ti Energy Initiatives Phase II

Transcription

1 Understanding di Internatinal ti Energy Initiatives Phase II APERC Wrkshp at EWG 35 El Drad Plaza Htel, Iquits, Peru 3 March 2008 UIEI Team Presented by Kenny SY WAN Asia Pacific Energy Research Centre

2 Outline Backgrund and Objectives IEI Case Study Analysis 11 case studies, gvernment-based IEIs Findings frm IEI Case Study Analysis IEI Cherence Future energy prblems Technlgy penetratin Recmmendatins

3 Backgrund and Objectives Backgrund Cllabrative energy-related initiatives nging in the APEC regin are numerus, ften inter-linked, and innately difficult t cmprehend Peple are generally dissatisfied with initiative prgress Objectives First phase: scpe and elements Actrs and drivers fr cperatin Mechanisms t achieve initiative bjectives IEI taxnmy Secnd phase: lking frward Identify factrs affecting the prgress f IEIs Investigate the cherence f IEIs int the future Make prpsals fr new undertakings

4 IEI Case Study Analysis Factrs affecting the prgress

5 IEI Case Study Analysis 11 case studies Purpse f IEIs: Enhance energy supply security Minimize the negative envirnmental impact f energy cnsumptin 11 cases, gvernment-based IEIs Mde Infrastructure Develpment Financing Mechanisms Regulatry Framewrk Research & Develpment Infrmatin Sharing Capacity Building Kyt Prtcl APP Energy Charter Treaty APEC 21 st Century REDI FutureGen INPRO GenIV KEDO+ GMS TAGP NAGPF

6 IEI Case Study Analysis Methdlgy Backgrund f IEI Missin Milestnes/Develpment Factrs affecting the prgress f IEI: Plitical Ecnmic Business (private / public) Scial Organisatinal (management f IEI)

7 Findings frm Case Study Analysis (1) The Rle f Energy Industry Energy industry and gvernment cperate ften asymmetrically-- in IEIs Cperatin amng bth these actrs is particularly imprtant fr the mre cmplex IEIs (energy infrastructure, regulatin, r finance) Case studies suggest certain trends: Envirnmental IEIs: driven by gvernment Infrastructure IEIs and Regulatry IEIs: driven by either party depending n circumstances R&D IEIs: driven by bth parties Unique Identity and Overlap The internatinal energy cmmunity perceives t much verlap amng current IEIs Much f this perceptin stems frm IEIs failure t understand and bradcast their wn identities An IEI may have similar gegraphic cverage, similar actrs, and similar bjectives, but it des nt necessarily verlap with anther IEI if its mechanisms are unique Such a situatin is in fact desirable, as having numerus appraches t and perspectives n cmplex prblem slving can increase verall rbustness thrugh diversity Examples: GenIV and INPRO: similar missin, different bjectives Kyt and APP: similar missin, different mechanisms and actrs

8 Findings frm Case Study Analysis (2) IEI Evaluatin and Amendment IEIs can stall if mechanisms are ineffective r bjectives becme irrelevant This can happen as the result f IEI implementatin envirnment changing r imperfect planning Examples: Energy Charter peer review mechanisms, Kyt Prtcl evlved frm UNFCCC Effective IEI Implementatin IEIs require prper targeting and apprach t have a gd impact Hwever, IEIs als depend d n effective rganizatinal management fr supprt and implementatin Three elements underlie strng rganizatinal management Strng senir-level cmmitment Access t sufficient financial resurces Effective crdinatin within the IEI (between natinal and internatinal levels, plitical and wrking levels, etc.) Lacking any ne f these three elements can result in zmbie IEIs Examples: GMS, ECT, TAGP, INPRO, APEC REDI

9 IEI Cherence Lking Frward

10 Future Energy Prblems Efficiency Technlgy penetratin Market develpment Cnsumer behaviur Energy efficiency infrmatin Nuclear Capital financing Fuel cycle management Prliferatin Security Guarantee f scial respnsibility Human capital Renewables Direct csts Indirect csts External benefits Energy transprtatin infrastructure Market refrm / energy industry restructuring Prject financing Plitical risk Institutinal framewrk fr cperatin Security Price vlatility Transprtatin bttlenecks Cmmunicatin / crdinated respnse Energy diversificatin Market equality

11 Energy efficiency Technlgy penetratin Current IEI cverage APP ASEAN-EE&CSSN APEC EWG App. f New Tech REEEP WB ASTAE SEFI Example prject activities APP Pwer Generatin and Transmissin Task Frce Cmbustin ptimizatin in cal-based pwer plant APP Steel Task Frce State-f-the-art clean technlgy handbk REEEP Credit Risk Guarantees and Financing Mechanisms fr ESCO-structured Energy Prjects WB ASTAE China, Energy Efficiency Financing Prject (P084874) Cmmnly used mdes Educatin and capacity building in the private sectr rganizing site visits and training sessins EE implementatin pilt prjects publishing cllabrative industrial best practices handbks Educatin and capacity building in the public sectr develping EE implementatin strategies fr particular sectrs training wrkshps fr bank lending staff fr EE prjects Financial mechanisms prviding lan guarantees t banks financing supply-side EE prjects establishing EE lending businesses within dmestic banks by leveraging prject lans

12 Which are mst suitable fr IEIs? Efficiency Technlgy penetratin Market develpment Cnsumer behaviur Energy efficiency infrmatin Nuclear Capital financing Fuel cycle management Prliferatin Security Guarantee f scial respnsibility Human capital Renewables Direct csts Indirect csts External benefits Energy transprtatin infrastructure Market refrm / energy industry restructuring Prject financing Plitical risk Institutinal framewrk fr cperatin Security Price vlatility Transprtatin bttlenecks Cmmunicatin / crdinated respnse Energy diversificatin Market equality

13 Where are the gaps? Efficiency Technlgy penetratin Market develpment Cnsumer behaviur Energy efficiency infrmatin Nuclear Capital financing Fuel cycle management Prliferatin Security Guarantee f scial respnsibility Human capital Renewables Direct csts Indirect csts External benefits Energy transprtatin infrastructure Market refrm / energy industry restructuring Prject financing Plitical risk Institutinal framewrk fr cperatin Security Price vlatility Transprtatin bttlenecks Cmmunicatin / crdinated respnse Energy diversificatin Market equality

14 Hw t fill these gaps Nuclear Security Capital financing Market equality Financial mechanisms fr develping ecnmies Fuel cycle management Financing mechanisms Infrastructure Prliferatin Regulatry framewrk Capacity building Human capital Capacity building thrugh internatinal academies Regulatry framewrk t allw strategic activity amng bth buyers and sellers

15 Recmmendatins (1) The Rle f Energy Industry When seeking t invlve the participatin f either gvernment r business actrs with an IEI f the ther, cnsider hw the ther party's csts and benefits will cmpare t ne's wn. While participatin f bth gvernment and business tgether is ften beneficial t the IEIs achieving its bjective thrugh leveraging each party's cmparative advantages, it is rare t expect returns n IEI participatin t be the same fr everybdy. y Unequal returns amng gvernment and business parties are nt a prblem as lng as participants realize that the returns are unequal.

16 Recmmendatins (2) Unique Identity and Overlap When planning r managing IEIs, be aware f similar endeavrs which may share actrs r bjectives particularly thse perating in the same area. Direct crdinatin f activities iti r knwledge bases may be beneficial amng such similar IEIs, but is generally nt necessary in fact, mre value may be added t reginal energy develpment by maintaining sme distance s as t preserve diversity. Instead, take this pprtunity t define a unique and specific identity fr yur wn IEI s as t better differentiate it frm ther similar endeavrs be that thrugh refinement f IEI bjectives r mechanisms and defend yur wn IEI's value t stakehlders. Crdinatin and cllabratin is an ptin, but such synchrnizatin might in fact be mre useful amng IEIs with similar bjectives and mechanisms but with different actrs r which perate in different areas, where direct cmpetitin fr resurces and ther supprt is less f an issue.

17 Recmmendatins (3) IEI Evaluatin and Amendment Built-in evaluatin and adaptatin mechanisms are imprtant fr IEI sustainability. Repeated evaluatin f the effectiveness f IEI mechanisms shuld be part f any IEI implementatin strategy, and IEI managers shuld be given the pwer t recmmend mdificatins n IEI mechanisms t the gverning bdy. Mrever, IEI bjectives shuld face a natural review by setting a terminatin date frm the utset which can be extended nly thrugh psitive actin f the IEIs gverning bdy. Such peridic, built-in mechanism and bjective evaluatins and mdificatins shuld apply t vluntary IEIs as well t ensure cntinued interest amng and usefulness fr actrs.

18 Recmmendatins (4) Effective IEI Implementatin Identify a "her" (r grup f heres) wh is willing t take the lead by guiding an IEI thrugh its lifecycle and champining the IEI's value when faced with challenges such as shrtages in financial resurce r wavering senir-level cmmitment. Such a her takes de fact managerial wnership f the IEI (whatever its legal wnership structure) and helps ensure fllw-thrugh and cnsistency in the IEI despite persnnel rtatin.

19 Recmmendatins (5) IEI Cherence and Future Gaps T be effective, these areas fr increased internatinal cperatin may require gal-riented member assciatins which d nt currently exist. Ecnmies with particular interest in these issues shuld cnsider identifying ther members wh culd bring mst cperative value t a new assciatin.

20 APERC

21 Differences between Kyt Prtcl and APP Principle Mechanisms Kyt Prtcl APP Cap and Trade based n the agreement under UNFCCC Jint Implementatin Emissins Trading CDM Infusin f advance technlgy in industry prmtin by members gvernment Market-driven Plitical Gvernment cmmitment Gvernment facilitatin Scial Glbal l level l under United Infusin f technlgy nt Natins restricted t any specific cuntry Organisatinal Envirnmental cncerns Envirnmental cncerns Reducing GHG emissins