K KUWA AIT

41 Pages·2015·2.92 MB·English

ECONNOMIC AND SOCIALL COMMISSSION FORR WESTERRN ASIA

Unitedd Nations DDevelopmeent Accounnt project
Promoting Eneergy Efficieency Investments
for Cllimate Chaange Mitiggation andd Sustainaable Devellopment

Case studdy

KKUWAAIT

ANALYYSIS OF EECONOMICCAL AND ENVIRONNMENTAL BENEFITSS OF PROOMOTING
ENERGY EFFFICIENCYY IN BUILDDINGS

DDeveloped by:
MMoncef Krrarti
Table of Contents

Abstract .....................................................................................................................................................6 
Background ...............................................................................................................................................7 
Energy Sector Characteristics....................................................................................................................8 
Current Building Energy Efficiency Policies ......................................................................................... 12 
Potential of Energy Efficiency in Buildings ........................................................................................... 14 
Potential for Commercial Buildings ................................................................................................... 15 
Potential for Residential Buildings ..................................................................................................... 16 
Assessment Analysis Methodology ........................................................................................................ 20 
Economic, Environmental, and Policy Analysis .................................................................................... 22 
Energy Savings Analysis .................................................................................................................... 22 
Economical and Environmental Analysis........................................................................................... 24 
Policy Design Considerations................................................................................................................. 27 
Cost-Effectiveness Analysis ............................................................................................................... 27 
Job Creation Analysis ......................................................................................................................... 29 
Barriers for Energy Efficiency Policies Implementation ....................................................................... 30 
Conclusions and Recommendations ....................................................................................................... 31 
References .............................................................................................................................................. 33 
Appendix A: Building Energy Conservation Code of Practice of 1983 and 2010 ................................. 35 
Appendix B: Cost-Effectiveness of Optimal Energy Efficient Designs for Residences in Kuwait ....... 39
List of Figures

Figure 1: Per Capita Carbon Emissions for Selected Countries ....................................................................7 
Figure 2: Per Capita Electricity Consumption for Selected MENA Countries (Source: IEA, 2006) ............8 
Figure 3: Country Ranking and Level of Energy Consumption Subsidies per Person in US Dollars during
2011 (Source: Capital Standards, 2013) ........................................................................................................8 
Figure 4: Annual per Capita Energy Use and Population Levels for Kuwait ...............................................9 
Figure 5: Variation of Annual Electrical Peak Demand between 2002 and 2011 in Kuwait with Projected
Peaks for 2020 and 2030 ............................................................................................................................ 10 
Figure 6: Electrical Demand End-use Distribution in Kuwait during 2011 ............................................... 11 
Figure 7: Monthly Electrical Load versus Monthly Average Outdoor Temperature for Kuwait in 2005 and
2011 ............................................................................................................................................................ 12 
Figure 8: End-Use Distribution for a Kuwaiti Office Building Associated with (a) Annual Electricity
Energy Consumption and (b) Electricity Peak Deamnd (Source: Krarti and Hajiah, 2011) ...................... 16 
Figure 9: End-USe Distribution for a Kuwaiti Residence Associated with (a) Annual Electricity Energy
Consumption and (b) Electricity Peak Demand (Source: Krarti and Hajiah, 2011)................................... 17 
Figure 10: Life Cycle Cost Relative Ratio as a Function of Source Energy Savings for a Residence Located
in Five Selected GCC Cities ....................................................................................................................... 19 
Figure 11: Rendering for the Existing Kuwaiti House Energy Model Used in the Simulation Analysis .. 20 
Figure 12: Maximum Percent Savings in Annual Energy Consumption for Some Energy Efficiency
Measures Applied to an Existing House in Kuwait .................................................................................... 21 
Figure 13: Annual Electrical Consumption for Five House Design Configurations .................................. 23 
Figure 14: Annual Electrical Consumption Percent Savings by Applying Code 2010 on Code 1983 and
Basecase House Configurations ................................................................................................................. 23 
Figure 15: Impact of Market Share on the Economical and Environmental Benefits of the Building Energy
Efficiency Retrofit Program ....................................................................................................................... 26
List of Tables

Table 1: Electrical Power Stations, their Capacity, and their Peak Load in Kuwait during 2011 .................9 
Table 2: CO Emissions Intensity for Select MENA Countries ................................................................. 10 
2
Table 3: Types and Number of Buildings in Kuwait at the end of 2011 .................................................... 11 
Table 4: Comparative Summary of the Requirements for Kuwait Energy Conervation Code of Practice of
1983 and 2010 ............................................................................................................................................ 13 
Table 5: General Characteristics and Annual Energy Use of Office Buildings in Kuwait ........................ 15 
Table 6: List of EEMs for the Optimal LCC Case and Associated Initiated Costs and Annual Energy Use
Savings ....................................................................................................................................................... 19 
Table 7: Main Characteristics for 5 House Energy Models Considered in the Analysis ........................... 21 
Table 8: Number, Annual Energy Use, and Peak Demand for all Building Types Considered in the Analysis
 .................................................................................................................................................................... 22 
Table 9: Economical and Environmental Benefits for Level-1 Building Energy Efficiency retrofit Program
for Kuwait Based on 2011 Building Stock Statistics ................................................................................. 24 
Table 10: Economical and Environmental Benefits for Level-2 Building Energy Efficiency Retrofit
Program for Kuwait Based on 2011 Building Stock Statistics ................................................................... 25 
Table 11: Economical and Environmental Benefits for Level-3 Building Energy Efficiency Retrofit
Program for Kuwait Based on 2011 Building Stock Statistics ................................................................... 25 
Table 12: Average Costs for Energy Retrofits of Buildings in Kuwait (in US Dollars) ............................ 27 
Table 13: Total Implementation Costs for Level-1 Building Energy Efficiency Retrofit Program ........... 28 
Table 14: Total Implementation Costs for Level-2 Building Energy Efficiency Retrofit Program ........... 28 
Table 15: Total Implementation Costs for Level-3 Building Energy Efficiency Retrofit Program ........... 28 
Table 16: Cost-Effectiveness of Energy Efficiency Retrofit Programs for all Kuwaiti Building Stock .... 29 
Table 17: Cost-Effectiveness of Energy Efficiency Retrofit Programs for only Private Residential Buildings
in Kuwait .................................................................................................................................................... 29 
Table 18: Employment Creation Impacts for Various Energy Sources from $1 Million of Expenditures
(Source: Pollin et al., 2009) ........................................................................................................................ 30 
Table 19: Number of Job Years that Could be Created from Building Energy Efficiency Retrofit Programs
in Kuwait .................................................................................................................................................... 30
Acronyms

A/C: Air Conditioning
CFLs: Compact Fluorescent Lamps
COP: Coefficient of Performance
ECMs: Energy Conservation Measures
EEMs: Energy Efficiency Measures
GCC: Gulf Cooperation Council
HVAC: Heating, Ventilation and Air Conditioning
IEA: International Energy Agency
KD: Kuwaiti Dinar
KISR: Kuwait Institute for Scientific Research
LCC: Life Cycle Cost
MENA: Middle East and North Africa
MEW: Ministry of Electricity and Water
WWR: Window to Wall Ratio
Abstract
In this report, an overview of the Kuwaiti energy sector characteristics is presented to include its
generating capacity as well as its end-use consumption over the last two decade. Moreover, a
detailed analysis of the total and end-use energy consumption attributed to various building types
is provided. The report presents the specific regulations of the building energy conservation code
of practice using its original version of 1983 and its revised version of 2010. The code
enforcement mechanism is also outlined in the report. Based on a detailed review of the reported
literature, the potential energy savings opportunities and their cost-effectiveness for Kuwaiti
buildings are discussed. Using a comprehensive series of analyses, the report summarizes the
economical and environmental benefits of improving energy efficiency for both new and
retrofitted buildings in Kuwait. It is found that the 2010 revised version of the energy conservation
code of practice can provide an additional 23% savings compared to the original version of the
code developed and implemented in 1983.

Moreover, it is found that without a gradual reduction of energy subsidies, the establishment of a
mandatory energy efficiency retrofit program in Kuwaiti through implementation of basic energy
efficiency measures and improved operating strategies for the existing building stock can provide
significant economical and environmental benefits to Kuwait as well as the creation of significant
job opportunities.
Backgroound
Worldwiide, buildinggs account for about 440% of the primary ennergy consuumption. Inn the Middlee
East andd North Afrrica (MENAA region, bbuildings coonsumes even higher ffraction of the primaryy
energy cconsumptionn. For insttance, 70% of total eelectrical ennergy consuumption inn Kuwait iss
attributedd to buildinngs. Considdering all thhe sectors ((i.e., buildinngs, industrry, and trannsportation)),
Qatar andd Kuwait haave the highhest per cappita carbon eemissions inn the world as depictedd in Figure 11
(WBCDSS, 2009).

Figuure 1: Per Capita Carrbon Emisssions for Seelected Couuntries

Figure 2 shows the per capita eelectricity cconsumptionn in severall MENA coountries. It iis should bee
noted thaat for severral MENA ccountries inncluding Kuuwait, the mmajority of tthe electriccal energy iss
used to ooperate builddings (EIA,, 2006). Thee trend for hhigh energyy demand foor buildings in the Arabb
region is expected too continue over the neext decade ddue to high population growth andd significannt
urbanizattion. Indeedd, the annuaal urban poppulation groowth rates iin Arab couuntries range between 22
to 6% wwith an averrage for thee region off 3.8% accoording to aa UN-Habittat report (UUN-Habitatt,
2012). AAs a result, the buildinng sector is one of thee fastest groowing sectoors in the AArab regionn.
Specificaally, accordding to a reecent reporrt, a total oof $4.3 trilllion is foreecasted to bbe spent onn
constructtion in the MMENA regiion over thee next decadde, represennting a cummulative groowth of 80%%
(Oxford EEconomics,, 2009).
Electricityy consumpption per capita (kWWh/persoon)
180000
160000
140000
120000
100000
80000
60000
40000
20000
0

Figure 2: Per Cappita Electriccity Consumption forr Selected MMENA Couuntries (Souurce: IEA,
2006)

Moreoveer, several MMENA couuntries provvide significcant energyy subsidies in order too reduce thee
electricityy and fuel prices to ttheir citizenns. In partiicular, Unitted Arab off Emirates (UAE) andd
Kuwait aare the top two countrries in the world for eenergy consumption ssubsidies peer person ass
illustrated from Figgure 3. It is reported thhat for its 22012/2013 budget, Kuuwait allocaates KD 3.11
billion of the 6.3 bbillion susiddization forr the consuumer servicees to the eelectricity suubsidizationn
(Capital Standards, 2013). It iss also reporrted that thee actual cossts for geneerating and distributingg
electricityy in Kuwaiit during 20011 is 37 fills/kWh (i.e., $0.134/kWWh) but it iss sold to thhe customerss
for only 22 fils (i.e., $$006/kWh),, resulting inn 95% subsidies from tthe governmment (MEWW, 2011).

Figure 3: Countryy Ranking and Level of Energy Consumption Subsiddies per Perrson in US
Dollars duuring 2011 (Source: CCapital Stanndards, 20113)
Energy Sector Chharacteristtics
The Minnistry of EElectricity aand Water (MEW) is the sole ssupplier off electricityy and water
resourcess in Kuwaitt. The increaasing popullation in Kuuwait and the scarce waater resourcees is forcingg
MEW too increase itts generatinng capacitiess with highher investmeents in neww power plaants. Indeedd,
over the last decadee, Kuwait has seen its ppopulation as well as its per capiita energy cconsumptionn
increase steadily as shown in FFigure 4. Thhe data obtaained from MMEW indiccate that thee energy usee
per person has moore than doubled bettween 19800 and 20055 (MEW, 2012). Mooreover, thee
populatioon has douubled from 1992 to 20005 due too high demand in laboor force affter the Iraqq
invasion of 1990-19991. The grrowth in thee populatioon combinedd with highh energy use by personn
has signiificantly inccreased the requiremennts for elecctrical poweer generatioon to meet the nationaal
needs esppecially in tthe growingg residentiall sector.

3.00
Popuulation
2.50
2
9
9
1
e  2.00
v
ti
a
el
R 1.50
o 
ti
a
R 1.00
0.50
19992 1994 1996 1998 2000 2002 2004 20006 2008 2010

Figure 4: Annual perr Capita Ennergy Use and Populaation Levells for Kuwaait

The seawwater desaliination proccess used inn Kuwait ass well as inn most of thhe gulf region requiress
about 10 times moree energy thaan surface ffresh water productionn. In 2011, KKuwait hadd 8 electricaal
power sttations withh a combineed capacityy of 13115 MW servinng a peak lload of 112220 MW ass
detailed iin Table 1 ((MEW, 2012).

Table 1: Electricaal Power Sttations, theeir Capacitty, and their Peak Loaad in Kuwaait during
2011
Power stattion  Capacity    Peeak Load on JJuly 27, 20111 
(MW)   (MWW) 
Shuwaikh  Station  120  1200 
Shuaiba Soouth Station  660  5400 
Shuaiba Noorth Station  600  6000 
Doha East  Station  1018  7700 
Doha Westt  Station  2381  17220 
Az‐Zour Soouth Station  4646  41110 
Sabiya Stattion  3690  33660 
All Stations  13115  11220 

Kuwait ccurrently uttilizes almoost 300,0000 barrels off oils per day for elecctricity geneeration. Thee
consumpption is exppected to inncrease to as high as 900,000 bbarrels per day or 20%% of its oiil
productioon by 20300, thus signiificantly redducing oil rrevenues off the countrry. Moreovver, the totaal
energy suubsidies to consumers are estimatted to exceeed KWD 9 bbillion by 22030. It is exxpected thaat
Kuwait mmay face ennergy shortaage during the summeer of 2014 and 2015 iif the projeccts aimed aat
increasinng daily prooduction at Subbiya poower plant and the Soouth Az-Zouur power pplant by 5000
megawattts each as wwell as the cconstructionn of the Norrth Zour powwer plants aare not impllemented onn
time (MEEW, 2012).

Accordinng to an IEAA study (IEA, 2012), KKuwait has one of the hhighest carbbon emissioons intensityy
in the MMENA regioon due to itts high reliaance on oill to producee electricityy and desalinate waterr.
Table 2 summarizees the CO emissions intensity expressed inn gCO /kWWh for seleccted MENAA
2 2
countriess during 2009. Kuwaitt generates 870 of gCOO for eachh kWh of eelectricity, ssignificantlyy
2
higher thhat the worrld average of 573 gCCO /kWh. IIt should bee noted thaat countries that utilizee
2
natural ggas to generate a siggnificant poortion of thheir electricity have low carbonn emissionss
intensity.. For instannce, the shaare of naturral gas in thhe total elecctricity geneerated in QQatar is over
85% (IEAA, 2012).

Tabble 2: CO Emissions Intensity ffor Select MMENA Couuntries
2
Couuntry COO emissionns intensityy
2
(gCO /kkWh)
2
Libyya 8722
Kuwwait 8700
Sauudi Arabia 7577
Syriia 641
UAE 631
Jorddan 581
Tunnisia 5388
Qatar 4944
Egyypt 4666
Worrld (Averagge) 5733

Figure 55 illustrates the annuaal electricall peak demmand variatiion from 22002 througgh 2011. AA
regressioon analysis oof the data indicates thhat there is aa consistentt growth ratte of the eleectrical peakk
demand over the 1980’s peakk with abouut 6% averaage increase rate in thhe last decade (MEWW,
2012). BBased on thhe rate of inncrease of 6% observved in Figuure 5, the aannual peakk demand iss
predictedd to be 15,0000 MW byy 2020 and over 20,000 MW (almmost doublee the currentt peak loadd)
by 2030.

20000
d 18000
n 16000
a
m
14000
e y = 4533.03x + 6571.3
D 12000
k W) R²² = 0.9846
a 10000
eM
P( 8000
l
a 6000
u
n
n 4000
A
2000
0
22002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2020 20300

Figuree 5: Variatiion of Annuual Electriccal Peak Deemand betwween 2002 and 2011 in Kuwait
witth Projecteed Peaks foor 2020 andd 2030