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“Brazil Transformative Investments for Industrial Energy Efficiency (PotencializEE)” Mid-term ELE finds it’s likely to become industry standard in Brazil

May 28, 2024

The project, PotencializEE, aims to unlock the potential of energy efficiency (EE) in industrial SMEs in Brazil. The project specifically targets industrial SMEs, the EE supply chain, and financial institutions. It intends to establish a reliable project pipeline, improve the capacity of local banks and support government energy efficiency policies. 

AMBERO and Oxford Policy Management conducted a mid-term Evaluation and Learning Exercise (ELE) regarding the project’s progress. Here are a few significant outcomes of the ELE:  

  • The project’s communication and awareness strategy has successfully recruited more than a thousand SMEs and engaged manufacturers and suppliers of the best available energy efficiency technologies, changing mindsets about savings and production process improvements associated with EE solutions. 
  • The São Paulo State Guarantee Fund for Energy Efficiency Development (FAEE) has faced delays in its implementation due to administrative and legislative procedures. However, once operational, it is expected to lower the financial barriers for energy efficiency initiatives supported by the project. 
  • PotencializEE is likely to increase the number of successful EE projects implemented in SMEs in São Paulo and other locations. The first successful projects financed through public risk-sharing mechanisms (FG-Energia and FAEE) may convince an increasing share of Brazilian SMEs to engage in thermal EE and catalyse private financing. 
  • A comparable project could thrive in other countries given the mandatory “ecosystem” components such as an adequate industrial park, industry-linked technology-development and vocational training organisation, development bank, and sufficient political support at the central and state/provincial levels. 

Following the main findings and recommendations of the ELE, the TSU and the project have compiled a management response to address the key points that were raised. The management response and the mid-term ELE report are now available in the Knowledge & Learning Hub.