An Introduction to the REEEP and its role in promoting Energy Efficiency Dr Alex Westlake, Consultant to the REEEP ESCO Workshop Beijing, 9 th June, 2005

Agenda REEEP Background and REEEP Projects Energy Service Company Project Objectives for today’s meeting Contact Details

REEEP is “An open and progressive partnership bringing together governments, businesses, organisations and civil society in new ways… …to accelerate and expand the global market for Renewable and Energy Efficiency Technologies” and

REEEP introduction Established at World Summit on Sustainable Development in Johannesburg 2002 International Secretariat launched in 2004 East Asia Regional Secretariat Established in August 2004 and hosted at the Chinese Renewable Energy Industries Association (CREIA) East Asia Secretariat covers Greater China, DPRK, Korea, Japan and Mongolia and has close links to Australia, South East Asia and South Asia.

Consultation identified three initial focal areas for the REEEP: Policy and regulatory frameworks Innovative financing and bundling Awareness raising, information sharing, communicating benefits and capacity building

REEEP Projects (1) Awareness Raising –REEEP Regional Secretariat – CREIA – China Improving Policy and Planning Frameworks –Regional Policy Network (RE Law, TRECS) – Regional –Sustainable Energy Planning at local levels – China –Regional Energy Efficiency and Renewable Energy Standard Network - ASEAN –Quantifying the benefits of Distributed Generation in China – WADE

REEEP Projects (2) Increasing Financing –REEEP Innovative Project Fund in China – Rabobank, GEI, La Guardia –Tsinghua Venture Capital VC – US$30-50m China Environment Fund 2004 –TRECs in Developing Countries, including CDM interactions – Brazil, South Africa, China

REEEP Projects (3) Accelerating the Markets for Energy Efficiency –ESCO Development in western regions of China and adjoining countries (Western China, Mongolia, Vietnam) –Energy Conservation in West Chinese Building and Design – Cambridge and Chongqing University

JapanUSWestern Europe China Opportunities to share and improve energy efficiency are clear as this graph of overall energy efficiency shows

March Clean Energy in China Strong Fundamentals Electricity growth – 14% per year, 400GW installed capacity, 2 nd only to US, GW estimate for 2020 based on quadrupling GDP and improved EE Huge clean energy resources –RE/EE/CMM. Strong Government Support – Renewable Energy Law passed in March, comes into force 01/06, and plan to update Energy Conservation Law in 2005 Carbon credit upside for qualified projects under the Clean Development Mechanism of the Kyoto Protocol

Energy Efficiency potential in China Energy Consumption per unit product is higher than world levels –Thermal Power higher by 22% –Steel industry higher by 21% –Cement industry higher by 45% –Buildings higher by 2-3 times Total energy efficiency is 32%, about 10% worse than world levels GDP/tce consumed is significantly lower than US, EU and Japan

Thermal Industry Steel Fertilizer Transport Commercial Power & residential Comparison of energy efficiency in key industry sectors versus international norms Developed (%) China (%)

Energy Efficiency Examples Waste heat capture at cement plants Small Boiler Replacement to cogeneration SWH District Heating System

Agenda REEEP Background and REEEP Projects Energy Service Company Project Objectives for today’s meeting Contact Details

Project Aims and Objectives (1) The objective of the project is to leverage the good work of World Bank, UNIDO and others to accelerate the development of Energy Service Companies (ESCOs) in Western China and neighbouring countries - Mongolia

Project Aims and Objectives (2) A key aim is to test the transferability of the institutional arrangements and market development for successful ESCO development to other regions and share this knowledge through the REEEP network.

Team Members Project leader –CREIA World Bank Linked ESCO Companies – Domain Experts International Consultants –IT Power ， Alex Westlake Mongolia Support –Energy and Environmental Consulting Limited Yunnan Local Support Team –Yunnan Environmental Development Institute

Summary of progress to date Held workshops/surveys in Yunnan / Mongolia Developed a set of ESCO information materials For Mongolia, the key outcome will be to establish an ESCO Association to promote the market For Yunnan, the key outcomes will be a project to establish an ESCO for 345 wine distillery / pig farm projects in a prefecture and to carry out training to highlight the role of CDM in helping EE projects A recurring theme is access to technology & financing

Agenda REEEP Background and REEEP Projects Energy Service Company Project Objectives for today’s meeting Contact Details

Objectives for today’s workshop Promote regional cooperation amongst ESCO’s and their country associations Identify the common and differentiated needs in each country in the East Asia region Map out specific actions to promote cooperation for EE in East Asia

Agenda REEEP Background and REEEP Projects Energy Service Company Project Objectives for today’s meeting Contact Details

Ma Lingjuan, CREIA Tel: +86 (0) Rebecca Gunning, IT Power Tel: +86 (0) Dr Dorjpurev, EEC Henry Voigt, YEDI Dr Alex Westlake, ClearWorld Energy