Promoting Growth through Sustainable and Efficient Energy Consumption in Commercial Sector

1. Promoting Growth through Sustainable and Efficient Energy Consumption in Commercial Sector

2. Overall Objectives of NAMA Promoting Belize’s low carbon development to achieve sustainable growth of businesses and greater returns on investments • focus is on large and medium sized commercials to adopt EE production and operations because 2/3 of national energy saving potential is in Commercial sector, • Developing standards and labels to promote adoption of EE technologies; • Introduce financial incentives to establish a fully operational market for EE technologies; • Developing a regulatory framework to ensure compliance;

4. National development strategies & Policies • Sustainable Energy Action Plan (refers to labelling and certification systems in chapter 1), completed, • Rural Electrification Strategy and Action Plan (EU supported, on-going), • Draft Utility Energy Services Model (under discussion, goal to develop a market place, including audits and auctions), • Assessing National Innovation Systems (completed, next step: Industrial Policy to mainstream EE in the industry), With the overall objective to achieve the SDGs, including the NDC targets.

5. Technical Interventions 3 Key Goals: • Existing Commercials: Replacing existing non-efficient technologies with more efficient appliances and fixtures; in the mid-term retrofit of windows/roofs (through a regional standard under discussion); • New Commercials: Adopt the mandatory building code (forthcoming, 2017) and implement energy efficient technologies; • Early Actions will focus on the following technologies: AC/cooling, solar water heaters, lighting, refrigeration, smart metering and electrical fixtures;

6. Early Actions EE measures in Commercials through adoption of: • AC/cooling, • solar water heaters, • lighting, • refrigeration, • smart metering and electrical fixtures;

7. Early Actions – Unit Costs • AC/cooling: BZ$ 12,500 (unit/5t) • solar water heaters: BZ$ 14,000 (unit/2000l) • Lighting: BZ$ 30 (LED 9W) • Refrigeration: BZ$ 3,500 (unit 30cf) • smart metering: BZ$ 500 • electrical fixtures: BZ$ 100

8. Early Actions – Scale • AC/cooling: BZ$ 12,500 x 6 (per commercial) x 1200 • solar water heaters: BZ$ 14,000 x 1 (per hotel) x 300 • Lighting: BZ$ 30 x 100 (per system) x 1500 • Refrigeration: BZ$ 3,500 x 10 (per system) x 1500 • smart metering: BZ$ 500 x 1 (per system) x 1500 • electrical fixtures: BZ$ 100 x 20 (per systems) x 1500

9. Early Actions – Total Costs • AC/cooling: BZ$ 90,000,000 • solar water heaters: BZ$ 4,200,000 • Lighting: BZ$ 4,500,000 • Refrigeration: BZ$ 52,500,000 • smart metering: BZ$ 750,000 • electrical fixtures: BZ$ 3,000,000 Total Costs: BZ$ 154,950,000

10. Supporting Measures - Policy • Develop new standards (lighting completed, refrigeration on-going, AC and others forthcoming); • Adopt Caribbean labelling system (on-going); • Fiscal measures (penalty mechanism/banning) • MRA with Mexico to use their MRV system; • Establish legal framework and enforcement mechanisms, including reporting requirements of establishments; • Adopt Caribbean building code (on-going); Costs of Enforcement: BZ$ 250,000 annually (x 3 years)

11. Supporting Measures – Technical Assistance • Market and SD Impact Assessment (identify costs, financing and socio-economic impacts) – request for external assistance (2017); Costs: BZ$ 200,000 • Technical Assistance to build an MRV system to assess the GHG & SD impacts of the policies and actions; Costs: BZ$ 100,000

12. Supporting Measures – Awareness & Capacity Building • Capacity development to operate the MRV system; • Capacity of overall supply chain, including vendors, technology providers through new training courses with accredited training institutes (Caribbean accreditation mechanism is on-going); Cost: BZ$ 500,000 • Best practice guide (tools); Cost: BZ$ 70,000 • Benchmarking and award systems for best performing establishments; • Systematic dialogs with industry leaders and government; • Behavioural change in establishments through staff trainings;

13. Supporting Measures – Total Costs • Costs of Enforcement of Policies and Regulations: BZ$ 250,000 annually (x 3 years): BZ$ 750,000 • Market and SD Impact Assessment: BZ$ 200,000 • Technical Assistance to build an MRV system: BZ$ 100,000 • Capacity of overall supply chain: BZ$ 500,000 • Best practice guide (tools); BZ$ 70,000 Total Costs: BZ$ 1,620,000

14. Finance mechanism – International Grants Supporting Measures: BZ$ 1,620,000 Enabling environment, technical studies and assessments, capacity development and trainings:

15. Finance mechanism - Loans Utility Energy Service Model – develop an energy efficiency portfolio (successfully implemented in several states of the USA): • Model tested for 3 years on commercials and then decide to scale-up; • Premium of EE technology and energy efficient fixtures is covered by utility; • Only ‘star’ certified equipment is eligible; Green funding line set up through the development bank of Belize: • Revolving loan fund to incentivize retrofits; • Seed grant funding of BZ$ 10-20mio through international donor; • Pilot on-going (BZ$ 2mio) to test immediate cash flow benefit;

16. Institutional arrangements – Management and Funds Oversight, Coordination and implementation: Ministry of Public Services, Energy, Public Utilities (MPSEPU) Grants: Ministry of Economic Development Revolving Green Loan Fund: Development Finance Corporation Energy Service Model: Belize Electricity Limited • Implementation through Energy End Use Working Group: • Bureau of Standards, • Department of Environment, • National Climate Change Office, • Customs and Excise • CBA etc.

17. Institutional arrangements - MRV • Ministry of Sustainable Development (MAFFESD) • Reporting vis a vis UNFCCC Compilation of data for GHG ERs, support received (financial), SD impacts:Ministry of Public Services, Energy, Public Utilities (submit to MAFFESD)

18. Implementation steps and timeframe

19. National Contact: Ambrose Tillet Energy Director