Annual Report 2007/8

REEEP A Partnership for Change

Contents

2 Highlights of REEEP Activities 2007/8

4 Aims and Objectives

5 Chairman’s Statement

6 International Director’s Review

10 Facilitating Global Transformation REEEP’s Programme • Policy and Regulation Solutions • Business and Finance Solutions 24 Enhancing Network Cohesion reegle • Databases • Website and Community Platform 30 Advancing the Global Community Regional Representation • International Political Profile • Strategic Alliances • PR Publications • Communication of REEEP’s Message • Capacity Building and Events 46 Evolving Foundations Partners • Structure • Governance Support • Programme Management • Programme Management Information System • Implementation and Control • Implementing Evaluation Recommendations

54 Financial Analysis Funding and Other Income • Expenditure • Assets and Liabilites • Financial Overview • Financial Estimates 2008/9 • Fundraising • Risk Registry 58 Future Outlook

60 Annexes Annex A: Ongoing Projects • Annex B: Completed Projects • Annex C: REEEP Programme Priorities 2007/8 • Annex D: REEEP Regional Secretariats and Focal Points • Annex E: List of Partners • Annex F: List of Members of REEEP Bodies 2007/8 • Annex G: List of Acronyms and Abbreviations 1

REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

Facilitating Global Transformation

Favourable Policy and Regulation Measures • Completed a total of 19 policy and regulation projects in 22 countries; shared key lessons and outcomes. Expected impacts to be assessed. • Oversaw the implementation of 15 projects in 19 countries –– in co-operation with local authorities –– to support policy and regulatory frameworks for sustainable energy and leveraging a total of €2,269,386 financing into the sustainable energy sector. • Launched the second edition of the REEEP/SERN policy review, containing a sustainable review of 56 developing and emerging countries. • Established the Energy Efficiency Coalition, an international energy efficiency network to enhance advocacy and provide a review of global energy efficiency measures. • Increased advocacy for REEEP’s mission through ministerial attendance at REEEP’s international events. • Completed one and furthered another city twinning project bringing together developed and developing country experience/expertise.

Innovative Business and Finance Approaches • Completed a total of 13 finance projects in ten countries, demonstrating new business approach models, financing arrangements and instruments to develop sustainable energy markets. • Oversaw the implementation of 22 projects in 12 countries leveraging a total of €3,553,142 financing into the sustainable energy sector. • ReEx Capital Asia (originally the Exchange) operated successfully in Singapore with 27 projects already in the pipeline. • Co-operated with the Carbon Disclosure Project (CDP) to generate information about the sustainable commitments of FT500 companies. • Established new linkages with financial institutions and developed strategies for increased co-operation. • Awarded the management of Voluntary Carbon Offset for the UK Foreign and Commonwealth Office for 2005 and 2006 and in negotiation with other governments.

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REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

Broadening Outreach

• Implemented a new customer-friendly website and community platform enabling REEEP to significantly improve global communication and the sharing of best practices. • Organised, co-hosted or endorsed 81 events and presented REEEP and its objectives at more than 194 events reaching more than 14,000 people. • Achieved coverage in 151 articles and communicated the REEEP message to an estimated audience of more than 10 million people through the utilisation of major global websites within the media mix. • Participated at the Gleneagles Dialogue meetings in Berlin and Japan and was invited as an observer to the Asia-Pacific Economic Cooperation (APEC). • Published the second REEEP Annual Report and Project Profiles book as well as individual flyers highlighting key strategic areas. • Showcased REEEP’s exhibition stand at 11 events.

Building Knowledge in the Network

• Promoted reegle, a powerful information gateway for renewable energy and energy efficiency, and broadened its offer into event partnership with WIREC. • Continued the annual REEEP Regional Secretariat meeting and held the second project developers annual meeting. • Implemented a Programme Management Information System to automate the project cycle, increase transparency and improve efficiency at all levels. • Updated and expanded all REEEP-maintained databases, including the Actors Catalogue and the Training and Education Database (TED). • Actioned recommendations from the Evaluation Report, focusing on improved infrastructure and more targeted programme activities.

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REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

REEEP partners will contribute to the expansion of the global market for renewable energy and energy efficiency. Partners agree that making this step towards sustainable development requires a concerted global effort to create a level playing field for sustainable energy.

Aims and Objectives

REEEP’s vision is to accelerate the global REEEP projects concentrate on the following market for sustainable energy by acting as themes: an enabler, multiplier and catalyser of • Policy and Regulation: robust policies changing energy systems. REEEP aims to and favourable, transparent and stable deliver significant value through facilitating: regulatory frameworks to attract • a significant global increase in invest- investors and to guarantee affordable ments in renewable energy; energy services to consumers. • a significant global increase in energy • Innovative Finance Mechanisms: new efficiency measures; forms of financing, risk mitigation and • a significant increase in access to sus- finance models to make small-sized tainable energy services for the poor. renewable and energy-efficient projects bankable and economically attractive. The lack of long-term and reliable policies and regulatory measures to support REEEP actions are demand driven and renewables and energy efficiency, and a regional. corresponding lack of finance, are the prin- REEEP relies on partners’ voluntary con- cipal obstacles to the development of sus- tributions. In particular, they can add value tainable energy markets. The removal of through a willingness to share finance, market barriers is urgently needed to experiences and knowledge. achieve the long-term transformation of the energy sector, including the creation of REEEP understands that partners’ efforts attractive investment environments. need to be backed up by well-functioning and regular communication as well as access to information. Empowering the net- work is essential to long-term delivery and partner engagement.

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REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

The last year has seen issues of clean technology deployment rise up the international agenda, presenting exciting new opportunities for REEEP.

Chairman’s Statement

Energy and have been Another success for REEEP this year was Henry Derwent increasingly in the headlines over the last its involvement in the Washington Chair of REEEP Governing Board 12 months. The UNFCCC negotiations International Renewable Energy Director, International Climate Change, in Bali saw increased attention paid to Conference (WIREC). REEEP,through its Defra, UK issues around the deployment and trans- network of secretariats, facilitated fer of low carbon technology, much of regional consultations exploring the this concerned ultimately with mobilising issues to be addressed at the conference private sector investment. Regardless of and produced a report of these discus- the final mechanisms that emerge from sions that was presented to the confer- the UNFCCC process it is clear that ence by South African Minister for REEEP’s work developing the policy, reg- ulatory and business models that will Minerals and Energy, Ms Buyelwa Sonjica. spur private sector investment in renew- The involvement in WIREC underlined ables and energy efficiency will become REEEP’s position as a key actor in the increasingly valuable. The challenge for global drive for clean energy. the coming year will be to ensure that REEEP is reliant on the support of its REEEP makes the most of its experience partner governments to fund its activi- and expertise to support this agenda. ties. I was very happy, therefore, that the There are clear successes now emerging UK was able to announce at the from REEEP’s work programme. The Gleneagles Dialogue meeting in Japan in ReEx project in Singapore, for example, March 2008 the continuation of its sup- has created a commercial venture, chan- port for a further three years and a sum nelling investment into low carbon tech- of £2.5 million for activities in 2008/9. nology in the South East Asia region. A Along with other contributions from key key part of REEEP’s work going forward partners such as Norway and Australia, in 2008/9 and beyond will be to synthe- this funding will underpin the continued sise the outcomes of such projects into growth of REEEP. lessons that can be applied in the future, so that others in the field can benefit Finally, on a personal note, I have left from REEEP’s experience. Defra to head up the International Our engagement with the work of other Emissions Trading Association (IETA), so, organisations is also increasingly impor- I am sad to say, this is my last Annual tant. I am very pleased that the Report as Chair. My successor in Defra International Energy Agency and the will take over the chairmanship, whilst I World Bank are now represented on am happy to have accepted the Board’s REEEP’s Board as observers, providing invitation to continue to serve on valuable insight and perspective to REEEP’s Governing Board as a represen- our discussions. tative of the IETA and the private sector. 5

REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

The restructuring of REEEP’s project approach towards more targeted action and increased replication has further enhanced its potential for delivering impacts on market

Director’s Review

Marianne Osterkorn ENHANCED IMPACT joined in the last year. More than 50 per- International Director cent of the new partners are from devel- In 2007/8, REEEP again enhanced its role as oping countries. an energy market transformer and facilita- tor for the uptake of renewable energy and energy efficiency systems. This was a year of implementation both in terms of projects and structural changes. ADVANCED COMMUNICATION The Sixth Programme Cycle was finalised and the 37 selected projects had started As a response to the recommendations of by mid-2007. With €3 million from five the Partnership Evaluation in the previous donors –– the United Kingdom, Norway, year, in 2007/8 REEEP implemented major New Zealand, Italy and Ireland –– this infrastructural improvements.A new web- was the largest call since the inception of site with an integrated community plat- REEEP. In addition, funding was received form was developed and went live by the from Austria,Australia, Canada, Germany, end of 2007. It is a state-of-the-art infor- the Netherlands, Spain, the USA and mation tool, which allows interested par- industry, which allowed the Partnership ties easy access to high-quality informa- to run the global network effectively and tion and enables collaboration throughout expand the unique role played by REEEP the Partnership. in promoting energy efficiency. Another major undertaking was the imple- The United Kingdom’s announcement, mentation of an online Programme made at the Gleneagles Dialogue meeting Management Information System (PMIS), in Japan at the end of March 2008, to com- which optimises project selection and mon- mit funding to REEEP for the next three itoring. The interlinkage of all IT tools pro- years, ensured that the UK not only vides continuously updated information. remains the major donor of the Partnership but also provides REEEP with the security to realise and replicate the impacts of its previous work. INTERNATIONAL In addition to the UK commitment, REEEP COLLABORATION has received pledges from Australia, Canada, REEEP has built on existing co-operation Norway and other countries to expand and with other partnerships, initiatives and continue funding REEEP in the future. international organisations. There are With 50 new partners signing up to ongoing joint projects with the 6 REEEP in 2007/8, the Partnership now Collaborative Labeling and Appliance comprises a total of 246 partners.Among Standards Program (CLASP), the Global them are 38 governments, three of which Village Energy Partnership (GVEP), the

REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

transformation and poverty alleviation. REEEP also introduced new state-of-the-art communication tools to deliver advanced network capacity.

Global Network on Energy for Energy efficiency solutions and finance Sustainable Development (GNESD), the mechanisms, especially guarantee facilities Renewable Energy Policy Network for and business models, remain the central the 21st Century (REN21) and others. focus of REEEP activities. Collaboration with the International An overall REEEP strategy covering the Energy Agency (IEA) has been continued, newly implemented developments and underlining the important role played by visualising the future direction of the REEEP in bringing renewables and energy Partnership’s objectives is under discus- efficiency into the mainstream. sion and will be completed during 2008/9 after an intensive consultation process.

FORGING DELIVERY: PROJECTS FUTURE DIRECTION REEEP’s projects remain the core business During the Sixth Programme Cycle in of the Partnership, which supports only 2007/8, a targeted and systematic those that demonstrate a high level of approach was applied to increase the potential for replicability and leverage effect. impact of the Partnership.Activities con- centrating on more targeted interven- In 2007/8, a total of 37 projects were newly selected under the Sixth tions were developed in conjunction with Programme Cycle, which now allows proj- partner governments and other key ect duration of up to two years and stakeholders, including increased replica- increased grants of €100,000 per project. tion and scale-up of successful past proj- ects, and the commissioning of specific Of these projects, 22 focused on business projects in the priority areas. and finance and 15 on policy and regulation. To strengthen REEEP’s bottom-up By the end of 2007/8, 32 projects had approach, a support and co-ordination reached completion, leaving 52 projects currently under implementation. function was introduced to provide tar- geted help to the Regional Secretariats in The 84 projects within the REEEP project their co-ordination of regional demand. portfolio show an even balance between During 2007, all Regional Steering policy and finance as well as energy effi- Committees developed their regional ciency and renewables. priorities and reported these to the Furthermore, REEEP has now started the Programme Board, which met in impact assessment process for those proj- October 2007 inVienna.The programme ects eligible for evaluation. This process 7 priorities were then approved by the will assess the project contributions to Finance Committee. market transformation.

REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

DELIVERY: Within the framework of the REEEP STRATEGIC TOOLS Voluntary Carbon Offset Mechanism (VCOM), REEEP was awarded the manage- REEEP continued to supplement its region- ment of voluntary offset for the United al programme with strategic activities. Kingdom Foreign and Commonwealth The REEEP-funded Sustainable Energy Office in 2005 and 2006, as well as the off- Regulators Network (SERN) issued the set of the Foreign Office in Mexico. In addi- second edition of its assessment of exist- tion, other governments have announced ing sustainable energy policies, covering 56 their interest in REEEP’s VCOM. countries. As a result, the total managed within the The Renewable Energy and International VCOM is around 120,000 tonnes of CO2. Law Project (REIL), which is partly funded by REEEP,convened its second annual high- ly recognised event at Yale University in co-operation with Bloomberg, and busi- INSIGHT AND ness lunches were held in London and OUTREACH Rome. In addition, REIL worked with poli- The Partnership has further enhanced its cy makers and lawyers to facilitate market efforts to share lessons learned and dis- development. seminate best practices resulting from its Utilising its unique role in the energy effi- own activities through the new improved ciency sector, REEEP formed a new net- website and various regular publications. work, the Energy Efficiency Coalition The Annual Report and the second (EEC), bringing together various stakehold- Project Profiles book gave a comprehen- ers active in implementing energy efficien- sive overview of the work of REEEP and cy systems. The EEC was launched at the its impact. Strategic activities such as the United Nations Framework Convention on EEC and VCOM were promoted with Climate Change Conference of the Parties newly developed flyers. (UNFCCC/COP) in Bali and currently Exciting new developments within the comprises more than 20 members from information gateway, reegle –– a joint proj- the +5 and OECD countries. ect with REN21 –– have made this renew- The finance intermediary ReEx Capital able energy and energy efficiency search engine a widely used tool.With more than Asia (formerly the Renewable Energy 30,000 visitors monthly, reegle is already Exchange), a REEEP-supported enter- recognised as a major player in the field of prise, has become an independent legal renewable energy and energy efficiency entity and started successful operation information systems. with 30 projects in the pipeline.It aims to link project developers with the finance REEEP has maintained its high-level profile communities in order to accelerate the in the political arena through its invitation clean energy market. to the Gleneagles Dialogue meetings in

REEEP played a major role in preparing for the Washington International Renewable Energy Conference (WIREC) by convening regional consultations in Africa, Asia and Latin America, which were well recognised by the conference stakeholders 8 and which strengthened collaboration with United States partners.

REEEP Annual Report 2007/8 Highlights Aims and Objectives Chairman’s Statement Director’s Review

Berlin and Japan and by being recognised in The Partnership cemented its strong links the G8 Heiligendamm communiqués. As a with the media through the establishment partnership active in renewables, REEEP of the REEEP Clean Energy Media Awards, also maintained its guest status at the Asia- developed to attract journalists to increase Pacific Economic Cooperation (APEC). their coverage of clean energy topics in the media. REEEP played a major role in preparing for the Washington International Renewable REEEP staff members’ engagement in inter- Energy Conference (WIREC) by convening national high-level energy-related commit- regional consultations in Africa, Asia and tees also continued. The International Latin America, which were well recognised Director was represented on the Advisory by the conference stakeholders and which Council for the European Commission’s strengthened collaboration with United ‘Smart Grids’ Technology Platform, and on States partners. the Gold Standards Board. The REEEP Programme Co-ordinator continues to be a During 2007/8, REEEP contributed to the member of the Clean Development 15th Session of the Commission on Mechanism (CDM) working group on small- Sustainable Development (CSD-15) and scale projects linked closely to the method- the UNFCCC/COP process by bringing ology of CDM. together high-level politicians and experts in the respective REEEP side events at both meetings. REEEP was also invited to lecture at the UN Learning Centre, an integral part of the CSD-15 programme. ACKNOWLEDGEMENTS REEEP further enhanced its outreach by I would like to thank all our donors and attending more than 194 events globally partners for their support and commit- and by giving presentations at 132 fora, ment during 2007/8, which enabled us to ensuring that the Partnership message build on and initiate activities to encourage reached a wide audience of parties inter- market transformation. ested in clean energy. With the help of donors, partners, gov- Strong media interest was expressed ernments and all the involved stakehold- through 151 news items with a total cover- ers, REEEP was able to consolidate and age of 242 English-language magazines and follow up on work undertaken in previ- websites (excluding local-language coverage). ous years. REEEP’s coverage in the media grew signifi- We look forward to seeing future impacts cantly, more than doubling, due to a number by relying on your continued support. of strategic relationships established with renewable energy and news portals. In 2007/8, readership grew to over 10 million readers/viewers, up from 5 million read- ers/viewers the previous year.

The Partnership cemented its strong links with the media through the establishment of the REEEP Clean Energy Media Awards, developed to attract journalists to increase their coverage of clean energy topics in the media. 9

REEEP Annual Report 2007/8 Facilitating Global Transformation In accelerating the integration of renewables into the energy mix and advocating energy efficiency, REEEP aims to facilitate global transformation towards improved energy security and reduced greenhouse gas emissions, while ensuring further socio-economic benefits.

REEEP’S PROGRAMME However, even unsuccessful experiences are likely to be valuable to REEEP’s pro- A key REEEP objective is to support and gramme strategy as the Partnership meet the needs of its partners and donors strives to learn from both successes and in the renewable energy and energy failures. A total of 52 projects (15 from efficiency sectors through financial support previous programme cycles and 37 from to the projects constituting the REEEP the Sixth Programme Cycle) are current- programme. ly at different stages of implementation. The REEEP programme has offered sup- An overview of current implementation port to 132 projects to date, with global status is given in chart 3 on page 13. coverage as shown in chart 1. Initially, 48 Directly supported REEEP projects had a projects were supported under the duration of one year and received financial umbrella of the Climate Change and support of approximately €70,000 each. Energy Programme of the Global However,starting with the Sixth Programme Opportunities Fund of the United Cycle, launched in 2007, the level of REEEP Kingdom and implemented under the financing was increased to €100,000 per REEEP banner (see annex B). Since the project, while the permissible project dura- establishment of its headquarters inVienna, tion was expanded to allow up to 24 REEEP has provided direct support to 84 months. In addition, during this cycle, initia- projects in more than 50 countries, the tives were introduced aimed at the replica- current regional distribution of which is tion or scale-up of two previous REEEP shown in chart 2. The majority of REEEP projects; three specific projects were com- projects continue to target the emerging missioned; and four projects working direct- market economies of Brazil, China, India, ly with key government partners and devel- Mexico and South Africa. Further to the 11 opment financial institutions were support- projects completed the previous year,21 of ed. These measures are expected to further these 84 projects were brought to a close increase the strategic value of the REEEP during 2007/8, resulting in a REEEP portfo- programme portfolio and were introduced lio of 32 currently completed projects. In in response to the recommendations of the 11 addition, four projects to date were unsuc- Partnership Evaluation and a study to cessful in fulfilling the project goals. increase the strategic impact of projects

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Chart 1 during 2006/7. For detailed descriptions of energy efficiency. The criteria for short- Geographical spread of total these three newly introduced project types, listing and ranking are designed to assess REEEP project portfolio see page 14. the potential impact of the proposals. 30 REEEP projects are identified via a combi- REEEP projects leverage financial contribu- nation of broad-based and balanced bot- tions from other sources, emphasising the 25 tom-up and top-down processes, founded relevance and complementarity of REEEP on a framework of priorities defined by programmes with other initiatives and the Programme Board and its programme 20 institutions. For every euro REEEP invests donors. The implementation of selected in the projects, more than three euros are projects is monitored by REEEP’s leveraged by additional co-funding, as 15 Regional Secretariats, and evaluation and shown in chart 4 on page 15.This leverage impact assessment are carried out by factor is even higher for finance projects. 10 independent experts. The thematic spread between currently The overview on page 13 gives an insight implemented Business and Finance and 5 into the full programme cycle from incep- Policy and Regulation REEEP projects is well tion to date.The large number of project balanced, as shown in chart 5 on page 16. proposals received during each cycle demonstrates the high interest in REEEP’s objectives. On average, REEEP provides support to 10 percent of applications. POLICY AND Each REEEP project stems from the under- REGULATION SOLUTIONS lying premise of its impact on the develop- The facilitation of global transformation to ment of markets for renewable energy and sustainable energy requires a coherent and

Chart 2 Countries in which REEEP projects are currently implemented

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2 1 1 11

1 2 1 2 4 2 1 13 2 2 1 2 3 1 1 4 1 1 8 3 1 1 12 1 8

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supportive policy and regulatory frame- strongly influenced by the need to over- Chart 3 work to reinforce renewable energy and come international legal barriers. Status of REEEP's project portfolio energy efficiency and to create a foundation REEEP’s current project portfolio address- that encourages investment. In the renew- es a wide range of policy and regulatory able energy field, the Partnership specifical- needs ranging from assisting governments ly promotes policies and regulations that in developing new energy policy in incentivise clean energy. In recognition of Argentina; the development of a national the fact that each country has different action plan for rural biomass energy in Completed requirements and will embark on different successfully China; the implementation of a dissemina- Ongoing pathways towards cleaner energy, REEEP 28% tion strategy for efficient cooking stoves in 45% does not promote a universal approach Northeast Brazil; to the development of an towards the increased share of sustainable integrated rural energy utility roadmap in energy in the energy mix. The support South Africa. Delayed REEEP provides to legislators, regulators, 7% municipalities and local authorities through In addition to regional projects focusing on its programme helps improve energy secu- policy and regulation, REEEP provides con- rity, reduce poverty and mitigate climate tinued support to three ongoing strategic change. REEEP’s overall vision to accelerate activities –– the Renewable Energy and Unsuccessful 4% a global market for sustainable energy is International Law Project (REIL), the

Overview of REEEP Programme Cycles

2003/5 The First and Second Programme Cycles FCO) for the fourth call and funding from the were dedicated REEEP-GOF projects. The first and Governments of Ireland and Italy for the fifth call. second call for projects resulted in the support of A total of 259 proposals were received during the 48 projects that were funded and managed by the selection process, of which 32 projects were initially UK Foreign and Commonwealth Office (FCO) Global selected for REEEP funding. Ultimately, four proj- Opportunities Fund (GOF) under the REEEP banner. ects could not begin implementation due to an REEEP also managed two projects during 2004/5 inability to raise co-financing or enter into a con- that were supported by the Austrian Government. tract with REEEP. Including a project chosen from Details of the First and Second Programme Cycle the waiting list of projects not approved during the projects can be found in annex B. initial selection process, 29 projects reached the implementation stage. More information on Fourth 2005/6 The Third Programme Cycle was independ- and Fifth Programme Cycle projects can be found in ently managed by REEEP. Due to the establishment of annexes A and B, showing REEEP’s ongoing and a formal governance structure in 2004, the UK FCO completed projects. provided funding directly to REEEP for the first time. REEEP managed the call for projects, receiving more 2007/8 The Sixth Programme Cycle is REEEP’s than 296 requests from over 70 countries. From the largest to date. Project selection was completed in short-list of 69 proposals submitted by the regions to July 2007. This cycle received funding from Norway, the International Secretariat, 18 projects were select- the UK, Ireland, Italy and New Zealand and sought ed for funding during 2005/6. Details of the Third to identify projects from priority countries –– China, Programme Cycle projects can be found in annexes A Brazil and India, and from African and Pacific Least and B covering REEEP’s ongoing and completed proj- Developed Countries. It piloted a combination of ects respectively. bottom-up and top-down approaches introducing commissioned projects to the REEEP portfolio. 2006/7 The Fourth and Fifth Programme Cycles From the short-list of 310 proposals, 37 projects 13 saw a shift in funding from renewables to energy were selected for funding during 2007/8. Details of efficiency, and a focus on Africa. REEEP received the Sixth Programme Cycle projects, all of which are funding from two UK departments (Defra and the ongoing, can be found in annex A.

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Programme Changes 2007/8

Replication and Scale-Up REEEP is also launching a global status report on energy efficiency during 2008, commissioned REEEP is providing continuing support to proj- from Ecofys Netherlands to provide an ects that have been successful in the past, in overview of the achievements and potential of order to take them to the next phase of devel- the global energy efficiency markets with a opment. The following two projects were select- focus on G8+5. ed for support from among the successful proj- ects of the first programme cycle that REEEP managed directly: Key Stakeholders ‘Energy Millennium Development Goal Financing REEEP has started working directly with key Facility (E-MDG-F) –– participatory business plan- stakeholders –– governments and development ning’, implemented by the Fiorello H. LaGuardia financial institutions (DFIs) –– as a means to Foundation, seeks to replicate a successful increase the impact of its operations. The first Brazilian hydro investment fund beyond Brazil to of such direct engagement projects were started Asia and Africa while expanding the scope to during the Sixth Programme Cycle: other renewables and to energy efficiency. ‘Promotion of solar water heating in Uganda’, ‘Scaling up a proven mechanism to implement implemented by the Ministry of Energy and energy efficiency street lighting projects in Mineral Development, Uganda, will establish India’, implemented by Econoler International, policies, standards and regulation to develop builds on a past project in Central India to scale the domestic solar water heaters industry. up activities to over 100 cities in at least five ‘Support to the renewable energy law and additional states in India. renewable energy targets in Argentina’, imple- mented by the National Energy Secretariat, Commissioned Projects Ministerio de Planificación Federal, Servicios Públicos e Inversión, Argentina, will identify From the Sixth Programme Cycle, REEEP has policy measures that will remove barriers in also moved strategically to define projects top- order to expand the use of renewable energy. down that will result in outcomes that set the future direction of the REEEP programme. Three ‘Development of marketplace competition for such initiatives by REEEP are described below. affordable non-fossil lighting in sub-Saharan Africa’, implemented by the World Bank and sup- An analysis and synthesis of past REEEP-support- ported by REEEP, will provide financial support to ed projects, with a view to identifying emerging one of the development marketplace winners. lessons, is being carried out by a consortium com- prising Baastel and Econoler International. ‘Development of international energy manage- ment standards (EMS) for integration into the ISO To address the absence of risk-management 9000 or 14000 standards’, implemented by the instruments that limit investments in renewables United Nations Industrial Development and energy efficiency in emerging markets, REEEP Organization (UNIDO), will receive REEEP support. will work with PricewaterhouseCoopers and ICICI Bank, India’s largest private sector bank.

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Sustainable Energy Regulation Network through analyses of challenges and oppor- Chart 4 (SERN) and the Energy Efficiency Coalition tunities in law and the dissemination of Co-funding attracted by REEEP (EEC) –– which help add value to the messages through key publications and regional activities and facilitate feedback high-profile events that provide a space for 250,000,000 into regulatory processes. businesses and policy makers to engage in and inform law and policy. 200,000,000 REIL is a REEEP-supported project operat- ing as an international policy and law net- SERN facilitates the exchange of experience work for clean energy in association with and knowledge between regulators and gov- 150,000,000 theYale Center for Environmental Law and ernment officials on policy and regulatory mechanisms that promote and accelerate Policy, the Center for Business and the 10,000,000 Environment at Yale, the Yale Project on the development of sustainable energy. Climate Change, Baker and McKenzie’s SERN is co-ordinated by the Centre for Global Clean Energy and Climate Change Management under Regulation at Warwick 5,000,000 Practice, and Climate Change Capital. University in the United Kingdom. The REIL network brings together the SERN, a sub-network of REEEP, currently business and finance communities, policy consists of 367 individual members from energy regulatory agencies and govern- makers, scholars, lawyers, and science and ment departments, as well as consultants, technology experts. Through the network Total funds academics and other stakeholders with an and its outputs, REIL helps to influence and interest in sustainable energy regulation. design effective policy, legal and financial REEEP funds Financial leverage strategies to promote clean energy and to With the launch of the EEC at the UNFC- address climate change. This is done CC/COP in Bali in 2007, REEEP has

REIL

The REIL network’s expert roundtables at Yale Harnessing the power of markets: market- University bring together REIL network members • based mechanisms need to be adopted as the for intense and contemplative analyses of the most effective means to initiate widespread issues. A publication of the presentations and findings from the past two Yale roundtables was behavioural change. created and distributed in 2007 at Bali. The pub- • Uncertainty kills markets: policies and regu- lication ‘From Barriers to Opportunities: lations need to be long, loud and legal –– Renewable Energy Issues in Law and Policy’ is without this, business will not respond. available online at http://environment.yale.edu /documents/downloads/o-u/REIL-Report.pdf • Policy makers, not policy takers: business and industry need to participate actively in Consensus was reached by REIL network the policy-making process. members at the Yale roundtables on the following points: • The promotion of green trade: trade liberali- sation needs to continue to increase the The reconceptualisation of energy: energy • transfer of renewable energy technologies. needs to be viewed as a means to deliver energy services to the community, rather The Yale roundtable has become an annual event. than a commodity in itself. The REIL network will reconvene in May 2008.

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REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

Chart 5 strengthened its profile as an implement- ment standards to Chilean cities, while the Currently implemented ing agency of energy efficiency measures ongoing strategic activity ‘Promoting projects according to theme and its ability to link key stakeholders all Sustainable Communities (Integrated around the world to assist in moving politi- Energy Systems)’ facilitates closer co-oper- cal commitments to practical reality. The ation between cities in terms of research, EEC currently comprises 20 members of training and demonstration initiatives. industry and public service from China, India, Japan, South Africa, Mexico, the USA An overview of all Policy and Regulation and Europe.The Coalition is funded through projects can be seen in annexes A and B. contributions from Austria and industry. The nature and scope of projects differ 50% 50% To meet the increased energy demand throughout the world but all are meant to from municipalities and urban areas, a City deliver outcomes that can be shared via Twinning Initiative was promoted, which the REEEP network and that have a poten- aims to interlink with existing organisations tial for replication. and to bring together municipal best-prac- Case studies providing insights into proj- tice solutions to facilitate the sharing of ects facilitated by REEEP are described in experiences: the completed strategic activ- the following pages. ity ‘Energy services –– an innovative financ- ing scheme for energy efficiency in public The detailed Policy and Regulation pro- Policy and Regulation buildings in Chile’ aimed to transfer gramme priorities for 2007/8 are described Business and Finance acquired know-how and project develop- in annex C.

SERN

Key SERN activities in 2007/8 included: Capacity Building Publications • Various training and capacity-building meas- ures were undertaken in collaboration with Policy and regulation review, second edition • other organisations such as the Energy –– this document outlines policy frameworks, Regulators Regional Association (ERRA), the regulatory institutions and mechanisms rele- Organisation of Caribbean Utility Regulators vant to renewable energy and energy effi- (OOCUR) and the UN. ciency for over 60 countries. SERN newsletter –– two editions of the • Support to specific projects newsletter were published, one with a focus on Africa and one with a focus on Latin • Input to a UNIDO–REEEP training course America and the Caribbean. for regulators in Africa on sustainable energy issues. • SERN literature review –– presents a selec- tion of important documents on regulation • Advisor on a REEEP-funded project on inte- and sustainable energy that are made avail- grated rural energy utilities in sub-Saharan able to SERN members. Africa.

Research/documentation • SERN works as a research/resource centre on the implementation of policies and regulatory mechanisms to promote sustainable electricity 16 in the specific context of developing countries.

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REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

Energy Efficiency Coalition

The Energy Efficiency Coalition (EEC) is an EEC: co-operation for implementation umbrella organisation challenged with working with governments, businesses and other organi- The EEC will help to support the work on ener- sations to promote energy efficiency. gy efficiency implementation by empowering local stakeholders and enabling the global shar- Energy efficiency: a voice that needs to be heard ing of best practices. Energy efficiency has been recognised as one of the most important tools for delivering both cli- A step-by-step approach mate and energy security whilst supporting sus- Since the energy efficiency market is somewhat tainable economic growth both within OECD fragmented, the scope of the coalition should be countries and in emerging economies. expanded step by step. The potential of energy efficiency has been 1. Energy efficiency in buildings. widely identified. It has been demonstrated through studies such as the UK Government’s 2. Industrial energy efficiency. Stern Review and recognised on the interna- 3. All energy efficiency sectors, including gener- tional stage at events such as the World ation and transportation. Summit for Sustainable Development. Technology is not an obstacle to implementing energy efficiency. The main challenges are Step one –– energy efficiency in buildings finance, communications, and changing tradi- The Coalition will provide: tional behaviour. • Advocacy for international energy efficiency programmes. Giving energy efficiency a voice • Guidance for research initiatives (Global Beyond the barriers to energy efficiency, the Assessment Report). lack, at the international level, of a voice to promote energy efficiency has been a brake on • Communication of best practices and imple- action. A platform is urgently needed to give mentation solutions in international fora. energy efficiency a strong and coherent voice on Mentorship to local and national the international stage. • programmes. The REEEP Energy Efficiency Coalition aims to Communication to promote educational provide this voice. Bringing together govern- • programmes targeting home builders, policy mental, civil society and business voices its aim makers, academics and consumers. is to bridge the gap between political will and action on the ground.

17

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REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

Policy and Regulation Case Study

MAINACTIVITIESANDOUTPUTS • Install 200 additional improved cooking stoves. • Restock shrubbery forest with native species. • Implement research on the best dissemination strategy to determine the relative advantages of subsidising stove manufacturers versus stove users. • Implement best incentives for replanting meth- ods and forest management to generate a sus- tainable supply of wood fuel. • Capacitate the Ceará state government in social, economic and ecological issues around efficient stove fabrication and distribution. • Work within the Ceará state government to develop a dissemination model for efficient cooking stoves adapted to their development Implementation of a plans and public policy. Dissemination Strategy for Efficient Cook Stoves EXPECTED IMPACTS in Northeast Brazil • Enactment of informed public policy that would encourage the sustainable use of biomass in rural communities. LOCATION Brazil • Improved health through energy-efficient cook- ing stove application. DURATION 2007–2009 • Best dissemination methods for efficient cook- ing stoves in rural communities learnt by state government agencies. BUDGET €110,000, including co-funding from IDER, the local state government and the United States Agency STATUS AND PROGRESS for International Development (USAID) The project is progressing well. The state govern- ment has adopted this technology in the state IMPLEMENTING AGENCY development plans and will be pursuing financing Instituto de Desenvolvimento Sustentável e options for further up-scaling. Energias Renováveis (Institute for Sustainable The state of Ceará provided additional funds from Development and Renewable Energy –– IDER) the State Fund to Combat Poverty (FECOP) to sup- port the installation of an additional 4,000 stoves. PURPOSE To implement a dissemination strategy for efficient cooking stoves –– including installation, sustainable forest recovery activities, and capacity building –– 18 that is adopted in Ceará state public policy through state development plans.

REEEP Annual Report 2007/8 FACILITATINGGLOBALTRANSFORMATION

REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

Policy and Regulation Case Study

Promotion of Solar Water Heating in Uganda

LOCATION Uganda

DURATION 2007–2009

BUDGET €377,000, including co-financing from the Government of Uganda

IMPLEMENTING AGENCY Ministry of Energy and Mineral Development

EXPECTED IMPACTS PURPOSE • Reduction in electricity rationing during peak To save electricity, especially during peak hours, by hours. switching water heating in households and institu- • Reduction in energy bills in households and tions from electricity to solar. institutions using solar water heaters. • Reduced government spending on subsidies to MAINACTIVITIESANDOUTPUTS bring down the high electricity tariffs caused by • Create awareness about the benefits of solar expensive diesel generators. water heaters among city planning authorities, • Reduced greenhouse gas emissions from diesel- the Ministry of Housing, professional bodies of fuelled thermal power plants. architects and engineering professionals, and the general public. • Reduced cost of solar water heaters. • Establish appropriate financing mechanisms for • Development of reliable solar water heating manufacturers, vendor companies and consumers. systems. • Develop policies to promote solar water • Availability of trained solar water heater instal- heaters. lation engineers. • Establish standards and guidelines for integrat- • Increase in the share of renewable energy in the ing solar water heaters in buildings. national energy mix. • Train 20 engineers and technicians to develop local capacity to install and maintain solar STATUS AND PROGRESS water heating systems. The project has started and an inception workshop • Prepare an investment plan to finance the repli- was held in the second quarter of 2008 by the cation and scale-up of solar water heater use. Government of Uganda to carry out stakeholder consultations. • Save 1 MW of electricity during peak hours by installing 500 solar water heaters. 19 • Expand the local solar thermal industry.

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‘REEEP has become one BUSINESS AND FINANCE companies and other institutions can out- SOLUTIONS source the purchase of Certified Emissions of the most successful Reductions (CERs) or Gold Standard While the economics of renewables and Verified Emissions Reductions (VERs) to partnerships of the World energy efficiency –– scale, cost structure REEEP as part of a carbon footprint man- Sustainable Development and risk perceptions –– continue to neces- agement strategy. sitate innovative business and finance Dialogue. It has mechanisms, the concern for energy secu- The advantage of the REEEP scheme is that rity and the size of the emissions trading it brings its clients the assurance that REEEP implemented a wide markets have led to an acceleration in the will use its knowledge and global network range of projects that are engagement of major banks and develop- to undertake background checks, and will ment financial institutions, which in turn liaise with financial institutions and project helping to scale up are actively engaging in investment in the developers to ensure that clients of the investment in renewable market, progressively moving from tradi- scheme receive carbon credits from reliable tional to emerging markets. projects which look to develop renewable energy and energy energy and energy efficiency within a Still much more remains to be done in the region, and which result in co-benefits. efficiency, and it has areas of business and risk management REEEP looks for small-scale projects which models; distribution and service channels; cover renewable energy and energy effi- developed a network that micro energy enterprise incubation and ciency, and which also have sustainable development; energy service delivery enables success and best development benefit for the local popula- models; and risk management instruments tion. REEEP places a priority on projects practice to be quickly such as guarantee facilities.This should be which can be replicated and/or scaled up. replicated and scaled up augmented by the engagement of local and international finance institutions, capital The United Kingdom Foreign and so that it can make an markets and micro-finance. Business and Commonwealth Office (UK FCO) was the even bigger impact.’ financial aspects are critical to the devel- first to use the scheme. In 2007/8, REEEP opment of a long-term, sustainable invest- again worked with the UK to offset the car- Phil Woolas, UK Environment ment market for renewables and energy bon emissions generated by the air travel of Minister, Japan, 2008 efficiency, and this is an area where REEEP UK FCO ministers and staff based in the UK continues to move clean energy further in 2004 and 2005. In addition, REEEP is now into the business arena. working with the Government of Ireland, the FCO Global Opportunities Fund (GOF) Of particular importance is the market for and the British Embassy in Mexico City to emissions trading.This market is driven by offset their carbon emissions. the EU Emissions Trading System; the Kyoto Compliance Market and other mar- ReEx Capital Asia (ReEx), formerly known kets such as the voluntary carbon market; as the Renewable Energy Exchange, a the Australian domestic market; and the Singapore-based strategic project promot- Regional Greenhouse Gas Initiative ed by REEEP, recently brokered three new (RGGI) in the USA. REEEP has supported investments that will provide some $30 mil- the Clean Development Mechanism lion for an energy services company –– the (CDM) Gold Standard to promote Kyoto Jatropha biofuel and wind farm develop- compliance and the voluntary markets. ment. ReEx recognises that the clean ener- Several of the REEEP projects that will gy market is still relatively immature and result in emissions reductions leverage that both project sponsors and investors funding from carbon finance. need assistance to accelerate the imple- mentation of new opportunities in this mar- The financial theme is characterised by a ket. ReEx has a pipeline of around 30 cred- strategic shift towards replicable business ible project opportunities.There is a grow- models and risk management models. ing number of investors from the public and Financial sector activities are backed by private banking sectors and private equity strategic products developed over the last funds, including corporate and strategic three years. investors. ReEx provides a unique brokering 20 REEEP’s Voluntary Carbon Offset role and consultancy services that have Mechanism (VCOM) is a scheme by which been very well received by both sides of the governments (local, regional and national), market with enquiries spreading beyond its

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REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

ReEx

The achievements of ReEx Capital Asia to date Chart 6 include: Sample of investment opportunities per country • Mandates established with over 25 project sponsors throughout South East Asia and in Malaysia 1 Korea, India, China, Nepal and Sri Lanka. Thailand 1 Singapore 2 • Detailed due diligence under way on a num- ber of near-term investment opportunities.

• Cross-section of technologies totalling some Indonesia 3 $800 million, which include solar PV manu- facturing, biofuel production (Jathropa, bio- ethanol, palm oil, cassava, sweet sorghum Philippines 5 and associated bio-plastics production), 3 wind, biogas, landfill gas, small hydro, bio- China mass and energy efficiency. Korea 2 • Relationships established with some 50 poten- tial investors who represent private equity India 3 sources, specialist funds, corporate investors, national banks, international banks and bilat- eral and multilateral development banks. Laos 1 Sri Lanka 1 • Ongoing sourcing of projects and identification Regional 2 of interested investment partners with strong and positive support from the market for this Nepal 1 facility.

original focus on the Association of ment risks; the implementation of a financ- Southeast Asian Nations (ASEAN). Building ing facility for sustainable ventures and on the financial support that REEEP provid- infrastructures, supported by renewable ed for its early operation, ReEx is now self- energy and energy efficient systems, to pro- sustaining and funded from success fees mote the Millennium Development Goals; earned through its brokering activities and to the replication and scale-up of a previ- consultancy services, offered to both proj- ously successful business model for financ- ect developers and investors. ing municipal street lighting in India and the The Business and Finance projects sup- establishment of appropriate financial and ported by REEEP to date have consistently market-based mechanisms to improve shown a significant amount of co-funding, building energy efficiency in China. as illustrated in chart 4 on page 15. The An overview of Business and Finance proj- projects address financing and institutional ects can be found in annexes A and B, and barriers to the development of renewable the Business and Finance priorities for energy and energy efficiency markets.They 2007/8 are described in annex C. cover a variety of issues ranging from the development of funds and finance facilities Case studies providing insight into 21 and the design and establishment of a risk Business and Finance activities are pre- mitigation mechanism to manage invest- sented in the following pages.

REEEP Annual Report 2007/8 FACILITATINGGLOBALTRANSFORMATION

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Business and Finance Case Study

PURPOSE To help significantly reduce pre-construction finan- cial and legal transaction costs for clean energy projects by establishing a standardised financial and legal documentation knowledge management system integrated with the RETScreen Clean Energy Project Analysis software.

MAINACTIVITIESANDOUTPUTS • Link existing legal documents for energy effi- ciency, co-generation and renewable energy projects to RETScreen software. • Include an editor-controlled Wiki document management section within the RETScreen website. • Develop customised initial documents where gaps exist for pilot projects in China, India or Standardised Financial & Legal Brazil. Documentation for RETScreen • Disseminate content to users via RETScreen software and links to RETScreen from other websites, with a focus on REEEP donor priority LOCATION Global countries.

DURATION 2007–2009 EXPECTED IMPACTS • Reduction of the estimated $300 billion invested BUDGET in pre-construction transaction costs for energy €600,000, including co-funding from Natural efficiency, co-generation and renewable energy Resources Canada (NRCan) projects over the next 30 years, estimated to amount to $8 billion by the end of 2012.

IMPLEMENTING AGENCY • Reduction of upfront costs, via the standardisa- tion of documentation and by automating CANMET Energy Technology Centre–Varennes expert knowledge within RETScreen software. Financial and legal documentation adds as much as $1 million per project to these costs. • Expansion of use of RETScreen software from currently 150,000 users to a planned target of 300,000 at a growth rate of 1,000 users per week.

STATUS AND PROGRESS The legal team has started work on the documen- tation: it is expected that the initial focus will be 22 on China and India.

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REEEP’s Programme Policy and Regulation Solutions Business and Finance Solutions

Business and Finance Case Study

Performance/Credit Risk Guarantees and Financing Mechanisms for ESCO-Structured Energy Efficiency Projects

LOCATION Mexico

DURATION 2007–2008

BUDGET €200,000, including co-funding from EPS Capital Corporation and Mexican ESCOs EXPECTED IMPACTS • Provision of performance and credit risk guar- IMPLEMENTING AGENCY antees from NAFIN and risk mitigation struc- EPS Capital Corporation tures to local banks in Mexico that provide cash flow–based long-term financing to ESCO-struc- tured energy efficiency projects. PURPOSE To encourage local banks in Mexico to provide • Acceleration of the implementation of energy long-term financing to ESCO-structured energy efficiency projects and the growth of the ESCO efficiency projects and to accept Nacional industry in Mexico, which comprises mostly Financiera, S.N.C. (NAFIN) guarantees with the small and medium-sized enterprises. project’s cash flow as collateral. • Creation of replicable mechanisms that can be used to aggregate the financing of energy effi- MAINACTIVITIESANDOUTPUTS ciency projects and to reduce overall transaction costs. • Develop and finance three ESCO-structured projects in Mexico utilising newly created per- formance/credit risk guarantees and project- based financing mechanisms, to be provided STATUS AND PROGRESS by NAFIN. Discussions are under way with NAFIN to provide a performance risk mechanism and partial credit • Obtain market feedback based on local bank guarantee facility. This will allow local banks and requirements for financing the three projects in financial institutions to support ESCO-structured order for NAFIN to design the final financing energy efficiency projects. mechanisms based on lessons learned.

23

REEEP Annual Report 2007/8 Enhancing Network Cohesion Sharing best practices and providing access to information and knowledge are fundamental to REEEP’s service. In 2007/8, existing information systems were improved or replaced by new, state-of-the-art tools.With the implementation of a newly designed website integrating a highly customer-friendly community platform, REEEP enables all partners and interested stakeholders to communicate quickly and easily.

REEGLE The system refines and categorises all identified information sources and trans- The ‘information gateway for renew- lates these, via searchable user-friendly fea- able energy and energy efficiency’, tures, into the user’s search requirements. www.reegle.info, was conceptualised in early 2005 when REEEP and its strategic The unique value of reegle derives from partner REN21 conceived the creation of REEEP and REN21 experts continuously an information portal on all aspects of identifying and reviewing the most relevant clean energy.This enterprise was support- and highest-quality information sources ed by the Governments of the United (currently over 200 websites are covered by Kingdom, Germany, the Netherlands and reegle, as shown in chart 7), which are then Austria and has developed a highly recog- accessible via reegle to all stakeholders. nised clean energy information portal with Specifically tailored responses can therefore a global outreach. be delivered to all clean energy questions. A unique, state-of-the-art search engine, reegle allows fast access to all relevant To accelerate access to such information, information sources on renewable energy, reegle also gives direct access to existing energy efficiency and climate change. This databases from core‘knowledge partners’ — high-quality information access is highly relevant information providers such as addressed to targeted stakeholders, includ- the World Bank, the World Energy Council, ing governments, project developers, busi- the United Nations Industrial Development 25 nesses, financiers, NGOs, academia, inter- Organization and the International Energy national organisations and civil society. Agency. REEEP continues to identify and

REEEP Annual Report 2007/8 ENHANCINGNETWORKCOHESION

reegle Databases Website & Community Platform

Chart 7 negotiate with other leading entities to join manager was hired in September 2007.The Number of reegle sources in this functionality. additional capacity is enhancing the achievements and extending the outreach During 2007/8, the reegle information 250 of reegle. For example, discussions are cur- gateway increased its outreach by intro- ducing multilingual features (French and rently being held with one of the global players on internet information research 200 Spanish), which will be available to the global audience in mid-2008. regarding the establishment of a valuable marketing co-operation.A number of soft- In addition to the existing information ware improvements have also been made 150 access points, a new blog (http://blog. in order to increase speed and search reegle.info) has been launched to keep quality.The reegle trademark has been reg- users up to date and to provide the latest istered worldwide, with the exception of 100 event information. the USA where the required documents To ensure the continuous development of have been submitted and approval is the information portal, a reegle project expected in mid-2008. 50 7 8 7 6 6 0 0 0 0 0 - - - - - r v y v b a a e o o F M

M reegle Search Capabilities N N

Chart 8 Three different types of Number of reegle actors search capability are provided by reegle: 1,500 Actors Catalogue contains • Intelligent Search provides information on more than • additional semantic web- 1,350 initiatives, partner- based search mechanisms 1,200 ships and organisations as well as additional fea- involved in renewable tures such as personalisa- energy and energy efficien- tion, a glossary and a the- 900 cy. The Actors Catalogue, saurus. The Intelligent which is updated twice a Search function is based on year, also includes infor- a ‘mind map’ derived from 600 mation about the focus, interviews conducted with geographical reach and a number of experts, each projects of the various interviewee representing a 300 institutions (‘Actors’). certain target group, Chart 8 illustrates the con- including policy makers, tinuous growth of the regulators, project devel- 7 8 7 6

7 database. 0 0 0 0 0 - - -

- opers, manufacturers, - t r r r n c a a p u

J Category Search allows for NGOs and research institu- A O M M • document viewing via a tions, with a balance special categorisation sys- between experts from the tem for renewable energy renewable energy and and energy efficiency. energy efficiency sectors.

26

REEEP Annual Report 2007/8 ENHANCINGNETWORKCOHESION

reegle Databases Website & Community Platform

reegle @ WIREC 2008

In preparation for the Washington International Renewable Energy Conference (WIREC) 2008, the reegle and WIREC teams worked closely together to develop a WIREC dedicated section within the overall reegle site offering a number of added-value options. • Customised searches on best practices in renewables. • Links to high-quality related sites. • A redefined categorisation system to reflect key WIREC issues, making searches easier and more efficient. A reegle blog, providing users with up-to- • WIREC 2008, and all conference participants date event information. were able to use reegle to find high-quality best • Banner links from WIREC topics to specific practices on the four focal points of WIREC related search engines. (agriculture and rural development; technolo- The result of this co-operation was that reegle gy/research and development; finance; and mar- became the ‘Best Practice Information Tool’ of ket adoption and deployment).

To raise awareness of the system’s benefits chart 9, which details the increase in hit active promotion is required: reegle was rates following the activities; and in chart 10, therefore presented at three key events where the geographical impact is clearly during the last year. visible.This chart shows that the majority At these events, several new partnership of reegle visitors still come from Europe opportunities and possibilities for future and North America but reflects an development emerged, which will be fol- increasing interest from Asia. lowed up during 2008/9. The potential of reegle to play a more The impact of such activities can be seen in active role within the event arena has

‘Fundamental to the acceleration of the clean energy marketplace, is the need to provide interested stakeholders, in particular potential investors, with fast access to high-quality information. reegle, the information gateway for renewable energy and energy efficiency, provides the means to link and disseminate knowledge, helping to determine market potential and facilitating global investment forecasts.’ 27 Martin Schöpe, Ministry for the Environment, Nature Protection and Nuclear Safety, Germany, 2007

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reegle Databases Website & Community Platform

‘I found the service to be substantially helpful. And the breadth of data on types of sectors and actors was amazing. I will definitely be using reegle again. reegle is undoubtedly an indispensable resource...’ The Greensource Blog, 2007

Chart 9 also been explored,using its resources to The global and virtual nature of the reegle visitors support events through a web-based Partnership makes it dependent on the information system in a pilot version at community platform as its only infrastruc- 30 WIREC 2008. To this end, reegle devel- tural backbone, and on the website as its oped a specific partnership with WIREC virtual window to the outside world. 2008, the details of which can be seen in 25 Excellent functionality and the easy opera- the box on page 27. tion of this information tool is therefore essential for future Partnership develop- 20 ment, as identified during the Partnership DATABASES Evaluation process. 15 In 2007/8, two general updates of the Furthermore, the new website and com- reegle integrated databases were per- munity platform have been integrated with formed. This includes the Actors the newly established Programme 10 Catalogue, a comprehensive overview of Management Information System (PMIS), stakeholders in the field of clean energy; another large infrastructural project and the Training and Education Database undertaken in 2007/8, which is described 5 (TED), which provides an overview of rel- in detail on page 52, to ensure a global evant training courses in major global edu- online picture of REEEP activities. cational facilities. The development of the new system has 8 7 7 7 7 7 0 0 0 0 0 0 ------been carried out in co-operation with t c b r g n c e e p u u F J O

D an Austrian IT company, and was guided A A and supervised by an internal REEEP WEBSITE AND advisory group. Chart 10 COMMUNITY PLATFORM Global distribution of reegle users To ensure the actuality of the databases As a consequence of the intensive growth within the website and community plat- of the Partnership within the last four years, form, data relating to persons and organi- in terms of both partner numbers and activ- sations within the systems were updated ities, the requirements with respect to the through a request for re-registration. Partnership’s communication systems have North America changed. In addition, new IT solutions The website has a series of functionality 34% became available on the global marketplace, upgrades and new features. One of the which could be of benefit to the Partnership. most important innovations is that Europe 45% Regional Secretariats can now upload their This led to the decision to develop and own regional content to the respective implement a new, integrated website and geographic section of the website. This state-of-the-art community platform to Asia 14% new, ‘decentralised’ model will allow local optimise the visibility of the REEEP organ- and regional activities, news, events and isation, its work, its mission and strategies, analysis to be more rapidly promoted. and its current projects, as well as to opti- 28 mise the co-ordination of the partner net- Based on feedback from the Partnership, Oceania 3% work and enable smooth communication REEEP was asked to provide easier access Africa 4% and information flow. to information placed throughout the

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reegle Databases Website & Community Platform

New features for ‘Friends of REEEP’

REEEP has recently launched a new website and community platform for partners and friends of REEEP, with additional functionality and benefits. • Be the first to hear about REEEP’s call for projects with targeted emails about new funding rounds, allowing increased prepa- ration for proposal development. • Receive global exposure for your knowledge and expertise by establishing a profile within the website leading to increased promotion- al opportunities. • Find organisations and individuals for potential collaboration. • Keep track of the renewable energy and • Receive updates on relevant news, events, energy efficiency job market and be the reports and projects with your personal first to take advantage of potential new ‘What’s New’ page. opportunities.

website. In response to this request, the better align REEEP’s products and serv- new functionality includes a variety of ices with the website. The Partnership searchable databases. The result is that has evolved significantly over the last information can now be sorted across four years and the website has to several criteria allowing users to find reflect this evolution. A new section, information more rapidly on a particular ‘Accelerate the market’,has been added, subject, geography or time. which allows visitors, partners and friends to access statistics and data, The site layout was also improved, with tools, training, project information, fund- new sections and sub-sections added to ing and new job opportunities.

‘With the relaunch of its internet information system REEEP managed to realise a solution that fully satisfies the needs of a global acting partnership: providing up-to- date information on the public website as well as providing a full-blown community system for partners, friends and staff members...’ 29 Martin Kaltenböck, Managing Director, punkt. netServices

REEEP Annual Report 2007/8 Advancing the Global Community Empowerment of regional representatives, intensive political engagement and targeted communications are critical to the Partnership’s role as an agent for change for energy systems.

REGIONAL took place on taking the network forward. REPRESENTATION In addition, this has led to the re-establish- ment of regular conference calls with all Accelerating the global and regional mar- Regional Secretariats represented and sup- kets for renewable energy and energy effi- ported by weekly bilateral conversations, ciency requires REEEP to have a strong, allowing immediate reaction to regional mobile and influential network that knows requests. what is needed and how to deliver change at both regional and international level. The Regional Secretariats deliver real, practical benefits to the region for which REEEP’s network structure consists of an they are responsible and keep in touch International Secretariat based in Vienna, with the local situation to ensure that eight Regional Secretariats, and two local regional needs drive the Partnership’s Focal Points. All regional contact details activities and that REEEP’s aims and objec- can be found in annex D. tives are achieved within the region. The It is the task of the International Secretariat Regional Secretariats are responsible for to co-ordinate REEEP’s programmes; more than 90 countries in total. Chart 11 ensure that funds are used correctly; set illustrates the geographical responsibility strategy; co-ordinate and support the of the Regional Secretariats. Regional Secretariats; distribute informa- In addition to the eight Regional tion; and report to the bodies within the Secretariats, REEEP collaborates with two governance structure. local Focal Points. In North Africa, REEEP’s During 2007/8, in response to the recom- partner, the Mediterranean Renewable mendations arising from the evaluations Energy Programme (MEDREP), acts as a carried out during the previous year, the voluntary point of contact and support to position of Regional Secretariat Co-ordi- REEEP activities within the region; and in nator was introduced within the West Africa the Economic Community of International Secretariat, with the aim of WestAfrican States (ECOWAS) provides a enhancing the support and cohesion of supporting role. the network. This has reinforced the intensive commu- nications with the Regional Secretariats, INTERNATIONAL including the continuation, in September POLITICAL PROFILE 2007, of the annual two-day meeting in 31 Vienna attended by representatives from REEEP continues to work actively within all eight Secretariats where discussions the political process in order to promote

REEEP Annual Report 2007/8 BUILDINGAGLOBALCOMMUNITY

Regional Representation Political Profile Strategic Alliances PR Publications Communication Capacity Building

Chart 11 Geographical structure of REEEP

REEEP Focal Point North Africa (MEDREP) KEY: Countries covered International Secretariat REEEP Focal Point Regional Secretariat West Africa (ECOWAS) North America Regional Secretariat Latin America & the Caribbean Regional Secretariat Southern Africa Regional Secretariat Russia and FSU Regional Secretariat Central and Eastern Europe & Turkey Regional Secretariat East Asia Regional Secretariat South Asia Regional Secretariat South East Asia & Pacific

its aims and to raise awareness among pol- to the funding of REEEP programmes. In icy makers, regulators, officials and legisla- many cases, these outreach activities bene- tors of the role that renewable energy and fited from the support of diplomatic rep- energy efficiency can play in providing a resentatives and officials of existing gov- global sustainable low-carbon energy mix. ernmental partners. In 2007/8,Hungary became the first Central Enhanced European country to sign up as a REEEP Governmental Relations partner and negotiations are in progress The International Secretariat pursued its with other governments in this region. diplomatic outreach strategy during the year with a view to the further expansion REEEP has strengthened its role within the of the governmental component of the political arena through intensive contribution REEEP membership and to the widening of to multilateral and international political the circle of partners ready to contribute processes in order to achieve its aim of

The G8 countries ‘…welcome concerted global action to promote renewable energy and the support of interested parties for initiatives and partnerships such as… 32 the Renewable Energy and Energy Efficiency Program (REEEP)…’ The Heiligendamm G8 Summit, 2007

REEEP Annual Report 2007/8 ADVANCINGTHEGLOBALCOMMUNITY

Regional Representation Political Profile Strategic Alliances PR Publications Communication Capacity Building

The Gleneagles Dialogue

The Gleneagles Dialogue is a process that brings together 20 countries with the greatest energy needs, including the G8 and the major emerging economies of Brazil, China, India, Mexico and South Africa, and allows them informally to discuss innova- tive ideas and new measures to tackle climate change outside the formal negotiations under the United Nations Framework Convention on Climate Change (UNFCCC).

developing positive market conditions for they continued to welcome and support renewable energy and energy efficiency the work of REEEP in promoting renew- technologies. able energy globally. As a follow-up to REEEP’s contribution to the Activities within the Gleneagles Dialogue, the Partnership was Gleneagles Process invited to theThird Ministerial Meeting of the In June 2007, at the Heiligendamm Summit Gleneagles Dialogue,held on 9–11 September in Germany, the G8 made a statement that 2007 in Berlin, at which REEEP made a state-

Director’s Gleneagles Statement

‘The Renewable Energy and Energy Efficiency Finally, since the energy efficiency community is a Partnership has been active for more than three very scattered sector there is a strong need, espe- years in promoting market conditions for renew- cially for private sectors active in energy efficiency, ables and energy efficiency targeting primarily the to draw closer together with a view to an intensive non-OECD countries. I would like to raise here three sharing of best solutions, conducive to the spread of issues energy efficiency is still facing. energy efficiency practices and technologies. Building on the requests of the private sector, Our experience is that there is still a strong lack of REEEP initiated the Energy Efficiency Coalition, implementation on the ground, since enforcement has which should become a home for all those active in mostly to take place at the local level where awareness this field. The coalition comprises highly respected and the capacity are often missing. The empowerment energy efficiency professionals from India, China, of the local level is in our view something that central Japan, South Africa, the USA, the EU and a repre- governments need to address as a matter of priority. sentative of the IEA. In its first year of activities this May I make a further observation? The relative lack coalition will focus primarily on energy efficiency in of data in relation to energy efficiency practices is buildings, this being the area of particular responsi- still striking. We all know that gathering data is a bility ascribed to REEEP by the G8.’ necessary condition for decisive action. REEEP Marianne Osterkorn, intends to contribute to overcome this obstacle by International Director, REEEP initiating a global status report on energy efficiency 33 which will be available in 2008.

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‘The US Government is very pleased to support the REEEP… We are committed to REEEP first because in its governance and implementation procedures it exemplifies the value of the public-private model.’ Paula Dobriansky, Under Secretary for Democracy and Global Affairs, US Department of State at CSD-15, New York, 2007

ment reflecting the Partnership’s regional speeches and comments were given by the experiences and strong profile in the energy Minister of Energy and Mineral Develop- efficiency sector, with an emphasis on the ment of Uganda; the Under Secretary for need for better data on energy efficiency Democracy and Global Affairs, US Depart- and internal co-operation. ment of State; the State Secretary of the Ministry of Petroleum and Energy of Furthermore, REEEP was granted observer Norway; the Director-General of the status at the Fourth Ministerial Meeting of United Nations Industrial Development the Gleneagles Dialogue on Climate Change, Organization (UNIDO); and the Minister of Clean Energy and Sustainable Development State for Climate Change of the UK. in Japan, which provided a unique opportuni- ty to improve contacts with Japanese stake- The second part of the event was dedicat- holders and decision makers. ed to the presentation of various REEEP case studies addressing this issue, demon- The G8 Gleneagles Plan of Action listed strating how REEEP is instrumental in pro- REEEP as a vehicle to promote energy effi- viding improvements in this area. ciency, in particular for the building sector. In fulfilling this role, in 2007/8 REEEP initi- In addition, REEEP gave a training session ated the generation of a global energy effi- at the UN Learning Centre alongside the ciency assessment report, which will be CSD-15, where the expertise of the published in 2008, and after a sufficient Partnership in the field of green certificate consultation period also initiated the part- systems was highlighted. nering of parties interested in energy effi- At the margins of the CSD, REEEP was also ciency and the formation of the Energy invited to contribute to the events of Efficiency Coalition as described on page 17. UNIDO and the Austrian Govern- ment–endorsed ‘Energy Security through Participation in the Lived Interdependence’. United Nations Process REEEP contributed to the UNFCCC In preparation for the 15th Session of the Intersessional Meeting held in Vienna in Commission on Sustainable Development August 2007 through the joint REEEP (CSD-15), held in May 2007 in NewYork, and UNIDO side event ‘Activities in REEEP provided a large number of sus- Energy Efficiency’ and by offering inter- tainable development case studies, which ested parties detailed information about were used in preparing the Secretary- the Partnership. General’s reports to the CSD and the UN General Assembly. REEEP has started collaboration on innova- tive financing with the technology transfer REEEP was one of the few partnerships, group under the UNFCCC and contributed and the only one dealing with energy effi- to the workshop on technology needs ciency and renewable energy,to be profiled assessment held in Bangkok in 2007. REEEP by the UN during the build-up to CSD-15. is also being considered for possible co- REEEP was prominently presented at the operation by the Expert Group on 34 CSD-15 with the side event ‘REEEP –– Technology Transfer (EGTT) as a potential Delivering Sustainable Energy for Poverty vehicle for capacity building for innovative Reduction and Economic Growth’. Keynote financing in member countries.

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Examples of Ongoing Joint Collaboration

ranging from joint events to project-specific REN21, the international policy network for • co-operation such as UNIDO’s work on ener- renewables, and REEEP have continued to gy management standards, which has now further improve reegle, the information gate- been included in the ISO work programme. way for renewable energy and energy efficien- cy. REEEP was invited to the REN21 Board • MEDREP and REEEP continued their success- meetings. ful collaboration through joint programmes • GVEP and REEEP continued to explore future and supported a new project in the collaboration on both the structural and pro- Mediterranean funded by Italy, enhancing pol- gramme level by negotiating a new icy frameworks to support renewable energy Memorandum of Understanding (MoU). in the Mediterranean region. • GNESD and REEEP co-operated on a series of • IEA is now acting as an observer on the workshops to produce a report on renewable REEEP Governing Board and an IEA expert is energy technologies and energy access, which joining the Advisory Group of the Energy was presented at the UN CSD-15 in New Efficiency Coalition. York in 2007. • REEEP is supporting the World Bank’s • With CLASP, REEEP is working on two initia- Development Marketplace competition on tives started in 2007/8: the labelling of energy innovative and efficient lighting solutions in efficiency products in India; and expanding the Africa. Asia-Pacific Energy Standards Information ICLEI and REEEP continued their close part- System (ESIS) to REEEP priority countries. • nership, in particular in Indonesia with the • REEEP continued its close collaboration on jointly hosted workshop ‘Solutions for energy issues with UNIDO on several fronts, Climate Change’ in Bogor.

In addition, REEEP took an active role in Agency, followed by an active discussion the UNFCCC Conference of the Parties among the participants on how to decouple (COP-13) in Bali. Its side event ‘Sustainable energy use from economic growth. Growth through Energy Efficiency’ attract- At the COP, REEEP gave active input into ed more than 150 participants. various events, such as the Energy The side event included keynote speeches by Efficiency and Carbon Finance Expert high-level representatives from China, India, Group, which seeks to increase the share Germany and the International Energy of energy efficiency in the carbon markets.

‘REEEP works with governments, businesses, industry, financiers and civil society across the world in order to expand the global market for renewable energy and energy efficiency technologies. REEEP is uniquely placed to contribute to international, national and regional policy dialogues.’ 35 Buyelwa Sonjica, Minister of Minerals and Energy, South Africa, at WIREC,Washington, 2008

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‘The Government of Canada is pleased to have worked in collaboration with the Renewable Energy and Energy Efficiency Partnership, or REEEP,to translate the latest version of the RETScreen software into 26 languages, covering some two-thirds of the world’s population.’ John Baird, Minister of Environment, Canada at the UNFCCC/COP,Bali, 2007

On the margins of the COP, the Canadian Asia Regional Secretariat.This event was a Minister of the Environment launched an good opportunity for REEEP to increase important REEEP-sponsored project, its presence in the region. RETScreen, an online feasibility analysis tool, which was translated into 26 lan- guages as a result of REEEP’s contribution. STRATEGIC ALLIANCES REEEP also participated at the workshop Throughout this period, REEEP has con- ‘Understanding the Role of Carbon tinued to co-ordinate and develop syner- Markets and Scaling Up the Financial gies with its partners and with other Response to Climate Change’ in London, organisations and initiatives with which following an invitation from the REEEP has signed a memorandum of Department for Environment, Food and understanding (MoU). Rural Affairs (Defra), UK. The workshop This collaboration has resulted in the fol- was an opportunity for discussions on lowing activities: future aspects of climate change. • REEEP has continued to work with and support the Carbon Disclosure Supporting Regional Project (CDP). This is an important Inter-governmental area of work for REEEP, as the Processes Partnership looks to expand and In Asia and the Pacific, REEEP’s value is also strengthen its co-operation and work recognised. In May 2007,APEC (Asia-Pacific with the private sector and carbon Economic Cooperation) energy ministers markets. For the CDP 2007 report, made a statement that they ‘encourage col- REEEP funded CDP to analyse the laboration with the Renewable Energy and involvement of FT500 (the 500 largest Energy Efficiency Partnership (REEEP) on companies globally by market capitali- financing, policy and regulation’. sation, as published by the Financial Times) in renewable energy and energy Following this, on 5–6 September 2007 in efficiency. The results clearly signalled Hong Kong, the APEC Energy Working that businesses see the financial Group gave REEEP guest status within opportunities of renewables and ener- their process. gy efficiency in the move towards a The UK Foreign and Commonwealth lower carbon energy future. Office (FCO) in Korea, in co-operation • REEEP was present at Pacific energy with the Korean Government, organised talks, including the Council of Regional the event ‘Business Opportunities in Organisations in the Pacific (CROP) Renewable Energy and Energy Efficiency’, Energy Working Group (EWG) meet- 36 which was attended by high-level Korean ing, held in Suva, Fiji, in February 2008, officials and representatives from the to which REEEP was invited in the REEEP International Secretariat and East capacity of observer. The main focus

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‘We encourage collaboration with the Renewable Energy and Energy Efficiency Partnership (REEEP) on financing, policy and regulation.’ APEC Energy Ministers at the EMM8 in Australia, 2007

areas of the meeting were greater Zealand, is also implementing a REEEP co-ordination of funds available in the project in the Pacific to promote solar Pacific for energy projects and the home systems using a micro energy preparation of the next Pacific Energy services company approach. This has Ministers Meeting (PEMM), scheduled the potential to deliver solutions, for April 2009 in Tonga.At the forth- which can be widely replicated in the coming CROP EWG meeting, sched- region and increase energy access. uled for May 2008, the potential theme • The Energy and Environment for the 2009 PEMM meeting will be Partnership for Central America (EEP), a discussed, as well as opportunities for Finnish initiative, and REEEP recognised holding parallel meetings/side events. the potential for close collaboration The CROP EWG is a co-ordination through interactions within the REEEP body of regional programmes and programme development process. projects in the Pacific.The purpose of the CROP EWG is to ensure that regional energy-related programmes are planned, implemented and co-ordi- PR PUBLICATIONS nated through an integrated multi- In addition to regional, political and stakeholder approach. strategic alliances, REEEP strongly • REEEP was present at the PEMM believes in the need for the active pro- meetings held in the Cook Islands in motion of the Partnership by publishing April 2007 and is pleased to be part of comprehensive insights into lessons learned and best practices identified the preparations for next year’s nego- throughout REEEP’s global work. tiations to further the dialogue on sus- tainable energy issues in the region, In 2007/8, REEEP continued to build on the such as innovative financing options success of the previous year, with the gen- and mainstreaming the energy debate. eration of the Annual Report covering the financial year 2006/7. Detailing the • The South Pacific Applied Geoscience Partnership’s mission and objectives, and Commission (SOPAC) and REEEP filled with case studies of local projects cemented their co-operation with the and best practices, as well as updates on all signing of an MoU at the PEMM and at REEEP activities, the report was sent out the Regional Energy Officials Meeting to every REEEP partner and widely dis- (REM).The theme of the meetings was seminated at all fora. The Annual Report ‘Energy Security for Sustainable remains a core element of the Partnership's Development’. The co-operation publications and provides a means of shar- between REEEP and SOPAC contin- ing beliefs and actions with a wider audi- ued throughout the year and is ence and of generating new donors. demonstrated, for example, by the co- In addition, this year saw the publication of development of Clean Development the second Project Profiles book in Mechanism fact sheets in collabora- advance of the COP in Bali in December tion with the Foundation for 2007. Detailing all the new REEEP projects International Environmental Law and and segmented by donor and countries, 37 Development (FIELD). the book acts as a vital reference guide to SOPAC, with funding from New both current and potential partners.

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These two major publications were com- complex task that leverages REEEP networks plemented by several additional communi- at several levels. Changes in policies, regula- cation tools, including a new edition of the tions and financial support are guided by Policy and Regulatory Review of the REEEP’s on-the-ground projects, Regional Sustainable Energy Regulation Network Secretariats, donor activities, and the (SERN), which gives comprehensive cover- International Secretariat’s diplomatic actions. age of the status of policies of 56 countries At the beginning of this fiscal year, the regarding clean energy. Partnership determined a set of communi- Summary flyers were also produced for cation priorities that included: the REEEP Voluntary Carbon Offset • promoting REEEP within inter-govern- Mechanism (VCOM) and the Energy mental processes Efficiency Coalition (EEC). • increasing the profile of finance for energy efficiency • highlighting successes achieved in the COMMUNICATION Work Programme OF REEEP’S MESSAGE • promoting carbon finance Facilitating market conditions to support • enhancing the position of REEEP as a renewable energy and energy efficiency is a leading international partnership.

Chart 12 Geographical spread of REEEP capacity-building activities

80 Russia & FSU 60 40 20 80 East Asia 80 International Secretariat 60 80 Central & 60 Eastern Europe 40 80 North America 80 South Asia 40 60 60 60 20 20 40 40 40 20 20 20

South East Asia 80 Southern 80 80 Latin America Africa & Pacific & Caribbean 60 60 60 40 40 40 20 20 20

38

Events organised, endorsed or co-hosted by REEEP Events with REEEP presentations Events attended by REEEP

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REEEP’s activities were communicated to its ciency in Russia; to develop appliance stan- Chart 13 partners and beyond through an outreach dards in Central America; to use renewable Number of REEEP events 2007/8 programme that used various communica- energy as a solution to the electricity crisis in tion channels to reach REEEP target audi- South Africa; and to provide assistance for 200 ences, including its website, the media, con- drafting new renewable energy legislation for ferences and the REEEP newsletter. REEEP Uganda and Argentina. 180 aims to convert its activities into interesting 160 REEEP’s role as a bridge between govern- news stories, articles and press releases for ments, businesses and NGOs was further 140 the national and international media, and in enhanced and validated as the media 120 particular print and digital media. approached the Partnership for insights 100 REEEP’s coverage in the media grew signifi- into international and inter-governmental 80 cantly, more than doubling,due to a number commitments.The REEEP side event at the of strategic relationships established with CSD-15 in New York received extensive 60 renewable energy and news portals. media coverage, in part due to the brevity 40 Readership rose to over 10 million read- and concise format that the Partnership 20 ers/viewers up from 5 million last year. For uses to communicate key themes. Rather example, the African news portal than release information from the per- AllAfrica.com has more than 5 million page spective of one organisation or govern- views on its website and REEEP had four ment, REEEP’s neutral status allows for a articles there last year. Strategic relation- variety of perspectives –– from Uganda to by REEEP ships were also established with presentations Norway –– to be communicated in a single endorsed or co- Events attended Events organised, Environmental-Expert.com, which has 3.8 news article or press release. The global hosted by REEEP million page views per month; Renewable insights that REEEP provides are unique in Events with REEEP Energy World magazine and website, which the renewable energy media. has more than 400,000 page views per month;and Earthtoys e-magazine,which has Two feature articles on energy efficiency more than 100,000 page views per month. appeared in the Latin Business Chronicle. One article covered the Partnership’s A total of 151 news items (articles and work with the Collaborative Labeling press releases) were placed in the media and Appliance Standards Program during 2007/8 with a total coverage of 242 (CLASP) to establish energy efficiency English-language magazines and websites standards in Latin America based on the (excluding local-language coverage). Of the successes in Mexico. The other total news items, 15 were press releases. described REEEP’s project with the News articles are placed in printed maga- Brazilian oil company Petrobras to zines while press releases tend to appear establish an energy services company on multiple websites and in magazines with (ESCO) to service industrial clients. coverage ranging from eight to 23 publica- tions per press release. News articles are The REEEP Work Programme was high- REEEP’s method of promoting learnings lighted via a variety of feature articles on and best practice as they cover a particular REEEP-funded projects across the devel- theme.A key learning from last year’s activ- oping world. Notable news stories includ- ities was that press releases spread the ed coverage of REEEP’s project in word more widely than news articles, but Guatemala to establish renewable energy they are limited by their brevity.Thus a mix policies; projects in China to promote the of articles and press releases helps to com- co-firing of straw in coal power stations municate both comprehensive learnings to and to advance demand-side management targeted audiences (such as readers of a measures; and a project in Brazil to pro- magazine) and brief news announcements mote models for off-grid renewable ener- to much broader and global audiences. gy production along the Amazon. 39 The media were particularly interested in the Carbon finance was promoted via a number Partnership’s work to improve energy effi- of articles on legal considerations for the

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Clean Development Mechanism (CDM),the coverage of the REEEP call for project role of carbon offsetting, and the role of the proposals was covered by 22 websites CDM in sub-Saharan Africa. Articles were and magazines. REEEP continued to pro- placed in publications such as Project Finance mote relationships and joint activities International, Carbon Business and Oil, Gas & with other energy partnerships, such as Energy Law Intelligence (OGEL). the International Council for Local REEEP’s position as a recognised and Environmental Initiatives (ICLEI), the respected international partnership was Global Network on Energy for highlighted via the production of a dedi- Sustainable Development (GNESD), and cated renewable energy issue for the the International Energy Agency (IEA). Asian Energy Institute’s monthly newslet- The Partnership also highlighted its cau- ter. The Partnership’s co-promotion of tious position on biofuels in a series of the World Bank’s ‘Lighting Africa’ grant four articles that reinforced the need to competition was covered by more than take account of sustainable development 11 magazines and websites, and media issues such as land and water use and the

Regional Secretariat Targeted Workshops

• The REEEP Russia and Former Soviet Union • The REEEP Latin America and the Caribbean Regional Secretariat organised a workshop in Regional Secretariat held its annual preparatory Moscow for European Union and Russian policy meeting in Rio de Janeiro, Brazil. Government makers on climate and energy security. As a and private sector representatives from result of the workshop, an agreement was Argentina, Brazil, Chile, Ecuador, Guatemala, reached recognising the need for further joint Mexico and Peru participated along with REEEP activities and outlining the priority areas for co- project developers and implementers and inter- operation. These include the creation of innova- national development agencies. Energy sector tive financial incentives facilitating the market leaders from Brazil, Latin America and the penetration of climate-friendly energy efficiency Caribbean region were also invited. The feed- technologies; the harmonisation of policy and back from this meeting enabled the Regional regulatory mechanisms in Russia and the EU to Secretariat to provide an update of the pro- gramme’s regional priorities in financing, policy increase energy efficiency and the mitigation of and regulation. A consultation on approaches to climate change; the exchange of experience and the implementation of strategies to promote the development of common methodologies for renewable energy was also organised. energy efficiency and climate change–related statistics, indicators and projections; and adap- • As part of World Environment Week, 7–8 June tation to climate change in the energy sector. 2007, the REEEP Southern Africa Regional Secretariat participated in the Renewable Energy • The REEEP South Asia Regional Secretariat held and Climate Change Summit, an event organised the event ‘Financial Risk Management in by the Western Cape’s Department of Renewable Energy and Energy Efficiency Projects’ Environmental Affairs and Development Planning. in New Delhi alongside the annual Delhi Summit, The aim of the conference was to engage relevant with the objective to help take forward discus- stakeholders in discussions pertaining to renewable sions on the financial risks associated with clean energy initiatives planned for the Western Cape energy projects and to evolve a better under- Province, aiding REEEP-SA to define programme 40 standing of the possible issues and available activities and to provide strategic support and opportunities by bringing stakeholders together intervention related to clean energy implementa- on a common platform. tion in the province. As part of these develop-

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displacement of food crops when consid- CAPACITY BUILDING ering biofuels policy. AND EVENTS The Partnership also successfully publi- International renewables and energy effi- cised governments that provide funding to ciency conferences and fora play a vital REEEP.The Australian Government’s con- role in bringing together key decision mak- ers and high-level participants from all tribution, in particular to the project to areas, including business, government and replace kerosene in the Pacific with renew- project development. In accordance with ables, was given wide coverage by nine its capacity-building mission, REEEP highly magazines and websites. Additionally, the values the opportunities provided by this Irish Government’s funding of a project in kind of event to promote renewable ener- East Africa to produce renewable energy gy and energy efficiency. from hydropower at tea plantations and Through organising, presenting and maintain- from biomass at sugar plantations was cov- ing a significant presence at leading events ered in 13 magazines and websites. throughout 2007/8, REEEP has cemented its

ments, REEEP-SA (in conjunction with ICLEI and Association (CREIA), held in March 2008 in Beijing. Sustainable Energy Africa –– SEA), is currently The event, which attracted around 200 people engaged in planning processes with the City of from government, companies, academies and Cape Town to implement capacity-building pro- institutes, is seen as an important industry stan- grammes for local governments to help them meet dard for renewable energy in China. Government their renewable energy targets. representatives from NDRC, MOST, MOFCOM and • In June 2007, in Singapore, the REEEP South NPC attended the opening ceremony and deliv- East Asia and Pacific Regional Secretariat facili- ered speeches during the conference, and invited tated a consultation with financiers and experts from specific sectors –– including wind, investors: ‘Key Issues for Scaling Up Investment solar, biomass, geothermal and financing –– con- in Renewable Energy’. This event took place in tributed presentations that provided a review of partnership with Chatham House and was spon- sored by the Australian Greenhouse Office and industry development and prospects. UK Trade and Investment. A roundtable provid- • The REEEP Central and Eastern Europe and ed an opportunity for informal discussion among Turkey Regional Secretariat, together with SERN leading financiers, lawyers and investors in the and in collaboration with the Energy Regulators Asian region about the policy and regulatory issues they face in relation to renewable energy Regional Association (ERRA), brought together projects. The event was organised, with other regulators from the region, together with regula- partners, as part of the Renewable Energy tors from Austria and the UK, for a workshop on Finance-Policy Project, at Chatham House, distributed generation (DG). The event took place which is working to bring financiers into the on 6 July 2007 in Budapest, Hungary. Participants renewable energy policy debate, to increase pol- exchanged information and discussed the connec- icy makers’ understanding of financing and tions of DG to their own network, regulations, investment issues, and to improve conditions for incentives, and technical and legislative problems, investment in the sector. together with possible solutions. Future trends • As a co-organiser, the REEEP East Asia Regional for different renewable energy sources and a 41 Secretariat was involved in the Annual Meeting of comparison of their consistency for grid connec- the Chinese Renewable Energy Industries tion were also covered.

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status as a leading player in promoting the vital channel to communicate REEEP’s acceleration of the clean energy market. objectives and goals. The International Secretariat and the eight As shown in chart 13 on page 39, the Regional Secretariats attended more than Partnership itself specifically organised, 194 conferences and events during 2007/8, endorsed and co-hosted a further 81 with a combined total of over 14,000 peo- events,an increase of over 20 from the pre- ple, a significant year-on-year increase. vious year, reaching around 7,000 people. The global nature of the Partnership’s activ- The International Secretariat continued to ities can be seen in chart 12 on page 38. provide an up-to-date comprehensive This chart illustrates the continued focus schedule of all relevant conferences and on the International Secretariat as well as activities through the website and has the increasing regional activities across the actively supported over 15 targeted events Regional Secretariats, in particular in East with formal contra agreements. Asia and South East Asia and the Pacific. REEEP continued to support selected strate- Formal presentations were made at over gically relevant events in 2007/8, such as a 70 percent of these events, providing a series of events under the umbrella‘Research

REEEP Activities at WIREC

The Washington International Renewable Energy As part of WIREC, REEEP hosted a side event Conference (WIREC), 4–6 March 2008, consisted of attended by 140 delegates. The event was moderated a ministerial meeting, a business conference, a by a US State Department representative and includ- trade exhibition and side events. ed keynote presentations by the Minister of State for Environment and Energy, Ireland; the Deputy REEEP was asked by the US State Department to carry out three regional preparatory meetings in Director-General of the Energy and Water Asia, Latin America and the Caribbean, and Department, Norway; and the three Regional Southern Africa, in order to provide regional feed- Secretariats who led the regional consultations for back to the WIREC ministerial meeting. To achieve WIREC. The North American Secretariat then gave a this, REEEP’s International Secretariat worked with presentation on current activities in North America. its three Secretariats in Asia and its Secretariats for Over 8,000 people visited the trade exhibition part Latin America and Southern Africa to design a of the event. REEEP’s booth was well attended and regional consultation strategy, which involved a provided an excellent opportunity for the dissemi- questionnaire and workshops (held in Melbourne, nation of REEEP publications. New Delhi, Pretoria and Singapore). REEEP’s consul- tation process was designed to define the expecta- In addition, in preparation for WIREC, REEEP tions of the various high-level regional renewable worked closely with the event organisers to develop energy stakeholders with regard to WIREC 2008. a WIREC dedicated section on the reegle website. Around 100 high-level participants contributed to As a result of this co-operation, reegle became the this consultation, and the Minister of Minerals and ‘Best Practice Information Tool’ for the event. 42 Energy of South Africa presented findings from the At the WIREC trade exhibition reegle was present- REEEP regional consultations during the ministerial ed in co-operation with the Federal Ministry of part of the event. In addition, REEEP was invited to Environment, Germany (BMU), a major donor to present its partnership work in a separate session. reegle, and formed part of the German Pavilion.

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‘The conference will contribute to advancing the state of the art in collecting and disseminating best practices to end users, building on work done by the UN Commission on Sustainable Development, the European Commission, the US Federal, state and local governments, donor agencies, international financial institutions, the International Energy Agency, and multi-stakeholder partnerships such as .... the Renewable Energy and Energy Efficiency Partnership, or REEEP as it’s known.’ Paula Dobriansky, Under Secretary for Democracy and Global Affairs, US Department of State, at WIREC,Washington, 2008

on Renewable Energy Technologies (RETs) renewable energy and energy efficiency in a and Poverty Alleviation’ in collaboration with fast-growing region of the world. GNESD;and two national-level seminars on a At the Energy Efficiency Global Conference model draft of a Renewable Energy Law for in Washington in November 2007, the India in New Delhi and Chennai. Partnership played a significant role across The Regional Secretariats enhance the event. REEEP was active in the develop- South–South exchanges through specifical- ment of the conference programme in ly targeted activities, some examples of addition to giving the presentation ‘Rate which are shown on pages 40 and 41. Payers and Governments: Investment Models for Success’.A REEEP satellite event International Event was held alongside the main conference in Partnering order to present the Partnership and intro- During 2007/8, REEEP identified several duce the EEC; and a specific exhibition leading global events for targeted partner- stand was set up detailing REEEP’s objec- ship opportunities allowing for specific tives, showcasing several projects, and pro- contributions from REEEP’s expert base. viding interested parties with information. Some examples of these collaborations are This collaboration increased the interna- detailed below. tional profile of REEEP in the energy effi- A REEEP representative served on the ciency field and will be continued with the Advisory Board of the World Future next EE Global Conference. Energy Summit (January 2008) and partici- Another important partnering event took pated in the event, which was hosted by place at WIREC in Washingon. A full Masdar and the Government of Abu description of activities can be seen in the Dhabi. The conference focused on two box on page 42. main areas: a review of the current level of development of renewable energy tech- nology and the extent to which individual REEEP-Specific Events areas were ready for deployment; and REEEP globally organised, endorsed or co- detailed presentations on the Abu Dhabi hosted 81 events during 2007/8 and com- Government’s plans to construct a walled plemented 11 of them with the REEEP or city that will be low energy intensive and reegle exhibition stand. The strategic carbon and waste free. Discussions also importance of four of these events is high- centred around the potential for new con- lighted below. Each event provides a unique structions in the Gulf to be energy efficient platform for important REEEP stakeholder 43 and low carbon. The Summit, which was groups and has the potential for ongoing very well attended, gave a strong boost to replication.

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Wilton Park is ‘woven into the international policy process for renewables and energy efficiency’. A delegate at the Wilton Park conference in the UK, 2007

Wilton Park to influence change, and how the impact of REEEP continued to build on its successful future REEEP projects can be increased. Wilton Park conference programme with an event in July 2007.Under the banner‘Climate Energy Efficiency Finance and Energy Security:Towards a Low Carbon and Investment Forum in Economy’, the event brought together key Collaboration with Euromoney stakeholders from both the public and pri- To support REEEP’s delivery of its G8 remit to act as a delivery mechanism for energy vate sectors with 30 countries represented. efficiency in buildings, REEEP and The conference reviewed the technologi- Euromoney continued to develop their long- cal, policy and financing options for reduc- standing partnership actively to bring ing carbon emissions. Presentations and together the finance community and the discussions clearly illustrated the unsus- energy efficiency industry by convening the tainability of existing energy pathways, the Energy Efficiency Finance and Investment urgent need for new approaches to ener- Forum in London in January 2008.The event gy supply, and the desirability of energy showcased REEEP’s expertise as a global saving through enhanced efficiency. facilitator for energy efficiency and provided opportunities to link the finance sector with British Satellite News filmed the opening stakeholders interested in energy efficiency. and conducted several delegate interviews The event is expected to become a regular with a view to releasing the tape to interna- part of the REEEP calendar. tional media outlets, raising the internation- al profile and, as one delegate commented, REEEP Clean Energy cementing Wilton Park as ‘woven into the Media Award international policy process for renewables The region’s first international media award and energy efficiency’. REEEP aims to main- for renewable energy and energy efficiency tain theWilton Park conference as a gather- was presented at an official ceremony on ing of governmental partners in the future. 17 March 2008 in Zagreb, Croatia.

Project Managers Meeting The award was developed to encourage The Regional Secretariat for South Asia journalists to increase their coverage of hosted the second REEEP Project Managers clean energy topics in the media. Meeting in Delhi, bringing together over 30 The REEEP award ceremony opened the project co-ordinators from 14 different international workshop ‘Promoting Renew- countries with the objective to create a plat- able Energy in South Eastern Europe through form for learning from experiences and to International Co-Operation’, at which develop the network of project managers. national and international experts discussed Held in an interactive workshop format, ways to increase the share of renewables in the event featured presentations on all the the energy mix in the region through inter- projects and specifically investigated how national co-operation. The clean energy REEEP can collaborate with key stakehold- media award should be considered for repli- ers (governments and financial institutions) cation in other parts of the world.

CLOCKWISE FROM TOP LEFT: 44 UNFCCC Intersessional Meeting • CSD-15 side event, New York • EE Global Conference,Washington • REEEP-sponsored Wilton Park event, UK • REEEP Clean Energy Media Award Ceremony, Zagreb • REEEP Project Managers Meeting, Delhi

REEEP Annual Report 2007/8 ADVANCINGTHEGLOBALCOMMUNITY

Regional Representation Political Profile Strategic Alliances PR Publications Communication Capacity Building

45

REEEP Annual Report 2007/8 Evolving Foundations A clearly defined structure and quick and efficient processes are critical for the success of the Partnership’s quest to accelerate the development of the clean energy market.

PARTNERS like-minded stakeholders. This, in turn, opens doors to high-level political con- REEEP is a broad amalgamation of global tacts, increasing project credibility, access representatives from numerous sectors to innovative finance and marketing, and comprising governments, authorities, inter- the sharing of best practices. national organisations, civil society, aca- demics, NGOs, private sector associations The geographical distribution of REEEP part- and a variety of private companies repre- ners covers 71 countries on all continents senting project developers, banks and excluding Antarctica, and shows a balanced other sectors. global spread with a slight bias towards the Among its partners, REEEP counts 38 gov- northern hemisphere. However, it is signifi- ernments, representing 15 percent of the cant that 22 percent of partners originate in total.All the G7 countries and many coun- Asia, the focus of REEEP activities. tries from the emerging markets and devel- Chart 15 on page 49 provides an overview oping world have joined the Partnership. of the geographical location of all REEEP The civil society and NGO sector accounts governmental partners. for 38 percent of all partners, with a fur- ther 32 percent coming from the business sector.A full overview is given in chart 14 on page 49. STRUCTURE Among REEEP’s formal partners are 246 REEEP is a legal entity registered in Austria legal entities, of which 50 –– including three new governments (Hungary, Norway, with the status of an international NGO. Tunisia) –– signed up or declared their REEEP’s ‘constitution’ is based on statutes interest in signing up during 2007/8.A and additional documents that were detailed list of all REEEP partners can be approved at the First Meeting of Partners found in annex E. on 1 June 2004 in Bonn.Accordingly, REEEP has a robust and transparent governance Each partner strongly endorses REEEP’s structure comprising three acting bodies: mission statement and is expected to con- the Governing Board, the Programme tribute to the Partnership’s goals through Board and the Finance Committee. At the time, expertise, information, in-kind contri- first MOP a delivery structure was decided, butions and, in the best case, donations. which includes Regional Secretariats/ Focal The Partnership’s rapid growth and ever- Points and the International Secretariat. increasing awareness ensures that such a Chart 16 on page 50 shows the organisa- 47 relationship can be mutually beneficial, tional structure, including Regional Steering providing access to a global network of Committees (implemented in 2005/6).

REEEP Annual Report 2007/8 EVOLVINGFOUNDATIONS

Partners Structure Governance Programme Information Implementation Evaluation

We are committed to working with partners from governments, business, finance and civil society around the world to expand the global market for renewable energy and energy efficiency.

The Renewable Energy and Energy Efficiency Partnership (REEEP) is a Type II World Summit on Sustainable Development partnership providing a new and flexible way of working together to achieve common goals.

Through REEEP we will share knowledge, communicate across national boundaries and work to spread best practice in order to overcome the barriers to the development of renewable energy and energy efficiency. We believe that REEEP will help its partners achieve a sustainable energy future.

Mission Statement

The detailed responsibilities of all gov- agreed contracts which define measurable ernance bodies, including Boards, deliverables. This principle also applies to Committees and Secretariats, are the Regional Secretariats, whose contract- described in the box on page 51. ed deliverables help to build the network’s knowledge base and improve the regional infrastructure and capacity. Targets, quan- tifiable deliverables and fiscal austerity all GOVERNANCE SUPPORT contribute to REEEP’s aim to accelerate The task of the International Secretariat is the sustainable energy market worldwide. to maintain and strengthen the network Cohesion and information flow within the delivery structure, to guarantee transpar- network of Regional Secretariats is ent and efficient procedures and to pro- enhanced through a layered approach vide strategic guidance to the network. involving the network and the various gov- REEEP’s financial management seeks to ernance bodies. Global REEEP staff are maximise the use of donor funds in line involved in regular conference calls and the with the Partnership’s priorities. A regular Regional Secretariats meet annually during income and expense reporting system the same week as the Programme Board informs the Governing Board about the meeting. Quick decision making, hands-on 48 actual financial situation against the guidance and support is guaranteed through approved budget.All costs must fall within the biannual Governing Board meetings.

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Partners Structure Governance Programme Information Implementation Evaluation

The growth of the Partnership and the sig- On 2 October 2007, the Programme Chart 14 nificant global outreach achieved have been Board set the Partnership’s work priorities REEEP partners by sector facilitated by intense diplomatic support for 2008/9.The Programme Board meeting from donor governments. In 2007/8, the was preceded by preparatory meetings in Third Meeting of Partners took place in each region. Washington, where the future development of the Partnership was approved and a new Thereafter,on 19 October 2007, a meeting NGOs 38% Governing Board elected for the next four of the Finance Committee, in the form of a years. At this meeting, the Chair of the conference call, comprising all donors, Governing Board, Mr Henry Derwent, approved the programme priorities as laid Businesses 32% resigned. Mr Derwent provided excellent out by the Programme Board. guidance to the Partnership over the last four years and will remain a member of the Board. It was decided that the new Chair will be his Defra successor. PROGRAMME Governments Within 2007/8, two Governing Board MANAGEMENT 15% meetings were convened. The seventh REEEP operates a professional and flexible Higher education Governing Board meeting took place in facilities 3% New York alongside the CSD-15 in May programme management framework to 2007, and the eighth in Bali in December ensure a transparent project appraisal and Regional government agencies 5% 2007 alongside the UNFCCC/COP,where selection process, and provides continuous Central government a detailed discussion took place on the monitoring and evaluation throughout the ministries and agencies 4% future strategy of REEEP. lifecycle of a project. Multilateral organisations and programmes 3%

Chart 15 Global distribution of REEEP government partners Oceania 3% LatinAmerica and Caribbean 8%

Africa 14% China 16% NorthAmerica Asia 18% 22% Other Asia 43% India Europe 41% 35%

Global distribution Distribution of of total REEEP partners partners in Asia

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Partners Structure Governance Programme Information Implementation Evaluation

Chart 16 REEEP governance structure Meeting of Partners/ General Assembly Henry Derwent

Programme Board Morgan Bazilian Governing Board Auditors Henry Derwent Finance Committee James Cameron

Focal Point Northern Africa International Secretariat Focal Point West Africa MEDREP Marianne Osterkorn ECOWAS

International Steering Committee

RS Latin America RS Central & RS Russia & FSU RS South Asia RS East Asia RS North America RS Southern Africa RS South East Asia & the Caribbean Eastern Europe RREC TERI CREIA ASE/ACORE AGAMA & Pacific REC OAS BCSE Regional SC Regional SC Regional SC Regional SC Regional SC Regional SC Regional SC Regional SC

Chart 17 The project process consists of four steps The final project selection is completed by REEEP project process as shown in chart 17: an International Selection Committee, and approved by the Programme Board and • Review of Programme Frame- Finance Committee to guarantee that the PHASE I work, including review of both pro- annual programme priorities are reflected. Review of Programme Framework gramme priorities and project REEEP, DONORS procedures. There is a continuous cycle of monitoring, • Selection of Projects, incorpo- evaluation and learning, providing feedback rating the calls for bids, bid submis- from existing projects to aid the establish- PHASE 2 sion, short-listing, submission of full ment of best practice. Selection of Projects proposals, appraisal and evaluation, REEEP, DONORS, PARTNERS final selection, feedback and result communication. • Project Implementation and PROGRAMME MANAGEMENT PHASE 3 Monitoring, featuring contracting, implementation, controlling, project INFORMATION SYSTEM Project Implementation & Monitoring completion, feedback and result com- REEEP is phasing in an internet proto- REEEP, PARTNERS munication. col–based Programme Management • Project and Programme Eval- Information System (PMIS) to automate uation, comprising documentation the project cycle, increase transparency PHASE 4 and the evaluation of feedback, and improve efficiency at all levels.The sys- tem was developed in consultation with Project & Programme Evaluation reports, deliverables, programme per- the donors and other stakeholders. The REEEP, DONORS formance and International Secretariat PMIS is expected to allow the project performance. implementers, Steering Committee mem- The process incorporates all levels of the bers and Secretariats to manage their REEEP governance structure, with the respective roles in the project cycle from Regional Secretariats and their established their own workplaces within a secure envi- 50 Steering Committees playing a key role in ronment. For the first time, all REEEP pro- short-listing proposals ensuring that region- gramme donors will also be able to moni- al experience and knowledge are captured. tor the status of the projects they have

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Partners Structure Governance Programme Information Implementation Evaluation

funded remotely. The first phase of this the predetermined outputs contributing development is being completed and all towards planned outcomes and impacts. the 37 projects being implemented under the Sixth Programme Cycle have been Each project is closely monitored through automated. An overview of the PMIS is a combination of both financial and physi- provided on page 52. cal reporting methods, which are forward- ed to the International Secretariat for final The second phase, covering the project approval and payments following discus- selection processes, will be completed in sion with the Regional Secretariats. time for REEEP’s Seventh Programme Cycle. The PMIS will allow REEEP to carry out The objective of financial report- more policy and strategic research based on ing/monitoring is to ensure that the grants the activities and outputs of its programmes. from REEEP and its donors are utilised for the intended purpose, and that the expen- ditures are consistent with the submitted budgets and follow professional procure- ment and accounting practices.All projects IMPLEMENTATION submit a financial progress report every AND CONTROL three months containing all relevant details All projects are implemented according to with supporting documentation and a an agreed schedule and in order to achieve financial summary.

Responsibilities of REEEP Bodies

The Meeting of Partners (MoP) is the assembly of all priorities, offers guidance to the International partners and meets every other year. It is the highest Secretariat based on the feedback from project decision-making body within the REEEP structure. implementation and recommends projects to the Finance Committee. The PB is currently chaired by The Governing Board (GB) consists of a minimum Morgan Bazilian of Sustainable Energy Ireland. of six and a maximum of 19 partners, reflects the multi-stakeholder nature of the Partnership, and The Steering Committees (SCs) are groups of stake- includes a geographical spread broadly representa- holders in the regions consisting of experts, NGOs, tive of its activities. The Governing Board is respon- governmental representatives and businesses. The sible for the conducting of the business of REEEP in SCs’ main function is to contribute to the develop- accordance with its statutes. For the year 2007/8 the ment of the regional REEEP action plans and to the GB was chaired by Henry Derwent, UK Department selection of regional projects for funding. of Environment, Food and Rural Affairs (Defra). The International Secretariat (IS) is the central The Finance Committee (FC) consists of all donors service hub of the Partnership, responsible for dis- with an annual contribution to REEEP of at least seminating information, servicing the bodies of the €70,000. It liaises closely with the donor community governance structure, and providing guidance and and the business and financial sectors. The FC over- support to the Regional Secretariats. sees the finances of REEEP’s institutional bodies as Regional Secretariats (RSs) have been established in laid out in the Financial Rules and Regulations. It five countries. They are contractually bound to pro- gives recommendations to the Governing Board on vide local support to the Partnership, to ensure that financial aspects of the REEEP governance structure regional demand drives the activities of REEEP, and and Work Programme, as well as opportunities for that REEEP objectives are achieved in the regions. fundraising. The FC is currently chaired by James Cameron of Climate Change Capital. Regional Focal Points are voluntary representatives of REEEP. The Programme Board (PB) consists of sustainable 51 energy experts from REEEP regions together with The REEEP bodies guarantee the governance of the donors. It defines and revises REEEP’s programme global delivery structure.

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PMIS

OBJECTIVES KEY OUTPUTS • To set up a system for programme data sub- • Training and productive system: the training mission: regular, commissioned, strategic system can be used for group/individual projects and events. This includes project training. The productive system has been data definition; timeline and budget planning; implemented for use by all sixth-call projects. definition of evaluation criteria and project New version of the Project Line document outputs; and tracking. • together with User Manual: the Project Line • To automate programme framework process- document will be updated to reflect changes es: automation of programme processes and in the programme and project workflows. phases; integration of main roles and partici- System user documentation will be included pants; support to the project appraisal and in the Project Line. evaluation process; support to project imple- Online and offline project documents and mentation; tracking and progress reporting; • reports: reviewed and reworked project doc- support to project communication and uments (e.g. contracts) and reports (e.g. acknowledgement; project change procedure progress reports). and review process. Glossary: with REEEP business and IT solu- To establish system-based reporting: portfo- • • tion terms. lio reporting, project progress reporting, project evaluation reporting, and transferring • Tutorials: system tutorial to help new users of project data for communication to exter- to understand and learn the concepts and nal resources (websites, communication por- system. tal, Excel lists). • Integration with new website and community platform: common organisation and user management. Project information to be pre- sented on the website and portal.

The monitoring of the physical progress of a pendent experts, which assesses the project is to ensure that the project activities achievements, the implementation process are carried out in a result-orientated and and the project impact. Again, the reports time-bound manner and that the proposed are reviewed by the Regional Secretariats outputs have been achieved. The project before submission to the International progress reports provide details of outputs, Secretariat for final payment. outcomes, timing, risks, approach, media The final stage of the project review pro- activity and a summary of overall progress. cedure is the impact assessment, carried Once the project has been completed, the out after the submission of the evaluation project teams submit the final project and report and at a time agreed between REEEP and the implementing agency. An financial progress report, including copies independent expert selected by REEEP will of the project outputs. carry out the impact assessment focusing 52 A project evaluation report will also be on the actual impacts on renewable ener- developed, often in association with inde- gy and energy efficiency markets.

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This process is refined annually according to • A future REEEP strategy requested by programme priorities, and REEEP continu- the seventh Governing Board meeting ously reviews the channels of delivery to is under consultation and will be pre- provide the most effective impacts both sented to the Governing Board meet- immediately and in the longer term. ing in June 2008. • In the sixth call, amendments to the programme were already implement- IMPLEMENTING ed, such as replication, commissioning EVALUATION and governmental co-operation. RECOMMENDATIONS • Increased support for the Regional Secretariats has been put in place. In May 2007,at the seventh Governing Board meeting, a number of structural, procedural • The involvement of partners has and programmatic changes were approved increased through targeted gatherings for implementation following the recom- for specific partner groups (Wilton mendations of the two evaluations carried Park, PM meeting, EE Investment). out in 2006/7. • Better communication was supported Both evaluations identified REEEP as an ener- through a newly designed website and gy partnership with a huge potential for act- community platform. ing as a market transformer towards clean • REEEP’s unique position in the energy energy. This can be accelerated through efficiency field was leveraged through implementing the recommended improve- the establishment of the Energy ments, which focus on advanced infrastruc- Efficiency Coalition. ture and more targeted programme actions. The invaluable contributions of these eval- The actions required in order to implement uations have shown that repeated external the recommendations were almost all com- assessment should be an integral part of a pleted during 2007/8: partnership lifecycle.

2006/7 REEEP Evaluation

POSITIVE PICTURE RECOMMENDATIONS FOR IMPROVEMENTS • Vital and very active partnership. • Increase programmatic and targeted • Excellent communication and branding. interventions. • Wide range of different project activities. • Enhance co-operation with governments and F1s. • Good governance and professional operation. Strengthen regional outreach and presence. • Well established in the political arena. • Increase involvement of partners. • Strong diplomatic support. • • Improve communication tools. • Strengthen the unique position REEEP has in EE.

THE NEW REEEP STRATEGY WILL DIRECT THE PARTNERSHIP’S FUTURE ACTIONS. 53

REEEP Annual Report 2007/8 Financial Analysis 1 April 2007 – 31 March 2008 2007/8 was another successful year for REEEP with Defra/UK, Norway and several other governments continuing their valuable support. In addition,Australia has agreed to contribute to future project funding.

REEEP moved from Income and already seen in previous years.This is part- Expenditure Accounting to Accruals ly due to the change in the conversion rate Accounting, following accounting stan- of the British pound to the euro towards dards for Austrian registered organisations the end of the financial year 2007/8, which with an annual turnover of more than €1 reduced the overall euro value of the million during two consecutive years. This British donation by approximately represents a move towards internationally €100,000 as compared to the preceding recognised accounting standards for large year, although funding in British pounds organisations. remained the same. Payroll accounting continued to be per- Another reason is the increased share of formed by an external tax advisor. donations from other governments, in Annual financial audits were carried out by particular the Norwegian contribution of PricewaterhouseCoopers and the results €1,261,430.45. Other significant contri- will be reported to the Governing Board butions have been received from through the REEEP internal auditor in June Australia, Austria, Canada (including the 2008 and again at the next biannual donation for 2006/7), Germany, Ireland, Meeting of Partners. Italy, the Netherlands, New Zealand, Spain and the USA.

FUNDING AND OTHER INCOME EXPENDITURE Cash in the bank (including petty cash) REEEP expenditure in 2007/8 amounted to brought forward from 2006/7 was €4,221,679.69. Besides network support €7,811,227.16 as of 1 April 2007. and expenditure for Regional Secretariats, this figure includes project-related expendi- In 2007/8, REEEP received €5,681,986.85 in ture of €2,786,002.52, which shows an new funds plus interest for the financial increase of around 42 percent compared to year 2007/8. Funds received from the vari- the previous year. This significant increase ous government donors matched the was due to the final payment disbursement planned figure of €5.6 million. to the 19 projects successfully completed Of the total funds received, the UK (Defra) during 2007/8. In addition, the more than 30 provided €3,503,998.10, which accounts new projects that began in the Sixth 55 for 61.7 percent.This continues the decline Programme Cycle already received first pay- of the UK share of REEEP total funding ments during this financial period.

REEEP Annual Report 2007/8 FINANCIALANALYSIS

Funding Expenditure Assets and Liabilities Financial Overview Financial Estimates Fundraising Risk Registry

Chart 18 amounted to €10,353,967.48. This figure Overview of donor contributions (in €) includes carbon offset–related Trustee Funds of €534,655.64. Depending on expected payout dates, a part of these 4,000,000 funds has been placed in fixed deposit accounts for up to three months. 3,500,000 2007/8 Liabilities amount to a total of €8,983,905.74. 3,000,000 2006/7 Of this amount, €7,702,078.82 are commit- ted to ongoing regional and strategic projects 2,500,000 2005/6 (including carbon offset); €315,507.48 are accounts payable; €249,034.58 are outstand- 2004/5 2,000,000 ing payments to Regional Secretariats for 2007/8; €573,770.23 are reserved for financ- 1,500,000 ing the network operation during the residual 1,000,000 period of ongoing calls; and €143,514.63 are for other provisions. 500,000 This leaves REEEP with net financial assets of €1,370,061.74, which can be carried for- ) s a a a y y y S n d a i i l C s i h d a l d n O r d ward for operations in 2008/9. n r a r a U f E c n a a a t n t i a w C p e l o I r a s / a r n l r t l a F S m n u a ü D s e r o , r e o U r , u e A Z e C I K Z d E N h K A G t U s H U w e s T e e N E n N i / s

u FINANCIAL OVERVIEW A b ( M I PricewaterhouseCoopers audited the bal- A

N ance sheet as of 31 March 2008 and the profit and loss account for the year 2007/8 and stated in the annual Auditing Report Chart 19 In spite of increased project activities it was that the accounts are properly kept with REEEP liabilities possible to maintain the same level of net- no discrepancies or irregularities, and that work expenditure (€1,435,677.17), includ- donor funds were allocated and used in ing payments to the Regional Secretariats, accordance with contract requirements. as during the previous year. The high standard of financial management of REEEP was acknowledged. Projects not invoiced including Trustee Funds To provide consistency in presenting the 73% key financial figures of the Partnership, ASSETS AND LIABILITIES chart 20 ‘Receipts and disbursements’ is Equity presented according to the same structure 15% The new accounting system ensures the as in previous years. The REEEP balance enhanced transparency of assets and liabil- sheet, as presented in the annual Auditing ities in the REEEP balance sheet. Report, is available on the REEEP website. REEEP’s assets are the reegle search engine, with a total purchase value –– including development costs –– of €303,228.53; the new Project Management Information FINANCIAL System (PMIS), with a purchase value of ESTIMATES 2008/9 Accounts Payable 3% €89,120.08; and other assets (notebooks) For the financial year 2008/9, contributions of €2,387.79. The residual value of these Provisions 1% totalling €1.7 million have been confirmed assets after depreciation is €240,140.65 as Network Support and by Austria, Australia, Germany, the of 31 March 2008. Reserve Regional Secretariats 8% Netherlands, Norway, Italy and EURIMA (a Total financial assets (bank accounts and business donor willing to contribute to 56 accounts receivable) as of 31 March 2008 funding REEEP’s energy efficiency agenda).

REEEP Annual Report 2007/8 FINANCIALANALYSIS

Funding Expenditure Assets and Liabilities Financial Overview Financial Estimates Fundraising Risk Registry

In addition, at the Gleneagles Dialogue Chart 20 meeting in Japan in March 2008, the UK Statement of receipts and disbursements announced the continuation of REEEP funding for the next three years with a con- 2007/8 2006/7 firmed allocation of £2.5 million planned for 2008/9. RECEIPTS €€ General donations 1,752,890.40 1,364,231.81 Provided that other donor governments Project-related donations 3,929,096.45 5,159,572.94 continue their support to the Partnership, 5,681,986.85 6,523,804.75 an optimistic estimate of total financial DISBURSEMENTS income in 2008/9 is €5.5 million.This figure Network support is subject to currency risk due to the high Personnel expenses (426,438.83) (368,139.30) value of the euro. Public relations and advertising (195,360.61) (196,386.60) With project contributions received dur- Travel expenses and servicing Board (85,963.98) (86,272.07) ing the preceding year and expected funds, IT support (67,117.90) (72,289.38) around €2.9 million will be available for Central activities (29,452.20) (42,000.00) funding new regional projects in 2008/9. Office rent (35,940.36) (38,987.07) Despite major improvements regarding out- Accounting and legal expenses (52,173.07) (21,956.99) reach and quality of impact,expenditures for Telecommunications (23,355.54) (15,802.34) network support and regional presence will Bank charges (4,766.09) (6,750.53) remain within the margins of previous years Office supplies (6,933.35) (4,762.33) and will amount to €1.5 million. For central Transportation and postage (1,956.43) (1,130.90) and strategic activities, around €1 million Other 0.00 (3,283.97) newly allocated funding is planned in 2008/9. (929,458.36) (857,761.48) Regional Secretariats (506,218.81) (567,241.87) Project-related expenses (2,786,002.52) (1,957,036.59) FUNDRAISING Subtotal 1,460,307.16 3,141,764.81

During this financial year all government Other interest and similar income 265,758.01 104,742.29 donors continued their contributions to Withholding tax (66,061.23) (26,183.70) REEEP. In addition, it was possible to re- establish donor relations with Canada, and Excess of receipts over disbursements 1,660,003.94 3,220,323.40 Australia pledged to become a new project donor in 2008/9 for the next three years. For the first time, the Partnership received funding from the private sector through cessful operation faced by REEEP. It was contributions received from EURIMA/ based on a systematic analysis conducted NAIMA, two organisations representing by key stakeholders within the Partnership. the insulation industry in Europe and At its meeting in NewYork in May 2007, the North America.This funding was allocated Governing Board was informed about the to support the activities of REEEP in the continued risk, and proposed detailed coun- field of energy efficiency. termeasures to tackle each risk area. Continuous efforts are being made to It was reported that the three most press- attract more private sector donors and to ing issues have remained the same since further increase governmental funding. the inception of the analysis.These are the lack of long-term funding, the failure of projects and strategic activities to achieve expected impacts, and the danger of RISK REGISTRY reduced diplomatic support by donor gov- The registry was developed in order to ernments. The countermeasures to tackle these risks were implemented. visualise the importance of the risks to suc- 57

REEEP Annual Report 2007/8 Future Outlook REEEP will concentrate on replication and targeted actions to reduce greenhouse gases and enhance development.

To ensure the successful implementation of this strategy, the Partnership will undergo continuous evolution.

In order to replicate and scale up past suc- • Build on its high level of recognition in cesses and leverage impacts, REEEP will: the political and business arena by • Continue to expand its balanced portfo- increasingly engaging in advocacy activ- lio and enhance collaboration with key ities which will focus on promoting and drivers of energy market transformation scaling up the outputs of its activities. such as governments, local authorities, • Ensure sustainable growth and impact utilities and finance institutions. by strongly emphasising the level of • Continue supplementing regional ownership of its key donors and by actions through commissioned proj- making the Partnership attractive for ects and strategic activities to increase prospective donors. impact and ensure the spread of les- sons learned. • Improve its regional delivery structure and process, ensuring the objectivity, • Enhance its role as a driver for clean effectiveness and quality needed to stim- energy technology transfer by foster- ulate regional market transformation. ing financing mechanisms enabling change. The new REEEP 2008/9 strategy will pro- • Meet future challenges and utilise vide detailed guidance for the future devel- upcoming opportunities by remaining a opment of REEEP and will be a directive for flexible learning partnership ready to the Partnership’s programmatic, geographi- adjust to its environment. cal and technological focus in the future.

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REEEP Annual Report 2007/8 Annexes Reflecting the Partnership’s success in engaging new donors and the rising profile of sustainable energy in general, REEEP’s budget has trebled to €3 million since its founding.

2005 over €1,000,000 Single donor: UK Priority countries: 6 Number of projects: 18 (4 ongoing, 14 completed)

2006 over €2,000,000 Three donors: UK, Ireland, Italy Priority countries: 20 Number of projects: 29 (11 ongoing, 18 completed)

2007 over €3,000,000 Five donors: Norway, UK, Ireland, Italy, New Zealand Priority countries: 49 Number of projects: 37 (all ongoing) Piloted replication of projects Piloted commissioned projects Piloted projects with governments and development financial institutions

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REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX A

Ongoing Projects

REEEP’s portfolio of ongoing projects consists of 37 projects from the current Sixth REEEP Programme Cycle implemented during 2007/8 as well as 15 projects from previous rounds that had not yet reached the stage of formal completion by the end of the period covered by this report.

I cial barriers that hinder rural biomass devel- other parts of the world, including taxes, Sixth Programme opment will be identified and analysed. subsidies, soft loans and other incentives Cycle –– 2007/8 Furthermore, measures to remove these such asTradableWhite Certificates (TWCs), barriers will be addressed in the action plan. the Programmatic Clean Development Mechanism (CDM) and the voluntary emis- NORWAY: The project will be managed by Energy and Environmental Development (EED) and will sions reductions (VER) market. National Action Plan be implemented in co-operation with sev- The project will also assess the suitability of for Rural Biomass Energy eral other important renewable energy ini- proposed mechanisms for China and will tiatives, including the National Large and in China investigate key issues, such as which actors Medium-Scale Biogas Project, the Energy (EED Consulting, October 2007 should be targeted by measures (e.g., build- – present) Crop Utilization Development Plan and the Integrated Renewable Biomass Energy ing residents, district heating companies), as The REEEP-funded project will develop a Development Project funded by GEF in well as links to other policy objectives, such national action plan for rural biomass order to provide a comprehensive account as improved living conditions for residents. renewable energy in China, with supporting of the national action plan’s impact on sus- While market-based mechanisms, such as documentation.The national action plan will tainable energy utilisation. the CDM, have resulted in the development include detailed measures to enable China of many large, industrial-scale energy effi- to achieve its biomass development target ciency projects in China, there has not yet in the mid and long term, as set out in the Using Financial and national strategy, as well as measures to Market-Based Mechanisms been a similar uptake of projects involving reduce greenhouse gas (GHG) emissions. to Improve Building energy efficiency improvements to buildings. Energy Efficiency in China A roadmap for improving building energy Although the national strategy for rural bio- (ESD Ltd., July 2007 – present) mass development will be established with efficiency in China through the use of finan- financial support from the Asian Financial and market-based mechanisms cial and market-based mechanisms will be Development Bank (ADB), there is no com- provide a way to increase the take-up of made available to the Natural Resources prehensive action plan specifically designed energy efficiency measures in buildings in Defense Council (NRDC), in consultation to direct rural biomass development in China. The REEEP project, managed by with key stakeholders including the Energy 62 China.An action plan needs to be formulat- Energy for Sustainable Development (ESD), Research Institute (ERI), the designated ed in order to achieve the target set in the will consider appropriate financial and mar- national authority (DNA) in China, and strategy.The technological, policy and finan- ket mechanisms being developed or used in CDM and VER project developers.

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Buildings in China currently account for than 3.2 million people will have access to Removal of Financial over 40 percent of China’s total energy use energy,2.1 million tonnes of CO2 will be off- and Institutional Barriers and this is expected to rise. China has tar- set annually, and more than $120 million in Mainstreaming the gets to reduce energy consumption per unit third-party capital will be mobilised. Biomass Gasifier Systems of GDP by 4 percent per annum between for Thermal Applications 2006 and 2010, and tackling energy efficien- Development of a Business in India cy in buildings will be a key route to achiev- (TERI, October 2007 – present) ing these targets. Plan & Financing Mechanism for a Rural Distributed The project will scale up an existing biomass Electricity Generation (DG) gasifier financing mechanism through the E+Co West Africa Modern System Based on Biomass creation of a revolving fund for gasifier man- Energy Fund (DSCL, October 2007 – present) ufacturers in India. The project team will (E+Co, October 2007 – present) A commercial distributed electricity genera- bring together banks, manufacturers, users The project will lead to the creation of a tion (DG) business can be developed based and local service providers (LSPs) to edu- $12 million investment fund forWest Africa, on the gasification of low-density biomass. cate them on financing options for biomass initially targeting Ghana, Mali and Senegal. Development requirements include technol- gasifier technology. The EC-led Global Energy Efficiency and ogy, financing mechanisms, capacity building The Energy and Resources Institute (TERI) Renewable Energy Fund (GEEREF) intends at the local level,and a business plan for rural has initiated a financing pilot for biomass to act as a lead investor, committing ahead energy service companies (RESCOs). The thermal gasifier systems through TERI of other investors that are short-listed.The project aims to develop all these modules licensee manufacturers.To date, 14 biomass fund plans to make investments into 76 around a pilot project to be established in a gasifier systems have been financed during small and medium-sized enterprises (SMEs) rural area. the current year. Based on this success, in the region. Beginning with a review of DG programmes manufacturers from outside theTERI licens- The REEEP-funded E+Co project will operating in India and other South/South ee network are requesting financing for finalise the business plan, including a market East Asian countries, a feasibility analysis will their systems. assessment in Ghana, Mali and Senegal, and be conducted to determine business attrac- The fund will provide the initial capital for will complete negotiations with GEEREF,the tiveness, considering market potential and acquiring gasifier systems with flexible EC-sponsored $140 million fund-of-funds. resource availability. A bankable project terms and conditions.The fund will also off- The project will also raise co-funding from report will be prepared on the basis of the set the risk involved with the technology investors in Europe, Africa and North inputs from the literature survey and the during the initial stages of market penetra- America and will work with local banks in results of the pilot project. Based on individ- Ghana, Mali and Senegal to co-finance SMEs. tion. By arranging equipment leasing ual interactions with relevant banks regard- through the manufacturers and direct It will also expand the existing pipeline of ing the project report, appropriate financial SMEs through the provision of enterprise financing to users, the savings from reduced products and delivery mechanisms to sup- energy costs will be used to repay the loans. development services to potential SMEs. port RESCOs will be developed and pre- In addition, the fund will build on the work sented at a stakeholders’ workshop,the out- It is expected that 30 biomass gasifier sys- of the United Nations Environment come of which will be used to give final tems of various capacities (10–300 kg/h) will Programme’s African Rural Energy shape to the financing mechanism.The busi- be financed. Enterprise Development (UNEP’s AREED), ness plan will detail resource assessment; the programme that introduced the inte- market potential; project configurations; NORWAY AND grated model of clean energy SME invest- project financials, including financing mecha- THE UNITED KINGDOM: ment capital and enterprise development nisms; and organisational arrangements, services to the region. It will also replicate including training development. Creating Scalable Financing the model of, and lessons learned from, the Models for Sustainable Energy The project is expected to enhance rural Central American Renewable Energy and Services via Financial and energy access and clean energy network Cleaner Production Facility (CAREC), a Micro-Finance Institutions expansion, with the accelerated investment Central American investment fund for clean (SELCO Solar Light Pvt. Ltd., in distributed energy systems supplementing energy SMEs,and will explore links between October 2007 – present) efforts on grid expansion in India to meet micro-credit and SME financing (e.g., the the target of ‘Energy for All by 2012’. It will The project will create replicable innova- REEEP-funded project in India with SELCO also have a positive impact on the environ- tive financing models for energy financing Solar Light and SEWA Bank). ment through reduction in GHG emissions in co-ordination with regional banks and 63 The expected impact of the project over the and will contribute to poverty alleviation micro-finance institutions in Karnataka ten-year lifespan of the fund is that more and the improvement of quality of life. and Gujarat. It will influence policy mak-

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ers, such as the National Bank for CLASP’s assistance to Indian S&L has previ- energy project developers. CETC-Varennes Agriculture and Rural Development ously been supported by the United would now like to address financial and legal (NABARD) to create separate portfolios Nations Foundation, USAID, and the US documentation barriers. for renewable energy. Environmental Protection Agency (USEPA). In addition, GTZ has funded S&L outside The project will develop documents to fill The absence of appropriate financing and CLASP.At present, only USEPA is commit- legal documentation gaps within the lack of earmarked portfolios for energy ted to continue support for S&L in India. RETScreen software and the project team services has prevented potential entre- will customise them for a pilot project in preneurs and end-users from marketing In addition to the development of labels, China, India or Brazil. An experienced team and buying energy services. Financing the project will enhance consumer of energy finance attorneys have agreed to energy services requires extraordinary demand and the market for energy-effi- contribute and draft legal documents for this flexibility for Indian financial institutions cient refrigerators and air-conditioners. pilot effort.Most work involves revising doc- and this project aims to demonstrate Furthermore, it will quantitatively docu- uments such as power purchase agreements those flexibilities. ment impacts and/or potential so that the (PPAs); loan and security agreements; opera- actual effect of the work can be calculated. Working with local banks, the project tion and maintenance (O&M) agreements; The project will also focus on reaching out team will create ten programmes for and project partnership agreements. training representatives of financial insti- to consumers directly through the net- tutions. The design of the training pro- work of grassroots NGOs. grammes will be based on five different India is leading the S&L harmonisation Gold Standard (GS) Local financial models developed from energy effort in the South Asian region. Standards Experts Programme service projects conducted in the region. and labels for products that conform to (The Gold Standard Foundation, August 2007 – Previously, UNEP provided one type of European standards have direct replication present) financing for solar home lighting systems potential in the region. Initial discussions with two banks in the state of Karnataka. have already been held in the region Carbon credits require a high degree of regarding the potential for harmonisation This programme has been restricted to sustainability, transparency and additionali- within the region under the umbrella of two banks and to only one state in India. ty to ensure the quality demanded by com- the South Asian Association for Regional Nobody has yet attempted to target inno- panies and governments. REEEP has been Cooperation (SAARC). vative financing for energy services and/or supporting the Gold Standard (GS) for to address the need to create policies and The total avoided CO2 emissions in India as three years, since GS certified/voluntary training for scale-up and replication a result of S&L for the products in this pro- emissions reductions (CERs/VERs) exclu- beyond one state. posal is expected to be 400,000,000 tonnes. sively employ renewable energy (RE) and energy efficiency (EE) technologies that Technical Support to Energy Standardized Financial have additional sustainable development Efficiency Standards and & Legal Documentation benefits. Current demand for GS credits Labelling in India for RETScreen exceeds supply. The supply gap is exacer- (CLASP, November 2007 – (CANMET Energy Technology bated by a local knowledge gap regarding present) Centre-Varennes, February CDM finance and project development as 2008 – present) The Collaborative Labeling and Appliance well as a lack of understanding of the GS Standards Program (CLASP) will assist the The project will significantly reduce pre-con- methodology. Bureau for Energy Efficiency of India to struction financial and legal transaction costs The project will build local expert capacity develop standards and labels (S&L) for for clean energy projects by establishing a in RE/EE project finance and development refrigerators and air-conditioners. The standardised financial and legal document in Brazil, China, India and South Africa and, Indian Government has made a public knowledge management system integrated via the GS experts, will realise eight RE/EE commitment to the implementation of the with the RETScreen Clean Energy Project GS CDM project design documents S&L programmes. Analysis software. (PDDs) with financial plans as identified in The development of standards and labels in Legal and financial documentation costs are the 2006 REEEP/Gold Standard work- India officially began with the 2001 Energy significant barriers to the development of shops. In the 2006 REEEP-sponsored pro- Conservation Act. In 2006, the programme clean energy projects, especially in develop- gramme, four projects were identified in for refrigerators and fluorescent tube lights ing countries.The RETScreen project analy- China and over 20 in the Philippines, and 64 was launched. Programmes for air-condition- sis software has successfully reduced the there were ten project idea notes (PINs) ers and consumer electronics will follow. cost of financial evaluation for renewable from major Brazilian developers.

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Finance and project development ‘toolkits’ London-Beijing Olympic cessful energy service company (ESCO) will be developed in Portuguese, Hindi, Games CDM Project model in an earlier REEEP-funded project, English and Chinese. (London Organising Committee which the Indian Council for the for the Olympic Games Promotion of Energy Efficiency Business [LOCOG] & Peony Capital LLC, (ICPEEB) would like to replicate in other Improving Electricity Indian states. Governance in Brazil TBC) and South Africa The project will source CERs from a Beijing The project will establish a steering com- (World Resources Institute, CDM project as part of the carbon man- mittee and standardised documentation for August 2007 – present) agement strategy for the London Olympic disseminating the business model. It will Games. The London 2012 Olympic Board also work with local authorities on the dis- The Energy Governance Initiative (EGI) semination and implementation of the repli- project approach and methodology are signed up to the London 2012 Sustainability Policy (July 2006), which identified five pri- cation model. The goal is to present the based on the premise that the early engage- ESCO concept for energy efficient street ment of government officials, regulatory ority themes: climate change, waste, biodi- versity, inclusion and healthy living. lighting to over 100 cities across five states. commissions,legislators and utility represen- The result of this awareness building would tatives can help to ensure that the recom- The Organising Committee is developing a be that five private sector ESCOs would mendations that follow from assessments of carbon management strategy for the make bids to cities regarding street lighting. electricity governance are implemented. Games, adopting the hierarchy of Reduce, The model for dissemination began in In both Brazil and South Africa, research will Replace, Offset. The Beijing CDM project 2005 when a standardised sustainable be completed by civil society organisations will be a significant part of this approach. finance mechanism was developed and with an established track record in the ener- implemented within five municipal corpo- gy sector, working in close collaboration rations (Ashta, Bhopal, Dewas, Jabalpur and with an advisory panel of sector officials.The Millennium Development Sehore). The World Bank has since advisory panel will provide advice on the Goal Financing Facility expressed interest in providing carbon research approach, monitor work and pro- (MDGFF) – Participatory finance for these projects. vide input, review assessment results and Business Planning support a strategy and action plan for engag- (Fiorello H. LaGuardia ing actors beyond the coalition. Foundation, July 2007 – present) Efficiency Power Plant (EPP) Policy makers are more likely to promote The project will develop a business plan to Implementation in renewable energy and energy efficiency implement a €10 million financing facility Jiangsu, China when environmental and social interests are for sustainable renewable energy and (Institute for Market backed by a well-informed and well-organ- energy efficiency ventures. Transformation [IMT], July 2007 – present) ised civil society. Strengthening public par- The business plan will produce the legal doc- ticipation, government accountability and uments required to register the MDGFF, The project will assist the Jiangsu institutional capacity will facilitate better which will be capitalised at €2 million in the Economic and Trade Commission (ETC) renewable energy and energy efficiency poli- first year. The underlying rationale of the with its demand-side management (DSM). cies, and reflect the fair trade-offs necessary MDGFF is the replication of the MOSAICO The programme is the province’s main to ensure successful implementation. (Mobilizing Sustainable Agriculture, strategy for achieving its contribution to The World Resources Institute will con- Infrastructure and Capital) approach to sus- China’s national energy intensity reduction vene a coalition of civil society, regulatory tainable ventures and infrastructures in target of 20 percent by 2010. commissions, government officials, legisla- Brazil, China and India. The project will develop a DSM monitor- tors and utility representatives in South ing and verification protocol together with Africa (Sustainable Energy Africa and Scaling up a Proven a supporting DSM manual for the region. Earthlife Africa, the Trade Law Center for Mechanism to Implement Using the materials developed, the project Southern Africa, the University of Cape EE Street Lighting Projects team, led by IMT, will then implement two Town, the South African electricity public in India DSM projects in two of China’s top 1,000 utility Eskom, the Ministry of Energy, and (Econoler International, energy-intensive enterprises. The pilot the National Energy Regulator); and in September 2007 – present) projects are intended to demonstrate how Brazil (the Institute for Consumer DSM funds can be used to incentivise Defense, the Renewable Energy Non-gov- The project will disseminate a proven energy efficient investments in enterprises. ernmental Organization Network (REN- approach to developing, financing and OVE), Ecologica, the International Energy implementing municipal energy efficiency Jiangsu’s DSM/EPP programme was cited as 65 Initiative, and the universities of Rio, São projects, primarily in street lighting. a model to be submitted to China’s State Paulo, and Bahia). Econoler International developed a suc- Energy Office with instructions to promote

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

it on a national level. A study on the DSM A feasibility study will be conducted to Sustainable Development and Renewable energy efficiency potential in Jiangsu indi- investigate the ESCO model for biogas Energy (IDER) and have agreed to co- cated that DSM incentives could save 8 power. Candidate companies will be operate fully with the project, but state percent of the projected growth in electric approached, technology comparisons will officials sometimes experience difficulty in energy requirements and 15 percent of be conducted, and the possibility of project pushing through their agendas. peak demand growth for less than half the financing through the CDM regime will be Development banks should provide cost of production. This would result in a investigated. reduction of China’s coal consumption by financing to either stove producers or 167 million tonnes in 2015, eliminating 613 One ESCO will be created to demonstrate purchasers, but banks sometimes move million tonnes of carbon emissions. the business model. slowly on rural loan programmes. The project will install 200 additional Panzhihua’s Pilot Action The Learner Center for improved cooking stoves to further diffuse towards Sustainable Renewable Energy and the technology and stimulate a market for Energy City Decentralized Generation stoves. It will also train seven communities (ACPA, October 2007 – present) (IDEAAS, August 2007 – present) in sustainable wood fuel cultivation.Almost 70 percent of the semi-arid Caatinga scrub The project will work with Panzhihua local The project will assist Brazilian utilities to forests in Ceará state have been stakeholders to develop an innovative build a corporate culture that supports destroyed, largely because of the demand methodology and toolkit for energy man- distributed generation (DG) through the for firewood. agement within the Panzhihua Sustainable creation of a ‘Center for Learning on Energy City (SEC) plan. It will also improve Renewable Energy and Decentralized The use of efficient stoves will halve Panzhihua’s capacity for developing renew- Generation: Business, Management, biomass consumption, improve health and able energy and energy efficiency policies Financing,Technology and Policy’. reduce deforestation. and regulations. IDEAAS Brazil will develop methodologies Panzhihua is one of the primary regions for and course content to improve the corpo- Brazil Grid-Connected Solar iron and steel industries.The region’s high rate culture of utilities and the government Photovoltaic Roofs Program energy demand requires that it address in support of DG. Materials will include (RENOVE, July 2007 – present) energy issues and incorporate RE and EE decision-making tools (on-grid versus off- The project will develop legislation and reg- into city energy planning and management grid) and the management of decentralised ulation drafts, in final format, for direct from a long-term perspective. generation in isolated or remote areas. implementation by the Brazilian Mines and Two pilot projects will be developed with- FUNTAC (Acre State Technological Energy Ministry and also by the Electricity in the framework of the Panzhihua SEC Foundation) and the Solar Energy Regulatory Agency.The legislation will pro- plan and a package of market-based invest- Laboratory (Federal University of Santa pose a long-term (20-year) solar roof (in the ment methods will be planned to imple- Catarina State) are offering to host the GWp scale) incentive programme in Brazil. ment them, including carbon finance. training courses. Brazil still lacks a legal and regulatory framework suitable for the implementation Business Model Implementation of a of programmes targeting the widespread Development for Biogas Dissemination Strategy uptake of grid-connected solar photovolta- Electric Power Generation at for Efficient Cook Stoves ic (PV) generation. The legislation will include access rights to the grid and other Livestock Farms in China in Northeast Brazil technical and economic requirements. A (Tsinghua University, August (IDER, August 2007 – present) 2007 – present) comprehensive analysis of the type and The project will implement a dissemination quantity of incentives and subsidies, as well The project will develop a business model to strategy for efficient cooking stoves –– as of the subsequent impacts on tariffs, will design, finance, construct and operate large- including installation, sustainable forest be carried out. scale biogas facilities at livestock farms. Less recovery activities, and capacity building –– than 25 percent of livestock farms in China Traditionally, solar photovoltaic technology that is adopted in Ceará state public policy have built biogas facilities, with a total capac- has been used primarily in stand-alone, through state development plans. ity of 2.22 million m3. In 2004, the total rural/remote installations, which, due to methane emissions from livestock waste The Ceará state government recently their high costs, are used to deliver small 66 were between 19 and 28 million tonnes of began a new, four-year term. Relevant amounts of energy to populations CO2. The promotion of digester construc- energy, health and environment officials deprived of access to the national public tion will reduce GHG emissions. have close contacts with the Institute for grid. Because of the low income of these

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

populations, the market is very small (3 Using Tamil Nadu Municipal energy efficiency initiative to the remain- MWp/year). The implementation of the EE Program to Create & ing towns in the state (approximately REEEP-funded project will lead to consid- Demonstrate a Replicable 150), and later to panchayats (local gov- erable market development (over 100 Financing Model for the ernment bodies in rural areas, numbering MWp/year), which will also lead to cost Use of ESCOs approximately 560). The success of this reductions that will in turn benefit the (Alliance to Save Energy, programme is expected to produce a par- rural/remote market. October 2007 – present) adigm shift in India, catalysing similar EE initiatives across the country. The project will develop the legislation and Tamil Nadu Urban Infrastructure Financial regulatory frameworks required to estab- Services Limited (TNUIFSL) will imple- lish a 20-year, 100 MWp/year residential ment energy efficiency projects related to UNITED KINGDOM: solar roof project, resulting in 2 GWp the water supply systems of 45 towns in Development of Tamil Nadu. installed capacity over the period. International EMS for Integration into the ISO ESCO projects in India often falter, if not 9000 or 14000 Standards fail,due to disputes over quantifying ener- Financing for Bundled (UNIDO, October 2007 – gy savings resulting from the project.The Small-Scale Rural RE present) Ventures in India main reason is that ESCOs have not been using a proper, standardised monitoring The project will share and disseminate (Environment Energy and and verification (M&V) protocol to verify information on energy management stan- Enterprise Ventures, savings. The International Performance dards (EMS) as effective policy and regula- September 2007 – present) Monitoring and Verification Protocol tory mechanisms to promote and support The project will define and make opera- (IPMVP) has recently released a new M&V improved energy efficiency in industry. tional a new credit practice in Yes Bank protocol for the Alliance to Save Energy’s The United Nations Industrial Develop- Limited (YBL) focused on financing for ‘Watergy’ methodology in India,but it has ment Organization (UNIDO) will draft a small-scale renewable energy ventures in yet to be field tested. consolidated approach to energy manage- rural India. The Alliance recently produced the ment based on experiences from develop- ing and transition economy countries.The Currently, small-scale renewable energy Manual for Development of Municipal resulting report will be submitted to the ventures in rural India have difficulty access- Energy Efficiency Projects, a guide for International Standards Organisation (ISO) ing finance. The challenge is to provide developing EE projects for external financing. Currently, with USAID support, Central Secretariat and will form the basis these ventures with access to long-term, for a future ISO Technical Committee to reasonably priced capital that permits them the Alliance is providing technical and financing advisory services to TNUIFSL, develop an international ISO energy man- to defray high upfront costs. Rural financial theTamil Nadu Urban Development Fund agement standard. institutions in India do not at present have (TNUDF), and the Municipal Corporation Industry accounts for more than 30 per- structures to finance small-scale ventures of Greater Mumbai (MCGM) to help cent of global energy consumption and 40 efficiently and are therefore reluctant to them navigate the process of using per- percent of total electricity use. Markets provide financing at reasonable costs. formance contracting to finance and and policy makers tend to focus exclusive- The project team will define operational implement municipal EE projects. ly on individual components of energy effi- modalities, conduct research on rural ven- ciency, which offer efficiency improve- The REEEP-funded project will develop a tures seeking renewable energy financing, ments of between 2 and 5 percent, while financing toolkit so that other Indian industrial system optimisation generally and build a pipeline of transactions. The cities and state agencies can replicate the small-scale venture transactions will be provides efficiency improvements of application of performance contracting between 20 and 30 percent. aggregated into a bundle and documenta- to municipal water supply EE projects. tion will be developed to secure carbon- The toolkit will also include relevant les- The project will establish an international related financing for the bundle. The project sons from other performance contract- working group (IWG) comprising interna- will structure and execute financing for at ing projects in India.The IPMVP protocol tional and national energy management least three pilot ventures. for water pumping in India will be standards experts. Regional sector studies demonstrated for the first time through will be conducted in Brazil, South Africa, YBL is a leading private bank in India that is repeated field testing. Thailand and the Ukraine to explore the jointly owned by Rabobank, Citicorp issues and identify barriers to energy man- 67 Venture Capital, ChrysCapital, AIF Capital, If the pilot programme for 45 towns is agement standards.An international work- Swiss RE, and two Indian investors. successful, TNUDF plans to extend the shop will be held to present the findings to

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

key stakeholder groups and a draft Renewable Energy by 2016 in accordance with the goal estab- approach for developing an international Prospective Study and lished by the new national regime for elec- EMS for industry will be submitted to the Proposal to Remove the tricity production from renewables. ISO Central Secretariat. Technical, Economic, Regulatory and Financial Design, writing and valida- Development Marketplace Barriers to Its Full tion of the Renewable Competition for Affordable Development in Argentina Energy and Energy Efficiency Non-Fossil Lighting in Sub- (Energy Secretariat, National Law in Ecuador Saharan Africa Directorate of Promotion on (Ministry of Energy and Mines (The World Bank, TBC) Energy Efficiency and of Ecuador/Sub-secretary of Renewable Energies Renewable Energy and Energy The project will market affordable LED [D.N.PROM.], September 2007 – Efficiency, TBC) lanterns and lighting products that are not present) yet available on the marketplace for low- The new government administration in income households. TheArgentine National Congress has passed Ecuador has created the position of sub- Law 26190/2006, ‘Regime for National secretary of Renewable Energy and Energy TheWorld Bank will establish a development Promotion of the Use of Renewable Sources Efficiency under the Ministry of Energy and marketplace (DM) competition in sub- of Energy for Electricity Production’, granting Mines.The sub-secretary has several objec- Saharan Africa to develop low-cost, non-fos- tax and fiscal benefits to generators that use tives, including the establishment and pro- sil-fuel lighting products and services for renewable resources to supply electricity to motion of national regulations, norms and households and small businesses. public services.The law establishes an incen- laws for renewable energy and energy effi- The project involves a formal competition to tive for renewables via payment of 15 dollar ciency. Under this remit, the sub-secretary select qualified manufacturers and product cents (1.5 peso cents) per kWh generated by must prepare and co-ordinate the plans, developers to design/distribute LED lanterns a renewable source for a term of 15 years programmes and national strategies for and other basic lighting products meeting from installation. energy efficiency and renewable energy. bottom-of-the-pyramid consumer needs. Among the proposed goals,the country now The REEEP-funded project will provide Currently in sub-Saharan Africa, house- has a renewable energy target of 8 percent assistance to the sub-secretary in their holds rely on costly, inefficient, often haz- (excluding large hydro) of the total electrici- mandate to create the appropriate legisla- ardous fuel-based products, such as ty consumption until 2016. The Energy tive and regulatory frameworks to stimu- kerosene lamps, which account for up to Secretariat has been commissioned to design late the marketplace for clean energy and 30 percent of total household incomes. a national plan to fulfil this requirement. energy efficiency. Despite these high costs, fuel-based light- Since 2003, the Directorate of Renewable ing does bring significant value to con- The REEEP-funded project will allow the Energy and Energy Efficiency at the sumers as energy conversion efficiency is Energy Secretariat to: Ministry of Energy and Mines of Ecuador low and lighting quality is poor.The devel- • identify energy policy actions to remove has been working as the implementing opment marketplace will offer robust barriers to develop renewable energy; agency for the PROMEC project (Project lanterns and products tailored to con- • improve the quality of information on for the Modernisation of Rural sumer needs and available at low retail natural resources and projects, especial- Electrification and Telecommunication in prices (between $10 and 25) with short ly related to biomass residues (from Rural Areas). PROMEC was co-financed payback periods of two to three months. If forestry and agriculture); with the World Bank and GEF and covered achieved, this will open up significant a variety of initiatives, including: opportunities for product sales across the • adapt the present legal framework to African continent, in urban, peri-urban and foster the introduction of distributed • energy efficiency pilot programmes in rural areas. generation; and industry, hotels and public buildings; • evaluate and propose alternatives to • the installation of approximately 1,500 The Lighting Africa DM will bring togeth- improve project knowledge. solar home systems for indigenous er international lighting manufacturers dwellings in the Amazon and jungle and local distributors in Africa for the The Argentine has more areas; design, development and marketing of than 2,800 agents recognised by the rules of • capacity building within local ESCOs; low-cost, energy-efficient lighting prod- the Wholesale Electric Market (WEM), who and ucts tailored to low-income consumer generated 96,646 GWh in 2005.The amount • feasibility studies for 15 mini hydro- 68 needs and conditions.It is anticipated that of electricity supplied by renewable sources the Lighting Africa DM will be held in was 1,520 GWh in the same period and is electric facilities. February 2008 in Ghana. expected to increase to 13,000 GWh/year Within the energy efficiency component,

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

one of the outcomes was the draft paper financing product will be provided by NAFIN, Integrated Rural Energy for the Renewable Energy and Energy the national development bank of Mexico, to Utility (IEU) Roadmap Efficiency Law. Having analysed the paper, local banks and financial institutions. (Restio Energy Pty Ltd., the Ministry of Energy and Mines has Three ESCO-structured projects will then August 2007 – present) requested REEEP’s assistance to finish the be developed and financed by local banks in The project will enable the development of draft of the Law, including the validation Mexico under a structure that utilises the phase and final writing. large-scale decentralised entities that deliv- newly created project-based perform- er a range of renewable and other energy ance/credit risk guarantees and financing services primarily to rural regions (house- Developing a Vehicle for mechanisms provided by NAFIN. SWH Mass Implementation holds, social services and productive use in SA, and extending the The project, managed by EPS Capital, will applications). The decentralised utilities will existing REEEP manual accelerate the implementation of energy meet both thermal and grid or off-grid (Sustainable Energy Africa, efficiency projects and the growth of the electricity needs in an energy efficient man- August 2007 – present) ESCO industry in Mexico, which comprises ner, within an institutional framework that mostly small and medium-sized enterprises. The project will support three cities in the has the necessary critical mass and long- It will also create replicable mechanisms establishment of large-scale solar water term financial integrity. that can be used to aggregate the financing heating (SWH) implementation vehicles. Rural energy service activities typically of energy efficiency projects and that will Working with Cape Town, Tshwane and focus on either improved thermal energy result in reduced transaction costs. Sol Plaatje, the project team will pull use, or grid or off-grid electrification. An IEU improves the efficiency and viability of together all the key players in a particular Engaging the Banking local service delivery and mitigates several city to develop the market.This includes Sector in Financing financiers, SWH suppliers and installers, Renewable Energy risks (including grid/off-grid planning local authorities, legal experts and CDM uncertainty). Implementation requires that (CONAE and BASE, funding co-ordinators. an appropriate regulatory and policy August 2007 – present) framework be developed (with the assis- The team will provide technical, legal and The project will identify areas for the finan- tance of the Sustainable Energy Regulation financial support to cities as necessary in cial sector to engage in, or accelerate its Network [SERN]). the process of establishing a solar water participation in, RE projects, particularly heating vehicle. The result will be an Challenges will arise in the form of regula- micro and small-scale projects. UNEP’s ESCO or a city-owned SWH utility. tory hurdles in licensing and uncertainty Sustainable Energy Finance Initiative (SEFI) Training materials will be developed for regarding the restructuring of the electric- (jointly implemented with the Basel Agency each local authority. ity supply industry (ESI) in South Africa. for Sustainable Energy [BASE]) will work The Development Bank of South Africa with Mexican financial institutions to engage (DBSA) has expressed interest in support- them in investing in RE and EE projects. IRELAND: ing the start-up and long-term financing of A local implementation group with different Development and such vehicles. Eskom is also finalising an member profiles will be created to ensure a Implementation of Financial incentive to support SWH uptake. The comprehensive approach. It will be a coali- Risk Management vehicles will operate on a sustainable basis. tion comprising Mexico’s National Instrument Supporting Commission for Energy Conservation Energy Services Performance/Credit Risk (CONAE, the leading local organisation), a Development Investment Guarantees and Financing regional technical association/chamber, a in Sub-Saharan Africa Mechanisms for ESCO-struc- business school, a regional development (Econoler International, tured Energy Efficiency bank, and a respected local figure in the October 2007 – present) Projects finance sector. UNEP provided business development serv- (EPS Capital Corp, The project’s innovative approach is to ices and seed capital financing, through the October 2007 – present) develop a unique long-term strategy by African Rural Enterprise Energy The project will develop performance and demonstrating the local business opportu- Development (AREED) programme, to 36 credit risk guarantees and risk mitigation nities in RE/EE technologies to the banks enterprises, spanning a range of EE and RE structures in order for local banks to be will- through market assessment. The resulting technologies.A review of theAREED project ing to provide limited-recourse, project-based report will contribute to the design of determined the need to develop risk-sharing 69 financing for ESCO-structured energy efficien- future government initiatives to increase instruments to mobilise business and con- cy projects. The resultant energy efficiency investment in sustainable energy. sumer equipment financing from local com-

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

mercial and micro-finance institutions. The hours daily.The government has procured The project will comprise the study of dif- Econoler International–led project will ini- emergency diesel generators to alleviate ferent scenarios related to various levels of tially focus on Ghana, Zambia and Senegal. the problem, but this has resulted in integration of European RE and EE legal increased electricity tariffs. frameworks and economic instruments The project will assess the business activi- (tools and best practices) with the ties, capacities and finance needs of select- In January 2006, the Ministry of Energy and Moroccan energy market. Local stakehold- ed AREED programmes and participating Mineral Development conducted a survey ers will also be trained on European sup- energy enterprises. In consultation with to estimate the amount of electricity that port programmes. AREED, participating enterprises and inter- can be saved by replacing electric water ested financial institutions, the project heaters with solar water heaters in Morocco has established a renewable team will design appropriate finance mech- Kampala City. The information indicated energy target of 20 percent (for electricity anisms and related tools to support both that 41MW could be saved by installing production). At present, renewable energy energy equipment consumer financing and 65,000 solar water heaters in urban areas. stands at 7.9 percent (3.4 percent without business financing. Another study indicated that the country large hydro). Two regional economic development com- has an exploitable SWH potential of 806MW by 2015. munities in sub-Saharan Africa –– the METREHC Renewable Economic Community of West African The project intends to save 1MW of elec- Heating and Cooling Use States (ECOWAS) and the East African tricity during peak hours by installing 500 in the Tertiary Sector of Community (EAC) –– are currently devel- solar water heaters in Kampala, Entebbe Mediterranean Countries oping sub-regional strategies in order to and Jinja over two years. This will be (Politecnico di Milano [POLI- provide access to modern energy services. accomplished by assistance to five solar MI]), October 2007 – present) REEEP plans to use these communities to water heating companies, training for 20 The project will define a policy for the promote the success and expansion of the technicians in solar water heater installa- promotion of renewable energy sources financial risk mitigation tools developed. tion, and agreements by three financial (RES) inTunisia and Morocco,with the aim institutions to provide credit financing. of reducing total primary energy con- Promotion sumption. The project Mediterranean of Solar Water Heaters ITALY AND UNITED Renewable Energy Use for Heating and (Ministry of Energy and Mineral KINGDOM: Cooling (METREHC) will provide support Development and Rural Innovative Policy and capacity building for policy design in Electrification Agency, October the tertiary sector through assistance 2007 – present) Frameworks to Address Barriers to RE with writing primary and secondary legis- The project will create awareness of the & EE Deployment in the lation, codes of practice etc., and the benefits of solar water heaters among city Mediterranean Region review of such instruments. planning authorities, the Ministry of (Ingegneriambiente, The METREHC project will harmonise the Housing, architectural and engineering October 2007 – present) development strategies of the two African professional bodies and the general public. The project will enhance a working rela- countries within the European Energy It will also develop financing mechanisms, tionship between the EU and Morocco and Plan, highlighting synergies and macroeco- promotional policies and standards for other North African countries, to transfer nomic advantages. In line with the recent integrating solar water heaters in buildings. European best practices in the use of RE decisions taken at EU level on the binding Uganda must save electricity during peak and EE financial instruments and their inte- target for renewable energy by 2020 and hours by switching water heating in house- gration into the energy planning process. the need for a new directive on thermal holds and institutions from electricity to RES, the project will develop a policy strat- Morocco, like other North African coun- egy that specifies both obligations on the solar. The country is faced with an acute tries, is already co-operating with Italian use of RES and the related accompanying electricity supply shortage mainly due to institutions (Tunisia, with an agreement on actions necessary to facilitate the imple- increased demand, which has not been the EU grid connection; and Morocco, mentation of the new law. matched by new generation. The situation developing several financial mechanisms). has been worsened by prolonged drought Nevertheless, there are still barriers to the Energy consumption is expected to that has cut production at the existing deployment of RE and EE in the increase drastically in the coming years in 70 hydro power stations. This has resulted in Mediterranean region, especially in North southern Mediterranean countries.In par- electricity rationing that lasts up to 12 African countries. ticular, the need for cooling in these coun-

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

tries is constantly growing and represents via a generic overview of the impact of var- the main component of electrical grid Commissioned Projects ious types of policies and success factors, loads during the summer. The develop- UNITED KINGDOM: and ‘best-practice examples’ of various ment of RES technologies can be advanta- types of policies in different countries. geous, as such technologies are particular- Analytical and Synthesis The study will cover OECD countries plus ly suitable for providing heating and cool- Study of REEEP the emerging market economies of Brazil, ing in this region. Programmes (Baastel/Econoler International China, India and South Africa. It will include The outcome of the METREHC project [Consortium], November 2007 large energy consuming OECD countries will be the realisation of an integrated – present) (e.g. starting with G8) plus emerging mar- policy structure, overcoming the techni- ket economies. The commissioned project will conduct an cal, economic and social barriers to the analysis of the outputs and outcomes of The scope and criteria for the inventory of development of RES for heating and cool- REEEP’s project portfolio, including key initiative/projects globally, regionally ing uses in the tertiary sector in Tunisia answering evaluation questions, generating and nationally will include best-practice and Morocco. lessons learned and formulating recom- examples that meet the key interests of mendations. A methodology will be devel- the report’s target audience: policy makers, NEW ZEALAND AND oped to provide a comprehensive industry, financiers and development pro- UNITED KINGDOM: overview of REEEP’s project portfolio. fessionals. Key initiatives and projects will Pacific Micro Energy The study will provide a detailed analysis include: innovative energy efficiency proj- Service Companies of project effectiveness against predeter- ects in each sector,successful policy instru- (SOPAC, August 2007 – present) mined goals with a view to reviewing the ments that have potential for implementa- extent to which the projects have had an tion in other countries, and innovative and Access to reliable and clean energy is a effect on the intended beneficiaries. It will creative project financing schedules. prerequisite for improving health and edu- also provide a ‘relevance checklist’ against cation, reducing poverty and increasing which the continuing projects can be sustainable development. More than half of reviewed compared to REEEP’s defined Design and Establishment the rural communities in the Solomon priorities and disseminate lessons of a Risk Mitigation Islands and Kiribati depend on kerosene learned, best practices and potential for Mechanism in India for lighting.The project will replace the use replication, which in turn allows for the (PricewaterhouseCoopers, of kerosene in 90 rural households fine-tuning of existing methodologies. October 2007 – present) through the installation of Light Up the The project will analyse the risks associat- World lamp systems; identify and train NORWAY AND THE ed with financing of renewable energy local entrepreneurs in assembling, installing UNITED KINGDOM: projects and attempt to devise appropriate and maintaining such systems; and create risk mitigation mechanisms, in consultation and facilitate a micro-credit scheme (or REEEP Global Status Report on Energy Efficiency with ICICI Bank, India’s leading private sec- build upon established rural schemes) for (Ecofys Netherlands BV, tor financing institution, which will also the effective and increased deployment of October 2007 – present) pilot such schemes, once they have been solar energy technology and energy effi- designed to the satisfaction of the stake- cient LED lighting in Least Developed The commissioned project will define holders involved. Countries. It will also develop a project energy efficiency measures, market poten- Despite encouraging prospects and robust identification note (PIN) for carbon emis- tial for energy efficiency, annual energy sav- technology track records, the renewable sion reductions (estimated 121 tonnes ings, investments in energy efficiency and energy market still does not attract over a ten-year period) and is expected to energy efficiency policies and programmes. investors as investment risk appears to be increase the participation of the Solomon The study will focus on historical and higher in comparison to other more com- Islands and Kiribati in voluntary carbon potential thermal and electrical energy effi- petitive investments.The financing gaps are market mechanisms. Beneficiaries will ciency improvements for the following sec- mainly concentrated in the area of risk improve their standard of living through tors: industry, domestic buildings, non- capital.An estimated $9 billion of risk cap- better access to modern lighting, leading to domestic buildings, transport (passenger ital is needed for renewable energy gener- the creation of income-generating activi- and freight), agriculture and power genera- ation in developing countries by 2010. ties at night and improving children’s edu- tion (including transmission and distribu- 71 cation, therefore contributing to the allevi- tion). It will then review the impact of The estimated potential in renewable ation of poverty. energy efficiency policies and programmes energy (RE) in India is 1,830,000 MW, out

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

of which only 5 percent (approx. 9,000 expands the geographic scope and reach of Through this REEEP project, the China MW of installed capacity) of the total ESIS beyond APEC economies. Through Standard Certification Center (CSC) plans potential has been exploited to date. broader collaboration with international to remedy this deficit by developing a har- Recently pro-renewable policies framed by agencies and networks, ESIS will become a monisation roadmap based on inputs from global energy efficiency clearinghouse. the government have motivated private market research, policy assessment, techni- investors. India’s renewable power capacity The project aims to develop and deliver a cal analysis and an international workshop. exceeded Japan in 2006 and jumped into self-sustaining resource of global energy fourth place globally due to its wind-based standards and labelling information. It will generation capacity. Furthermore, the achieve this through strengthened ESIS Commercialisation of Large- Government’s Renewable Energy Policy contacts with non-APEC economies that Scale Solar Water Heating aims at generating 10,000 MW by 2012, deliver ongoing standards and labelling (SWH) Systems boosting further growth in the domestic content into the ESIS database. (Energyhouse Africa TAS, E+Co marketplace. The recent development of Africa, April 2006 – present) renewable capacity indicates that India has The project will also seek the participation the appropriate institutional framework in of non-APEC economies. Key experts in Through their solar thermal investment place for the promotion of renewable selected economies will be contacted to experience in Africa and South Africa, E+Co energy in the country. However, capacity facilitate the initial and ongoing collection identified a niche financially unserviced mar- addition is still slow. of standards and labelling information for ket opportunity resulting from a lack of their economies. Data collection and appropriate asset-based finance for the pur- The project will design specific risk mitiga- uploading into ESIS will be co-ordinated, in chase of large-scale solar water heating tion mechanisms that address the risks and many instances, through third-party con- (SWH) systems. To stimulate this market concerns of developers. To give an exam- tractors familiar with the region’s energy opportunity, E+Co, with REEEP assistance, is ple, one such risk is the absence of com- efficiency networks. mercial guarantees by equipment manufac- developing a business plan for the creation of turers on the achievement of capacity util- The project experienced a delay in imple- a €1.5 million SWH investment facility with a isation factors, which is dependent not just mentation by the transferral of the project €250,000 window for the facility’s develop- on the robustness of the technology but to the Collaborative Labelling and ment, management fees and enterprise also the wind velocities. Likewise, price Appliance Standards Program (CLASP) and development services (EDS). The proposed variability of biomass feedstock and its the redefinition of the geographical expan- facility will work with local and international sion of the ESIS under the project. continued availability is another risk that is financial institutions to make appropriate often a barrier for new investments. asset-based finance available to consumers Harmonisation Roadmap wanting to purchase large-scale SWH sys- Development on tems, thereby demonstrating the financing I Government Procurement potential for large SWH installation.The facil- Fourth and for Energy Efficient Products ity will also undertake various market devel- Fifth Programme among APEC Economies opment and training activities to assist with Cycle –– 2006/7 (China Standard Certification the scaling up of the SWH sector.Should the Center [CSC], April 2006 – investment facility prove successful, E+Co present) envisage the facility growing into a larger, UNITED KINGDOM: Harnessing government purchasing power stand-alone, financially sustainable fund with Expanding and Globalising has the potential to yield impressive savings investment capital of about €15 million. the APEC Energy Standards and to enhance the market transformation Although drafts of a business plan for an Information System (ESIS) of energy efficient products. In some APEC SWH financial facility were developed and (CLASP, April 2006 – present) economies, the government procurement discussed (e.g., definition of objectives, SWH The Energy Standards Information System policy for energy efficient products has been published. However, there is little target sectors, possible local stakehold- (ESIS) was established by the Asia-Pacific ers/partners), and discussions took place in Economic Cooperation (APEC) in 2002 as attempt to address the harmonisation South Africa with local stakeholders (with a a user-friendly, web-accessible database of issues related to government procurement energy efficiency standards and labelling for energy efficient products across APEC focus on financial institutions), the project has had to undergo changes in approach.It is 72 programmes. It currently presents infor- economies. One exception is the initial pilot mation on 21 APEC economies (see energy efficiency standards harmonisation expected that the investment facility should www.apec-esis.org). The REEEP project efforts for several specified products. be operational around June/July 2009.

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Building Energy team has provided technical energy effi- analysed.An energy audit of a selected hos- Efficiency Codes in Russia ciency assistance on several key building pital building confirmed the existing energy and Kazakhstan designs; has begun work on a new edition savings potential as 34 percent heat and 30 (Institute for Market of the Moscow building code; and has pro- percent water consumption. However, a Transformation [IMT], April moted the Energy Passport building rating prepared draft policy document was not 2006 – present) system to building officials and experts at accepted by the Ministry of Health. The the regional and federal level. project is currently in the process of reach- The focus of the IMT project team has ing formal completion without having been the development and implementation Facilitating ESCO Projects achieved planned objectives. of performance-based energy codes for in the Health Care Sector (Naradowa Agencja new and renovated buildings. Using a Capacity-Building Support Poszanowania Energii S.A model developed by the IMT team, 53 for the Implementation of Russian regional governments have adopt- [NAPE]/Polish Agency for the Renewable Energy Law ed mandatory energy codes, covering Energy Conservation, April in China 2006 – present) more than three-quarters of new con- (Chinese Renewable Energy struction in the country. The Russian In Poland, there are over 800 hospitals with Industries Association Federal Government adopted a new code an energy saving potential in the range of 20 [CREIA]/REEEP Regional in 2003, similar in structure and stringency to 40 percent. The ESCO scheme is the Secretariat for East Asia, April to the regional codes and applicable to the most useful for implementing energy effi- 2006 – present) whole country. In 2004, the Republic of ciency measures in hospitals, although in ‘RELawAssist’ is a project developed by Kazakhstan adopted a new code, also Poland and other Central and Eastern the Renewable Energy Generators of based on the project team’s model. European countries, both ESCOs and local Australia (REGA), the Chinese Renewable Buildings designed in compliance with the banks are unwilling to invest in energy effi- Energy Industries Association (CREIA), new codes consume between 35 and 45 ciency improvements in the health sector the Centre for Renewable Energy percent less energy for heating than build- since most hospitals are heavily in debt. Development (CRED) and Baker & ings complying with previous codes. In The National Health Fund in Poland reim- McKenzie, with funding from the addition to increased stringency, the new burses hospitals for the actual services pro- Australian Government, in collaboration Russian and Kazakh codes include a num- vided to patients rather than according to with REEEP and REIL.The project is aimed ber of innovations in content and format. their operational expenditures, and service at identifying the key legal and regulatory Notably, they introduce a performance- reimbursement levels are often insufficient issues around the implementation of based compliance method, in which design- to cover the maintenance and upkeep costs China’s renewable energy law and regula- ers can flexibly choose combinations of of the buildings.This REEEP project endeav- tions. CREIA used the knowledge and net- building-envelope and heating-system effi- ours to create a model to address key bar- work it has developed as a key part of the ciency measures, as long as the whole- riers to the operation of ESCOs, including development team for the law to manage building energy consumption target is met. the lack of guarantees for ESCO business; the development/collation of training materials and to organise training sessions At the federal and regional level in Russia and fiscal obstacles, such as the obligation to pay for central and local government stake- Kazakhstan,IMT is now working with project value added tax immediately after construc- tion; and bidding procedures such as the holders so that they can better under- partners to support code implementation stand the law and accelerate its imple- through training, the development of techni- limited duration (three years) of delivery contracts for the public sector. mentation. Furthermore, CREIA proposes cal guidance materials, and other work. IMT’s to monitor the implementation of the law, Moscow-based partner, the Research Discussions with ESCOs operating in the especially the pricing regulations, via the Institute for Building Physics (NIISF), has held region indicated that the proposed model network of attendees at the training ses- seminars and given presentations on building would open the door to widespread ESCO sions, and through international expertise energy codes and efficient building design activity in the hospital sector.A model ener- on comparative renewable energy regula- strategies for hundreds of building-code offi- gy efficiency project at one hospital was also tion, to see how the regulations work and cials and building designers. planned. This was to be tendered as an provide feedback in the form of recom- The project team led a two-week learning ESCO contract and used as a test case for mendations to the National Development and Reform Commission (NDRC). tour on the same topics in New York and the new policy. the Washington, D.C. area for building- The general situation in the health-care sec- Training workshops have been conducted code officials. Moscow has published a tor in Poland, as well as specific questions and packages developed and published on 73 new, more stringent performance-based related to possible ESCO engagement in the websites of CREIA and REEEP. building energy code for high-rises. The the modernisation of the sector, have been Activities have been completed to finalise

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

recommendations to the NDRC on the IRELAND: and relatively low capital inputs. However, impact of the renewable energy law in stimulating small-scale production requires China, and the project is expected to reach Financing Co-generation and improved business planning support and formal completion in May 2008. Small Hydro Projects in the better access to finance. In the context of Sugar and Tea Industry in the distributed generation of renewables, East and Southern Africa small-scale biodiesel production, coupled Development of a with localised biodiesel use, is a package Sustainable Energy Policy (AFREPREN/FWD, April 2006 – present) that requires relatively small investment Framework for Guatemala and modest levels of management. Job cre- (Fundacion Solar, nominated This initiative will address the financing bar- ation assessments indicate that a small for financing by GVEP, April riers and risks facing the sugar and tea indus- (1 million litres per year) biodiesel facility 2006 – present) tries in target countries in investing in processing locally grown feedstock will renewable energy and energy efficiency generate and secure 50 to 100 jobs. The Guatemala has a General Electricity Law and services (REEES). It links with two ongoing outputs of this project would facilitate an incentive law for electric energy genera- UNEP/GEF projects: Greening the Tea viable businesses and would therefore have tion with renewable energy resources, but it Industry in East Africa (small hydro), and a positive impact on poverty reduction and lacks a general energy policy directive Cogen for Africa (bagasse co-generation). quality of life in agricultural and peri-urban framework.The objective of this REEEP proj- REEES investments face a number of impor- areas of the target countries while assisting ect is to prepare a policy directive via the tant risks and uncertainties, notably: policy host countries to attain a greater degree of input of multi-sectoral government partici- and regulatory risk, market risks (such as energy security. pation, as well as the participation of repre- absence of assured buyers of generated sentative national stakeholders, that will clean energy), lack of investor confidence, The project seeks to support this process integrate all aspects of sustainable develop- and financial risks. Of special importance is by providing tools and support to facilitate ment through the provision of modern limited appreciation of risks associated with the business planning process, as well as energy services and energy efficiency. The project finance –– a mode of financing that is accessing finance that will allow these ben- main activities comprise the preparation of a not well understood or widely practised in efits to be realised.An ASFC website has basic document; the identification of stake- the region. Risks associated with project- been designed and a generic business plan and financial model for small-scale holders who will participate in the policy financed REEES investments can be mitigat- biodiesel production is being developed.In development process; the organisation of ed through comprehensive insurance to addition, a preliminary list of financing workshops with targeted stakeholders to cover all possible eventualities. These organisations with an interest in renew- obtain feedback; the incorporation of pro- include: Contractors’ Risk, Erection Risk, able energy has been identified in prepara- posals into a basic policy document; and the Transportation Risk, Professional Liability, Third-Party Liability, Workmen’s tion for the production of a biodiesel development of a framework for consensus financing guidebook. on a draft policy directive. Indigenous popu- Compensation, Contractors’ Equipment, and even Advance Loss of Profit.These and lations are involved in the decision-making other risks are not well understood, espe- process.The outcome of the process will be ITALY AND THE UNITED cially in the context of financing REEES presented to, and discussed with, relevant KINGDOM: investments in the sugar and tea industries. government decision makers, aimed at the A training workshop was held in November Renewable Energy approval of a consistent,long-term and com- 2007 and the project is expected to reach Cooperation Certificates prehensive national sustainable energy poli- successful completion by May 2008. (International Solar Energy cy proposal with a participatory approach Society [ISES], Italy, July 2006 – that will serve as an umbrella for all energy present) sectors, co-ordinating actions among them Facilitating Access to The aim of the project is to propose the as well as with other sectors of the country. Finance for the Biodiesel implementation of alternative economic The project is progressing well and the basic Industry in Southern Africa tools that can support clean energy inter- energy document and legal gap analysis have (African Sustainable Fuels ventions in the context of EU co-opera- been completed and submitted to the rele- Centre [ASFC], April 2006 – tion programmes benefiting countries in vant ministries and government institutions. present) North Africa and the Middle East. Starting Two workshops have been held, at which Biodiesel is one of the preferred biofuel from the analysis of EU legislation and government institutions, NGOs and other options in Africa because it is economical- Euro-Mediterranean agreements in the agencies were represented. The national ly viable on a small scale, draws on Africa’s energy sector, an attempt will be made to 74 stakeholder list has been completed and the untapped agricultural potential and max- develop feasible high-value energy co- main framework for the energy policy imises employment benefits, while its man- operation projects from an environmental umbrella is in its final stages. ufacture requires a low level of technology and social point of view in order to con-

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

tribute to local sustainable development by number of Tunisian organisations as well as funding that may be generated through the transferring efficient and innovative tech- stakeholders from other North African carbon market, Kyoto and related mecha- nologies, increasing the availability of ener- countries (Morocco, Egypt, Libya) expressed nisms, and that it will support the adaptation gy at the local level and achieving social and interest in the project. Nevertheless, the of orthodox financial mechanisms and busi- economic benefits. withdrawal of a major project proponent ness structures for the RE and EE markets. ultimately prompted the project developer In this way, the project aims to promote The survey of the Tradable Renewable to suggest termination of the project, with the financing of new district heating plants Energy Certificates (TRECs) market in formal closure still ongoing beyond the peri- fuelled with sustainable forest biomass in Europe and the analysis of EU legislation are od covered by this report. complete and the working group has Irkutsk Oblast and Khabarovsk Krai, focused its attention on the rules and pos- replacing existing coal and heavy oil–fired sible application of the market tools to sup- plants. With this objective in mind, port renewables in the Mediterranean I Third Programme Winrock has met with potential pur- region.The project was extended to include chasers of carbon credits to clarify project a workshop,held inTunis,and is expected to Cycle –– 2005/6 structure and contracting issues. be formally completed by May 2008. Discussions have taken place with the UNITED KINGDOM: Governments of Canada and the Financing the Conversion Netherlands and with banks and socially Establishing TREC Trading responsible funds. of District Heating to Clean between Tunisia and Italy Energy in Russia The project team will continue to work (Inergia, April 2006 – present) (Winrock International, April with Russian partner banks –– For several years, the Italian Government 2005 – present) Vneshtorgbank and Sberbank –– to sup- had expressed a desire to import Tradable port them in clean energy financing. Local Rural and urban communities in the far Renewable Energy Certificates (TRECs) east of the Russian Federation depend on partners will receive assistance in the from North Africa.The project was meant highly inefficient district heating plants, measurement, monitoring and verification to build on existing initiatives in the operating with 50-year-old technology, protocols to quantify net carbon benefits Mediterranean region, such as the using coal and heavy oil for their heat and resulting from fuel switching.Winrock has Mediterranean Renewable Energy Project power. These inefficient district heating created a portfolio of eight biomass- (MEDREP, which has signed an MoU with systems not only contribute to poor air fuelled district heating projects and it is REEEP), which encourage private sector quality and associated health problems, hoped that an expansion in biomass- involvement and the use of financial instru- but also fail to exploit the natural fuelled technology will encourage Russian ments to achieve their aims of increasing resources available in the region, particu- manufacturers to improve biomass energy the provision of sustainable energy services larly vast untapped stocks of forest bio- system designs and attract more finance. as well as mitigating the effects of climate mass and mill waste which could repre- Project implementation was deferred change.The project was based on political sent a technically feasible and cost-effec- because of a delay in establishing the support for piloting TREC trade between tive replacement for coal. Investment is Russian joint implementation framework. Italy and North Africa by establishing the hard to come by in modern-day Russia, institutional framework for a nationalTREC despite the profits that could be made by Development of Small system in Tunisia, establishing links to replacing coal with biomass and selling Hydro and Wind ‘Practice potential TREC buyers in Italy, and piloting any carbon credits to carbon investment Guides’ for Developing funds and developing the international the trade in TRECs between the two coun- Countries carbon market.Profits could then be used tries, with the aim of supporting the (IT Power, April 2005 – present) growth in renewable energy development to leverage additional conventional within Tunisia. finance while reducing GHG emissions. This REEEP project aims to support the REEEP recognised the ability to create a ongoing photovoltaic power systems The main purpose of this project was to replicable model for catalysing funding for (PVPS) programme of the International improve the economics of renewable switching from coal to biomass.Winrock Energy Agency (IEA), which has created energy projects within North Africa, as International,working with local commer- Practice Guides for policy makers and TRECs could bring additional finance to cial banks, municipalities and technology project implementers.The IEA-PV Services stimulate the development of renewable manufacturers,has established a €110,000 for Developing Countries (SDC) pro- energy projects within the region. fund to support the creation of RE and EE gramme is under way and workshops were finance facilities. The project experienced a delay in imple- conducted in China and Laos in 2005.The 75 mentation. Extensive negotiations with the It is hoped that the initiative will identify Photovoltaics Services for Developing majorTunisian stakeholders took place and a opportunities for innovative approaches to Countries (PVSDC) programme assists

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

government agencies and international the project to contribute significantly to institutions to develop policies and apply the development of Mexico’s wind indus- international best practice in the develop- try and to an increased number of granted ment and deployment of photovoltaics for and completed power plant permits.At the rural electrification. The programme has beginning of the project, Mexico had more been expanded to cover other energy than 60 private renewable energy projects services, such as water supply, communica- generating approximately 500 MW of clean energy.After a delayed start, the proj- tions, health care and general economic ect is progressing and is expected to be uses.The REEEP co-financing has been used completed by May 2008. to expand the IEA PVPS programme work to include small hydro and wind technolo- gies and to conduct additional workshops Accelerating Sustainable in 2005 and 2006 in South Africa and India. Energy Projects in Bulgaria The project has produced a Recommended and the Czech Republic Practice Guide (RPG) for small hydro and (European Business Council wind technologies, which will be dissemi- for Sustainable Energy [e5], nated through the IEA’s ongoing interna- August 2005 – present) tional programme that receives funding Investments in SMEs involved in the from Australia, Canada, Denmark, France, renewable energy sector are often over- Germany, Italy, Japan, Sweden, Switzerland, looked due to a perception of excessive the UK and the USA.The project is expect- risk. The reality can be very different –– ed to be completed by May 2008. SMEs often develop highly innovative tech- nologies and business models, can respond Supporting Regulations for flexibly to changing market demands and Renewable Energy in Mexico can prove to be very profitable. To realise (Comision Reguladora de Energia, their potential, SMEs require business December 2005 – present) expertise, marketing opportunities and financial backing to enable them to roll out REEEP is funding a project to assist Mexico their technologies, products and services in identifying new procedures and codes to to global markets. support renewable energy development. In 1992, Mexico began liberalising its electric- The e5 Sustainable Energy Accelerator ity sector through the Ley del Servicio (e5-SEA) will include an actively managed Publico de Energia Electrica (Electricity database to provide advice on business and Public Service Act), which allowed an marketing plans and consultation with increased share of private sector electrici- regional and local governments on energy ty supply. The Energy Regulatory development plans and private sector solu- Commission (CRE) has been working with tions. Through the development of the e5- the Energy Ministry (SENER) to modify the SEA, it is hoped that the credibility of SMEs legal and regulatory framework for renew- will be strengthened, thus mitigating risks able energy, and in 2001 the CRE approved for investors and increasing available capi- several regulations, including service tal for sustainable energy projects.The e5- charges and contract models for renew- SEA will enable professional service able energy transmission. The govern- providers to identify credible new clients ment’s national development plan states and expand their network of business rela- that sustainable development is one of the tionships. In addition, the e5-SEA will pro- main principles of public policy. In support vide customised reporting to investors on of this principle, the government stated its intention to increase the existing installed new opportunities while assisting clients in capacity of sustainable energy to 1,000 preparing presentations according to MW.The project will develop a net meter- investors’ specific criteria. ing procedure and carry out a grid code The project has experienced implementa- study, drawing on the international experi- 76 tion difficulties and has suggested to revise ence available in the field. REEEP expects its work plan.

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX B

Completed Projects

REEEP’s portfolio of 70 completed projects consists of 32 projects from the Third (14 projects) and Fourth/Fifth (18 projects) REEEP Programme Cycles implemented during 2005/6 and 2006/7 respectively, and 48 projects funded and managed by the Foreign and Commonwealth Office Global Opportunities Fund (FCO-GOF) under a REEEP banner during 2003/5.

I Fourth and Fifth Programme Cycles –– 2006/7

UNITED KINGDOM: PROJECT IMPLEMENTING AGENCY COUNTRIES The International Sustainable Energy Assessment — Implementation and Impact Phase University of Colorado Global

RETScreen Version 4 –– Multilingual Energy Efficiency Models CANMET Energy Technology Centre Global, with focus on Angola, Brazil, China, India, Kazakhstan, Russia, Mexico, Nigeria, South Africa

Development of an Energy Efficiency Fund in Brazil Econoler International Brazil

Legal Frame of Renewable Energy in the State of Guanajuato CONCyTEG Mexico

Regional Standards and Labelling Program in Central America BUN-CA in collaboration with CLASP Mexico, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama

Amazonia Energy Initiative (Energia da Amazonia) Winrock Brazil Brazil

RE and EE Policy and Action Plan of Liberia Center for Sustainable Energy Technology (CSET) Liberia

Utilization of Forest Biomass for Substitution of Fossil Fuels in the Volga River Region Environmental Projects Consulting Institute Russia

Compiling RES Legislation for Kazakhstan UNDP Kazakhstan Kazakhstan

77

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

PROJECT IMPLEMENTING AGENCY COUNTRIES

Financing Municipal Energy Efficiency Alliance to Save Energy CIS

Promoting Low Energy Use (or Low Emission) Building Program in China China National Engineering Research Center for Human Settlements China

Innovative Market Mechanisms and Regulatory Frameworks to Develop Biomass Energy for Sustainable Development (ESD) China Co-firing Potential in China

Promoting Renewable Energy and Energy Efficiency through City Energy Sustainable Energy Africa (SEA) South Africa Strategies in South Africa

More Private Pro-poor Small-Scale RE/EE Investments in South Asia The Small-Scale Sustainable Infrastructure India, Bhutan, Nepal Development Fund, Inc.

Creating a Link between Energy Services and Income Generation, Solar Electric Light Company (SELCO) India Using Innovative Financing as a Catalyst

Latin American Regional Sustainable Energy (RE/EE) Policy Development Forum Organization of American States (OAS), Brazil, Mexico, Chile, the REEEP Regional Secretariat Guatemala,Argentina, for Latin America & the Caribbean Colombia, Ecuador, El Salvador, Nicaragua

Increasing the Supply of CDM Gold Standard Projects* IT Power and WWF Philippines, China, Brazil * unsuccessful

IRELAND: Securing Financing for RE / EE Projects in Southern Africa through SouthSouthNorth Tanzania, Mozambique Gold Standard CDM* * unsuccessful

I Third Programme Cycle –– 2005/6

UNITED KINGDOM:

PROJECT IMPLEMENTING AGENCY COUNTRIES

6th Inter-Parliamentary Meeting on Renewable Energy and Energy Efficiency PRASEG/EUFORES Global

Removing Barriers to Residential Energy Efficiency in Central and Eastern Europe Alliance to Save Energy Moldova,Armenia, Ukraine, Russia, Bosnia and Herzegovina, Serbia, Montenegro

Innovative Financing to Accelerate Solar Water Heating Green Markets International Brazil, Caribbean

Western Governors’ Association Clean and Diversified Energy Advisory Western Governors’ Association USA, Mexico, Canada Committee Report

Establishment of an RE/EE Financing Facility for Brazil Fiorello H. LaGuardia Foundation Brazil

Creating Energy Efficiency Financial Models for the South African Urban Water Sector Alliance to Save Energy South Africa

International Sustainable Energy Assessment University of Colorado Global

Regional Program on Electrical Energy Efficiency in Industrial and Commercial BUN-CA Mexico, Central Service Sectors in Mexico and Central America America

Capacity Building for State Regulators and Policy Makers in Mainstreaming TERI India RETs in a Reformed Electricity Sector

Development of a Sustainable Financing Mechanism for the Implementation Econoler International India of Energy Efficiency Street Lighting Projects in India (State of Madhya Pradesh)

78 Dissemination of Best Practice of Village Power to East Asian Countries Beijing Jike Energy New Tech Development Co. Mongolia, China, DPR Korea, RO Korea, Japan

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Developing a National Implementation Roadmap for Wind in China CRED China

Developing a Financial Model for Renewable Energy Upgrade Interventions SouthSouthNorth South Africa in Urban Low Income Housing*

PEMF2 –– Asia Sustainable Energy Fund* Emerging Power Partners South East Asia, China, * unsuccessful India

I First and Second Programme Cycles –– 2003/5

UNITED KINGDOM:

PROJECT IMPLEMENTING AGENCY COUNTRIES

Community Solar Energy Project, Paranhos BP Angola

Electrical Appliance Energy Efficiency and Labelling Public Education Campaign Ghana Energy Foundation Ghana

Sustainable Development Energy Training for Decision Makers AEA Technology/Energy Foundation of Ghana Ghana

Promotion of Efficient Biomass Cogeneration IRSEAD Kenya

Productivity and Profitability Improvement of Five Salt Manufacturing Communities in Uburu Salt Lake in Ebonyi State Using Solar Energy UNIDO Nigeria

Sustainable Energy Development of Ebonyi State UNIDO Nigeria

Removal of Barriers to Renewable Energy Implementation in South Africa Panoramic Quality Services South Africa (Small-Scale Hydro)

Co-ordination of the Regional Southern Africa Renewable RAPS Finance South Africa Energy and Energy Efficiency Financier Network

Opportunities for Black Economic Empowerment Energy Efficiency Enterprises IIEC - Africa South Africa

Sustainable Energy Regulation Network for Southern Africa (SERN) AGAMA Energy South Africa

Developing Licensing Frameworks for the Connection of Small-Scale IT Power West Africa Distributed Generation Technologies in West Africa

Promoting Sustainable Energy Planning in Provincial and Local Regional IT Power China Development Departments in China

Disseminating the Best Practice Energy Service Companies Programme Chinese Renewable Energy Industries Association (CREIA) China to Western Provinces of China and Neighbouring Countries, Notably Mongolia

China Environment Fund 2004 Tsinghua Venture Capital Management China

North-West Yunnan Rural Financial Initiative Global Environment Institute China

Developing the REEEP Sustainable Energy Planning, Policy and Regulatory Network IT Power UK, IT Power China, CREIA in East Asia, Using Tradable Renewable Energy Certificates as an Initial Focal Area China

Clean and Renewable Energy Development and Energy Efficient University of Cambridge, UK/Chongqing University, China China Building Design in West China

Quantifying the Benefits of Decentralised Energy World Alliance for Decentralised Energy (WADE) China

Micro-scale Renewable Energy Venture Finance Programme Environment, Energy and Enterprise Ventures (e3v) India

Commercialisation of Energy Efficient and Renewable Technologies in India TERI India

Private Pro-poor Small-Scale Renewable Energy or Energy Efficient Small-Scale Sustainable Infrastructure Investments in South Asia Development Fund (S3IDF) India, Sri Lanka, Nepal

Himalayan Rural Lighting Initiative Environment, Energy and Enterprise Ventures (e3v) India

Indian Renewable Energy Enterprise and. Development Fund (IREED) BTS Investments India 79 Electricity Sector Governance in Asia World Resources Institute Various

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

PROJECT IMPLEMENTING AGENCY COUNTRIES

Innovative Financing for Energy Efficiency Resource Mobilisation Advisers Philippines/Mexico

Model Bio-Energy Systems for Rural Development Preferred Energy Inc. Philippines

Integrated Cane and Residue Collection Study Bronzeoak Philippines

Promoting Small-Scale Renewable Energy Technologies in Under-Served Cemina Brazil Poor Communities through Awareness Raising and Educational Programmes

Water Pumping for Productive Use in Brazil’s North-East Region Instituto Eco-Engenho, plus BP Solar, LaGuardia Brazil Foundation, Centre for Management under Regulation at Warwick Business School

Brazil Renewable Energy Finance Capacity-Building Programme Environment, Energy and Enterprise Ventures (e3v) Brazil

Assessing the Potential for Development of Clean Development Eco-Securities Mexico Mechanism Projects in the Animal Manure Sector in Mexico

Effective Policy Implementation: Education of Regulators Centre for Resource Studies USA and Regional Information Sharing

REEEP Initiative North America Secretariat American Council on Renewable Energy USA (ACORE), LaGuardia Foundation

Building a Better Tomorrow:The Social, Economic and Environmental Benefits Alliance to Save Energy Non-specific of Deploying Energy Efficiency Practices and Technologies in the Building Sector

Renewable Energy and International Law Project (REIL) REIL Various

Sustainable Energy Regulation Network (SERN) Warwick Business School Various

Legal Framework for International TREC System IT Power Non-specific

Financing & Funding Models Programme Work REEEP International Secretariat Various

ASEAN/Pacific Project Facility MCD Ltd. Various

Portfolio-based Energy Planning Process Science and Technology Policy Research (SPRU), Multiple University of Sussex

Assessing the Potential for Tradable Renewable Energy Certificates to Support IT Power Multiple Renewable Energy in Developing Countries

Building Business and Investment Community Engagement UK BCSE UK

Monitoring and Evaluation of the Impact of Renewable Energy Programmes: IT Power UK Developing a Toolkit for Applying Participatory Approaches

User-Based Energy Portfolio Planning SPRU, University of Sussex Multiple

Global Sustainable Energy Islands Initiative (GSEII) Organisation of American States (OAS) Dominica, Grenada, St. Lucia

Initiate a Regional Energy Efficiency Standards Network in Asia-Pacific ISPQ - Europe Non Specific Economic Cooperation Region

REEEP Brazil/China Finance Initiative The Global Environmental Institute Brazil

The Gold Standard for CDM and JI Leveraging Carbon Finance to WWF Non-specific Promote Renewables and Energy Efficiency

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Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX C

REEEP Programme Priorities 2007/8

PREAMBLE • the provision of finance, noting the ects for financing through conventional demand for micro-finance and pre- and/or carbon finance mechanisms; REEEP’s objective is to achieve greater use development/seed capital for smaller- • support for the establishment and of renewable energy and greater energy scale developments; efficiency globally in order to deliver social, ongoing activities of at least two nation- • active participation by domestic and environmental and economic benefits. The al or regional networks that draw regional investors, financial institutions objectives, priorities and metrics that fol- together the finance and developer and capital markets,recognising both the communities and enhance access to low are designed to provide an overarching need to provide targeted training and investment and project implementation; structure for REEEP’s activities in its two- support and the benefits of networks • the active dissemination of information theme focus –– Business and Finance; and that connect all market participants; Policy and Regulation.All REEEP’s activities, on the value and success of RE and EE • opportunities for the bundling of proj- including its support for projects, follow investments and linkages to the carbon ect investments to provide an ade- this framework. market, through media, appropriate quate scale that will attract finance; fora, workshops and conferences. As REEEP gains more experience with pro- • mechanisms for mitigating or managing grammes, from the next programme cycle investment risk; POLICY AND REGULATION onwards REEEP will try to pilot initiatives • the specific needs of the financing of PRIORITIES 2007/8 to work proactively and directly with gov- energy efficiency/ESCOs; ernments through its partners and • existing opportunities to access Favourable policy and regulatory frame- Regional Secretariats and to develop and finance available through carbon mar- works are key to the greater uptake of implement projects that support the pro- ket mechanisms; renewable energy and energy efficiency. gramme priorities and objectives. Support • the value and importance of income REEEP aims to stimulate policies and regu- to the replication and scaling up of suc- generation in energy delivery within latory mechanisms that facilitate renewable cessful REEEP projects financed in 2005 rural and/or smaller-scale developments; energy and energy efficiency through activ- will also be piloted.These initiatives will be ities with key stakeholders –– inter-govern- • the review and dissemination of infor- achieved through changes to the pro- mental organisations, national and local mation that supports these objectives gramme processes and through dedicated governments and regulatory bodies –– at in enhancing access to investment. funding streams. three key stages of the policy process:

Metrics • policy awareness and promotion –– BUSINESS AND FINANCE increasing knowledge and understand- PRIORITIES 2007/8 In line with the above objectives, support will be provided to help deliver the follow- ing of polices and regulatory mecha- Investment is a fundamental element in the ing outcomes, recognising that such out- nisms that facilitate renewable energy development of RE and EE. With underly- comes may occur beyond the period of and energy efficiency, and promoting ing policy and regulatory support, these REEEP’s support: their take-up through dissemination activities and events; markets can be accelerated through tar- • the establishment of at least two new geted finance facilities and the increasing or enhanced financial facilities for RE • policy development –– providing sup- attraction of mainstream investment as and EE implementation; port and capacity building for policy risk management approaches and accept- design through assistance with writing • the demonstrable increased engage- able returns become well established. ment of local financial institutions in primary and secondary legislation, the RE and EE market or a commit- codes of practice etc., and the review of such instruments; Objectives ment to engage following targeted training and support for national and Regional and national issues will influence • policy implementation –– providing 81 priorities but key activities for REEEP to government finance sectors; support and capacity building through support are seen as those that address: • documented successes in bundling proj- guidance on how to implement legisla-

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

tion and sharing experience on imple- Metrics mentation issues. • To have substantial engagement with governments on the development of licensing, standards, connection agree- Objectives ments, codes of practice, labelling, and • Sustainable energy (renewable energy, planning guidance for sustainable ener- combined heat and power gy in at least three regions. [CHP]/cogeneration and energy efficien- cy) licensing,connection agreements and • To be formally engaged in the energy charges, standards, codes of practice, planning process in at least five countries. labelling, planning guidance etc., particu- • To undertake effective policy aware- larly as they affect newer and smaller ness-/promotion activities for local participants –– main focus on policy and/or national government officials development and implementation. and/or regulatory agency officials in at • Other energy efficiency issues such as least three regions. demand side management (DSM), •To work with governments to con- white certificates, measures to encour- tribute to the development and/or age behavioural change. implementation and/or review/revision • Media and stakeholder awareness and of policies or regulatory mechanisms in alliance building, including public participa- at least five countries. tion, accountability and governance issues. • Inter-governmental (global and regional) policy development and implementation –– leveraging existing international policy mechanisms and processes. • Sharing information on policies and regulatory mechanisms, including good practice and lessons learned, particu- larly activities that involve collabora- tion with existing relevant REEEP ini- tiatives (e.g. reegle, REIL, SERN). • Establishing and enhancing relationships and working jointly with potential and existing partners, for example on resource assessments, the integration of sustainable energy into energy plan- ning, the development of sustainable energy communities, data sharing etc. • Addressing implementation issues in countries and regions that have designed policies and/or regulatory mechanisms to facilitate RE and EE but where there is more to be done to enact and implement them effectively, particularly through sharing imple- mentation experiences within and between regions. • Reviewing and revising policies and reg- ulatory mechanisms within individual countries and regions that have been in place for some time, to assess their 82 effectiveness in stimulating RE and EE and to recommend and/or design improvements.

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX D

REEEP Regional Secretariats and Focal Points

REGIONAL SECRETARIATS: Latin America Russia and the and the Caribbean Former Soviet Union Central and Eastern Europe Argentina, Bolivia, Brazil, Chile, Kazakhstan, the Russian Albania, Bosnia and Dominica, Dominican Republic, Federation, Ukraine Herzegovina, Bulgaria, Croatia, El Salvador, Grenada, Czech Republic, Estonia, Russian Regional Environmental Centre Guatemala, Honduras, Jamaica, Hungary, Latvia, Lithuania, 1st Volkonsky Lane 13, Bldg. 2 Mexico, Nicaragua, Peru, Moscow 127473, Russia former Yugoslav Republic of St. Kitts and Nevis, St. Lucia Tel:7 495 737 6448 Macedonia, Montenegro, Poland, Fax: 7 495 737 6449 Romania, Serbia, Slovakia, Organization of American States Ms. Svetlana Frenova Slovenia, Turkey 1889 F Street NW REEEP Regional Manager Washington, D.C. 20006, USA Email: [email protected] The Regional Environmental Center Fax: 1 202 458 3560 for Central and Eastern Europe (REC) Mr. Mark Lambrides Ady Endre ut 9–11 Division Chief Southern Africa 2000 Szentendre, Hungary Tel:1 202 458 6261 Angola, Botswana, Lesotho, Fax: 36 26 311 294 Email: [email protected] Malawi, Mozambique, Namibia, Ms. Zsuzsa Ivanyi Mr. Juan-Cruz Monticelli South Africa, Swaziland Head, Climate Change Department Energy Specialist Tel:36 26 504 000 Tel:1 202 458 3745 AGAMA Energy (Pty) Ltd. Email: [email protected] Email: [email protected] The Green Building 9B Bell Crescent Close Ms. Judit Balint Westlake Business Park Project Manager North America Westlake 7645, South Africa Tel:36 26 504 031 Tel:27 21 701 3364 Email: [email protected] Canada, the United States of America Fax: 27 21 7013365 Mr. Glynn Morris East Asia The Alliance to Save Energy (ASE) Managing Director China, the Democratic People’s 1850 M Street, NW #600 Email: [email protected] Republic of Korea, Hong Kong, Washington, D.C. 20036 Fax: 1 202 331 9588 Ms.Amanda Luxande Japan, Mongolia, South Korea REEEP Regional Manager Mr. Chuck Wilson Email:[email protected] Chinese Renewable Energy Industries Director of Public and Foundation Relations Association (CREIA) Tel:1 202 530 2228 No.A 2107 Wuhua Plaza Email: [email protected] South Asia A4 Chegongzhuang Dajie Ms. Audrey Cotton Bangladesh, Bhutan, India, Xi Cheng District Senior Associate Maldives, Nepal, Pakistan, Beijing 100044, China Tel:1 202 530 2239 Sri Lanka Fax: 86 10 6800 2674 Email:[email protected] Mr. Li Junfeng Asian Energy Institute (AEI) Secretary-General American Council on Renewable Habitat Place, Lodhi Road Tel:86 10 6800 2615 Energy (ACORE) New Delhi 110003, India Email: [email protected] 1600 K Street, NW, Suite 700 Tel:91 (11) 246 82111 Washington, D.C. 20006, USA Fax: 91 11 2468 2144 Ms. Ma Lingjuan Tel:1 202 393 0001 Dr. Ligia Noronha Secretariat Assistant Fax: 1 202 429 5532 Tel:86 10 68002617/18–102 Secretary Email: [email protected] Mr. Mike Eckhart Email: [email protected] President Mr. Shirish Garud Email: [email protected] REEEP Regional Manager Mr.TomWeirich Email: [email protected] Director of Membership & Corporate Relations 83 Email:[email protected] Ms.Andi Plocek Membership Associate Email:[email protected]

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

South East Asia and the INTERNATIONAL Pacific SECRETARIAT: Australia, Brunei Darussalam, REEEP International Secretariat Burma (Myanmar), Cambodia, V.I.C. D1738 Cook Islands, East Timor, Wagramer Strasse 5 Federated States of Micronesia, 1400 Vienna,Austria Tel:43 1 26026 3425 Fiji, Indonesia, Kiribati, Laos, Fax: 43 1 21346 3425 Malaysia, Marshall Islands, Dr. Marianne Moscoso-Osterkorn Nauru, New Zealand, Niue and International Director Tokelau, Palau, Papua New Ms. Katrina Lederer Geh Guinea, the Philippines, Samoa, Administrative Assistant Singapore, Solomon Islands, Email: [email protected] Thailand, Tonga, Tuvalu, Vanuatu, Vietnam Clean Energy Council (Australia) Suite 201, Level 2, 18 Kavanagh Street Southbank 3006, Australia Tel:61 3 9929 4108 Fax: 61 3 9929 4101 Ms.Amy Kean REEEP Regional Manager Email:[email protected] Ms. Eva Oberender REEEP Regional Manager Email: [email protected]

REGIONAL FOCAL POINTS: North Africa Algeria, Egypt, Libya, Morocco, Tunisia Mr.Aldo Iacomelli MEDREP – Ministry for the Environment, Land and Sea Department for Research, Environment and Sustainable Development Via Cristoforo Colombo 44 00147 Rome, Italy Tel:39 06 57228182 Fax: 39 06 57228177 Email: [email protected]

West Africa Mr. Dorian Vasse ECOWAS 101 Yakubu Gowan Crescent Asokoro District P.M.B 401 Abuja Nigeria Tel:234 9 31 47 6479 Fax: 234 9 3143005/3147646 Email: [email protected]

84

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX E

List of Partners

Governments India West Bengal Renewable Energy Development Angola Appellate Tribunal for Electricity Agency (WBREDA) Argentina Indian Renewable Energy Development Agency Mexico Australia Limited (IREDA) Council of Science and Technology of the State of Guanajuato (CONCyTEG) Austria Morocco Brazil Centre de Développement des Energies UK Canada Renouvelables Northern Ireland Authority for Energy Chile Nepal Regulation France National Planning Commission Secretariat USA Germany Oregon Department of Energy Ghana Palestinian Authority Palestinian Energy and Environment Research Guatemala Center (PEC) Multilateral Organisations Hong Kong and Programmes Hungary Peru African Development Bank: Sustainable Iceland Executive Direction of Projects of the Ministry Development & Poverty Reduction Unit, of Energy and Mines of Peru Indonesia Finesse Africa Programme Ireland Uganda CARICOM: Caribbean Renewable Energy Development Programme (CREDP) Italy Ministry of Energy and Mineral Development COGEN 3 Japan Ukraine European Commission Mexico Ministry of Fuel and Energy of Ukraine Organization of American States The Netherlands UK UNEP New Zealand Environment Agency The Philippines Met Office UNIDO Romania Senegal Regional Government NGOs Singapore Agencies Australia South Africa World Council for Renewable Energy/Asia Canada South Korea Pacific (WCRE Asia Pacific) Ontario Ministry of Energy Spain Belgium Sri Lanka China COGEN Europe St. Lucia Administrative Center for Panzhihua's Agenda European Insulation Manufacturers Association (EURIMA) Switzerland 21 (ACPA21) Tunisia Gansu Natural Energy Research Institute EUROACE United Kingdom (GNERI) European Copper Institute United States of America India European Forum for Renewable Energy Yemen Chhattisgarh Biofuel Development Authority Sources (EUFORES) Croatia (signature pending) (CBDA) European Renewable Energy Council (EREC) Norway (signature pending) Karnataka Renewable Energy Development Brazil Slovakia (signature pending) Maharashtra Energy Development Agency Brazilian Foundation of America Inc. (MEDA) RENOVE Non-conventional Energy Development Central Government Corporation of Andhra Pradesh Ltd. Bulgaria Ministries and Agencies (NEDCAP) Black Sea Regional Energy Centre (BSREC) Czech Republic Orissa Renewable Energy Development Agency Cameroon 85 The Ministry of Environment (OREDA) Energy and Sustainable Development in Africa of the Czech Republic Rajastan Renewable Energy Corporation Ltd. (ESDA)

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Global Village Cameroon (GVC) Kenya The Royal Society Canada African Energy Policy Research Business Council for Sustainable Energy Network/Foundation for Woodstove Canadian Association for Renewable Energies World Alliance for Decentralized Energy Dissemination (AFREPREN/FWD) Canadian Energy Efficiency Alliance (CEEA) (WADE) Environmental Information Network of Africa Clean Development Alliance USA Institute for Research in Sustainable Energy and Energy Innovation Network (EnergyINet) Development (IRSEAD) AHEAD Energy Corporation North American Insulation Manufacturers Rural Partnership in Research & Sustainable Alliance to Save Energy (ASE) Association Canada (NAIMA Canada) Development–Africa (PATNET-AFRICA) American Council on Renewable Energy Pembina Institute (ACORE) Liberia Pollution Probe Center for Resource Solutions Center for Sustainable Energy Technology China Empower Program Centre for Renewable Energy Development Former Yugoslav Republic of Fiorello H. LaGuardia Foundation (CRED) Macedonia Green Markets International Inc. Chinese National Engineering Research Center Macedonian Center for Energy Efficiency for Human Settlements (CNRCHS) (MPPM) International Institute for Energy Conservation (IIEC) Chinese Renewable Energy Industries Association (CREIA) Mali Institute for Market Transformation Mali Folk Center Efficient Lighting Initiative (ELI) Quality Institute for Sustainable Power Certification Institute Mexico Massachusetts Renewable Energy Trust International Network on Small Hydropower Asociation de Empresas para el Ahorro de la National Association of State Energy Officials (IN-SHP) Energia en la Edificacion, A.C. (AEAEE) (NASEO) Jiangsu & Nanjing Energy Conservation Center Mongolia North American Insulation Manufacturers Shenzhen Energy-Saving Association Center for Energy, CDM & Environment Association (NAIMA) Regulatory Assitance Project (RAP) Ecuador Netherlands Corporación para la Investigación Energética Renewable Energy International Law Project Enabling Access to Sustainable Energy (EASE) (CIE) (REILP) France Nigeria Renew the Earth Groupe Energies Renouvelables, Centre for Research & Action on Development The Small-Scale Sustainable Infrustructure Environnement et Solidarités (GERES) of Locales, Regions and the Environment Development Fund (S3IDF) (CRADLE) Winrock International Ghana Fantsuam Foundation Ghana Energy Foundation World Resources Institute (WRI) Kumasi Institute of Technology and Palestinian Authority Worldwatch Institute Environment (KITE) National Organisation for Development World Wildlife Fund Guatamala Russia Vietnam Association of Generators with Renewable Ecoline Environmental Assessment Center Research Center for Energy and Environment Energy (AGER) Environmental Projects Consulting Institute (RCEE) Fundacion Solar Sustainable Energy Development Center Hungary (SEDC) Businesses Regional Environmental Center (REC) Slovakia Argentina India Center for Nuclear Safety (CENS) Torresolar SRL Electronics Gram Othan Samiti South Africa Australia Indira Gandhi Integral Education Centre AGAMA Energy Baker & Mckenzie Non-conventional Energy and Environment for African Forum for Utility Regulators (AFUR) Rural and Urban (NEERU) nabCapital –– A division of National Australia Sustainable Energy Africa Bank Renewable Energy & Agricultural Development Foundation (READ) Tanzania Austria Society of Energy Engineers and Managers Environmental Protection and Management KWI Management Consultants & Auditors (SEEM) Services (EPMS) Gmbh The Energy and Resources Institute (TERI) UK “Partner for Sure” Winrock International India British Association for Biofuels and Oils Pöyry Energy Gmbh (formally Verbundplan Gmbh) Israel Climate Change Solutions Mediterranean Energy and Ecology Center VA TECH Finance 86 Campaign to Protect Rural England (CPRE) –– Kazakhstan Somerset Branch Bangladesh Climate Change Coordination Centre Institute for Sustainable Power Prokaushali Sangsad Limited (PSL)

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

Bulgaria Norway I&I Group Inc. Via Expo Ltd. Norsk Energi (Norwegian Energy Efficiency ICF International Group) Canada Intrinergy Econoler International Inc. Pakistan LLW Trading, Llc. Green Power Labs Inc. Packages Ltd. Morse Associates Inc. (MAI) International Financial Consulting Poland Owens Corning Sustainable Energy Partners China Environmental Investment Partners Beijing Jike New Tech Development Company Portugal (Beijing Jike Co.) Solutions for Integral Project Planning and Higher Education Facilities Energya and Environmental Development Structural Implementation (SPISSIA) Argentina Consulting Limited Slovakia Fundación Bariloche London Asia Capital Interenergoresurs Ltd. India Finland South Africa Indian Institute of Social Welfare and Business Emerging Power Partners Ltd. Management (IISWBM) Edvest Energy Pty Ltd. PSG College of Technology & Polytechnic Germany Energy & Development Group (EDG) College Get Information Technology Gmbh Nyathi Energy Service Consultants Ltd. International Investor Inventor Connection Parallax –– Sustainable Development Solutions Italy (IIIC) (Pty) Ltd. University of Rome Greece Themvu Projects Management and Resources UK High Technology Expo Ltd. Switzerland Imperial College London Hong Kong A+B International University of Hull Energy Resources Management Winsome Resources University of Sussex Hungary Tanzania USA Hungary Kipcalor Energetics Llc. Business Machines Tanzania Ltd. Energy Environment Security Intiative, University of Colorado School of Law India Turkey Consolidated Energy Consultants Ltd. Project and Finance Group Dalmia Electrodyn Technologies Pvt Ltd. Uganda Mitcon Consultancy Services Ltd. Solar Energy for Africa Shimshon Renewables UK Tathastu Corporation ABN AMRO Bank NV Indonsesia AEA Technology Plc. PT Gikoko Kogyo Indonesia UK Agrinergy Ltd. Italy Blyth Star Enterprises Ltd. Italcompany Group BP Solar Charger & Mobile Computing (SOCO) Carbon International Kyrgyzstan Carbonsense Demonstration Zone Energy and Water CE-CAP (formally Ceres Capital) Efficiency Ltd. ECO Ltd and Hedon Household Energy Network Nepal Ecosystems International Ltd. TMB-Energietechnik Energy for Sustainable Development Ltd. E+Co Fundmore Merchant Bank The Netherlands ICECAP Ltd (formally Less Carbon Ltd.) E+Co IT Power Ecofys BV Le Matin Du Sahara RR Energy Low Carbon Cities Initiative Nigeria North Energy Associates International Centre for Energy, Environment & Vinay Chand Associates Development (ICEED) 87 Nigerian National Petroleum Corporation USA Energy & Security Group

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX F

List of Members of REEEP Bodies 2007/8

Finance Committee Elfriede More Steve Sawyer Members Ministry for Agriculture, Forestry, Environment Representative of Business, GWEC and Water Management,Austria • Rapporteur James Cameron Istvan Pomazi Climate Change Capital • Chairman Sven Teske Regional Representative, Central and Eastern Greenpeace • Deputy Rapporteur Europe & Turkey Hugo Lucas Institute for Energy Diversification and James Cameron Shen Longhai Efficiency, Spain • Deputy Chairman Climate Change Capital • Treasurer Regional Representative, East Asia Keith Baker Heinz Leuenberger Monica Servant Department of the Environment,Water, UNIDO• Deputy Treasurer Regional Representative, Latin America & the Heritage and the Arts,Australia • Member Caribbean Maher Chebbo Andy Bowcott SAP AG • Member Judy Siegel Climate Change International, Environment Regional Representative, North America Canada • Member Corrado Clini Ministry of Environment, Land and Sea, Italy • Irina M. Yazvina Corrado Clini Member Regional Representative, Russia & the FSU Ministry of Environment, Land and Sea, Italy • Hugo von Meijenfeldt Debashish Majumdar Member Ministry of Housing, Spatial Planning and the Regional Representative, South Asia Matthew Collins Environment, the Netherlands • Member Air Quality and Climate Change Section, Anne Kari Hansen Ovind Keith Baker Department of the Environment, Heritage and Ministry of Foreign Affairs, Norway • Member Regional Representative, South East Asia & the Local Government, Ireland • Member Pacific Rajendra K. Pachauri Chris Dodwell TERI • Member Kadri (Kevin) Nassiep Department for Environment, Food and Rural Regional Representative, Sub-Saharan Africa Affairs, UK • Member Martin Schöpe Federal Ministry for the Environment, Nature Christine Egan Hugo von Meijenfeldt Protection and Nuclear Safety, Germany • Programme Board Observer representing Ministry of Housing, Spatial Planning and the Member CLASP Environment, the Netherlands • Member Griffin Thompson Hannu Eerola Anne Kari Hansen Ovind Department of State, USA • Member Programme Board Observer representing EEP Ministry of Foreign Affairs, Norway • Member Piotr Tulej John Christensen Martin Schöpe Environment Directorate-General, Programme Board Observer representing Federal Ministry for the Environment, Nature European Commission • Member GNESD Protection and Nuclear Safety, Germany • Sarah Adams Member Martijn Wilder Baker and McKenzie • Member Programme Board Observer representing Griffin Thompson GVEP Department of State, USA • Member Programme Board Members Konrad Otto-Zimmermann Piotr Tulej and Observers Programme Board Observer representing ICLEI Environment Directorate-General Morgan Bazilian European Commission • Member Chair, Programme Donor Representative, Aldo Iacomelli Ireland Programme Board Observer representing Otto Zach MEDREP Federal Ministry of Economics and Labour, Martin Devine Austria • Member Vice-Chair, Programme Donor Representative, United Kingdom Robin Carter Programme Board Observer representing Governing Board Anne Kari Hansen Ovind United Kingdom Programme Donor Representative, Norway Henry Derwent Marianne Osterkorn Climate, Energy and Environment Risk, Defra, Hugo Lucas REEEP International Director 88 UK • Chairman Donor Country Representative, Spain Binu Parthan Alfred Ofosu-Ahenkorah Horst Biedermann Secretary to Programme Board and REEEP Energy Commission, Ghana • Deputy Chairman Representative of Business, EURIMA Deputy Director – Programme Coordination

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

ANNEX G

List of Acronyms and Abbreviations

ACORE • American Council on Renewable CRED • Centre for Renewable Energy FONDELEC • Latin American Clean Energy Energy Development Services Fund ADB • Asian Development Bank CREIA • Chinese Renewable Energy Industries FSU • Former Soviet Union Association AEI • Asian Energy Institute G8 • Group of Eight CROP • Council of Regional Organisations in AFREPREN/FWD • African Energy Policy GB • Governing Board the Pacific Research Network/ Foundation for Woodstove GDP • Gross Domestic Product Dissemination CSD • Commission for Sustainable Development GED • Action Group for Renewable Energies AFUR • African Forum for Utility Regulators and Sustainable Development CSET • Centre for Sustainable Energy AGO • Australian Greenhouse Office Technology GEEREF • Global Energy Efficiency and Renewable Energy Fund APEC • Asia-Pacific Economic Cooperation DEFRA • Department for Environment, Food APERC • Asia-Pacific Energy Research Centre and Rural Affairs GEF • Global Environment Facility AREED • African Rural Energy Enterprise DG • Distributed Generation GFSE • Global Forum on Sustainable Energy Development DM • Development Marketplace GHG • Greenhouse Gas ASE • Alliance to Save Energy e5 • European Business Council for Sustainable GMI • Green Markets International ASEAN • Association of Southeast Asian Energy GNESD • Global Network on Energy for Nations e5-SEA • e5 Sustainable Energy Accelerator Sustainable Development ASFC • African Sustainable Fuels Centre EC • European Commission GOF • Global Opportunities Fund BCSE • Business Council for Sustainable Energy ECOWAS • Economic Community of West GS • Gold Standard BNDES • Brazilian National Development Bank African States GSEII • Global Sustainable Energy Islands BUN-CA • Biomass Users’ Network – Central EE • Energy Efficiency Initiative America EEC • Energy Efficiency Coalition GVEP • GlobalVillage Energy Project BSREC • Black Sea Regional Energy Centre EEP • Energy and Environment Partnership for GW • Gigawatt CAREC • Central American Renewable Energy Central America ICLEI • The International Council for Local and Cleaner Production Facility EGI • Energy Governance Initiative Environmental Initiatives CARICOM • The Caribbean Community EGTT • Expert Group on Technology Transfer ICPEEB • Indian Council for the Promotion of Energy Efficiency Business CDM • Clean Development Mechanism EREC • European Renewable Energy Council IDER • Institute for Sustainable Development CDP • Carbon Disclosure Project ERI • Energy Research Institute and Renewable Energy CEE • Central and Eastern Europe ERRA • Energy Regulators Regional Association IEA • International Energy Agency CEEA • Canadian Energy Efficiency Alliance ESCO • Energy Services Company IEE • Intelligent Energy Europe CER • Certified Emissions Reductions ESD • Energy for Sustainable Development IETA • International Emissions Trading CETC-Varennes • CANMET Energy ESIS • Energy Standards Information System Association Technology Centre–Varennes EU • European Union IFC • International Finance Corporation CHP • Combined Heat and Power EUFORES • European Forum for Renewable IIEC • International Institute for Energy CIS • Commonwealth of Independent States Energy Sources Conservation CLASP • Collaborative Labeling and Appliance EURIMA • European Insulation Manufacturers IMT • Institute for Market Transformation Standards Program Association IPM • Intergovernmental Preparatory Meeting CO • Carbon Dioxide FC • Finance Committee 2 IREDA • Indian Renewable Energy CONAE • Comision Nacional para el Ahorro FCO • Foreign and Commonwealth Office, UK Development Agency de Energia FIDE • Fideicomiso para el Ahorro de Energia IREED • Indian Renewable Energy Enterprise CONCyTEG • Council of Science and Electica Development Fund Technology of the State of Guanajuato 89 FIELD • Foundation for International IRSEAD • Institute for Research in Sustainable COP • Conference of the Parties Environmental Law and Development Energy and Development

REEEP Annual Report 2007/8 ANNEXES

Annex A Annex B Annex C Annex D Annex E Annex F Annex G

IS • International Secretariat PDD • Project Design Document SERN • Sustainable Energy Regulation Network ISEA • International Sustainable Energy PEMF2 • Private Energy Market Fund 2 SMEs • Small and Medium-Sized Enterprises Assessment PIESD • Pacific Islands Energy for Sustainable SOPAC • South Pacific Applied Geoscience ISES • International Solar Energy Society Development Commission ISO • International Standards Organisation PIN • Project Idea Note SPRU • Science and Technology Policy Research, University of Sussex IT • Information Technology PRASEG • Parliamentary Renewable and Sustainable Energy Group SSN • SouthSouthNorth JI • Joint Implementation PV • Photovoltaic SWH • Solar Water Heating KW • Kilowatt PVPS • Photovoltaic Power Systems TED • Training and Education Database LDC • Least Developed Countries R&D • Research and Development TERI • The Energy and Resources Institute LEAD • Leadership for Environment and Development RE • Renewable Energy TNUIFSL • Tamil Nadu Urban Infrastructure Financial Services Limited M&E • Monitoring and Evaluation REEEP • Renewable Energy and Energy Efficiency Partnership TREC • Tradable Renewable Energy Certificate MDGFF • Millennium Development Goal Financing Facility REC • Regional Environmental Center for TWC • Tradable White Certificate Central and Eastern Europe MEDREP • Mediterranean Renewable Energy UK • United Kingdom Programme REEES • Renewable Energy and Energy UKBCSE • UK Business Council for Efficiency Services METREHC • Mediterranean Renewable Sustainable Energy Energy Use for Heating and Cooling ReEx • ReEx Capital Asia UN • United Nations MOFCOM • Ministry of Commerce of the REGA • Renewable Energy Generators of UNAM • National Autonomous University of People’s Republic of China Australia Mexico MOP • Meeting of Partners REIA • Renewable Energy in the Americas UNDP-GEF • UNDP Global Environment Initiative MOSAICO • Mobilising Sustainable Agriculture, Facility Infrastructure and Capital REIL • Renewable Energy and International Law UNDP • United Nations Development MOST • Ministry of Science and Technology of REN21 • Renewable Energy Policy Network Programme the People’s Republic of China for the 21st Century UNEP • United Nations Environment MoU • Memorandum of Understanding RENOVE • Renewable Energy Non-govern- Programme mental Organization Network MPSEB • Madyha Pradesh State Electricity UNFCCC • United Nations Framework Board RERA • Regional Electricity Regulators Convention on Climate Change Association of Southern Africa MW • Megawatt UNIDO • United Nations Industrial RESCO • Renewable Energy Services Company Development Organization MWp • Megawatt Peak RET • Renewable Energy Technology USA • United States of America NAIMA • North American Insulation Manufacturers Association RGGI • Regional Greenhouse Gas Initiative USAID • United States Agency for International Development NAPE • Naradowa Agencja Poszanowania RREC • Russian Regional Environmental Centre Energii S.A USEPA • United States Environmental RREP • Russian Renewable Energy Programme Protection Agency NARUC • National Association of Regulatory RS • Regional Secretariat Utility Commissioners VCOM •Voluntary Carbon Offset Mechanism S3IDF • Small-Scale Sustainable Infrastructure NDRC • National Development and Reform VER •Verified Emissions Reductions Development Fund Inc. Commission WADE • World Alliance for Distributed Energy S&L • Standards and Labels NGO • Non-governmental Organisation WBCSD • World Business Council for SAARC • South Asian Association for Regional NRDC • Natural Resources Defense Council Sustainable Development Cooperation OAS • Organization of American States WIREC • Washington International Renewable SANERI • South African National Energy Energy Conference OECD • Organisation for Economic Research Institute Cooperation and Development WRI • World Resources Institute SC • Steering Committee OLADE • Organización Latinoamericana de WSSD • World Summit on Sustainable SDC • Services for Developing Countries Energía Development SEA • Sustainable Energy Africa OOCUR • Organisation of Caribbean Utility WTO • World Trade Organization Regulators SEFI • Sustainable Energy Finance Initiative WWF • World Wildlife Fund PB • Programme Board SELCO • Solar Electric Light Company 90

REEEP Annual Report 2007/8 Copyright © REEEP 2008

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Acknowledgements The REEEP Annual Report 2007/8 has been produced by the REEEP Partners. Design and layout by the Regional Environmental Center for Central and Eastern Europe (REC).

Thanks to the REEEP Stakeholders who contributed to the text and all those who supplied photographs, and to Camilla Chalmers for producing this report.

Photographs: Ultra Tec (U) Ltd., (19) • Julia Freeman-Woolpert (23) Flickr.com

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