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1 Training and Human Capacity Development for Energy Efficiency A UWI Centre for Environment and Development Presentation to the First Regional Meeting,

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Presentation on theme: "1 Training and Human Capacity Development for Energy Efficiency A UWI Centre for Environment and Development Presentation to the First Regional Meeting,"— Presentation transcript:

1 1 Training and Human Capacity Development for Energy Efficiency A UWI Centre for Environment and Development Presentation to the First Regional Meeting, Development of Energy Efficiency in the Caribbean Project June 13, 2002, rev. June 30, 2002 R. E. Sutherland, MSEE, MSCE G E Mullings, MSc Physics

2 2 Focus: Barriers to Energy Efficiency This project aims to dismantle the barriers to the application, implementation, and dissemination of least-cost energy efficiency [EE] technologies and to promote the efficient distribution and use of electrical energy in the countries of the Caribbean. In this initial [barrier identification and strategy proposal] phase, UWICED was tasked to investigate EE barriers relating to Training and Human Capacity Development [T & HCD]. UWICED has therefore identified barriers to EE that are linked to T & HCD. In this presentation, we will summarise these findings and propose several strategies to dismantle the identified barriers.

3 3 First, what is Energy Efficiency? Energy Equipment Energy Services Energy Sources Energy is a measure of ability to do work. (When work is done, orderly structure and behaviour are imposed on matter.) Energy is thus a key input to economic activity, and so to development. Energy efficient equipment provides energy services with a minimum of waste, relative to the Current state of the art. Efficiency = useful work o/p / energy i/p Waste Energy

4 4 The Importance of EE for SD In the Caribbean, dependence on imported petroleum, volatile commodity prices and fluctuations in tourism receipts have been major development challenges over the past three decades. However, as a UNIDO Expert Group Meeting recently observed:Industrial energy efficiency measures... generate a wide array of socio-economic benefits, including reduced energy costs, increased productivity and greater market competitiveness. Meanwhile, other indirect economic benefits ripple through the economy as reduced energy bills release more disposable income for other needs and services. [Vienna, Dec ] Thus, EE could contribute significantly to sustainable development in the Caribbean. However, experience with EE projects over the past decade indicates that several barriers are blocking the region from harvesting these benefits.

5 5 What is a Barrier to EE? Barriers to EE are mechanisms or trends that adversely affect the emergence, growth and potential size of EE markets. That is, where such barriers act, households, firms, agencies and communities are slow to adopt new, cost-effective EE products or services. And, the number of those who refuse to do so at all becomes relatively high...

6 6 How Do Barriers Affect Regional EE Markets?

7 7 Understanding Buyer/Refuser behaviour Buyers/Refusers in EE markets respond to innovative products in a predictable way: A – Attention to an issue, due to awareness of unmet EE needs. I – Interest in addressing the EE needs. D – Decision, through Exploration and Trial of energy service alternatives: adopt/refuse EE. A – Adoption (or Refusal) of an EE innovation that seeks to meet the need.

8 8 Human Capacity Development helps to dismantle EE Barriers Capacity is the ability of individuals, institutions and communities to identify EE opportunities,make and implement sound project/investment decisions and perform required technical functions effectively and sustainably. Individual or human capacity relates to whether or not firms, institutions and communities have adequate present or future human resources to identify EE opportunities, make and implement good decisions and carry out the associated technical functions. Thus, to dismantle barriers to EE, we need to identify and counter the key knowledge and skill gaps. This is what training and human capacity development (T & HCD) interventions aim to achieve.

9 9 EE Barriers linked to T & HCD Six key generic barriers to EE require T & HCD interventions: 1. Technical: lack of know-how for the development, implementation, and support of EE processes, products and services. 2. Informational: lack of availability/awareness of credible EE information (e.g. on 60 Hz EE equipment used at 50 Hz). 3. Risks and/or Uncertainties: EE projects are often wrongly rejected because returns are thought to be inadequate relative to perceived risk. (E.g. Are CFLs as good as promised?) 4. Financial/Economic: shortage of investment funds, compounded by a lack of state of the art financial management knowledge and skills. (E.g., Payback Period often rejects economically sound EE projects.) 5. Managerial/Entrepreneurial and Organizational: inadequate project appraisal, poor innovation management and dysfunctional office politics, so EE projects are often wrongly rejected. 6. Policy and Legal/Regulatory: Governments tend to focus on sectoral, energy supply oriented policy and regulation, rather than integrated resource planning [IRP].

10 10 Specific T & HCD Needs... Based on survey findings, these include, inter alia: 1. Energy auditing and energy management 2. Power plant operations and maintenance 3. Integrated resource planning & DSM 4. EE Project preparation and appraisal 5. EE Project implementation management 6. EE Project evaluation 7. Environmental impact assessment for energy projects 8. Business development/ Entrepreneurial management (especially for ESCOs) 9. Investment appraisal and finance for energy projects 10. Marketing of energy efficiency services, products and processes 11. Energy Policy 12. Regulatory skills for the Energy Sector

11 11 Types of T & HCD needs The above EE capacity needs – and required training interventions – can be grouped by types of staff: Strategic/managerial: needs of top-level decision-makers in firms, institutions, agencies, Ministries and communities. Professional: needs of analysts, advisors/consultants, trainers, communicators and implementers who deal with technical tasks that require a high degree of judgement. Technical: needs of implementers, maintainers and other support staff who carry out standardised, relatively routine EE tasks that require specific/specialised EE technology knowledge and skills. Operator: needs of staff who must use EE-related equipment in their routine job tasks General/Community: needs related to public awareness of, interest in, and support for EE – as these are requisites for successful EE policy in democratic communities.

12 12 Current T & HCD Initiatives The need for T & HCD is not new, and many training interventions have been undertaken over the years: often, through workshops and short courses. There has also been a growing wave of management, administrative and policy-oriented training, up to the Masters level. However, the emphasis in energy training has tended to focus on traditional technologies, or else on renewables. Similarly, the most prominent regional academic/professional energy society focuses on renewable energy. Unfortunately, technical EE-related training initiatives have shown a trend that once donor funding dries up, the intervention fades away. Consequently, our findings indicate a generally low level of activity in energy efficiency education and training.

13 13 Indicated Interventions 1. There must be a sustained demand for energy efficient products and services, if the development of human capacity is to make sense. 2. This requires moving from one-off projects to a sustained programmatic focus. 3. Existing institutional capacity for EE training needs to be further identified and mobilised. 4. Given the existing gaps, this capacity will require enhancement, through ongoing development of both staff and support equipment/facilities. 5. We must consider creation of new capacity through the initiation of new programmes, access modes and even institutions. 6. Finally, we must address sustainability.

14 14 Specific Recommendations The key intervention is the creation of a Graduate/Professional training programme in energy management. Thus, the key analysts, advisors and technical implementers in organisations and communities, would be equipped to better carry out their tasks, with formal recognition of skills developed. Across time, this would create a regional cadre of highly qualified Energy Managers capable of initiating, developing and carrying out EE projects and programmes. These energy managers would also be well-poised for promotion to decision-maker positions, and/or for creating ESCOs and other energy enterprises.

15 15 Need for Flexibility in such Training A recent regional skill needs survey, shows top level managers across the region see energy management as part of their general response to environmental standards. [Tindigarukayo, Cf. T & HCD Theme Report.] As CDBs energy experts similarly noted:Greening of the environment... has the attention of managers of large energy users. Energy efficiency and use of renewable energy is a sub- set of environmental greening... [C. Farrell, Financing Alternatives Theme Report, p. 5.] In short, the pattern of demand in the region targets a flexible blend of broad environmental management skills with specialized skills in fields such as energy management. Therefore, the grad./pro. training in Energy Management should (1) meet the requirements for the award of a Graduate Certificate component in the OLADE/University of Calgary Masters in Energy and Environment and also (2) integrate into a broader environmental management award.

16 16 The Suggested Grad./Professional Programme in Energy Management Energy Mgt. G/P Cert. General Env. Mgt G/P Cert. Research Project M.Sc, Env. Management OLADE/U of Calgary MSc programme M.Sc., Energy and Environment

17 17 Further Recommendations... a Caribbean Institute for Sustainable Energy Managers [CISEM] should be established, as a regional professional body. The CISEM should identify, integrate and disseminate a coherent body of knowledge and best practices for energy management and its various associated disciplines. These best practices would then guide: a. Policy and project development, analysis, implementation and evaluation; b. Accreditation of education and training programmes; c. The certification of approved instructors; and d. The registration and/or licensing of energy managers and other related environmental management practitioners.

18 18 Recommendations... The offering of professional short courses and/or workshops, with credit banking towards the award of the Graduate Certificates in the M.Sc. Such courses/workshops should be delivered using face-to-face and/or web-based distance education modes of access as CISEM accredited professional development courses. (NB: To count towards Graduate/Professional Certificates and professional recognition, these courses would have to be delivered by CISEM-certified instructors.) Similar courses would be offered for specific Technical EE skills, as well. (These would target specific technical skills and techniques, for both technicians and professionals, as appropriate.)

19 19 Recommendations... Provision, through the CISEM, of EE-related workshops and short courses for top-level managers and administrators. These courses should upgrade the capacity of senior managers to manage/make decisions about EE (and other related) proposals and initiatives. They should therefore help these decision makers to better identify, appraise, manage and evaluate EE (and other related environmental management) projects. Suggested Key Topics: Energy project appraisal; Energy project risk assessment and management; Energy project evaluation; Energy Management, EMS and ISO 14000/9000 Certification. There should also be a general survey course/workshop on energy management, efficiency and competitiveness.

20 20 Recommendations... CISEM should promote the creation of a federation of related professional bodies, towards sustainable development. This could be through creation of a Caribbean Council of Environmental Managers, CCEM. Similarly, a broad-based Caribbean Society for the Environment and Development [CSED] should be established in association with the CISEM/CCEM. This broader interest group would enhance general awareness of, interest in, and support for EE (and related environmental management) in the region. The CSED would therefore help provide credible energy, environment and sustainability information, and would carry out/coordinate sustained public education/outreach initiatives in the region. [Cf. The US-based National Geographic Society, and its Magazine and Cable TV Channel.]

21 21 Recommendations... Since research and development skills are critical components of the required human capacity, research, demonstration project and case study initiatives should also be undertaken under the CISEM/CCEM/CSED. This could be accomplished through a programme of Fellowships and associated strategic research and demonstration projects. Thus, the CISEM/CCEM/CSED would highlight key Energy and Environmental Management initiatives and funnel resources to support them. These initiatives would help to deepen and disseminate the regions knowledge base on best practices in Energy and related Environmental Management.

22 22 In Conclusion A focused programme of T & HCD interventions would materially contribute to the overall goal of this project, the dismantling of barriers to energy efficiency in the Caribbean. This would in turn lead to the more effective harvesting of the economic and environmental benefits of EE.

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