Methodology for Assessing Quality Infrastructure for Renewable Energy Technologies in Developing Countries George Kelly – Sunset Technology Inc. 2 Oct.

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Presentation transcript:

Methodology for Assessing Quality Infrastructure for Renewable Energy Technologies in Developing Countries George Kelly – Sunset Technology Inc. 2 Oct 2014

Project # Seeking to prioritize activities for support of RE technology adoption in developing countries Desire to develop standardized methodology for evaluating options and selecting most effective methods of support Based on input from international experts on RE technology (IEC Technical Committees)

Elements of REQI

4-step process Basic concept is logical and straightforward Concentrates on asking the correct questions Links responses to the most appropriate actions based on Market Stage and existing REQI elements

Step 1: Basic Questions Four questions on market demand, financing policy, standardization and manufacturing capacity allowing for a basic categorization of the RE market stage in a given country Step 2: Market Stage The market stage (introduction, growth, consolidation, maturity) is determined on the basis of the responses to the Basic Questions Step 3: Specific Questions On the basis of the market stage identified, a further detailed set of questions needs to be answered to assist with determining the most appropriate course of action in a given country Eventually based on an available list of standard profiles Step 4: Tailored Recommendations Depending on the responses to the Specific Questions, the market stage can be further refined and a set of prioritized actions for improving QI for a given country identified. Performance monitoring for every stage

Step 1 – Basic Questions Must correlate to market stage descriptions (introduction, growth, consolidation, mature) – Identifying characteristics at each stage – Based on key situational components (KSCs) which are the most indicative of market stage – Not necessarily about QI; more about ability for market to develop

Key Situational Components (the Four Questions) KSCs are identified as: – Market demand – Policy for financing of RE – Standards & conformity assessment – Existing manufacturing capacity Need to provide further guidance for the national expert on how to properly analyze the responses to select the correct market stage

Key Situational ComponentIntroductionGrowthConsolidationMaturity Market demandThere is an initial consumer demand (early movers) for RETs There is a growing consumer demand for RETs ; consumers recognize value of RE There is a steady growth of RET deployment; consumers recognize value of RE; consumers recognize value of QI Significant value is perceived for RE; high quality is demanded; benefits of QI are understood Policy for financing of RE There is no policy in place, or minimal funding available Some public funding is available; minimal private financing is available Increasing public and private funding are available; some consumer financing is available Significant public and private funding are available; consumer financing is readily available Standards & conformity assessment There are no relevant standards adopted; there is no conformity assessment Relevant standards are adopted; conformity based on importer certifications Relevant standards encouraging quality improvements are adopted; participation in standards development; limited participation in IECRE Extensive standards encouraging quality improvements are adopted; participation in standards development; full participation in IECRE Manufacturing capacity There is no manufacturing capacity in place There is limited local manufacturing capacity; there is minimal capability for quality management There is local manufacturing capacity; there is improving capability for quality management There is significant local manufacturing capacity; there is established capability for quality management Score:1234

Step 2- Market Stage Market StageIntroductionGrowthConsolidationMaturity Minimum Score Maximum Score Weighting Factors are assigned based on market stage determined in this step These factors are used to prioritize recommended actions in step 4

Market Stage Ratings (based on average score) Distribution is expected to be skewed to early market stages

Market introduction Step 3: Specific questions 1.Question A 2.Question B 3.Question C 4.Question D 5.Question E 6.Etc. Step 4: Tailored recommendations 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Profile 1* Profile 2 Profile 3 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Market growth 1.Question A 2.Question B 3.Question C 4.Question D 5.Question E 6.Etc. Profile 1 Profile 2 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. *The number of specific questions and profiles is to be determined. The number used here serves as an example only. Standard profiles could be developed over time

Market maturity Step 3: Specific questions 1.Question A 2.Question B 3.Question C 4.Question D 5.Question E 6.Etc. Step 4: Tailored recommendations 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Profile 1 Profile 2 Profile 3 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Profile 4 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Market consolidation 1.Question A 2.Question B 3.Question C 4.Question D 5.Question E 6.Etc. Profile 1* Profile 2 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. 1.Recommendation Priority 1 2.Recommendation Priority 2 3.Etc. Standard profiles could be developed over time

Step 3 – Specific questions Different from basic questions – Responses are indicative of QI development Characterization of REQI Elements to identify subdivisions of specific needs within market stages – Most markets are expected to be in “introduction” or “growth” stages – Must guide recommendations to specific needs of the individual country – Must be indicative of which course of action will be most effective

Situational Needs Profile REQI ElementsIntroductionGrowthConsolidationMaturity Market economics Regulatory policy Information on international standards Participation in standards development Adoption of standards Responses to Further set of specific questions Conformity assessment process Management of the certification system Laboratory and testing capabilities Installation, operation and maintenance Specific questions used in step 3 will be selected/edited from the list in Annex D May be same questions or different questions for each market stage Responses may not be sufficiently similar to justify “standard” profiles as envisioned in previous discussions

Step 4 – Tailored recommendations Each country case will result in a set of priorities and recommended actions – REQI needed at each market stage is defined based on IRENA references – Answers gathered in Step 3 are used to identify REQI gaps based on KSCs in subject country – Actions are prioritized based on expected results, time horizon, and available budget

General Categories of Actions (refined with IRENA model) Policy – Incentives – Standards – Licensing Standards process – Education – Participation Manufacturing support – QC equipment – Training Technical capability – Lab – Field

IRENA Model

Guidance for Recommended Actions (p.1) Broad areas of activity Key capacity building needs IntroductionGrowthConsolidationMaturity Economic Supportsupport QIsupport QI/Market bolster international QI Financial support for product and market development require certified imports mfr incentivesend user incentives requiring QI link w/intl groups devloping QI Performance Assurance support demo projects initiate testingbegin product validation lower govt support Management of the certification system build public awareness local labs emulating intl stds eqpt & system ratings/listing reduce incentives Communication of policy and incentives for RE technology adoption user trainingIEC tests w/consumer labels reduce local QI support ( Easier to read in Excel sheet !! )

Guidance for Recommended Actions (p.2) Broad areas of activity Key capacity building needs IntroductionGrowthConsolidationMaturity Standards Process support continued standards making support QI Utilization of international standards adopt in’tl stds as natl stds natl & intlnatl stds maintenance standards maintenance Participation in standards development process regional/intl stds participation international standards participation Trainingfund trainingsupport trainingrequire accreditation Access to information on standards and conformity assessment systems Installation, operation and maintenance of RE systems courses for practitioners certified practitioners training, inspection Development of national capacity to implement relevant standards (trainers, consultants, energy experts, assessors, auditors) courses for import inspectors

Guidance for Recommended Actions (p.3) Broad areas of activity Key capacity building needs IntroductionGrowthConsolidationMaturity Test Capabilitydevelop regional QI scheme support unaccredited test labs require accreditation Laboratory and testing capabilities colloborate w/other countries regional QI development approach intl stdstest labs, certification, Technical capacity for future standard development and performance monitoring Development of national conformity assessment providers with mutual recognition within accepted international guidelines

Prioritization of Actions Three Decision Criteria: Most likely to achieve improvement Reasonably short time horizon Consistent with available budget – Estimated cost ranges must be assigned to each type of action

Market Stage Weighting Factors Based on Market Stage determined in step 2 Not sure if further subdivision is (1) more effective or (2) too complex Market Stage Weighting Factor (MSWF) Broad areas of activity IntroductionGrowthConsolidationMaturity Economic Support 3221 Performance Assurance 2332 Standards Process 3321 Training 2321 Test Capability 1233

Market Stage Weighting Factors Market Stage Weighting Factor (MSWF) Key capacity building needs IntroductionGrowthConsolidationMaturity Financial support for product and market development3221 Management of the certification system2332 Communication of policy and incentives for RE technology adoption 3221 Utilization of international standards2332 Participation in standards development process2321 Access to information on standards and conformity assessment systems 3211 Installation, operation and maintenance of RE systems2321 Development of national capacity to implement relevant standards (trainers, consultants, energy experts, assessors, auditors) 2321 Laboratory and testing capabilities1233 Technical capacity for future standard development and performance monitoring 1223 Development of national conformity assessment providers with mutual recognition within accepted international guidelines 1322 Based on Market Stage determined in step 2 Not sure if further subdivision is (1) more effective or (2) too complex

Conclusions UNIDO is well positioned to provide capacity-building services relevant to REQI – In earlier work, UNIDO and IRENA have made significant progress in developing a methodology for evaluation of REQI in developing countries The concept of market development through a four-stage hierarchy is a useful model for understanding the most important requirements for effectively improving REQI – By gaining an understanding of situational components, it is possible to select the most cost-effective and beneficial actions that will improve QI The methodology can be further optimized to guide the selection of the best actions to improve REQI and achieve public policy objectives

PART 2 If sufficient time is available for further discussion Possible utilization of conformity assessment with new IEC System for Certification to Standards Relating to Equipment for Use in Renewable Energy Applications (IECRE System) ®

IECRE System Indication of a need for international conformity assessment system for RE Originally conceived for large projects Could define scheme for small RE tech in developing countries ®

Conformity Assessment Evaluation against international standards – May use national or regional standards if no international standard is available Improved quality and performance – Assurance that PV plant will operate as designed for its expected lifetime Increased confidence for investors – Financial return meets expectations – Risk is reduced 10 June 2014George Kelly – Sunset Technology27 ®

IEC Roles & Responsibilities Standards Management Board (SMB) – Technical Committees => Write the standards – Manage nomination of experts and voting by National Committees Conformity Assessment Board (CAB) – Assessment Schemes => Evaluate implementation of standards in specific situations – Manage accreditation of Certifying Bodies ® 10 June 2014George Kelly – Sunset Technology28

IEC Organization IEC Central Office Executive Committee IECRE Standardization Management Board (SMB) Conformity Assessment Board (CAB) Technical Committees (like TC82) Technical Advisory Committees Strategic Groups CAB Working Groups IECEE IECEx IECQ ® 10 June 2014George Kelly – Sunset Technology29

10 June 2014George Kelly – Sunset Technology30

IECRE Structure IEC CONFORMITY ASSESSMENT BOARD, CAB Oversees IEC Conformity Assessment policy and Systems, eg IECEE, IECEx, IECQ, IECRE IECRE Management Committee, REMC Overall management of the IECRE System Officers + Executive, Scheme Chairs, IEC Gen. Sec Expert Working Groups (WGs) – as needed WE OMC Wind Energy Operational Management Committee National Members TC 88 + SC Liaison ME OMC Marine Energy Operational Management Committee National Members SubCommittees + WGs IECRE Secretariat Technical Support Administration PV OMC PV Solar Operational Management Committee Daily management of WE Scheme SubCommittees +WGs Daily management of ME Scheme TC SC Liaison Daily management of PV Scheme National Members SubCommittees + WGs TC 82 + SC Liaison National Members (Countries)

10 June 2014George Kelly – Sunset Technology32

Aspects of Certification Design Phase General Site conditions evaluation Design evaluation Equipment evaluation Structural and electrical evaluation Implementation Phase Installation surveillance Output characteristics measurement Commissioning surveillance Operation and maintenance surveillance 10 June 2014George Kelly – Sunset Technology33 Conformity assessment will be performed and certificate issued for an individual PV power plant on a specific site

PV Standards for Assessment Module / Inverter / BOS others Manufacturing Quality – 82/800/NP System Design / Installation – local codes Commissioning / Operation – TBD Maintenance – NWIP 10 June 2014George Kelly – Sunset Technology34

International Electrotechnical Commission Technical Committee 82 - Solar photovoltaic energy systems IEC System for Certification to Standards Relating to Equipment for Use in Renewable Energy Applications (IECRE System) ® Thank you for your attention Questions? Contact 10 June 2014George Kelly – Sunset Technology35

Extra Slides

Market Stage Ratings (based on average score) Introduction