California Center for Sustainable Energy

The Border Energy Savings Program helped identify energy efficiency opportunities and/or onsite power generation projects in the San Diego-Tijuana border region, specifically for Tijuana-based industrial companies. The program was a joint effort by North American Development Bank ( NADBANK), California Energy Commission ( CEC), Tijuana Economic Development Board ( CDT) and the Secretariat of Economic Development for Baja California, Mexico.

Program Rationale

Based on hundreds of recent energy audits,  CCSE has found that facilities of all types save an average of 20 percent of their current energy bill through energy efficiency investments. Since industrial processes tend to be energy intensive, savings of 20 percent is a reasonable target for them. In most cases, the improvements necessary to reduce energy use will pay for themselves in one to four years.

How the Program Worked

1. CCSE and CDT identified a list of industrial clients meeting qualifying criteria to receive a free preliminary energy audit.
2. CCSE engineering staff conducted seven free preliminary energy audits to help facility owners and managers understand their potential to save energy. Engineers assessed lighting, HVAC, industrial processes, and onsite power generation (e.g., cogeneration) opportunities. Only facilities that have the intent to follow through with audit recommendations qualified for this program.
3. CCSE worked with the facility owners and managers and NADBANK to develop a financing and implementation strategy to install audit recommendations.

Selection of Industry Participants
This initial phase included a small number of audits, so it was important that each facility selected meet initial criteria for success. Note that NADBANK was interested in financing projects worth $500,000 or more. Facilities with the following characteristics were most attractive:

• large users of energy, with monthly bills of $25,000 or more;
• facilities in which energy accounts for a relatively high portion of production cost;
• proactive management committed to energy cost reduction;
• sufficient liquidity to contribute substantially to project initial cost;
• firms that own their facility; and
• firms already planning to upgrade production lines and other infrastructure.

Benefits to Participating Industries
CCSE’s engineering team performed an energy-focused review of each facility and provided a written report with a prioritized set of recommendations for action—tailored to the specific facility. This included:

• information about relevant, appropriate efficient technology options, costs, operational savings and application notes;
• a prioritized list of recommended measures that offer best value;
• analysis of expected costs and savings, including impacts on energy and demand charges, simple payback and ROI estimates;
• ideas for project financing; and
• referrals to relevant specialists for in-depth energy design support and project execution.