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NS-315 - NAMA of the Efficient Cooking Program in Ecuador

Ecuador

NAMA Seeking Support for Implementation

  • A Overview
    • A.1Party
      A.2Title of Mitigation Action
      A.3Description of mitigation action

      The “Efficient Cooking Program for induction cooking and water heating with electricity to replace Liquefied Petroleum Gas (LPG) in the residential sector” (ECP), together with the increase of renewable energy derived from hydroelectricity until 2017, is estimated to have approximately acumulative GHG reduction of 9.97 million TonCO2-eq from 2014 to 2025.

      ECP-NAMA is a mitigation action based on the component of cooking efficiency. This action is promoted by the Ecuadorian Government and coordinated by the Ministry of Electricity and Renewable Energy (MEER), whose objective is to make possible that approximately 3 million families replace LPG for cooking by electricity. With this mechanism, users with 220V busbars and a functioning internal installation will be able to acquire the induction kitchen in any commercial store and afterwards payment will be collected by the electricity companies through the electric bills.
      A.4Sector





      A.5Technology









      A.6Type of action




      A.7Greenhouse gases covered by the action




  • B National Implementing Entity
    • B.1.0Name
      B.1.1Contact Person 1
      B.1.2Address
      B.1.3Phone
      B.1.4Email
      B.1.5Contact Person 2
      B.1.6Address
      B.1.7Phone
      B.1.8Email
      B.1.9Contact Person 3
      B.1.10Address
      B.1.11Phone
      B.1.12Email
      B.1.13Comments
      Add Additional Entity
  • C Expected timeframe for the implementation of the mitigation action
    • C.1Number of years for completion
      C.2Expected start year of implementation
  • D Currency
    • D.1Used Currency
      Conversion to USD: 1
  • E Cost
    • E.1.1Estimated full cost of implementation
      Conversion to USD: 1,091,000,255
      E.1.2Comments on full cost of implementation

      The full cost of implementation calculation is based on technology and distribution costs:

      Full implementation cost in USD

      Administration, communication, studies and implementation of project monitoring systems

       $       185.215.192,00

      Payments to Electric Distribution Companies

       $         30.000.000,00

      Alternative for population that cook with biomass

       $               558.920,00

      Cost of induction kits and circuit installation (BDH)

       $           2.625.695,00

      Cost of induction kits and circuit installation (RUD)

       $           2.895.900,00

      Cost of induction kits for sale at preferential price

       $         32.697.279,00

      Payment to stoves supplyer companies and sets of pots

       $       670.997.892,00

      Payment to electric water heating equipment companies

       $         87.000.000,00

      Payment for internal installation circuits

       $         79.009.377,00

      TOTAL

      $   1.091.000.255,00

      Source: (MEER, 2015)

      On the total cost of implementation, since 2014, Ecuador has invested around USD 285,945,639.35

      E.2.1Estimated incremental cost of implementation
      Conversion to USD: 42,339,548
      E.2.2Comments on estimated incremental cost of implementation
  • F Support required for the implementation the mitigation action
    • F.1.1Amount of Financial support
      Conversion to USD: 42,399,548
      F.1.2Type of required Financial support





      F.1.3Comments on Financial support

      The amount of financial support required is compounded by:

      1. Household with electricity coverage and induction stoves installed: the proposed component is expected to provide access to electricity for 5,124 low-income rural families. The project intends to improve: (i) quality of life through the provision of electricity, and (ii) health with the replacement of LPG or other primary sources of energy by electricity and the use of efficient stoves (USD           17,633,548.55).

      2. Industrial development of components and pieces: the total demand for induction stoves will be provided by local private industry. The development of components by local industry also seeks to create more job opportunities for the citizens (USD 19,560,000.00).

      3. Mass Communication Strategy: a strong marketing strategy through which people will know the main benefits of using efficient stoves (USD 1,500,000.00).

      4. Capacity building (USD 3,646,000.00)

      F.2.1Amount of Technological support
      F.2.2Comments on Technological support
      F.3.1Amount of capacity building support
      Conversion to USD: 3,646,000
      F.3.2Type of required capacity building support


      F.3.3Comments on Capacity Building support
      This amount is needed to reinforce the capacities building for different interested actors, including producers of components and pieces. Also include mid-term studies and impact assessment which enables reduce risks and ensure the implementation of the ECP. This includes designing strategies to overcome obstacles and reduce gaps of knowledge.
  • G Estimated emission reductions
    • G.1Amount
      G.2Unit
      G.3Additional imformation (e.g. if available, information on the methodological approach followed)

      The mitigation scenario of the NAMA was modelled with LEAP[1] software using information provided by MEER. Population and GDP projections were used as base information in order to generate de business as usual scenario.

      For the purposes of this NAMA, the following scenarios were considered:

      • Base Scenario: or "Business As Usual" scenario (BAU), which does not consider policies or emission reduction measures. This scenario is based on the growth of domestic demand for LPG in the residential sector.

      • Mitigation scenario: is the one that contains the mitigation measures. This scenario is based on the progressive penetration of induction stoves and consequently on the decrease of LPG stoves.

      Through the implementation of the ECP, it is estimated an average reduction of 0.83 million TCO2-eq per year and a cumulative total reduction of 9,97 million TCO2-eq from 2014 to 2025. Such reduction is equivalent to 2.6% of total emissions of Ecuadorian energy sector. This estimation considers LPG reduction and the use of hydroelectricity.


      [1] LEAP, the Long range Energy Alternatives Planning System, is a widely-used software tool for energy policy analysis and climate change mitigation assessment developed at the Stockholm Environment Institute.

  • H Other indicators
    • H.1Other indicators of implementation
  • I Other relevant information
    • I.1Other relevant information including co-benefits for local sustainable development

      Social co-benefits: the side effects of the implementation of mitigation measures may be related to the creation of new employment opportunities, the development of new capacities, and the improvement of quality of life.

      Economic co-benefits: these co-benefits are related to the savings and economic flow that mitigation plans can bring to society. The development of new businesses, as a result of climate change plans, can be taken as a positive side effect.

      Technological co-benefits: in order to implement mitigation plans, it is important to build new technological capacity that should drive innovative processes for these technologies.

      Environmental co-benefits: these co-benefits refer to the protection and conservation of natural resources. Waste management, use of recycled materials, energy savings and the development of renewable energy sources are examples of the co-benefits that contribute to environmental protection.

  • J Relevant National Policies strategies, plans and programmes and/or other mitigation action
    • J.1Relevant National Policies

      Ecuador’s Constitution explicitly addresses climate change policies in its article 414. The ECP program is a strategic national flagship program that will allow the reduction or elimination of subsidies, and is integrated into national and sectoral strategies. In the National Plan for Good Living, Ecuador has defined several priority actions for climate change adaptation and mitigation (Policy 7.7. Promoting energy efficiency and greater participation of sustainable renewable energies as a measure to prevent environmental pollution; 7.10. Implementing Climate Change mitigation and adaptation measures to reduce economic and environmental vulnerability with emphasis on priority groups and the transformation of the energy matrix by developing a wide variety of non-conventional renewable energy and energy efficiency; and 11.1). Furthermore, the National Climate Change Strategy (2012 -2025) states the following: "To take conservation and efficient use of energy actions, as well as to promote and research technology transfer mechanisms in order to achieve efficient use of energy in the residential and industrial sub-sectors”.

      Through the LECB project, the Ministry of Environment of Ecuador (MAE) has been working in coordination with the MEER, in the development of studies and documents to present the ECP as a National Mitigation Action Plan. The ECP is a national wide initiative that is being implemented and aims to contribute directly to reducing emissions of GHG, Carbon Dioxide (CO2) and methane; through this initiative, Ecuador seeks to reduce the use of fossil fuels and associated subsidies in the residential sector.

      J.2Link to other NAMAs
  • K Attachments
  • L Support received
    • L.1Outside the Registry
      L.2Within the Registry
      Support providedSupportTypeAmountCommentDate
      No records to display.