ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE EGNRET

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ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE EGNRET 26/EGEE&C 28 Auckland, New Zealand 3

ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE EGNRET 26/EGEE&C 28 Auckland, New Zealand 3 -5 April 2006 Cary Bloyd Argonne National Laboratory Office of Science U. S. Department of Energy A U. S. Department of Energy Office of Science Laboratory Operated by The University of Chicago

ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE • • • Lead, USA: Larisa Dobriansky,

ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE • • • Lead, USA: Larisa Dobriansky, USDOE Objective: Develop New Business Models to Commercialize and Build Self-Sustaining Financing for Energy Efficiency and Renewable Projects that are smaller scale and have different risk profiles and higher investment hurdles than conventional energy projects. Four Functional Areas for Coordination: - Engage Financial Institutions and Private Sector through EBN and Expert Groups; - Promote Supportive Policy and Regulatory Frameworks; - Increase Awareness of Benefits of EE/RE Systems and Expand Database and Information Sharing System Capability; and - Develop Market Capacity and Mechanisms to Commercialize Financing. 2 Pioneering Science and Technology Office of Science U. S. Department of Energy

Task Force Supports APEC Energy Ministers • • 6 th EMM, Energy Ministers directed

Task Force Supports APEC Energy Ministers • • 6 th EMM, Energy Ministers directed the EWG: “to implement the recommendations of the ‘Energy Investment Report: Facilitating Energy Investment in the APEC Region. . ” APEC Economic Leaders called on EWG in October, 2003 “to work with the private sector and financial institutions to facilitate greater investment in clean and more efficient energy infrastructure and technologies. ” The Recommendations resulted from 3 financing workshops which carried out the direction of the APEC Economic Leaders. These efforts are part of the Longer-Term Measures to advance APEC’s Energy Security Initiative. 3 Pioneering Science and Technology Office of Science U. S. Department of Energy

Motivation for Finance Task Force • By 2020, energy trends indicate that total GDP

Motivation for Finance Task Force • By 2020, energy trends indicate that total GDP in APEC expected to double and demand forecast to grow by 60 percent. • Need for significant investments in energy infrastructure and an economic and environmental imperative to rationalize energy use through reducing energy demand energy intensity. • Public funds will not be sufficient to meet the region’s energy requirements; Private capital must be mobilized and the risks and costs of investment reduced. • Benefits of investment in cleaner, more efficient energy manifold: increased energy security, increased productivity/economic development and decreased energy-related environmental and health impacts. • Notwithstanding benefits, workshops revealed that Energy Efficiency and Renewable Energy markets are underdeveloped relative to their market potential; Workshops also recognized that funding is available but is not getting to qualified projects. • APEC’s EWG can help to close gap between project development and financing; Entails public-private partnerships to address risks and costs; 4 Focus on building local financial/commercial infrastructure to link private Office of Science Pioneering capital with project development. U. S. Department Science and Technology of Energy

Financing Task Force Activities(1) • Eight APEC economies have joined the Task Force: Australia;

Financing Task Force Activities(1) • Eight APEC economies have joined the Task Force: Australia; People’s Republic of China; Republic of Korea; Mexico; New Zealand; the Philippines; Chinese Taipei and the United States, as well as the Chairs of EGNRET and the EGEE&C. • Five APEC and self-funded projects are currently underway or have been recently completed. • A survey questionnaire was recently circulated to Task Force Members to identify lead APEC economies for each initiative. 5 Pioneering Science and Technology Office of Science U. S. Department of Energy

Financing Task Force Activities(2) • Mexico and China have agreed to be host economies

Financing Task Force Activities(2) • Mexico and China have agreed to be host economies for several Task Force projects. Outcomes from these projects will support the development of a framework for a technical assistance program (IFAT) to build local commercial capability for financing projects. • A case study of Thailand’s Energy Efficiency Revolving Fund has been recently completed (funded by Australia) • There are six current projects supporting the taskforce. Pioneering Science and Technology Office of Science U. S. Department of Energy 6

Financing Task Force Projects (1) • Development of Renewable and Energy Efficiency (Small Scale

Financing Task Force Projects (1) • Development of Renewable and Energy Efficiency (Small Scale Project) Financing Best Practices and Guidelines for APEC Region Capital Market Development (OA USA lead, $785, 600 total/$73, 500 APEC) - Project began in July 2005 - The project will develop an International Energy Efficiency Financing Protocol. - Economic Working Team meetings were held in Mexico (1/24/06, 3/30/06) and Thailand (3/1/06) - The Global Working Group will meet in Washington DC 10 -13 May 2006 7 Pioneering Science and Technology Office of Science U. S. Department of Energy

Financing Task Force Projects (2) • • • Developing Market Capacity to Commercialize Financing

Financing Task Force Projects (2) • • • Developing Market Capacity to Commercialize Financing of Clean and More Efficient Energy Projects (SF USA lead, $1, 300, 000 total) - Status: Approved, development in progress Sustainable Financing System for Energy-Efficiency - EWG 05/2003 T (USA lead, $143, 600 total/$143, 000 APEC) - Status: Completed July 2005 Financing High Performance Buildings and Communities - Tabled at EWG 30 and submitted as an announceable at EMM 7 8 Pioneering Science and Technology Office of Science U. S. Department of Energy

Financing Task Force Projects (2) • APEC 21 st Century Renewable Energy Development Initiative

Financing Task Force Projects (2) • APEC 21 st Century Renewable Energy Development Initiative (Collaborative V III) Local Banks Training Program for Financing Energy Efficiency and Renewable Energy Projects. (TILF Mexico lead, $100, 000 total/$50, 000 APEC) - Status: RFP preparation in progress • APEC 21 st Century Renewable Energy Development Initiative (Collaborative V III) Information Sharing on Financing Public Sector Energy Efficiency and Renewable Energy Projects. (OA USA lead, $75, 000 total/$50, 000 APEC) - Status: Two tenders have been received, consultant selection underway 9 Pioneering Science and Technology Office of Science U. S. Department of Energy