Aggressive Cost-Effective Electricity Conservation

Scarce capital constrains the installation of new generating capacity in most developing countries. Pursuing electricity conservation through cost-effective end-use efficiency improvements offers an important way to reduce the demand for new capital. However, an array of barriers to improving efficiency prevents its implementation. Barriers may be overcome by the adoption of programmes which are succeeding in industrialized countries. These countries and multilateral donor institutions can help increase end-use efficiency in the developing world through loans and grants for utility companies and manufacturers. This paper suggests ways to increase the electricity efficiency of new and existing electricity end-uses in the developing countries. It draws a parallel to an idea from the environmental community and proposes requiring each new plant in selected industrial sectors to prepare an energy-efficiency impact statement.