Public Private Partnerships for Energy

Efficiency Parallel Session

Barriers for Realizing EEand

Counter Policy and Measures for Activating PPP

Kazuhiko HOMBUTAISEI Co. Ltd.

Barriers1. Misunderstanding of the opportunity cost

2

2. Difference in country and sector

The Stern Report & the McKinsey’s MAC curve• Investment for EE is profitable under low

discount rate

Reality in developing countryOpportunity Cost of EE

>Opportunity Cost of production

WEO 2014• Energy demand grows

Power >> Industry > Transport > Building

• New Fossil Power plants in developing countries

• Need BATs for EE

Change in Energy Demand:2012-2040, New Policy Scenario

Industry

Transport

Building

Other

Power

Other Energy

Fin

al D

em

an

d

Policies & Measures for Activating PPP

3

2. Adequate regulation for introducing BATs>> Clear criteria to the engineers for choosing technology

3. Financial support to the incremental increase of investment for the use of BATs>> Cooperative finance by government and international organization>> Risk reduction of private-sector’s investment

1. Strong Political Commitment on EE improvement>> Clear message to the top management of both power companies and financers

Public Private Partnerships for Energy

Efficiency Parallel Session

Climate Financed Public Private Partnership for Energy Efficiency

Andy Wehkamp

Biomass Energy NAMA Burkina FasoGovernment, GIZ, UNIDO, Perpectives, SNV, SME’s , financial institutions;

NAMA facility.

Beer brewers until 2015:• 4350 efficient appliances, • 67,000 T fuel wood saved .• 78,000 T GHG reduced

NAMA expected 2020:• 12,150 efficient appliances• 460,000 T fuel wood saved• 710,000 T GHG reduced

3,600,000 T GHG reduced 5 years

Find out more on www.snvworld.org/re

Twitter@SNV_RE

LinkedInlinkedin.com/company/13445

YouTubeyoutube.com/user/SNVWorld

Flickrflickr.com/photos/56973557@N05

Public Private Partnerships for Energy

Efficiency Parallel Session

United For Efficiency:SE4ALL Appliances Accelerator

Steve KukodaInternational Copper Association

New Brand Launched May 2015

Goals achieved through market transformations based on mandatory Minimum Energy Performance Standards (MEPS) in:

• Motors

• Distribution transformers

• Air conditioners

• Refrigerators

• Lighting

• Information technology

Program Goals

MEPS in 2013: mostly in OECD Countries

Our goal: MEPS in all countries by 2030

Program Goals

• The global growth in energy demand will happen in developing countries and emerging markets

• Overall energy consumption in developing world will more than double (1)

• Global middle class grows from 2 billion to 5 billion people by 2030 (2)

Stock of Cooling Appliances (AC & Fridges)

[in million units]

Energy Consumption (AC & Fridges)

[in TWh]

107% Increase

(1) International Energy Agency; (2) Brookings Institute

Action is Critical

Regional Focus

• $1.5M start-up funding from Global Environment Facility (GEF)• $3M additional GEF funding pending

• $8M in additional commitments• Manufacturing partners are joining• Discussions with World Bank and all regional development banks• Working on country-level commitments (6 joined, 26 pending)

• Latin America/Caribbean

• Developing Asia

• Africa

• Island States

Building the Partnership and Funding It

Public Private Partnerships for Energy

Efficiency Parallel Session

Public, Private Partnerships to Accelerate Efficiency

Jennifer LaykeWorld Resources Institute

SUPPORTING EFFICIENCY MARKETS: WHAT DRIVES DECISION-MAKING?

Johnson Controls Institute for Building Efficiencyhttp://www.institutebe.com/Energy-Efficiency-Indicator

Copyright 2012 – Johnson Controls Institute for Building EfficiencyPage 16

Johnson Controls Institute for Building Efficiency Global Energy Efficiency Indicator.http://www.institutebe.com/Energy-Efficiency-Indicator

TOP BARRIERS TO ENERGY EFFICIENCY

ACTION FOR BETTER BUILDINGSNew partnerships to enable implementation of ambitious policy and market development strategies are required to address barriers, bridge the efficiency gap, and avoid lock-in of inefficient and unhealthy building stock.

Source: Institute for Building Efficiency, Johnson Controls Inc.(2011)

BUILDING EFFICIENCY ACCELERATOR:MEXICO CITY PARTNERSHIP ACTIVITIES TO DATE

• City Commitment – SE4All• Implement local energy code• Retrofit city buildings

• Engage leaders in local market around key goals identified by city

• National and City departments/agencies• Businesses• Financial institutions• Technical experts

• Multi-stakeholder working groups chaired by city and a co-chair: common process, shared learning

• Barriers: finance, administrative protocols, ESCO market/funding options, local process for building energy code adaptation, adoption, implementation

Public Private Partnerships for Energy

Efficiency Parallel Session

Public, Private Partnerships for

Energy Efficiency

Wim Jonker Klunne Energy and Environment Partnership (EEP)

PPPs for Energy Efficiency

► Substantial opportunities for energy efficiency and renewable energy exist within operations & infrastructure of government agencies

► Often perceived as outside their core activities / responsibilities

PPPs could be used to exploit these opportunities

► Financial viability alone not enough► Need to educate government► Need to create awareness at high level

well chosen pilot & demonstration projects needed, including dissemination component and grant / concessional funding

PPPs for Energy Efficiency

PPPs for Energy Efficiency

Public Private Partnerships for Energy

Efficiency Parallel Session

Thank You….