REEEP's Policy and Regulation Activities

Ol Tukai Lodge, November 2006

Marianne Moscoso-OsterkornREEEP International Director

e-Parliament Energy Hearing

• REEEP is a fast growing global partnership for clean energy

• 200 partners, including 34 governments, businesses and NGOs, have signed up to REEEP

• The total global network comprises more than 3,500 associated members and experts

• REEEP is currently funded by the EU and 10 governments: Austria, Australia, Canada, Germany, Ireland, Italy, the Netherlands, Spain, US, and UK, the major donor of REEEP

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REEEP - the Renewable Energy and Energy Efficiency Partnership

• REEEP targets both the demand and supply side of energy systems to trigger changes towards sustainability

• REEEP's vision is to reduce market barriers and financial obstacles to renewables and energy efficiency systems

• REEEP believes in action on the ground via project activitiesthat are targeted on policy improvements and innovativefinance mechanisms

• REEEP improves the access to sustainable energy for the poor

REEEP's Vision and Focus

REEEP is Driven by Regional and Local Demand

REEEP Regional Office Africa

REEEP Regional Office Central Europe

REEEP Regional Office East Asia

REEEP Regional Office Latin America &

Caribbean

REEEP Regional Office North America

REEEP Local Focal Point MEDREP

REEEP Regional OfficeSouth Asia

REEEP Regional OfficeSouth East Asia & Pacific

REEEP Regional OfficeRussiaREEEP International

Secretariat

The 100 REEEP Projects encourage local initiatives

Number of Projects

0 5 10 15 20 25

Global

North Africa

Subsaharan Africa

Latin America & Caribbean

North America

SE Asia & Pacific

East Asia

South Asia

Russia & FSU

C&E Europe

Number of Projects

REEEP delivers tangible solutions in collaboration with partners

29%

71%

Financing Policy

The Gleneagles Plan of Action Recognises REEEP as a Partnership supporting EE in Buildings and Renewables

REEEP's current project portfolio:

EE could meet 30%-40% of future energy demand

• Taylor made solutions are necessary - Necessity of national assessments of EE/RES potential

• EE/RES must be integrated in the national resource/energy planning/rural electrification – road map

• Increase impact through combination of EE/RES • Learn from best practice in similar regions• EE is far more complex than RES ( many stakeholders, no

lobby) • Provide institutional capacity• Provide long term reliable policies and regulations EE requires behavioural change – champions are needed

The role of policy makers and governments for the uptake of EE is crucial

• Provide sufficient institutional capacities for EE issues

• Implement legal framework which provides long term incentives for change

• Act as a frontrunner ( public procurement, public obligations )

• Ask those to be Change Agents who really can act as such

• Remove subsidies from non energy efficient sectors

Existing finance schemes have to be adapted in favour of EE

• New mandate to developing banks and World Bank

• Micro Finance with strong involvement of local finance institutions

• Redesign CDM in favour of EE• Develop new mechanisms which can support

small sized projects: such as guarantee facilities, mixed risk portfolios, VERs market

• Local ESCOs

• Support Policy Implementation– Ghana: Implementation of labeling and standards– Mexico: Regulation methodologies– China: Policy recommendations for low energy

building program based on international best practices– Nigeria: Support Implementation of Government Directive on

Biofuel Blending Program• Provide Access to Information

– EU, USA, China, India: international law database on EE– APEC: globalizing Energy Standard Information Systems (ESIS)– Global: Reeegle

• Increase Awareness in the Policy Sector– Tanzania, Zambia: Capacity Building Energy Regulators

REEEP Blueprints for EE Policy

Capacity Building in Energy Efficiency and Renewable Energy Regulation and Policy-Making in Africa

• Enhance the regulating and policy making capacity of Ghana,Tanzania and Zambia

• Review of current energy regulation/ policies and rural electrification strategies

• Analysis of energy consumption patterns in the industrial and commercial sectors

• Development of a comprehensive training package relevant to the context of developing countries

Financial Models for Energy Efficiency in Water Services across South Africa

Reduce energy costs by $3.8 million from running systems and saved 14,250 MWh of energy and 7 million kL of water annually

7 cities in South Africa

Developed tools to facilitate project funding and case studies based on the experience of the Soweto and Emfuleni municipalities

Can be replicated in any city in developing countries

REEEP International SecretariatVienna International Center

Room D1732Vienna, Austria

Marianne.Osterkorn@reeep.org+43 1 26026 3677

www.reeep.orgwww.reegle.info

The "la Venta III" project in Mexico will be an example ofbest practice for large scale RES development

Objective: assist Mexico in developing initial experience in commercially-based grid-connected RES applications. Starting date: 3/2004, duration: 7 years

• Construction of a 101 MW wind farm is tendered by national utility CFE and constructed / operated by an IPP.

• Project Management: the Ministry of Energy (SENER) and CFE

• Cofinancing provided by the World Bank/Global Environment Facility (GEF)

• Laws allow for 100% depreciation within the first year for clean energy equipment.

1. Financial Mechanism- energy production subsidy of 1.1 USD per kWh for the first 5 years- covers difference between the CFE price for energy produced at "la Venta III" and the generation costs bid of the winning IPP

 2. Technical and Legal Assistance- addressing analytical and policy barriers- capacity building within national utility CFE- strengthen SENER's role to serve as a “one stop shop” for RE projects- design of a system of green certificates for trade with US states seeking to reduce emissions - development of a national wind resource map and a wind development plan for southern Isthmus of Tehuantepec area

3. Project Management support to SENER.

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The "la Venta III" Project consists of 3 Components