Danish Energy Partnership Programme. Cooperation with IEA on Renewable Energy and Energy Efficiency

Danish Energy Partnership Programme Cooperation with IEA on Renewable Energy and Energy Efficiency

Danish Energy Partnership programme - cooperation with IEA on Renewable Energy and Energy Efficiency The DEA Energy Partnership Programme (DEA) is part of the Danish commitment to fulfil the agreements under the Copenhagen Climate Summit in 2009 and subsequent climate conferences, assisting a number of emerging economies in their low carbon transition. Under the Global Frame of the Climate Envelope, support has been rendered to DEA Energy Partnership Programme in the Ministry of Energy, Utilities and Climate, and DEA is currently engaged in bilateral cooperation with China, Mexico, South Africa, Vietnam, Ukraine, Indonesia and Turkey in order to promote the use and awareness of the Danish energy experiences as an inspiration for green transition through a unique approach in a government-to-government cooperation. As a public authority, DEA provides assistance in a unifying concept offering cooperation within a variety of planning tools from the Danish energy model. The toolbox includes collection and processing of data, scenario analysis and energy technology assessment which feeds in to advice on short- and long-term energy planning and finally results in new regulation. The Danish energy model provides politicians and regulators with a solid base for discussing the consequences of the energy policy carried out and thereby provide the needed assistance for integrating larger shares of renewable energy and other measures while keeping the energy-sector as cost-efficient as possible. DEA often collaborate with other international agencies as well, including the International Energy Agency IEA, and a number of activities on renewable energy and energy efficiency are implemented in cooperation with IEA. For the latter, the cooperation takes place under the E4 programme, which is partly supported by Denmark. The E4 cooperation countries also include the majority of DEA partner countries, thus exploring potential for cooperation is obvious. Similarly, on renewable energy, the IEA GIVAR project Securing the Value of Wind and Solar Power, which is also partly funded by Denmark, has focused on DEA partner countries, such as South Africa and China, as case-studies. This also has the potential for IEA-DEA cooperation, not least with regard to concrete capacity building as a follow-up to the study. Potential synergies within activities on energy efficiency and renewable energy between DEA and IEA should be explored in order to impact mitigation of carbon emissions and contribute to the countries long term planning on renewable energy and energy efficiency.

CHINA DEA is currently assisting the China National Renewable Energy Centre (CNREC) for a 1½ year period from January 2015 to June 2016. Since the finalisation of the Sino Danish Renewable Energy Development programme at the end of 2014, the DEA supports the Children s Investment Fund Foundation (CIFF) funded programme Boosting Renewable Energy programme which is led by CNREC. CIFF supports the programme with US$ 16,6 million from 2015-2019. The DEA support is not covered by CIFF funding. DEA support provided by the DEA includes development of long term scenarios for RE integration, grid planning, flexibility on power plants, etc. The Centre is playing a key role as a think-tank for the National Energy Administration (NEA) and the National Development and Reform Committee (NDRC) in terms of setting targets for renewable energy in the national planning and the formulating of policies for increasing the deployment of renewable energy, and it has a key role in providing inputs to the 13th Five-Year Plan (FYP). The DEA furthermore cooperates with China s National Energy Conservation Centre (NECC) on energy efficiency. NECC is placed directly under NDRC and is responsible for a large portfolio within the field of EE in China. The cooperation covers EE in industries, energy efficient district heating and excess heat from industrial processes. Current /finalized cooperation with IEA DEA and IEA (E4) has been coordinating their projects in China since December 2014. The IEA is furthermore working on a project on business models for utilization of excess heat from industries. The DEA has been involved with this project since it was initiated. DEA is through the China National Renewable Energy Centre (CNREC) involved in the IEA Working Party on Renewable Energy Technologies (REWP) as well as in providing data for various IEA publications. IEA could be a potential partner in the preparation of the China Renewable Energy Outlook. Furthermore, potentially IEA could participate in advisory teams concerning the Boosting Renewable Energy Programme (the Children s Investment Fund Foundation (CIFF) funded programme that the DEA s technical assistance supports) as well as in CNREC/DEA workshops. There is furthermore a potential for collaboration between IEA s Grid Integration of Variable Renewables (GIVAR) programme and the DEA-NEA China Thermal Power Transition (CTPT) programme. The collaboration could focus on identifying scalable flexibility pilot projects on thermal cogeneration plant in China and dissemination of results. In November 2015 China was accepted as an associated member of the IEA and the IEA is currently considering the establishment of an IEA office in China. The new office has the potential to further strengthen the current cooperation s not least on energy efficiency. DEA and NECC are in the process of developing pilot projects on district heat planning, utilization of excess heat from industries and energy management in industries in two selected Chinese cities. IEA will participate in the pilot project s expert group. The aim is to scale up the lessons learned from the pilot to other regions in China, both through NECC s local centers and IEAs information channels.

MEXICO DEA cooperates with Mexican partners under the country programme Climate Change Mitigation and Energy Programme (CCMEP) that runs from 2014 mid 2017, with a budget of approximately EUR 6 million, including an international energy advisor and a national climate advisor. To this is added DEA technical assistance as in-kind contribution. CCMEP supports Mexico s own strategies and action-plans through sharing Danish experiences on energy system analysis and policy development. CCMEP has three components on climate, renewable energy and energy efficiency, with potential for IEA cooperation identified under the EE component. Cooperation partners are Ministry of Energy (SENER), Ministry of Environment and Natural Resources (SEMARNAT) and the underlying commissions CONUEE and INECC. The CCMEP also facilitates and supports cooperation between system operators CENACE in Mexico and Energinet.dk in Denmark. Lastly, there is separate activity on developing a wind atlas for Mexico. Current /finalized cooperation with IEA DEA cooperates with IEA on developing the first Mexican EE strategy. Through a participatory process involving key partners, DEA, IEA and GIZ support SENER and CONUEE with input to their EE strategy. DEA will participate in the IEA in depth review of Mexico with a key expert on research and development. The review is part of Mexico s admission procedures to join IEA. DEA has provided comments to an IEA report on Space Cooling and Enforcement of Building Energy Codes. DEA has activities within EE in buildings and see potential for cooperation with IEA on energy efficiency in buildings in urban areas. Also, there could be potential in working together on improving data and data collection.

SOUTH AFRICA DEA is cooperating with South African partners in the EUR 5,4 million Danish-South African Renewable Energy Programme that runs from 2013 mid 2017. The Programme has three main focus areas: Providing funding and technical assistance to the Department of Energy on energy efficiency and renewable energy and climate change activities in order to enable and strengthen comprehensive energy planning capabilities. Funding and facilitating further development of the South African Wind Atlas (WASA) in cooperation with SANEDI. Providing funding and technical assistance to ESKOM for integration of renewable energy into the power system. The programme coordination is placed at the Danish Embassy in Pretoria and with the programme s energy advisor at South Africa s Department of Energy (DoE). Added to this is DEA technical assistance provided as in-kind. Current/finalized cooperation with IEA DEA and IEA have together with DoE and other key stakeholders since the initial pre-formulation phase, collaborated on the development of South Africa s second National Energy Efficiency Strategy (NEES) 2015 to 2030. IEA presented selected recommendations to the South Africa NEES at a South African study tour to Denmark in late 2015. On energy efficiency DEA s support to the NEES could be boosted by leveraging the IEA s emerging economies experience and create more value from DEAs initiatives by sharing the experience and lessons learned at the regional level. The IEA propose to undertake a workshop on IEAs 25 energy efficiency policy recommendations in a Southern African context through stakeholder involvement. IEA recommendations could add value in the implementation of the NEES. DEA expects to review South Africa s building code and build capacity to ensure its implementation. Possible cooperation with IEA under the E4 programme could be explored. UKAid has until November 2015 provided support in terms energy efficiency in industry in South Africa. Possible DEA could build upon present experiences and provide expertise on energy efficiency in industry in cooperation with the international experiences of the IEA. South Africa has requested support from IEA on a further development on their data and monitoring system. This is a potential area for cooperation since DEA expects to support a proposed central smart metering data system. On renewable energy IEA suggests, on the basis of their MoU and joint work programme with South Africa, to provide policy recommendation for strengthening electricity security. Specifically focus is placed on an assessment of the ability for South Africa to meet growing electricity demand by leveraging local and regional resources in particular renewables. The intention is to undertake the assessment through an IEA team review. This could be linked to DEAs capacity building on system adequacy and ancillary services/reserves and to scenario modelling on interconnectors. DEA could also consider participating in the IEA review team. Finally, DEA s capacity building on renewable energy data with DoE is expected to benefit from an alignment with the groundwork done by IEA on training and capacity building in sub-saharan Africa.

VIETNAM DEA cooperates with Vietnamese partners through a country programme Low Carbon Transition in Energy Efficiency (LCEE). The programme period is 2013-2017, and support is approximately EUR 8,7 million, of which 50 per cent is budget support. There is no Danish advisor posted in Vietnam but there is a Project Management Unit (PMU) with four national consultants to support the programme. The Vietnamese partners are Ministry of Industry and Trade (MOIT) and the Ministry of Construction (MOC). The focus of LCEE is to support Vietnam in their low carbon transiti- on within the energy sector, specifically targeting energy efficiency initiatives. The largest activity is the financing support mechanism Green Investment Facility that supports EE investments in SMEs. Other activities include training and capacity building of building designers as well as suppliers of energy efficient technology and services to the industries. In addition to the LCEE programme, DEA supports MOIT in improving the power sector planning by implementing the Balmorel power sector optimisation model. The aim is to prepare an outlook report by end 2016. Current/finalized cooperation with IEA The Vietnamese Government aims to implement a strengthen energy data system for preparation of the national energy balance. IEA has prepared a proposal for a working programme on data and statistics with three elements of 1) fact finding study, 2) workshop on present legislation and 3) assistance required for implementation of the working programme. DEA is cooperating with IEA in this regard and has provided financial support in the tune of EUR 15,000. Also DEA and IEA coordinate closely on the task and held a coordination meeting in September 2015. Also DEA has provided contact between IEA and a GIZ project working on energy statistics in Industry. IEA is implementing a study on Reducing Emissions in Power Generation with focus on clean coal. DEA participated with presentation in a workshop concluding the study.

UKRAINE The Ukrainian-Danish energy centre (UDEC) was established in 2015 and is based in the Ministry of Energy and Coal Industry in Kiev. A Danish Chief Advisor is posted to UDEC and will provide technical support during a three year period. DEA experts will provide insights from Danish experience to the Ukrainian experts. The energy cooperation aims to ensure improved data for energy supply and consumption. This will enable Ukraine to create a long-term framework for energy planning and policy. DEA will support UDEC within six main areas toward: Methodology of long-term forecast modelling for national energy balance Methodology for greenhouse gas registry and UNFCCC reporting Monitoring system of energy efficiency at industrial sub-sector level Methodology and tools for analysis of integrating renewable energy in regional grids Methodology and software for energy scenarioanalysis Analysis of options for increased use of biomass and biogas in the heat sector Current /finalized cooperation with IEA The activities of IEA and OECD are directly related to the activities of UDEC being implemented in the Ministry of Energy and Coal Industry. The Ministry of Energy, Utility and Climate participated in the IEA Standing Committee on Global Dialogue in September 2015. IEA is working on deciding their continued focus in Ukraine, which possible would be on collection and analysis of data in Ukraine in synergy with other bilateral and multilateral institutions. The DEA has been in a dialogue with the IEA on possible cooperation in terms of data on energy consumption and supply, energy efficiency in industry including an energy efficiency test case based on IEA manuals on energy efficiency indicators for statistics and for policy making. The activities could be through seminars or possible IEA training and institutional strengthen. Also potential activities could be in terms of grid integration and on biomass. Potential cooperation on energy data and policy starting with a possible meeting in May Explore potential training activities, however funding for such activities is to be identified by DEA.

INDONESIA The Danish government has initiated a government to government cooperation with Indonesia on energy to strengthen the partnership between the two countries. A Memorandum of Understanding was signed between the Ministry of Energy and Mineral Resources, MEMR, and the Ministry of Energy, Utilities and Climate on October 22, 2015. The objective of the The Strategic Sector Cooperation on energy (SSC) is to assist Indonesian government agencies and other relevant stakeholders in developing relevant policies, strategies and solutions to increase the electrification rate and to achieve the government s long-term RE and EE objectives. The cooperation is on both technical and institutional level and the main outcome of the SSC will be the support to improved modelling and energy planning, extended integration of RE in the energy system and the reduction of the energy demand through EE measures. The three year work program (2016-2018) has been developed in close cooperation with MEMR and National Energy Council and it is also foreseen that for example the Ministry of Industry will be actively involved. The work programme is divided into three main components: Modelling and long term energy planning Renewable energy integration Energy efficiency Current cooperation with IEA DEA has had several meetings with IEA representatives on different occasions to discuss synergies between projects regarding Indonesia. In general, there has been a great interest from both sides on keeping in contact and establishing collaboration between IEA projects and DEA projects in Indonesia to avoid working in parallel. DEA has activities within integration of wind power, energy efficiency and modelling/scenarios of the energy system in Indonesia and there is a large potential for cooperation with IEA within these fields. Collaboration on data collection and modeling is particular relevant and will be further developed as part of the IEA GIVAR RE Integration Study. Within EE, DEA s focus in 2016 is the Indonesian EE master plan. IEA is providing input on evaluation methods and target setting for policies and DEA will focus on policy implementation. There will be ongoing coordination to ensure alignment of the main recommendations on EE policy and when possible also joint missions.

TURKEY DEA is preparing a programme for cooperation with Turkey. The upcoming Turkish Danish Strategic Sector Cooperation (SSC) on energy is in its preparation phase. A Danish-Turkish Energy Cooperation Memorandum of Understanding was ratified in 2013 and the coming strategic sector cooperation will further establish the longterm bilateral relations between public authorities in Turkey and Denmark and through public and private partnerships contribute to a joint goal of more sustainable and green energy sector. Collaboration will be focused on three main areas: Renewable energy, energy efficiency and scenarios/modelling. The main renewable energy component will be wind power, and the main energy efficiency component will be district heating. The scenarios/modelling may focus on quality of data and statistics and long term RE 2050 scenarios inspired from other partnership cooperation, e,g, China and Vietnam. Current cooperation with IEA As the programme in Turkey is in its preparation phase, cooperation with IEA has yet to be initiated. The government of Turkey and IEA wish to cooperate and hence a possible cooperation under the DEA programme can be explored possible in energy efficiency and on renewable energy and possible mapped through a stakeholder analysis during the inception phase also taking into account the IEA analysis on Turkey.