Norway’s Cooperation on Renewable Energy Morten Svelle, Energy Section, Ministry of Foreign Affairs

Background Energy is of key importance for Norway 1,2 billion people without access to electricity 2,8 billion using wood and charcoal for cooking and heating 40% increase in energy demand Energy security high on the agenda Sustainable Energy for All (SE4All) – UN post 2015 Development Goal: Norway has long experience on energy cooperation Recommendations from the Auditor General on Norway’s develpopment cooperation on renewable energy ( ) The Governments strong emphasis on energy and the role of private sector; employment, tax income and economic growth

Past experiences Long term and broad energy cooperation gives results Capacity building and competence is a key issue (predictability, regulator) Cooperation between universities gives good results Support to expand the central grid has contributed to access Mozambique: 7% access in 2007 to 26% in 2014 Central grid a prerequisite for new power production National Rural Renewable Energy Programme in Nepal successful: 2013: power from min hydro, solar PVs, effective cookstoves, biogas Norfunds business model successful – atracts private capital for power investments – assisted by development money for reforms, transmission lines…

Auditor General Review ( ) Limited contribution to access to clean energy Limited effect on the poor Weak planning of capacity building projects creates problems in implementation Recommendations: Make better use of new technology for stable power production Alternative instruments to promote private investments in least developed countries

New Objectives Overall vision is for Norway to contribute to the UN post 2015 Sustainability Goals on Energy: Universal access to secure, sustainable and modern energy services More renewable in the energy mix Energy efficiency

Areas for Cooperation Strategic use of aid to promote commercial investments and climate financing in new power production Support to extend the public energy infrastructure: transmission and distribution Support to develop local grids and single house energy solutions Support to energy efficiency Support to strengthen governence, reforms and capacity building

Key principles Support to partner countries own development-, energy- and climate plans The strategy establishes the framework – the specific conditions and need in each country define the exact country programme Strategic use of aid money to increase access to electricity for the poor Norway will fund specific projects as part of the overall sector plan Result based financing will be used whenever an effective tool Energy+ will test a sector based approach with payment for results on sector level as an alternative approach

Planning and management Planning and management will be strenghtened Tools: Annual budget allocation, activity plans and allocation letters Continous dialogue between MFA and the Embassies Country strategies for Norwegian energy assistance Better planning on activity level: Quality at entry New Advisory Group Norad a central function for QA and follow up

Results and reporting More emphasis on concrete goals and specific indicators Regular results reporting; Annually to the Storting (Prp. 1S) Comprehensive report in 2017 Research institutions will be engaged for follow research and scientifically based advice Long term strategy – revision at 5 years intervals

Climate More renewable in the energy mix nessecary for the climate Many developing countries rich on both fossil and renewable energy resources – important for energy security and increased access Developing countries a responsibility to contribute towards the global climate goals Norway will contribute to more renewable energy and energy efficiency Reduced and avoided emissions of climate gases Actively support evelopment of climate financing of clean energy

Cross cutting issues Womens and childrens special needs will be fully integrated Human rights will be integrated International standards for environment and social responsibility will be adopted Anti-corruption measures and awareness will prevent corruption with Norwegian and other funds Emphasis on education and competence develpment – ref White Paper on Education in Development Policy

Channells and Partners Bilateral – consentration Use Norways competitive edge Multilateral/int. Initiatives Sivil Sociaety Governments responsibility for sustainable development Support influence og vulnerable groups Provide local communities with small scale energy solutions Privat sector Investments in new generation capacity (Hydro, solar, wind, geotermal) Commercial operation of local grids and small scale solutions

3 Dilemmas National grid vs desentralised local grids and single house solutions Financial sustainability vs energy services for the poor Impact of regional power cooperation

Way forward Draft will be discussed with the Foreign Minister next week Broad external and internal consultation process New staratey adopted by April