e-Parliament Energy Hearing

1. REEEP's Policy and Regulation ActivitiesOl Tukai Lodge, November 2006Marianne Moscoso-OsterkornREEEP International Director e-Parliament Energy Hearing

2. REEEP - the Renewable Energy and Energy Efficiency Partnership • 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

3. 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

4. REEEP is Driven by Regional and Local Demand REEEP Regional Office Russia REEEP International Secretariat REEEP Regional Office North America REEEP Regional Office Central Europe REEEP Regional Office Latin America & Caribbean REEEP Regional Office East Asia REEEP Local Focal Point MEDREP REEEP Regional OfficeSouth Asia REEEP Regional OfficeSouth East Asia & Pacific REEEP Regional Office Africa

5. The 100 REEEP Projects encourage local initiatives

6. REEEP delivers tangible solutions in collaboration with partners

7. The Gleneagles Plan of Action Recognises REEEP as a Partnership supporting EE in Buildings and Renewables REEEP's current project portfolio:

8. 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

9. 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

10. 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

11. REEEP Blueprints for EE Policy • Support Policy Implementation • Ghana: Implementation of labeling and standards • Mexico: Regulation methodologies • China: Policy recommendations for low energybuilding 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

12. 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

13. 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

14. REEEP International SecretariatVienna International CenterRoom D1732Vienna, AustriaMarianne.Osterkorn@reeep.org+43 1 26026 3677www.reeep.orgwww.reegle.info

15. 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.

16. The "la Venta III" Project consists of 3 Components • 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.