Costa Rica : power sector efficiency assessment -- summary volume = Costa Rica : evaluacion de la eficiencia del sector de energia electrica -- sintesis

The present study projects the economic benefits and costs of these programs to the year 2005. The capacity deferral (real reduction) programs recommended by the study, which include the implementation of daylight savings time, interruptible tariffs, and commercial/small industrial load management, could provide a coincident peak demand savings of 183.6 MW (a reduction of 11% of the forecast system peak). The recommended energy-efficiency programs for the industrial, general, and residential sectors result in an estimated energy saving of 624 GWh (an energy reduction of more than 8%), while the recommended demand-side management (DSM) program (load management and energy conservation) would result in a peak demand reduction of 213 MW, or 12% of the forecasted system peak. This represents a 16% reduction of the incremental capacity requirements (1,298 MW) under the ICE expansion plan for the period 1990-2005. Based on a net present value of ICE financial flows to the year 2005, the financial impact of the recommended DSM program would increase net income by $103 million, considering the financial impact of capacity and energy savings, including investments in generation and transmission and distribution equipment, fuel costs, revenue losses from decreased electricity sales, and associated administrative costs for implementation of the DSM program. The program"s balance of payments impact is substantial, with a net present value to the year 2005 of the foreign exchange savings of 14% over the base case (no DSM program). This impact is a result of (1) reduced external debt service due to the deferral of capacity expansion, (2) reduced oil import bill due to energy savings, and (3) increased import bills associated with the need to import equipment for the energy conservation measures. The DSM programs also have important environmental benefits by reducing energy production requirements, which mitigate the negative environmental impacts of energy resources exploration, development, and production.