Shining the light on energy conservation : a synthesis of findings from six evaluations

The report provides country-level data on five factors affecting project performance (energy policy, economic climate, technology, energy education/awareness, and institutional capacity) and examines the projects' economic and environmental impacts, as well their sustainability and replicability. Lessons learned are as follows. (1) When energy is cheap, there is little incentive to use it efficiently. As long as there are major subsidies, broad-based energy conservation is difficult. (2) Privatization creates a more favorable climate for conservation. (3) The type and level of investment a firm is willing to make depends on business climate and incentives. Higher energy prices and other incentives are needed to create demand for energy-efficient equipment. However, business attitudes may fail to change quickly enough to keep up with market realities. (4) The USAID projects succeeded by promoting relatively simple energy-saving technology and emphasizing ways to make existing equipment work more efficiently. (5) Good technologies are not enough; effective, continuing promotion is needed. (6) Education and awareness campaigns cannot overcome bad policies or weak institutions. (7) The development of market-driven institutions is critical to success. (8) Energy conservation investments must generate a strong economic rate of return and a rapid payback. (9) Investments in energy efficiency have important, sometimes surprising, environmental benefits, but pollution control through regulation is still the most effective way to cut harmful emissions and improve energy efficiency. (10) Use of energy-efficient technologies has generally been sustained, but replication has been a problem. Replication demands that technologies are broadly applicable, cost-effective, and widely disseminated and marketed. (11) Firms vary greatly in their level of energy use; USAID needs different tactics for reaching different users. (12) Energy conservation is more than just energy equipment; it is also energy management. (13) Beneficiary, government, and donor commitment is critical to success. (14) USAID should not let its own internal budget pressures distort its technology or beneficiary selection. (15) Developing and transitional economies require different approaches.