Promoting Energy Efficiency in Developing Countries: AFD s s (C)lean Energy Strategy

Transcription

1 7 th th Global Forum on Sustainable Energy Vienna November 21-23, 23, 2007 Promoting Energy Efficiency in Developing Countries: AFD s s (C)lean Energy Strategy Dominique RICHARD AFD / Infrastructures and Environnement

2 Who are we? AFD Group French ODA Agency: Public Co & Bank AFD PROPARCO: financing of the private sector French GEF secretariat Present in 80+ countries EUR 1.7 billion committed in 2006 Wide range of financing tools Equity financing Private sector loans Partial risk guarantees, loan guarantees Guarantees on loans in local currency Non sovereign loans (concessional or market conditions) Sovereign loans (from very concessional to market conditions) Grants (projects, study funds) Untied aid Private Sector Public Sector

3 AFD General Strategy Global Public Goods Economic Growth Poverty Reduction What is the challenge regarding energy?

4 AFD Energy Strategy «(C)lean» Energy DSM, Energy efficiency and Renewable energy Energy security Dams, Interconnections, PPP, Regulation Access to Energy Grid/Off-grid Local Bio-fuels

5 AFD Group Energy Portfolio Millions Million EUR Energie Clean energy Durable Accès pour tous Access to energy Energie Competitive compétitive energy et / sécurisée energy security % of total portfolio within energy agenda

6 AFD Group Energy Portfolio Engagements commitments (M ) Annual average commitments (M EUR) Energie Clean energy Durable Accès Access pour to energy tous Energie Competitive compétitive energy / energy et sécurisée security 0 Sub-Saharan Afrique saharienne Africa Asia Asie Caraibes Caribbean / / Latin Amérique America Latine Méditerranée Mediterranean/ - Moyen Middle Orient East Multi-country/ Multi-pays Regional Outre-mer Other

7 Promoting (C)lean Energy in the Developing Countries

8 Change energy model, not climate 3 constraints impose new energy strategies both in developed and developing economies World discovering energy market tensions and high prices Climate change + growing local impacts Energy security and long term sustainability needs Change energy model (not climate) (C)lean and sustainable Demand-side management Energy efficiency Renewable energy diversification & scaling up trend lean efficient renewable

9 Change energy model, not climate There is no free ride Energy prices not reflecting real costs No provision for renewal of fossil energy No provision for environmental risks / climate change & local environment Need to change energy model across sectors Without hindering economic growth While achieving sustainable energy access Our challenge = Help the market achieve this (r)evolution

10 Growth Climate Fossil resources: which way? Business as usual scenario Too much fossil fuels for the climate Not enough fossil fuels for economic growth Source : Greenpeace

11 Disconnect growth and fossil fuels consumption Lean and efficient energy Renewable energy Regulation of fossil fuels & GHG emissions + CO 2 storage Source : Greenpeace

12 (C)lean Energy: more Demand-Side oriented (C)LEAN ENERGY MANAGEMENT BUSINESS AS USUAL Primary energy Fossil coal, gas, oil Fissile nuclear power Transformation, transport Final energy Electricity Heat Fuel Converters (end-uses) Energy services Industry Transport Residential / Commercial Renewable energy Wind, solar, hydro, geothermal Biomass Energy efficiency Demand-side management

13 (C)lean Energy: across sectors Primary & Final Energy ENERGY Renewable power generation Wind, Hydro, Geothermal, biomass Cogeneration Demand Side Management Sustainable rural electrification (including PV) AGRICULTURE / FORESTRY Biomass management plans Forestry Plans Water/Energy saving schemes Energy Services INDUSTRY Process modernisation Energy efficient devices ESCOs RESIDENTIAL / COMMERCIAL Urban Planning Energy efficient building Municipal waste energy uses Heating networks TRANSPORTATION Mobility plans Public transport / Railways Bio-fuels

14 (C)lean Energy: Sector Matrix Demand management Energy Efficiency Renewable Energy Industry Consumption audits Sector benchmarking (quotas) Efficient equipment and processes Recovery of heat Variable frequency engines Agro-industrial waste Housing Urban planning Consumption measuring Labels High efficiency construction Bioclimatic housing Efficient appliances Solar water heaters Biomass heaters Geothermal heating Transport Urban transport masterplan Modal transfers (roadrail) Alternatives to motor vehicles Sober vehicles Railway electrification Combined rail/road freight Pedestrian/bicycle Bio-fuel vehicles Energy Tariff structure review Fiscal and regulatory incentives Cogeneration Distribution loss reduction Renewable electricity Bio-fuels Agriculture Forest Regulation of household energy resources Water saving irrigation Non plow techniques, organic fertilizers Energy related cultivation Recovery of vegetal residue

15 (C)lean Energy: associating hard / soft ENERGY SAVINGS R & D New process (?) Equipment adjustment / retrofit Equipment management Individual & social behavior management INVESTMENT Diagnosis SOFT HARD

16 (C)lean Energy: according to the context + Efficient + Lean + Access AIE Consumption: kwh / cap / year

17 Adapting financial tools to climate change maturity Grants Concessional Refinancing of Non-concessional Financial loans credit institutions loans markets Awareness raising + R&D Demonstration Pilot projects Industrialisation Emerging markets Mature markets on climate change Public policies

18 Adapting financial tools to Innovation Innovation Bio-fuels for households Energy efficiency Biomass power generation Demand side management Bio fuels for transport Rural electrification Renewable energy Improvement of existing process Urban distribution Financial return Post crisis HV lines / Dams Thermal IPPs

19 Adapting financial tools to Innovation Development Assistance Innovation Bio-fuels for households Energy efficiency Biomass power generation Demand side management Bio fuels for transport Rural electrification Renewable energy Improvement of existing process Urban distribution Private sector Financial return Post crisis HV lines / Dams Thermal IPPs

20 Adapting financial tools to Innovation «Innovation premium» Development Assistance Innovation Bio-fuels for households Energy efficiency Biomass power generation Demand side management Bio fuels for transport Rural electrification Renewable energy Improvement of existing process Urban distribution Private sector Financial return Post crisis HV lines / Dams Thermal IPPs

21 (C)lean Energy: A regulatory & financial toolbox Non financial regulatory tools Persuasive : laws, rules, imposed quotas Incentive based : norms, voluntary agreements, labels, communication Financial / market based tools Tariffs : Specific tariffs for renewable energy or energy efficient transport modes Fiscal : Tax reductions, income tax credits, accelerated depreciation (households) Budgetary support Support for policy & decision making, research and development, pilot and demonstrative projects, etc. Bonified credit lines Cap & trade : Clean Development Mechanisms Carbon Funds

22 A few examples of AFD funded projects

23 Interconnection et geothermal energy in the Caribbean Sea 2005 Preliminary study (AFD/ADEME) 2007 Several partners involved Surface study (1.1 M ) ADEME / Interreg / BRGM / Regions Drilling measuring campaign (3.5 M ) French GEF / European Commission Assistance to project owner (0.5M ) AFD 2009 «Geo-Caribbean project» Geothermal production plant in Dominica and interconnection with Guadeloupe and Martinique 250 M M Pipeline: geothermal energy projects in Indonesia and East Africa (Rift)

24 Credit line to Industry in Turkey Non-sovereign loan to the TSKB bank: 50M (2004) Eligible sectors to refinancing: Renewable energy Distribution of natural gas to isolated areas (switch from fuel-oil to natural gas) Energy efficiency in industry Partial risk covered by the bank Pipeline: Dedicated credit lines in Tunisia, China, Jordan, Indonesia

25 Energy Efficient Building Program in China Objective (1997) Save energy in social buildings Develop local energy efficient norms / standards Dissemination of advanced technology, materials, know-how Results (2007) 1 million m 2 concerned (300 M ) > 50% of saved energy Investment cost for energy savings topics: 27 M (9%) of which French GEF grant: 2.7 M (10%) Pipeline: Energy efficient building in Lebanon, Tunisia, Thailand, Jordan

26 Thank you