1. Public Benefits Funds are not Enough to Secure Energy Efficiency and Energy R&D Activities: lessons from Brazil Gilberto De Martino Jannuzzi Universidade Estadual de Campinas and International Energy Initiative Alan Poole Independent Consultant 2006 ACEEE Summer Study on Energy Efficiency in Buildings - August 13-18 2006

4. The allocation of the 1% fund (since 2004) Regulator National Public Interest Fund Generation Transmission Distribution > 0,4% R&D > 0,2% R&D > 0,5% EE Utilities Design and Implementation Design and Implementation 0,2% EPE 0,4% 0,2% Public Interest EE Public Interest R&D 1% sales$$$ 0,1% Board: Government, Academia, Private Sector 2004

7. Allocation of Wire Charge Fees from 1998-2006 as % of annual sales (Distributing Utilities) R&D: since 2000 half of the resources are allocated to the Public Fund CTEnerg 0.15% 0.60% 0.25% From 2006 0.10% 0.40% 0.50% 2004-2005 - 0.50% 0.50% 2000-2003 - 0.10% 0.90% 1998-1999 EPE R&D Energy Efficiency

8. What have been the impacts?

9. Utilities’ investments in EE programs PROCEL: Average US$ 14 million/year 1994-2003 Utilities’ compulsory investments: average US$ 57 million/year 0.56 0.52 0.53 0.31 na na Average Cost-benefit ratio 499 110 100% - 118.1 2003/04 234 56 100% - 39.8 2002/03 351 84 99% 1% 57.2 2001/02 892 251 94% 6% 35.4 2000/01 994 369 40% 60% 75.9 1999/00 754 250 32% 68% 68.3 1998/99 energy savings (GWh/y) avoided demand (MW) % End-use programs % Supply-side programs Investments (US$ millions) Cycle

10. Breakdown of utilities’ investments in EE (%) 1998-2003

11. Utilities’ investments in R&D 69.0 2002/2003 179.7 2003/2004 356.3 Total 53.9 2001/2002 39.1 2000/2001 10.2 1999/2000 4.4 1998/1999 Total invested (US$ millions) Cycle

12. And what about the CTEnerg Fund?

13. Public Energy Fund investments CTEnerg 63% 39.4 2005 - 52.0 2006 9% 54.1 2004 35% 64.8 2003 34% 20.1 2002 62% 34.5 2001 % spent in R&D projects Total budget (US$ millions)