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Pitch

Highly replicable solution for Latin America reality based on local energy interaction strategy to create a win-win network to GHG reduction


Description

Summary


A brilliant idea is to recognize what is the real state of the problem and how you can handle it

According to CEPAL, turning point towards clean future is the inclusion of mitigation of emissions, through Energy efficiency(EE) and tech improvements. However, OLADE explained in the most favorable case, the matrix will keep fossil fuels percentage and will change by 4 to 10% in Renewable Energy (RE).


Key action is recognizing the importance of working in Mega Cities

Latin America(LATAM) needs a solution approach to real state of cities. Actually, solutions must be based in an structural energy change more than a new tech. Tech will come naturally.

Now we need to create an appropriate background for cities, according to an strategic tool that can show everyone what are the benefits(monetary) due to investing in energy management at the local level. Demonstrate EE and RE, through a LEIS, is a transition mechanism to development.


In LATAM lack of development had caused problems in; life quality, EE at industry and bad use of resources.Incorporation of LIES, assuming a natural condition of developing in more than the 80% of cities, is the turning point. This will boost a better use of natural resources and waste, EE in local areas and a new market to the inclusion of RE. Finally, the development of a win-win action between society and industry, this will represent a 20% of GHG reduction.

The LEIS is replicable in each city of LATAM, but should include some cultural aspects and proper know-how. Barriers as, limited skills of local team leaders & professionals,lack of communication-strategies to create networks, self-initiatives of industry, and tools to offer solutions to create mutual benefit to engaging decision-makers from industry.


 

MODEL:

LIES + "Regional Energy Platform" (website), are the base of a full program of Energy development.The Regional Energy Platform is a unique tool that will revolutionize the local development. It will create a full informative profile to attract investors to their communities after completing LIES process


 

 


Category of the action

Reducing emissions from electric power sector.


What actions do you propose?

The Local Energy Integration Strategy includes several steps that will be modeling the final view and goals of each local community. Usually, each district has different level of knowledge. In general, they are completely lack of experience in energy-economic development. Now, each one must be tracked by an energy regional team (Local deputy agency) over the rest of the implementation. This group  must create the first local capability, according to what are the specific networks, knowledge, potential and opportunities that every districts offer and need. Over an specific period of time, each new energy manager (per Municipality) will be part of periodic sessions and workshops, meetings to asses real cases and understand the methodology, exams and certifications, and finally an accreditation to demonstrate he is ready to start a local energy integration strategy, and make it worthwhile.

In the monitoring and showing results, we need a round project based on the LIES and using a visibility channel through a Regional Energy Platform website. The Regional Energy Platform is a unique model, It shows whether the private sector or other sectors the current supported ideas and investments available per each city and municipality. It is completed by the LIES, and it is manage by national teams.

Sketch of a LIES and Regional Energy Platform:

Sign in in Regional Energy Platform and waiting for the authorization of regional managers:

Get inwww.regionalenergyplatform.org


Then select your country, city and report the new information thank LIES in to the platform. The information will appear after a week of recognition:


Once the local energy manager upload and update the information the symbol will vary from "in progress" to "LIES Completed". 

Full description:

Step by step: Stage 1 "LIES", Stage 2 "upload to the Regional Energy Platform", Stage  3: Let the private implement local projects.

  • STAGE 1:

1) The first action is the installation of the energy management capabilities in the regional government team or local deputy agency. Decentralization is a very important concept to include always. This group of people should be able to interact with each energy manager of each municipality. They must transmit their knowledge to each energy manager, in order to identify their own district profile, and create a district team able to understand and create the local energy interaction strategy for themselves. The focus here is the understanding of an economic and energy model/plan to be implemented in their local industries and communities, as a long term plan.

This action must be done by experts. But, all the LIES is based on understand what is the Latin American reality. Expert in Local Strategies can be found in the Canada and England. Switzerland is a good option as well.

The second action is the integration of a territorial understanding plan. It must show an accurate interaction of each industry, village, commercial and public building and natural resources existing. Finally, define a baseline of consume, demand and wastes of the district. At this level the energy manager must define the pareto principle (80/20) to be effective in short terms.

This action must be done by the introduction of an engineer expert in geography and a sociologist or anthropologist expert in communities relationships. This person can create a general plan of the whole national or regional program. It does not need to be defined per district or municipality.

The third action (what are the unknown variables) is the understanding of Local Industry and big consumers. Even though, money spend it for the integration of a local energy strategy in LATAM is focus in reducing emission of GHG in cities, residential and commercial trade are usually  the main problems of each district or society, but this something we need to realized after understanding the unknown variables and problem of each city.

For instance, the main problem of emissions during winter in Santiago are basically heating systems and transportation, it sounds easy to realized, but it needs to be very determined before taking actions.

For example, industry is just the 11% of the whole problem. Just 8 district of 52 are the 30% of emissions and transportation reach 32%. Heating system that basically create the catastrophic indicator of pollution in Santiago, are basically due to firewood use. Therefore, we must understand how the structure of each district is, and how the system interaction flow during a period of time. This include; understanding of; local industries, recognizing real problems, defining natural resources life cycle, highlight more inefficient industries and corporation. (Figures from question above: Differences of a district with a Local Energy interaction Strategy and one without)

This action must be done in agreement with a economic expert, first and then all the information gathered usually help to the energy manager. This person can create a general plan of the whole national or regional program. It does not need to be defined per district or municipality.

The fourth action is the estimation of the local potential in Energy efficiency and renewable energy solutions . This helps to match the vision of the local community and the future projects of each society. This stage is very important, due to the relationship that should be created at this time with the industry. Energy efficiency means decreasing payments, even when it sounds unbelievable, in LATAM, small industries do not know anything about it. Now you can figure how difficult could be try to install as a first approach or chance a different technology. They usually reject new ideas saying “Why me and not my neighbor?, Why should I invest and not the others?”

The fifth action is the definition of a business model that can be attractive for the chosen industries that can find a win-win benefit with the local municipalities. Anyway, in case there is no economical proposal accepted, the local municipality can define what are the lines that want to developed and define a short, middle and long term projects, that reflect the whole system interaction looking for a sustainable future.

This proposal must come together with an assessment of GHG reduction per each case. According to all the ideas and based on the government funds and international as well, each municipality define a proposal Gantt for the next years. This stage must be validated with the communities and societies of the district, in order to be judged and analyzed by leaders of each association.

 The most successful model will be always the one that include the local industry agreement!

The LIES can be defined (to citizens) as a list of project already validated by them, that according to experts, must be implemented in short, middle and long term in order to be a sustainable district, free of an intensive GHG emission and with a clean energy matrix.

  • STAGE 2

Currently, the Ministry of Energy (Chile) has implemented a Local Energy Strategy. This first approach to this concept will help to understand what are the real barriers, problems and main concern to take care for a more complex and future plan.

The Regional Energy Platform is a webpage that allows LIES teams, to relate investors and local communities as the key to success. It shows what are the potentials of each area, what the people is able to support and finally, what the people wants and need to accept a project. It will solve one of the most difficult problem that current projects are living. The acceptance of communities and local authorities.

It will be able atwww.regionalenergyplatform.orgThe webpage would look pretty similar per each municipality/community. It will vary just the information, depending on the level of development and the name of the municipality and where it belong to.

In the webpage each City has their own local communities or municipalities, and according to the percentage of LIES development it will be easier to get along with a private company or not.

The Regional Energy Platform is a management tool that receive as an input all the information gathered and analyzed in local diagnostic developed in LIES, per community. Every local manager feed this platform and at the end of the implementation of LIES the platform allows the private-public sector and citizens to understand what are the opportunities, requirements, potential and investments that each municipality/community will accept without any problem or delay. Therefore, it will be easy to realize what are the best projects to invest, the most acceptable ideas and the most cost-effective decisions to take.

 


Who will take these actions?

The LIES imply a multidisciplinary interaction between each organization that belong to the district or play a leadership role like a government institution

Actually, governments, as Central and local levels, play a key role at the beginning, and this is going reducing labor hours needed overtime

The first strike must be done by the Ministry of Energy. Creating strong managing and financial skills at every local deputy agency. This stage must be understood as a key stage of gathering information.

Include the understanding of local economy and industry, definition of key actors such as big consumers, main buildings,  public buildings, energy matrix, transportation system expenditures and their problems, and finally a transversal understanding of environmental knowledge of the region. It is quite probable that each Municipality know more about environment as a daily routine of each district  than real environmental problems such as pollution, recycling and and waste

Industries, businesses and commercial organizations are all gathered in the same group. They are not part of game until the local energy manager create a relationship or proposal to each institution

The LIES is implemented by each Municipality. Therefore, they must understand what is the Benefit Transfer  of implement the plan. The interaction with the industry is the key of succeed. Overtime, the relationship created with them will define what is the possible goal to reach. How much money are they able to invest according to the proposal that the local energy manager was able to create. At this stage the importance of have had an excellent training in the LIES will be tested as a real problem.

The Regional Energy Platform is led by the Ministry of Energy in each country. Basically, it is a platform where every regional manager feed it and then it shows what are the vision, proper project, community aprovals and local energy potential with the investment required.


Where will these actions be taken?

Municipalities, districts and regions are the headquarters of this project in the implementation step.

During the first step, capacities are created in the local deputy agency during the time that the regional leader consider necessary.

In this particular case, actions will be replicable in each Municipality of every City:

Santiago  (52 Municipalities)

Concepcion (12 municipalities)

Lima, (43 Municipalities)

Arequipa (16 Municipalities)

Bogota (20  Municipalities) 

Barranquilla (5 Municipalities)

Cartagena de Indias (15 Municipalities)

Sao Paulo (16 Micro Regions, More than 80 Municipalities)

Río de Janeiro (25 Municipalities)

Salvador de Bahía (18 Municipalities)

Guayaquil (17 Municipalities)

Caracas (5.280.364)

Maracaivo 

Buenos Aires (15 comunas) 


How much will emissions be reduced or sequestered vs. business as usual levels?

Reduction depends in several variables such as, nº inhabitants,  city architecture, industry type and local development

Most of district that accept the challenge of define a goal of GHG reduction use the 20% as a objective of reduction

In a high society district of Santiago, the emission reached  200.000 Ton Co2/year in 2014. Therefore, a 20% in a representative district, without industry, is 40.000 Ton . In an Industrialized district or in a firewood consumer district, the number is close to 350.000 Ton/year, therefore, the goal of 20% (maybe is too much) will reach a 70.000 Ton/year. Considering an average of 30 district per mega city and  50.000 Ton/year. the reduction of GHG could reach 1.500.000  Ton CO2/year.

Impressible good number compared to what can one industry do by its own. ( 20.000 Ton CO2/year)

According to local strategies in Europe, after more than 20 years of developing strategies they are able to reduce in some cases 40% of GHG, or  double Energy investments in the area

 


What are other key benefits?

  1. It is created a value proposition to change energy consumption habits
  2. It allows to society star a revolutionary program that involve them into a  new world of ideas.
  3. It creates jobs opportunities.(more than 90 new opportunities per community with LIES)
  4. It shows another way to reduce pollution and GHG.
  5. Decentralization of main areas of consumption.
  6. It creates long term capables teams, and valuable know-how to local districts.
  7. It creates links between governmental institutions and local municipalities, districts and local industries.
  8. Save money to local governments and in a long term to the country.
  9. It will help to create a public policies into the central government.
  10. Less wastes along the local areas.


What are the proposal’s costs?

To implement an initiative with successful results there are a lot of paradigms to break.

First, It is needed a full program to create capabilities into the government. That takes at least 6 month, including organization, workshops, certifications and travels.

The first estimation is close to 150.000 USD for a 6 month training  program that include salaries of professionals, experts, travels and workshops in 15 regions (will change according to each country organization, this was asses for Chile).

Second, there are 2 year program each region should implement to obtain middle term results. Probably, It exists districts that are very advance in terms of organization and people capacities. They can obtain results very fast, in one year at least. The 2 year program costs, that allow to reach all the municipalities good results are estimated in 15.322 USD / Municipality. This estimation was done considering consultation of experts prices in Chile, and salaries of Chilean professionals.

The last expense to consider is the funding. After some districts or Municipalities are ready with their LIES, there must be an atractive fund to implement strategic projects. To be reasonable each district should have an specific amount of 150.000 USD to make a project true.

Finally, the investment of  176.860 USD/ Municipality hasa "Benefit Transfer"(19) impact that include, health savings, energy saving, emission mitigation savings and local job as a new opportunity to save. All this aspects are part of a research that should be done, an currently it does not exist.


Time line

Chilean experience will help to understand the LATAM society. Their time, costs and reality. Until now it has shown excelent results. According to those results, it will be easy to set up some features of the system such as; people understanding, local authorities opinion, consultancy services quality and private sector opportunities.

Several steps were described above. Now the timeline was determined according to that.

The next timeline is according to one municipality/community. Therefore the timeline of 5 communities per year is quite acceptable.

According to an estimation of capacities in local teams, it is possible to work in groups of 5 Municipalities per year (rate of 5 municipality/year) according to this: 

All this number can vary according to the number of professionals and budget each government or district has. After 10 year each district in Latin America will reach a LIES implemented obtained the number that are proposed in this project.

At the same progress of each community develop their own LIES, the information will be available in to the Regional Energy Platform. Therefore, at least 5 municipalities/communities per year will be adding a complete profile to determine the investment level and profitability of each community. Actually, it is the best chance for local people to explain private investors what are the local project needed by people. Finally, if the investors identify a project of their interest, they will automatically know what is the community need to fit into their planning  and developing local program.

 


Related proposals

Every proposal fits with LIES and its Regional Energy Platform. Nowadays, projects fail because of people rejection. Most of project that are important for the development of country take a lot of time to star the construction. Mostly because people are not well informed about the topic and the implications. With LIES it is created a first approach to the whole community. People will be informed and they will be pretty clear about their right and their opportunities to grow as a society according to the private investments. According to this, VALHALLA is completely related with LIES and the Regional Energy Platform. Both, this and another project with the same technology, depending if it is suitable and replicable, can be well adopted by people if they are informed. Moreover, the investors have access to the platform, thus they can analyze each community and their potential to take a good decision.


References

1.      http://www.cepal.org/en

2.      http://www.olade.org/

http://europa.eu/legislation_summaries/energy/european_energy_policy/en0025_en.htm      

4.- homemade source, Ministry of Environmental, Chile. 2015 

http://www.minenergia.cl/estrategialocal

6.-http://es.wikipedia.org/wiki/Provincia_de_Concepci%C3%B3n_%28Chile%29

7.       http://www.tierra-inca.com/album/cartes/lima_districts.php?lg=es

8.      http://www.tierra-inca.com/album/cartes/lima_districts.php?lg=es

9.     http://es.wikipedia.org/wiki/Categor%C3%ADa:Localidades_de_Bogot%C3%A1

10.     http://es.wikipedia.org/wiki/Barrios_de_Barranquilla

11.     http://es.wikipedia.org/wiki/Municipios_de_S%C3%A3o_Paulo

12.     http://es.wikipedia.org/wiki/Categor%C3%ADa:Barrios_de_R%C3%ADo_de_Janeiro

13.  http://pt.wikipedia.org/wiki/Lista_de_subdivis%C3%B5es_de_Salvador_%28Bahia%29

14.  http://es.wikipedia.org/wiki/Barrios_de_Guayaquil

15.  http://es.wikipedia.org/wiki/Caracas

16.   http://es.wikipedia.org/wiki/Anexo:Ciudades_de_Am%C3%A9rica_por_poblaci%C3%B3n

17.   http://es.wikipedia.org/wiki/Comunas_de_la_Ciudad_de_Buenos_Aires

18.   http://www.nestle.cl/creatingsharedvalue/sustentabilidad/cambio-climatico-gstion-energetica

19.   Ministry of Energy Chile (www.minenergia.cl)

20.   University of Chilewww.udechile.cl

21.  http://www.civicgovernance.ca/wordpress/wp-content/uploads/Columbia_energy_strategy_web_final.pdf

http://www.sciencedirect.com/science/article/pii/S0921800906001893