Transcript INTERNATIONAL SUPPORT TO PROMOTE TECHNOLOGY …

INTERNATIONAL SUPPORT TO PROMOTE
TECHNOLOGY TRANSFER AND
DEPLOYMENT, FOR RENEWABLE ENERGY
AND EFFICIENCY
IN GHANA
BY
WILLIAM GBONEY
INTERNATIONAL INSTITUTE OF
INFRASTRUCTURAL ECONOMICS AND
MANAGEMENT (I3EM)
ACCRA, GHANA.
April 8, 2009.
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Presentation Format
1.
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Summary of Phase 1:
Objectives
Policy Description
Barriers
2. Phase II
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Study Objective
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Link between Phase I and II
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Suggested Approach
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Key Issues to be addressed
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1.0 Phase 1 of Case Study: Analysis of existing policy,
Legal and Regulatory Frameworks for Renewable
Energy (RE) and Energy Efficiency (EE) Sectors in
Ghana
(a) Objectives:
(i) Identify key domestic polices which are SLOW –
MOVING, and would require international support and
cooperation
(ii) Identify domestic barriers affecting Renewable
Energy (RE) and Energy Efficiency (EE) development
(iii) Explore how international cooperation and support,
can be used to increase the scale and scope of RE
and EE
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2.0 Summary: Policy Description
(a)
(i)
(ii)
Resource Capacity Development:
Expand exploitation and development of RETs
Achieve at least 10% RE in overall energy mix by 2020
(b)
(i)
Increase Thermal Plant Efficiency:
Convert existing single-cycle oil-fired plants to combined cycle,
gas fired plants
Fuel switching: Light crude oil (LCO) to natural gas: West African
Gas Pipeline Project
(ii)
(c ) Energy Efficiency in energy intensive industries:
(i)
Undertake energy audit projects
(ii) Power Factor (PF) enhancement projects for industries to
achieve 0.90
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2.0 Summary of Policy Description: Continued
(d) Energy efficiency labeling and standards:
For equipment and appliances
(e) Market Development:
Create and expand market for RE Service
Promote use of solar PV, solar water heater and solar crop drying
(f) Renewable Energy Law:
(i)
Establish conducive enabling environment (i.e. policy, legal regulatory
frameworks (etc) to promote:
(ii)
Grid-connected RE systems
(iii)
Stand-Alone systems
(g) Bio-fuel development:

Encourage cultivation of Jatropha plant

Bio-diesel production
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3.0 SUMMARY OF BARRIERS FROM PHASE 1
a.
b.
c.
d.
e.
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Policy
Legal and Regulatory
Economic and Financial
Market expansion and technology deployment
Barrier analysis was done with respect to:
Grid Connected systems
Mini-grid systems
Stand-Alone systems
Energy Efficiency
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3.1 Barriers: Grid Connected Systems
(a)
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Policy Barriers:
Lack of coherent and comprehensive policy
The electricity structure can act as a barrier
Lack of regulatory framework to support private sector
participation
(b) Economic Barriers:
(i)
Subsidizing of fossil – fuelled electricity (direct or indirect) Types
of subsides: Direct Financial transfer, energy services at less than
full cost etc.
(ii) Not accounting for the socio – environmental cost of fossil fuels
(iii) Not accounting for risks associated with future fossil – fuel price
fluctuations
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3.1 Barriers: Grid connected System – cont’d
(c) Legal and Regulatory:
(i)
Lack of legal and regulatory framework for renewables
(ii) Lack of basic laws and regulations. Example: Lack of transparent
pricing principles lack of access pricing rules, technical standards
(iii) RE do not receive full credit for the “value” of power generated
(d) Financial Barriers:
(i)
High up – front capital requirement, high interconnection costs
and lack of financing structures for small projects
(ii) Lack of access to credit
(iii) Perception: That RETs are relatively new, not sufficiently field
proven and expensive to purchase, install and maintain
(iv) High transaction costs
(v) Lack of appropriate skills
(vi) Information on cost is imprecise.
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(a)
(i)
Policy:
Policies to promote rural electrification not effectively
linked to promotion of mini – grid systems
(b) Legal and Regulatory:
(i)
(ii)
Lack of transparent pricing policy
Lack of knowledge on how to regulate mini – grid
systems
(iii) Lack of support to incentivise private sector rural
electricity systems
(iv) Lack of technical skills by maintenance staff
(v) Absence of appropriate administrative controls
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3.2 Barriers for Mini-Grid Systems – cont’d
(c) Financial and Economic:
(i)
High investment and transaction costs
(ii) Lack of access to capital
(iii) Inability to make accurate resource supply projections
(iv) Absence of incentives to support RETs for mini-grids
(d) Market risk as a barrier:
(i)
Inability of rural customers to pay the tariff
(ii) Uncertainty about customer demand
(iii) Lack of technical and business skills, and in regulating the
systems
(iv) De – coupling of community involvement and responsibility
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3.3 Barriers for stand – alone systems
(a)
(i)
Policy:
Policy for stand-alone systems do not form part of country’s rural
electrification policy
(b)
(i)
(ii)
Legal and Regulatory:
High upfront costs for both end-users and service providers
Inability to access capital
(d) Market Performance
(i) Lack of understanding on stand-alone systems by stakeholders
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3.4 Energy Efficiency Barriers
i.
Financing Barriers:
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High upfront cost
Payback period
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Unfamiliarity of EE with financing institutions
ii. Information Barriers:
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Targeted information absent
Lack of awareness of EE benefits
iii. Market organization and price distortion
iv.
v.
vi.
High Transaction cost
Lack of appropriate Institutions
Lack of adequate technical skills
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4.0 Phase II: International Support and Cooperation to
promote RE/EE technology development.
(a) Objective:
To overcome the barriers identified in phase I
Investigate how international support and cooperation
can be used to build on domestic policy, to promote
technology transfer and deployment in Ghana.
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5.0 What is technology transfer?
i.
It means more than just providing the hardware
ii.
Involves knowledge sharing and ability to adapt
technology to local environment
iii.
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Technology transfer also involves:
Building human and institutional capacity
Raising awareness among users/stakeholders
iv.
Technology transfer is also about the structures,
institutions and organizations
v.
Ability to adapt the technology to fit into the country’s
local and political institutions
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Technology assistance and transfer – cont’d
i.
Phase II to explore:
(a) South-South technology transfer
(b) North-South technology transfer
ii.
Identify mechanisms for large scale transfer of
technology. Example: Promote International
cooperation with equipment suppliers. Requires
dealing with Intellectual Property Right (IPR)
iii.
Technology transfer should also build upon sound and
existing local polices (i.e. bottom-up approach)
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6.0 Link between Phase I and II
(a)
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i.
ii.
iii.
Phase I: Identified the following as being necessary:
Credible Policy. Legal and regulatory frameworks:
Grid-connected RE systems
Mini-grid RE Systems
Stand-Alone Re systems
(b)
i.
ii.
iii.
iv.
International cooperation, technical and financial support for:
Large-scale grid-connected RE systems
Mini-grid RE and ESCOs
Stand-Alone RETs
Intensification of Energy Efficiency activities
(c )
Capacity building:
For policymakers, regulators, technicians, financing institutions
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7.0 Approach to Phase II of study
i.
ii.
a.
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b.
c.
d.
e.
To identify actions and mechanisms for international support,
which will enable Ghana overcome the barriers:
Key Issues to be addressed include:
Technical Assistance:
Policy and regulatory frameworks
Human and institutional capacity building for: Financial Intuitions,
policymakers and regulators, Technical
Bilateral Policy Implementation and Financial Support
(Grid Connected, Mini-grid and stand-alone systems, EE)
The concept of “regional innovation centres”
Discussion with stakeholders
Attempt to quantify the scale of support
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8.0 Financial Support
(i)
Even if credible regulatory regimes exist and good policies are in place,
FINANCING would still be required.
(ii)
Innovative financial instruments therefore need to be explored in Phase
II for grid-connected, mini-grid, stand-alone systems and energy
efficiency
(iii)
Direct government investment required; incentives required to leverage
private investment
(iv)
Financing mechanisms should be compatible with country’s local
circumstances
(v)
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Key features of financial support to be considered:
Should comprise a mix of grants and carbon finance
Should buy down cost of new technologies
Support pilot projects
Should Mitigate financing and technology risks
Must be able to finance incremental costs of moving to high efficiency
technologies
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9.0 Monitoring & Evaluation: Indicators
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Required:
To measure a programme’s progress towards
achieving short- and long-term objectives
To indicate the direction in which a programme or
policy is moving
As a source of feedback to improve performance
To facilitate understanding of a programme to
stakeholders or external audience
ii. Can be quantitative or qualitative
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10.0 Indicator Types
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Output-based Indicators
Outcome-based Indicators:
Intermediate outcome indicators: measure short – tem outcomes,
easily quantifiable
Impact indicators: measure long-term results
Indicators can be qualitative or quantitative
A good indicator should meet the ‘SMART’ LITMUS TEST:
S: Specific; M: Measurable; A: Achievable; R: Reliable;
T: Time-bound
In addition , the indicator:
Should be robust to ‘gaming’
Should generate self-reporting interest
Be cost effective
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