The U.S. Clean Energy Initiative Powering Sustainable Development from Village to Metropolis The U.S. Clean Energy Initiative Access to affordable, reliable, clean, and • The Global Village Energy Partnership (GVEP) efficient energy services is essential to will increase access to modern and affordable breaking the cycle of poverty and achieving energy services in areas either not served sustainable development. At the World or under-served by current energy delivery Summit on Sustainable Development, the systems. (USG lead: USAID) U.S. Government announced a new Signature Partnership for sustainable development – the • Efficient Energy for Sustainable Development (EESD) Clean Energy Initiative: Powering Sustainable will improve the productivity and efficiency of Development from Village to Metropolis. energy systems, while reducing waste and pollution, saving money, improving reliability, The “Powering Sustainable Development” and delaying the need for expensive new Initiative provides a foundation to meet generating capacity. (USG lead: DOE) President Bush’s commitment to alleviate poverty, support education and health • Healthy Homes and Communities (HHC) care, provide safe drinking water, reverse will promote clean transportation fuels the loss of environmental resources and (e.g. unleaded gasoline, low sulfur fuels), support the availability of new technologies and healthier indoor cooking and heating by revolutionizing the delivery of energy practices to reduce the estimated 3 million services to the world’s rural and urban poor. annual and readily preventable deaths The Initiative seeks to provide millions of associated with air pollution and unhealthy people with new access to energy services; patterns of energy use. (USG lead: EPA) increase the efficiency of energy, production, delivery and use; and significantly reduce readily preventable deaths and respiratory illnesses associated with motor vehicle and indoor air pollution. To achieve this aim, this U.S.-led, multi-year initiative has three parts: 1 Healthy Home s an d C om m u ni tie s (H H C ) ) P E V G Powering Sustainable Development( from Village to Metropolis p i h s r e n t r a P y g r e n E e g ) a l l D i S 2 V l E a E ( b t o l n G e e m h p T lo e v e D le ab in sta Su for rgy Efficient Ene The Global Village Energy Partnership Why GVEP Desired outcomes Objectives • Approximately 2 billion people are • 400 million people and 50,000 new • Catalyze country commitments to energy- without electricity communities served poverty reduction in rural, peri-urban and urban areas • Women and children in many developing • Significant number of countries with countries spend 1/3 of their productive energy-poverty reduction programs • Bridge the gap between investors, life transporting fuelwood and water suppliers and users to mitigate barriers • Cadre of trained entrepreneurs to energy access • Current activities do not link to broader energy needs in agriculture, water, • Increases in productivity, incomes, • Facilitate policy and regulatory telecom, small industry, natural resource environmental conservation, quality of life frameworks for scale-up to engage management, gender equity, health private sector and civil society and education sectors • Implementation vehicle for Millennium Development Goals • Serve as a marketplace for lessons • Individual efforts to date have not been learned, best practices sufficient: weak political commitments and • Large-scale replication of innovative, market barriers, insufficient number of business, technical and financial • Create and maintain effective coordination enterprises, not enough information and energy models mechanisms among stakeholders lesson sharing, inadequate financing, insufficient accountability for results • 10:1 leveraging of U.S. Government funding • Provide access to cleaner, more affordable energy sources for productive, • The global needs are beyond any single social and consumptive uses including organization and require a partnership lighting, cooking and heating services of organizations – public and private – to meet global energy service needs Case study – Urban energy access Goal In Ahmedabad, India, USAID is piloting a private sector – NGO alliance to improve Increased access to modern energy services electrical service to households living in informal urban settlements. In 2003, some 800 around the world households in four chaals (slums) were upgraded from illegal and unreliable electrical service for which they paid the equivalent of $5/month to illegal intermediate service providers. Households now pay about $50 for a legal connection. Local women are trained to read meters and to collect tariffs from households – for which they are paid by the city’s privately-owned electrical utility. The electrification of these communities has extended the number of hours that women can work, contributed to their ability to send their children to school, and provided their households with legal, safer, and more reliable electricity service. In addition, the utility has seen its unaccounted losses reduced to the industry standard of 10% in upgraded areas. This model is expected to ensure a long-term, sustainable solution to upgrade the living standards of slum dwellers. U.S. Government lead: USAID 3 Harnessing Energy for People, Productivity and Poverty Reduction GVEP Partners Case study – Rural energy access Over 280 donor governments, developing In the Philippines, USAID is developing off-grid renewable energy systems in 170 remote countries, international organizations, rural communities in the Autonomous Region in Muslim Mindanao, through the Alliance industry and members of civil society for Mindanao Off-Grid Renewable Energy (AMORE). Through solar-powered battery charging stations and individual batteries for households and public facilities, residents are now saving 70% each month of what they used to spend on kerosene for light. Partners commit to Residents now have increased opportunities for productive activities such as mat weaving, sewing, extension of ‘daylight’ hours for study time and household work. The AMORE • Increase energy access and reduce Project is electrifying remote communities of conflict-affected areas of Mindanao, lighting poverty homes and hearths, and providing communities with economic incentives to achieve peace. In this era of globalization and advanced technology, no one should be left in the dark. • 10-year “implementation-based and demand-driven” program • Advance market principles: energy sector reform, diversity of energy providers and funders • Consider multiple technologies, sectors and delivery approaches • Focus on the poor • Coordinate with related activities (national, local, regional) and partnerships • Agree to report on results 4 Efficient Energy for Sustainable Development Why EESD Desired outcomes Objectives • Three billion people have access only to • 20% energy intensity reduction in up to Assist host countries reduce poverty and get inadequate, unreliable and prohibitively 20 host countries ahead of their development curve through: expensive energy • Efficient energy projects in 20 countries • Leadership – Promote public leadership • In many developing economies, energy though community partnerships, projects demand is growing exponentially – • 10:1 leveraging of U.S. Government funding at public facilities, standards and labeling, energy expenses can be as high as 70% best practices, technical standards, and • Reduce the occurrence of blackouts and policies that spur demand for energy • Efficiency losses for generation, delivery brownouts in up to 10 major cities efficient products, services and and use of energy range from 20 to 50% technologies • Establish U.S. Community Partnerships • Even modest efficiency gains could free in up to eight countries • Finance – Facilitate locally managed up some $30 billion a year to address financial programs to attract affordable broader social and development goals • Federal Energy Management Plans saving and long-term financing and to scale-up at least 20% of central budget overhead projects that are ‘market’ driven based • Public-private partnerships needed to costs for improving public facilities in up on demand for capital and services foster clean energy projects, regional to 10 countries cooperation and integrated economic • Technology – Build capacity to access development • CLASP in up to 20 countries and adopt cleaner and more efficient technologies • Energy efficient building codes established Goal in up to 15 developing countries • Efficiency gains in energy production and delivery Improve the productivity and efficiency of • WATERGY in up to 20 countries energy systems, while reducing pollution • Modernizing industrial and and waste, saving money and improving • Financial facilities that support upgrades agricultural operations reliability through less energy intensive to 10,000 schools, 5,000 medical facilities products, more energy efficient processes and 10,000 low income multi-family • Project development and and production modernization buildings in 10 countries implementation services • Technical and managerial assistance to local entrepreneurs U.S. Government lead: U.S. Department of Energy 5 A Performance-Based, Market-Oriented Partnership Opportunity EESD Partners Case study Over 60 donor governments, developing In Mexico, DOE is closing the gap between sources of private capital and qualified energy countries, international organizations, and environmental projects. DOE is supporting the