Improving International Energy Initiatives

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1 Improving International Energy Initiatives Dr David Crossley Managing Director Energy Futures Australia Pty Ltd Asia Pacific Energy Research Centre Mid-Year Workshop Tokyo, November 2007

2 Presentation Topics APERC s analysis of IEIs Examples of IEIs Operational issues with IEIs Conclusions Information resources 2

3 APERC s Analysis of IEIs

4 An Example of Meta-research The APERC IEI project is an example of metaresearch standing back and looking at how and why we are doing what we are doing Meta-research can provide valuable insights into how to improve current institutions and processes Currently, too little meta-research is being undertaken and the IEI project is a fine example of the genre 4

5 Definition of IEIs APERC provided the following definition: We see an International Energy Initiative as a coordinated strategy with explicit goals which is voluntarily undertaken to address the market-external needs or ambitions of diverse partners 5

6 APERC s Analytical Approach (1) APERC has made a major contribution by: defining IEIs as a distinct class of energy-related actions on the international scene identifying the key elements of initiatives: actors, objectives and mechanisms characterising the purposes and modes of operation of IEIs describing the lifecycle of IEIs: problem identification refinement of mission/objectives/mechanisms implementation 6

7 APERC s Analytical Approach (2) At present the APERC analysis, while valuable, is static and doesn t reflect the dynamic nature of IEIs Further work is required to analyse how IEIs actually operate in practice The case studies currently being carried out will assist with this However, the information that can be obtained from the outside looking in is limited The APERC research team should seek to involve IEI participants in the research project, eg through indepth interviews and even by including IEI participants in the research team 7

8 Examples of IEIs

9 REEEP Renewable Energy & Energy Efficiency Partnership (1) REEEP is an active, global public-private partnership that structures policy initiatives for clean energy markets and facilitates financing for sustainable energy projects REEEP s goal is to expand the global market for energy efficiency and renewable energy REEEP covers four of the six IEI modes of operation: financing mechanisms regulatory frameworks information sharing; and education and capacity building 9

10 REEEP Renewable Energy & Energy Efficiency Partnership (2) REEEP was established as a Type 2 partnership at the 2002 World Summit on Sustainable Development, with the United Kingdom Government as its major donor REEEP now has a total of over 240 formal partners representing the private sector, governments, NGOs and development banks; in addition, REEEP has over 3500 individual members Currently, 38 REEEP partners are governments, of which 12 are donors: Australia, Austria, Canada, Germany, Ireland, Italy, Spain, the Netherlands, New Zealand, Norway, the United Kingdom, and the United States 10

11 REEEP Renewable Energy & Energy Efficiency Partnership (3) REEEP s aim is to accelerate the integration of renewables into the energy mix and to advocate energy efficiency as a path to improved energy security and reduced carbon emissions, thereby also achieving socio-economic benefits REEEP is not involved in developing or installing renewable or energy efficiency technologies Rather REEEP focusses on promoting financing mechanisms and policy and regulation to support increased implementation of these technologies, particularly in developing countries REEEP has eight regional secretariats providing on-the-ground knowledge of policies, regulations and financing structures for clean energy 11

12 REEEP Renewable Energy & Energy Efficiency Partnership (4) REEEP achieves its goals through its initiatives, interventions and funding program Initiatives and interventions include: the REEGLE information portal on renewables and energy efficiency the Sustainable Energy Regulators network (SERN), focussing on policy and regulation to support renewables and energy efficiency the Renewable Energy Exchange (RE-EX), a financial intermediary based in Singapore that matches developers of renewable energy and energy efficiency projects with investors and lenders 12

13 REEEP Renewable Energy & Energy Efficiency Partnership (5) Through its funding program, REEEP disburses more than USD 5 million annually for projects in 44 countries in the developing world and in economies in transition Generally these projects do not install technology rather they remove market barriers to renewable energy and energy efficiency The projects are beginning to deliver new business models, policy recommendations, risk mitigation instruments, financing mechanisms, handbooks and databases 13

14 IEA-DSM IEA Demand Side Management Programme (1) The International Energy Agency (IEA) is an intergovernmental body within the OECD structure, founded during the oil crisis of , committed to advancing security of energy supply, economic growth and environmental sustainability through energy policy co-operation The IEA Secretariat, based in Paris, carries out ongoing work in response to the requirements of member governments In addition, the IEA provides a framework for international cooperation and collaboration in energy technology R&D, deployment and information dissemination under more than 40 Implementing Agreements These Agreements enable experts from different countries to work collectively and share results, which are usually published 14

15 IEA-DSM IEA Demand Side Management Programme (2) The IEA Demand Side Management Programme operates under an IEA Implementing Agreement IEA-DSM is an international collaboration of 18 countries working together to develop and promote opportunities for demand side management (DSM) IEA-DSM covers five of the six IEI modes of operation: financing mechanisms regulatory frameworks research and development information sharing; and education and capacity building 15

16 IEA-DSM IEA Demand Side Management Programme (3) IEA-DSM is managed by an Executive Committee made up of representatives from each of the 18 countries participating in the program The work of IEA-DSM is organised through a series of multi-national collaborative research projects ( Tasks ) and is reported in a number of publications Countries nominate topics for research projects and then decide which of the projects they will participate in The projects function as commissioned research, with the participants receiving first use rights over the results 16

17 IEA-DSM IEA Demand Side Management Programme (4) Through the research projects, IEA-DSM works to develop and promote tools and information on DSM and energy efficiency The projects comprise collaborative work between countries in the Asia Pacific, Europe and North America Through this work, IEA-DSM has created a tool box of resources and information for governments, utilities and energy companies to assist them to incorporate DSM measures into their policies and activities 17

18 IEA-DSM IEA Demand Side Management Programme (5) IEA-DSM research projects include: policy and regulatory studies financing issues case studies of DSM and energy efficiency projects (occasionally) technology research and development Examples of projects include: policy, regulatory and commercial mechanisms for promoting DSM and energy efficiency using DSM to support electricity distribution and transmission networks (grids) DSM and climate change, including investigating whether DSM measures can be made fungible with other emission reduction measures 18

19 Operational Issues with IEIs

20 Operational Issues 1. Defining the problem(s) 2. Refining the mission/objectives/mechanisms 3. Implementing IEI activities 4. Reviewing and (if necessary) terminating IEIs 20

21 Defining the Problem(s) There are various motivations for initiating a new IEI, such as: to deal with a major threat, eg IEA, UNFCCC to achieve a particular (usually political) objective of one or more stakeholders, eg REEEP, APP/AP6 because collaboration is seen as a good idea, eg IEA-DSM Not all these motivations enable clear and precise problem definition An IEI is likely to be most effective if stakeholders agree on a clear problem definition, and particularly if the IEI is an idea whose time has come, eg UNFCCC Importance of champions, eg Ted Turner and Tim Wirth with the United Nations Foundation 21

22 Refining the Mission/Objectives/Mechanisms Refining the Mission/Objectives/Mechanisms is easiest if there is a major threat, eg IEA (in 1970s), UNFCCC It is hardest if the reasons for establishing the IEI are relatively vague, eg IEA-DSM, REEEP Mission/objectives/mechanisms may need to be revised and amended as circumstances change, eg IEA Alliances between stakeholders are likely to shift over time, eg APEC, APP/AP6 Effective goal-setting may require a strong champion (again) 22

23 Implementing IEI Activities Effective implementation requires close attention to the needs of stakeholders and to the development of mechanisms and/or products that meet those needs Most effective IEIs have clear communication channels to a clearly defined audience of stakeholders, eg UNFCCC, IEA-DSM, GHGP IEIs are likely to be ineffective if: the mechanisms and/or products are not related to stakeholder needs the audience for the mechanisms and/or products is not clear or non-existent, eg REEEP communication channels are not strong, eg IEA-DSM 23

24 Reviewing and Terminating IEIs (1) Periodic reviews of IEIs are essential if they are to remain effective Reviews should include the following questions: does the original problem still exist and/or has it changed, eg IEA have the needs of the stakeholders changed and are they still being met, eg GEF are the mechanisms and/or products still relevant and effective in achieving the IEI objectives, eg Kyoto Protocol Results of reviews may be ignored for various reasons, eg REEEP 24

25 Reviewing and Terminating IEIs (2) Some IEIs lose relevance and effectiveness and should be terminated Termination may not occur because political objectives are met simply by having the IEI on the books the so-called zombie initiatives, eg KEDO Are zombie initiatives necessarily harmful? 25

26 Conclusions The APERC analysis of IEIs has so far made a major contribution to identifying IEIs and understanding what they are and what they do To assist in improving the operation of IEIs, Phase 2 of the APERC project will have to analyse how IEIs operate in practice This analysis will require in-depth involvement with IEI participants The APERC IEI project has the potential to make a significant contribution to improving the operation of IEIs 26

27 Information Sources David Crossley: Energy Futures Australia, my company s website: REEEP website: IEA-DSM website: 27