The e8: Implementing Sustainable Energy Development Worldwide Electric Utility Perspectives Implementing Renewable Electrification Projects in Developing Countries Robert Lyng Ontario Power Generation Climate Law in Developing Countries Post 2012 University of Ottawa 27 September 2008

The e8: Implementing Sustainable Energy Development Worldwide Member Companies HQ EDF OPG RWE ENEL TEPCO KANSAI RusHydro AEPDuke Energy 10 major electricity companies from the G8 countries

The e8: Implementing Sustainable Energy Development Worldwide What is the e8? A not-for-profit organisation with the mission to: Play an active role in global electricity policy issues; and, Promote sustainable development through: –renewable energy demonstration projects; and –human capacity building (HCB) activities in developing countries.

The e8: Implementing Sustainable Energy Development Worldwide Projects and HCB Activities E7-107 E7-82 E7-81 Projects Capacity Building Completed Mexico Nicaragua Ecuador Bolivia Chile Paraguay Jordan Egypt Tunisia Lebanon Syria Burkina Faso, Benin, Niger South Africa Zimbabwe Madagascar Bulgaria Georgia Tajikistan India Bhutan Bangladesh Thailand Indonesia Mongolia China Laos Malaysia Pacific Rim Kenya Maghreb Cameroon

The e8: Implementing Sustainable Energy Development Worldwide Ecuador Galapagos Wind Project

The e8: Implementing Sustainable Energy Development Worldwide Ecuador Galapagos Wind Project Project characteristics: 2.4 MW first large-scale wind project on the Galapagos Island of San Cristobal and Ecuador (Commissioned in Oct. 2007) One of the largest wind-diesel hybrid systems in the region, supplying more than 50% of the island’s electric needs through wind power. Complemented by two (2) 6 KW Solar PV systems, solar PV technical training and energy efficiency educational programmes. A wind project built on a UNESCO World Heritage Site, which complements the United Nations Development Programme (UNDP) renewable energy program for the Galapagos Islands. Featuring a comprehensive programme for the protection and enhancement of an endangered indigenous bird species (The Galapagos Petrel). Registered under the Kyoto Protocol’s Clean Development Mechanism (CDM). Replicable →Innovative financial model: –Legal structure: Commercial Trust Fund registered in Ecuador –Financial structure based on a combination of international grants (e8, UN agencies), Ecuadorian government grants Ecuadorian taxpayers’ donations designated income tax payment.

The e8: Implementing Sustainable Energy Development Worldwide Key Factors for Effective Project Development International Enabling International Framework on Climate Change (CC): –Comprehensive international agreement on CC, involving all countries and addressing issues of technology transfer, mitigation, financing … –Effective partnerships (International Financial Institutions, governments, private sector etc…) –Improvement of current mechanisms: CDM improvements to address process streamlining and inclusion of all mitigating technologies (nuclear and large hydro). Resolve uncertainty of CDM post-2012 –Establishment of a global emissions trading system National Clear and stable energy and rural electrification policies Adaptation of the regulatory framework to new requirements. Clear financial & legal framework: –Limited liability for investors –Ability to create legal partnerships in-country & receive funds –Asset ownership and security –Asset financing –Asset management –Intellectual property protection –Transmission building, connection, extension –End-user/customer needs –Electricity revenue –Local government support for project licensing, permit and rights authorisation

The e8: Implementing Sustainable Energy Development Worldwide Clean Development Mechanism (CDM) → China and India remain the largest recipients (>53% of projects)

The e8: Implementing Sustainable Energy Development Worldwide Clean Development Mechanism (CDM) → The EU remains the predominant investor (>63% of projects)

The e8: Implementing Sustainable Energy Development Worldwide CDM: Uneven Geographic Distribution → Africa benefits the least from the CDM

The e8: Implementing Sustainable Energy Development Worldwide