Energy Efficiency Improvements in the Context of Energy Trade and Regional Integration in the Caucasus and Central Asia

Oleg DzioubinskiEnergy Efficiency 21 Programme Manager

UNECE Sustainable Energy DivisionInternational Conference

International Trade Law in the Region of the Caucasus and Central Asia: Between Regional Integration and Globalization

Baku, 30-31 May2013

United Nations Economic Commission for Europe (UNECE)

- Established in 1947- One of five UN Regional Commissions- 56 member States - Programmes include:

- Environment- Transport- Statistics- Trade- Forestry- Housing and Land Management- Economic Cooperation and Integration - Sustainable Energy

Key Energy Issues

• Energy Security• Sustainable Energy Strategies• Energy Efficiency and Renewable Energy• Liberalisation of Energy Markets• Energy Pricing Policies• Norms, Standards & Classification Systems• Cleaner Electricity Production from Fossil Fuels• Electric Power, Coal and Natural Gas Infrastructure

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Committee on Sustainable Energy

Energy Security Dialogue

Working Party on Gas & Gas Centre

Energy Efficiency 21 Programme

Group of Experts on Cleaner Electricity Production

Group of Experts on Reserves and Resources Classification

Group of Experts on Coal Mine Methane

Regional Advisory Services

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Energy Efficiency in UNECE Region

• Energy efficiency represents win-win solution to: Mitigate climate change

Enhance energy security in both importing and producing countries

Guarantee sustainable models of growth for future generations

• UNECE Region has a widely differentiated situation: both world’s best and worst performers are in the region

• Differences due to economic transition, lack of investments, unavailability of best technology, lack of awareness, pricing and other policy barriers

• Integration may help overcome some of the barriers

• Various UNECE projects are addressing all of these issues since early 1990s

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Energy and Carbon Intensity in UNECE countries and world average

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

World AverageUzbekistan

USAUnited Kingdom

UkraineTurkmenistan

TurkeyTajikistan

SwitzerlandSweden

SpainSloveniaSlovakia

SerbiaRussian Federation

RomaniaPortugal

PolandNorway

NetherlandsMoldova

MaltaLuxembourg

LithuaniaLatvia

KyrgyzstanKazakhstan

ItalyIsrael

IrelandIceland

HungaryGreece

GermanyGeorgia

FYR MacedoniaFranceFinlandEstonia

DenmarkCzech Republic

CyprusCroatia

CanadaBulgaria

Bosnia andBelgiumBelarus

AzerbaijanAustria

ArmeniaAlbania

Carbon Intensity

Energy Intensity

Energy Efficiency 21 Programme

• Launched in 1991 – eighth 3-year phase (2012-2015)• Enhance East-West Trade and Cooperation• Environment – UNECE Conventions• UNFCCC Kyoto Protocol• Improve Capacities and Networking• Energy Efficiency Policy Reforms• Financing Energy Efficiency Investments

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EE21 Programme Plan 2012-2015

General Objective

To enhance regional cooperation on energy efficiency market formation and investment project development to reduce greenhouse gas emissions in economies in transition

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Selected Projects of EE21 Programme

• Increasing energy efficiency for secure energy supplies (completed)

• Enhancing Synergies in the CIS National Programmes on Energy Efficiency and Energy Saving for Greater Energy Security

• Analysis of Advanced Technologies in Energy Efficiency and Renewable Energy in the Framework of the Global Energy Efficiency 21 Project and Preparation of Recommendations on its Application with Special Emphasis on Central Asian Region (subproject of the GEE21)

• Financing Energy Efficiency and Renewable Energy Investments for Climate Change Mitigation (FEEI)

• Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (subproject of the GEE21)

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Cooperation between CIS member Statesin Energy Efficiency

• Agreement on cooperation between CIS member States in the area of EE and ES (2002, CIS Executive Committee)

• Main directions and principles of interaction between CIS member States in the area of EE and ES (2005, CIS Economic Council)

• Strategy on interaction and cooperation between CIS member States in the area of electric power until 2020 (2005, Electric Power Council)

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Cooperation between CIS member Statesin Energy Efficiency

• Harmonization of legislation and norms is anticipated

• Establishment of a common system of norms and technical specifications is anticipated

• Analytical research, information exchange

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Parallel operation of power systems of CIS countries

• Unified Power System of Central Asia

• Power systems of 10 CIS countries operate in parallel within CIS power pool

• Power systems of Lithuania, Latvia, Estonia and Mongolia operate in parallel to the CIS power pool

• Electricity transmission and power interchanges with power systems of Armenia, Norway, Finland, Poland, Slovakia, Hungary, Turkey, Iran, China, and Afghanistan.

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Parallel operation of power systems of CIS countries

• Agreement on parallel operation of the power systems of the CIS countries (1998)

• “…the parties will take steps to form and develop an open and competitive market for electric power and for capacity based on the electric power systems of the countries that are parties to the Agreement” (article 13)

• Concept paper for frequency and power flow control in the power systems of the CIS and the Baltic States

• Rules for planning interchange schedules

• Rules and recommendations for frequency and power flow control

Recommendations for developing cooperation

• to provide available capacity of transmission systems for transiting electric power generated by member-states

• to create favorable conditions for rational use of hydropower resources and electric power

• to render mutual assistance in mitigating and liquidating the consequences of natural disasters and accidents in the power sector

• to harmonize and liberalize customs regulations regarding electric power trade and transit

• to carry out comprehensive mutual exchange of information

• to develop and upgrade the electric networks

• to develop rules for cross border trade of electric power (capacity)

Global Energy Efficiency 21 (GEE21) Project

Launched in 2008 – support from Russian Federation

First project – Global Energy Efficiency 21: Cooperation between the United Nations Regional Commissions on Energy Efficiency for Climate Change Mitigation – successfully completed in 2011

Publication Financing Global Climate Change MitigationGlobal Strategy for Energy Efficiency Market Formation to Mitigate Climate Change

Two on-going projects: A. Analysis of Advanced Technologies in Energy Efficiency and Renewable Energy in the

Framework of Global Energy Efficiency 21 Project and Preparations of Recommendations on its Application with Special Emphasis on Central Asian Region (supported by Russian Federation)

B. Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (funding from UN Development Account)

GEE21 Project

Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (2012-2014)• Implemented by five UN Regional Commissions (UNECE – lead agency)Objective• Capacity building for development of EE investment projects. It will assist UN RCs to

strengthen capacities of their member states to attract investments in EE projects in the context of climate change mitigation and sustainable development.

Expected accomplishmentsa) Improved capacity of national project developers, energy experts and middle-level

managers in developing countries and countries with economies in transition to develop energy efficiency investment projects in private and public sectors;

b) Improved regulatory and institutional framework for promotion of new financing mechanisms for energy efficiency projects;

c) Increased financing for investments in energy efficiency projects, including through innovative financing mechanisms.

GEE21 – UN Development Account Project

Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (2012-2014)

Main activities• Five regional trainings in project development, finance and business planning • Development of an investment project pipeline (inventory of energy efficiency project

proposals)• Five regional workshops to analyze investment project pipeline• Fifteen case studies on the experience of policy reforms• Five policy seminars focusing on policy reforms to promote financing of energy efficiency

investments• End-of-the-project global workshop to bring together officials from the regions along with

major domestic and foreign investors to encourage greater investment flows into the EE projects

National Case Studies of Policy Reforms to Promote Energy Efficiency Investments

• Experience in practical implementation of policy reforms• Thorough analysis of good practices and bottlenecks in the field

of EE project financing and implementation• Examples of direct social, environmental and financial benefits

coming from a specific project or series of projects, which were a result of specific policy reforms

• Potential for promoting successful policies more widely on a national basis

• Recommendations for adoption of a similar approach in neighbouring countries

Third International Forum: Energy for Sustainable Development

Fourth International Forum: Energy for Sustainable Development

• 17-19 September 2013, Tbilisi, Georgia• Co-organizers: Government of Georgia, UNECE,

ESCAP, and UNDP• High-Level Round Table• Financing energy efficiency and cleaner energy• Energy efficiency in buildings and in housing sector

Fourth International Forum - Workshops

Parallel Workshops• Workshop 1: Policies and Legislation to Promote Energy Efficiency

and Clean Energy Technologies in the Caucasus region• Workshop 2: Policy Reforms to Promote Financing Energy Efficiency

Investments• Workshop 3: Energy Efficiency in Buildings and Housing Sector • Workshop 4: Sustainable Energy Challenges and Opportunities in

Transition Countries

Thank you for your attention!

Oleg DzioubinskiEE21 Programme ManagerEconomic Affairs OfficerUNECE Sustainable Energy Division+41 22 917 2360oleg.dzioubinski@unece.org

http://www.unece.org/energyefficiency.html