Your SlideShare is downloading. ×
0
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Apec bali 2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Apec bali 2013

119

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
119
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. IPEEC is an Autonomous Entity 1 Established in 2009 at the G8 summit in Italy; Reports to G20, Clean Energy Ministerial & others Facilitates Rapid Deployment of Clean Technologies Worldwide The IPEEC Secretariat is located in Paris, France Members account for over 80% of world GDP and energy use. Italy Russia Japan Republic of Korea China India Australia Germany United Kingdom France Canada USA Mexico Brazil EU South Africa
  • 2. Global  addi)onal  investment   by  end-­‐use  sector    Transport    0    200    400    600    800   1  000   1  200   2015   2020   2025   2030   2035    Services   Residen)al    Industry   Billion  dollars  (2011)   Addi$onal  investments  required  in  end-­‐use  efficiency  are  $11.8  trillion  over   2012-­‐2035;  saving  consumers  $17.5  trillion  in  energy  expenditures  in  this  period     (Source:  IEA)   The  Efficient  World  Scenario  rela2ve  to  the  New  Policies  Scenario  
  • 3. Global  primary  energy  demand  by   scenario   12  000   13  000   14  000   15  000   16  000   17  000   18  000   2010   2015   2020   2025   2030   2035   Mtoe   New  Policies   Scenario   Efficient   World  Scenario   EWS  total  primary     energy  demand     Mtoe   2010   2035   Other  renewables    112    650   Bioenergy   1  277   1  749   Hydro    295    476   Nuclear    719   1  094   Gas   2  740   3  541   Oil   4  113   4  061   Coal   3  474   3  274   Primary  energy  savings  achieved  in  the  Efficient  World  Scenario  in  2035   are  equivalent  to  18%  of  global  energy  demand  in  2010  
  • 4. Oil  import  bills  in  selected  countries     by  scenario   0   150   300   450   600   Billion  dollars  (2011)   2011   New  Policies   Scenario,  2035   Efficient  World   Scenario,  2035   Japan   China  United   States   European   Union   India   Energy  efficiency  cuts  fossil  fuel  import  bills  by  $570  billion  in  the  Efficient  World   Scenario.  Almost  70%  of  these  savings  accrue  from  lower  oil  import  bills.  
  • 5. Barriers to Energy Efficiency Barrier   Examples   Market     •  Market  organisa)on  and  price  distor)ons  prevent  customers  from  appraising   the  true  value  of  energy  efficiency.   •  The  principal  agent  problem,  in  which  the  investor  does  not  reap  the  rewards   of  improved  efficiency  (the  classic  case  being  the  landlord-­‐tenant  situa)on).   •  Transac)on  costs  (project  costs  are  high  rela)ve  to  energy  savings).   Financial     •  Up-­‐front  costs  and  dispersed  benefits  discourage  investors.   •  Percep)on  of  EE  investments  as  complicated  &  risky  -­‐  high  transac)on  costs.   •  Lack  of  awareness  of  financial  benefits    on  the  part  of  financial  ins)tu)ons.   Informa2on  and   awareness     •  Lack  of  sufficient  informa)on  and  understanding,  on  the  part  of  consumers,   to  make  ra)onal  consump)on  and  investment  decisions.   Regulatory  and   ins2tu2onal     •  Energy  tariffs  that  discourage  EE  investment  (such  as  declining  block  prices   and  fuel  subsidies).   •  Incen)ve  structures  encourage  energy  providers  to  sell  energy  rather  than   invest  in  cost-­‐effec)ve  energy  efficiency.   •  Ins)tu)onal  bias  towards  supply-­‐side  investments.   Technical     •  Lack  of  affordable  energy  efficiency  technologies  suitable  to  local  condi)ons.   •  Insufficient  local  capaci)es  to  iden)fy,  develop,  implement  and  maintain   energy  efficiency  investments.  
  • 6. Methodological challenges 7 Challenge   Proposed  Approach   Multi-­‐dimensionality   Track  global  performance  on  energy  intensity  complemented  by   energy  intensity  of  major  economic  sectors  and  efficiency  of   energy  industry     Move  towards  better  tracking  of  targets,  policies,  institutions,   investments   Intensity  vs.  Efficiency   Track  energy  intensity  for  countries  and  major  regions/blocks,   where  feasible  complement  with  efficiency  decomposition  to   strip  out  structural  effects     Market  Exchange  Rate   vs.  Purchasing  Power   Parity   Track  purchasing  power  parity   Primary  vs.  final  energy   Track  global  energy  intensity  in  terms  of  primary  energy  demand   Track  sectoral  energy  intensity  in  terms  of  final  energy   consumption   Volatility     Track  a  five  year  moving  average  trend  
  • 7. Last decade shows slowing rates of improvement in energy intensity (higher when adjusted) 8 -­‐1.61%   -­‐0.99%   -­‐1.30%   1990-­‐2000   2000-­‐2010   1990-­‐2010   -­‐1.77%   -­‐1.21%   -­‐1.49%   1990-­‐2000   2000-­‐2010   1990-­‐2010   CAGR Energy Intensity (PPP) Adjusted CAGR Energy Intensity Source: IEA, WDI
  • 8. East Asia accounted for the lion’s share of energy saved, even as Middle Eastern energy intensity deteriorated 9 Energy Intensity Trends by Region Share of Cumulative Savings by Region, 1990-2010 Source: IEA, WDI -­‐1.7%   -­‐1.3%   -­‐2.3%   -­‐3.2%   0.8%   -­‐1.1%   -­‐0.5%   -­‐1.5%   -­‐1.3%   -­‐0.5%   -­‐0.1%   -­‐1.1%   0   10   20   30   40   -­‐4%   -­‐2%   0%   2%   NAm   EU   EE   CCA   WA   EA   SEA   SA   Oceania   LAC   NAf   SSA   CAGR  1990-­‐2010  (left)   EI  in  1990  (right)   EI  in  2010  (right)   MJ/$2005  PPP   EA  (58%)   NAm  (17%)   EU  (10%)   EE  (6%)   SA  (4%)   CCA  (2%)   LAC  (1%)   SSA  (1%)   Oceania  (  <1%)   SEA  (<1%)  
  • 9. Service sector contributed the most to energy savings during last 20 years 10 Energy Intensity Trends by Sector Share of Cumulative Savings by Sector Source: IEA, WDI -­‐1.4%   -­‐2.2%   -­‐1.4%   0   5   10   -­‐3%   0%   Industry   Agriculture   Services   CAGR  1990-­‐2010  (left)   EI  in  1990  (right)   EI  in  2010  (right)   MJ/$2005  PPP   Industr y   40%   Service   56%   Agricultur e   4%   Note: Services include services, transport, and residential
  • 10. Areas where International Expertise can Help   Financial mechanisms to promote EE;   Enhanced EE in industry and buildings;   Improved energy management;   Data collection and indicators;   Development of policies and action plans; and   Enhanced coordination of regional actions. 11
  • 11. Energy Efficiency Market Penetration   Energy efficiency firms attracted nearly $1.1 billion in venture capital in 2010, almost double that of 2007.   LIGHTING: LED is the fastest growing market at a CAGR of 14.9% from 2011 to 2016:   Asia will witness the highest growth (CAGR of 16.6%).   BUILDINGS: EE market $87.0bn in 2012.   GREEN IT: Cloud computing revenue to continue worldwide growth at a compound annual growth rate (CAGR) of 28.8%:   Market increase: US$46 billion (2009) to US$210.3 billion (2015).   EE measures could drive total data center energy expenditures down from $23.3 billion in 2010 to $16.0 billion in 2020 (28% reduction in GHG emissions from 2010 levels). 12
  • 12. Energy Efficiency Financing Trends Asia Pacific deals by sector 13 Source: Final Renewables Deals 2012 Outlook 2011 Review, PwC.
  • 13. Energy Service Companies (ESCOs)   The ESCO industry in Asia Pacific is poised to grow:  From $3.0 billion in annual revenue in 2009 to $18.5 billion by 2016.  421% increase from 2010 levels. Example: Despite not even being operational until 1998, annual revenues for China’s ESCO industry to reach $17 billion by 2015, increasing its share of the APAC regional market to over 90% (Source: Pike Research). 
  • 14. Roadblocks to successful EE financing?   An economic actor perspective – financial actors and market actors:   Fixed cost of lending incentivizes banks to focus on large corporate loans.   Information asymmetry between banks and borrowers:   Adverse selection: Average pricing will attract risky borrowers and turn away attractive borrowers;   Moral Hazard: Risky behavior as borrower knows that bank has imperfect oversight.   Lack  of  credit  bureaus  &  clear  credit  history  increases  risk-­‐assessment  costs.     Inadequate  knowledge  and  experience  with  the  product  .     Inefficient  price  signals  –  consump)on  disconnected  from  cost.     Network  of  contractors  &  suppliers  unavailable  or  inexperienced.  
  • 15. IDENTIFIED GAPS FOR ENABLING ESCO PROJECTS (EBRD - 2012) Technical gaps: •  Lack of awareness and information •  Clients lack of expertise and resources for preparing ESCO projects/tenders Regulatory gaps: •  No clarity of legal procedures regarding ESCO projects: •  procurement •  budgetary treatment •  Lack of administrative instructions/guidance •  Lack of contract and tender templates •  Lack of M&V protocols and unstable customers Financing gaps: •  Internal funding by public building: •  lack funding •  debt ceilings reached •  External funding: •  ESCOs do not finance long-term on balance sheet •  banks lack experience in ESCO projects and don’t offer forfeiting (buying accounts receivables) + require high level of collateral for loans
  • 16. What is Needed for ESCOs to be Successful? 17 1.  Strong legal framework a)  Contract enforcement, b)  Market transparency, 2.  Monitoring & Verification procedures (M&V), 3.  Possibly, fiscal incentives or other policies supporting ESCOs, 4.  Rational energy prices . Without these conditions, ESCOs have to focus on basic services: •  Purchasing,  installa)on  &  maintenance,   •  Management  &  upgrade  of  equipment.   The complexity of the EPC depends on the type of market 1.  Technical & practical experience. 2.  Capacity to arrange & manage financing, and to mitigate financial risks. 3.  Business entrepreneurship & project/client management skills. Source: Sun, Zhu, Taylor (2011) ESCOs need Specific Skills
  • 17. Some Innovative Financing Instruments •  Innovative EE financing instruments in key areas: •  Innovative funds for securing private financing include : • Interest rate buy down fund; • Partial risk guarantee/loan loss recovery fund; • Venture capital fund, etc. 18 Area of Innovation Innovative Instrument Lending Revolving Loan Fund Repayment On Bill Financing Source of capital Revenue Decoupling, Energy Conservation Bonds
  • 18. 19 Thank you! Any questions? Please contact: Amit.Bando@ipeec.org contact@ipeec.org 9 rue de la Fédération 75739 Paris France

×