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UNEP Guide for Energy Efficiency and Renewable Energy Laws UNEP Guide for Energy Efficiency and Renewable Energy Laws United Nations Environment Programme, Pace University Law School Energy and Climate Center UNEP United Nations Environment Programme i Published by the United Nations Environment Programme (UN Environment) September 2016 UNEP Guide for Energy Efficiency and Renewable Energy Laws – English ISBN No: 978-92-807-3609-0 Job No: DEL/2045/NA Reproduction This publication may be reproduced in whole or in part and in any form for educational and non profit pur- poses without special permission from the copyright holder, provided that acknowledgement of the source is made. UN Environment Programme will appreciate receiving a copy of any publication that uses this material as a source. No use of this publication can be made for the resale or for any other commercial purpose whatsoever without the prior permission in writing of UN Environment Programme. Application for such permission with a statement of purpose of the reproduction should be addressed to the Communications Division, of the UN Environment Programme, P.O BOX 30552, Nairobi 00100 Kenya. The use of information from this document for publicity of advertising is not permitted. Disclaimer The contents and views expressed in this publication do not necessarily reflect the views or policies of the UN Environment Programme or its member states. The designations employed and the presentation of materials in this publication do not imply the expression of any opinion whatsoever on the part of UN Environ- ment concerning the legal status of any country, territory or its authorities, or concerning the delimitation of its frontiers and boundaries. Mention of a commercial company or product in this document does not imply endorsement by UN Environment. Trademark names and symbols are used in an editorial fashion with no intention or infringement on trademark or copyright laws. Produced by Law Division, UN Environment Programme P.O.BOX 30552, Nairobi, Kenya Tel: +254 20 7623365 Email: [email protected] www.unep.org ii UNEP GUIDE FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY LAWS Editor-in-Chief RICHARD OTTINGER Editors ADRIAN J. BRADBROOK LAL KURUKULASURIYA KARL R. RABAGO MARK RADKA Authors ADRIAN J. BRADBROOK JOHN BOWIE DAVID GOLDSTEIN DAVID R. HODAS KATHERINE KENNEDY TERESA MALYSHEV PHILIP MUSEGAAS RICHARD L. OTTINGER ETHAN ROGERS ALEXANDRA WARWYK IBIBIA WORIKA Case Study Authors CHO SUNJA (Korea) SHAKEEL KAZMI (Pakistan) TUMAI MUROMBO (South Africa) VICTOR TAFUR (Colombia) JUAN ANTONIO OPPOSA (Philippeans) NANA SAFO & EUGENE OPOKU-SEREBUOH (Ghana) Research Assistants Damian Etone, Rebecca Mahony, Michaela Okininski (Australia); Uzuazoe Etermire (Nigeria); Peter Black, John Bowie, Sarah Main, Conor Strong (U.S.) iii Table of Contents TABLE OF CONTENTS IV FOREWORD VI ABOUT THE GUIDE VII ACKNOWLEDGEMENTS XI EXECUTIVE SUMMARY X SECTION ONE: ISSUES OF GENERAL APPLICATION 1 1A. ENVIRONMENTAL ASSESSMENTS 1 1B. DISCLOSURE AND PUBLIC PARTICIPATION 7 1C. ENFORCEMENT 10 1D. PRICING 13 1E. EDUCATION AND TRAINING 15 1F. REGULATORY FRAMEWORKS 16 1G.PROJECT HELP INFORMATION 17 SECTION TWO: ENERGY RESOURCE OPTIONS 18 SECTION THREE: PROJECT FINANCING 21 SECTION FOUR: ENERGY EFFICIENCY 39 CHAPTER 4A. THE IMPORTANCE OF ENERGY EFFICIENCY 39 CHAPTER 4B. INDUSTRIAL EFFICIENCY 40 CHAPTER 4C. APPLIANCE EFFICIENCY 71 CHAPTER 4D. BUILDING EFFICIENCY 90 CHAPTER 4E. ROAD TRANSPORTATION EFFICIENCY 107 iv SECTION FIVE: RENEWABLE ENERGY 128 CHAPTER 5A. THE IMPORTANCE OF RENEWABLE ENERGY. 128 CHAPTER 5B. HYDROELECTRIC ENERGY 158 CHAPTER 5C. SOLAR & WIND 169 CHAPTER 5D. BIOMASS 220 CHAPTER 5E. GEOTHERMAL ENERGY 238 SECTION SIX: RURAL APPLICATIONS 260 SECTION SEVEN: CASE STUDIES 286 CHAPTER 7A. COLOMBIA 286 CHAPTER 7B. PHILIPPINES 298 CHAPTER 7C. PAKISTAN 310 CHAPTER 7D. SOUTH AFRICA 330 CHAPTER 7E. GHANA 340 CHAPTER 7F. KOREA 359 CONCLUSION 370 DVD: UN ENVIRONMENT COMPENDIUM OF NATIONAL LAWS AND REGULATIONS AND POLICY DOCUMENTS ON RENEWABLE ENERGY AND ENERGY EFFICIENCY v Foreword The Renewable Revolution A revolution in the way we generate energy is driving a complete overhaul of the sector and its regulation. For the first time in history, most of our new energy capacity comes from renewable sources. What’s more, in the nine years since first publishing this handbook, investment in the sector has nearly doubled. In response to such dramatic developments, this revised edition explores the latest laws promoting efficient and renewable energy projects. The progress being made in the development and deployment of renewable energy is real cause for celebration around the world, from the Africa Renewable Energy Initiative to project funding from Asia-Pacific Economic Cooperation. The plummeting price of solar and wind energy makes them competitive with fossil fuels or nuclear options. Larger offshore wind projects create fewer environmental problems. A growing number of rooftops are becoming sources of power. Smart-grids, micro-grids and affordable storage provide more reliable distribution for developed urban areas and disadvantaged rural ones. Major improvements in power efficiency, technology and management are reducing waste, cost and emissions. In fact, as access to renewable energy expands, so do the social, economic and environmental benefits, making it vital to the success of the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change. However, realising the full potential of this sector requires careful legislation. Therefore, the handbook provides options for emerging areas, such as the geothermal industry, but also highlights many examples where legislation is already proving effective, including the creation of efficiency standards and labelling for consumer products and increasing rural access to clean, safe options for cooking and heating. To maintain the necessary pace of progress, decision makers at all levels of both the public and private sector need the best legal tools and information. This handbook remains the only comprehensive review of laws relating to efficient and renewable energy. I hope that in providing a source of practical information, it will inspire many other legal experts to share their experience as we address the incredible challenges and opportunities ahead. Mr. Erik Solheim, Under-Secretary General of the United Nations and Executive Director, United Nations Environment Programme vi About the Guide This Guide is written as a sequel to the 2007 UN Environment Programme Handbook for Legal Draftsmen on Environmentally Sound Management of Energy Efficiency and Renewable Energy Resources (the Handbook).1 This Guide, as the Handbook, is written in response to needs expressed, particularly by energy efficiency and renewable energy project initiators, government officials, energy managers, project developers and particularly developing country energy legal draftsmen, asking for assistance in drafting legislative provisions for promotion and implementation of sound energy efficiency and renewable energy programs. The Guide describes the key legal issues associated with efficiency and renewable energy resource development, and presents legislative options from both developed and developing countries for dealing with them, including sample excerpts from legislation. A new section is included describing available mechanisms for financing energy efficiency and renewable energy projects. Another section has been added providing case studies analysing the laws of a variety of countries, namely from Colombia, the Philippines, Pakistan, South Africa, Ghana and Korea. A very significant addition is a DVD containing a UN Environment Compendium of National Laws and Regulations and Policy Documents on Renewable Energy and Energy Efficiency. It contains: • Full texts of laws and regulations on energy efficiency and renewable energy; • Articles and notes on relevant national laws; • Sources of such laws and regulations • Laws and regulations on related areas such as climate change and the environment; • Links to other materials on relevant laws and regulations . The Guide is designed to be user-friendly. Accordingly, it has been written as a stand-alone document, not requiring back and forth reference between the Guide and the Handbook. As was stated in the Handbook, “the focus here is on national legislation, but encompasses national constitutional provisions, regulations and state and local laws where they are the key determinants of the promotion of efficiency and renewable resources. Emphasis is placed on adaptation to local country needs and conditions.” The Guide is divided into seven sections. Section One, Issues of General Application, contains legislative information on issues pertinent to all energy efficiency and renewable energy applications. Section Two, Energy Options, describes the choices to made evaluating energy efficiency and renewable energy in the context of the other available energy resources. Section Three, Project Financing, describes a range of financing methods and resources that have been used successfully 1 United Nations Envt Programme, Handbook for Drafting Laws on Energy Efficiency and Renewable Energy Resources (2007), http://www.unep.org/delc/Portals/119/publications/UNEP_ Energy_Handbook.pdf. vii to fund projects. Section Four, Energy Efficiency, relates the energy efficiency laws requisite for successful projects in the various sectors of the economy. Section Five, Renewable Energy, addresses legislation for each type of renewable energy. Section Six, Rural Applications, deals
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