1. Energy Division Sustainable Energy For All

2. 2 Issues Related to the Energy Sector (Public Sector) Planning –Pre-feasibility –Regulatory Framework Capital and Operational Costs –Volatility of inputs Introduction of Different Energy Matrix –Reduction of Barriers to Entry

3. 3 Short-term (20010- 2011) Objective Support the sustainable development of the energy sector, focusing of the most effective investments and policies to close the gap between demand and supply. Activities –Rehabilitation of existing renewable hydroelectric plants –Energy Efficiency in the electricity and oil and gas sectors –Sustainable Energy programmatic programs

4. 4 Short-term (2010- 2011) Cost of New Electricity Generating Technologies SourceUS$/kW* Diesel**400 Gas (CCGT)717 Coal1534 Nuclear2475 Wind1434 Hydro1551 Solar PV5649 Source: Energy information Administration, www.eia.doe.gov 2007.www.eia.doe.gov *Overnight Cost: capital cost as if the project was completed overnight and without interest. ** IDB calculations vs. SourceUS$/kWe Energy Efficiency 200-250 Hydro rehabilitation 600-700 IDB calculations

5. 5 Short-term (2010- 2011) Rehabilitation of Existing Renewable Hydroelectric Plants –In LAC hydroelectric project construction took place mostly in the 1960s and 1970s. –It is expected that electro-mechanical equipment in other countries will start reaching end of useful life. –IDB is executing hydroelectric rehabilitation projects in Nicaragua, Haiti, Venezuela and Costa Rica.

6. 6 Short Term (2010- 2011) Energy Efficiency in the Electricity and Oil sub-sectors –The IDB has been widely involved in energy efficiency in the supply side by modernizing the transmission and distribution sub sectors to reduce technical losses. CountryProject Name ARFederal Transmission Plan Phase II BRFURNAS Hydroelectric Rehabilitation Program CHCCLIP: Energy for isolated regions ECSupport to Petroecuador Energy Efficiency investments Support to Transmission Program BORural Electrification Program BASustainable Energy Framework and Smart Fund HAPeligre Hydroelectric Rehabilitation Program NISupport to the National Sustainable Energy Program VEGURI Hydroelectric Power Plant Refurbishing

7. 7 Short-term (2010- 2011) Sustainable Energy Programmatic Programs –Support policy reform towards the configuration of sustainable energy matrices (Peru, Barbados and Bahamas). –Contribute to relieve sector constraints through regulatory reforms (El Salvador, Guatemala, Belize and Regional).

8. 8 Short-term (2010- 2011) Examples of Sustainable Energy Programmatic Programs CountryProject Name PEDevelopment of a New Sustainable Energy Matrix Program I PNEnergy Sector Consolidation Support Program I BASustainable Energy Framework I for Barbados CountryTC Name PESupport for the Energy Strategy of Peru PEStrategic Plan of Sustainable Energy and Biofuels to Peru (PEESB) BASupport to the preparation of the Sustainable Energy Framework I for Barbados

9. 9 Medium-term (2011- 2015) Objectives Implement projects and programs consistent with sustainable energy matrix that includes energy policy reformulation and increasing percentage of renewable energy in the matrix. GCI-9 and the Energy Sector in LAC Energy sector is comprised in three of the priority areas: Infrastructure for Competitiveness and Social Welfare (Priority Area 2) Regional Integration (Priority Area 4) Sustainable and Renewable Energy (Priority Area 5)

10. 10 Medium-term (2011- 2015) Facilitate the Transition to Increasingly Sustainable Energy Matrices Three modalities of support: –Project that promote national policy shift and implementation of large scale sustainable energy and energy efficiency projects –Support technical assistance programs on sustainable energy and energy efficiency, which may eventually lead to concrete projects –Provide knowledge transfer by technical assistance and in house analysis to assess the energy resource, through the Energy Innovation Center

11. IADB Energy Innovation Center The IDB will partner up with Governments and other partners to provide support for: –Knowledge dissemination, –Sustainable Energy innovation –Technical Assistance Platform –Financial resources for financing and co-financing energy sector projects

12. IADB Energy Innovation Center Objetives: Promote energy innovation and cutting edge technology for renewable energy, energy efficiency, and energy access Serve as regional hub for energy knowledge exchange and dissemination Translate ideas into projects Explore co-financing opportunities

13. 13 Long-term, (beyond 2015) Continues Support to sustainable energy, through regional energy integration in the Energy Sector –Support the successful completion of ongoing projects, i.e. Mesoamerica Project (SIEPAC) and the Guatemala- Mexico interconnection; –Promote new energy integration projects and support regional integration initiatives like; and –Support the development of potential new bi-national hydroelectric projects, i.e. Garabi (AR-BR) and Corpus (AR-PR).

14. Sustainable Energy For All