Promoting energy efficiency and transformation of the refrigerating appliances market in Ghana

17-04-2014
01-03-2014 - 01-03-2014
Energy security and energy access are two important issues in Ghana. This project aims at contributing to energy security by reducing energy consumption using efficient domestic appliances. Refrigerators and other cooling appliances are highly appreciated in this country due to its hot weather. This will contribute to energy security by reducing electricity consumption and it will also contribute to climate change mitigation by avoiding Green House Emissions.
Knowledge buildingCommunity participation and inclusivenessPolitical ownership, collaboration and approvalFinancial sustainabilityAchieving co-benefits and balancing trade-offBuilding local capacityTransferable

This is a Climate Change Mitigation project funded by the Ghanaian Government and the Global Environment Facility (GEF), implemented by the Ghana Energy Commission and the United Nations Development Programme (UNDP). Its main objective is to improve the energy efficiency of appliances marketed and used in Ghana. Refrigerators are typically the largest or second largest energy-consuming appliance used among households in every country in the world. The project aims at strengthening the regulatory and institutional framework, developing monitoring and enforcement mechanisms, and providing training to appliance professionals nationally in Ghana. As part its implementation, the government introduced changes of electricity regulations such as, the obligation for Minimum Energy Performance Standards, compulsory use of Information Labels (S&L) and innovative economic tools. For example, the project has introduced market-based economic incentives complemented by public outreach campaigns to accelerate the process. The total cost of this project amounts to US$ 5.9 Million. The Ghana Energy Commission estimates that this project will benefit about 2 million families (refrigerator owners) throughout the country, each saving yearly between US$ 42.5 to US$ 85 in electricity bills. The global benefits are estimated in the order of 2.7 tons of CO2 per year per family, about 0.7 tons from electricity consumption reduction and 2 tons of CO2 from stopping the release CFCs otherwise released by the old and inefficient refrigerators.

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1. Knowledge building
Ghana has been working in the field of research and climate change mitigation for about three decades, involving a broad range of stakeholder institutions and organizations including non-governmental organizations. By late 1990, the EPA (Environment Protection Agency) with the assistance of United National Institute of Training and Research (UNITAR) and the Inter-organization Programme for Sound Management of Chemicals (IOMC), prepared a comprehensive National Chemicals Management Programme. Other programmes, which are being undertaken, include the framework for Integrated Coastal Zone Management. The issue of waste management has been seen as important research subject for many stakeholder Institutions; as a result, presently there are technologies developed with the purpose of assisting on recycling of waste and number of small-scale plastic waste recycling plants have been set up, especially in the Greater Accra Region. There are plans to set up similar waste recycling plants in other metropolitan, municipal and urban areas of the country. The management of other solid and hazardous waste is also being researched at the Ghana Atomic Energy Commission and the Council for Scientific and Industrial Research (CSIR). Exogenous technologies are also being studied for their appropriate adoption and transfer for local use. This project has benefited from previous research activities related to environment preservation, and from its existing capacity. Knowledge of the different subjects, networks and institutional links have been critical to envisage this particular project. This project is now developing deeper or new knowledge which will be useful for the successful implementation of the project but also for future projects; among them market mechanisms, regulations, training manuals, guidelines, tools and others; films, leaflets, etc.
2. Community participation and inclusiveness
This project involves numerous and diverse stakeholders. The Energy Commission has continuously been seeking for partnerships with key players (government, utilities, banks, broadcasters) and has shared the implementation of activities with them. This project is expected to have a broad impact because is involves a technology which has a number of interested parties (importers, sellers, repairers, energy regulators, environment regulators and others. The project set-up a Steering Committee to ensure a good governance of the project, composed of 20 members from a broad representation. The opinions and suggestions of the committee members are regularly sought and regarded in project reviews and formulation of activities. According to the mid-term evaluation of the project, a key responsibility of the management team has been maintaining stakeholder interest and commitment to project objectives. The Steering Committee included representatives from: • Ministry of Energy (MoE) • Environmental Protection Agency • Ghana Standards Board • Energy Foundation • Ministry of Trade and Industry (MOTI) • Ghana Revenue Authority - Customs, Excise and Preventive Services (GRA-CEPS) • Council for Scientific and Industrial Research – Institute of Industrial Research (CSIR-IIR) • Consumers Association of Ghana (CAG) • Consumer Protection Agency (CPA) • Ministry of Environment, Science and Technology and Innovation (MESTI) • Ministry of Finance & Economic Planning (MOFEP) • National Air conditioner and Refrigerators Workshop Owners Association (NARWOA) • Refrigeration and Air Conditioner Engineers Association of Ghana (RAAG)
3. Political ownership, collaboration and approval
1. The project is implemented by the Ghana Energy Commission - the technical regulator of Ghana’s electricity, natural gas and renewable energy industries, and the advisor to Government on energy matters. The Commission was created by the central government with approval of the National Parliament. Therefore this project enjoys high level political support and commitment. 2. The Ghana Energy Commission has produced and published a range of documents, ranging from energy statistics, energy strategies, project reports, data bases and others. This information allowed to the project team to formulate a coherent proposal and project implementation strategies. 3. The Ghana Government supported this project since its beginning because fits well in its energy efficiency and cleaner environment strategies. But this project is also expected to have an impact on reducing the financial burden of fuel imports and subsidies for energy. Regarding energy efficiency and environment protection, this project is not new; in fact the Ghana Energy Commission has kept a sustained interest in energy efficiency and environment protection. An example of other projects related to energy efficiency and environment is the project ‘Compact Fluorescent Exchange Programme’ which ended in 2009 and contributed to alleviate the energy crises. 4. An important driver for the implementation of this project is the difficult situation that the government of Ghana faces on both energy supply and energy demand. On the supply side, Ghana risks energy insecurity especially because it is a net importer of fossil fuels, while on the demand side the use of energy is inefficient among other reasons because of the use of old and inefficient technologies. The Energy Commission expects to moderate the increasing trends of electricity consumption by promoting end-use energy conservation, and with that reduce investments in production facilities and distribution infrastructure. Another driver is that this project is aligned with the high priority put on providing long-term solutions for energy and electricity generation in Ghana.
4. Financial sustainability
The project was co-funded by the GEF with US$ 1.7 million, Government of Ghana with US$ 3.0 million, UNDP US$ 0.2 million and MLF US$ 2.0 million. These funds are used for the removal of barriers, the building of local capacities and the implementation operation and tools development and the “REBATE” Programme, which has been set-up to help the Ghanaian families to buy new refrigerators. The Ghana Refrigerating Appliance Rebate Program aims at helping Ghanaians to purchase new and efficient refrigerators. The project provides rebates of up to GHS 200 (about US$ 80) for the purchase of an Energy Efficient refrigerator or freezer. To get the benefit of the rebate the participants in this programme have to surrender their old refrigerators at the point of purchase. The “REBATE” programme has a high potential for financial sustainability; and supports an excellent opportunity for sustainable impact by promoting a change in consumer behaviour with tangible financial benefits. To support this activity, the Ghana Energy Commission has introduced “quality labelling” and is using publicity tools, among them, leaflets and public campaigns to inform customers regarding the convenience of purchasing efficient appliances.
5. Achieving co-benefits and balancing trade-off
The rebate programme for old refrigerators and the loan scheme developed and implemented are expected to benefit the majority of households in Ghana (about 2 million families); it is estimated that the extra money paid to buy new refrigerators will be paid back in very short time with the savings of electricity bills. This project has boosted the market of refrigerators and other cooling appliances and expanded selling activities and consequently created a number of new jobs in the sector, new jobs have emerged from the recycling activities. Large quantities of CO2 emissions are reduced due to the elimination of refrigerators using CFCs from the market contributing to global climate change mitigation
6. Building local capacity
Ghana is among the few non-annex 1 countries that have taken serious interest in phasing out the use of appliances which use Ozone Depletion Substances (ODS). Refrigerator is a mass use appliance which use ODS. One of the main objectives of this project was building local capacity help the Government of Ghana to meet its objectives of phasing out the use of appliances using ODS. It also included support to the government to develop and implement national standards, train government officials and project stakeholders; training retailers, users and recyclers of used materials. Among capacity-building activities implemented are: Delivery of training workshops for several hundreds of refrigerating technicians across the most important towns in the country, these training activities have been implemented in cooperation with the National Air conditioner and Refrigerators Workshop Owners Association (NARWOA); training to mass media reporters on principles of energy efficiency, standards and labelling, preparation of materials for radio and TV. New companies and businesses ventures have been set up as a result of the implementation of this project, for example the a City Waste Management Company has been collecting Refrigerators from the rebate scheme since September 2012. This company collects, dismantles and recycles refrigerators received from the rebate program. The implementation of a refrigeration appliance test facility is underway, this facility will allow control and monitor the compliance businesses involved in the market of refrigerators to comply with national standards.
7. Transferable
Refrigeration and air conditioning are used worldwide. In the developing world especially in hot climates, refrigeration, air conditioning and other cooling technologies are highly appreciated and are intensive consumers of electricity and most use Ozone Depletion Substances (ODS). These technologies also produce a large quantity of waste products. Developing countries are still using inefficient and energy-intensive equipment, and most do not recycle waste products produced by these technologies or promote the use of efficient technologies. This project has tremendous potential for replication in other developing countries. The lessons of this project will be highly beneficial for other countries, especially regarding local benefits (low energy consumption, cleaner environment, and money savings), encouraging replication.
8. Monitoring and evaluation
Not applicable
Funding

Source of funding

International - Multilateral

Author

Name: 
Teodoro Sanchez

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