Technical Working Group Energy Efficiency (TWG-EE) KICK-OFF MEETING. Jakarta, 11 November 2009
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1 Technical Working Group Energy Efficiency (TWG-EE) KICK-OFF MEETING Jakarta, 11 November 2009 Seite 1
2 TWG-EE u 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 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 Seite 2
3 Short term (CASINDO): Targets of TWG-EE 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 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
4 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 development of regional energy master plans Development and agreement of working plan of the team
5 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 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
6 Master planning What 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) 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 Seite 6
7 Master planning Seite 7
8 Elements of Strategic Planning and Management of the Energy Sector -5 step approach
9 Master planning Expected 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): 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 Seite 9
10 Master Planning Stakeholders Case: Energy efficiency agency Seite 10
11 Master planning Structure 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) 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 Seite 11
12 Master planning Common methodology for development of Sustainable Energy Action Plan
13 Master Planning Example of a simplified energy balance Demand for Inventory: Number of facilities, categories, energy use type
14 Grouping of energy use by consumers and fuels
15 Master Planning Evaluation steps for EE measures 1. Defining and limiting the objective of the analysis 2. Identifying the overall influence factors 3. Structure, i.e. work-breakdown structure 4. Cost estimates 5. 5Cost calculation 6. If necessary, detailing the work breakdown structure and a loop to 2-5, or 7. Conclusion Seite 15
16 Master Planning Preparation steps for EE measures (Problems and reasons) L a c k o f fra m ew o rk a n d m a rk e t c o n d itio n s a n d th e w id e s p re a d o f u tilis a tio n o f re n ew a b le e n e rg ie s an d im p le m e n ta tio n o f via b le p ro je c ts P R O B L E M L ac k o f d e taile d an d s tru c ture d e n erg y a n d ren ew a b le e n erg y p o lic y L a ck o f in stitu tio n a l c ap a c ities an d c o o rd in a tio n fo r su p p o rt a n d im p lem e nta tio n o f R E S p ro je cts L a ck o f c ap ab ility to d e velo p a n d im plem e nt R E S p ro jec ts N o n a vailab ility o f fin a n cin g so u rce s fo r R E S pro je cts M a rke t fo r lo c a lly p ro d u c ed R E S tec h n o lo g ie s is n ot d e velo p e d a n d n o t c o m p e titive L o w le vel o f c o o rd in a tio n a n d e ffe ctiveness o f o n g o in g R E S in itia tives In suffic ie n t via b le R E S in itia tives A p p ro a ch to p la n a n d u s e R E S is n o t a p p licatio n o rie n te d (to o scie n tific a p p ro a c h ) In sufficie n t in fo rm a tio n a b o u t te c h n o lo g ie s a n d spe cific a p p lic a tio n o p tio n s L o w q u a lity o f p ro je c t a p p lic a tio n s o r b u s in e s s p la n s In s u fficie n t via b ility o f lo cally p ro d u c e d R E S te c h n o lo g ie s E n e rg y la w L a ck o f secondary le g is la tio n a n d re g u la tio n fo r m o st fin a l e n e rg y con sum e r s e cto rs M is sin g n a tio n a l R E S stra te g y fo r th e ta rg e te d d e v e lo p m e n t o f s p e cific s u b -s e cto rs P o o r ro le o f m e d ia to rs fo r R E S in itia tive s (a s socia tio n s, N G O s, u n ivers itie s, m u n icip a litie s ), L a ck o f a w a re n e s s U n d e ve lo p e d e n viro n m e n ta l p ro te ctio n a n d re so u rces savin g a p p ro a ch L o w le ve l o f n a tio n a l a n d in te rn a tio n a l coopera tio n, k n o w -h o w tra n sfe r a n d n e tw o rk in g L a ck o f sk ille d p ro fe s sio n a ls in th e e n e rg y secto r E n e rg y p ro g ra m m e s o f th e G o vern m e n t a re n o t b a c k e d w ith fin a n c in g sources E c o n o m ic situ a tio n o f th e c o u n try is in s u ffic ie n t L a ck o f k n o w -h o w o n b u s in e s s a n d m a rk e t d e velo p m e n t L a ck o f a cc e ss to te chno lo g ic a l in fo rm a tio n L a ck o f re g u la tio n o f e n e rg y a n d e m is sio n s ta n d a rd s U n b a la n c e d e n e rg y ta riff stru ctu re, w h ic h d o e s n o t s tim u la te u se o f R E S L e ss o n s o f p re v io u s p ro je c ts (fa ilu re s, su ccess) n o t le a rn e d R E A S O N Seite 16
17 Master Planning Design of EE measures Objectives Reduction of the need for subsidies environmental pollution expenses for fuel the overall fuel consumption of the relevant sectors... Seite 17
18 Master Planning Preparation steps for EE measures (Objectives and actions) U tilis a tio n o f re n ew ab le e n e rg y s o u rc e s un d e r via b le te c h n ic a l a n d e c o n o m ic fra m ew o rk c o n d itio n s O B J E C T IV E S T a k e th e ren ew a b le e n e rg y in to co n s id e ra tio n in th e re le va n t le g isla tio n E s ta b lis h e d in s titu tio n al n e tw o rk in g a n d c o o p e ra tio n S u fficie n t in fo rm a tio n b asis o n te c h n o lo g y, p o te n tial an d a p p lic a tio n m e th o d s Im p ro ve d fin a n c ial fra m ew o rk c o n d itio n s fo r th e s u p p o rt o f R E S In c re a s e d c a p ab ility o f lo c a l m a n u fa c ture rs o f R E S eq u ip m e n t P re paring a clear e nerg y s trate g y back ed-up b y an E ne rg y L a w E stab lis h an A g e nc y for R E S " A c tiva te th e researc h po te ntial of tech nica l un iversities for R E S p ro jects S tate G u ara nte es to b ank s for lo an p ro vis ion to investors in la rg er re ne w a ble en e rg y p roje cts (geo th erm al, s ola r,... ) E s tab lis h a n association for p rom otion of rene w a ble te ch nolog y S up p ort the se ttin g o f N ationa l R E S le gis lation Im plem enta tio n of app ro pria te, co nsum ption -based tariff s ys tem In crea se k n ow -h o w transfer, info rm ation o n R E S techn olo gie s an d im plem e ntation m ethods + esta b lish in tern ationa l c o-ope ra tio n S tim ulate local b a nks to p ro vide (s oft) lo an s for ene rg y sa ving equ ipm ent m anu facturers E s tab lis h a test fa cility fo r each local m a nufa ctu re d type of eq u ipm en t Im plem en t en viro n- m en tal prote ction a nd the u se of ren e w ab le en erg y in n ationa l leg is latio n C rea te a n R E S n e tw ork Integ ra tio n of re se arch in stitution s A ss essm ent of th e po te ntial for u se o f rene w a ble e n erg y s ourc es T A X d edu ctio n for the local m anu facturers of re ne w a ble en e rg y techno log ies. A ss ist b usine ss plan n in g for lo ca l p ro ductio n of R E techno log ies Seite 18
19 Master Planning Implementation Institutional framework conditions Internal organisation (management, tasks and responsibilities) Involvement of external assistance (if necessary) Information, communication, reporting Planning of facilities and PIU (Project/ Programme Implementation Unit) Seite 19
20 Master Planning Criteria 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 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) Seite 20
21 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
22 Municipal/ Regional energy efficiency
23 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 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
24 STAKEHOLDER ANALYSIS Public institutions Associations, NGOs, Manufacturers of equipment/ systems, engineering companies and consultants Energy utilities Consumer groups 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?
25 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 Water supply Buildings/ schools Buildings / hospitals Buildings/ administrative Energy demand, type of energy, for which purpose
26 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 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
27 Recommended measures for industry sector Also applicable for commercial and service 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 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
28 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 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!
29 Recommended measures for municipalities EE street lighting EE public buildings (administrative, schools, hospitals) EE urban public transport EE in public water supply systems
30 Development of EE strategies Recent 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: Programmes providing funding for research and demonstration 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 Seite 30
31 Development of EE strategies Case: Overview of energy efficiency policy in Europe Overview of Directive in place or proposed to enhance energy Efficiency on the Member State level Seite 31
32 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 services 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. 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. Seite 32
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