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UNIDO’s approach on Small Hydro Power Renewable Energy Unit

Dr Diego Masera

Chief Renewable Energy

October 2013

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION specialized agency of the UN

Promoting industrial development and international industrial cooperation

Poverty Reduction through Productive Activities

Trade Capacity-building

Energy and Environment

171 Member states

Director General Li Yong

Based in Vienna, Austria with operational offices worldwide (>70 countries) e.g.

34 National Cleaner Production Centres

19 Investment and Technology Promotion Offices

9 Technology Centres

3 core areas

UNIDO’s Energy Programme:

Providing Integrated Energy Solutions and Services for An Inclusive Sustainable Industry

Thematic Focus

-Renewable Energy for Productive Uses

-Industrial Energy Efficiency

-Low Carbon, Low Emission Technologies

Strategic Outcomes 1.Create business development

opportunities through increasing access to energy through mini-grids

2. Mainstream the use of

renewable energy in industry (SMEs)

3. Support innovative business

models to promote renewable energy in the business sector

New business paradigm – Distributed

energy

Business Models

Industrial Applications

Mini-grids

Productive uses

Green industry (local manufacturing)

Renewable energy

enterprises

South -South cooperation

De-risking investments

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Adapted from AGECC 2010 Report

Incremental Levels of Access to Energy

Renewable Energy Unit Targets by 2018

# people gaining access: >135,000 [1]

RE capacity installed: ~25 MW

RE generated/year: >125 GWh/year

# people trained: >1,000 (

Tons of CO2 avoided: > 3 million tons direct [2]

# policy interventions: > 20

# SMEs benefitting: > 600

Co-financing (other sources): > $150 million

[1] Calculated on the basis of MWh/year generated as a result of projects divided by average electricity consumption per capita in a given country (based on 13 projects), using World Bank Statistics 2010 – the number of people gaining access is not directly linked to total GWh/year generated, as electricity also supplies businesses. [2] Based on emissions over the lifetime of projects (typically between 10-20 years, depending on technology and size of project)

Zambia

Ukraine

Chad

Thailand Sierra Leone

Pakistan

Nigeria

Liberia

Cambodia

India

Guinea

Egypt Cuba

Cote d‘Ivoire

Sri Lanka

Albania

GEF 3 GEF 4 GEF 5 Other TOTAL

No. of Project

2 15 23 23 63

Legend

Wind

Solar

Hydro

Biomass

Cape Verde

Gambia

Cameroon

Comoros

Kenya

Lesotho

Madagascar

Mozambique

South Africa

Sudan

Laos

Colombia

Chile

Dominican Republic

Uruguay

Tanzania

Uganda

Rwanda

Armenia

Bangladesh

UNIDO Renewable Energy Portfolio Map

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2009 US$ 24 Million

2012 US$ 118 Million

2015 US$ 250 Million

Increasing UNIDO Renewable Energy Portfolio (Total Project Value)

“Energy production consumes significant amounts of water; providing water, in turn, consumes energy. In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on

water availability – and meeting water needs depends on wise energy policy

decisions.” (World Policy Institute and EBG Capital, March 2011)

The Nexus between Water and Energy

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Water needs Energy Energy is vital to providing freshwater

needed to power systems that collect, transport, distribute & treat water

(US Department of Energy, 2006)

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Energy needs Water Energy production depends on water

some 580 billion cubic meters of freshwater are withdrawn for energy production every year (IEA, 2012)

Water is used for primary energy production as well as power generation esp. for cooling at thermal power plants

Extraction, transport and processing of fuels and irrigation to grow biomass feed-stock are also water-

intensive

Key uses of water for primary production (IEA, 2012)

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Energy Water Nexus in Number – Water Requirements for Different Energy Sources

(IEA, World Energy Outlook, 2012)

Primary production Power generation

UNIDO-IIASA Study on Water-Energy Nexus

• Defining critical linkages between water and energy

• Exploring opportunities for informed policy and governance

• Examining the potential to pursue the Nexus in the SE4ALL Agenda

• Exploring options for capacity development and knowledge-sharing

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Future outlook & policy implications

Water withdrawal by the energy sector is expected to rise by one-fifth through 2035, while the amount consumed (not returned directly to the environment) by a more dramatic 85%

(IEA, 2012)

While nations evaluate their energy options and develop their policies, appropriate incentives will need to be employed to encourage technologies that promote sustainable energy production – from a cost, carbon, security and water perspective

Given the location-specific nature of water resources, the nexus must be considered at the water basin level, or even at particular sites. Stakeholders will need to know how to manage the trade-offs between water and energy at local, national, and cross-border levels.

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UNIDO’s SHP Development Programme

• Focus on SHP mini-grids for productive uses (local industries) and energy access.

• Promote market based dissemination of SHP by overcoming the following: • Lack of appreciation of technical feasibility and commercial viability of SHP • Weak to non-existent policy, legal and regulatory framework for the SHP sector • Lack of capacities by key market players (developers, investors, etc) and enablers (policy makers, regulators, etc) • Weak institutional framework to support SHP investments • Lack of SHP data

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UNIDO’s assets and comparative advantages in SHP

• Solid and hands-on experience with SHP technology with concrete and functional projects in different countries.

• SHP mini-grids projects linked to productive activities for sustainability.

• SHP strategy to guide our work.

• Bottom-up approach – from pilots to policy development.

• Centers of expertise i.e. IC-SHP Center in China, RCSHP in Nigeria with in-house expertise.

• Holistic and integrated approach to technology transfer – full suite of assistance.

• Make use of convening power to mobilize different partners, CSO, banks, etc. to benefit from synergies, various financing options, etc.

• Focus on scaling up and replication for impact.

Zambia

Ukraine

Chad

Thailand Sierra Leone

Pakistan

Nigeria

Liberia

Cambodia

India

Guinea

Egypt Cuba

Cote d‘Ivoire

Sri Lanka

Albania

Legend

Wind

Solar

Hydro

Biomass

Cape Verde

Gambia

Cameroon

Comoros

Kenya

Lesotho

Madagascar

Mozambique

South Africa

Sudan

Laos

Colombia

Chile

Dominican Republic

Uruguay

Tanzania

Uganda

Rwanda

Armenia

Bangladesh

SHP: -S/Leone - Liberia - Rwanda - Burundi - Zambia - Nigeria - Sri-Lanka - Indonesia - Guinea

UNIDO Renewable Energy Portfolio - SHP

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NIGERIA: Waya Dam Hydro & local manufacture

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Site Capacity (kW)

Connection

Mutobo 200 Off grid

Agatobwe 210 Off grid

Nyamyotsi I 100 Off grid

Nyamyotsi II 100 Off grid

Total 610

Rwanda SHP •UNIDO installed 4 pilot projects. •UNIDO provided technical knowhow, build capacity from project conception to operation and maintenance, developed a SHP scale-up strategy, and management structures.

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Rwanda SHP

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ZAMBIA: Renewable Energy Based Electricity Generation in Isolated Mini-Grids Rwanda

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ZAMBIA

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ECREEE SHP initiative

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World Small Hydropower Development Report 2013 Knowledge platform www.smallhydroworld.org (coming soon)

•Joint undertaking of UNIDO and ICSHP •First global assessment on SHP usage and potential •Covering 20 regions and 152 countries •> 60 contributing organizations and experts

• Preview of findings (SHP definition: up to 10 MW) •Installed capacity (2011/2012) > 75 GW •Global potential ~ 173 GW

Global distribution of small hydropower potential, defined as up to 10 MW

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Preview WSHPDR 2013 Recommendations (selection) National level recommendations

1) Resource assessment and water management •Improve data quality and availability •Balance multiple demands and functions of water

2) Rural electrification •Promote and test new business models for sustainable development of SHP

3) Planning, financing and implementation •Increase local technical capacities •Harness potentials: existing plants, multi-purpose & non-conventional sites, simplify procedures for adding SHP •Create a one-stop shop for SHP •Promote regulations on the use of waterways to avoid conflict of interest •Improve electricity network planning to identify investment needs for SHP connection • Facilitate access to finance •Improve collaboration among agencies responsible for water resources, environment and electricity

International and regional level recommendations

•Create a knowledge platform •Facilitate South-South and triangular cooperation

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