Type of initiative: Infrastructure Improvements

Population: 600,000

The Municipio is an important business center for the Mexican oil industry.

In collaboration with the Comisión Federal de Electricidad (Federal Electricity Commission), Municipio de Centro is piloting an energy-efficient transformer program. Around 1,300 transformers are being replaced across the municipality's territory. The new transformers will reduce power loss in the electricity distribution system while improving the reliability of the electricity supply, especially in the rural parts of the municipality.

Municipio de Centro is located in the state of Tabasco, in southeast Mexico. In August 2007, the Municipality created the Energy Conservation Commission, which has since then developed programs designed to reduce energy consumption and greenhouse gas emissions within the municipal corporation.

For analytical purposes, Municipio de Centro divides its energy consumption into three main sectors: public lighting, drinking and wastewater conveyance (i.e. for electrical pumps), and the use of electricity to run the municipal buildings. Expenditures in these three sectors account for approximately 30% of all municipal expenditures. In 2007, a newly elected mayor championed an energy program that would save money as well as reduce the Municipality's greenhouse gas emissions. 

To date, the Municipality has concentrated on three main energy saving/efficiency projects: 1) making the public lighting system more efficient, 2) increasing the efficiency of the water pumping system, and 3) installing energy efficient transformers.

Through these projects, the Municipality has been able to save considerable amounts of money, allowing the administration to invest in other programs that benefit the general public, such as the construction of new drinking water plants. The environmental outcomes are also quite significant, including energy savings and the mitigation of greenhouse gas emissions, among other benefits. Energy efficiency measures in the public lighting and water pumping systems resulted in a reduction in electricity consumption of 9,542,969 kWh in 2008 alone. This means 12.71% less energy was consumed in 2008 compared to 2007. It also means that 6,641 tCO2e were not emitted into the atmosphere as a direct result of this program.   Furthermore, Municipio de Centro is now considered a national leader in energy-efficiency projects.

The program's success is attributed mainly to the political will of the Mayor as well as to the dedication of the members on the Municipal Energy Conservation Commission. This program demonstrates that even in a short period of time (less than three years) it is possible to successfully bring about municipal energy improvements.

• Municipio de Centro is one of the 17 municipal regions that make up the state of Tabasco in southeast Mexico. Its name comes from its geopolitical situation; the region is located at the centre of the state and is home to the State's capital city, Villahermosa.
• Municipio de Centro represents 28% of Tabasco's total population, with 558,524 inhabitants in 2005. About 80% of the populatoin of the municipality live in urban areas, mostly in Villahermosa. The municipality covers an area of 1,612 km2, which represents 6.9% of the State's area. 
• Villahermosa, the fourth biggest city in the southeast, is a business and administrative centre for the Mexican oil industry. It is a modern centre that takes advantage of being located between Mexico City and the largest cities of the southeast region.
• In January 2007, a new mayor was elected, Lic. Evaristo Hernández Cruz, who believed it would be possible to save money and reduce the Municipality's greenhouse gas emissions through energy conservation.  Shortly after his election he adopted the Municipal Development Plan 2007-2009, which contains a four-page section on the science and impacts of climate change, particularly those impacts already being felt in southern Mexico. This document led to the creation of the Comisión de Ahorro de Energía del Municipio de Centro – AEMC (Municipal Energy Conservation Commission) in August 2007. The objectives of the AEMC are to promote and develop energy saving programs within the municipality, to protect the environment and to reduce municipal expenses related to energy consumption.

The Commission, which is unique within the country, consists of a president (the Mayor), a vice president, a technical secretary, seven counsel members, four permanent external members (which include representatives from the Comisión Nacional para el Uso Eficiente de la Energía – CONUEE (National Commission for the efficient use of energy), Comisión Federal de Electricidad  – CFE (Federal Energy Commission), Fideicomiso para el ahorro de Energía Electrica – FIDE (Electric Power Saving Trust Fund), and ICLEI-Mexico) and a coordinator of operations. The coordinator of operations meets on a monthly basis with the head engineer of the water department and the head engineer of the public lighting department. This team of three forms the operational centre of the AEMC. They do a general review and update of the programs and verify the rate of energy consumption. They report to the rest of the AEMC members once every two months.

• In addition, the AEMC counts on a working group that is composed of representatives from different municipal departments (finance, municipal secretariat, programs, administration, municipal services, water, development, public works, environment, registry, union). The role of this working group is to help implement the initiatives recommended by the commission. To improve their effectiveness as agents of change within their respective departments, members on this working group took part in workshops that brought them up to date with the objectives and activities of the commission.
• Description of the Initiative
• As a first step, the AEMC undertook an in-depth analysis of the Municipality's energy consumption. For analytical purposes, Municipio de Centro divides its energy consumption into three main categories: public lighting, drinking and wastewater conveyance (i.e., for electrical pumps), and the use of electricity to run municipal buildings. This accounts for a consumption of about 6,682,000 kWh per month, which in turn represents about 30% of all Municipal expenditures.¹  The consumption levels in each of these three sectors are shown in Table 1 for the years 2004 to 2009.
• Table 1: Municipal energy consumption in Mexican pesos 
• 
• To date, the municipality has concentrated on three main energy efficiency projects: 1) making the public lighting system more efficient, 2) increasing efficiency in the water pumping system, and 3) installing energy efficient transformers. This section looks into these projects in more detail.
• Making the public lighting system more efficient
• The AEMC started by undertaking a census of all street lamps within the municipality. Although the Municipality was being charged for 25,000 lamps by the Comisión Federal de Energía – CFE (Federal Energy Commission), the census turned up only 21,135 lamps. This led to a revision of all historical billing agreements with the CFE as well as a revision of the formula that was being used to calculate consumption rates, as this consumption would change drastically with the installation of new, more efficient technologies. The second step the municipality undertook was to contract an external firm, Ergón Plus Ingenieria S.A. de C.V., located in the neighbouring state of Veracruz, to conduct a study on the substitution of sodium vapour lamps (the type of lamps in use) with more energy efficient models. The purpose of the study was to verify if this change in technology would be beneficial. It reviewed the advantages and disadvantages of various technologies and estimated costs. The study recommended going with magnetic induction lights that offer up to 100,000 hours (compared to the 20,000 hours provided by the conventional lamps) of high-quality white light and are therefore practically maintenance-free once installed. As the advantages outweighed the disadvantages, the municipality decided to purchase 10,200 magnetic induction lamps (Ayuntamiento de Centro, 2009a).                                           
• In May 2008, Municipal employees started replacing the old lamps, and less than a year later, the process was completed.
• Increase efficiency in the water pumping system
• The AEMC contracted the same company, Ergón Plus Ingenieria S.A. de C.V., to conduct a second study, this time on the state of the public water pumping systems (drinking water and wastewater).²  The study showed that the pumping equipment needed to be changed; the pumps that were in service were either obsolete or would come to the end of their life expectancy shortly.
• When the Municipality ordered the study, it was hoping to get funding from the Fideicomiso para el Ahorro de Energía Eléctrica or FIDE (Electric Power Saving Trust Fund) to finance the replacement of all 43 pumps used in the drinking water pumping system. Unfortunately, FIDE was unable to provide the required financial assistance for this project and therefore the AEMC had to implement the program much more slowly, as Municipal funds permitted.
• Installing energy efficient transformers
• This program began with a pilot project, coordinated by ICLEI-Mexico and Pro Cobre³. The pilot project consisted in measuring and comparing energy consumption in both a conventional and an energy efficient transformer. The energy efficient transformers, although a little more expensive, were shown to be superior to the conventional ones in terms of operational efficiency and reliability. With these results, the AEMC sat down with CFE (the Federal Energy Commission) and was able to conclude an agreement that would see the installation of more than 1300 energy efficient transformers. The CFE is in charge of doing the changes. To date, 658 energy efficient transformers have been installed and the remaining half is scheduled to be changed before the end of the summer.
• Aside from these three programs, the AEMC also works on environmental education and awareness. For instance, the commission established a list of recommendations intended to increase awareness about energy use amongst municipal public servants. Examples of these recommendations include using natural light when possible, unplugging all electrical appliances after work hours and on weekends, getting purchases of new appliances approved by the energy efficiency coordinator, switching off lights and computers when not in use, painting the exterior of buildings in light colours, implementing a preventive cleaning program of AC systems and lights, etc.
•  

¹ This percentage does not include the cost of manpower, equipment for operating and maintaining the service, reparations, etc.

² The study included: revision of tariffs, measurement of leaks in litres/sec, hydraulic charge and power, electrical power (kw), weight of pumped fluid (kg/m3), average time of operation (hrs/day), integrated cost of energy ($/kwh), pump's motor efficiency, monthly energy consumption (kwh/month), monthly invoice ($/month), consumption savings (kwh/month), savings on the demand side (kw), monetary savings ($/month), financial evaluation on type of investment required and time period for return on investment

³ The Mexican chapter of the International Copper Association. 

• As previously mentioned, the AEMC originated from the Municipal Development Plan 2007-2009; the commission was born shortly after the adoption of the plan in 2007 and got to work immediately. As the AEMC was a new body with little experience or expertise, its coordinator of operations set about to get as much technical support and advice as possible. He and the AEMC vice-president attended several regional, national and international events organised by different stakeholders working on energy issues, such as the 18th and 19th National Congress on Energy Saving and Expo, the international congress to promote an energy efficient public sector, and the regional seminar on energy efficiency for states and municipalities. In total, AEMC staff have attended over 15 such events as a participant and/or speaker since the summer of 2007.
• Furthermore, the AEMC solidified its relationship with ICLEI-Mexico by having the Mayor become vice-chair of its Board of Directors. Likewise, ICLEI-Mexico is one of the four permanent external members on the AEMC, together with representatives of FIDE, CFE and CONUEE. These strategic partnerships have helped the AEMC gain the support necessary to develop energy saving programs. The Municipality also became a member of Red Nacional de Comisiones Estatales y Municipales de Energía – RENACE (National Network of State and Municipal Energy Commissions).
• These programs to save energy and reduce greenhouse gas emissions have incited the Municipality to participate in the federal government's GHG inventory program, which is coordinated by the Ministry of Environment and Natural Resources (SEMARNAT) and the Commission for the Studies of Sustainable Development in the Private Sector (CESPEDES).
• Moreover, the Municipality has signed the ICLEI international Agreement of Mayors and Local Governments for Climate Protection.

These initiatives do not cost the Municipality much to run on a daily basis, i.e. the Municipality has not had to hire new employees. The members of the AEMC are municipal employees whose involvement in the AEMC is simply added to their regular activities. In fact, this initiative has freed up some time for the technicians in charge of general maintenance of street lamps and water pumps, as the new technologies introduced by the AEMC require less maintenance than those they replaced.  A significant extra cost related to these initiatives however was for the studies mentioned above, which were contracted to an external firm. 

The Municipality has had to make some capital investments to implement the program, i.e., to purchase the transformers and new street lamps. The initial pilot project on energy efficient transformers was coordinated and financed by ICLEI-Mexico and Pro-Cobre. ICLEI then provided the Municipality with the necessary technical support to conclude the agreement with CFE, which entailed an investment of 30 million pesos each (CFE and Municipio de Centro) to change the 1300 transformers in the Municipality. As for the public lighting program, it cost the Municipality approximately 5 800 pesos  per magnetic induction lamp as well as 1 million pesos to install them. Although these sums are considerable, one must remember that the more efficient equipment provides instant financial savings to the Municipality. 

The Municipality has benefited from external funds for its water system program. In 2007-2008, the State of Tabasco suffered severe flooding and FONDEN  (Fund for Natural Disasters) provided the State financial support to help recover after the disaster.  Municipio de Centro received some of this money, which it used to help finance the program to improve the energy efficiency of the water system.

• Although the initiative was only launched in 2007, some tangible results have already been recorded.
• Making the public lighting system more efficient
• In 2008, the municipality paid 7.57% less for energy consumption in the public lighting system compared to the previous year. This reduction was achieved despite an increase in electricity rates of 6%. Consumption in this sector was reduced by 4,501,943 kWh, corresponding to a decrease of 14.85% (Ayuntamiento de Centro, 2009a).
• The environmental outcomes are also positive; the Municipality avoided emitting     3,133 tCO2e in 2008. Furthermore, less maintenance means fewer technicians on the road, fewer maintenance vehicles, and fewer manufactured parts. From a social point of view, a new, more efficient public lighting system means better street and park illumination and, in turn, improved public safety.

Likewise, as the new technology requires less maintenance, municipal employees have more time to respond to the needs/demands of citizens. These positive outcomes explain the popularity this program has had among citizens, who can literally see the changes and benefit from them immediately.

Despite the positive outcomes, the program did not proceed without obstacles. The AEMC did experience some technical problems near the beginning of the implementation of the program. Municipal employees had difficulty installing the new street lamps at first as they lacked experience with this new technology. As a result, some lamps malfunctioned, such as switching off on their own. However, the technicians received technical support from municipal engineers (who had previously been trained by the manufacturer) and were able to quickly solve the problems.  

 Increase efficiency in the water pumping system

The AEMC originally wanted to change all 43 pumps in use to convey water, as recommended by the study the Municipality commissioned on the state of the public water pumping systems. In order to do this, the Municipality was counting on funds from FIDE. These funds, however, never materialized.  Instead, the Municipality received disaster funds from FONDEN, some of which were put towards the water system program and allowed its partial implementation. The revised strategy consisted of rehabilitating 10 pumping stations by installing new pumps, as well as new electrical and electromagnetic systems. By making these changes and working towards reducing peaks in the energy demand curve, the municipality was able to reduce energy used in the pumping stations.

So far, the municipality has managed to decrease its electricity consumption in the water pumping system by 5,041,026 kWh.  This represents 11.25% less energy in comparison with the previous year (2007) and translates into savings of US$102,461.

From an environmental point of view, these improvements in the water pumping system have allowed the municipality to avoid emitting 3,508 tCO2e.

The results of the program on energy efficient transformers were not available at the time of printing. To date, it is estimated that the 658 energy efficient transformers that have been replaced have reduced electricity consumption by 8% in comparison with the previous year.  

With the money saved through these energy saving programs, the Municipality has committed to building five new drinking water plants in the more rural areas, bringing drinking water to communities that still lack this municipal service. 

Finally, one unanticipated result of the program has been the immense interest that other municipalities have shown towards the structure and role of the AEMC. This unique commission has proven itself over the past three years and is now being seen as a model for other municipalities.

The personal intervention of the Mayor, and his political will to make these programs work has helped the initiative immensely. The Mayor made sure the Municipality took an active role as a member of ICLEI-Mexico by becoming vice-chair of its Board. As the president of the AEMC, he played an active role in the development of the AEMC and its programs.  

The quick success of this initiative shows that a lack of time is not always a barrier. This municipal government was elected in 2007 and was able to create a comprehensive energy saving program that yielded positive results within months.

One aspect of the program that has not worked well is the implementation of the energy saving recommendations in municipal offices and buildings. The reception on the part of the public servants was not very positive and the municipality has still not been able to save much energy on that front. However, members of the AEMC believe it is important to persevere and will continue with its environmental education and awareness activities  

One of the major challenges the AEMC is facing is the lack of guaranteed continuity in these programs. A new municipal government will come into power on January 1, 2010.⁴  If energy saving and environmental protection are not priorities for the new administration, Municipio de Centro could see all its energy saving efforts abandoned and the AEMC dismantled. One way to approach this problem would be to transform the AEMC into an autonomous public agency that would work independently of the municipal government in power. This would allow continuity and enhance the credibility and weight of the AEMC, both within the Municipality and nationally. 

Another challenge facing the commission is the chronic lack of funds to finance the Municipality's energy program. This has impeded the full development of the initiative, as we have seen in the case of the efficient water pumps program; due to the lack of financing, the Municipality could install only 10 new pumps instead of the 43 that were originally planned.

Municipio de Centro's staff have one recommendation to other municipalities that are considering such initiatives – it is important to start the process with an accurate inventory of energy consumption. Such as study provides a baseline with which to measure progress over the long term and may produce immediate results in terms of financial savings. As mentioned above, Municipio de Centro's energy inventory revealed that the Municipality was being charged to power some 3800 street lamps too many. 

⁴ In Mexico, Municipal governments change every three years, with no right to re-election. These elections often mean an immense staff turnover, which often results in program interruptions, modifications and/or cancellations.

As the municipal administration changes every three years with no possibility of re-election, it is difficult to have a concrete idea of what to expect with such municipal initiatives on a long-term basis. The employees involved in such initiatives hope their efforts will be long-lasting, but no one can know for sure.

In the three years that have passed, Municipio de Centro has gained experience and acquired national credibility when it comes to energy conservation programs. Aguascalientes (another Municipality covered in this research) and Municipio de Centro are now considered the leading municipalities in Mexico in terms of energy conservation and energy efficiency programs. In July 2009, the AEMC was  preparing to host the third meeting on public lighting systems for the south-southeast region of Mexico and 42 municipalities were expected to be present. The AEMC believes that this type of information sharing is very positive and is happy to contribute to the development of similar initiatives elsewhere.

Municipio de Centro was also present at the last ICLEI World Congress that took place in Edmonton, Canada in June of this year. Once again, this was an opportunity to exchange experiences and ideas for more sustainable energy projects at the municipal level.

Finally, the Municipality intends to maintain its participation in the voluntary GHG inventory and hopes to apply for international funds under the Clean Development Mechanism of the Kyoto Protocol.

Interviewees

Arq. Ramón Delgado Aguirre
Operation's Coordinator
Comisión de Ahorro de Energía
Municipio de Centro, Tabasco
52 (993) 394 7518
r.delggado@gmail.com

Biologist Antonio Enrique Delangel Flores
Environment Coordinator
Municipio de Centro, Tabasco
52 (993) 316 8998
delangelf1@hotmail.com

Documents

• Ayuntamiento de Centro. (2009a) Mejores Prácticas y Modernización de Instalaciones
  y Aplicación de Nuevas Tecnologías en el Municipio de Centro, Tabasco. Unpublished document. (Provided courtesy of Ramon Delgado Aguirre)
• Ayuntamiento de Centro. (2009b) Actions taken in Municipio de Centro in regards with the environment and energy efficiency issues. Unpublished document. (Provided courtesy of Ramon Delgado Aguirre)
• Ayuntamiento de Centro. (2009c) Eficiencia Energética en el Municipio de Centro, Tabasco, México. Unpublished document. (Provided courtesy of Ramon Delgado Aguirre)
• Ayuntamiento de Centro. (2008) 2da. Reunión del G.T. "AEMC 2007-2009. Unpublished document. (Provided courtesy of Ramon Delgado Aguirre)
• Ayuntamiento de Centro. (2007) Plan Municipal de Desarrollo 2007-2009. Public document.
• CIMEJ, CFE, FIDE. (2008) XIX Congreso Nacional de Ahorro de Energía Expo-Guadalajara 20,21 Y 22 de agosto de 2008. Public document.

Web Resources

• Article "Seminario de Eficiencia Energética:"Transformadores Energéticamente Eficientes" to be found on the ICLEI-Mexico webpage.
• Municipio de Centro
• CFE - Comisión Federal de Electricidad.
• CONUEE - Comisión Nacional para el Uso Eficiente de la Energía.
• Ergon Plus Ingenieria, SA de CV
• FIDE - Fideicomiso para el ahorro de Energía Electrica.
• ICLEI Mexico
• INEGI - Instituto Nacional de Estadística, Geografía y Informática.
• Kyoto Protocol - CDM
• SEMARNAT
• World Mayors and Local Governments Climate Protection Agreement

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