Implementation Mechanism Design for a Demand-Side Management (DSM) Support Project  

The current energy context in Benin, which is characterized as, among other things, comprising high energy consuming equipment, leads to significant electric energy losses and low penetration rates of renewable energy sources. Hence, Government of Benin has adopted a National Energy Management Policy (NEMP) whose implementation required the issuance of decrees that set minimum energy performance standards (MEPS) and an energy labelling system for lamps, room air conditioners, and refrigerators. Moreover, the government adopted regional texts on the EE subsector. Therefore, under the auspices of the Energy Management Support Project (EMSP) whose objective is to accelerate a transition toward not only the large-scale use of the abovementioned efficient equipment in the residential, commercial, and industrial sectors, but also clean cooking technologies in households, the Direction Générale des Ressources Energétiques (DGRE), with financial support from the African Development Bank (ADB), requested the services of Econoler to conduct a preliminary study whose results will serve to design and implement this EMSP.

 Description of actual services provided by your staff within the assignment: 

Econoler was mandated to conduct a situational analysis prior to designing and implementing the EMSP, evaluate implementation options (technical and financial), and outline the details of the implementation option that was most appropriate pursuant to consultations with and confirmation from the relevant stakeholders. 

Hence, Econoler conducted a comparative study on the possible financing models for the distribution of efficient equipment targeted by the EMSP (mainly lamps, air conditioners, refrigerators, and clean cooking technologies), including the finance mechanism on bills (on-bill financing), with the aim of selecting the mechanism that is best adapted to this project type. 

Econoler also examined the possibility of establishing a Super energy service company (Super ESCO) for the development and implementation of EE projects in public facilities. 

Thanks to the work of Econoler, the Government of Benin now has at its disposal well-designed EE projects and resources to ensure their implementation and continuity as well as create an environment that fosters sustainable development and financing based on project performance.