Provision of services related to development and enforcement of Minimum Energy Performance Standards (MEPS) for lighting and appliances in São Tomé and Príncipe.

The Global Environment Facility (GEF) funded project “Strategic program to promote renewable energy and energy efficiency investments in the electricity sector of São Tomé and Príncipe" is implemented by UNIDO in partnership with the Directorate-General for Natural Resources and Energy (DGRNE)  of the Ministry of Infrastructure, Natural Resources and Environment (MOPIRNA)  and the National Designated Authority (NDA) at the Ministry of Planning, Finance and Blue Economy (MPFEA), and other international partners (e.g. UNDP, WB/AFAP, AfDB). The efforts will be complemented by a Green Climate Fund (GCF) funded UNIDO project “Building institutional capacity for a renewable energy and energy efficiency investment programme for Sao Tome and Principe”, which is currently under final approval.

 

The UNIDO project contributes to the Vision 2030 “São Tomé e Príncipe 2030: the country we need to build", which aims to transform the country into a climate-resilient and vibrant island hub for blue economy business, financial services and tourism, benefitting from the growing regional market of the Economic Community of Central African States (ECCAS). The GEF project is also part of the joint UN efforts to support the graduation of STP from the list of least developed countries (LDCs) by 2024.  Faced with a situation of constrained fiscal policy, the Government aims to create the conditions to allow the private sector to become an engine of growth, economic diversification, and poverty reduction. The focus lies on improving the business climate, promoting foreign direct investment, and improving key social and economic infrastructure, including energy.  

 

The success of the Vision 2030 highly depends on a power sector reform and a transformational shift of the entire energy system from a nearly complete fossil fuel import dependency to renewable energy and energy efficiency. Such a transition will lead to a significant reduction of fossil fuel import spending and will free up scarce hard currency resources for social and economic development (e.g. education, health care, transportation, export diversification, SME -small and medium-sized enterprises-  development and climate change adaption). Moreover, it will assist key island industries (e.g. water supply, agriculture, food processing, tourism, fishery, and the wider blue economy) to become more productive and competitive. 

 

The GEF funded UNIDO activities aim to create an enabling environment for the uptake of investments in renewable energy and energy efficiency by addressing the barriers through holistic interventions in the areas of planning, policy and regulation, project facilitation, as well as qualification and certification. UNIDO applies a strong partnership approach to increase the impact of the activities. 

 

 

National assessments indicate a significant feasible and viable potential for energy efficiency improvements in Sao Tome and Principe. The island electricity system is characterized by supply- and demand-side losses. Significant saving potential exists in the residential and public sectors since they consumed approximately 52% and 29% of the total electricity consumption (70.4 GWh), respectively, in 2018. One of the main constraints has been the lack of continuous and adequate maintenance of generation and transmission infrastructure that results in technical losses, which, in turn, negatively impacts the reliability, sustainability, and efficiency of electric power systems. These losses are estimated at around 35%. Moreover, due to the low urban and rural consumer willingness and ability to pay, the utility is facing significant commercial revenue losses – in addition to the non-cost-reflective tariffs, which do not cover the diesel generation costs. 

 

So far, the area of energy efficiency did not get much attention from international support. International efforts were predominantly focused on a general power sector and tariff reform, grid expansion and loss management, as well as renewable energy integration. Demand-side energy efficiency aspects were insufficiently considered in the Least Cost Power Development Plan (October 2018), which provides a 50% renewable energy scenario by 2030. The need for additional generation and storage investment might be lower when considering the mitigation of demand, peak loads and generation and distribution losses. Without managing energy efficiency properly, renewable energy investments might have a lower impact as anticipated. The combination of lower capacity factors, technical grid and commercial losses tend to impact the viability of such projects negatively and is a risk concern for project finance. 

 

However, recently several partners have announced energy efficiency initiatives. Some examples are: (i) Replacement of approximately 170 inefficient light bulbs with LED in public lighting and awareness-raising campaigns (EMAE); (ii) Replacement of about 300,000 incandescent light bulbs with LED to reduce 8.5 MW of peak demand and 15 GWh of energy needs, and communication campaigns from a gender perspective to increase invoice collection and fight commercial losses (WB and EIB-European Investment Bank); (iii) Implementation of an energy efficiency program to reduce electricity consumption in buildings and public lighting (AfDB); most of these activities are currently in the start-up phase. 

 

The current cross-sectoral policy and regulatory framework regarding EE remain underdeveloped and incoherent. STP has not established EE targets and standards for generation and transmission/distribution, industrial use, buildings, lighting and appliances, transport and cooking. The Government's Major Plan Options for 2019 (2018) only states the need to establish EE programs, meaning that the country lacks a clear pathway to foster EE measures on small and large scales. There is no reliable EE data available. UNIDO is currently supporting the Government to draw up a reliable energy balance and to implement an energy information (indicator) system. 

 

The country operates based on several plans and laws, covering different uses of energy and regulations for tariffs and prices. The Legal Framework of the Electricity Sector (RJSE), Decree-Law 26/2014, known as the Basic Law of the Electricity Sector defines the bases of the system organization. There is also the Quality of Service Regulation (Resolution No. 020/CA/2017) published in December 2017, which establishes the technical and commercial quality of service obligations to be satisfied by the national electricity system services. The technical obligations refer to the quality and reliability of the electricity service. However, concrete supply-side and demand-side measures remain unmentioned. 

 

Therefore, under the GEF project, UNIDO is supporting the Government in the development of the National Renewable Energy Action Plan (NREAP) and National Energy Efficiency Action Plan (NEEAP). Relevant consulting assignments are ongoing. The NREAP/NEEAP will include quantifiable and feasible overall targets and sub-targets (by sector, thematic area and/or technology) by 2030 and 2050. The scenario will be based on a modeling analysis through the Low Emissions Analysis Platform (LEAP). The NEEAP will consider all dimensions of EE, incl. generation, transmission, distribution, end-use, lighting and appliances, industrial efficiency, transport, energy saving. 

 

The NEEAP will include feasible targets with regard to access to efficient cooking appliances, including improved biomass cook-stoves, charcoal and LPG. It will also focus on transport (e.g. fuel and car standards, electric mobility) and industrial process heat. To build an efficient energy market, the NEEAP looks for addressing the following drawbacks: the lack of awareness about efficient use of energy, the lack of identification of EE potential apart from only replacement of light bulbs, the lack of information, the lack of training, monitoring and auditing, the lack of more efficient equipment, and the absence of energy efficiency standards. 

 

The draft Energy Policy and Data Gap Analysis (2021) and NEEAP identify the adoption and enforcement of Minimum Energy Performance Standards (MEPS) for a group of prioritized electric appliances and equipment with high energy intensity, such as air conditioners, refrigerators and industrial equipment, as a “low hanging fruit” and priority action. The work on standards is an important intervention to ensure the long-term sustainability of short-term oriented (emergency) light bulb exchange programs currently starting in the country. Therefore, UNIDO is supporting the Government in the establishment of an implementation and compliance framework for electric appliances, including lighting, air conditioning and refrigeration. 

 

 

UNIDO seeks consulting support to develop an implementation and compliance framework for electric appliances, including lighting, air conditioning and refrigeration. The assignment has the following scope:

 

The contractor will closely coordinate with other starting EE initiatives in STP. This includes particularly the bulb replacement program implemented by WB in partnership with AFAP and EMAE. The envisaged MEPS will ensure the long-term sustainability of these short-term interventions.  The contractor will also closely coordinate with the starting EE activities of the AfDB particularly addressing generation, transmission, and distribution losses. 

Moreover, the contractor will closely coordinate with the UNIDO team working on the Energy Efficient Lighting and Appliances in Southern and Eastern Africa - EELA project, in partnership with the East African Centre for Renewable Energy and Energy Efficiency (EACREEE) and the Southern African Center for Renewable Energy and Energy Efficiency (SACREEE). The EELA project seeks to create market and institutional conditions to transform the market environment to stimulate increased diffusion of efficient lighting products and appliances across all sectors in Southern Africa Development Community (SADC) and East African Community (EAC) regions. It is also worth indicating that the development of regionally harmonized Minimum Energy Performance Standards (MEPS) for lighting and appliances for both SADC and EAC is a key output of the EELA project.

Apart from that, the contractor will coordinate with the UNIDO National Project Coordinator and the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) in Praia, Cape Verde, on the EE standard work on the national and regional level. Since 2010, UNIDO has supported ECREEE in the development and implementation of the ECOWAS Energy Efficiency Policy (EEP) and national action plans. ECREEE has developed several regional MEPS for lighting and appliances. Based on the adopted National Action Plan for Energy Efficiency (PNAEE), Cape Verde has created a national system for energy certification under five axes: equipment and household appliances, IEC, buildings, electricity distribution, and cooling. In the residential sector, two of the main goals were to start labeling fridges, air conditioners, televisions, and light bulbs; and, to replace all lighting, cutting off incandescent light bulbs by 2020 on residential and industrial sectors, and street lighting. Moreover, the intervention on public lighting is considered an important factor to address energy distribution losses. Relevant documents of an implemented GEF-funded UNDP project in Cape Verde are available in Portuguese. 

The contractor will closely coordinate with other starting EE initiatives in STP. This includes particularly the bulb replacement program implemented by WB in partnership with AFAP and EMAE. The envisaged MEPS will ensure the long-term sustainability of these short-term interventions.  The contractor will also closely coordinate with the starting EE activities of the AfDB particularly addressing generation, transmission, and distribution losses. 

Further details are available in the attached TOR and the UNIDO procurement page: Procurement Opportunities | UNIDO