17 October 2014
ECLAC Evaluates Central America’s Progress in Energy Efficiency
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The Subregional Headquarters in Mexico of the UN Economic Commission for Latin America and the Caribbean (ECLAC) has launched a detailed study on energy efficiency (EE) in Central America.

The publication analyzes the advances made by the region's countries since the approval of the ‘Central American Sustainable Energy Strategy 2020' in 2007.

ECLAC8 September 2014: The UN Economic Commission for Latin America and the Caribbean (ECLAC) Subregional Headquarters in Mexico has launched a study on energy efficiency (EE) in Central America. The publication analyzes the advances made by the region since the approval of the ‘Central American Sustainable Energy Strategy 2020,’ in 2007.

The Strategy, which was developed with support from ECLAC, is centered on promoting sustainable development of the region’s energy sector, and comprises four EE goals: lighting, refrigerators and industrial electric motors; electricity transmission and distribution losses; oil derivative consumption in transport; and sustainable, efficient and clean firewood stoves in rural areas.

The study, titled ‘Energy Efficiency in Central America: Progress and Action towards the Fulfillment of the Goals of the Central American Sustainable Energy Strategy’: examines the impetus and role of EE programmes in the region; provides a situational analysis of EE legislation in the region’s countries; quantifies the potential for progress in EE in the region; and presents policy recommendations.

On the motive for the Strategy, the study explains it arose from regional discussions to address the 2000s’ oil price crisis. The study observes great variation in the current status of EE programmes and activities, and energy sector reform between countries. While high oil prices have raised awareness among stakeholders on the importance of EE in net oil importing countries, supply of electricity and pricing issues continue to overshadow the creation and strengthening of institutions focusing on EE.

The study identifies two energy service models, characterized by high government involvement and full or partial liberalization, respectively. It presents examples of countries using each of the models (Costa Rica and Panama) that have successfully adopted a legal framework for EE. It further identifies progress in activities in countries where the private sector and universities have taken the lead in promoting EE within their respective areas, but notes that the high dependence on international cooperation in EE programmes is a sign of a lack of knowledge among users on how to operationalize EE.

The study concludes that, despite the goals of the Energy Strategy 2020 being conservative, their achievement will not be easy, in particular in the transportation sector, and in the reduction of power losses in Honduras and Nicaragua. Given that the goals for energy-efficient lighting seem achievable, the study recommends a regional programme in this area, which could pave the way for other initiatives.

Since some countries in the region are deemed as unlikely to pass EE legislation in the medium term, the authors recommend establishing mechanisms to ensure the continuity of existing and planned EE activities and programmes, in particular after changes in administration. The study also highlights the UN Sustainable Energy for All (SE4ALL) initiative as providing a potential bridge in this respect. [ECLAC Publication Webpage] [Publication: Energy Efficiency in Central America: Progress and Action towards the Fulfillment of the Goals of the Central American Sustainable Energy Strategy]

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