Experience and References

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Energy Policies and Strategies - Sustainable project development - International energy policy dialogue and know-how transfer - Expertise

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Energy Policies and Strategies

Support to the new Energy Conservation and Efficiency Programme in Argentina

In the framework of an agreement with the German Agency for Technical Cooperation (GTZ), AES has advised the National Energy Secretariat of Argentina in the definition of the criteria and main lines of the new Energy Conservation and Efficiency Programme: Programa de Ahorro y Eficiencia Energética - PAyEE. Specific activities developed with the assistance of AES include the improvement of the legal and regulatory framework for the promotion of energy efficiency; options to incorporate signals in favour of energy efficiency in the tariff system; the relaunch of the energy efficiency standards & labelling programme for household appliances, as well as specific energy efficiency programmes in the public, residential and industrial sectors, which would involve all stakeholders.

In-depth reviews of energy efficiency policies and programmes in Eastern European countries

Since 2000, AES has participated in "In-depth reviews of energy efficiency policies and programmes" of signatory states of the Energy-Charter Protocol on Energy Efficiency and Related Environmental Aspects. The role of the in-depth energy efficiency reviews undertaken on a peer basis is to enhance the level of co-operation amongst contracting parties, as well as to assess progress, promote continuous dialogue and transfer information. AES participated as advisor to the review teams and prepared the reports of the reviews in Poland, Hungary, Bulgaria, Romania and Croatia. The reports are published by the Energy Charter Secretariat.

Promotion of legal and institutional frameworks for energy efficiency in Latin America

On behalf of the UN Economic Commission for Latin America and the Caribbean (ECLAC) and the European Commission, DG Transport & Energy (SYNERGY Programme), AES has been involved in various activities related to the promotion of legal and institutional frameworks for energy efficiency in Latin America since 1998. Specific contributions included:

· A comprehensive analysis of the "Role of Legislation and Regulation in the Energy Efficiency Policies of the European Union and the Member States". This report serves as a reference for policy makers in Latin America.

· The participation in public hearings and advice to mixed public - private sector and parliamentarian committees in the framework of the preparation of energy efficiency bills in Colombia, Peru and Argentina.

From 2000-2001, AES was involved in the second phase of the project. Activities focused on:

· A comparative analysis of energy efficiency regulation and programmes in Europe and Latin America. The analysis concentrates on legal frameworks, voluntary agreements and financial instruments.

· Policies for the promotion of energy efficiency and renewable energy in the framework of energy sector reforms in Europe and Latin America.

· Advice to authorities in various Latin American countries with regard to the formulation, modification and implementation of legal and institutional frameworks for energy efficiency.

· More recently, AES has initiated a research project on barriers and perspectives for energy efficiency and sustainable energy in Latin America.

Energy Sector Reforms in Latin America and EU - Latin American Energy Cooperation

On behalf of the European Parliament, Directorate General for Research, Division of Environment and Energy Research, AES has prepared the paper "Energy Sector Reforms in Latin America and EU - Latin American Energy Cooperation" (September 1999). The paper calls for:

· A policy dialogue which complements the important European investments in the Latin American energy sector.

· Stable regulatory frameworks.

· Regulatory intervention in order to translate the economic benefits of European investments into sustainable social and environmental development in Latin America.

Integration of energy markets in the European Union and the MERCOSUR

During the period 1998 - 1999, AES participated in the SYNERGY project "Institutional Co-operation with MERCOSUR", which was carried out under a contract between the European Commission, DG Energy and NIFES Consulting Group, United Kingdom. AES was responsible for the preparation of the report "Integration of Energy Markets in the European Union - History, Politics and Economics of Forming the Internal Market for Energy" (December 1999). The report analyses the various stages of energy market integration in the EU, emphasising the role of public and private actors, including the European institutions. It presents European experiences, which may be of particular interest to the MERCOSUR. AES was also involved in the formulation of recommendations with regard to areas of common interest and co-operation mechanisms between Europe and the MERCOSUR. The proposals have been submitted to the Sub-working Group 9 (Energy) of the 'Grupo Mercado Común', the executive body of the MERCOSUR.

Future Strategy for Energy Conservation Programme in Peru

Between July and October 1998, AES was in charge of the elaboration of a proposal concerning a cooperation strategy between the Peruvian Ministry of Mines and Energy, represented by its energy conservation programme 'Proyecto para Ahorro de Energía - PAE', and European partners. For this purpose, an expert mission was financed by the SYNERGY Programme of the European Commission. Part of the assignment was to assist PAE in the formulation of its "Medium and Long-term Energy Efficiency Plan - PEEMLP". The main recommendations of AES were: (i) to diversify the existing promotional activities of PAE and (ii) to establish a structural cooperation with European programmes and actors in the energy efficiency field.

Strategies for Sustainable Energy Development in Chile

Since 1992, AES has proposed sustainable energy strategies to the Chilean energy and industrial sectors, mainly via policy and institutional advice provided to the 'Comisión Nacional de Energía - CNE', the Chilean government office for energy (since 2000: Subsecretary of Energy of the Ministry of Economy, Mining and Energy). Specific activities included, among others:

· Contributions to the First Working Cycle on Renewable Energies and Energy Efficiency in Chile (November 1993 - May 1994).

· Advice to CNE with regard to policy instruments for efficient use of energy in industry (1993-94).

· Training in energy management in small and medium scale industries, in particular the textile industry (1992-93).

· Tariff studies and a study on the technical and economic potentials of cogeneration in the industrial sector of the country, taking into consideration different scenarios with regard to electricity tariffs, fuel-base and institutional arrangements. The study was initiated by AES and carried out on behalf of CNE between September 1994 - May 1995. The study resulted in a more favourable consideration of cogeneration by CNE and - indirectly - in a number of actual cogeneration projects in Chilean industries, although the regulatory framework in Chile does not facilitate this. The study was part of a wider promotional campaign by AES for energy efficiency and cogeneration in Chile.

· AES also participated in a market study on natural gas technologies in Chile, which was co-financed by the THERMIE-Programme of the European Commission (1997).

Strategies for demonstration and dissemination of innovative energy technologies in Europe, Latin America and Asia

Since 1995, AES has been involved in various activities with regard to strategy development, evaluation and management of projects as part of the THERMIE Programme of the European Commission (since 1999: ENERGIE). Activities included:

· The elaboration of a strategy for priority actions in the field of rational use of energy in industry (1995-96).

· The evaluation and control of demonstration projects supported by THERMIE (1994-1998).

With regard to dissemination of modern energy technologies in non-EU countries, AES has participated in so-called 'THERMIE B Actions' in Chile (see above) and Thailand (please refer to "Expertise" for information on technology assessments, project and programme evaluations).

Development of Ministerial Orders and various sub-programmes under the National Energy Conservation Programme of Thailand (NEPO), Institution Building for Energy Conservation in Thailand (ADB/NEPO)

From 1992 - 1994, AES was involved in the development of Ministerial Orders and various sub-programmes of the National Energy Conservation Programme of Thailand. Specific inputs were the proposal of procedures for energy audits in 'designated facilities' (industrial enterprises and large buildings) and the design of various voluntary sub-programmes. The work was performed under a contract between the National Energy Policy Office of Thailand (NEPO) and Foundation EDP, the Netherlands.

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Sustainable project development

Energy efficiency standards and labelling in Algeria

In the framework of a co-operation programme with the European Union, APRUE - the Algerian National Agency for the Promotion and Rationalisation of Energy Use - has initiated the development and implementation of energy efficiency standards & labelling for household appliances. AES assists APRUE in this important activity, which is focusing in the first place on refrigerators and freezers. The project is carried out in cooperation with Explicit from France and PW Consulting, UK.

The project, which has started end of 2001 comprises the following tasks: (i) a statistical analysis of the market of refrigerators and freezers, in order to establish proper efficiency categories, and to evaluate economic, social and environmental impacts of alternative policies of standards & labelling; (ii) to establish - in coordination between APRUE and IANOR, the Algerian Standardisation Institute - test procedures in accordance with international standards and the specific characteristics of the Algerian appliance market; (iii) to propose the necessary test installations and procedures; (iv) to establish administrative rules of conformity evaluation; (v) to propose a market transformation strategy, taking into consideration various options of labelling, minimum efficiency standards and a legal framework based on the Algerian Energy Efficiency Law and relevant secondary legislation; (vi) label design and development of a national energy efficiency labelling plan.

The S&L project of Algeria is an ambitious project carried out within a very tight time schedule and budget. The approach applied to this project therefore concentrates on active coaching of APRUE staff by the AES experts, focussing on key issues and trying to stimulate exchange of experience with European institutions and to create synergies with similar initiatives in the region.

Bio-energy from horse dung in the Netherlands

Bio-energy has been identified by the European Commission as one of the most realistic options to achieve a doubling of the contribution of renewable energy to the Community's energy consumption from 6% at present to 12% in 2010. Small and medium scale production of biogas from horse dung seems to be an interesting option, taking into consideration the exceptional growth of the equestrian sport in Europe. In cooperation with "De Kastanjehoeve", a horse stable in South Holland, AES promotes a small-scale pilot project that involves the local production of biogas from horse dung. Issues under study include the technical feasibility of anaerobic digestion of the horse dung, the conceptual design of the installation and the establishment of sales channels for the residual dry fertilizer.

Energy efficiency standards in the Andean Community

From 1995 - 1996, AES was involved in the development of a strategy for the elaboration, harmonisation and implementation of energy efficiency standards in the Andean Pact region. Based on an analysis of technological, market-related and institutional aspects, a strategy was proposed, which would allow a step-by-step harmonisation of energy efficiency standards already implemented respectively under preparation or consideration in the region. The programme would include technical standards and related policy instruments like labelling, mandatory standards or voluntary agreements on energy efficiency objectives with manufacturers. The proposals were discussed and endorsed by inter-ministerial working groups and standardisation committees on Andean Pact level. The project was part of the 'Programa Andino de Integración Energética (PAIE)', a joint programme of the Junta del Acuerdo de Cartagena (at present: Comisión de la Comunidad Andina) and the European Commission. Due to the termination of PAIE at the end of 1996, the process towards harmonised standards lost momentum. The project has produced indirect results nevertheless, like the elaboration of energy efficiency standards for domestic refrigerators and freezers in Peru and a move towards international ISO standards in Colombia. AES is further promoting regional initiatives for energy efficiency standards and labelling in the Andean Community and in the MERCOSUR.

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International energy policy dialogue and know-how transfer

Associated OPET Mercosur

AES was assigned as advisor to the Associated OPET Mercosur, which has been established in April 2001 by UN-ECLAC in the framework of the OPET Network of the European Commission. In its first year of operation, the OPET Mercosur was supposed to focus on the identification of barriers, perspectives, mechanisms and promising product-market combinations for specific sectoral and regional market segments in Argentina, Brazil and Chile, in close co-ordination with stakeholders from the region. Networking with OPETs from the EU and facilitating business-to-business contacts were further activities.

Policy Dialogue Europe - Latin America on the Promotion of Energy Efficiency and Sustainable Development

From 1998-2001, AES was involved in the organisation and the preparation of the EU - Latin American Parliamentarian Dialogue on the Promotion of Energy Efficiency and Sustainable Development, which was part of the project "Promotion of Energy Efficiency in Latin America" jointly organised by the UN Economic Commission for Latin America and the Caribbean (ECLAC) and the European Commission, DG Energy (SYNERGY Programme). This dialogue, which was first organised in October 1998 in Brussels, followed by a second event in Buenos Aires in June 1999, brought together interested Members of the European Parliament with their colleagues from various national parliaments in Latin America. The objectives of this dialogue were to:

· Foster the understanding of the specific energy-related problems in both regions.

· Support Latin American parliamentarians in their initiatives to place energy and sustainable development on the political agenda in their countries.

· Develop a new awareness of the political implications of economic cooperation between both regions.

The Third Parliamentarian Dialogue, which took place in September 2000, focussed on "Energy Sector Reforms, Regulatory Challenges and Sustainable Development in Europe and Latin America", involving energy regulators from Europe and Latin America. A fourth dialogue was held in Santiago de Chile in July 2001.

Study tour on electricity sector regulation in Europe for a delegation of the Vice-Minister of Mines and Energy of Paraguay

In 1999 AES organised a study tour on electricity sector regulation in Europe for a team of consultants on request of the Vice-Minister of Mines and Energy of the Republic of Paraguay. The purpose of the tour was to obtain first-hand information on electricity sector liberalisation in Europe, which would serve the consultants as a reference for a revised proposal of a new electricity law in Paraguay. Accordingly, a comprehensive programme was prepared, which included visits to eight European countries. The programme included meetings with ministries, regulatory agencies, the European Commission, energy industries, independent experts, NGOs and trade unions. The possibility to become acquainted with the pluralistic views of different actors in different countries was highly appreciated and considered essential for the preparation of the new electricity law.

Training and training needs assessments

AES has realised various training activities and training needs assessments in the field of energy conservation and management, focussing on the industrial sector in developing countries:

· Training of energy consultants in Thailand in advanced energy conservation technologies (THERMIE Programme of the European Commission, in cooperation with DECON, Germany, 1996).

· Training needs assessments in the field of energy conservation in Thailand (National Energy Policy Office - NEPO, in cooperation with Foundation EDP, the Netherlands, 1994).

· Contribution to the annual Training Course on Energy Management in Small Scale Industries in Developing Countries (University of Twente, the Netherlands, 1991-94).

· Training needs assessment in the field of energy efficiency in small & medium scale industries in Chile (National Energy Commission Chile, German Agency for Technical Cooperation - GTZ, 1993).

· Seminars on energy management in industry in Argentina and Chile, focussing on the textile and pulp & paper industries (German Agency for Technical Cooperation - GTZ, 1991-93).

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Expertise

Country analyses of energy efficiency and renewable energy policies and programmes in Latin America

Despite of a few well-known “success stories”, energy efficiency and renewable energy are unfortunately still marginalized in the energy policies of most Latin American countries. There is also an apparent gap in easy accessible up-to-date information on energy efficiency and renewable energy policies and programmes in the countries of the region, including their connection to a wider context of sector policies. Energy-Strategies’ country analysis reports on “Energy Efficiency and Renewable Energy Policies and Programmes” endeavour to fill this gap by providing precise information and assessments, with the objective to foster easy access to and exchange of relevant information among policy makers and actors throughout Latin America. So far, reports on Argentina, Brazil and Chile are available on a pilot basis. Each report comprises 5-7 pages of essential information on: (i) energy policy and market, (ii) energy efficiency and renewable energy policies and programmes, (iii) legal and institutional frameworks, (iv) references and (v) links. Reports on Colombia and Venezuela are under preparation, with more reports to follow.

Energy policy and programme evaluations and inceptions

In 1996 and 1999, AES was involved in the evaluation of proposals for the OPET Network (Organisations for the Promotion of Energy Technologies) in the framework of the Programmes INNOVATION and ENERGIE of the European Commission. The OPET Network includes approximately 40 public and private institutions in both Europe and - recently - in associated and non-European countries. These institutions contribute to the dissemination and market uptake of energy efficient and renewable energy technologies.

In 1996-97, AES participated in the Mid-term evaluation of the EC - ASEAN COGEN Programme of the European Commission. The EC - ASEAN COGEN Programme has fostered the implementation of European cogeneration technologies based on agricultural and forestry biomass residues in the ASEAN countries (mainly in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam).

Also in 1997, AES was in charge of drafting the Terms of Reference for an "Energy Policy Information Unit" at the Ministry of Energy in Bulgaria (PHARE Programme, in cooperation with Societät für Entwicklungsplannung - SfE, Germany).

Evaluation of proposals for European technology demonstration and dissemination projects in the framework of the THERMIE Programme of the European Commission

Since 1994, AES has been involved regularly in the evaluation of proposals for demonstration and dissemination projects for innovative energy technologies in the framework of the THERMIE Programme of the European Commission, mainly in the areas of energy efficient technologies in industry and energy industries, and - to a lesser extent - in the fields of energy efficiency in buildings and transport, covering a wide range of energy efficient technologies and processes. Part of the activities has been the evaluation of demonstration projects during their implementation (THERMIE Technical Management - TTM).

Technology assessments and expertise on energy technologies

As part of the "Sectoral Assistance" scheme for the European Commission's OPET Network (since 1997), AES has provided assessments of the state-of-the-art of (i) sustainable pulp & paper technologies and (ii) innovative applications of cogeneration in industry.

Industrial energy audits and studies

AES has been engaged in industrial energy audits (Stone and Chalk Quarry "Steengroeve Winterswijk" in the Netherlands, 1993; VOSSLOH Metal Works in Germany, 1994), preliminary audits and selection of industrial sites for energy efficiency programmes (Poland, 1992; Romania, 1996), a tariff study regarding cogeneration at the Arauco pulp&paper plant in Chile, 1994; as well as sectoral energy studies:

· In 1995, AES contributed to a study on energy conservation and fuel substitution in the Romanian cement industry (in cooperation with NIFES Consulting Group, on behalf of the Romanian Ministry of Industry and the PHARE Programme of the European Commission).

· In 1994 AES took the initiative for a study on the technical and economic potentials of cogeneration in Chile (please refer to "Strategies for Sustainable Energy Development in Chile"). This study was carried out by AES in 1994-1995, in cooperation with Chilean consultants.

Participation in experts meetings and conferences of international organisations and programmes

AES has been present at experts meetings and conferences of international organisations and programmes. That way AES contributed to the development and implementation of new instruments in favour of sustainable energy development in Latin America and Eastern European and CIS States. Examples include:

· The International Seminar on Energy Efficiency in Development Cooperation Projects, organised by Ingeniería sin Fronteras and the University of Zaragoza, Spain from 20-22 April 2004.

· The International Seminar on Energy Efficiency, held in Montevideo, Uruguay from 13 - 15 August 2003. The objective of the seminar, which was hosted by the World Bank and the Uruguayan energy sector authorities, was the presentation and discussion of the Uruguay Energy Efficiency Project, which aims at fostering the transformation of the energy market by creating an enabling environment for energy efficiency activities and the establishment of energy service companies, both private and utility-based. The contribution of AES to the seminar focused on energy efficiency policies, programmes and legislation in Europe and Latin America.

· The First National Encounter on Rational and Efficient Use of Energy, realised on 17 and 18 July 2003 in Bogotá, Colombia. The Encounter was organised by the Chamber of Large Energy Consumers of the National Association of Industry (ANDI) and the Planning Unit of Mining and Energy (UPME) of the Ministry of Mines and Energy of Colombia and was attended by more than 200 representatives of industry, universities, research centres and government entities. The director of AES, Wolfgang Lutz, participated in the Encounter as keynote speaker.

· The National Forum for the Promotion of Energy Efficiency, held in Caracas, Venezuela on 4 October 2002, which was organised by the Venezuelan Committee of the World Energy Council, in cooperation with the Ministry of Energy and Mines of Venezuela. The objective of this forum was to present the Draft Bill for an Energy Efficiency Law in Venezuela, which would be the centerpiece of the energy efficiency policy of the country. The Forum was attended by about 100 participants from Venezuela's energy sector, industry and public administration. According to a poll realised during the event, more than 75% of the participants agreed with the convenience of an energy efficiency law in the country. The director of AES, Wolfgang Lutz, participated in the Forum as keynote speaker.

· The Latin American Regional Workshops on Energy Efficiency Standards and Labelling, held from 10 - 11 August 2000 in Mexico City, and from 22 - 23 March 2001 in Buenos Aires, Argentina, which were jointly organised by the Climate Technology Initiative (CTI) of the International Energy Agency (IEA) and the Collaborative Labeling and Appliance Standards Program (CLASP), in co-operation with the Mexican National Commission for Energy Conservation (CONAE) and the Argentinian Standardisation Institute (IRAM), respectively. The workshops brought together representatives of governments, standardisation institutes and industry from all over Latin America, resulting in a major sensibilisation and renewed interest in S&L in various countries. The contribution of AES to both workshops focused on the barriers and opportunities to implement energy efficiency standards and labelling in Latin America, advocating harmonised sub-regional standards, in particular in the Mercosur.

· The Rio Energy Forum "Strengthening the European-Latin American Partnership", a significant event which brought together representatives of the energy industry, governments, regional organisations and financial institutions from Europe and Latin America. The Forum, which was held immediately before the EU - Latin American Summit of Heads of States in June 1999 in Rio de Janeiro, Brazil, concluded with a declaration, which emphasized the need of a multiple focus of European - Latin American energy cooperation, based on three areas of equal importance: (i) sustainable economic development, investment challenges and business opportunities in the energy sector; (ii) sustainable environmental protection through effective resource management and (iii) sustainable social development through provision of affordable energy services and sharing the benefits associated with energy investments.

· An experts meeting on procedures for implementation of the "Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects", convoked by the Energy Charter Secretariat in March 1998. The meeting proposed to implement a process of periodic reviews of the energy efficiency policies of the signatories of the Protocol, in order to assist the participating countries in complying with the obligations from the Protocol. This proposal was later adopted by the Charter Conference. AES was also invited by the Secretariat to participate in the Meeting of the Working Group on Energy Efficiency and Related Environmental Aspects of the Charter in June 1999.

· A meeting of independent energy experts in preparation of the ALURE Programme of the European Commission (1995). ALURE has evolved as an important instrument to foster economic cooperation between Europe and Latin America in the energy sector. The director of AES, Wolfgang Lutz, was member of the Advisory Committee of the ALURE Programme from 1996-2001.

· Since 2000, the director of AES, Wolfgang Lutz, is member of the Technical Advisory Committee of the Collaborative Labeling and Appliance Standards Program (CLASP).

· Wolfgang Lutz is co-author of the chapter: "Potential for Energy Efficiency: Developing Nations" of the Encyclopedia of Energy, Volume 5, ©2004 Elsevier Inc.

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