Technical Working Group – EnergyEfficiency (TWG-EE)

KICK-OFF MEETING

Seite 1

KICK-OFF MEETING

Jakarta, 11 November 2009

TWG-EEu Programme of the kick-off meeting

�Round of introduction

�Presentation of national EE policy in Indonesia, MEMR

�Presentation by regional teams on current status in their region on EE: results of regional energy outlooks , specification of demands

�Presentation and discussion of methodology to develop regional Energy Master Plans

Seite 2

Energy Master Plans

�Presentation of initial stet of measures for Regional Master Plans, Feed-back from experts of the regions for design of the work/ action plan

�Discussion of work plan for the coming 6 months and beyond

�How to monitor progress and provide support from Germany/Netherland

Targets of TWG-EE

Short term (CASINDO):

�Development of regional energy master plans

�Agreement of implementation conditions with stakeholders (energy forum)

�Development of the capacities for implementation of the master plan

�Start-up implementation of the master plan activities

Medium term:

�Wide implementation of measures of the regional master plans�Wide implementation of measures of the regional master plans

�Solving of emergency gaps

� Improvement of energy saving awareness of stakeholders

�Replication to other regions

Long term:

�Reduction of the energy intensity and emission level

�Reliable and affordable energy supply for end consumers

�

Objectives of TWG-EE meeting

Targeted results of the meeting

�Understanding of the political context of regional energy master plans

�Understanding and agreement of structure and method of �Understanding and agreement of structure and method of development of regional energy master plans

�Development and agreement of working plan of the team

METHODS OF WORK OF TWG-EE

� Guideline for Master Plans

� Analysis of demands � inventory/ energy balance � planning of specific actions

� Discussion of approach with decision makers

� Stakeholder networking (supply, side, demand side, policy side)

� Assessment of actions of the master plan � detailed planning � preparation of implementation

� Start-up of first activities (non-technical) of the master plan � Start-up of first activities (non-technical) of the master plan

� Development of monitoring and evaluation procedure

� Regular meetings with TWG-EE members

– Comp 1: central location, 1 day, presentation of interim results from regions

– Comp 2: training on-the-job development of activities of the master plans

– Comp3: Visits regions and (up-to) 1 week detailed master planning

� Review of lessons and recommendations for MEMR

Master planningWhat is a master plan?

� General plan for the ‚best possible‘ development� Focusing the necessary measures, technical + non-technical, packaging to reach

results� Focusing the needs of the demand and supply site� Developing a realistic plan for the measures

– Technical recommendations– Recommendations for implementation (organization, administration)

Seite 6

– Recommendations for implementation (organization, administration)– Accompanying measures– Recommendations for financing

� Master plan shall be a guideline for decision makers� The master plan will not substitute feasibility studies for definite investment

projects� Follow-up analysis (feasibility studies, investment plan, promotion, information) will

be necessary

Master planning

Seite 7

Elements of Strategic Planning andManagement of the Energy Sector -5 step approach

Master planningExpected results of a master plan

� Immediate (short term):– Recommendations to the Government on support of necessary activities to improve the

heat energy sector– Guideline for technical and non-technical activities– Plan for necessary technical and non-technical activities to overcome most urgent

problems– Blueprint (example) for energy master plans of other municipalities

� Follow -up (medium term):

Seite 9

� Follow -up (medium term): – In-depth feasibility studies and investment plans – Rehabilitation of the energy system (installations in buildings, boilers)– Start of accompanying activities

� Long-term:– lower costs of the energy production and distribution – Saving of resources, emissions– Reliable and affordable energy

Master PlanningStakeholders

Case: Energy efficiencyagency

Seite 10

Master planningStructure of the master plan

� Introduction: information about the country, description of the climate, energy sector, etc.

� Basis for energy planning: targets, lessons learned in other countries, analysis of energy systems

� Present energy supply situation: most urgent problems, approach to overcome (technical, organization, financial)

Analysis of stakeholders (public, private)

Seite 11

� Analysis of stakeholders (public, private)

� Excurse to applicable technologies and methods

� Strategy and plan for participating institutions: analysis, specific problems and solutions

� Summary of common elements of activities of the master plan

� Resulting recommendations for common activities: political, legal, organizational, information

Common methodology for development of Sustainable Energy

Action Plan

Master planning

Example of a simplified energy balance

Demand for Inventory :

Master Planning

•Number of facilities, •categories, •energy use type

Grouping of energy use by consumers and fuels

Master Planning

Evaluation steps for EE measures

1. Defining and limiting the objective of theanalysis

2. Identifying the overall influence factors3. Structure, i.e. work-breakdown

Seite 15

3. Structure, i.e. work-breakdown structure

4. Cost estimates5. 5Cost calculation6. If necessary, detailing the work

breakdown structure and a loop to 2-5 , or

7. Conclusion

Preparation steps for EE measures (Problems and rea sons)

L ack o f de ta iled an d s truc tu red energ y

and ren ew ab le energ y po licy

M arke t fo r lo ca lly p roduced R E S

techno log ies is no t deve loped and no t

com pe titive

N on a va ilab ility o f financ ing so u rces fo r R E S pro jec ts

Lack o f cap ab ility to deve lop and

im p lem ent R E S p ro jec ts

Insu ffic ien t v iab le R E S in itia tives

A ppro ach to p lan and

Insu ffic ien t in fo rm ation abou t tech no log ies a nd

spe c ific app lica tio n

Lo w le ve l o f coord ina tion a nd e ffec tiveness o f

on go in g R E S in itia tives

La ck o f fram ew o rk and m arke t c on d it io n s an d th e w id esp read o f u til isa tio n o f ren ew ab le ene rg ies an d im p le m en ta tio n o f v iab le p ro jec ts

Insu ffic ien t v iab ility o f loca lly p ro duced R E S

techno log ies

Lo w q ua lity o f p ro jec t app lica tions o r bus iness

p la ns

Lack o f in s titu tiona l capac ities an d

coo rd ina tion fo r sup po rt and

im p lem enta tion o f R E S p ro jec ts

P R O B LE M

Master Planning

Seite 16

U nba lance d e nerg y ta r iff s truc tu re , w h ich do es

no t s tim u la te use o f R E S

U nde ve lop ed env ironm enta l p ro tec tio n

and reso urces sav ing appro ach

A ppro ach to p lan and use R E S is no t

app lica tion o rien te d (to o sc ien tific ap proach)

spe c ific app lica tio n op tions

on go in g R E S in itia tives

Lack o f regu la tion o f energ y a nd em iss ion

s tandards

P oor ro le o f m ed ia to rs fo r R E S in it ia tives

(assoc ia tio ns , N G O s, un ive rs it ies ,

m u n ic ipa lities ), Lack o f aw aren ess

E nerg y la w Lack o f secondary leg is la tion

and re gu la tion fo r m ost f ina l e nerg y con sum er

sec to rs

techno log ies p la ns

Lo w le ve l o f na tion a l and in te rn a tion a l

coopera tio n , k now -ho w trans fe r and n e tw ork ing

M iss in g na tio na l R E S s tra teg y fo r the ta rge te d deve lopm ent o f spec ific

sub-sec to rs

Lack o f know -ho w on bus in ess and m arke t

deve lopm ent

Lessons o f p rev io us p ro jec ts (fa ilu res ,

su ccess) no t le a rn ed

R E AS O N

E nerg y p rogram m es o f the G overnm ent a re n o t

backed w ith fin anc ing sources

E conom ic s itua tion o f the cou n try is insu ffic ien t

Lack o f access to techno log ica l in fo rm ation

L ack o f sk illed p ro fess iona ls in the

energ y sec to r

Master Planning

Design of EE measuresObjectives

Reduction of

� the need for subsidies

� environmental pollution

Seite 17

� environmental pollution

� expenses for fuel

� the overall fuel consumption of the relevant sectors

� ....

Preparation steps for EE measures (Objectives and a ctions)

Take th e ren ew ab le en erg y in to

co ns id e ra tio n in th e re levan t leg is la tio n

E stab lish an assoc ia tion fo r p rom otion o f

Inc reased capab ility o f lo ca l

m anu fac ture rs o f R E S eq u ip m en t

Im pro ved finan c ia l fram ew ork

co nd ition s fo r th e sup po rt o f R E S

S u ff ic ien t in fo rm atio n b as is o n techn o lo gy, p o ten tia l

an d ap p lica tio n m etho ds

E stab lish ed ins titu tio na l

n e tw ork ing and coo pera tion

Activa te the research po ten tia l o f techn ica l

P repar ing a c lear e nerg y s tra tegy back ed-up b y

U tilisa tion o f renew ab le energy so u rces unde r v iab l e techn ica l and econom ic fram ew ork cond itions

E stab lish an Agenc y fo r R E S "

O B JE C TIV E S

S ta te G uarante es to bank s fo r loan p ro vis ion

Master Planning

Seite 18

fo r p rom otion o f rene w ab le tech no log y

po ten tia l o f techn ica l un ivers ities fo r R E S

p ro jec ts

s tra tegy back ed-up b y an E ne rg y Law

C rea te an R E S ne tw ork In teg ra tio n o f research

institu tions

Im p lem enta tio n o f app ro pria te ,

consum ption -based ta riff sys tem

S upport the se tting o f N ationa l R E S leg is la tion

E stab lish a tes t fac ility fo r each loca l

m anufactu red type o f equ ipm en t

S tim u la te loca l banks to p rov ide (so ft) loans fo r

ene rg y sav ing equ ipm ent

m anu fac turers

Increase know -how trans fer, in fo rm ation on R ES techn o log ies and

im p lem enta tion m ethods + es tab lish in te rna tiona l

co-ope ra tion

A ssessm ent o f the po ten tia l fo r use o f rene w ab le energ y

sources

R E S "

Im p lem en t en viron-m en ta l p ro tection and the use o f renew ab le

energ y in na tiona l leg is la t ion

A ss is t bus iness p lann in g fo r loca l p ro duc tion o f

R E techno log ies

T A X deduction fo r the loca l m anu fac turers o f

renew a b le ene rg y techno log ies .

bank s fo r loan p ro vis ion to inves tors in la rger

renew a b le ene rg y p ro jects (geo therm al,

so la r,... )

Implementation

� Institutional framework conditions

� Internal organisation (management, tasks and responsibilities)

� Involvement of external assistance (if necessary)

Master Planning

Seite 19

� Information, communication, reporting

� Planning of facilities and PIU (Project/ Programme Implementation Unit)

Master PlanningCriteria for design and selecting of projects and measures� Urgency of solving the identified problems (emergency measures)

� Impact on energy consumption behavior

� Cost effectiveness of measures

� Exploiting synergy effects with other ongoing activities in energy sector

� Sustainability of impacts and results

� Know-how and capacity building of the recipient

Seite 20

� Opportunity for national and international networking

� Demonstration potential/ scope for replication

� Attractiveness of demonstration and investment projects for third party financing and other support

� Opportunity for developing replicable modules

� Readiness for implementation (realizing the expected results as soon as possible)

� Long-term energy saving potential (e.g. in terms of MWh/yr)

Master Planning

� The purpose of the evaluation and monitoring process is to:

– analyse whether the project/ programme are effective and the measures are efficient;

– ensure that the programmes and measures are implemented in the best way

– adjust the programmes and measures to achieve the best results

– address the policy makers to adjust policies accordingly.

Seite 21

– address the policy makers to adjust policies accordingly.

Municipal/ Regional energy efficiency

Tasks of regional CASINDO experts

6 months horizon:

� Up-date of energy balance and inventory of energy consumer groups

� Development of stakeholder network

� Discussion of indicative list of EE measures with stakeholders

� Identification of additional gaps and measures to overcome

� Prepare regional energy forum (workshop, expert meetings)

� Prepare and participate in capacity building measuresPrepare and participate in capacity building measures

18 months horizon:

� Sharpen the measures of the regional master plan

� Promotion of the approach and elements of the master plan to decision makers and sponsors

� Preparation of the implementation of the measures in phases

STAKEHOLDER ANALYSIS

� Public institutions

� Associations, NGOs,

� Manufacturers of equipment/ systems, engineering companies and consultants

� Energy utilities

Consumer groups

� Institutional, public� Institutional, public

� Private: Households, commercial/ service, industry

� description of their role and interests in participation EE, approach them Who is it? What is his influence in Energy?

� Is he a driver or just a recipient of the activities?

TASK OF TWG-EE: INVENTORY of EE

� Household sector up-date

� Industry sector up-date

� Commercial service sector up-date

NEW ! Public sector development

� Street lighting� Street lighting

� Water supply

� Buildings/ schools

� Buildings / hospitals

� Buildings/ administrative

– Energy demand, type of energy, for which purpose

Horizontal (national) measures

Regulatory measures

– Reduction of subsidies for kerosene

– Structured subsidies for LPG use

– Improvement of clear purchase rules for poorer people

– Increase grid access and reliability (especially NT and Papua)

Push measures for EE

� Minimum standards for EE

– boilers � industry– boilers � industry

– transformers � PLN and industry

– electric appliance � to households

Pull measures for EE

� Development of loan facility for small EE/RE

� Clear formulation (and assessment of effects) of tax deduction and import duties reduction

� Development of capacities for Energy Audits

� Enforcement of local production of EE/RE equipment (development/ adjustment of technologies)

� Wide implementation of EA scheme � capacity building

Recommended measures for industry sector

Demand side measures

� Industrial boiler replacement

� Variable speed drives

� Project development assistance

� Promotion of EE applications: cooling, lighting, energy automation systems

� Promotion of EE in tourist sector: EE in hotels

� Supply side measures

� CHP (for industrial sites with steam, heat demand) and tri-generation (including cooling)

� Waste to energy

Also applicable for commercial and service sector

� Waste to energy

� Change kerosene consumption to LPG especially in food production

� Project development assistance for RE

� Solar applications for drying and industrial food processing

� Solar application for hot water production

� Use of geothermal application for facilities with heat/steam demand

� Use of biofuels / biomass (Jatrova biodiesel) for running of gen-sets

� Biogas use from sugar plantations (extension by 300%) and animal production

� Diesel to coal for decentral power generation

� Use of small hydro for decentral local energy supply

Recommended measures for household sector

� Demand side EE measures:

– Improved burners for LPG

– Information on safe use of LPG

– Package of measures for promotion of better cooking practices (technology, information, local manufacturing, distribution channels, subsidy schemes (?))

– Replacement of traditional biomass for cooking

� Supply side EE measures

– Use of biogas for lighting

– Production of biogas for cooking/gen-sets– Production of biogas for cooking/gen-sets

– Solar water heaters or LPG for replacement of electric heaters

– Use of small scale PV, replacing kerosene

� Regional:

– Java: improvement of cooking methods and techniques

– Java, Small Hydro: development of a scheme for IPP and local energy supply services (private, with support from gov.)

– Demand to promote actions according to income level !

Recommended measures for municipalities

�EE street lighting

�EE public buildings (administrative, schools, hospitals)

�EE urban public transport

�EE in public water supply systems

Development of EE strategiesRecent European energy efficiency policy

It has long been recognised that energy savings and improved energy efficiency offer significant cost-saving opportunities, and they are the biggest short-term potential for cost-effective reductions in greenhouse gas emissions, while at the same time offering a valuable contribution to improved security of energy supply. A string of EU actions since the Green Paper “Towards a European strategy for the security of energy supply” issued in 1997 includes:

Seite 30

security of energy supply” issued in 1997 includes:

� Programmes providing funding for research and demon stration projects , including technical development (currently it is the 8th Framework Programme) and designed to build up capacity and demonstrate what could be achieved (a range of actions under the Intelligent Energy Europe programmes),

� Fuel-efficiency agreements with car manufacturers and importers

Case: Overview of energy efficiency policy in Europ e

Overview of Directive in

place or proposed to

enhance

energy Efficiency on the

Member State level

Development of EE strategies

Seite 31

Development of EE strategies

� Energy efficiency performance standards and labelling requirements (mainly appliances), eco-design directive incorporating those standards in the design of certain ranges of products

� Directive on end-use energy efficiency and energy s ervices aiming to increase energy efficiency all along the supply chain right up to the retail stage when energy is sold to the end-user, by setting indicative targets and drawing up national action plans, imposing public sector to take energy efficiency into account in procurement, putting a supply-side obligation for energy distributors and retailers to offer efficiency improvement measures to their customers, and progressing towards a harmonised measurement system for energy savings.

Seite 32

customers, and progressing towards a harmonised measurement system for energy savings.� Mechanisms promoting energy efficiency in buildings� Promotion of highly efficient cogeneration of heat and power

Inevitably, energy efficiency is part of the EU climate policy, with the Emission Trading Scheme being the biggest-ever example of using a market-based instrument to address an environmental problem.