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Cost-benefit analysis of energy efficient interventions in low-cost housing

HARALD WINKLER Lwazikazi Tyani, Randall Spalding-Fecher, Khorommbi Matibe. Cost-benefit analysis of energy efficient interventions in low-cost housing. ENERGY & DEVELOPMENT RESEARCH CENTRE University of Cape Town May 2001. INTRODUCTION.

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Cost-benefit analysis of energy efficient interventions in low-cost housing

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  1. HARALD WINKLER Lwazikazi Tyani, Randall Spalding-Fecher, Khorommbi Matibe Cost-benefit analysis of energy efficient interventions in low-cost housing ENERGY & DEVELOPMENT RESEARCH CENTREUniversity of Cape Town May 2001

  2. INTRODUCTION • Objective- to analyse the cost-effectiveness of energy efficiency interventions in low-cost housing from national and consumer perspectives • Types of low-cost houses considered were • 30m2 RDP house, • row house and • informal house • Types of interventions analysed included: • ceilings, roof and wall insulation • window size, partition • efficient lighting and solar water heating

  3. Large benefits for society

  4. Benefit per household

  5. Not always affordable for poor households 1,000 500 - Rands Row RDP house house CFLs -500 Water Shacks Solar Heaters -1,000 -1,500

  6. Less than R1000 subsidy is needed

  7. Potential financing opportunities • Potential financing from climate change mechanisms • Carbon revenue could be similar size as subsidy requirement • At $10 per ton of carbon, R500 - R1,000 per household over 20 years • Requires costs to develop project • feasibility • monitoring • NOT the only financing option • bilateral funding • multi-lateral development banks • Further study on local financing options (EEU)

  8. Conclusion and Recommendations • Analyses presented here indicates that investments in energy efficiency are economical and environmentally attractive at a social level • Capital subsidy required • Interventions with negative costs are “no regret” options • Several other EE interventions have potential as CDM projects • Opportunity for co-funding initial capital cost • Explore funding options

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