7. Creating sets of measures 15 min Chapter 6 Ivan Nygaard

How to create sets of measures? Content Conclude the grouping of measures already started in processes above Assess the effect of measures Example of PROSOL programme in Ethiopia

Consultant Preparation of workshop Existing studies Economic analysis Consolidating results Assessing measures Assessing sets of measures Grouping measures for several technologies Workshop Barrier analysis Brainstorm Market mapping Root cause analysis Arranging the barriers Identifying measures Initial prioritizing of measures Creating sets of measures The process of capturing local knowledge and facilitating networking

How to create sets of measures Measures and (sets of measures) were identified through different processes: Brainstorm on measures in technology working groups Logical problem analysis in working groups Market mapping tool (consumer goods and capital goods) Finally decide on the ambition for the level of diffusion of the technology Finalise grouping measures that complements each other and creates synergy. This will be based on: The TNA Consultant’s own experience Documented experience on programs from other countries Experience from the technology working groups Assessment of the effect of measures and groups of measures

Assessment of the effect of measures and the effect of the sets of measures Asking questions such as: What is the effect of a subsidy on investment, and how does the effect depend on the size of the subsidy? What is the effect of a new low-cost financing scheme, and how does the effect depend on the interest rate? What is the effect of a tax exemption? What is the effect of an awareness campaign, and how does the effect depend on the size and cost of the campaign? What is the effect of a supported networking initiative among equipment producers and suppliers?

PROSOL - Solar water heater program in Tunisia GEF program, 35 % investment subsidy Subsidy exhausted PROSOL, 20 % investment subsidy finance scheme 70 %, low interest rate, accompanying measures USD 6.6 M USD 4.8 M Source: Samantha Olz (2011). Fostering solar water heating: Policy experiences and lessons from South Africa and Tunisia, in Haselip et al. "Diffusion of Renewable Energy Technologies: Case studies of enabling frameworks in developing countries. UNEP Risø Centre.

PROSOL measures and funding Measures Renewable energy framework law (2004), revised in 2009 Incentive programmes (grouped as PROSOL) since 2005: – 20 % capital subsidy – low interest loans (via SWH suppliers) by commercial banks (70 %) – payment recovery by utility – exemption from VAT – 10 % reduction in custom duties – certification, quality standards – capacity building – awareness raising campaigns Mandatory use of solar water heaters in new public buildings Funding GEF funding: – , USD 6.6 million PROSOL funding ( ) -Italian government -USD 2.4 million -UNEP -USD 1 million -Tunisian government -USD 1.4 million -Energy efficiency fund (continuing ?) -tax from car registration -VAT and duties on air-conditioning -Avoided LPG subsidies

Creating sets of measures Create at least two different sets of measures Conduct cost benefit analyses of each set Prioritize the two options according to existing national policy Discuss the two options with the members of the TNA committee and with politicians, before inclusion in the action plan Next steps

Constructing sets of measures Summing up Conclude the grouping of measures already started in processes above Assess the effect of measures Example of PROSOL programme in Ethiopia