|
| |
[
Download the Paper as PDF / RTF
* ]
Sustainable
Energy
Issue
Paper, February 28th February, 2002
Drafted
by Irene Gerlach, IC Coordinator Sustainable Energy
Based
on an earlier draft by Richard Sherman, GLOBE Southern Africa
Table
of Contents
1.
Preamble
2.
Framework for the IC process
3.
History of the IC process on sustainable energy to date
4.
Planned activities between now and IC event
5.
Introduction to Parts I, II, and III
Part
I: Creating an enabling
sustainable energy framework (six sections)
Part
II: Further practical ideas and
solutions for implementing sustainable energy projects
Part
III: Conceptual Background
1.
Preamble
“To
implement the goal accepted by the international community to halve the
proportion of people living on less than US$1 per day by 2015, access to
affordable energy services is a prerequisite” (CSD-9).
The decade since UNCED in 1992, has witnessed great enthusiasm in both
public and private sectors for expanding the use of renewable energy technology. The G8 Task Force (2001) concluded that “renewable energy resources can now sharply reduce
local, regional and global environmental impacts as wells as energy security
risks”.
2.
Framework for the IC process
The
IC process should contribute to the implementation of recent international
agreements, such as the CSD-9 decision, and the work done by the G8 Renewable
Energy Task Force, through joint stakeholder action.
The work on sustainable energy
should take advantage of the media attention it can generate.
Linkages to freshwater issues, health issues, and corporate / stakeholder
citizenship should be developed.
The IC process should also aim to influence the intergovernmental process
towards the Johannesburg Summit. It seems most effective and mutually
reinforcing to take an integrated approach to maximize the output from the
Summit. Hence, the group may choose to develop joint statements and lobbying
strategies as well as develop joint implementation action.
3.
History of the IC process on Sustainable Energy to date
 |
First IAG meeting held in New York, 31 Jan 2002. |
4.
Planned activities between now and the IC event
|
Hold IAG telephone conference, either the 7th or 14th
March; discuss possible joint action (towards collaborative action plans and
intergovernmental process) |
Points
of Discussion for this telephone conference are:
|
We have included in this paper ( Some of sections 1,
3 and all of Section 6), some issues relating to fossil fuels, focusing on
corporate social responsibility through
improving community participation and increasing community benefit. There are other issues related to fossil fuels that need to
be included. HOWEVER, the IC
must decide whether they want to focus soley on renewables; or include
some issues relating to fossil fuels; or decided to put them to a separate
group/sub-group. We suggest
that this question be addressed upfront at the telephone conference to
settle on one of these three options. |
|
Within Part I & II: Which focus areas/government action/possible stakeholder
action are missing? Which
should be changed/amended?. Which ideas should fill the empty cells |
|
Prioritise and
develop a more focused detailed action plan that we can move forward on |
|
Government
involvement: Which? When? On which
issue? |
|
Finalise the
composition of the Issue Advisory Group |
|
Next steps: plan
for Prep Comm 3 |
|
IC to produce Issue Paper V2 |
|
IAG dinner meeting during first week of Prep Comm III (24thor
25th March); discuss possible joint action; start identifying IC
participants |
|
IC to produce Issue Paper V3 |
|
In the next two weeks the website for the Sustainable Energy strand
will be updated for the gathering of information for IAG members to access
as they so wish. |
5.
Introduction to Parts I, II, and III
The
following section below is to enable discussion at the next IAG telephone
conference as to how we move forward for the Implementation Conference.
This is not prescriptive by any means and is there as a framework to
instigate discussion and help guide us to the next stage which will be about
defining key issues which we want to work on that can actually deliver some
tangible results. It has been split
into three parts: Part I:
Creating an enabling sustainable energy framework.
Also included in Part I, is the
role of fossil fuels and their future usage, which takes into account corporate
social responsibility, through community participation and how to increase
community benefit; Part II: Further Practical ideas/solutions for implementing
sustainable energy projects and finally Part III: A conceptual background.
Please
note when reading this section that each possible stakeholder action plan should be examined for its
potential to contribute to poverty eradication; social inclusion and
empowerment; good governance; and gender equity.
Part
I: Creating an enabling sustainable
energy framework
Section
1: The strengthening of
institutional capacity and policy framework for sustainable energy
|
Target/Goal
|
Existing
Barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
To
ensure that renewables are adequately considered as part of international
energy policy
To
help formulate and implement domestic sustainable energy policies taking
into account both the role of renewables (solar, wind, bio-mass,
geo-thermal, hydro) and fossil fuels.
|
Insufficient
human and institutional infrastructure
Weak
institutional capacity (human and infrastructure), in developing countries
due to unaccountable governance and lack of funds which encourages
inadequate environmental legislation and the inability to enforce, and
energy policy frameworks which cannot be implemented effectively.
|
Develop
and implement appropriate national, regional and international policies
and measures to create an enabling environment for the development,
utilisation and distribution of renewable energy sources.
Institutional
capacity strengthening
to support the development of
comprehensive national renewable energy strategies within National
Strategies for Sustainable Development (NSSDs)
Integrating
energy considerations in socio-economic programmes in policy making
|
Institutional
Capacity building at national
and local levels in support of
sustainable energy policies.
Private-Public
partnerships should be encouraged with a view to advancing energy for
sustainable development.
Devise
appropriate training and education programmes in-country at national and
provincial levels on implementing sustainable energy policies effectively.
Strengthen
information networks, compilation and dissemination systems and public
awareness programmes on renewable energy sources and technologies.
|
Section
2: Opening up the renewable energy
market and making it more competitive
|
Target/Goal
|
Existing
Barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
To
expand domestic renewable energy markets in order to drive down costs and
make renewables more cost effective and competitive with conventional
alternatives
To
phase out subsidies on fossil fuels and phase in subsidies for renewables.
|
Although
cost of renewables are falling as volumes increase, in most cases it is
not yet directly competitive with conventional alternatives.
Market
distortion and harmful subsidies are detrimental to a thriving renewable
energy market
|
Encourage
the role of the private sector in the development and utilisation of
renewable energy technologies, through
appropriate incentives and regulations.
Policies
to reduce market distortions, including restructuring taxation and the
phasing out of harmful subsidies, to
promote energy systems compatible with sustainable development.
G8
should place more trust fund (?) resources with International Finance
Institutions (IFIs) that can
be accessed by private sector project developers for renewable energy
projects.
|
Global
corporations investigate renewables and strategies for cost effective
usage……
Lobby
for change the International Finance Corporation (IFC) guidelines to make
them more appropriate for small-scale entrepreneurs.
|
Section
3: Advanced Research &
Technology development for sustainable energy
|
Target/Goal
|
Existing
Barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
To
strengthen the co-operation
with developing countries on R&D will assist in appropriate
environmentally sound technology transfer towards systems tailored for
developing country usage
To
strengthen advanced research and innovation for renewables and also
managing fossil fuels more effectively and efficiently by financing energy
institutions and organisations and encourage businesses at all levels to
participate and contribute in a positive way
|
Lack
of funding for research and technology development for renewables.
Inappropriate
technology transfer to developing countries
|
Strengthen
national and regional research institutions/centres, on sustainable energy
including renewable energy technologies, energy efficiency, advanced
energy technology, and sustainable use of traditional energy resources.
Enhance
developing countries access to environmentally sound and economically
viable technologies for sustainable energy.
Support
electricity services based on grid extension and/or decentralised energy
technologies, particularly in isolated areas.
Promote
an environment which enables the public & private sectors (incl.
partnerships), energy
co-operatives to engage in the transmission and distribution of
electricity at affordable rates.
|
To
help advocate the importance of research and technology development by
establishing information networks which promotes the importance of
sustainable energy for the future.
A
network & information sharing for renewable energy cooperatives
|
Section
4:
Finance mobilisation to encourage and enable renewable energy to flourish
|
Target/Goal
|
Existing
Barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
Establishing
an appropriate enabling environment conducive to attracting investments
that is supportive to the objectives of sustainable development and
ensures public participation
|
High
up front costs of renewables and other impediments to capital mobilisation,
leading to inadequacies and shortfalls in financing programmes
|
Strengthen
financial support to developing countries for the promotion of renewable
energy usage (ODA, WB)
Provide
incentives for energy conservation in all sectors taking into account
domestic priorities.
G8
countries and IFIs should help formulate well-defined subsidy programmes
“smart subsidies” in promotion of renewable energy.
Develop
and implement common environmental guidelines among Export Credit Agencies
by establishing criteria to assess environmental, economic and social
impacts of ECA financed
projects.
|
Micro-credit
and revolving funds in support of renewable energy projects should be
encouraged and supported. (Any micro-credit scheme should be reviewed on
the basis of latest analyses of their impact on gender relations)
Estabishing
public-private partnership renewable energy projects that are attractive
to securing funding.
|
Section
5: Stronger Community Participation
in the promotion and involvement of sustainable energy
|
Target/Goal
|
Existing
Barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
To
develop and strengthen community participation and benefits in the
planning and implementation of renewable energy projects.
Focus
on strengthening participation of disadvantage groups, including women, by
involving them in key decision making of policy, strategy, planning and
implementation of renewable energy projects.
|
A
lack of understanding of what sustainable development really means
A
lack of knowledge about renewable energy technologies and their
advantages.
Exclusion of parts of civil society, particularly women in
policy decision making and implementation.
Corporations
are not good at communicating with local communities (ivory towers).
|
Encourage
communities to participate in energy policy making and implementation,
particularly women.
Run
public awareness campaigns on sustainable energy and support
national, regional and international NGO networks promoting the use
of renewable energy.
|
Develop
and encourage the use of indigenous sources of renewable energy where
appropriate
Strengthen
capacity building, including education and training and public awareness
programmes on the importance of sustainable energy.
Develop
networks that promote renewable energy.
Encourage
private/public partnerships for developing renewable energy projects.
Involve
communities, particularly women in key decision making, planning and
implementation of renewable energy projects.
|
Section
6: Improving community
participation and increasing community benefits from fossil fuel extraction
activities
|
Target/Goal
|
Existing
barriers
|
Government
Action
|
Possible
Stakeholder Action
|
|
To
achieve more sustainable consumption patterns, particularly in the
developed countries.
Strengthen
Corporate Social Responsibility within the fossil fuel industry by
promoting tangible targets that can and indeed must be adhered to.
Encourage
& promote accountable and transparent governance
Institutional
capacity building to enable the development, implementation and
enforcement of environmental legislation.
|
Lack
of transparency and
accountability within the fossil fuel industry
Lack
of accountable and transparent governance and very weak institutional
capacity to develop and enforce environmental legislation effectively.
Poor
communication and relations with local communities (ivory towers/gated
community syndrome). This
leads to the use of inappropriate security forces to protect their
interests and hostile
environments occurring.
Lack
of competition from the alternative energy technologies.
Inappropriate
subsidies |
Promote
sustainable consumption patterns and energy consumer awareness.
Encouragement and support for environmental legislation in developing countries,
that can be regulated and enforced.
Incentives
to encourage more accountable governance in order that local
communities do actually benefit from oil revenues.
Encourage
independent EIAs and audits in relation to HSE and Ethical Codes of
Conduct.
Recognise
companies who do take a positive stance on issues such as no
gas-flaring/re-injection and encourage other companies to follow suit.
Encourage
advanced technology that promote more environmentally friendly practices
of fossil fuel exploration and usage.
|
Look
for best and worst practice examples of oil and gas exploration and
identify practical solutions towards more sustainable development and the
avoidance of conflict.
Lobby
to for increased financial disclosure to encourage more accountable use of
oil revenues
Encourage
the participation of communities in influencing Corporate Social
Responsibility and promoting that double standards are unacceptable.
Encourage the use of independent Environmental and Social Impact
Assessments EIAs/SIAs.
Wherever
possible a local workforce should be used and ex-patriates kept to a
minimum. Thereby corporations
have a responsibility to train and transfer skills in both
technical/non-technical roles encourage/develop/ support local services.
|
Part
II: Further
practical ideas/solutions for
implementing Renewable Energy Projects
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Introduction
of Renewable Energy
|
To
commit to the introduction of at least 20% of global electricity
generation from renewable energy resources by 2010.
|
To
implement this target, Renewable Energy Set-Aside Programmes and/or
Renewable Portfolio Standard (RPS), is one innovate option under active
consideration as a mechanism to ensure renewable energy plays a meaningful
role in the national energy mix of portfolio.
The
standard ensures that a minimum amount of renewable energy is included in
the country's energy portfolio.
Standards
can be dynamic, designed to increase the renewable energy market share
over time, in order to expand the renewables market. By establishing
long-term market demand for renewable energy, this type of policy
encourages investors to develop local, national and regional renewable
resources. Such programmes could be targeted at both the utility levels–
state owned and private as well as local government and municipal
structures.
|
This
would require that all energy distributors or generators (depending on how
the standard is designed) use renewable energy to meet a specified
percentage of electricity sales or total generation.
Stakeholders
to commit themselves independently to that target and lobby governments to
include the target in the J’Burg agreements. |
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Green
Buildings
Heating,
cooling and lighting the worlds built structures consumes roughly one
third of the all energy flows used by modern societies. There is growing
recognition of the role that green buildings and the application of
renewables technologies can play in reducing energy consumption and
greenhouse gas emissions. Combining active solar and passive solar systems
and designs can reduce a consumption of conventional energy in buildings
from 30 up to 80% with these saving accumulating year after year. Building
design is an area with tremendous potential for energy savings. Thick
insulation combined with passive solar design techniques can virtually
eliminate the need for traditional heating systems. Simple measures like
planting shade trees, orienting building for optimal exposures, and
placing windows for cross ventilation can dramatically reduce costs and
energy use.
In addition to preventing pollution, improving a building’s efficiency
is an effective way to lower operating costs and thereby increase asset
value.
|
To
ensure that at least 50% of all new infrastructure projects at the
government, local government and private sector level, use construction
techniques, which allow for recycling, dismantling and re-erection of
structures and materials as well as considering the life cycle costing of
materials and product and the use of renewable energy power generation. |
dito
|
Stakeholders
to commit themselves independently to that target and lobby governments to
include the target in the J’Burg agreements
|
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Solar
Homes
Solar
home systems can bring cost effective power to people and institutions in
off grid or remote areas, particularly for lighting, and equipment. Apart
from SHS, other applications of PV in developing countries include 1)
PV-powered remote telecommunications equipment; 2) rural health clinic
refrigerators; 3) rural water pumping; and 4) PV battery-charging
programs, which allow rural residents to purchase or rent batteries to
provide electricity to their homes, and then recharge them at PV-powered
charging stations. Widespread SHS use could help developing countries onto
a low-carbon path for rural electrification while providing an important
market niche to help make PVs more competitive for a range of applications
worldwide.
|
Significantly
increase the number of solar homes |
To
establish a target to ensure that at least 5 million homes are electrified
by using renewable energy technologies by 2010 and include in the J’Burg
agreements
|
Stakeholders
to commit themselves independently to that target and lobby governments to
include the target in the J’Burg agreements
|
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Technology
research and demonstration |
Technology
research and demonstration can lower long-term technology costs, improve
available information, and reduce uncertainty. Some technologies may
require further application-oriented research, for example to better
understand and demonstrate installation costs, performance, reliability,
and institutional issues in a specific context.
|
|
|
|
Local
development or community organisations
|
Local
organisations, whether municipal agencies, cooperatives, or
non-governmental organisations, can promote renewable energy locally and
provide resources for energy enterprise development, financing, and
technology assessment, as well as adaptation for local needs and
conditions.
|
|
|
|
Energy
service companies |
Energy
service companies can be especially important for small-scale dispersed
renewable energy applications. An energy service company should integrate
technical, legal, managerial, and financial capacities for identifying,
assessing, proposing, financing, and implementing renewable energy
projects.
|
|
|
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Awareness
campaigns
|
Increased
awareness by potential end-users about costs, benefits, performance, and
maintenance of commercially available technologies can provide an
important stimulus to market demand. Almost all GEF projects ???? Training
can provide technical, business, regulatory, managerial, financial, and
legal skills needed for purchasing, promoting, regulating, financing, and
commercialising technologies.
|
|
|
|
National,
regional, and local energy strategies and planning
|
Policy-makers
can plan least-cost energy strategies and enact or revise policies that
“level the playing field” for renewable energy relative to
conventional energy sources, by means of government investments, energy
price reforms, institutional and regulatory reforms, tax incentives, and
privatisation and competition in the energy sector.
|
|
|
|
Electric
power utility regulation |
Changes
to regulatory and legal frameworks can encourage independent power
producers to finance and install new renewable generation sources in
existing grids and sell the power to electric utilities.
|
|
|
|
Issue
|
Target/Goal
|
Government
Action
|
Possible
Stakeholder Action
|
|
Codes
and standards |
Codes,
standards, and certification can reduce commercial and purchase risks as
well as negative perceptions of technology performance. Certification and
testing agencies can allow manufacturers to easily verify compliance with
standards and provide purchasers with performance assurance.
|
|
|
|
Information
centres
|
Information
centres can provide education, analytical design tools, market analysis,
and information for evaluating technological options, determining relative
costs and benefits, and understanding implementation requirements and
operation and maintenance of renewable energy technologies. These centres
can actively promote information dissemination among government officials,
electric utilities, potential end-users, and the general public.
|
|
A
network & information sharing for renewable energy cooperatives |
|
Issue
|
Target/Goal
|
Governement
Action
|
Possible
Stakeholder Action
|
|
Resource
assessments
|
Access
to existing resource assessments, resource assessment tools and techniques
(including training and assistance in using the tools), and resource
monitoring and data-acquisition programs can reduce risks associated with
renewable energy-resource uncertainty.
|
|
|
|
Financing
mechanisms and guarantee innovations
|
Innovative
financing mechanisms and financial intermediaries can connect end-users to
sources of capital and bundle small projects for commercial financing.
Successful examples of revolving loan funds or micro-credit for renewable
energy already exist in many developing countries. Intermediaries can take
many forms, including local development NGOs and energy service companies.
|
|
|
|
Best
Practice Examples around the world
|
E&Co
(Energy Through Enterprise)
E&Co
have a presence in Latin, America, Africa and Asia, and provide business
development services and moest loans or equity investments.
E&Co invest seed capital to implement sustainable ventures that
might otherwise not advance. (www.energyhouse.com)
|
|
Other
best practice models to explore.
|
Part
III: Conceptual Background
1.
A Broad Approach to Renewable Energy Project Implementation
Renewable
energy may be given a special status, including more incentives than other
energy sources. The justification is that:
|
Renewable
energy sources are environmentally friendly. Using renewable energy will
therefore reduce the economic burden of mitigating energy sector
environmental impacts. |
|
Renewable
energy sources are domestic energy sources, thereby saving foreign exchange
and improving the security of supply. |
|
Disposal
of biomass residues poses considerable environmental problems. Using the
residues for energy production offers a solution to these problems. However,
it may be necessary to keep some of the residues for soil protection. |
|
World
wide, renewable energy is a fast growing industry. Being pro-active in this
field therefore opens up opportunities for export industries. |
Driving
principles for the Implementation of Renewable Energy Projects in developing
countries
|
It
must deliver clear added benefits for renewable energies and cutting-edge
demand side energy efficiency technologies. |
|
It
must promote sustainable development by maximising other environmental and
social benefits, for example cutting air pollution and creating new jobs. |
|
Ability
to meet user needs. |
|
Availability
of maintenance services and spare parts. |
|
Demonstrated
cost recovery. |
|
Retention
of skilled personnel. |
|
Continued
operation and viability of financing mechanisms or services. |
|
Participation
of local stakeholders. |
The
Transfer of Technologies should meet three basic criteria:
|
They
should be inherently very low emitters of greenhouse gases and air
pollution. |
|
The
technologies and processes involved in all projects must be locally
appropriate. |
|
Technologies
must reflect best practice at the time of the project, so as to avoid the
dumping of technologies already obsolete in developed countries. |
Preferential
treatment for renewable energy and energy efficiency projects would have the
following positive impacts:
|
Ensure
decentralised energy services delivery through the use of independent power
producers. |
|
Time
scale in operationalising renewable energy projects. |
|
<font size= | |
