Presentation on theme: "The Energy and Environment Partnership with the Mekong Region EEP Mekong Information Seminars."— Presentation transcript:
The Energy and Environment Partnership with the Mekong Region EEP Mekong Information Seminars
4 th Call for EEP Partnership Projects: What Would Make a Strong EEP Project Laos date
The EEP approach / “model” The EEP approach, or “model”, works essentially by implementing projects, reinforcing a policy framework, supporting the knowledge base, and capacity for development of renewable energy. But what is a “strong” project?
Partnership Projects must contribute to EEP objectives: that is.... Contribute to and stimulate development of Renewable Energy, Waste to Energy, and/or Energy Efficiency (energy savings). Reduction of Greenhouse Gas (GHG) emissions. Focus on rural poor if energy supply.
But, EEP has a relatively small fund EEP therefore target projects which can stimulate and unlock potential for further development (of RE, WTE, and/or EE). EEP requires some kind of “multiplier effect” as a central part of the project outcome. (This is like “leverage” in finance where given investment resources are used in a way that entails additional investments.)
For the EEP, the ”multiplier effect” means that Each project should lead on to, or pave the way, for further investments in RE / EE made without grants and/or reduced investment costs. Could also be an “eye opener”. There should be a clear and specific mechanism or process through which this should be achieved. What barrier is approached.
What is EEP Targeting Financial viableNot financial viable Considered commercial Considered to be financial non-viable Could be includedR & D ImplementedImplementableNot implementable
What is EEP Targeting Financial viableNot financial viable Considered commercial Considered to be financial non-viable Could be includedR & D ImplementedImplementableNot implementable Less inclusive Policy More inclusive Policy Lower oil prices Higher oil prices Policy and oil prices defines the split
Thus: Pilot / demonstration projects should lead to some specific development related to RE / EE. Feasibility studies should lead to a specific initiative and support further similar initiatives. Innovative technology/concept is important.
Example1: A micro-hydro or solar charging station provided through project grant to a rural community will increase use of RE and have benefits for poor rural household. This should provide benefits from improved income opportunities, home environment, education, etc. But, how will it lead to increased use of RE in the same area? and other areas? What is the mechanism? If the same grant for investment is needed then the RE “multiplier” is low.
Example 2: Pilot of improved biogas digesters, self- organized construction teams, and a package for scaling up through commercial loans. The pilot implementation has clear benefits for income and life quality improvements. If this works and the organisation can be scaled up through commercial loans, then the “multiplier” effect will be high.
Example 3: Construct a biogas plant to treat polluted wastewater from a cassava starch factory, produce biogas, and use the biogas in the starch factory to replace coal. This will reduce GHG, create employment and reduce local pollution. This is a commercial viable investment and it can be replicated with commercial funds. EEP took some of the risk of this slightly new application high “multiplier” effect.
Investment costs for scaling up: The ease of obtaining the investment costs for scaling up are very important to assess the “multiplier” effect. Donor funding should not be part of multiplier. Commercial loans and private sector investment should be easier if efficiency and financial returns are high. Spontaneous adoption (e.g. of low energy light bulbs) through private investment of beneficiaries would give very high multiplier effect but is difficult to achieve.
”Innovation”, ”technology”, etc The multiplier effect generally means that something new or innovative is added and/or introduced. This could be related to the RE and EE technology, it could be organisational, it could be financing. Innovative technology often needs “technology transfer”. The Partnership aspect of EEP encourage technology transfer.
Learning and dissemination Learning, and documentation and dissemination of this learning, are also usually important for the “multiplier effect” to work. This should be part of the project design.
For the Project Concept / Proposal Form... The spread or multiplier effect and the mechanism through which it will be achieved should be clearly explained. The project design should ensure that this will be achieved. This should generally be reflected in the overall objective. Make it simple, clear, and specific.