Box 3.7 An Extensive Solar Water Heating Program in Rizhao, China

not aff ord to pay full cost recovery prices for energy services. Social equity also means that cities should link sustainable energy actions with energy equity objectives. A good example is promotion of the use of compact fl uorescent lamps in low-income or slum areas.

Environmental sensibility requires that cities be mindful of the local, regional, and global environmental impacts of energy practices and adjust energy plans to mitigate impacts. For example, in the City of Rizhao in Shandong Province, China, the adoption of sustainable urban energy solutions, while addressing social equity issues, has made good business and environmental sense (box 3.7).

Indicators and Benchmarks

Sustainable urban energy planning and practice are elusive without realistic metrics to quantify performance (using indicators) and measure progress (using benchmarks). For cities in developing countries, indicators and benchmarks do not merely reveal gaps; they also inspire actions to achieve better energy services without reducing aff ordability or compromising the environment, as exemplifi ed in the case of the City of Rizhao. Developing metrics is a worthy, but diffi cult task because every city is unique in its energy uses and levels of energy service. We should therefore focus on a small set of key indicators that allow meaningful cross-city comparisons. Industrial energy consumption and related indicators should not be included and need to be addressed separately. One must also bear in mind that many developing-country cities are underserved in energy (lack of access or lack of aff ordability) compared with their developed-country counterparts. Thus, the indicators that are sensitive to distortion (for example, per capita–denominated indicators) should be carefully considered. In general, cities should have two sets of metrics on sustainable energy:

BOX 3.7

An Extensive Solar Water Heating Program in Rizhao, China

Rizhao, a city in northern China with a population of 350,000, is using solar energy for water heating and lighting. In the early 1990s, a municipal government retrofi t program mandated that all buildings install solar water heaters. After 15 years, 99 percent of the households in the central district had obtained solar water heaters. Solar water heating is now ubiquitous. The city uses more than 500,000 square meters of solar panels to heat water. This is equivalent to the number of electric water heaters necessary to produce about 0.5 megawatts of power. Most traffi c signals and street and park lights are powered by solar cells, reducing the city’s carbon emissions and local pollution. Using a solar water heater for 15 years costs about US$1,934 (Y 15,000), which is less than the cost of a conventional electric heater. This shift has generated annual household savings of US$120 in a part of China where per capita incomes are lower than the national average.

This achievement is the result of a convergence of three factors: a regional government policy that promotes the solution and provides fi nancial support for the research, development, and deployment of solar water heating technologies; a new industry that capitalizes on fresh opportunities; and city offi cials who have the vision

Source: Bai (2006). and the leadership to implement changes in the attitudes of other stakeholders.

How does it work? The municipal government, the community, and local solar panel producers have had suffi cient political will to adopt and apply the technology.

The provincial government of Shandong provided subsidies and funded the research and development of the solar water heater industry.

The cost of a solar water heater was reduced to the cost of an electric water heater, about US$190. This represented about 4 or 5 percent of the annual income of an average household in Rizhao and about 8 to 10 percent of an average rural household income.

Panels are simply attached to the exteriors of buildings. The city helps install the panels.

The city raised awareness through community campaigns and education. Rizhao held public seminars and supported advertising on television.

The city mandated that all new buildings incorporate solar panels and oversaw the construction process to ensure proper installation.