HARALD WINKLER

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

• HARALD WINKLER
• Lwazikazi Tyani, Randall Spalding-Fecher,
  Khorommbi Matibe

ENERGY DEVELOPMENT RESEARCH CENTREUniversity
of Cape Town May 2001
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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

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Large benefits for society
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Benefit per household
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Not always affordable for poor households
1,000
500
-
Rands
Row
RDP
house
house
CFLs
-500
Shacks
Water
Solar
Heaters
-1,000
-1,500
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Less than R1000 subsidy is needed
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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)

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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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