Improved Access to Sustainable Energy Energy and Climate Change

UNDP Energy Profile in NIS Current Situation and Developments Links with the GEF strategic priorities in the Climate Change FA Possible entry points for UNDP future support How to be relevant and help ourselves

UNDP Energy Profile in NIS Relatively limited identifiable non-GEF involvement (exceptions – Azerbaijan, Russia) Largely GEF-cofinanced Elements of energy sector involvement in policy work (economic governance) and country assistance dialog Cross-sectoral issue and importance: governance, poverty, environment

Current Developments Regional mosaic: advanced vs slow reformers, development (economic, institutional, human) Resumed economic growth: rates and breadth vary, high commodity prices plus input subsidies including energy costs (Russia, Azerbaijan, Kazakhstan, Ukraine), expanded trade, increase in investment Intra-regional integration, cross-border energy trade/investment

Energy Systems and Reform Low energy efficiency (even EU members), little RE development (except hydro) – 3 least energy-efficient economies EE potential: cross-sector distribution – industrial vs municipal/residential Poverty link: utilities, subsidies (tariffs, cross- subsidies – Russia proposal), rural grid cut-off (opportunity for RE development?) Prominence of heat subsector

Energy Systems and Reform Power&Utilities: uneven reform patterns, sectoral differences (power G&T vs municipal utilities) – opportunities (IPP, off-grid, system improvements, DSM RE – a priority? Regional and subregional trade and transformation: fossil fuel and power E-W, E- E, power E-S; power interconnection

Heat and Hot Water Sector Important for all countries – poverty and governance aspect Substantial fiscal and management burden, energy efficiency potential Inadequate legal and institutional framework, practices, governance issues Most GEF projects are in this subsector Workshop in Prague – note for GEF M&E – UNDP M&E publication to follow-up Intra-regional and inter-project dissemination (similar issues), beyond conventional dissemination KM network involving other stakeholders?

GEF CC/Energy SP Transformation of markets for high volume products and processes Increased access to local sources of financing for RE and EE Power sector policy frameworks supportive of renewable energy and energy efficiency Productive uses of renewable energy Capacity building: cross-cutting priority Enabling activities

GEF CC/Energy SP Transformation of markets for high volume products and processes: Standards and labeling Energy efficient motors, drives, appliances, fixtures, etc. Metering and control equipment Renewable energy

GEF CC/Energy SP Increased access to local sources of financing for RE and EE: Lending by domestic banks and leasing companies Guarantees, insurance and other financial products Project finance and financial engineering Access to capital markets (bonds) Public financing Consumer finance

GEF CC/Energy SP Power sector policy frameworks: Linkage with economic governance Power sector reform support Enabling environment for renewable energy (examples?) Enabling environment for energy efficiency Privatization and other forms of private sector involvement Technical standards Power trade Renewable energy requirements Tariff and pricing

GEF CC/Energy SP Productive uses of renewable energy: Non-electricity uses (agriculture, domestic) Rural Income generation Social infrastructure Linkage with poverty alleviation

UNDP Entry Points Energy and utilities (communal) sector reform process Links between national priorities/policies/programs, UNDP core activities, UNDP KM/CoP, and GEF SPs Country cooperation dialog (participation of EFPs? GEF RCU? KM aspect (we’ve done it and it works?) GEF support for national policies (SP-1,3) CC enabling activities and national programs/policies Economic, energy policies