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The Energy and Environment Partnership with the Mekong Region

The Energy and Environment Partnership with the Mekong Region. EEP Mekong. Information Seminars. 4 th Call for EEP Partnership Projects: What Would Make a Strong EEP Project. Laos date. The EEP approach / “model”.

jamalia-erickson
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The Energy and Environment Partnership with the Mekong Region

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  1. The Energy and Environment Partnership with the Mekong Region EEP Mekong Information Seminars

  2. 4th Call for EEP Partnership Projects:What Would Make a Strong EEP Project Laos date

  3. The EEP approach / “model” • The EEP approach, or “model”, works essentially by implementing projects, reinforcing a policy framework, supporting the knowledge base, and capacity for development of renewable energy. • But what is a “strong” project?

  4. Partnership Projects must contribute to EEP objectives: that is . . . . • Contribute to and stimulate development of Renewable Energy, Waste to Energy, and/or Energy Efficiency (energy savings). • Reduction of Greenhouse Gas (GHG) emissions. • Focus on rural poor if energy supply.

  5. But, EEP has a relatively small fund • EEP therefore target projects which can stimulate and unlock potential for further development (of RE, WTE, and/or EE). • EEP requires some kind of “multiplier effect” as a central part of the project outcome.(This is like “leverage” in finance where given investment resources are used in a way that entails additional investments.)

  6. For the EEP, the ”multiplier effect” means that • Each project should lead on to, or pave the way, for further investments in RE / EE made without grants and/or reduced investment costs.Could also be an “eye opener”. • There should be a clear and specific mechanism or process through which this should be achieved. • What barrier is approached.

  7. What is EEP Targeting

  8. What is EEP Targeting

  9. Thus: • Pilot / demonstration projects should lead to some specific development related to RE / EE. • Feasibility studies should lead to a specific initiative and support further similar initiatives. • Innovative technology/concept is important.

  10. Example1: • A micro-hydro or solar charging station provided through project grant to a rural community will increase use of RE and have benefits for poor rural household. • This should provide benefits from improved income opportunities, home environment, education, etc. • But, how will it lead to increased use of RE in the same area? and other areas? What is the mechanism? • If the same grant for investment is needed then the RE “multiplier” is low.

  11. Example 2: • Pilot of improved biogas digesters, self-organized construction teams, and a package for scaling up through commercial loans. • The pilot implementation has clear benefits for income and life quality improvements. • If this works and the organisation can be scaled up through commercial loans, then the “multiplier” effect will be high.

  12. Example 3: • Construct a biogas plant to treat polluted wastewater from a cassava starch factory, produce biogas, and use the biogas in the starch factory to replace coal. • This will reduce GHG, create employment and reduce local pollution. • This is a commercial viable investment and it can be replicated with commercial funds. EEP took some of the risk of this slightly new application  high “multiplier” effect.

  13. Investment costs for scaling up: • The ease of obtaining the investment costs for scaling up are very important to assess the “multiplier” effect. Donor funding should not be part of multiplier. • Commercial loans and private sector investment should be easier if efficiency and financial returns are high. • Spontaneous adoption (e.g. of low energy light bulbs) through private investment of beneficiaries would give very high multiplier effect but is difficult to achieve.

  14. ”Innovation”, ”technology”, etc • The multiplier effect generally means that something new or innovative is added and/or introduced. • This could be related to the RE and EE technology, it could be organisational, it could be financing. • Innovative technology often needs “technology transfer”. The Partnership aspect of EEP encourage technology transfer.

  15. Learning and dissemination • Learning, and documentation and dissemination of this learning, are also usually important for the “multiplier effect” to work. • This should be part of the project design.

  16. For the Project Concept / Proposal Form . . . • The spread or multiplier effect and the mechanism through which it will be achieved should be clearly explained. • The project design should ensure that this will be achieved. • This should generally be reflected in the overall objective. • Make it simple, clear, and specific.

  17. EEP Mekong THANK YOU! www.finland.or.th/en

  18. Zzzzz • Zzzz

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