gsep: annual report 2010-2011

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ANNUALACTIVITY REPORT2010–2011

REACHING OUTTO A GLOBAL FUTUR

F o r m e r l y e8



The Global SustainableElectricity Partnership —

which comprises the

top leading electricitycompanies from theglobal electricity sector —promotes sustainableenergy developmentthrough electricity sectorprojects and humancapacity building activitiesin developing nations

worldwide.

In June 2011, thee8 adopted

its new name, Global Sustain-able Electricity Partnership. Thechange reflects the openingof the organization’s member-ship to countries in transitionand our commitment to a trulyglobal mission of promotingsustainable energy development.

The Global SustainableElectricity Partnership wouldlike to welcome Eletrobras(Brazil), Eskom (South Africa)and State Grid Corporation ofChina (China) to the group.

Note: The namee8 is used inthe report to describe activitiesconducted in 2010-2011 beforethe adoption of the new name.

Our mission is to playan active role in globalelectricity issues within

the international frameworkand to promote sustainableenergy development. Thisdiverse international groupoffers electricity sector skillsand practical competenciesin electricity generation,transmission and distribution.With international field-provenexpertise in the planning,management, design, operationand maintenance of energyfacilities, member companiesassist and share theirknow-how in the effectiveimplementation of sustainableenergy development withcounterparts in developingand emerging countries.

American Electric PowerUnited States

Duke EnergyUnited States

Électricité de FranceFrance

EletrobrasBrazil

ENEL S.p.A.Italy

EskomSouth Africa

Hydro-QuébecCanada

JSC “RusHydro”Russia

Kansai Electric Power Company, Inc. Japan

RWE AGGermany

State Grid Corporation of ChinaChina

Tokyo Electric Power Company, Inc. Japan

GLOBAL SUSTAINABLEELECTRICITY PARTNERSHIP

MISSION STATEMENT MEMBER COMPANIES

Con t e n t

1 Message From the Chair

2 Tokyo Summit

4 International Collaboration

5 COP16/MOP6: CancunClimate Change Conference

6 Annual Theme

8 The Education forSustainable EnergyDevelopment Programme

11 Argentina – PatagoniaChorriaca Wind-DieselHybrid and CochicoMicro-hydro Project

12 Maghreb Waterand Electricity Project

13 Human CapacityBuilding Initiatives

14 Financing SustainableElectrification Dialogues

16 Success factors

17 Activities Worldwide



Mr. Michael G. MorrisChair 2010-2011Chairman and CEO, American Electric Power Company (AEP)

MESSAGEFROM THE CHAIR

It is a great honour for me to act as the e8 Chair for 2010-2011.This has been an exciting year for us. We have been working hardto increase our membership, reaching out to our counterparts inother countries in order to learn more from other organisations. Asa result, our membership has expanded by 40%, a progress we areparticularly proud of: Eletrobras (Brazil), Eskom (South Africa) andState Grid Corporation of China have joined us as full members, andComisión Federal de Electr icidad (Mexico) has joined as partner.

The e8 has now become the Global Sustainable ElectricityPartnership. Our new name and logo, which we unveil withthis report, reaffirm our mission to promote sustainable energydevelopment on a truly global scale.

Strengthening Public-Private Partnerships to Accelerate GlobalElectricity Technology Deployment was our annual theme for 2010-2011. Our successes as the world’s largest power providers areincreasingly related to our ability to meet environmental responsibilitieswith innovative technologies, financing and public policies, as well assynergies with public, private and civil society members.

The Global Sustainable Electricity Partnership is uniquely positionedto demonstrate how clean technologies can be deployed to provideaffordable, reliable electricity to those who don’t enjoy the benefits ofthis form of energy and, at the same time, reduce risks from climatechange. Our projects—those that are already successfully implementedand the one we just launched in the Argentina highlands—are atestament to this. Moreover, our Financing Sustainable Electrification

Dialogues Programme with finance and energy ministers from55 countries (by year end) has helped them elaborate action plans tomake them more attractive to technology vendors, project developersand banks by reducing their investment risks.

In line with this year’s theme, we and UN-Energy conducted a globalsurvey to identify the elements common to successful public-privatepartnerships and developed a report outlining the best practices. Webelieve that countries that establish technology deployment planswith enabling public policies, in an attractive financial risk-rewardatmosphere created by these partnerships, are likely to achieve theMillennium Development Goal of eradicating extreme poverty by

making significant progress towards universal access to energy sources.We co-convened a globally webcasted meeting with UN-Energy atthe United Nations Headquarters in New York City where manypractitioners and country ambassadors planned how to implementthese recommendations.

Through our actions, projects and activities, we are proud to take aleading role in defining a new approach for electrifying this world andwe look forward to working together with other partners to promotesustainable energy development.

STRENGTHENING PUBLIC

PRIVATE PARTNERSHIPTO ACCELERATE GLOBAELECTRICITY TECHNOLO

DEPLOYMENT

Mr. Michael G. MorrisChair 2010-2011Chairman and CEO,American ElectricPower Company (AEP)

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Chairmen, repre-sentatives, and guestsat the 2010 TokyoSummit, Tokyo, Japan,May 26, 2010.

Top row fromleft to right:Juergen Grossman(RWE – Germany),Liu Zhenya (SGCC –China), Björn Stigson(WBCSD), Marie-JoséNadeau for ThierryVandal (Hydro-Québec– Canada), FranciscoSantoyo Vargas forAlfredo Elias Ayub(CFE – Mexico), JoséAntonio Muniz Lopes(Eletrobras – Brazil),Shosuke Mori

(Kansa i – Japan).Bottom row fromleft to right:Piero Gnudi (Enel –Italy), TsunehisaKatsumata (TEPCO –Japan), Michael Morris(AEP – USA), BrunoLescoeur for HenriProglio (EDF – France),Keith Trent forJames E. Rogers(Duke Energy – USA).

Our Annual Summit is a unique platform forthe international electricity industry, allowingfor a yearly high-level meeting and discussionsamong heads of the major leading electricitycompanies in the global electricity sector andtheir guests. The Chairmen and CEOs of theseinternational power utility leaders gather toexchange opinions and advance the debate onsuch key issues as the role of the electricitysector in the fight against climate change,technology cooperation, security of supply andsustainable development.

The 2010 Annual Summit took place in Tokyo, Japan,on May 26, 2010. Joined by the leaders of the majorelectricity companies in emerging economies, SGCC(China) and CFE (Mexico), our Chairmen and theirguests exchanged views on the Smart Use of Electricity ,the 2009-2010 year’s theme, and on the future ofan international agreement on climate change. Thediscussions were moderated by two distinguishedexperts in the international energy field, namely

Dr. Hiroshi Komiyama, Chairman of the MitsubishiResearch Institute, Inc. and President Emeritus of theUniversity of Tokyo, and Mr. Björn Stigson, Presidentof the World Business Council for SustainableDevelopment (WBCSD).

In order to move forward the debate on the role ofthe electricity sector in climate change mitigation,the Chairmen issued the Tokyo Summit Declaration,offering a list of recommendations to maximize thebenefits of the Smart Use of Electricity . The Chairmenalso reaffirmed the fundamental role of electricity inbuilding a greener and more sustainable low-carbonsociety and reiterated their commitment to closelycooperate with public and private partners for thedevelopment and deployment of innovative solutionsto reduce society’s carbon footprint.

With a vision to further enhance global cooperation,the Chairmen and their guests also signed a Statementof Collaboration. With a view to reaching out tomajor emerging countries, the Chairmen welcomedEletrobras (Brazil), as a new member, and CFE(Mexico), as a partner. All these leaders of majorcompanies engaged in the generation, transmissionand supply of electricity across the globe affirmedtheir dedication to serve communities through thedevelopment and deployment of advanced low- andnon-emitting technologies to all countries.

ELECTRICITY LEADERS SHARING VIEWSON GLOBAL ENERGY ISSUES

TOKYO SUMMIT

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THE CHAIRMEN RECOMMEND THE FOLLOWING INITIATIVES TO MAXIMIZE THE BENEFITS OFTHE SMART USE OF ELECTRICITY :

1. Create the conditions to favour a shift towards a low-carbon electricity generation mix, taking intoaccount region-specific factors, including existing power plants, economic viability, availability of

energy resources and environmental impacts;

2. Support the development of existing and new lower-carbon generation technologies such as

advanced coal, new generation nuclear plants and all renewables, including large hydro and carbon

capture and storage (CCS) technologies. Substantial investments in mid- and long-term emission

efficient technologies are needed to decarbonise electricity;

3. Provide incentives for a shift towards electricity in final energy uses in all sectors of society wherever

it is more efficient and environmentally friendly, including the transportation, industrial and residential

sectors;

4. Recognize the enormous emissions mitigation potential of technologies such as electric vehicles

(EV), smart grids and heat pumps:

a. Support the development of international standards for electric vehicles offered by manufac-

turers, and share region-specific information about clients’ needs, public acceptance issues,

technological developments, data privacy issues and business models for EV charging infra-

structures. Also, policies that will accelerate the number of electric vehicles, including subsidies

for the purchase of such vehicles, should be encouraged;

b. Support the development of the smart grid concept and its deployment as a more reliable,

flexible, optimal, customer-centred, economical and environmentally responsible electric power

transmission and distribution system;

c. Implement heat pumps in various fields to mitigate CO2 emissions and improve environmental

conditions in general;

5. Inform clients about their electricity usage and ways to improve efficiency to promote their acceptance

of energy efficiency programs;

6. Encourage governments to create policies and adopt measures aimed at suppor ting the smart use

of electricity, including appropriate time frames to implement promising technologies at different

stages of deployment, efficient pricing that stimulates investment in energy efficiency and long lead

time of efficient technologies, promotion of public acceptance of CO2 mitigation technologies and

public-private partnerships in research, development & deployment.




From the left:Frank Kitzantides (IEC),Chantal Guimont(Hydro-Québec),Stephan Voit

(RWE Effizienz),Celso RibeiroBarbosa de Novais(Itaipu Binacional,Eletrobras).

As a unified voice of the international electricitysector, we regularly collaborate with keyinternational organisations on issues such asthe development and deployment of low-carbontechnologies. During 2010-2011, our collaborationwith the International Energy Association(IEA) and the International ElectrotechnicalCommission (IEC) progressed on some of the

most promising technologies for climate change:electric vehicles and smart grids. Through thesecollaborations, we reaffirm the fundamental roleof technology in the fight against climate changeand stress our commitment to the developmentand deployment of advanced low- and non-emitting technologies to all countries.

INTERNATIONAL ENERGY AGENCY (IEA)

The IEA expressed strong interest in collaborating withour organisation on technology-oriented analyses andstudies to which we could significantly contribute asrepresentatives of the international electricity sector.

With the vision to help the IEA complete its technologyroadmaps, as mandated by the G8, we shared theoutcomes of our Technology Innovation Groups onElectric Vehicles (EVTIG) and Smart Grids (SGTIG).These groups were developed to facilitate exchangesbetween members on technology innovation and thechallenges of its implementation.

A representative from the SGTIG currently participatesin the IEA’s Smart Grid Advisory Group with regard totheir 2011 technology roadmap. Our representativesto the SGTIG have also taken part in several IEA Smart

Grid Workshops covering issues from research anddevelopment, demonstration and customer policyin developed and developing countries. Exchangesbetween IEA experts and the EVTIG have focused onbusiness models and the evolution of light-duty EVs.

INTERNATIONAL ELECTROTECHNICALCOMMISSION ( IEC)

A strategic partnership was formed with the IEC

to share views and accelerate the development ofcommon international standards for EV systems,especially for charging infrastructures. The partnershipwas officially launched at the IEC-e8 StrategicRoundtable on Electric Vehicles in January 2011. Thiswas the first meeting of its kind, bringing together high-level representatives from the world’s leading utilities,automotive manufacturers and electric equipmentmanufacturers to discuss needs and set priorities forthe international standardization efforts.

The roundtable contributed to updating all theparticipants on the different standardization issues. Atthis point all participants agreed to use internationalstandards and confirmed that the IEC’s currentstandards, as well as those being developed, meet theirinitial needs. No consensus on a single solution wasreached but discussions will pursue. The participantsdid make the following resolutions:• Recognize that initially, multiple solutions will be

available in the market;• Actively develop a long-term strategy for unique

solutions on infrastructure optimization and energyconservation;

• Support market needs to facilitate EV massintegration in the early stages;

• Encourage the exchange of experiences and thesharing of visions as to where the market is going.

COLLABORATING WITH INTERNATIONALORGANISATIONS ON TECHNOLOGY

INTERNATIONALCOLLABORATION

Photo courtesy of IEC.




Left Photo:Luis Calzado, ProjectAdvisor ate8 boothin COP16.

Right Photo:Electric Vehiclebanner.

Our organisation has been participating in theUnited Nations Framework Convention onClimate Change (UNFCCC) annual Conference ofthe Parties (COP) as an admitted observer andnon-governmental organisation representingthe international electricity sector, since thethird session of the Conference of the Partiesheld in Kyoto in 1997.

In December 2010, we took part in the UnitedNations Climate Change Conference (COP16/MOP6)in Cancun, Mexico, under thee8 banner. Based onpast experiences and in view of rising challenges, themembers issued the following recommendations forsuccessful climate negotiations, prior to the meetingin Cancun:

1. The negotiations should aim at reaching anagreement with a global reach.

2. It should include reasonable and achievablecommitments.

3. Its focus must be on economically efficient while environmentally effective solutions toclimate change.

4. Involvement of the private sector is key, as privateinvestors can create value by reducing emissions.

5. And it should incorporatefinancing mechanisms to assist developing countries in the implementationof appropriate policies focused on both mitigationand adaptation.

During the week of high-level negotiations at the COPin Cancun, a booth was set up, serving as a key meansof materializing the presence of our organisationat the COP and showcasing the numerous projectsand initiatives implemented over the past years.The booth also allowed for informal exchanges withattending partners, relevant parties and organisations,as well as for the exploration of potential collaborationopportunities. On average, 20 participants per day

visited the booth, including delegation parties, NGOrepresentatives, media and activity beneficiaries.

At the booth, special emphasis was put on ourmembers’ support for electric vehicles (EVs) and theirrole in climate change mitigation. Our organisation’scommon position and key messages were well receivedby attendees. COP16 proved to be a great platform toshow that the leading world utilities are:• Convinced that the arrival of electric and plug-

in hybrid electric vehicles (EVs and PHEVs) willprovide a common and significant solution to

reducing GHG emissions;• Committed to working together with governments

and the auto industry, as well as national andinternational associations, towards implementingsuccessful conditions for the arrival of EVs, such asadequate charging infrastructures;

• Engaged in delivering greener electricity tofacilitate the integration of EVs.

Our organisation is an essential partner in worldwidemobility electrification and we are willing to cooperatewith all key actors to ensure the EV’s successful

development and deployment.

THE UNITED NATIONS CONFERENON CLIMATE CHANG

COP16/MOP6: CANCUN CLIMATECHANGE CONFERENCE

Transp ort = 23 % o f world ene rgy -rel ate dGHG emissions 1

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WorldwideMobility Electrification

1 . I C C u r t t r t

e8 members are:

Convinced that the arrival of electric and plug-in hybrid electric vehicles (EVs andPHEVs) will provide a common and significant solution to reducing GHG emissions.

Engaged in delivering greener electricity.

Committed to working together with governments, the auto industry, as wellas national and international associations towards implementing successful conditionsfor the arrival of EVs and PHEVs, such as adequate charging infrastructure.

Some e8 members are even committed to investing at an early stage of charging station deployment.

e8: An Essential Partner




The Ifugao-AmbangalMini-hydro Project,Inaugurationceremony atproject site,

Ifugao, Philippines,January 25, 2010.

While working with our partners in capital/technology deployment projects and humancapacity building workshops, we have recognizedthe urgent need for optimizing collaboration ina global, coordinated and integrated mannerin order to address universal access to energyservices. We have been working with the UnitedNations, developing countries’ governments andlocal utility company partners since the 1990s ona not-for-profit basis. By sharing our experiencein engineering, environmental protection,financing and public policy development withover 40 countries in all regions of the world, weunderstand the importance of strong partnerships.

Together with the UN-Energy, we launched a globalinitiative for Strengthening Public-Private Partnerships

to advance sustainable energy development, adoptingit as our annual theme for 2010-2011. The focus of this

joint initiative was to identify effective and meaningfulpartnerships that support and promote the globaldeployment of low- and zero-emitting electricitytechnologies at regional, national and global levels.The initiative is consistent with the recommendationsof the United Nations Secretary-General’s AdvisoryGroup on Energy and Climate Change (AGECC) whichidentified universal access to modern energy servicesand energy efficiency as key avenues for enhancedinternational cooperation to achieve the MillenniumDevelopment Goals and eliminate extreme povertyby 2030.

THE INITIATIVE

Under the e8 banner, we conducted a global survey ofthe private sector and non-governmental organisationsin order to collect and analyze information on effectivepublic-private partnerships with a view to identifyingthe elements of success. UN-Energy launched a parallelsurvey of government officials from all countries, aswell as members of the United Nations family workingin the electricity sector.

The survey results were analyzed and a report onbest practices and partnership support guidelines wasdeveloped while consulting with major s takeholders.The final report was presented at a Global Summitmeeting organized jointly with UN-Energy onJune 2, 2011. Top leaders in the public and privatesectors and countries’ high-level officials attendingthe meeting discussed the best practices and thesuccessful integration of public-private partnershipsin the implementation of electricity projects. Togetherwith UN-Energy, we committed to support, with the

assistance of our partners and the leverage of theprivate sector, countries in their implementation ofthe best practices outlined in the report.

We believe that countries that establish technologydeployment plans with enabling public policies, in anattractive financial risk-reward atmosphere created bythese partnerships, are likely to achieve the MillenniumDevelopment Goal of reducing extreme poverty through increased access to energy.

GLOBAL INITIATIVE FOR STRENGTHENINGPUBLIC-PRIVATE PARTNERSHIPS

ANNUAL THEME




Left Photo:The Tuvalu SolarPower Projectinaugurationceremony,

February 21, 2008.Right Photo:The Argentina –Patagonia ChorriacaWind-Diesel Hybridand Cochico Micro-hydro Project team atan on site wind mast,Februa ry 2011.

SUMMARY OF RECOMMENDATIONS

1. Public-Private Partnership Strategy: Establish aformal national energy development plan with astrong legislative framework, and a clearly definedpublic-private partnership strategy. This will enablereconciling security of supply, climate change andeconomic growth. Sustainable electricity policieswill foster economic and social developmentand mitigate the financial risk for its investors.

Establishment of these policy elements will removebarriers, stimulate investment, establish stable legaland regulatory frameworks, and provide incentivesand financing to bring clean electricity to unservedand underserved populations.

2. Cost Recovery Policies: Provide assured costrecovery and profit potential for investors bycreating national energy plans backed by legislationand regulation that establish a commitment to thepromotion of low carbon technologies.

3. RD&D Funding: Provide stable, sufficient funding

for research, development, demonstration anddeployment (RD&D) of a wide range of emergingclean electricity technologies. RD&D is veryexpensive. Public-private partnerships will haveto change the manner of how RD&D is financedin order to lead the way to decarbonisation of theelectricity supply.

4. Benefits of Electrification: Maximize benefitsbrought to communities from new and expandedelectrification. These public-private partnershipswill raise the standard of living for recipients andsupport communities in their economical and socialdevelopment through improved access to electricity.

5. Access to Capital: Optimize the private sector’sability to bring many financing alternatives forelectricity projects and to design, construct,operate and maintain them. Over 95 percent ofrespondents agreed that the private sector’s mosteffective contribution to a public-private partnershipwas in the provision of capital.

6. Goal Development: Set electricity development

goals and timetables for long-term technologydeployment program under national energy plans.One of the key strengths of the public sector isthe ability to develop long term, low risk policiesthat can entice financial contributors and projectdevelopers to invest in a project.

7. Effective Partnerships: Sustain strong partnershipswith effective communication, well defined rolesand responsibilities, and continuous commitment.

8. Secure Income: Use power purchase agreements(PPAs) with the private sector for greatest certainty

regarding long-term investments. Over three quartersof respondents stated that the use of PPA isextremely to very effective in securing financing todeploy low carbon technologies. The responses ofthose surveyed from financial institutions reinforcedthe importance of mitigating financial risk throughlong-term, secure income streams.

9. Implementation: Implement these recommenda-tions by increasing the alignment of public, privateand civil society sector practitioner efforts withwilling countries.

A copy of the full report is available online or uponrequest.




The Education for Sustainable EnergyDevelopment Scholarship Programme (ESED)was established in 2001 to support scholars fromdeveloping countries and economies in transitionin their pursuit of advanced studies related tosustainable energy development (SED). Inaddition to offering a Masters level scholarship,ESED also supports a web-based networkof scholars put in place with the objective ofencouraging the sharing of information andknowledge among scholars and alumni.

Since the Programme’s inception, we have awardedeight postdoctoral and 60 Masters level scholarshipsto outstanding students from more than 25 countries.The popularity of the ESED Programme has expandedover the years and is reflected in a ten-fold increase inthe number of applications received since its first year.

Scholarship applications are reviewed by a panel ofdistinguished professors and experts from universitiesin North America, Europe and Japan.

SUPPORT OF FIELD STUDIESAND INTEGRATION OF SCHOLARSIN PROJECTS

In line with the UN Agenda 21’s goal of creating aglobal partnership for sustainable development,the scholarship programme was expanded inDecember 2008 to include support of selectedscholars’ field work studies in their home country orregion. On-the-ground experience opportunities have

been afforded to some of the scholars who havebenefited from this financial support, allowing them togain practical experience in their field of study.

Beneficiaries of the ESED Scholarship Programme comefrom all regions of the world and pursue academiccurricula in different aspects of the multidisciplinaryfield of sustainable energy development, with aparticular focus on technology, environment andsocial development. The scholars’ host universitiesare prestigious academic institutions with strong SEDcurricula and research programs.

THE EDUC ATION FOR SUSTAINABLEENERGY DEVELOPMENT PROGRAMME

SUPPORTING FUTURE ACADEMICS ANDPRACTITIONERS OF SUSTAINABLE ENERGYDEVELOPMENT FROM DEVELOPING ANDEMERGING COUNTRIES WORLDWIDE




SELECTED C ANDIDATESFOR T HE 2011 ESEDSCHOLARSHIP AWARDS

Masters level• Ms. Elsa Valencia Martinez, from

Mexico, will pursue a Master ofSustainable Energy Technology atTU Delft in the Netherlands.

• Mr. Mattewos Tefferi, from Ethiopia,will pursue a Master of Sciencein Sustainable Energy Technologyat the University of Twente, inThe Netherlands.

• Mr. Misghina Zerai Habtemariam,from Eritrea, will pursue Masters

of Science in Sustainable EnergyTechnology at the University ofTwente in The Netherlands.

• Ms. Ying Tu, from China will pursuea Master of Science in SustainableEnergy Technology at the Universityof Twente in the Netherlands.

• Mr. Md. Asaduzzaman Shoeb, fromBangladesh, will pursue his Mastersin the Program of EnvironmentalPathways for Sustainable EnergySystems at the Royal Institute ofTechnology in Sweden.

• Ms. Laksita Gayuhaningtyas, fromIndonesia, will pursue a Master inSustainable Energy Technology atTechnische Universiteit Eindhovenin the Netherlands.

• Ms. Tamuno Nengiye – Ofori Lawson,will pursue a Masters Biotechnologyat Bangor University in the

United Kingdom.

ESED Selected Recipients(2001–2011)

By region of origin

Africa – 23 (34%)

China – 7 (10%)India – 6 (9%)

Asia – 17 (25%)

LatinAmerica – 14 (21%)

EasternEurope – 1 (1%)

By field of study

Technology – 39 (58%)

Law – 2 (3%)Environment – 10 (15%)

Management – 3 (4%)

Public policy – 3 (4%) Development – 2 (3%)

Science – 9 (13%)

By host university country

Multi-country – 3 (4%)Netherlands – 13 (19%)

Sweden – 3 (4%)Denmark – 2 (3%)Brazil – 2 (3%)UK – 16 (24%)

USA – 11 (16%) Australia – 3 (5%) Canada – 5 (8%)

Thailand – 1 (1%) Germany – 7 (11%)

Switzerland – 1 (1%) Japan – 1 (1%)




IMPLEMENTING PROJECTSAND HUMAN CAPACITY BUILDING

INITIATIVES WORLDWIDE

ACHETER PHOTO TERRE

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ARGENTINA – PATAGONIA CHORRIACAWIND-DIESEL HYBRID AND COCHICOMICRO-HYDRO PROJECT

T E C H N O L O G Y :

W i n d a n

d

m i c r o - h y d r o p o w e r

K E Y O B J E C T I V E S :

• Reduce CO2 emissions by reducing diesel useand inefficiencies

• Promotion of local renewable energy sources• Provide power 24 hours, 7 days a week,

to end-use customersL O C AT I O N :

Neuquén Province, Argentina

Cochico and Chorriaca are small communities in the province of Neuquén in the Patagonian region of Argentina.Both isolated from the national grid, they rely on diesel units that operate on a discontinuous basis for their electricity.

This project aims to provide these communities with access to a sustainable electric service 24 hours a day, 7 days a week,using local renewable energy sources. The project features the design and installation of a micro-hydro facility in Cochicoand a wind-diesel plant in Chorriaca, each of approximately 90kW.

In line with national and provincial interests to develop renewable generation in general, and wind energy in particular, thisproject will not only contribute to the communities’ social and economic development, it will also displace a portion of thediesel currently used, thereby reducing CO2 emissions and leading to fossil fuel savings.

Furthermore, this project will demonstrate the replicability of the business model for the development of locally availablerenewable energy in other isolated communities in Argentina. The transfer of technical know-how and experience will alsohelp build human capacity for the development, operation and maintenance of the selected systems in these communities.Such experience could be repeated in a number of similar towns within the province of Neuquén and others in Argentinathat are isolated from the main grid.

THE ARGENTIN A – PATAGONIA CHO RRIAC A WIND- DIESEL HYB RID AND COC HICOMICRO-HYDRO PROJECT WILL:• Promote the use of renewable energy;• Reduce CO2 emissions by reducing fuel consumption

and inefficiencies;• Transfer technological know-how of wind-diesel

hybrid systems to counterparties;• Provide a pilot experience for the development of

local renewable energy for isolated communities;

• Encourage other power companies to supplysustainable, renewable energy to other communities;

• Promote the importance of developing sustainable,renewable energy as a way to fight climate changeand support the social and economic development ofotherwise isolated communities.

Chorriaca wind-dieselproject site.

Coyuco creek, site for Cochicomicro-hydro project.

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MAGHREB WATERAND ELECTRICITY PROJECT

T E C H N O L O G Y :

W i n d p o w e r , r e v e r s e

o s m o s i s s y s t e m

K E Y O B J E C T I V E S :

• Water desalination• Promotion of local renewable energy sources

L O C AT I O N :

Kebili, Tunisia

In collaboration with key local partners in the Maghreb region, we are developing a project with the aim of demonstratingthe feasibility of powering fresh water production units based on locally available renewable energy sources. Addressing

the critical issue of fresh water shortage in the region, the project targets isolated rural areas with limited access to gridelectricity and fresh water services.

Under the e8 banner, an expert team conducted a comprehensive survey of potential sites in several North African countriesin order to assess local needs and identify the most suitable rural areas for implementation. Kebili, a desert province locatedin central-south Tunisia presenting all the characteristics necessary to the project’s development, was selected for theimplementation of the first pilot plant. The proposed site was accepted by the local partners, ANME and SONEDE, withthe signature of a Letter of Intent (LOI) in November 2009.

The project will consist of a reverse osmosis system (ROS) desalination plant, powered by a 850 kW wind turbine generatorand coupled with power back-up and water storage systems. This plant will meet up to 10% of the village’s daily freshwater demand (600 m³/day) and help avoid 1,000 to 1,800 tons of CO 2 emissions per year.

In 2010, a wind measurement mast was installed to finish compiling the wind data needed to complete the feasibility studyand a steering and technical committee was created to follow the development of the project.

Once completed, the Maghreb Water and Electricity Project will answer drinking water needs and improve health conditionsin the village through access to a clean water source.

Most importantly, this project will provide a replicable model for renewable energy-based fresh water productionin drought-stricken regions and offer an opportunity to enhance local players’ know-how and capacity to design,operate and maintain wind-based power supply units integrated with ROS systems.

Project site, Kebili,Tunisia.

Wind measurement tower,project site, Kebili, Tunisia.




Grid-Connected PVworkshop in theRepublic of Palau,November 2010.

In line with our core mission to promotesustainable energy development (SED)worldwide and share our members’ expertisewith counterparts in developing countries, wehave implemented over 40 human capacitybuilding (HCB) initiatives in key SED fields.Interactive workshops, seminars and technicaltraining sessions continue to be developed inpartnership with UN agencies and key localand regional partners in the fields of energyefficiency, rural electrification, renewable energysystems, institutional strengthening and projectmanagement, all within the overall frameworkof sustainable energy development.

GRID-CONNECTED PV WORKSHOPSERIES WITH PPA

A series of technical workshops targeting engineersfrom the Pacific Power Association (PPA) memberutilities have been developed in partnership with thePPA. The Grid-connected PV Workshops are the latestseries under this initiative. These workshops havebeen particularly well received in the region, as manycountries are in the process of implementing programsbased on the installation of photovoltaic systemssubsidized by various international organisations.

The first Grid-connected PV Workshop took place

in Palau, from November 1-5, 2010, and targetedelectricity utilities from the Northern Pacific Islands.This one-week workshop gave technical and hands-

on training in the design, procurement, construction,operation and maintenance of grid-connected PVsystems to 20 participants from ten different utilities.

The second workshop, targeting Southern PacificIslands’ utilities, was given in Nadi, Fiji, fromNovember 22-26, 2010. A total of 19 participants from10 member utilities, from the Cook Islands, Nauru, Fiji,Kiribati, Niue, Papua New Guinea, Samoa, Solomon,Tonga and Tuvalu, followed the same training as their

counterparts from the Northern Pacific Islands.

SEMINARS ON ELECTRICITYINTERCONNECTION

Established in partnership with the United NationsDepartment of Economic and Social Affairs (UNDESA),the Seminars on Electricity Interconnection focus onthe necessary harmonization of power systems’organisation, planning and operation on a regionalbasis, with a view to reaping the full benefits ofoptimal resource development within the region.The seminars provide a comprehensive overview ofthe most important issues and features with regardto interconnecting power systems, as well as hints onbest practices and ways of minimizing risks.

Following two seminars (Cairo, Egypt, in June 2005,and Addis Ababa, Ethiopia, in September 2008), athird seminar is being planned for 2011. A trainingsession for the Central African Power Pool (CAPP), theworkshop is being developed to address the operationof interconnected power systems and regional powermarket trading.

SHARING SUSTAINABLE ENERGY DEVELOPMKNOW-HOW WITH DEVELOPING COUNTRIES WORLD

HUMAN CAPACITYBUILDING INITIATIVES




Left photo:Financing SustainableRural Electrificationworkshop in Nairobi,Kenya, April 13-15,

2010.Right photo:Financing SustainableElectrificationworkshop inBangkok, Thailand,September 8-9, 20 09

Transfer of institutional expertise and business-oriented know-how for the financing ofsustainable electrification projects and thedeployment of low-emitting power technologiesin developing and emerging countries.

Developing and particularly threshold countries facethe task of finding adequate investment to meet theirgrowing power demand while at the same time cuttingdown emissions. Investments in advanced, low-CO2 emitting generation and delivery technologies areneeded; yet, available funds from multilateral banksand international organisations are not sufficient.

In this context, our organisation, along with the GlobalEnvironment Facility (GEF) and the United NationsDepartment of Economic and Social Affairs (UNDESA),initiated a joint human capacity building programmeaimed at sharing with counterparts in developing andemerging countries unique perspectives, experiencesand practical business know-how to attract financingfor the deployment of low-carbon, advanced powertechnologies.

The programme consists of a series of eight region-specific workshops over a period of four years. Launchedin September 2009, the programme provides a uniqueplatform in the global efforts to facilitate capital flowsfor clean technologies. Through interactive dialogues,the investment community, power sector counterpartsand high-level government representatives from thetargeted countries discuss the current risks for powersector investors, as well as the opportunities to enhance

the capacity to attract advanced power technologyfinancial flows through the development of appropriatepolicy strategies and action plans.

Since the inception of the programme, workshopshave taken place in Bangkok, Nairobi, Montreal andGeneva. Most of the country representatives attendingthe workshops have drafted and presented an actionplan, all available on our organisation’s website. Aspart of our commitment to the initiative, the GlobalSustainable Electrification Forum was launched duringthe Nairobi workshop in April 2010. Accessible to allregional workshop participants, this web-based forum,also available on our website, aims to foster continuingdialogues and exchanges between participants, theprivate sector and organizers.

By the end of 2011, a total of 55 countries will haveparticipated in these workshops. We remain committedto continue our support for this initiative in view ofbuilding a global private-public sector network that willactively support the ongoing efforts of its members tofinance technology deployment.

FINANCING SUSTAINABLEELECTRIFICATION DIALOGUES




SOUTH AND SOUTH-EAST ASIADIALOGUES – BANGKOK Date September 8-10, 2009

Location UNESCAP Conference Centre, Bangkok

Participants 29, from eight countries (Bangladesh, Bhutan,Indonesia, Pakistan, Philippines, Sri Lanka,Vietnam, Thailand)

Partners UNDESA, GEF, the United Nations Economicand Social Commission for Asia and the Pacific(ESCAP)

Focus Financing of low-carbon technologies

AFRICA DIALOGUES – NAIROBIDate April 13-15, 2010

Location UNON Conference Centre, Nairobi

Participants 43, from 12 countries (Botswana, Ethiopia,Kenya, Lesotho, Malawi, Mozambique, Namibia,Rwanda, Tanzania, Uganda, Zambia, Zimbabwe)

Partners UNDESA, GEF

Focus Financing rural electrification, focusing on theuse of renewable energy

CENTRAL AND EASTERN EUROPEAND CENTRAL ASIA DIALOGUES – GENEVADate September 14 and November 22-24, 2010

Location Montreal, Canada, and Geneva, Switzerland

Participants 60 in Montreal, 64 in Geneva from 21 countries(Armenia, Azerbaijan, Belarus, Bosnia andHerzegovina, Bulgaria, Croatia, Czech Republic,Estonia, FYR Macedonia, Hungary, Kyrgyzstan,Kazakhstan, Latvia, Poland, Romania, RussianFederation, Serbia, Slovakia, Tajikistan, Turkey,Ukraine)

Partners United Nations Economic Commissionfor Europe (UNECE), European Bank forReconstruction and Development (EBRD),World Energy Council (WEC)

Focus Fostering investment in electricity generation

LATIN AME RICAN DIALOGUES –SANTIAGO DE CHILEDate August 22-24, 2011

Location ECLAC Conference Centre, Santiago

Participants 40, from 14 countries (Argentina, Bolivia,Brazil, Chile, Colombia, Ecuador, Paraguay,Peru, Uruguay, Mexico, Panama, Costa Rica,El Salvador, Dominican Republic)

Partners UNDESA, Economic Commission for Latin

America and the Caribbean (ECLAC)Focus Financing of low-carbon technologies

OBJECTIVES:• To share business-oriented know-how

and sector-specific expertise;• To contribute to enhancing countries’

capacity to attract capital for thedevelopment and deployment ofpower generation and transmissiontechnologies and projects.

DISCUSSION TOPICS INCLUDE:• Current policies, and institutional and

financial obstacles to local and foreigninvestments in electrification projectsin the region;

• Business opportunities and key policystrategies to attract power projectinvestments.

EXPECTED OUTCOMES:• Participating countries to discuss

general guidelines and factors for thedevelopment and implementation ofan action plan that addresses strategiesand specific policy options needed toattract financing for electrification.

COUNTRY PARTICIPANTS:• High-level representatives from the

Finance and Energy ministries;• High-level representatives from

the national financial and energyregulatory agencies;

• Executive representatives fromnational lower utilities;

• Local private sector representativeswith existing or potential investmentcapacity in the local power sector.

NATIONAL ACTION PLANS’OBJECTIVES:• 68% of countries mainly focus

on creating/improving regulatoryframework and creating/improvingenergy policies;

• 52% of countries address financingissues;

• 44% of countries address change ofmix, from fuel to more renewables;

• 40% of countries addressimprovements to infrastructures.




Left photo:The Tuvalu SolarPower Project inaug-uration ceremony,February 21, 2008.

Middle photo:Newly trainedoperators for theIfugao-AmbangalMini-hydro Project.

Right photo:Wind turbineinstallation at theGalapagos WindProject site.

When developing capital projects and human capacitybuilding initiatives, we determine expected outcomes anddeliverables with which we measure a project’s success.These can be defined by specific project goals, namely:

SEEKING SUSTAINABILITY:• Long-term commitment of the stakeholders;• Proper balance of funding sources;• Business model with long-term scenario, taking into

account existing and projected economic conditions,government policies and regulations, and projectoutcomes which can translate into direct or indirectfinancial incentives;

• Mentor counterparts in the development of businessmodels and operations and maintenance (O&M)practices, with continuous involvement of thebeneficiaries.

The Galapagos Wind Project : With the support andcontribution of central and local government authorities,we were able to define very creative and attractive projectfinancing conditions, to both fund capital expenditures andensure long-term viability. In addition to our contribution,the financial model included:• Special renewable energy (wind) tariffs;• Offset contribution from fuel cost savings;• Pledging of taxpayers money for renewable energy

projects;• Tax exemptions on renewable energy revenues;• Certified Emission Reductions (CER) credits.

ASSESSING ENVIRONMENTALAND SOCIAL IMPACTS:• Implementing an environmental management plan;• Addressing concerns and developing mitigation

measures in collaboration with local players to ensurea successful infrastructure integration during theproject’s construction and its long-term operation.

The Ifugao-Ambangal Mini-Hydro Project : Theenvironmental impact assessment we conductedunderlined the need to maintain the primary use of thewater stream to irrigate the rice terraces which are thelivelihood of the Ifugao people. The run-of-the-river powergenerating facility was designed to operate only with aportion of the flow, always leaving the minimum requiredfor irrigation purposes.

DEVELOPING EMPOWERMENT AND OWNERSHIP:•

Offer human capacity building and training programsto local beneficiaries for the design, operation,management and maintenance of the proposedpower technologies.

The Tuvalu Grid-connected Solar Power Project and thePPA Grid-connected Solar PV Design, Operation and

Maintenance Workshop: These two projects conductedin the Asian Pacific region provide practical examples ofsolar PV technology deployment and potential replication,allowing many utilities to acquire the technical expertiseneeded to develop their own projects in a sustainable way.

SHARING THE LESSONS LEARNED:• Each and every project or activity we conduct features

a “return of experience” exercise that can help improvethe next project or activity, whether the experience ispositive or negative. These lessons are shared with theproject’s participants and partners.

Strengthening Public-Private Partnerships to AccelerateGlobal Electricity Technology Deployment (the 2010-2011annual theme): We conducted a worldwide survey onlessons learned in the development and implementationof partnerships for the deployment of advanced powertechnologies. The survey outcomes were compiled and

analyzed to identify the most effective best practices, andits results were shared with the international communityat the June 2, 2011, Global Summit.

SUCCESS FACTORS




Region Country Description

Africa &Middle East

Egypt Institutional strengthening ofthe power sector

Seminar on electricityinterconnection with UNDESA

Jordan Demand-side management plan

Efficiency improvements inthermal power plant (AIJ) Environmental management

programme

Lebanon Thermal power plant efficiency

Maghreb Wind power to purify watersupplies (ongoing)

South Africa Demand-side management Renewable mini-grid

assessment

Southern Africa Environmental management Environmental strategy

West Africa Solar energy supply systemsin the W Park

Asia Bangladesh Assistance to transmissionand distribution companies

Bhutan Management strengthening Micro-hydro plant (CDM)

China Clean coal technology seminar Demand-side management Environmental assessment

of thermal power station

India Technical assistance forenvironmental management

Indonesia Renewable energy supplysystems (AIJ) Monitoring of renewable

energy systems Technical assistance for

operations and maintenanceof renewable energy systems

Mongolia Thermal power plantrehabilitation

Philippines Mini-hydro plant to protecta World Heritage Site

Tajikistan Emergency assistance

Thailand Strengthening environment

institutions Strengthening environmentagencies

Region Country Description

EasternEurope

Bulgaria Energy efficiency in publicbuildings

Georgia Inspection of the Inguri Dam Seminar on regulation,

institutional relations and tariffs

LatinAmerica

Chile Master plan for the ChiloeArchipelago

Ecuador Workshop on the CleanDevelopment Mechanism

Substitution of diesel by windpower in the Galapagos

Solar PV generation andrational use of energy

Micro-Solar DistanceLearning Programme

Mexico Environmental assessmentof transmission line projects

Argentina Micro hydroelectric facility and

a wind-diesel plant for isolatedcommunities in Patagonia desert.

Oceania Pacific IslandCountries

Renewable energy capacitydevelopment

Demand Side Managementworkshops with PPA

Fiji and MarshallIslands

Photovoltaic (solar) Systemworkshops with PPA

Tuvalu Grid-connected solar powerinstallations

Multi-region Multi-country Environmental impactassessment workshops

Improving environmentalperformance and increasingplant efficiency

Electricity interconnection Workshop on rural electrification

InternationalNetwork onSmall HydroPower

Promotion of small hydropowerplants in rural areas

Multi-country,based inThailand

Regional Financing ElectrificationDialogues workshop

Multi-country,based in Kenya


Multi-country,based inSwitzerland forEastern Europe


Multi-country,based basedin Chile


1992–2011ACTIVITIES WORLDWIDE




For more information:

Global Sustainable Electricity PartnershipGeneral Secretariat

505 de Maisonneuve Blvd. W, LobbyMontreal QC H3A 3C2CANADA

Tel.: +1-514-392-8876Fax: +1-514-392-8900

[email protected]

ww w.globalelec trici t y.org

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gsep: annual report 2010-2011

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