ee technologies, ipeec

ExCo 05 // 20-22 September 2011

Author

Presentation CEM

02

Fe

bru

ary

15

, 2

01

1

a

Cle

an E

nerg

ies a

nd E

nerg

y

Effi

cien

cy Te

chnolo

gie

s O

CTO

BER

4-5

, 20

11

, Seville

Panel III: Energy Efficiency

Technologies

Amit Bando Executive Director, IPEEC


IPEEC is a High Level International Forum

Provides global leadership on energy efficiency by identifying and facilitating government implementation of policies and programs that yield high energy-efficiency gains.

Aims to promote information exchange on best practices and facilitate initiatives to improve energy efficiency.

Formally established in 2009 at the G8 summit in L'Aquila, Italy and resulting from the Heiligendamm Dialogue Process.

2

ExCo 05 // 20-22 September 2011IPEEC is an autonomous entity

3

The IPEEC Secretariat is located in Paris, France

Members account for over 75% of world GDP and energy use.

Italy

Russia

Japan

Republic of KoreaChina

India

Australia

United KingdomFrance

Canada

USA

Mexico

Brazil

Germany

EU

ExCo 05 // 20-22 September 2011Modes of Cooperation: Structure

and Steps

Type of Engagement

Types of Organizations

National Governments

Intergovernmental Organizations

International Agencies

Private Sector Entities

NGOs and Community

Groups

Executive & Policy Comm. Meetings

Observer/Member

Observer/Member Observer Invitee Invitee

Task Groups Participant Participant Observer/Participant

Participant Participant

Invitees are present on an ‘’event-only” basis; invitees could become participants &/or members.All participants are not necessarily members.Observers are expected to move to member &/or participant status in a time-bound manner.

International Partnership for Energy Efficiency Cooperation 4

ExCo 05 // 20-22 September 2011Historical Trends in Energy Use

5

0

20

40

60

80

100

120

140

160

180

1973 1980 1990 2000 2006

EJ

Actual energy use Energy savings due to efficiency improvements Energy efficiency improvements

Actual energy use

63 %

Hypothetical energy use without energy efficiency improvements

Savings

Source: IEA

ExCo 05 // 20-22 September 2011Energy Efficiency: An Untapped

Energy Resource.

Investing in energy efficiency (EE) presents a unique combination of advantages

Increased energy security, Sustainable economic growth, and Environmental protection – climate change benefits.

Implementation of EE policies could result in nearly 56% of avoided GHG emissions by 2050 (IEA,2009)

more than two-third of these GHG reductions could come from demand-side (end-use) EE interventions across different sectors in developing countries.

6


26

28

30

32

34

36

38

40

42

2010 2015 2020 2025 2030

Gt

Reference Scenario

450 Scenario

Energy Efficiency provides half of CO2

emissions reduction in the 450

Scenario

Full implementation of the IEA 25 energy efficiency recommendations is essential to achieve the 450 scenario.

End-useefficiency

Power plants

Renewables

BiofuelsNuclear

CCS

End-use potential

10%

10%3%

20%

5%

52%7.2 Gt


Worldwide implementation could save over 8 GtCO2/yr by 2030, equal to 20% of global reference scenario energy related CO2 emissions in 2030

2007 2015 2020 2025 2030

26

28

30

32

34

36

38

40

42

450 Scenario

Reference Scenario

OECD+

Other Major Economies Othe

r Countries

3.8 Gt

13.8 Gt

Nuclear– 10%

CCS – 10%

Efficiency – 45%

Renewables & biofuels – 21%

Nuclear– 13% CCS – 20%

Efficiency – 67%

Renewables & biofuels – 19%

Nuclear – 8% CCS – 6%

Efficiency – 55% Renewab

les & biofuels – 34%

Nuclear– 9%

World By region

Abatement by technology, 2030

Efficiency – 57%

Efficiency measures account for 2/3 of the 3.8Gt abatement in 2020, with much of this outside the OECD+ region

ExCo 05 // 20-22 September 2011Energy Efficiency: An Untapped

Energy Resource.

Despite the numerous advantages offered by investments in energy efficiency a significant potential remains untapped due to the underdeveloped state of energy efficiency investment delivery mechanisms.

IPEEC members, both developed and developing, share common interests in improving their EE performance

Abundant potential for international cooperation among them Will contribute to improvement of energy efficiency at the

global level

IPEEC believes that developed countries need to play an important role in cooperation with developing countries – accelerating

Dissemination and transfer of best practices & efficient technologies

Capacity building in developing countries9

ExCo 05 // 20-22 September 2011Transition Technologies, Products and

Services Follow Parallel Journeys

10

Basic research

Individual innovators

General regulation

Applied research

Early demonstratio

n

Full demonstratio

n

Marketed product

Warranted product

Small group: start-up /unit in a

company

Medium-size operation

Large scale operation

Demonstration & sample

distribution

Early adopters &

niches

Rational economic purchase

Technology & Market

evaluation

General regulatio

n

Specific regulatio

n

Technology Journey

Company Journey

Market Journey

Regulation Journey

Principle Concept Validity Viability Value Quality

Own capital Venture Capital Revenues Profits

Awareness Positive Potential Market Pull Feedback

General regulatio

n

General regulation

NegativeOften unintended Neutral Positive Positive Neutral or positive


Financing Mechanisms Require Policy Support

11


Implementing Financing Mechanisms

12

Type of Financing mechanism

Approaches

Tax incentive Accelerated depreciation, Tax deductions, Tax credits, Tax reductions

Subsidies Grant, Subsidy, etc.

Lending programs Bank window, Low-interest lending, Collateral-free lending, etc.

Performance contracting Guaranteed savings, Shared savings, etc.

Carbon Financing CDM funding

ExCo 05 // 20-22 September 2011An Array of Financing Agencies

Exist

13

Financing Agency Types

1. Banks National banks, Regional banks,

2. Credit Unions Non Profit organizations, Defined group of people

3. CDFI (Community development financial institutions)

Non profit lenders (Government, foundation, private funds to target groups)

4. Utilities Public utilities, Private utilities

5. Government lenders Central government lending, State government lending

6. Specialized lenders Non banking finance companies

ExCo 05 // 20-22 September 2011Policy Support Creates an

“Enabling Environment”. EE indicators are critical for benchmarking,

monitoring, reporting, analyzing and evaluating investment portfolios.

Current EE indicators are inadequate Often tied to energy intensity Lead to wrong targets and increase risk premiums

Harmonize standards & labels and codes globally/regionally

Could increase market size Promote economies of scale

Develop and implement energy managers’ accreditation and certification programs

14


15

Use questionnair

e, surveys and focus groups to inventory task group

resources to be adapted for Event

Finance

Utilities

Industry

Indicators

Sustainable Cities

Appliances Determine country &

sector needsDefine format,

activities and contents of workshop, via inputs

from stakeholders

Establish links to other

relevant initiatives & resources

Event

IPEEC Task force

IPEEC’s Capacity Building & Technical Assistance Platform

ExCo 05 // 20-22 September 2011IPEEC’s Policy Assistance Network

Strengthen EE policy design and implementation through action plans developed during capacity building events.

Undertake specific research & studies that codify useful program experience.

Support intra & inter regional cooperation through peer learning & dialogue.

Promote regional knowledge management hubs that leverage existing regional & IPEEC resources. 16


Author

Presentation CEM

02

Fe

bru

ary

15

, 2

01

1

Amit Bando,Executive Director

Thank [email protected]