Energy conservation investment, decisionmaking in developing countries : a review of project implementation in industry -- final report

This document analyzes EC efforts in 11 countries where energy audit and/or feasibility study programs have been carried out (Bangladesh, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jordan, Pakistan, Panama, the Philippines, and Sri Lanka), covering some 1,500 EC projects involving 242 industrial companies. Cost and length of payback seem to be the determining factors for companies considering EC measures; no-cost or low-cost projects with paybacks of less than a year (such as power factor improvement projects) had the highest rate of implementation, while expensive, complicated projects (e.g., cogeneration or fuel substitution projects) were most often rejected. The document concludes, however, that the rate of implementation of EC programs has been quite high, and recommends that inexpensive, short-term projects be featured in future EC programs and increased levels of TA and financial assistance be made available to companies implementing long-term EC measures.