unido, energy & public private partnerships
DESCRIPTION
by Dr. Pradeep MongaTRANSCRIPT
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UNIDO, ENERGY & PUBLIC PRIVATE PARTNERSHIPS
A PRESENTATIONby
Pradeep MongaChief, RRE Unit,
ECB Branch31 October 2006
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ECONOMY
EMPLOYMENT
ECONOMY
ENVI
RONM
ENT
SID
Sustainable Industrial Development
UNIDO’s MANDATE
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UNIDO’s vision is to alleviate poverty and promote global prosperity through offering INNOVATIVE solutions for the sustainable industrial development in the developing countries
VISION
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ENERGY EFFICIENCY
RENEWABLESRURAL ENERGY
CORE FOCUS
ENERGY & POVERTY
UNIDO’s Sustainable Energy Programme –Focus Areas
WATER ISSUESCLIMATE CHANGE ISSUES
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UNIDO’s involvement in the Sustainable Energy Programmes
• Access of Poor to Modern Energy Services
• Rural Energy for Productive Uses
• Renewable Energy for Power Generation and Industrial Applications
• Energy Efficiency Issues - SMEs
• Climate Change Issues
KEY FOCUS ON PROJECT / PROGRAMME DEVELOPMENT AND IMPLEMENTATION
UNIDO and ENERGY
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UNIDO and Rural Energy
• Provision of reliable energy services (on / off grid) to rural communities in the developing countries including LDCs;
• Linking rural energy services with income generation activities, rural industries and creating employment opportunities;
• Promoting ESCOs, local energy markets and enhancing local capacities for maintenance and operation;
• Rural entrepreneurship development for creating local markets and promoting IPPs and
• Replication and information dissemination.
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UNIDO and Energy Efficiency
• Introducing energy efficient technologies and processes in SMEs in LDCs;
• Promoting systems optimization, and linking energy efficiency with cleaner production and employment opportunities;
• Enhancing local capacities for conducting energy auditing, developing EMPs - action plans and follow-up;
• Mainstreaming energy efficiency in the national energy plans and policies; and
• Developing efficiency standards, organizing training programmes and information dissemination.
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Industrial Energy Efficiency – Potential SavingsSystem/facility
Total Cost$US
Energy savingskWh/y
Payback Period
Compressed air/forge plant
18,600 150,000 1.5 years
Compressed Air/machinery
32,400 310,800 1.3 years
Compressed air/tobacco
23,900 150,000 2 years
Pump system/ hospital
18,600 77,000 2 years
Pump system/pharma-ceuticals
150,000 1.05M 1.8 years
Motor systems/ petrochemicals
393,000 14.1M 0.5 years
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Background• Industrial motors consume more than 600 billion kWh
annually in China.• Motors 3-5% lower average efficiency than US and Canada.• Pump and Fans 8-10% lower average efficiency• Air quality continues to be a major issue in China; most
industries use electricity from coal-powered sources.
Benefits• Savings of just 5-10% in motor system energy use would
result in 35-70 billion kWh by 2010 or 50-100 MMT of annual CO2 reduction.
The China Motor Systems Project
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UNIDO and Renewable Energy
• Developing strategies / policy planning for Renewable Energy for integration and mainstreaming into national energy plan
• Technology selection and design, and implementing demonstration pilot projects
• Supporting local manufacture / assembly of Renewable Energy Technologies and end-use components
• Capacity building and strengthening R & D efforts as well as commercialization efforts
• Building public-private partnerships, networking and information dissemination
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UNIDO’s Focus on linking Rural / Renewable Energy with Productive Use Activities
Few Ongoing RRE Projects and Programmes:Small / Micro Hydro Power based power generation projects in
Indonesia, Sri Lanka, China and India in Asia, and Zambia, Tanzania, Uganda, Nigeria, Ghana, Rwanda and Mali in Africa.
Solar PV based projects in Maldives, India, Tanzania and Uganda.
Biomass energy based projects in Cuba, Zambia, India and Sri-Lanka and Bio-diesel project in Croatia and Wind energy based projects in Cuba, Maldives and India.
Youth entrepreneurship development based on renewable energy technologies in Zambia, India and Mexico
EGMs to promote renewable energy in the LAC and Africa regions
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Policy advice and formulation of strategies to remove barriers
Building national capacities for monitoring, verification, certification and development of technological options
Mitigation and Adaptation projects in the industrial sector
Information dissemination and networking.
UNIDO
Climate Change Strategies
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UNIDO Climate Change – Ongoing and Planned Activities
Ongoing: among others -CDM Capacity Building for Mexico, South Africa and VietnamPromotion of Public-private partnerships for CDM operations
in Morocco, South Africa, India, Brazil, China and Philippines (Preparatory assistance)
Planned: among others -CDM capacity building in Indonesia, Tajikistan and other
countries including ChinaRegional African projects on training and preparation of CDM
Project PipelineCB for an Enabling Environment for Industrial CDM Projects
(Ghana, Kenya, Nigeria, Senegal, Zambia and Zimbabwe)
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• UNIDO partners and closely co-operates with:– International Centre for Science and High Technology (ICS)– International Centre for Hydrogen Energy Technologies (ICHET)– International Centre for Small Hydro Power (ICSHP), Hangzhou,
China–Regional Centres on Small Hydro Power in Nigeria and India–Centre for Biomass Gasification Technologies, IISc, Bangalore,
India
• With the objective to:–Disseminate information and facilitate technology diffusion–Build regional/national capacities and create networks and
partnerships–Promote South-South cooperation
Energy Knowledge Infrastructure and Networks
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Partner Agencies, Funds and Networks
International - UNDP, UNEP, IAEA, UNDESA, WB, Regional Banks, Other Multi / Bilateral Agencies and Partners (UN Energy, GBEP)
** Global Funds: GEF, UNF, Shell, Carbon Funds
National - National Industrial and Energy Ministries, Cooperating Departments, Private Enterprises, Industrial Associations, Networks and NGOs
Local – SMES, NGOs, and Communities
UNIDO and ENERGY PARTNERSHIPS
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UNIDOPUBLIC PRIVATE PARTNERSHIPS
FEW SPECIFIC EXAMPLES IN ADDRESSING ENERGY ISSUES
•RUARL / RENEWABLE ENERGY PROJECTSPartnership between Public Utility and IPPPartnership between Public Utility, IPP and Local Communities (CBOs)Partnership between Government and SMEs
• ENERGY EFFICIENCY PROJECTSPartnership between Government and Industrial Units
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Total Size - $ 16. 4 million (GEF Grant - $ 5.337 million)
Objectives:Setting up of 4 Business Models on biomass harnessing,biomass power generation, wind energy and process heatfor industryBuilding up of national manufacturing capacity in renewableenergy sectorSetting up of a RRMF fund for promotion of RETsStrengthening policy planning mechanism and partnerships in
the RE sector
UNIDO//UNEP GEF Project - Generation and Delivery of Renewable Energy Based Modern Energy Services in Cuba;
the Case of Isla de la Juventud
BRIEF FACTS
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PROJECT LOCATIONPROJECT LOCATION
ISLA DE LA JUVENTUD.Population: 70 000 People
Area: 2200 km2
Distance to main island: 72 km
CUBACUBA
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Public Public –– Private Partnership in 3 AreasPrivate Partnership in 3 Areas1. Power Plant 3.5 MW based on biomass gasification
technology (BOT model between the Utility and IPP envisaged during planning phase – situation has changed during the implementation phase)
2. Process Heat provision in 4 selected public sector industries (ESCO based approach to provide services from biomass gasifiers to steam boilers)
3. Setting up of a Risk and Replication Management Fund (ANational Banking Company to promote Private Sector Investment in the RE Sector)
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BRIEF FACTS
Total Size: $ 7. 8 million (GEF Grant $ 3.0 million and Co-Financing $ 4.8 million)
Objectives:Setting up of three Rural Mini Grids based on solar, biomass and small hydro systemsBuilding national manufacturing capacity on RETsSetting up of a national level financial mechanism Strengthening policy planning mechanisms and institutional set up for promoting public private partnerships in the RE sector
UNIDO / UNEP GEF Project - Renewable Energy Based Electricity Generation for Isolated Mini-Grids in Zambia
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Location of Three RE Mini-Grids - Zambia
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Public Public –– Private Partnership in 4 AreasPrivate Partnership in 4 Areas1. Biomass Mini-Grid: (BOT model between the Utility and
Technology Provider envisaged during the planning phase)
2. Solar Mini-grid (ESCO based approach to provide services –solar lanterns to the local fishing communities)
3. Small Hydro Mini-grid ( Joint Venture model envisaged between Public Utility and Private Investor)
4. Setting up of a Risk and Replication Management Fund(National Bank - DBZ to promote Private Sector Investment in the RE Sector)
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BRIEF FACTS
Total Size: $ 18.5 million (GEF Grant $ 7.9 million and Rest Co-Financing)
Objectives:Setting up of 8 Pilot TVEsCapacity Building of TVEs and Cooperating Institutions Setting up of a national level financial mechanism Strengthening of policy planning mechanisms and institutional set up for promoting public private partnerships
A UNDP / UNIDO GEF Project - Energy Conservation and GHG Emissions Reduction in Chinese Town and Village
Enterprises (TVEs)
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Key Achievements
8 Pilot 8 Pilot TVEsTVEs strengthened through Technology Transfer and strengthened through Technology Transfer and modernization of processes modernization of processes --196,600 tons of CO196,600 tons of CO2 2 reducedreduced
Feasibility studies conducted for 118 replication Feasibility studies conducted for 118 replication TVEsTVEs, with potential to , with potential to reduce 1.5 million tons of COreduce 1.5 million tons of CO22. Among the 118 . Among the 118 TVEsTVEs, 69 (including 60 , 69 (including 60 brick plants, 2 cement plants and 7 foundries) have been completbrick plants, 2 cement plants and 7 foundries) have been completed.ed.
Revolving Capital Fund (RCF) established for Revolving Capital Fund (RCF) established for TVEsTVEs –– with 1 million grant with 1 million grant from GEF, 1 million grant from the Government and 1 million granfrom GEF, 1 million grant from the Government and 1 million grant from t from banks. RCF provides loans at a concessional rates to banks. RCF provides loans at a concessional rates to TVEsTVEs with the with the majority funds provided by majority funds provided by TVEsTVEs themselvesthemselves
A strong public private partnership has been created to promote A strong public private partnership has been created to promote productivity and competitiveness of productivity and competitiveness of TVEsTVEs in China in China
A UNDP / UNIDO GEF Project - Energy Conservation and GHG Emissions Reduction in Chinese TVEs
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UNIDO UNDP SUPPORTED MULTIFUNCTIONAL MULTIFUNCTIONAL PLATFORMS FOR VILLAGE POWERPLATFORMS FOR VILLAGE POWER
A Good Example of Government – Community Partnership
The Multifunctional Platform has a simple diesel engine that provides power to different machines and tools : cereal grinding mills, dehuskers, oil presses, joinery and carpentry tools …
The Platform is paid for (at 50% - $2000) and managed by rural women who manage it through a Women Management Committee. The Platform is made of locally available equipment and is installed
and maintained by local private artisans . The Platform can run on oil pressed from plants, like pourgher nuts
(jatropha curcas).
Oil press
S
Grinding milldehusker
Engine
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Key Issues• OWNERSHIP ISSUES
• ECONOMIC ISSUES
• TECHNOLOGY ISSUES
• FINANCING AND OPERATIONAL MODALITIES
• POLICY AND INSTITUTIONAL ISSUES
• LEGAL AND REGULATORY ISSUES
• RISK AND CAPACITY ISSUES
• SUSTAINABILITY ISSUES
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To Conclude
UNIDO IS CLOSELY INVOLVED IN THE DEVELOPMENT AND IMPLEMENTATION OF A NUMBER OF INDUSTRIAL ENERGY EFFICIENCY, RENEWABLE AND RURAL ENERGY PROJECTS AND PROGRAMMES WHERE PUBLIC PRIVATE PARTNERSHIP IS VERY CRITICAL TO THE SUCCESS AND SUSTAINABILITY OF SUCH INITIATIVES.
PLANNING PHASE IS VERY IMPORTANT FOR MUTUAL TRUST BUILDING AND IDENTIFICATION OF STRATEGIC PRIORITIES AND AREAS FOR SPECIFIC INTERVENTIONS