NDF - Financing for climate change and development projects

NCF: Strenghtening National Capacities on Energy Efficiency in Nicaragua [NDF C3 B13]

1.05.2013
The project aims to improve the industrial and service sectors competitiveness by increasing national capacity on energy efficiency, through technical assistance, awareness raising and investment promotion on energy efficiency.

Nicaragua
Strengthening National Capacities on Energy Efficiency
Ref: NDF C3 B13

Nordic Partner: Motiva Services Oy (Finland)
Local Partner: Cleaner Production Center of Nicaragua Association
Total Project Cost: EUR 478,100
NCF Financing: EUR 381,046
Agreement Signed: 27 October 2010
Project Classification: Climate change mitigation
Duration: 31 months  (completed)

Project Objective

To improve the industrial and service sectors competitiveness by increasing national capacity on energy efficiency, through technical assistance, awareness raising and investment promotion on energy efficiency.

Description

Nicaragua’s energy sector is highly oil dependent. By strengthening national capacities for energy efficiency the project aimed to reduce GHG emissions generated by the industry and service sectors and improve companies’ competitiveness. The project consisted of three main components; capacity building, technical assistance and promotion of energy efficiency. Through energy audits in the form of 62 quick-scans and 15 in-plant assessments conducted in companies, the project demonstrated that there is potential to reduce energy consumption by at least 15% and increase productivity by 10%. Furthermore, an Energy Efficiency Office was established and a National Energy Audit Program was planned. The project has synergies with the regional GreenPyme program funded by NDF and implemented by the Inter-American Investment Corporation.

Relevance for Climate Change

Industrialisation is vital for low-income countries to achieve economic development. However, the industrial sector is responsible for more than one third of the global primary energy consumption and energy-related CO2 emissions. By promoting an efficient use of energy in the Nicaraguan industry and service sector, encouraging renewable sources to generate energy, and increasing productivity the project has contributed to sustainable economic development in Nicaragua and climate change mitigation through decreased GHG emissions. 15 in-plant assessments indicate CO2 emission reduction potential of up to 4000 t/a.

Innovation and Knowledge Transfer

As there currently is no appropriate energy efficiency promotion framework in Nicaragua the innovativeness of the project was based on the project’s strategy to strengthen the national energy efficiency capacity with expertise from Finland. The project aimed to facilitate knowledge transfer from Finland to Nicaragua. Energy efficiency knowledge transfer means knowhow on both the energy auditing methodology and the whole structure of energy auditing needed for permanent efficient use of energy in a country. The Finnish model of the whole energy auditing structure was studied and an adapted version was suggested to the conditions in Nicaragua. Local governmental organizations were involved in the work to ensure suitable conditions for future energy efficiency structures. Capacity building, on energy efficiency and carbon lean technologies, through 2 workshops and 6 awareness-raising seminars provided by international experts teached local stakeholders the techniques and methodology so that they can continue to deliver workshops both as a service to companies and to new local stakeholders. Further, the project activities reached 500 entities through the distribution of brochures and posters on the benefits of energy efficiency.

For more information

Motiva Services Oy
Cleaner Production Center of Nicaragua Association 
Energy Efficiency Guide in Spanish 
General Observations Audit