Renewable Energy Issues - NEDO’s Experience in Southeast Asia - 10 December 2002 Masahiro Miyazaki NEDO Bangkok (Southeast and South Asia Office) New Energy and Industrial Technology Development Organization, Japan (NEDO)

Key Commitments, Targets and Timetables from the Johannesburg Plan of Implementation Energy Renewable Energy Diversify energy supply and substantially increase the global share of renewable energy sources in order to increase its contribution to total energy supply. Access to Energy Improve access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services and resources, sufficient to achieve the Millennium Development Goals, including the goal of halving the proportion of people in poverty by

(2008) (2030) (2004) 100 2

Renewable Energy - Solar PV (Photovoltaic) - Solar thermal - Small Hydro - Wind - Biomass - Biogas - Bio-fuel - Waste to energy - Geothermal 3

NEDO PV Project in Malaysia (Sabah State) “Accelerated Demonstrative Research under Tropical Weather Conditions” 4

Total potential

Fair 6-7 m/s Good 7-8 m/s Very good 8-9 m/s Excellent > 9 m/s Wind Energy Potential of Southeast Asia at 65 M. Source: Wind Energy Resource Atlas of Southeast Asia Prepared for the World Bank Asia Alternative Energy Program by True Wind Solutions, LLC, Albany, New York 7

Source: G8 Renewable Energy Task Force Report, Conventional Production Cost Range 2000 Conventional Retail Cost 2000 Off Grid Cost 8

Lessons Learned Failures of RE projects are not technology but institutional problems. - Governmental policy for rural electrification and RE - Participation from local community - Tariff collection for maintenance - Income generating activities - Training for local people - Maintenance service by suppliers 9

What is necessary for rural electrification? Policy issues: - Government policy and regulatory framework to encourage RE (IPP, import duty exemption, etc.) - Active partnership between the public and private sectors - Financial support to villagers and businesses - Awareness of RE technology, cost and benefit (Demonstration projects) Private sector: - Commercial business to provide RE equipment and services (including maintenance and repair, training for local people) Village community: - Participation of village community - Productive use of electricity (income generation) - Training for proper maintenance - Electricity tariff for maintenance and repair 10

Vietnam million households (18 million people) have no access to electricity. - Government of Vietnam has a plan to extend national grid to 90% of rural households by Village-commune renewable projects including small hydro, PV and wind turbine were developed. - SELCO Vietnam has successfully installed SHS in rural areas since 1995 in cooperation with Vietnam Women’s Union and Vietnam Bank for Agricultural and Rural Development. 11

NEDO Project in Vietnam (Man Yang Province) “Hybrid System of PV Power Generation and Micro Hydro Power Generation” PV Power Generation approx. 100 kW Micro Hydro Power Generation approx. 25 kW Climate Observation Instruments Load River Hydro power yard PV yard PV array 12

Cambodia - Cambodia has no national grid and electricity is generated by 22 isolated diesel-generating systems. - Only 10-12% of households have access to electricity. - In rural areas, conventional biomass fuels mainly for cooking meet 85% of energy requirements. - More than 50% of households in rural areas use rechargeable batteries. There are about 1,500 battery-charging stations run by diesel generators. 13

1 US$ = 4000 Riel estimate 15

Cambodian RE and Rural Electrification Project Objectives: － 5% of power generated by RE by 2007 (8 MW) - 100,000 households with urban quality electricity by ~10,000 households served by solar and other RE - Sustainable market for RE systems 16

NEDO Project in Cambodia (Kompong Cham Province) “Dispersed Power Generation System (PV + Micro Hydro)” PV Power Generation newly installed approx. 80 kW Micro Hydro Power Generation newly installed approx. 40 kW 17

NEDO Project in Cambodia (Sihanoukville City) “Combined Power Generation System (PV+Biogas)” PV Power Generation newly installed approx. 50 kW Biogas Power Generation newly installed approx. 60 kW 18

Thailand Policy: - Energy Plan Energy Conservation Promotion Fund (ENCON fund) - Small Power Producers (SPP) and VSREPP RE projects: - EGAT Rooftop PV - PV pilot project in Mae Hong Son (500kw) - Rural electrification (PV, Mini-hydro) - Wind power pilot project 19

NEDO Project in Thailand (Kanchanaburi Province) “PV Power Generation System for Battery Charging Station” PV Power Generation 4 kW 20

NEDO Project in Thailand (Libong Islands, Trang Province) “Grid-Connected PV Power Generation System” Diesel Generator Home System PV module AC module Grid Battery Charging Station PV Power Generation 100 kW 21

(CO 2 equivalent million ton) 22

- 2.50% Emission Reduction of CO 2, Methane, Nitrous oxide + 0% : Emission reduction of CO 2 from energy utilization - 0.5% : Emission reduction of Methane, Nitrous oxide, etc % : Technology innovation and voluntary energy conservation by the public + 2% Emission control of Fluorocarbon alternatives (HFC, PFC, SF 6 ) % Sinks (Forestation etc.) Remainder Kyoto Mechanisms % (Emissions Trading, Joint Implementation, Clean Development Mechanism) Target of GHG Emissions Reduction in Japan,

Cost of CO 2 Reduction Comparisons 24

Non-Annex Ⅰ Country (Developing country) Annex Ⅰ Country (Developed country) CERs = Certified Emission Reductions OE = Operational Entity Government (5) CERs Reduction of GHG Emissions Financing, Technologies, etc. (4) Verification/ Certification Monitoring (1) Agreement (2) Validation Government CDM Project UNFCCC / CDM Executive Board OE 2 OE 1 CDM Scheme Project participant approval Project participant Financing, Technologies, etc. approval Project design document (3) Registration 25

Conclusion - RE plays a key role in poverty alleviation in off-grid rural areas but income generation need be incorporated. - Participation of local people is vital for successful RE projects. - Government policy and regulatory framework to encourage RE is crucial. -Private businesses supplying RE equipment and maintenance services should be encouraged. - Demonstration/Pilot Projects should be implemented and replicated. - Financial support is essential. - CDM should be explored as a new funding scheme. 26