include reduced sulfur dioxide

(SO2), GHG, and particulate emissions from the combustion

of fossil fuels. Minimal clearing of vegetation and soil movement was required, and noise and visual pollution from the

wind component of the project have been minimal. The

potential for spills of hazardous materials is mitigated through

spill response and battery recycling procedures. 

The project supports the following goals of the CFE: to

apply renewable energy technologies for electrifying remote

villages; to operate a hybrid power system as a sustainable

business; to contribute to environmental, economic, and

social development in rural villages; and to develop a project

that can serve as a model for similar projects in Mexico. The

project also gives CFE the opportunity to gain detailed technical knowledge of hybrid power systems and the development

and implementation of projects of this type. 

Technical Data

The system consists of 10 Bergey 7.5-kW turbines on 

37-m guyed-lattice towers, a 17-kW photovoltaic (PV) array, a

420-kWh 240-VDC battery bank, a 90-kW inverter, and a

new, more efficient, 120-kW diesel generator.

Performance Data

Project GHG emissions are expected to be reduced from

405 tons of carbon dioxide (CO2) per year to 89 tons per

year, or by 9,480 tons over the life of the project. 

Participants and Roles

APS designed the plant and CFE built it. The patronato

will operate the plant with support from CFE. The USDOE’s

National Energy Renewable Laboratory (NREL) will monitor

plant performance. NMPC, USDOE, USAID, and the governments of San Jaunico, the municipality of Comondu, and the

BCS State provided financing support.

The project was conducted under the auspices of the 

US Initiative on Joint Implementation (USIJI). Initiated in

1993 as part of the US Climate Change Action Plan, the USIJI

supports the development and implementation of voluntary

projects between the US and non-US partners that reduce,

avoid, or sequester GHG emissions.

Partner Contacts

Richard Moore

US Initiative on Joint Implementation

1000 Independence Ave., SW, Rm. 1I-030

Washington, DC 20585 USA

Phone: 202-586-6485

Fax: 202-586-3485

E-mail: Richard.H.Moore@hq.doe.gov

Carlos Gonzales

Federal Electricity Commission

Rio Atoyac 97-318, 06598, Mexico, D.F.

Mexico City, Mexico

Phone: 525-229-4400, Ext. 2554

C.V. Mathai

Arizona Public Service Company

PO Box 53999, M/S 8376 

Phoenix, AZ 85702-3999 USA

Phone: 602-250-2734

Fax: 602-250-3813

E-mail: C.mathai@pinnaclewest.com

Energy and Water for Sustainable Living 93
Summary

Twenty-four decentralized water systems now serve

11,251 rural families in 9 municipalities as a result of entrepreneurial approaches to operations and management that

involve active participation by local parties. These enterprises

employ management models such as joint-venture companies,

decentralized municipal enterprises, and nonprofit associations. In addition, 17 of 18 target municipalities now have

water resources management plans in place. The project

helps ensure that water resources management/regulation and

water services provision are strengthened and supported at

the local level. 

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development

• Institution building 

Key principles that have helped attract private financing

include strengthened local management that facilitates public

participation in the local control of water systems, management of water resources at the watershed level, cooperation

between and within watersheds, more equitable access to

water, land use control through zoning, and regulating the use

and abuse of water resources. Specific capacity-building

activities that helped enable the success of the project included awareness and educational workshops and skills-oriented

training for decision makers and staff, stakeholder partnerships and exchanges, and dissemination of best practices.

Programs in public education and communication and

outreach have helped increase public knowledge of and participation in energy decision making. Educating citizens has

helped them play improved roles in shaping the policies, markets, and institutions that affect their daily lives. 

Other sound principles that have helped attract private

support include integrated, intersectoral, and multiobjective

decision making about water resources at the basin scale;

informed and science-based decision making; broad stakeholder participation and empowerment in water resources

decision making; the promotion of strong, effective, and culturally appropriate institutional, policy, and legal frameworks;

effective coordination among sectors; an emphasis on decision

making and assignment of authority at the lowest appropriate

level; a commitment to creating and strengthening strong

human and organizational capacity for sustainable and integrated water management in both the public and private sectors; consideration of water as an economic, social, and environmental good; conditions and mechanisms of access to capital at all levels; stable systems of access to and allocation of

water; and systems of accountability and transparency.

Financing

Total project investment has been approximately

US$21,750,000. This includes US$12,600,000 in United

States Agency for International Development (USAID) development assistance from 1999 through 2002, US$4,150,000

from a local nongovernmental organization (CARE), and 

US$-5,000,000 from private sources. Private funds sources

include grantee and local government counterpart, and 

community participation in both labor and material. 

EL SALVADOR

94 Energy and Water for Sustainable Living

Increased Access by Rural Households 

to Clean Water

Location: El Salvador

Type: Sustainable water resources and water supply

Size: 24 decentralized water systems serving 9 municipalities

Funding: Total: US$21,750,000

Private: US$9,150,000

Public: US$12,600,000 

Objective: To increase rural household access to 

clean water.

Duration: 1999–2002

Scale: Rural
The Project

In Latin America and the Caribbean, responsibility for

providing water and sanitation is increasingly devolving to

communities. Typically, however, local/municipal governments lack the financial, technical, institutional, and social

infrastructures to provide these services. This project has

helped address these needs by supporting small cities and

rural communities, primarily through local governance programs and direct technical assistance for water supply and

sanitation.

The project increases rural household access to clean

water by improving water quality sources, performance of

water distribution systems, and local management of water

resources. It also promotes effective citizen actions to address

water issues. The focus is on local community and municipallevel interventions in 3 critical watersheds that transcend the

boundaries of 18 municipalities. The project also works at

the national level by assisting with the reform of national policies and by replicating successful interventions and lessons

throughout the country.

The project has resulted in increased access to clean water

and sanitation facilities throughout the target area. It has also

implemented watershed-protection activities to improve agricultural practices such as soil conservation, organic cropping,

reforestation, and integrated pest management.

Technical Data

Techniques being used to improve micro watersheds and

enhance the quality of water resources include the securing of

behavioral changes in micro, watershed residents, particularly

small farmers, in the way that they use land. Widespread

degradation of surface waters from sediment/soil runoff and

municipal/domestic wastes are being reduced through the

promotion of soil conservation practices and wastewater treatment, and solid waste disposal utilizing appropriate technology

and recycling. 

Performance Data

Rural household access to clean water increased from 

30 to 53% in the target areas from 1999 to 2001. Improved

soil conservation, reforestation, organic cropping, and integrated pest management practices now cover more than

22,000 ha of land. Women and children in the target area

benefit from new potable water systems that improve their

health and increase their economic productivity and quality of

life by freeing them from the need to spend time and energy 

carrying water.

Participants and Roles

The USAID/El Salvador Mission has supported small

cities and rural communities primarily through local governance programs and direct technical assistance for water supply and sanitation. CARE has assisted with institutional

implementation. The private sector has contributed through

counterpart support in all areas of project implementation.

Partner Contacts

Alan Hurdus, Water Team Leader

US Agency for International Development

1300 Pennsylvania Ave., NW

Washington, DC 20523 USA

Phone: 202-712-0218

Fax: 202-216-3174

E-mail: alhurdus@usaid.gov

Bradley Carr

US Agency for International Development

San Salvador, El Salvador

E-mail: bcarr@usaid.gov

Energy and Water for Sustainable Living 95
Summary

This program, an ecumenical church development collaboration between primarily the Catholic and Anglican

Churches for East Africa and the United States (US), is providing electric light and radio to areas of rural Uganda where

electric grid extension is unlikely. The goal is to electrify

5,000 churches, schools, health clinics, community centers,

and homes over two years. By replacing existing kerosene

lanterns, the quality of life of residents is enhanced and carbon dioxide (CO2) emissions are reduced. Project success is

expected to lead to replication elsewhere and to reduce costs

due to improved skills in design and installation of the systems.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Public participation in, and support of, sustainable 

development 

Key principles that helped attract private-sector financing

included the ability to have a management team independent

of the government, and increased awareness, knowledge, 

and skills, facilitated through the incorporation of popular input.

A central element for energy-sector reform efforts is

increased public knowledge of, and participation in, energy

decision making. Activities that support such knowledge, and

also helped attract private-sector interest, included programs in

public education and communication, executing intervention

models to increase the impact of education and outreach, and

educating citizens so they can play improved roles in shaping

the policies, markets, and institutions that affect their lives.

Financing

Total project investment is about US$6,000,000, all of

which comes from the private sector. About US$3,000,000 is

from the nonprofit Hathaway Foundation, US$2,400,000 is

from the Church of Uganda, and US$600,000 is from users. 

There is a 50/50 matching arrangement by which both

the Catholic and Anglican Churches request solar-powered

electric lighting kits by placing a 10% cash deposit with a

Kampala solar equipment distributor, Solar Energy for Uganda,

Ltd. SLCA, the ecumenical church development collaboration

between the Catholic and Anglican Churches for both East

Africa and the US, then provides 50% funding for solar lighting kits to requesting diocesan coordinators in the East African

countries of Uganda, Tanzania, Congo, Rwanda, and Kenya.

Solar Energy for Uganda finances the remaining 40%, which is

paid back over two years by the receiving church.

The Project

Each of the 5,000 units consists of a solar lighting kit

powered by a 60-W roof-mounted solar module, with a battery for nighttime use. By replacing the existing kerosene

lanterns with solar lighting, each system will save approximately 526 kg of CO2 emissions per installation per year. 

The project provides numerous health, environmental,

educational, and other benefits, including the following.

Eliminating kerosene lanterns removes the noxious

fumes that are inhaled by the home dwellers — estimated 

as the equivalent of smoking two packs of cigarettes a day 

per person. 

The successful administration of a national solar electrification program may reduce the pressure to build a third dam

on the Nile River, which is home to some of the Earth’s most

famous natural wonders, including Murcheson Falls National

Park.

The project improves education. In Uganda, competition

for college education is intense, with a relatively modest number of first-year college slots available to millions of potential

UGANDA

96 Energy and Water for Sustainable Living

Solar Light for the Churches of Africa (SLCA)

Location: Countrywide

Type: Alternative energy generation (solar)

Size: 5,000 facilities

Funding: Total: US$6,000,000

Private: US$6,000,000 

Objective: To provide electric light in areas unconnected

to the electric grid.

Duration: 2000–2020

Scale: Rural
students. Students raised in households or attending local

schools without electric light cannot compete with their peers

who can read an additional four hours per night because of

available electricity. By electrifying schools with solar lights,

students in rural areas now have the ability to compete with

students from the electrified urban cities. 

The solar electric lighting systems also afford enough

power for small televisions, radios, and in some cases, for

computers and Internet connections. They also extend the

workday by up to four hours per evening. This allows residents to undertake micro enterprise activities and increase

income opportunities. Light also increases yields from farms

whose owners depend on food for livelihood. For example,

solar electric light allows chickens to see their food, receive an

extra feeding a day, and double egg production.

Technical Data

Each kit includes a 60-W solar module, six compact 8-W

fluorescent medium base screw-in lights (with in-line electronic ballast adapter), a charge controller, a 100-amp-hour

deep-cycle battery, switches, wiring, disconnect, and medium

base sockets. The installation takes roughly two to three

hours and once completed, provides the facility with complete hard-wired, wall-switch-controlled lights for up to six

rooms. The price per kit is US$1,200, which includes kit

purchase price, international shipping, tariff, in-country shipping, and installation.

Performance Data

Estimated CO2 emissions reductions will total approximately 52,600 metric tons over the 20-year lifetime of the

project.

A May 23, 2000, letter from the Ministry of Foreign

Affairs indicated that the Government of Uganda is “confident

that the project ... will help promote sustainable development.” 

Participants and Roles

Solar Energy for Uganda, Ltd., is responsible for system

installation and maintenance; SLCA, the Hathaway

Foundation, and the Church of Uganda provide financing.

Partner Contacts

Richard Moore

US Initiative on Joint Implementation 

1000 Independence Ave., SW, Rm. 1I-030 

Washington, DC 20585 USA

Phone: 202-586-6485

Fax: 202-586-3485

E-mail: Richard.H.Moore@hq.doe.gov

The Most Reverend Dr. Livingstone Mpalanyi Nkoyoyo

The Church of Uganda

Willis Road, Namirembe, Kampala

PO Box 14123, Uganda

Phone: 256-270218/9

Fax: 256-251925

E-mail: couab@uol.co.ug

Rt. Rev. Alden M. Hathaway

The Hathaway Foundation

PO Box 399

Ambridge, PA 15003 USA

Phone: 850-894-8566

E-mail: hathawayvi@worldnet.att.net

Energy and Water for Sustainable Living 97
Summary

This privately financed project provided technical assistance and financing to Jordan’s Central Electricity Generating

Company (CEGCO), an independent company that emerged

from the privatization of the former public utility, to improve

thermal power plant efficiency and reduce GHG emissions.

Efficiency savings of 1.5 to 6% are expected to reduce carbon

dioxide (CO2) and sulfur dioxide (SO2) emissions significantly.

CEGCO has indicated that due to the success of the project,

they hope to repeat the work on additional generating units.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

A key factor that helped attract private-sector interest

was the increased awareness, knowledge, and skills of sector

professionals made possible through such activities as dissemination of best practices and participation in international

forums and workshops.

A comprehensive energy law that meets global norms

and standards characterized by basic policies and priorities

was also important. Jordan has adopted a national environmental strategy that prioritizes environmental issues, with sustainable energy as one of the priorities in the energy sector.

The aim is to reduce GHG emissions and decrease the use of

expensive fossil fuels in a sustainable manner.

Financing

Total project investment by E7 was approximately

US$1,000,000 and roughly 2 man-years of in-kind E7 effort.

E7 is a group of nine of the world’s largest electricity companies, working together to promote efficient generation and use

of electricity and to protect the global environment. CEGCO

contributed in-kind labor in amounts equivalent to those of

the E7 participants, and an unspecified amount for monitoring and testing equipment. Phase I assessment and testing

cost roughly US$195,000, and Phase II implementation costs

were roughly US$760,000.

The Project

The project was undertaken at three units at two sites

operated by CEGCO — the Aqaba Thermal Power Station

(TPS) in southern Jordan and the Hussein TPS in Zarqa, near

Amman.

The project included two phases. The first phase consisted of boiler combustion optimization, boiler/turbine heat

rate and efficiency testing, a water chemistry workshop, and

training to improve plant efficiency. This phase also included

the establishment of an energy-efficiency performance test team

to help maintain the improvements in performance achieved

with this project, and to apply the knowledge and test equipment to other units. In this phase, E7 provided CEGCO with

the equipment needed for the testing of the units.

The second phase of the project consisted of improvements to air preheaters, the installation of a performance

monitoring system and upgrades to instrumentation, as well

as the installation of emissions measurement equipment to

improve combustion instrumentation. 

JORDAN

98 Energy and Water for Sustainable Living

E7 Project 82 - Efficiency Improvements 

in Power Plants

Location: Aqaba and Amman

Type: Enhancement of efficient combustion

Size: 750 MW total

Funding: Total: US$1,000,000

Private: US$1,000,000 

Objective: To improve efficiency and reduce greenhouse

gas (GHG) emissions.

Duration: 1997–2000

Scale: Urban
Technical Data

Technologies used to monitor emissions and improve

efficiency included combustion performance testing equipment and software, air preheater seals, boiler tube washes, air

heater upgrades, and instrumentation and emission monitoring upgrades. 

Performance Data

Phase I work improved unit performance and resulted in

annual emissions savings of 20,000 Mg of CO2 and 500 Mg

of SO2. Phase I improvements in the first year of operations

are expected to reduce CO2 emissions by 30,178 Mg and SO2

emissions by 744 Mg. Over a five-year period, it is estimated

that the project will achieve savings of roughly 172,000 Mg of

CO2 and 4,100 Mg of SO2.

Participants and Roles

E7 participants included Ontario Power Generation

(OPG), which managed the project; Electricite de France

(EDF), which supported training and a computer monitoring

system; Ente Nazionale Energia Elettrica (ENEL) of Italy,

which supported combustion testing; Hydro Quebec, which

contributed additional funding; and Rheinisch-Westfälische

Elektrizitätswerke (RWE) of Germany, which supported air

heater improvements. CECGO was the host utility.

Partner Contact

Paul Loeffelman

American Electric Power, Corporate Headquarters

1 Riverside Plaza

Columbus, OH 43215-2372 USA

Phone: 614-223-1243

E-mail: phloeffelman@aep.com

Energy and Water for Sustainable Living 99
Summary

Using the results from an energy audit, the Gostomel

Glass Plant implemented energy-efficiency measures at its

Kiev factory that have produced annual energy savings of

US$220,000, including more than 2,000,000 m3 of gas and

1,300,000 kWh of electricity. Gostomel now provides all of

its space heat needs with recovered waste heat. The energyefficiency improvements have enhanced Gostomel’s business

position, allowing it to obtain more than US$4,000,000 in

financing for additional energy improvements.

In-Country Principles That Attracted

Nondonor Financing

• Capacity building and informed decision making

• Institution building and access to justice and 

enforcement of laws

Capacity-building activities that helped bring the plant in

line with standard commercial practices, which in turn helped

attract private financing, included improved cost recovery,

metering systems, and management information systems.

Stakeholder partnerships and exchanges helped increase the

awareness, knowledge, and skills of sector professionals,

thereby contributing to informed decision making.

Institution-building principles that helped attract privatesector financing included the creation and definition of competitive and captive markets and assistance to energy-based

nongovernmental organizations in effectively participating in

the restructuring process.

Also important for attracting private-sector interest were

the national government’s commitment to pursue energy efficiency through the State Committee of Energy Conservation

and Gostomel’s commitment to assume a loan to help finance

the energy-efficiency improvements.

Financing

Gostomel invested about US$800,000 of its own

resources in new boilers, new insulation, and an efficient

compressor. UkrESCO, a Ukrainian energy performance contracting company established by the Ukraine State Committee

for Energy Conservation, provided a US$1,835,000 loan.

Gostomel has recently obtained a US$12,000,000 loan to

implement further improvements from the European Bank for

Reconstruction and Development (EBRD). The United States

Agency for International Development (USAID), through an

interagency agreement with the US Department of Energy

(USDOE), has provided US$117,000 from fiscal year 1997

through fiscal year 1999 as part of a larger program to help

Ukrainian manufacturers improve energy efficiency. 

The Project

The Gostomel Glass Plant is one of the largest bottle and

jar makers in Ukraine, manufacturing bottles for beverages,

perfumes, and pharmaceuticals. The company’s management

recognized that, compared with similar plants in the West, the

plant used energy inefficiently and created high operating

costs. It understood that improving energy efficiency could

increase production capacity and allow for market expansion

and sales increases. With USDOE support, the Ukrainian

Energy Efficiency Center, Agency for Rational Energy Use and

Ecology (ARENA-ECO) and USDOE’s Pacific Northwest

National Laboratory (PNNL) conducted a detailed energy

audit of the Gostomel facility. On the basis of the audit 

UKRAINE

100 Energy and Water for Sustainable Living

Industrial Energy Efficiency in Ukraine – 

Gostomel Glass Plant

Location: Kiev

Type: Industrial energy-efficiency upgrades

Size: Savings of more than 2,000,000 m3 of gas and

1,300,000 kWh per year

Funding: Total: US$2,752,000

Private: US$2,635,000

Public: US$117,000 

Objective: To reduce operating costs and increase 

production capacity by reducing energy use.

Duration: 1996–present

Scale: Urban
findings, Gostomel implemented energy-efficiency measures

that included installing three exhaust-heat recovery hot-water

boilers, upgrading insulation of hot-water pipes, and moving

the compressor air intake to a location outside the compressor

building.

Technical Data

Technologies include high-efficiency air compressors,

heat-recovery boilers, a backup hot-water boiler, piping insulation, and a new, energy-efficient industrial furnace. 

Performance Data

Installation of three heat-recovery boilers and a backup

hot water boiler produced annual savings of 1,884,000 m3 of

natural gas and US$156,395. The US$530,900 investment

was paid back in 3.4 years and provided an internal rate of

return of 29.3%. Relocating the compressor air intake to outside the building cost US$4,000 and provides annual savings

of US$2,130 and 53,250 kWh. 

Upgrading piping insulation cost US$39,000 and produces annual savings of 175,300 m3 of gas and US$14,550,

with a payback period of 2.7 years and an internal rate of

return of 25.1%.

Installing a new high-efficiency air compressor produced

annual savings of 670,280 kWh.

Participants and Roles

ARENA-ECO and PNNL conducted the energy audit.

Gostomel participants provided technical information to

ARENA-ECO, selected and implemented the measures, and

secured financing to implement the measures. USAID and

USDOE supported the promotion of energy efficiency in

Ukraine to help provide energy alternatives to the closed

Chernobyl power plant.

Partner Contacts

John Millhone, Director

Joint Implementation Activities

US Department of Energy

1000 Independence Ave., SW

Washington, DC 20585 USA

Phone: 202-586-4564

Fax: 202-586-1640

E-mail: john.millhone@hq.doe.gov

Mykola Raptsun, Executive Director

Agency for Rational Energy Use and Ecology 

(ARENA-ECO)

Laboratory Pereulok, 1

Pochtovy Yashchyk 48

Keiv 252133 Ukraine

Phone: 380-44-268-8088

Fax: 380-44-268-8451

E-mail: arena@arena.kiev.ua

William U. Chandler, Director

Advanced International Studies Unit

Pacific Northwest National Laboratory

901 D Street, SW

Washington, DC 20024 USA

Phone: 202-646-5242

Fax: 202-646-5233

E-mail: william.chandler@pnl.gov

Energy and Water for Sustainable Living 101
102 Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 103

APPENDIX:

Example Research and Development 

Technology Transfer Case Studies 

and Enabling Policy 

Environment Programs
104 Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 105

EXAMPLE RESEARCH AND 

DEVELOPMENT TECHNOLOGY

TRANSFER CASE STUDIES
Summary

Methane hydrate is believed to be ubiquitous to the shallow marine sediments of deepwater continental shelves

around the globe. Sizeable accumulations are known to exist

offshore in Japan, India, Africa, and the United States (US).

The project will provide information for technological solutions to seafloor failure and the uncontrolled release of large

quantities of methane from hydrates during exploration and

production activities.

Financing

Of the US$3,018,000 in funding, roughly half comes

from the US Department of Energy (USDOE) Strategic Center

for Natural Gas (SCNG) within the National Energy

Technology Laboratory (NETL). The remainder comes from

the private-sector Chevron Petroleum Technology Company.

The Project

Information generated under this project will provide a

better understanding of how natural gas hydrates can affect

seafloor stability, provide data that can be used by scientists in

their studies of climate change, and provide data to assess if

and how gas hydrates act as a trapping mechanism for shallow oil or gas reservoirs.

The project is a two-phased study designed to drill for

naturally occurring gas hydrates in the Gulf of Mexico at

water depths of 1,000 ft or more. Phase I includes data 

collection and analysis and model development obtained

through workshops. Findings will be compiled in a database.

Phase II will be a drilling and sampling program. On the

basis of Phase I findings, Chevron Texaco will devise a strategy

to drill through and recover cores for further analysis from

known hydrate accumulations.

Initial efforts focus on safety issues, characterizing natural

methane hydrate, and uncovering its connections to the global environment. As pressing environmental and safety issues

are resolved, the program will shift toward safely producing

methane from hydrates. Work on production technologies is

underway. In the near term, understanding the role of

methane hydrates in seafloor and slope stability is important

in developing effective safety measures in deepwater petroleum exploration and production activities. In the long term,

the ability to identify unstable regions of the seafloor and take

effective measures to mediate problems will result in fewer

hazards and will reduce risks, costs, time, and labor. 

In addition to causing slope failure on the seafloor, the

large amount of gas that may be released upon disturbing the

hydrate zone may have a dramatic effect on climate. The

project will supply data to understand cause-and-effect relationships and to provide information for technological solutions to reduce these risks. 

Sustainable Development Potential 

of the Project

The data and information on seafloor stability, climatic

effects, and reservoirs beneath hydrate zones will guide the

development of safety measures to address the risks.

Avoiding unforeseen and unexpected hazards is key to a

secure and affordable energy supply until such time that 

sustainable and renewable energy sources become feasible.

The project will help support sustained economic growth by

reducing risks and costs, thus adding security and additional

price stability to energy supplies.

APPENDIX

Chevron Texaco Gulf of Mexico Gas Hydrates Joint

Industry Project (JIP)

106 Energy and Water for Sustainable Living

Funding: US$3,018,000 

Objective: To develop technology and data that will help in

characterizing naturally occurring gas hydrates

in the deepwater Gulf of Mexico.

Duration: 2001–2003
Technical Data

Technologies used in the project include specially tailored

geophysical and geochemical techniques for hydrate appraisal.

New production technologies that safely promote the in-situ

dissociation of methane from hydrate are also being developed.

Technology Transfer Potential 

The data and information gathered during the project

can be used to mitigate hazards from seafloor instabilities in

exploration and production activities in marine environments

around the world. Understanding the role of hydrates in climate will help in assessing the risks for various regions if, or

when, the production of methane from hydrates becomes feasible.

Participants and Roles

The USDOE’s NETL is the primary funding organization.

Members of the Joint Industry Project are Chevron Texaco,

Conoco, Halliburton, Minerals Management Service, Phillips

Petroleum Company, Schlumberger, and TotalFinaElf.

Partner Contacts

Joe Renk, Project Manager

USDOE/SCNG/NETL

626 Cochrans Mill Road, PO Box 10940 

Pittsburgh, PA 15236 USA

Phone: 412-386-6406

E-mail: joseph.renk@netl.doe.gov

Emrys Jones

Chevron Texaco Exploration and Production 

Technology Company

2811 Hayes Road

Houston, TX 77082-6696 USA

Phone: 281-596-2269 

Fax: 281-596-2620

E-mail: EJones@chevrontexaco.com

Energy and Water for Sustainable Living 107
Summary

The Wabash River Coal Gasification Repowering

Demonstration Project demonstrated an environmentally

superior method of generating electricity from coal. This

method, integrated gasification combined-cycle (IGCC),

in general, and the E-Gas TechnologyTM, specifically, can 

produce a syngas stream that can be used to manufacture

alternate transportation fuels such as liquid methanol, which

could be beneficial in developing countries.

Financing

Of the US$468,000,000 in funding, US$219,000,000

was from the United States Department of Energy (USDOE).

Private-sector contributions included US$181,000,000 from

Destec Energy Gasification Business Unit (which was acquired

by Global Energy in 1999) and US$68,000,000 from PSI Energy.

Of the USDOE funding, US$168,000,000 was for capital costs,

with the balance for the four-year operational demonstration

phase. The Global Energy and PSI Energy contributions funded

the remaining capital costs of the project.

The Project

The project is part of the Clean Coal Technology (CCT)

Demonstration Program, a government-industry cooperative

model established in 1985 to provide utilities and major coalusing industries with options for reducing environmental

impacts of using coal and generating electricity at lower cost.

The CCT Demonstration Program has helped commercialize

technologies that reduce emissions of sulfur dioxide (SO2),

nitrogen oxides (NOx), particulate matter, mercury, and other

air toxics from coal-fired boilers.

The Wabash project demonstrated the use of the E-Gas

Technology to repower a pulverized coal-fired boiler using an

integrated gasification combined-cycle (IGCC) system. It provided advancements in the E-Gas Technology relevant to the

use of high-sulfur bituminous coal (or petroleum coke) and

data to assess the long-term reliability, availability, and maintainability of the system at the commercial scale. Industrial,

APPENDIX

Wabash River Coal Gasification Repowering Project/

Clean Coal Technology Demonstration Program 

108 Energy and Water for Sustainable Living

Funding: US$468,000,000 

Objective: To demonstrate the use of a new coal 

gasification process to repower a pulverized 

coal-fired boiler.

Duration: 1992–1995
commercial, and residential sectors benefit from the improved

environment and availability of cost-competitive electricity.

The project reduced SO2 emissions by 99% (as low as

0.03 lb SO2/million Btu) and controlled NOx emissions to

0.10 lb/million Btu. Particulate emissions from the project

are also very low (0.01 lb/million Btu). These levels meet and

exceed all existing US environmental regulations. The

improved efficiency of this technology relative to conventional

pulverized-coal combustion techniques results in a decrease

of carbon dioxide (CO2) emissions, which could potentially

impact long-term climate changes.

Even when operating on relatively high-sulfur coals, the

Wabash River project is the cleanest coal-fired power plant in

the world of any technology. In addition to its very low air

emissions, the project produces no solid wastes and only two

by-products: sulfur and slag. The sulfur produced by cleaning the syngas is sold as 99.99% pure elemental sulfur, while

the slag (the coal ash component) is marketed for use in

asphalt mixes and as a construction material.

Sustainable Development Potential 

of the Project

The project demonstrated SO2 reductions of 99% and

limited NOx emissions to 0.10 lb/million Btu. Economic

growth is assisted by allowing the use of cheap and abundant

coal to generate electricity in place of more expensive alternatives. Generating reasonably priced electricity for rural areas

helps provide for basic human necessities and raises the standard of living, thereby contributing to social development. 

Technical Data

The E-Gas Technology is a coal gasification process that

utilizes a two-stage pressurized, oxygen-blown, entrainedflow gasifier. The remainder of the system consists of a syngas

cooler, hot/dry filters for particulate removal, heat exchangers

for additional syngas cooling, a water scrubber to remove

chlorides, a hydrolysis catalyst bed to convert carbonyl sulfide

(COS) to hydrogen sulfide (H2S), a methyldiethanolaminebased (MDEA) absorber/stripper system for H2S removal, a

Claus unit to produce elemental sulfur, a gas turbine combined-cycle plant that incorporated an existing 1953 steam

turbine, and an air separation plant. 

Technology Transfer Potential 

The project upgraded an existing 100-MW conventional

pulverized-coal unit with a 262-MW (net) IGCC facility.

Prior to repowering, this unit operated at a 30% annual

capacity factor. At a 75% capacity factor, the repowered 

IGCC not only makes 5.6 times more electrical power annually,

but it does so while still reducing emissions: 5,500 tons per

year less SO2, 1,179 tons per year less NOx, and 100 tons per

year less particulate emissions.

The E-Gas Technology can be located on a greenfield

site, or it can be used to repower an existing facility.

Application of the technology results in the production of

electricity, a wide range of chemical products from the gasifiergenerated syngas (such as alternate transportation fuels), or

both. The technology capacity range is nominally 250 to

1,000 MW(e).

Participants and Roles

USDOE cofunded the project and provided oversight.

Global Energy, Inc., was a cofunder and provided the gas turbine technology. PSI Energy was a cofunder and provided the

combined-cycle plant.

Partner Contacts

Leo Makovsky

US Department of Energy

National Energy Technology Laboratory

626 Cochrans Mill Road, MS 922-342C 

Pittsburgh, PA 15236 USA

Phone: 412-386-5814

E-mail: Leo.Makovsky@netl.doe.gov

Phil Amick

Global Energy, Inc.

1000 Louisiana St., Suite 3800 

Houston, TX 77002 USA

Phone: 713-374-7252

Fax: 713-374-7278

E-mail: pramick@globalenergyinc.com

Energy and Water for Sustainable Living 109
Summary

Using cuttings that result from oil and gas drilling activities can provide an environmentally beneficial and costeffective waste management strategy for drilling wastes. These

large-volume wastes can be used to help restore impaired or

lost wetlands. The program has applicability for wells drilled

in or near environmentally sensitive wetlands environments

around the world.

Financing

Of the US$300,000 in funding, US$250,000 was from the

United States Department of Energy (USDOE). M-I Drilling

Fluids, a private company, contributed in-kind support estimated at US$50,000.

The Project

The USDOE has sponsored a series of projects to investigate the feasibility of using treated drilling wastes as a solid

substrate for growing wetlands vegetation and restoring 

wetlands. The original project consisted of laboratory mesocosm studies by Southeastern Louisiana University (SLU) on

freshwater wetland vegetation in a greenhouse research facility,

followed by a proposed field demonstration. These studies

showed that one of the two methods used to treat the drilling

wastes produced a substrate that effectively grew some species

of freshwater wetland vegetation to an extent comparable to

that of dredged sediments. Because of difficulties in obtaining

regulatory permission to demonstrate the process in the field,

the mesocosm investigations continued and incorporated the

effects of increasing salinity levels and brackish and salt marsh

vegetation, thereby simulating the range of conditions that

may be experienced in the field. To support these studies,

several improved drilling waste treatment methods are being

developed by M-I, a developer, manufacturer, and marketer of

drilling and completion fluids. On the basis of positive

results, a second round of studies is currently underway. 

The project, if successful, would benefit the oil-and-gas

industry, local communities, and the environment by providing a beneficial reuse for waste materials, reducing waste

management costs, and improving wetlands. Once demonstrated, the concept could be expanded to other types of nonhazardous solid waste material. 

Sustainable Development Potential 

of the Project

The program converts a waste material into a beneficial

reuse that is helping to mitigate impaired wetlands, a major

environmental problem facing coastal Louisiana and other

Gulf Coast states. If the concept of using drill cuttings to

restore wetlands in coastal marshy locations is successful, it

may be extended to restoring additional wetland acreage. The

restoration program could also potentially be expanded to use

other types of large-volume, low-toxicity solids. 

Technical Data

The technique uses solar power to separate drilling fluids

from drill cuttings. The program assumed there would be

15,000 bbl of drilling waste per well. This could restore 1.5

acres per oil or gas well. Between 

10 and 100 wells are drilled annually in the Louisiana marshes. If all these drilling wastes were used for restoration,

between 15 and 150 acres per year could be restored.

Technology Transfer Potential 

The approach could work worldwide in areas where oil

and gas drilling are occurring or near marshy areas. The

resulting cuttings can be cleaned to local standards and used

to restore historically damaged areas and other areas recently

APPENDIX

Restoring Coastal Wetlands Using Drill Cuttings

110 Energy and Water for Sustainable Living

Funding: US$300,000 

Objective: To assess the feasibility of using waste cuttings

from oil and gas drilling for restoring wetlands.

Duration: 1998–present
disturbed by the drilling process. Before the technology can

be accepted for widespread use, well-monitored field trials

must show that the cuttings are a 

suitable growth substrate and that they do not contaminate

surrounding waters. Preliminary 

discussions for using the wetlands restoration approach in

coastal areas of Mexico and Venezuela have occurred.

Participants and Roles

The USDOE’s National Petroleum Technology Office

(NPTO) manages the program and provides funding. SLU

conducted the mesocosm studies, and M-I’s research laboratory has provided several new types of drilling fluids to increase

vegetative growth. Argonne National Laboratory coordinated

project efforts. 

Partner Contacts

John Ford

USDOE/NETL/NPTO

PO Box 3628, Tulsa, OK 74101 USA

Phone: 918-699-2061

Fax: 918-699-2005

E-mail: jford@npto.doe.gov

Mark Hester

University of New Orleans

Dept. of Biological Sciences

Ponchartrain Institute Environmental Studies

New Orleans, LA 70148 USA

Phone: 504-280-6740

E-mail: mhester@uno.edu

John Candler

M-I Drilling Fluids

5950 N. Course Drive

Houston, TX 77072 USA

Phone: 281-561-1320

Fax: 281-561-7240

E-mail: jcandler@midf.com

John Veil

Argonne National Laboratory

955 L’Enfant Plaza, SW, Suite 6000

Washington, DC 20024 USA

Phone: 202-488-2450

Fax: 202-488-2413

E-mail: jveil@anl.gov

Energy and Water for Sustainable Living 111
Summary

The Mallik 2002 methane hydrate well program will 

provide insight into the technical challenges facing the development of natural gas hydrates as an energy supply and will

increase understanding of the role of gas hydrates in global 

climate change. New drilling, production, and geophysical

technologies tested in this project may lead to new industrial

development. Detailed studies of hydrate physical behavior

will provide information to help assess the potential impacts of

their release on future climate change. They will also help in

developing techniques to avoid or mitigate hazardous conditions

posed by gas hydrates to drilling and pipeline construction.

Financing

Of the US$25,000,000 in funding, US$1,000,000 is from

the United States Department of Energy (USDOE) Strategic

Center for Natural Gas (SCNG) within the National Energy

Technology Laboratory (NETL). The remainder comes from a

variety of other government and industrial partners, including

the Japan National Oil Corporation (JNOC), Germany

GeoForschungsZentrum Potsdam (GFZ), Geological Survey of

Canada (GSC), US Geological Survey (USGS), USDOE, India

Ministry of Petroleum and Natural Gas (MOPNG), and the

Canadian Petroleum Industry International Continental

Drilling Program (ICDP).

The Project

A consortium with seven international partners collaborated on a research well program targeted toward producing

methane from hydrates in the Mackenzie Delta of northwestern Canada. The project included the drilling of a 1,200-mdeep main production research well and two nearby scientific

observation wells.

The scientific and engineering research objectives for the

production research well focused on two themes: (1) assessment of the production and properties of gas hydrates, and 

(2) assessment of the stability of continental gas hydrates given

warming trends predicted by climate change models. The

researchers conducted scientific experiments to gain a better

understanding of gas hydrates and to test new drilling techniques and production methods. Full-scale field experiments

were conducted to monitor the physical behavior of the gas

hydrate deposits in response to depressurization and thermal

production stimulation. Canadian scientists are also investigating the possibility of storing carbon dioxide (CO2) in reservoirs previously occupied by gas hydrates as an innovative way

of meeting Canada’s emissions-reduction objectives.

The results from the Mallik 2002 program have increased

our understanding of the role of gas hydrates in global climate

change and will provide insights into the technical challenges

facing the development of natural gas hydrates as an energy

supply. Project success may significantly augment the energy

self-sufficiency of areas with extremely cold winters and those

regions now dependent on others for energy supply.

Sustainable Development Potential 

of the Project

Natural gas is the cleanest burning conventional hydrocarbon and is likely to become a dominant energy source in

the future. Well production tests in Mallik will improve

understanding as to how the gas in natural hydrates can be

harnessed as an energy source. The result may be increased

use of clean-burning methane (relative to sulfurous coal, for

example), which would help to reduce greenhouse gas 

APPENDIX

112 Energy and Water for Sustainable Living

Mallik 2002: An International Research Initiative

Considering Gas Hydrates as a Potential New

Energy Resource

Funding: US$25,000,000 

Objective: To assess gas hydrate properties and the stability

of continental gas hydrates given predicted 

climatic warming trends.

Duration: 2001–2002

Mallik 3L, 4L, 5L

- Spud December 25

- Completion March 14
emissions worldwide. In addition, if investigations into storing CO2 in depleted hydrate reservoirs prove promising, there

may be further reductions in emissions. The new drilling,

production, and geophysical technologies tested in this project

are significant and may lead to new industrial development.

A better understanding of gas hydrates will also help in

assessing potential impacts of their release on future climate

change and in developing techniques to avoid or mitigate hazardous conditions posed by gas hydrates to drilling and

pipeline construction. This fundamental research may ultimately have a significant impact on national energy policies.

Technical Data

Technologies used in the project include Vertical Seismic

Profiling (VSP), crosshole tomography, conventional two- and

three-dimensional seismic surveying, newly developed logging techniques, mass spectrometry, and distributed optical

fiber temperature sensing (DTS).

Technology Transfer Potential 

Approximately 20% of the land area in the Northern

Hemisphere is underlain by permafrost. Consortium members participating in the Mallik project from Germany, Japan,

India, the United States, and Canada will be able to share

with neighboring countries the information on improved

technologies for drilling and production. Scientists will be

better prepared to tailor the technology and production information to regional and local conditions and will help address

the energy concerns that have a direct effect on the economy

and development of these regions.

Participants and Roles

Key research and funding partners include the USDOE,

JNOC, GFZ, GSC, MOPNG, and ICDP.

Partner Contacts

Tom Mroz

USDOE/SCNG/NETL

PO Box 880, 3610 Collins Ferry Road

Morgantown, WV 26507-0880 USA

Phone: 304-285-4071

Fax: 304-285-4403

E-mail: tom.mroz@netl.doe.gov

Scott Dallimore

Terrain Sciences Division

Geological Survey of Canada

PO Box 6000, 9860 West Saanich Road 

Sidney, British Columbia, V8L 4B2 Canada

Phone: 250-363-6423

Fax: 250-363-6565

E-mail: sdallimo@NRCan.gc.ca

Energy and Water for Sustainable Living 113

760 tons of equipment staged in summer,

mobilized to site in December 2001

Taglu Staging Site

760 tons of equipment staged in summer,

Taglu Staging Site
114 Energy and Water for Sustainable Living
Energy and Water for Sustainable Living 115

EXAMPLE ENABLING

POLICY ENVIRONMENT PROGRAMS
Background

The South Asia Regional Initiative (SARI) is a multifaceted initiative aimed at fostering regional cooperation. The

United States Agency for International Development (USAID)

has focused one element of SARI on energy development

(SARI/Energy) and encouraged the cooperation and eventual

trade in energy resources among the countries of South Asia.

Achieving this objective will require firm commitments by the

governments in the region, through national policies and

international agreements, to support cross-border cooperation

in energy and to mobilize critical private-sector capital, technology, and management expertise. 

The SARI/Energy Program serves as a vehicle to bring

together energy-sector players from both public and private

sectors across the region to discuss and resolve issues that

impede cooperation and investment in energy development.

Program support helps countries develop the appropriate 

policy, regulatory, and investment environments to encourage

private-sector investment. Program support is designed to

facilitate a long-term process of rationalizing energy supply

and distribution across the region, which includes the development of the cross-border infrastructure and market mechanisms that will be required for eventual trade in electricity

and natural gas.

The program’s first phase is improving institutional and

professional capacity for making decisions in sustainable energy

development; promoting private-sector participation in and

encouraging civil society support for energy development; and

strengthening regional forums, networks, and associations for

cooperation and advocacy on energy development. By fostering cooperation that builds on mutual economic interests, the

program promotes the use of clean-energy technologies, helps

stimulate economic growth in the region, and expands 

US investment and export opportunities. 

USAID’s Role

USAID provides funding to the AED to develop and provide training in South Asia.

Project Activities

The SARI/Energy Program delivers training opportunities

that bring regional leaders, experts, practitioners, and citizens

together to learn, teach, study, and share experiences and best

practices in environments that foster relationship building and

greater communication and understanding of the technical,

financial, social, and structural benefits, barriers, and issues

related to cross-border cooperation on sustainable energy

practices. AED’s program includes four of the five training

components of the SARI/Energy Training Project: regional grid

and energy exchange; legal, policy, and regulatory frameworks; regulation and regulatory bodies; and energy efficiency. 

The AED’s role in this project is to help demonstrate the

benefits of regional cooperation; transfer knowledge and skills

to institutions and individuals; equip participants with social

marketing skills; share global experiences and best practices

(what does and does not work) in technical areas; and identify

opportunities and barriers to regional cooperation in sustainable energy supply and use.

Outreach to Stakeholders, Information

Sharing, and Skill Building

During 2001, the AED developed and delivered 10 courses

in the 4 technical areas in 4 countries. The AED training

teams trained approximately 250 participants from Bangladesh,

Bhutan, India, Maldives, Nepal, and Sri Lanka from ministries, other government agencies, power companies, the

media, the private sector, and nongovernmental organizations.

The AED also began the development of two distance-learning

courses on Regulation and Environmental Impact Assessments

and launched the training component of the project Web site.

In the year 2002, 12 conventional courses and 4 distancelearning courses in all the programmatic areas are available.

As of April, 89 participants have been trained in 3 courses.

Building a consensus among energy-sector professionals

in the region who can initiate and influence policy changes

requires the direct involvement of a variety of stakeholders

from the region. The AED is reaching some stakeholders

through conventional (face-to-face) training but is also reaching

APPENDIX

South Asia Regional Initiative for Energy

(SARI/Energy) Training

Project: South Asia Regional Initiative for Energy

(SARI/Energy) Training

Location: Bangladesh, Bhutan, India, Maldives, Nepal, and

Sri Lanka

Key Issues: Regional grid and energy exchange; legal, 

policy, and regulatory frameworks; regulation

and regulatory bodies; energy efficiency

Sector: Energy industry, regulators, ministries of power and

energy, independent power producers 

Application: Efficient power-sector management and 

operation in a free-market environment

Implementer: Academy for Educational Development (AED)

Duration: 2000–2003

116 Energy and Water for Sustainable Living
out to a larger group of stakeholders with several alternative

training approaches: 

1. Distribution of course materials via CD-ROM so that participants can share the information with colleagues; 

2. Placement of all course materials on the project Web site

for remote access; and 

3. Development of distance-learning courses (for the Web

site and CD-ROM) to increase the audience outreach at

minimal additional cost. 

The basic objective of these strategies is to provide tools

for multiplying the numbers of those exposed to the material

and thus accelerate the process of awareness, understanding,

and action. These materials also provide a way for course

participants to reinforce their knowledge through easy access

to the information. The philosophy underlying the AED

approach is that the more people with access to information

and understanding, the better the likelihood that policies will

be implemented and supported.

Capacity Building in the Region

The AED is actively exploring the possibility of strengthening the linkages between SARI/Energy and energy-training

institutions in the region by creating knowledge centers that

will ensure continuity of the initiative in energy cooperation

and development in South Asia. About 30 institutions from

all the SARI/Energy countries are being evaluated on the basis

of technical credibility, expertise, resources, and willingness to

actively participate. Ten technical areas related to regional

energy issues have been identified, and about one institution

per technical area will be selected. Through this, the AED

will attempt to build capacity in the regional institutions to

continue the work initiated under the SARI/Energy Project.

Results

This program seeks a critical mass of participants who

will return to their jobs after training and have an individual

or collective impact on their colleagues and institutions regarding regional cooperation in energy. AED training activities provide opportunities for participants to interact with counterparts within the region; to increase understanding of neighboring country perspectives and options; and to strengthen networking with counterparts in other SARI/Energy countries.

Training alumni are helping to spearhead policy changes by

initiating dialogue and bringing regional issues in focus. More

specific outcomes are listed below.

Media Outreach - In recognition of the strong influence of

national and regional media on the public and opinion leaders, the AED held one training course specifically for the

media about regulatory issues in South Asia. In addition, the

AED encourages participation by journalists in other courses.

Specific outcomes of these efforts include:

• Articles written in the Nepalese journal Spotlight - “There

are Vast Opportunities for Regional Cooperation in

Harnessing Energy”

• “Private-Sector Participation Vital to Energy

Restructuring” 

• “Nepal Should Develop Export-Oriented Power

Projects.” 

• Articles written on energy theft by participants in the

Billings and Collections course with follow-up articles subsequently prepared by two daily and weekly newspapers.

Government - Government officials are sharing information with colleagues after attending AED events. After attending a course on Marketing Energy Efficiency, the Director of

the Information Technology Department at the Nepal

Electricity Authority (NEA) reported that he was placing

information on the NEA Intranet and the NEA Web site for

the benefit of the staff and Nepalese people. 

Participants from a course on Regulatory Commissions

have incorporated lessons learned from the course into the

development process of the Bhutanese Regulatory

Commission and into Sri Lanka’s pending electricity laws.

Upon completing a course on Billing and Collection

Issues, a Nepalese participant has been working with his

Director General at the NEA to initiate best practices learned

from Bangladeshi, Sri Lankan, and Maldivian participants

during the course. 

Private Sector - A consultant from the Industrial Services

Bureau in Sri Lanka reports that participation in the

SARI/Energy course on Marketing Energy Efficiency contributed to convincing clients to invest in energy-efficiency

projects. Attendance in the course taught him the tools he

needed to make a convincing case to clients.

Feedback - Finally, the AED has received letters containing

impressions and thanks for course materials from various participants, two examples of which are quoted below. Efforts

will continue to capture the perceptual and tangible outcomes

from the SARI/Energy initiative. 

“The course [Standards and Labeling for Appliances] was

quite relevant to India...as the GOI [Government of India] is

about to establish a lead agency for implementation of the

standards and labeling regime in the country. The experience

of the other countries could be quite useful for framing strategies for enforcement of the regime,” Deputy Secretary,

Ministry of Power, GOI.

“I am entrusted with the responsibility of coordinating

the restructuring process and the media...[attending the

workshop] enabled me to exchange experiences and

ideas...The exposure and experience I received at this workshop would...assist me in carrying out my duties...” Senior

Assistant Secretary, Ministry of Power and Energy, Sri Lanka.

Energy and Water for Sustainable Living 117
Background

The SARI/Energy Program was designed by the United

States Agency for International Development (USAID) to assist

South Asian countries in addressing the challenges of providing sufficient energy for continued economic growth. This

regional initiative complements ongoing bilateral energy programs of the USAID, while coordinating the program’s efforts

with the multilateral banks (Asian Development Bank/World

Bank), other bilateral agencies, local nongovernmental organizations (NGOs), research institutes, the private sector, and

numerous other stakeholders. The SARI/Energy Program’s

objective is to improve South Asian country policies and agreements for cross-border cooperation for sustainable energy to

facilitate the longer-term process of rationalizing the energy

supply and its regional distribution. CORE International,

Inc., is implementing the RES component of the program

through targeted training and institutional capacity-building

activities.

USAID’s Role

USAID provides funding for SARI/Energy RES under the

Electricity Generating Authority of Thailand/Energy and

Environment Training Program (EETP). The SARI/Energy

Program coordinates its efforts with the multilateral development banks (Asian Development Bank and World Bank),

other bilateral agencies of various donor countries, the private

sector, local NGOs, research institutes, industry associations,

and other stakeholders.

Project Activities

Through the EETP, CORE is implementing the RES component of the SARI/Energy Program. The RES Program focuses

on sharing the best practices of the various rural electrification models in order to address the rural energy supply problem that exists throughout South Asia. The “keys to success”

for increasing rural access to energy include building rural

energy institutional capacity; involving the private sector in

rural energy supply; and realizing best rural energy practices

demonstrated in South Asia. Through targeted training activities, CORE is assisting political leaders, utility executives, the

private sector, and other stakeholders to compare the differences between urban and rural distribution utilities and to

build an understanding of the ways to best develop rural 

electric programs in South Asia and expand them beyond the

supply of electricity only. 

The five major components of the RES Program include

(1) identifying a number of best practices regionally shared

that will promote increased availability of commercial energy services to rural and/or lower

income consumers, (2) identifying a number of

new priority plans for increased rural electrification forwarded by regional governments, 

(3) increasing commercial energy services provided to rural and/or lower income consumers,

(4) increasing the means for information

exchanges for promotion of best practices, and

(5) preparing trainers to transfer skills to

increase the availability of commercial energy

services to rural and/or lower income groups

throughout the region.

APPENDIX

South Asia Regional Initiative for Energy

(SARI/Energy) Rural Electrification Services (RES)

118 Energy and Water for Sustainable Living

Project: South Asia Regional Initiative for Energy

(SARI/Energy) Rural Electrification Services (RES)

Location: Throughout South Asia (Bangladesh, Bhutan,

India, Maldives, Nepal, Sri Lanka)

Key Issues: Rural energy models and best practices in rural

electrification in South Asia

Sector: Energy, rural energy development, renewable 

energy, financing 

Application: Best practices in rural electrification 

operations, management, planning, 

and financing

Implementer: CORE International, Inc.

Duration: Series of targeted training courses from

September 2000 through June 2003
CORE’s Program activities include site visits and

exchanges, workshops, roundtables, and in-class training.

CORE has completed a workshop on Rural Energy Models

and Best Practices in Bangladesh and five one-week courses

for key South Asia energy officials on a variety of rural energy

planning and implementation issues. These courses include

tariff setting, application of renewable energy technologies to

remote low-density loads, regulating rural electric utilities and

off-grid supply systems, private power financing, and the

roles of NGOs and village-level institutions in rural electrification program development and implementation. 

Results

Because of USAID’s efforts, SARI/Energy’s RES Program is

having an impact. Several examples worth noting include the

use of the successful Bangladesh model of billing and collections by energy officials from Nepal and Sri Lanka; the use of

Nepal’s proven private power law by officials from Sri Lanka

in developing their own private power law for rural applications; and the adaptation of successful elements of the World

Bank/Global Environment Facility (GEF)-funded Energy

Service Delivery Project (ESDP) implemented in Sri Lanka by

energy officials from Bangladesh and Nepal. USAID will be

supporting a follow-up survey of each of the more than 

100 participants thus far in the program to document additional examples of how the SARI/Energy RES training activities have improved their country’s approach to rural energy

operations, planning, financing, renewable energy 

utilization, and rural energy development. 

Energy and Water for Sustainable Living 119
Background

The EEPP is a multiyear activity to support policy, institutional, and regulatory reforms in the environmental sector

that focus on economic and institutional constraints, cleaner

and more efficient energy use, reduced air pollution,

improved waste management, sustainable tourism best practices, and nature conservation. The EEPP is designed to

enable the Government of Egypt to strengthen its priority

environmental policies. It emphasizes improvement of the

system of environmental management and related institutional

capabilities, complements policy measures with related technical assistance, and is designed to maximize flexibility in

addressing current and emerging issues in a dynamic policy

situation. The EEPP reinforces policy development and

implementation with public awareness and training to

increase the participation of Egyptian partners, nongovernmental organizations (NGOs), and the general public, and to

create environmental private-public partnerships.

USAID’S Role

The United States (US) Agency for International

Development (USAID) funded the AED to design and implement the public awareness component of the EEPP, working

in concert with Egyptian counterpart agencies and other

USAID-funded contractors.

Project Activities

The AED provides public awareness, communication,

and education support to the EEPP, a national program serving various stakeholder groups such as government, educators, NGOs, journalists, developers, investors, policy makers,

and the general public. Specific groups within the environmental community that the EEPP has closely supported

include:

• The Egyptian Energy Service Business Association

(EESBA). An industry association, EESBA addresses current market barriers facing the energy-efficiency business

community and works toward solutions that expand

energy-efficiency applications in Egypt. The association

participates in policy development forums, communicates its message to target business groups and government leaders, and helps build the capacity of its members to meet market needs.

• The Organization for Energy Planning (OEP). An independent entity reporting to the Egyptian Ministry of

Petroleum was created to undertake comprehensive and

integrated energy planning within the framework of the

socioeconomic development process in Egypt. 

• The Energy Efficiency Council (EEC). A body of 

12 organizations representing 7 ministries and 2 privatesector groups, the EEC was formed to develop a National

Energy Efficiency Strategy (NEES) and foster interagency

cooperation promoting and guiding energy-efficient practices in Egypt. The EEC is a voluntary consortium of

organizations associated with the generation, distribution, and use of energy resources in Egypt. 

• The Egyptian Syndicate of Journalists.

• The Ministries of State for Environmental Affairs,

Electricity and Energy, and Petroleum.

• Egyptian preparatory and secondary teachers, educators,

and educational NGOs.

Results

The EEPP operated by the AED has reached millions of

people in Egypt’s urban population through various national

press and national public awareness efforts — from sophisticated print media for the professional sector to more accessible general population outreach methods such as road signage.

Direct participants in specific educational activities such as

workshops include 65 environmental journalists from around

the country; 517 teachers from 56 schools in 7 governorates;

170 librarians nationwide; and 20 NGOs from 14 governorates. In every case, efforts were made to achieve gender

equity. Seventy-two products and publications were produced and distributed to over 400,000 people through these

efforts. The general result has been an increased awareness

APPENDIX

Egyptian Environmental Policy Program (EEPP)

Project: Egyptian Environmental Policy Program (EEPP)

Location: Egypt

Key Issues: Environmental policy, institutional and 

regulatory reforms, energy efficiency, clean

energy, waste management, sustainable

tourism, nature conservation

Sector: Energy industry, regulators, ministries of power 

and energy 

Application: Training, social marketing, consensus building

Implementer: Academy for Educational Development (AED)

Duration: 2000–2001

120 Energy and Water for Sustainable Living
and public understanding of the benefits and importance of

resource conservation and the institutions that are charged

with their protection. More specific outcomes are listed below.

• EESBA: Through this program, the AED provided public

awareness information and materials as well as support

for the establishment of EESBA’s membership, including

energy service companies, energy-efficiency equipment

and service providers, financial institutions, relevant government agencies, and consulting firms associated with

the energy service business. 

• OED: As part of the EEPP, the AED worked to strengthen

OEP’s institutional capacity through production and dissemination of public awareness and information materials on a national energy-efficiency strategy. 

• EEC: The AED has worked with and contributed to the

operation of the EEC and provided pivotal assistance in

the development of the NEES.

• Egyptian journalists: The AED participated with others 

in staging a briefing on energy efficiency in Cairo in

December 2001 for more than 65 journalists involved in

the Egyptian Syndicate of Journalists. The session entitled “Energy Efficiency and Future Challenges” was

organized to increase the knowledge and understanding

of print and broadcast media representatives about energy

resources, consumption patterns, and energy pricing.

The session included a video produced by the AED featuring the history of energy and current energy-efficient

technologies available in Egypt, along with best practices

in energy conservation and presentations by the Egyptian

Environmental Affairs Agency, EESBA, and other industry

groups. Products from the session included a series of 

10 fact sheets on energy consumption and energy-efficient

technology in Egypt, produced and disseminated by the

AED. Over 65 journalists attended the workshop representing public and private newspapers, TV stations,

radio, and magazines.

• Ministries: The AED and the Al Ahram newspaper

cosponsored a policy symposium on “Energy and

Sustainable Development” in June 2001, spearheaded by

the Minister of State for Environmental Affairs, the

Minister of Electricity and Energy, and the Minister of

Petroleum. With 130 participants representing policy

makers and academics, the seminar marked an important

milestone as it gave the largest press institution in Egypt

the opportunity to take ownership of the energy-efficiency

issue and find a visible spot for it on the Egyptian political agenda. Al Ahram, the largest newspaper with the

heaviest circulation in Egypt, featured full-page articles on

the symposium and energy efficiency in Egypt in three

subsequent issues of the Friday edition of the paper, the

edition with the largest circulation. As a follow-on to

these activities, a workshop was held, and the proceedings were published and disseminated widely among participants and other relevant stakeholder groups.

• EEC: The AED contributed to the public awareness of

the EEC through publications and media coverage,

resulting in the EEC being publicly acknowledged as the

body leading the preparation of energy-efficiency policy.

The AED sponsored a series of workshops and retreats

for the development of the NEES, which serves as a road

map to increase Egypt’s efficient use of its natural

resources. The project further assisted the EEC in forming strategic alliances with the media, investors’ associations, NGOs, policy makers, financial institutions, international organizations, educational institutions, and

research organizations.

• Educational community: The AED completed the

research and development of an educational learning

supplement for preparatory and secondary teachers in

schools and educators in NGOs in Egypt. The learning

supplement allows educators to integrate energy-efficiency

concepts in existing curriculum and nonformal education programs. The package includes fact sheets, background papers, classroom-tested learning activities, a 

15-minute video on energy efficiency in Egypt, and a

CD-ROM. The learning supplement is distributed at

workshops demonstrating the best use of the materials

for age-appropriate learning experiences. These workshops build on previous solid waste management and

environmental education workshops, both of which

included sections on energy efficiency.

Energy and Water for Sustainable Living 121
Background

The Government of Egypt is establishing and organizing

the Electric Utility and Consumer Protection Regulatory

Agency as a financially independent regulatory agency within

the Ministry of Electricity and Energy. The purpose of this

program is to provide technical support and training to the

Electric Utility and Consumer Protection Regulatory Agency

regarding personnel, resources, and capacity building to assist

the Managing Director and agency staff in becoming fully

operational as rapidly and efficiently as possible.

USAID’S Role

The United States Agency for International Development

(USAID) mission in Egypt has had a long history of involvement in promoting change and sustainability in the Egyptian

power sector. Beginning in 1994, the Government of Egypt

enacted new laws and decrees that have resulted in major

power-sector reforms. There is increasing recognition of the

importance of private-sector participation, which requires the

functioning of an independent regulator in order to be maximized. The program carried out by the AED reflects the continued commitment to power-sector restructuring and privatization by the Government of Egypt through support for

improved decision making and management by host country

institutions. It further reflects the long-standing commitment

of USAID to meeting the challenges of economic, financial,

social, and environmental sustainability of the Egyptian power

sector. USAID is currently supporting four projects to reform

the electricity sector, of which EERP is one. The EERP Team

works closely with colleagues in other USAID energy projects. 

Project Activities

The EERP Team provides a combination of training and

technical assistance. The project is leading 10 tasks, designed

to provide the needed technical assistance and training to the

Regulatory Agency so that the agency is fully operational and

the Managing Director and his staff are skilled at meeting the

responsibilities assigned to them in the enabling Presidential

Decree. Activities include development of a Strategic Plan and

an Information Plan for the agency, together with the software

and hardware to carry out the Information Plan. The EERP is

providing technical assistance and training in tariffs, licenses,

contracts, procedural guidelines for tariffs and licenses, codes

of conduct for participants in a reformed, competitive power

market, and development of a consumer protection system for

the agency. The project brings specialists in utility regulation

from the US for focused training events to complement the

project training. 

Results

The EERP has provided significant technical assistance

and training to the Egyptian Regulatory Agency since its

launch in August 2001. As the agency’s Managing Director,

Dr. Mohammed El Sobki (pictured) continues to develop his

technical team and office infrastructure. The EERP Team has

served as his virtual staff and technical advisory team combined. Specific accomplishments and results of the program

to date include:

• Publication of a series of more than 20 technical

reports on the most pressing aspects of regulatory

APPENDIX

Egyptian Electric Regulatory Project (EERP)

Project: Egyptian Electric Regulatory Project (EERP)

Location: Cairo, Egypt

Key Issues: Energy policy, institutional and regulatory

reforms

Sector: Energy industry, regulators, ministries of electricity

and energy 

Application: Increased access to sustainable utility services

Implementer: Academy for Educational Development (AED)

Duration: August 1, 2001, to January 31, 2003

122 Energy and Water for Sustainable Living
practice: licensing and tariffs. Result: The agency is

well-poised for licensing private entrants into the energy

marketplace and for ensuring the creation of reasonable

and fair tariffs as the advent of actual privatization draws

near. Prompt and reasonable treatment will set an important tone for a smooth transition to the new market system.

• Seven training presentations have been made with

guest faculty from a range of areas of expertise in

energy-sector regulation. Result: Identified new regulatory staff have already secured a strong foundation of

knowledge regarding their emerging roles and responsibilities. EERP’s efforts are helping to ensure that the staff

will be ready for the tasks ahead regardless of delays

being experienced in formal staff hiring and reassignment.

• Rules and procedures for the agency have been produced by the EERP, translated into Arabic, reviewed

by legal counsel, and widely distributed. Result: A

most important tool for infrastructure development has

been disseminated in a form readily accessible to all parties, helping to set an important tone of transparency

that is a cornerstone of effective regulation. 

• Development of the Needs Assessment Report for the

Information Management System. Result: This 

document first provides the blueprint for equipment

purchase, system design, and installation that will take

place during this next phase of work. Second and more

important, the designed system will facilitate accessibility

to a complex flow of information in a manner that will

underscore a philosophy of transparency. The system

design effectively balances the need for confidentiality of

data from market actors, while providing consumers and

regulators with access to the information necessary for

ensuring fair conduct and accomplishing the various 

regulatory oversight functions. 

• EERP senior team members and guest faculty participate in monthly meetings of the agency’s Board of

Directors. Result: The initial commitment made by

the Project Chief of Party to the Board of Directors when

the project was launched was to fully serve the needs of

the agency and to act as an “extension of staff” until such

time as the permanent staff is in place and fully functioning. This message has been consistently reinforced by the

responsiveness of the EERP to the Board and Agency

Director regarding inquiries on various regulatory issues,

precedents, and challenges. The regular invited attendance of senior EERP staff underscores the regard in

which the team and its work product is held by the

Board of Directors, and is a relationship that helps to

strengthen the confidence of decision makers, in general,

regarding the uncharted waters of energy-sector reform. 

There is a critical dimension to this list of accomplishments that must be recognized in any consideration of

“results.” The rapid development of technical products is

helping to quickly educate all stakeholders, including the

Agency Board of Directors, which approves agency expenditures and, as such, controls the speed with which the agency

is deployed, thus ensuring that the reform process continues

to move forward. The momentum created and sustained by

the EERP Team is a strong impediment to the inertia that can

sometimes plague processes of major change such as sector

reform. As the project continues to maintain its steady pace

and expand its audiences to the public sector and other indirect parties, the process of change may accelerate. Even so,

regardless of the pace of change, a strong foothold of regulatory capacity has been built through the significant assistance

of the EERP. As the next phase of work proceeds — including purchase and installation of the Regulatory Agency

Information System, and two US-based Study Tours for staff,

Board of Director members, and opinion leaders in the energy

sector — market participants and consumers alike will expand

their understanding of and faith in the independent role and

functions of the emerging Egyptian Regulatory Agency.

Energy and Water for Sustainable Living 123
124 Energy and Water for Sustainable Living