Formerly
e8
A nnua l Ac t i v i t y R ep or t 2010 –2011
Reaching out to a Global Future
Global Sustainable E lectricit y PartnershiP
Mission Statement
Member Companies
The Global Sustainable
Our mission is to play
American Electric Power
Electricity Partnership —
an active role in global
United States
which comprises the
electricity issues within
top leading electricity
the international framework
companies from the
and to promote sustainable
global electricity sector —
energy development. This
Électricité de France
promotes sustainable
diverse international group
France
energy development
offers electricity sector skills
through electricity sector
and practical competencies
projects and human
in electricity generation,
capacity building activities
transmission and distribution.
ENEL S.p.A.
in developing nations
With international field-proven
Italy
worldwide.
expertise in the planning,
In June 2011, the e8 adopted its new name, Global Sustainable Electricity Partnership. The change reflects the opening of the organization’s membership to countries in transition and our commitment to a truly global mission of promoting sustainable energy development.
management, design, operation and maintenance of energy
Duke Energy United States
Eletrobras Brazil
Eskom South Africa
facilities, member companies
Hydro-Québec
assist and share their
Canada
know-how in the effective implementation of sustainable energy development with
JSC “RusHydro” Russia
counterparts in developing
Kansai Electric Power Company, Inc.
and emerging countries.
Japan RWE AG
The Global Sustainable
Germany
Electricity Partnership would like to welcome Eletrobras
State Grid Corporation of China
(Brazil), Eskom (South Africa)
China
and State Grid Corporation of
Tokyo Electric Power Company, Inc.
China (China) to the group.
Japan
Note: The name e 8 is used in the report to describe activities conducted in 2010-2011 before the adoption of the new name.
Content 1
Message From the Chair
2
Tokyo Summit
4
International Collaboration
5
COP16/MOP6: Cancun Climate Change Conference
6
Annual Theme
8
The Education for Sustainable Energy Development Programme
11
Argentina – Patagonia Chorriaca Wind-Diesel Hybrid and Cochico Micro-hydro Project
12
Maghreb Water and Electricity Project
13
Human Capacity Building Initiatives
14
Financing Sustainable Electrification Dialogues
16
Success factors
17
Activities Worldwide
Message from t he Ch a ir It is a great honour for me to act as the e8 Chair for 2010-2011. This has been an exciting year for us. We have been working hard to increase our membership, reaching out to our counterparts in other countries in order to learn more from other organisations. As a result, our membership has expanded by 40%, a progress we are particularly proud of: Eletrobras (Brazil), Eskom (South Africa) and State Grid Corporation of China have joined us as full members, and Comisión Federal de Electricidad (Mexico) has joined as partner. The e8 has now become the Global Sustainable Electricity Partnership. Our new name and logo, which we unveil with this report, reaffirm our mission to promote sustainable energy development on a truly global scale.
Strengthening PublicPrivate Partnerships to Accelerate Global Electricity Technology Deployment
Strengthening Public-Private Partnerships to Accelerate Global Electricity Technology Deployment was our annual theme for 20102011. Our successes as the world’s largest power providers are increasingly related to our ability to meet environmental responsibilities with innovative technologies, financing and public policies, as well as synergies with public, private and civil society members. The Global Sustainable Electricity Partnership is uniquely positioned to demonstrate how clean technologies can be deployed to provide affordable, reliable electricity to those who don’t enjoy the benefits of this form of energy and, at the same time, reduce risks from climate change. Our projects—those that are already successfully implemented and the one we just launched in the Argentina highlands—are a testament to this. Moreover, our Financing Sustainable Electrification Dialogues Programme with finance and energy ministers from 55 countries (by year end) has helped them elaborate action plans to make them more attractive to technology vendors, project developers and banks by reducing their investment risks. In line with this year’s theme, we and UN-Energy conducted a global survey to identify the elements common to successful public-private partnerships and developed a report outlining the best practices. We believe that countries that establish technology deployment plans with enabling public policies, in an attractive financial risk-reward atmosphere created by these partnerships, are likely to achieve the Millennium Development Goal of eradicating extreme poverty by making significant progress towards universal access to energy sources. We co-convened a globally webcasted meeting with UN-Energy at the United Nations Headquarters in New York City where many practitioners and country ambassadors planned how to implement these recommendations.
Mr. Michael G. Morris Chair 2010-2011 Chairman and CEO, American Electric Power Company (AEP)
Through our actions, projects and activities, we are proud to take a leading role in defining a new approach for electrifying this world and we look forward to working together with other partners to promote sustainable energy development.
Mr. Michael G. Morris Chair 2010-2011 Chairman and CEO, American Electric Power Company (AEP)
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Tok yo Summi t
Electricity leaders sharing views on global energy issues Our Annual Summit is a unique platform for the international electricity industry, allowing for a yearly high-level meeting and discussions among heads of the major leading electricity companies in the global electricity sector and their guests. The Chairmen and CEOs of these international power utility leaders gather to exchange opinions and advance the debate on such key issues as the role of the electricity sector in the fight against climate change, technology cooperation, security of supply and sustainable development.
The 2010 Annual Summit took place in Tokyo, Japan, on May 26, 2010. Joined by the leaders of the major electricity companies in emerging economies, SGCC (China) and CFE (Mexico), our Chairmen and their guests exchanged views on the Smart Use of Electricity, the 2009-2010 year’s theme, and on the future of an international agreement on climate change. The discussions were moderated by two distinguished experts in the international energy field, namely Dr. Hiroshi Komiyama, Chairman of the Mitsubishi Research Institute, Inc. and President Emeritus of the University of Tokyo, and Mr. Björn Stigson, President of the World Business Council for Sustainable Development (WBCSD). In order to move forward the debate on the role of the electricity sector in climate change mitigation, the Chairmen issued the Tokyo Summit Declaration, offering a list of recommendations to maximize the benefits of the Smart Use of Electricity. The Chairmen also reaffirmed the fundamental role of electricity in building a greener and more sustainable low-carbon society and reiterated their commitment to closely cooperate with public and private partners for the development and deployment of innovative solutions to reduce society’s carbon footprint. With a vision to further enhance global cooperation, the Chairmen and their guests also signed a Statement of Collaboration. With a view to reaching out to major emerging countries, the Chairmen welcomed Eletrobras (Brazil), as a new member, and CFE (Mexico), as a partner. All these leaders of major companies engaged in the generation, transmission and supply of electricity across the globe affirmed their dedication to serve communities through the development and deployment of advanced low- and non-emitting technologies to all countries.
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Chairmen, representatives, and guests at the 2010 Tokyo Summit, Tokyo, Japan, May 26, 2010. Top row from left to right: Juergen Grossman (RWE – Germany), Liu Zhenya (SGCC – China), Björn Stigson (WBCSD), Marie-José Nadeau for Thierry Vandal (Hydro-Québec – Canada), Francisco Santoyo Vargas for Alfredo Elias Ayub (CFE – Mexico), José Antonio Muniz Lopes (Eletrobras – Brazil), Shosuke Mori (Kansai – Japan). Bottom row from left to right: Piero Gnudi (Enel – Italy), Tsunehisa Katsumata (TEPCO – Japan), Michael Morris (AEP – USA), Bruno Lescoeur for Henri Proglio (EDF – France), Keith Trent for James E. Rogers (Duke Energy – USA).
The Chairmen recommend the following initiatives to maximize the benefits of the Smart Use of Electricity: 1. Create the conditions to favour a shift towards a low-carbon electricity generation mix, taking into account region-specific factors, including existing power plants, economic viability, availability of energy resources and environmental impacts; 2. Support the development of existing and new lower-carbon generation technologies such as advanced coal, new generation nuclear plants and all renewables, including large hydro and carbon capture and storage (CCS) technologies. Substantial investments in mid- and long-term emission efficient technologies are needed to decarbonise electricity; 3. Provide incentives for a shift towards electricity in final energy uses in all sectors of society wherever it is more efficient and environmentally friendly, including the transportation, industrial and residential sectors; 4. Recognize the enormous emissions mitigation potential of technologies such as electric vehicles (EV), smart grids and heat pumps: a. Support the development of international standards for electric vehicles offered by manufacturers, and share region-specific information about clients’ needs, public acceptance issues, technological developments, data privacy issues and business models for EV charging infrastructures. Also, policies that will accelerate the number of electric vehicles, including subsidies for the purchase of such vehicles, should be encouraged; b. Support the development of the smart grid concept and its deployment as a more reliable, flexible, optimal, customer-centred, economical and environmentally responsible electric power transmission and distribution system; c. Implement heat pumps in various fields to mitigate CO2 emissions and improve environmental conditions in general; 5. Inform clients about their electricity usage and ways to improve efficiency to promote their acceptance of energy efficiency programs; 6. Encourage governments to create policies and adopt measures aimed at supporting the smart use of electricity, including appropriate time frames to implement promising technologies at different stages of deployment, efficient pricing that stimulates investment in energy efficiency and long lead time of efficient technologies, promotion of public acceptance of CO2 mitigation technologies and public-private partnerships in research, development & deployment.
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In t er n at ion a l Col l a borat ion
Photo courtesy of IEC.
Collaborating with international organisations on technology As a unified voice of the international electricity sector, we regularly collaborate with key international organisations on issues such as the development and deployment of low-carbon technologies. During 2010-2011, our collaboration with the International Energy Association (IEA) and the International Electrotechnical Commission (IEC) progressed on some of the most promising technologies for climate change: electric vehicles and smart grids. Through these collaborations, we reaffirm the fundamental role of technology in the fight against climate change and stress our commitment to the development and deployment of advanced low- and nonemitting technologies to all countries.
In t er n at ion al En ergy Agenc y (IEA) The IEA expressed strong interest in collaborating with our organisation on technology-oriented analyses and studies to which we could significantly contribute as representatives of the international electricity sector. With the vision to help the IEA complete its technology roadmaps, as mandated by the G8, we shared the outcomes of our Technology Innovation Groups on Electric Vehicles (EVTIG) and Smart Grids (SGTIG). These groups were developed to facilitate exchanges between members on technology innovation and the challenges of its implementation. A representative from the SGTIG currently participates in the IEA’s Smart Grid Advisory Group with regard to their 2011 technology roadmap. Our representatives to the SGTIG have also taken part in several IEA Smart
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Grid Workshops covering issues from research and development, demonstration and customer policy in developed and developing countries. Exchanges between IEA experts and the EVTIG have focused on business models and the evolution of light-duty EVs.
I n t e r n at i o n a l E l e c t r o t e c h n ic a l Commission (IEC) A strategic partnership was formed with the IEC to share views and accelerate the development of common international standards for EV systems, especially for charging infrastructures. The partnership was officially launched at the IEC- e 8 Strategic Roundtable on Electric Vehicles in January 2011. This was the first meeting of its kind, bringing together highlevel representatives from the world’s leading utilities, automotive manufacturers and electric equipment manufacturers to discuss needs and set priorities for the international standardization efforts. The roundtable contributed to updating all the participants on the different standardization issues. At this point all participants agreed to use international standards and confirmed that the IEC’s current standards, as well as those being developed, meet their initial needs. No consensus on a single solution was reached but discussions will pursue. The participants did make the following resolutions: • Recognize that initially, multiple solutions will be available in the market; • Actively develop a long-term strategy for unique solutions on infrastructure optimization and energy conservation; • Support market needs to facilitate EV mass integration in the early stages; • Encourage the exchange of experiences and the sharing of visions as to where the market is going.
From the left: Frank Kitzantides (IEC), Chantal Guimont (Hydro-Québec), Stephan Voit (RWE Effizienz), Celso Ribeiro Barbosa de Novais (Itaipu Binacional, Eletrobras).
COP16/MOP6: Ca ncun Climat e Ch a nge Conf er ence
The United Nations Conference on Climate Change
Left Photo: Luis Calzado, Project Advisor at e 8 booth in COP16. Right Photo: Electric Vehicle banner.
Our organisation has been participating in the United Nations Framework Convention on Climate Change (UNFCCC) annual Conference of the Parties (COP) as an admitted observer and non-governmental organisation representing the international electricity sector, since the third session of the Conference of the Parties held in Kyoto in 1997.
In December 2010, we took part in the United Nations Climate Change Conference (COP16/MOP6) in Cancun, Mexico, under the e8 banner. Based on past experiences and in view of rising challenges, the members issued the following recommendations for successful climate negotiations, prior to the meeting in Cancun: 1. The negotiations should aim at reaching an agreement with a global reach. 2. It should include reasonable and achievable commitments. 3. Its focus must be on economically efficient while environmentally effective solutions to climate change. 4. Involvement of the private sector is key, as private investors can create value by reducing emissions. 5. And it should incorporate financing mechanisms to assist developing countries in the implementation of appropriate policies focused on both mitigation and adaptation.
During the week of high-level negotiations at the COP in Cancun, a booth was set up, serving as a key means of materializing the presence of our organisation at the COP and showcasing the numerous projects and initiatives implemented over the past years. The booth also allowed for informal exchanges with attending partners, relevant parties and organisations, as well as for the exploration of potential collaboration opportunities. On average, 20 participants per day visited the booth, including delegation parties, NGO representatives, media and activity beneficiaries. At the booth, special emphasis was put on our members’ support for electric vehicles (EVs) and their role in climate change mitigation. Our organisation’s common position and key messages were well received by attendees. COP16 proved to be a great platform to show that the leading world utilities are: • Convinced that the arrival of electric and plugin hybrid electric vehicles (EVs and PHEVs) will provide a common and significant solution to reducing GHG emissions; • Committed to working together with governments and the auto industry, as well as national and international associations, towards implementing successful conditions for the arrival of EVs, such as adequate charging infrastructures; • Engaged in delivering greener electricity to facilitate the integration of EVs. Our organisation is an essential partner in worldwide mobility electrification and we are willing to cooperate with all key actors to ensure the EV’s successful development and deployment.
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A nnua l T heme
Global Initiative for Strengthening Public-Private Partnerships While working with our partners in capital/
T h e i n i t i at i v e
technology deployment projects and human
Under the e8 banner, we conducted a global survey of the private sector and non-governmental organisations in order to collect and analyze information on effective public-private partnerships with a view to identifying the elements of success. UN-Energy launched a parallel survey of government officials from all countries, as well as members of the United Nations family working in the electricity sector.
capacity building workshops, we have recognized the urgent need for optimizing collaboration in a global, coordinated and integrated manner in order to address universal access to energy services. We have been working with the United Nations, developing countries’ governments and local utility company partners since the 1990s on a not-for-profit basis. By sharing our experience in engineering, environmental protection, financing and public policy development with over 40 countries in all regions of the world, we understand the importance of strong partnerships.
Together with the UN-Energy, we launched a global initiative for Strengthening Public-Private Partnerships to advance sustainable energy development, adopting it as our annual theme for 2010-2011. The focus of this joint initiative was to identify effective and meaningful partnerships that support and promote the global deployment of low- and zero-emitting electricity technologies at regional, national and global levels. The initiative is consistent with the recommendations of the United Nations Secretary-General’s Advisory Group on Energy and Climate Change (AGECC) which identified universal access to modern energy services and energy efficiency as key avenues for enhanced international cooperation to achieve the Millennium Development Goals and eliminate extreme poverty by 2030.
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The survey results were analyzed and a report on best practices and partnership support guidelines was developed while consulting with major stakeholders. The final report was presented at a Global Summit meeting organized jointly with UN-Energy on June 2, 2011. Top leaders in the public and private sectors and countries’ high-level officials attending the meeting discussed the best practices and the successful integration of public-private partnerships in the implementation of electricity projects. Together with UN-Energy, we committed to support, with the assistance of our partners and the leverage of the private sector, countries in their implementation of the best practices outlined in the report. We believe that countries that establish technology deployment plans with enabling public policies, in an attractive financial risk-reward atmosphere created by these partnerships, are likely to achieve the Millennium Development Goal of reducing extreme poverty through increased access to energy.
The Ifugao-Ambangal Mini-hydro Project, Inauguration ceremony at project site, Ifugao, Philippines, January 25, 2010.
Left Photo: The Tuvalu Solar Power Project inauguration ceremony, February 21, 2008. Right Photo: The Argentina – Patagonia Chorriaca Wind-Diesel Hybrid and Cochico Microhydro Project team at an on site wind mast, February 2011.
S u m m a r y o f r e c o m m e n dat i o n s 1. Public-Private Partnership Strategy: Establish a formal national energy development plan with a strong legislative framework, and a clearly defined public-private partnership strategy. This will enable reconciling security of supply, climate change and economic growth. Sustainable electricity policies will foster economic and social development and mitigate the financial risk for its investors. Establishment of these policy elements will remove barriers, stimulate investment, establish stable legal and regulatory frameworks, and provide incentives and financing to bring clean electricity to unserved and underserved populations. 2. Cost Recovery Policies: Provide assured cost recovery and profit potential for investors by creating national energy plans backed by legislation and regulation that establish a commitment to the promotion of low carbon technologies. 3. RD&D Funding: Provide stable, sufficient funding for research, development, demonstration and deployment (RD&D) of a wide range of emerging clean electricity technologies. RD&D is very expensive. Public-private partnerships will have to change the manner of how RD&D is financed in order to lead the way to decarbonisation of the electricity supply. 4. Benefits of Electrification: Maximize benefits brought to communities from new and expanded electrification. These public-private partnerships will raise the standard of living for recipients and support communities in their economical and social development through improved access to electricity.
5. Access to Capital: Optimize the private sector’s ability to bring many financing alternatives for electricity projects and to design, construct, operate and maintain them. Over 95 percent of respondents agreed that the private sector’s most effective contribution to a public-private partnership was in the provision of capital. 6. Goal Development: Set electricity development goals and timetables for long-term technology deployment program under national energy plans. One of the key strengths of the public sector is the ability to develop long term, low risk policies that can entice financial contributors and project developers to invest in a project. 7. Effective Partnerships: Sustain strong partnerships with effective communication, well defined roles and responsibilities, and continuous commitment. 8. Secure Income: Use power purchase agreements (PPAs) with the private sector for greatest certainty regarding long-term investments. Over three quarters of respondents stated that the use of PPA is extremely to very effective in securing financing to deploy low carbon technologies. The responses of those surveyed from financial institutions reinforced the importance of mitigating financial risk through long-term, secure income streams. 9. Implementation: Implement these recommendations by increasing the alignment of public, private and civil society sector practitioner efforts with willing countries. A copy of the full report is available online or upon request.
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T he Educ at ion f or Sus ta in a bl e Energy De v elopmen t Pro gramme
Supporting future academics and practitioners of sustainable energy development from developing and emerging countries worldwide The Education for Sustainable Energy Development Scholarship Programme (ESED) was established in 2001 to support scholars from developing countries and economies in transition in their pursuit of advanced studies related to sustainable energy development (SED). In addition to offering a Masters level scholarship, ESED also supports a web-based network of scholars put in place with the objective of encouraging the sharing of information and knowledge among scholars and alumni.
Since the Programme’s inception, we have awarded eight postdoctoral and 60 Masters level scholarships to outstanding students from more than 25 countries. The popularity of the ESED Programme has expanded over the years and is reflected in a ten-fold increase in the number of applications received since its first year. Scholarship applications are reviewed by a panel of distinguished professors and experts from universities in North America, Europe and Japan.
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Support of field studies a n d i n t e g r at i o n o f s c h o l a r s in projec ts In line with the UN Agenda 21’s goal of creating a global partnership for sustainable development, the scholarship programme was expanded in December 2008 to include support of selected scholars’ field work studies in their home country or region. On-the-ground experience opportunities have been afforded to some of the scholars who have benefited from this financial support, allowing them to gain practical experience in their field of study. Beneficiaries of the ESED Scholarship Programme come from all regions of the world and pursue academic curricula in different aspects of the multidisciplinary field of sustainable energy development, with a particular focus on technology, environment and social development. The scholars’ host universities are prestigious academic institutions with strong SED curricula and research programs.
S e l e c t e d C a n d i dat e s f o r t h e 2011 ESED Sc h o l a r s h i p A wa r d s
ESED S e l e c t e d R e ci p i e n t s (2001–2011) By region of origin
Masters level • Ms. Elsa Valencia Martinez, from Mexico, will pursue a Master of Sustainable Energy Technology at TU Delft in the Netherlands. • Mr. Mattewos Tefferi, from Ethiopia, will pursue a Master of Science in Sustainable Energy Technology at the University of Twente, in The Netherlands. • Mr. Misghina Zerai Habtemariam, from Eritrea, will pursue Masters of Science in Sustainable Energy Technology at the University of Twente in The Netherlands.
Africa – 23 (34%)
China – 7 (10%) India – 6 (9%)
• Ms. Laksita Gayuhaningtyas, from Indonesia, will pursue a Master in Sustainable Energy Technology at Technische Universiteit Eindhoven in the Netherlands. • Ms. Tamuno Nengiye – Ofori Lawson, will pursue a Masters Biotechnology at Bangor University in the United Kingdom.
L atin America – 14 (21%) Eastern Europe – 1 (1%)
By field of study Technology – 39 (58%)
• Ms. Ying Tu, from China will pursue a Master of Science in Sustainable Energy Technology at the University of Twente in the Netherlands. • Mr. Md. Asaduzzaman Shoeb, from Bangladesh, will pursue his Masters in the Program of Environmental Pathways for Sustainable Energy Systems at the Royal Institute of Technology in Sweden.
Asia – 17 (25%)
Management – 3 (4%) Public policy – 3 (4%) Development – 2 (3%) Law – 2 (3%)
Science – 9 (13%)
Environment – 10 (15%)
By host university country Multi-country – 3 (4%) Netherlands – 13 (19%)
Sweden – 3 (4%) Denmark – 2 (3%) Brazil – 2 (3%) UK – 16 (24%)
USA – 11 (16%) Australia – 3 (5%) C anada – 5 (8%) hailand – 1 (1%) T Germany – 7 (11%) witzerland – 1 (1%) S Japan – 1 (1%)
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Implementing projects and human capacity building initiatives worldwide
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Argentina – Patagonia Chorriaca Wind-Diesel Hybrid and Cochico Micro-hydro Project
micro-hydro power
Wind and
T echnology:
Key Objec tives:
• Reduce CO2 emissions by reducing diesel use and inefficiencies • Promotion of local renewable energy sources • Provide power 24 hours, 7 days a week, to end-use customers Lo c at io n:
Neuquén Province, Argentina
Cochico and Chorriaca are small communities in the province of Neuquén in the Patagonian region of Argentina. Both isolated from the national grid, they rely on diesel units that operate on a discontinuous basis for their electricity. This project aims to provide these communities with access to a sustainable electric service 24 hours a day, 7 days a week, using local renewable energy sources. The project features the design and installation of a micro-hydro facility in Cochico and a wind-diesel plant in Chorriaca, each of approximately 90kW. In line with national and provincial interests to develop renewable generation in general, and wind energy in particular, this project will not only contribute to the communities’ social and economic development, it will also displace a portion of the diesel currently used, thereby reducing CO2 emissions and leading to fossil fuel savings. Furthermore, this project will demonstrate the replicability of the business model for the development of locally available renewable energy in other isolated communities in Argentina. The transfer of technical know-how and experience will also help build human capacity for the development, operation and maintenance of the selected systems in these communities. Such experience could be repeated in a number of similar towns within the province of Neuquén and others in Argentina that are isolated from the main grid.
T h e A r g e n t i n a – Patag o n i a C h o r r i ac a Wi n d - Di e s e l H y b r i d a n d C o c h ic o Mic r o - h y d r o P r o j e c t w i l l : • Promote the use of renewable energy; • Reduce CO2 emissions by reducing fuel consumption and inefficiencies; • Transfer technological know-how of wind-diesel hybrid systems to counterparties; • Provide a pilot experience for the development of local renewable energy for isolated communities;
Chorriaca wind-diesel project site.
• Encourage other power companies to supply sustainable, renewable energy to other communities; • Promote the importance of developing sustainable, renewable energy as a way to fight climate change and support the social and economic development of otherwise isolated communities.
Coyuco creek, site for Cochico micro-hydro project.
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Maghreb Water and Electricity Project
• Water desalination • Promotion of local renewable energy sources osmosis system
Wind power, reverse
T echnology:
Key Objec tives:
Lo c at io n:
Kebili, Tunisia
In collaboration with key local partners in the Maghreb region, we are developing a project with the aim of demonstrating the feasibility of powering fresh water production units based on locally available renewable energy sources. Addressing the critical issue of fresh water shortage in the region, the project targets isolated rural areas with limited access to grid electricity and fresh water services. Under the e8 banner, an expert team conducted a comprehensive survey of potential sites in several North African countries in order to assess local needs and identify the most suitable rural areas for implementation. Kebili, a desert province located in central-south Tunisia presenting all the characteristics necessary to the project’s development, was selected for the implementation of the first pilot plant. The proposed site was accepted by the local partners, ANME and SONEDE, with the signature of a Letter of Intent (LOI) in November 2009. The project will consist of a reverse osmosis system (ROS) desalination plant, powered by a 850 kW wind turbine generator and coupled with power back-up and water storage systems. This plant will meet up to 10% of the village’s daily fresh water demand (600 m³/day) and help avoid 1,000 to 1,800 tons of CO2 emissions per year. In 2010, a wind measurement mast was installed to finish compiling the wind data needed to complete the feasibility study and a steering and technical committee was created to follow the development of the project. Once completed, the Maghreb Water and Electricity Project will answer drinking water needs and improve health conditions in the village through access to a clean water source. Most importantly, this project will provide a replicable model for renewable energy-based fresh water production in drought-stricken regions and offer an opportunity to enhance local players’ know-how and capacity to design, operate and maintain wind-based power supply units integrated with ROS systems.
Project site, Kebili, Tunisia.
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Wind measurement tower, project site, Kebili, Tunisia.
Huma n Ca paci t y Buil ding Ini t i at i v es
Grid-Connected PV workshop in the Republic of Palau, November 2010.
Sharing sustainable energy development know-how with developing countries worldwide In line with our core mission to promote sustainable energy development (SED) worldwide and share our members’ expertise with counterparts in developing countries, we have implemented over 40 human capacity building (HCB) initiatives in key SED fields. Interactive workshops, seminars and technical training sessions continue to be developed in partnership with UN agencies and key local
on training in the design, procurement, construction, operation and maintenance of grid-connected PV systems to 20 participants from ten different utilities. The second workshop, targeting Southern Pacific Islands’ utilities, was given in Nadi, Fiji, from November 22-26, 2010. A total of 19 participants from 10 member utilities, from the Cook Islands, Nauru, Fiji, Kiribati, Niue, Papua New Guinea, Samoa, Solomon, Tonga and Tuvalu, followed the same training as their counterparts from the Northern Pacific Islands.
and regional partners in the fields of energy efficiency, rural electrification, renewable energy systems, institutional strengthening and project management, all within the overall framework of sustainable energy development.
G r i d - c o n n e c t e d PV W o r k s h o p S e r i e s w i t h PPA A series of technical workshops targeting engineers from the Pacific Power Association (PPA) member utilities have been developed in partnership with the PPA. The Grid-connected PV Workshops are the latest series under this initiative. These workshops have been particularly well received in the region, as many countries are in the process of implementing programs based on the installation of photovoltaic systems subsidized by various international organisations. The first Grid-connected PV Workshop took place in Palau, from November 1-5, 2010, and targeted electricity utilities from the Northern Pacific Islands. This one-week workshop gave technical and hands-
S e m i n a r s o n E l e c t r ici t y Interconnec tion Established in partnership with the United Nations Department of Economic and Social Affairs (UNDESA), the Seminars on Electricity Interconnection focus on the necessary harmonization of power systems’ organisation, planning and operation on a regional basis, with a view to reaping the full benefits of optimal resource development within the region. The seminars provide a comprehensive overview of the most important issues and features with regard to interconnecting power systems, as well as hints on best practices and ways of minimizing risks. Following two seminars (Cairo, Egypt, in June 2005, and Addis Ababa, Ethiopia, in September 2008), a third seminar is being planned for 2011. A training session for the Central African Power Pool (CAPP), the workshop is being developed to address the operation of interconnected power systems and regional power market trading.
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Financing Sustainable Electrification Dialogues Transfer of institutional expertise and businessoriented know-how for the financing of sustainable electrification projects and the deployment of low-emitting power technologies in developing and emerging countries.
Developing and particularly threshold countries face the task of finding adequate investment to meet their growing power demand while at the same time cutting down emissions. Investments in advanced, low-CO2 emitting generation and delivery technologies are needed; yet, available funds from multilateral banks and international organisations are not sufficient. In this context, our organisation, along with the Global Environment Facility (GEF) and the United Nations Department of Economic and Social Affairs (UNDESA), initiated a joint human capacity building programme aimed at sharing with counterparts in developing and emerging countries unique perspectives, experiences and practical business know-how to attract financing for the deployment of low-carbon, advanced power technologies.
The programme consists of a series of eight regionspecific workshops over a period of four years. Launched in September 2009, the programme provides a unique platform in the global efforts to facilitate capital flows for clean technologies. Through interactive dialogues, the investment community, power sector counterparts and high-level government representatives from the targeted countries discuss the current risks for power sector investors, as well as the opportunities to enhance the capacity to attract advanced power technology financial flows through the development of appropriate policy strategies and action plans. Since the inception of the programme, workshops have taken place in Bangkok, Nairobi, Montreal and Geneva. Most of the country representatives attending the workshops have drafted and presented an action plan, all available on our organisation’s website. As part of our commitment to the initiative, the Global Sustainable Electrification Forum was launched during the Nairobi workshop in April 2010. Accessible to all regional workshop participants, this web-based forum, also available on our website, aims to foster continuing dialogues and exchanges between participants, the private sector and organizers. By the end of 2011, a total of 55 countries will have participated in these workshops. We remain committed to continue our support for this initiative in view of building a global private-public sector network that will actively support the ongoing efforts of its members to finance technology deployment.
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Left photo: Financing Sustainable Rural Electrification workshop in Nairobi, Kenya, April 13-15, 2010. Right photo: Financing Sustainable Electrification workshop in Bangkok, Thailand, September 8-9, 2010
South and South-East Asia Di a l o g u e s – B a n g ko k Date September 8-10, 2009 Location UNESCAP Conference Centre, Bangkok
Ob j e c t i v e s: • To share business-oriented know-how and sector-specific expertise; • To contribute to enhancing countries’
Participants 29, from eight countries (Bangladesh, Bhutan, Indonesia, Pakistan, Philippines, Sri Lanka, Vietnam, Thailand)
capacity to attract capital for the
Partners UNDESA, GEF, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
technologies and projects.
Di s c u s s i o n t o p ic s i n c l u d e :
Focus
• Current policies, and institutional and
Financing of low-carbon technologies
development and deployment of power generation and transmission
financial obstacles to local and foreign
A f r ic a Di a l o g u e s – N a i r o bi
investments in electrification projects
Date
in the region;
April 13-15, 2010
Location UNON Conference Centre, Nairobi Participants 43, from 12 countries (Botswana, Ethiopia, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Tanzania, Uganda, Zambia, Zimbabwe) Partners UNDESA, GEF Focus
Financing rural electrification, focusing on the use of renewable energy
strategies to attract power project investments.
E x p e c t e d O u t c o m e s: • Participating countries to discuss general guidelines and factors for the development and implementation of
Centr al and Eastern Europe a n d C e n t r a l A s i a Di a l o g u e s – G e n e va
an action plan that addresses strategies
Date September 14 and November 22-24, 2010
attract financing for electrification.
Location
Montreal, Canada, and Geneva, Switzerland
Participants 60 in Montreal, 64 in Geneva from 21 countries (Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, FYR Macedonia, Hungary, Kyrgyzstan, Kazakhstan, Latvia, Poland, Romania, Russian Federation, Serbia, Slovakia, Tajikistan, Turkey, Ukraine) Partners United Nations Economic Commission for Europe (UNECE), European Bank for Reconstruction and Development (EBRD), World Energy Council (WEC) Focus
Fostering investment in electricity generation
L at i n A m e r ic a n Di a l o g u e s – S a n t i ag o d e C h i l e
and specific policy options needed to
C o u n t r y Pa r t ici pa n t s: • High-level representatives from the Finance and Energy ministries; • High-level representatives from the national financial and energy regulatory agencies; • Executive representatives from national lower utilities; • Local private sector representatives with existing or potential investment capacity in the local power sector.
N at i o n a l ac t i o n p l a n s ’ o b j e c t i v e s: • 68% of countries mainly focus
Date August 22-24, 2011
on creating/improving regulatory
Location ECLAC Conference Centre, Santiago
framework and creating/improving
Participants 40, from 14 countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Mexico, Panama, Costa Rica, El Salvador, Dominican Republic)
energy policies;
Partners UNDESA, Economic Commission for Latin America and the Caribbean (ECLAC) Focus
• Business opportunities and key policy
Financing of low-carbon technologies
• 52% of countries address financing issues; • 44% of countries address change of mix, from fuel to more renewables; • 40% of countries address improvements to infrastructures.
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Left photo: The Tuvalu Solar Power Project inauguration ceremony, February 21, 2008.
Success factors When developing capital projects and human capacity building initiatives, we determine expected outcomes and deliverables with which we measure a project’s success. These can be defined by specific project goals, namely: Seeking sustainability: • Long-term commitment of the stakeholders; • Proper balance of funding sources; • Business model with long-term scenario, taking into account existing and projected economic conditions, government policies and regulations, and project outcomes which can translate into direct or indirect financial incentives; • Mentor counterparts in the development of business models and operations and maintenance (O&M) practices, with continuous involvement of the beneficiaries. The Galapagos Wind Project: With the support and contribution of central and local government authorities, we were able to define very creative and attractive project financing conditions, to both fund capital expenditures and ensure long-term viability. In addition to our contribution, the financial model included: • Special renewable energy (wind) tariffs; • Offset contribution from fuel cost savings; • Pledging of taxpayers money for renewable energy projects; • Tax exemptions on renewable energy revenues; • Certified Emission Reductions (CER) credits. Assessing environmental and social impacts: • Implementing an environmental management plan; • Addressing concerns and developing mitigation measures in collaboration with local players to ensure a successful infrastructure integration during the project’s construction and its long-term operation.
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The Ifugao-Ambangal Mini-Hydro Project: The environmental impact assessment we conducted underlined the need to maintain the primary use of the water stream to irrigate the rice terraces which are the livelihood of the Ifugao people. The run-of-the-river power generating facility was designed to operate only with a portion of the flow, always leaving the minimum required for irrigation purposes. Developing empowerment and ownership: • Offer human capacity building and training programs to local beneficiaries for the design, operation, management and maintenance of the proposed power technologies. The Tuvalu Grid-connected Solar Power Project and the PPA Grid-connected Solar PV Design, Operation and Maintenance Workshop: These two projects conducted in the Asian Pacific region provide practical examples of solar PV technology deployment and potential replication, allowing many utilities to acquire the technical expertise needed to develop their own projects in a sustainable way. Sharing the lessons learned: • Each and every project or activity we conduct features a “return of experience” exercise that can help improve the next project or activity, whether the experience is positive or negative. These lessons are shared with the project’s participants and partners. Strengthening Public-Private Partnerships to Accelerate Global Electricity Technology Deployment (the 2010-2011 annual theme): We conducted a worldwide survey on lessons learned in the development and implementation of partnerships for the deployment of advanced power technologies. The survey outcomes were compiled and analyzed to identify the most effective best practices, and its results were shared with the international community at the June 2, 2011, Global Summit.
Middle photo: Newly trained operators for the Ifugao-Ambangal Mini-hydro Project. Right photo: Wind turbine installation at the Galapagos Wind Project site.
1992–2011 Ac t i v i t ies Wor ldw ide
Region
Country
Africa & Middle East
Egypt
Jordan
Asia
Description Institutional strengthening of the power sector Seminar on electricity interconnection with UNDESA Demand-side management plan Efficiency improvements in thermal power plant (AIJ) Environmental management programme
Lebanon
Thermal power plant efficiency
Maghreb
Wind power to purify water supplies (ongoing)
South Africa
Demand-side management Renewable mini-grid assessment
Southern Africa
Environmental management Environmental strategy
West Africa
Solar energy supply systems in the W Park
Bangladesh
Assistance to transmission and distribution companies
Bhutan
Management strengthening Micro-hydro plant (CDM)
China
Clean coal technology seminar Demand-side management Environmental assessment of thermal power station
India
Technical assistance for environmental management
Indonesia
Renewable energy supply systems (AIJ) Monitoring of renewable energy systems Technical assistance for operations and maintenance of renewable energy systems
Region
Country
Eastern Europe
Bulgaria
Energy efficiency in public buildings
Georgia
Inspection of the Inguri Dam Seminar on regulation, institutional relations and tariffs
Chile
Master plan for the Chiloe Archipelago
Ecuador
Workshop on the Clean Development Mechanism Substitution of diesel by wind power in the Galapagos Solar PV generation and rational use of energy Micro-Solar Distance Learning Programme
Mexico
Environmental assessment of transmission line projects
Argentina
Micro hydroelectric facility and a wind-diesel plant for isolated communities in Patagonia desert.
Pacific Island Countries
Renewable energy capacity development Demand Side Management workshops with PPA
Fiji and Marshall Islands
Photovoltaic (solar) System workshops with PPA
Tuvalu
Grid-connected solar power installations
Multi-country
Environmental impact assessment workshops Improving environmental performance and increasing plant efficiency Electricity interconnection Workshop on rural electrification Promotion of small hydropower plants in rural areas
Latin America
Oceania
Multi-region
Description
Mongolia
Thermal power plant rehabilitation
International Network on Small Hydro Power
Philippines
Mini-hydro plant to protect a World Heritage Site
Multi-country, based in Thailand
Regional Financing Electrification Dialogues workshop
Tajikistan
Emergency assistance
Thailand
Multi-country, based in Kenya
Strengthening environment institutions Strengthening environment agencies
Regional Financing Electrification Dialogues workshop
Multi-country, based in Switzerland for Eastern Europe
Regional Financing Electrification Dialogues workshop
Multi-country, based based in Chile
Regional Financing Electrification Dialogues workshop
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Fo r mo r e i n f o r m a t io n : Global Sustainable Electricity Partnership General Secretariat 505 de Maisonneuve blvd. W, Lobby Montreal QC  H3A 3C2 CANADA Tel.: +1-514-392-8876 Fax: +1-514-392-8900 generalsecretariat@hydro.qc.ca
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