1. Energy Revolution- Energy Revolution- Policies for a Sustainable Future Summary: Angel Polleri Critique: Asong Suh Critique: Asong Suh By Howard Geller Policy Options

2.  The “innovation system” : A set of appropriate mix of policies which help the advancement of energy efficiency and renewable energy technologies.  Policy Options - Research, development and demonstration, RD & D - Research, development and demonstration, RD & D - Financing - Financing - Financial Incentives - Financial Incentives - Pricing - Pricing - Voluntary agreements - Voluntary agreements - Regulations - Regulations - Information dissemination and training - Information dissemination and training - Procurement - Procurement - Market reforms - Market reforms - Market obligations - Market obligations - Capacity building - Capacity building - Planning techniques - Planning techniques

3. Research, Development and Demonstration, RD & D  It is critical for expanding the knowledge base and keeping a flow of new technologies.  Government funded RD & D - Provides many benefits that the private sector can not. The private sector tends to under invest in RD & D. - Provides many benefits that the private sector can not. The private sector tends to under invest in RD & D. - Has contribute to the innovation of many energy efficiency and renewable technologies during the past 20 years. - Has contribute to the innovation of many energy efficiency and renewable technologies during the past 20 years.  In U.S. thanks to RD & D the cost of wind power and solar photovoltaic fell by a factor of 10. The cost of thermal power fell by more than a factor of 5.

4. Research, Development and Demonstration, DR & D  Some lessons have been learned over the past 25 years - DR & D improves the performance and reduces the cost of innovative technologies but does not assure the adoption and use of new technologies. However policies as financial incentives, market reserves and regulations can help. - DR & D improves the performance and reduces the cost of innovative technologies but does not assure the adoption and use of new technologies. However policies as financial incentives, market reserves and regulations can help. - DR & D collaboration. Research institutes provide new ideas and have strong technical capabilities, private companies understand marketplace’s needs and limitations. - DR & D collaboration. Research institutes provide new ideas and have strong technical capabilities, private companies understand marketplace’s needs and limitations. - DR & D programs should support different technological concepts in the early stages of development and commercialization. - DR & D programs should support different technological concepts in the early stages of development and commercialization.

5. Financing  Low interest rates, revolving loan funds, and micro credit have helped the deployment of energy efficiency and renewable energy technologies.  Energy Service Companies (ESCOs) - North America, South Korea, China, Hungary, Eastern Europe, and recently in Brazil – provide financing technology, installation and performance guarantees.  Governments of several countries are financing energy efficiency projects. - World Bank, European Bank for Reconstruction and Development, and several government institutions fund ESCOs projects - World Bank, European Bank for Reconstruction and Development, and several government institutions fund ESCOs projects

6. Financial Incentives  Help to get clean energy technologies, encourage early adopters and stimulate wider adoption of new energy sources.  Some countries provide financial incentives through tax credits, low interest rates, buyback rates above normal wholesale prices.  In the United States many electric utilities provide incentives to households and businesses that use energy-efficient products. “ It is less expensive to save energy than supply energy”.  Tax credited incentives are used to promote the use of innovate technologies such as hybrid and fuel cell vehicles.

7. Pricing  Many nations heavily tax carbon emission or fossil fuel sources of energy, this way they have cut carbon dioxide (CO2) and meet the Kyoto Protocol. - France, Germany and Japan have high gasoline taxes. - France, Germany and Japan have high gasoline taxes. - Denmark, Finland, Sweden have increased fossil fuel taxes and decreased personal income, retirement or employment taxes. - Denmark, Finland, Sweden have increased fossil fuel taxes and decreased personal income, retirement or employment taxes.  Large carbon taxes increase energy efficiency and encourage the use of renewables. In Sweden and Denmark the use of coal for heating decreased by 50% while the use of biofuels increased by 70%.  Energy subsidies have been eliminated in several countries. This policy improves energy efficiency but has an adverse impact in low income countries. In Ukraine energy costs is as much as 40% of the total income household  Another way to encourage the use of renewables is Net metering. Customers who produce more energy than needed can sell the extra energy to utility company.

8. Voluntary Agreements  Voluntary Agreements between the private sector and the government. Voluntary commitments by the government itself result in a better use of energy.  In Thailand the government supported the transition from 40 watt lamps to more efficient 36 watt lamps. Reducing the peak demand by about 630MW  Voluntary Agreements are easier and faster to adopt than mandatory regulations, but since this agreements are not legally binding the targets may not be achieved.  Voluntary commitments. Several cities have committed to reduce their green house emissions. Toronto and New Jersey have pledge to reduce its CO2 emissions by 2005.

9. Regulations  Help to increase energy efficiency and push the use of renewable energy devices or cogeneration systems.  Minimum efficiency standards help to remove deficient products from the market as old cars, domestic appliances, high energy consumption lighting products, etc.  Many countries around the world have adopted this regulations. Japan has one of the best programs to improve energy efficiency.

10. Regulations  Another way to regulate of energy is through adopting building codes. - Prescriptive based codes. Mandate certain technologies or system configurations during the building process. - Prescriptive based codes. Mandate certain technologies or system configurations during the building process. - Performance based codes. Require a certain level of energy performance such as the maximum amount of lighting power per unit of floor area. - Performance based codes. Require a certain level of energy performance such as the maximum amount of lighting power per unit of floor area.

11. Information Dissemination and Training  Information Dissemination and Training along with other policies such as financing, incentives, voluntary agreements or regulations are very effective reducing energy consumption and promoting the use of high-efficiency products.  As of 2000, U.S. Green Lights and Energy Star commercial building programs have help participants to cut their electricity use by nearly 32 billion KWh per year. This programs provide training, information, analytical tools, and recognition.  In U.S. the Energy Star product rating is a success, so far this products are saving 42 billion kWh per year.

12. Procurement  Bulk purchases help to establish initial markets for clean energy technologies.  Federal, state and municipal agencies buy large amounts of lamps. appliances, vehicles, etc. Buying great quantities of energy efficient products saves money and creates a new market.  Energy Star personal computers succeeded because federal agencies where required to buy Energy Star equipment.  Governments can purchase “green power” for use in their facilities and also coordinate the purchase of renewable energy technologies by large numbers of households or businesses.

13. Market Reforms  A number of countries have restructured their power sectors to stimulate greater competition, privatization and investment.  This reforms enhance energy and economy efficiency.  Creation of rural electric cooperatives helps to expand electricity supply in rural areas where other utilities providers have failed.

14. Market Reforms - Providing long term concessions to renewable energy providers increases access to electricity and boosts renewable energy use - Providing long term concessions to renewable energy providers increases access to electricity and boosts renewable energy use - The adoption of a small surcharge on all electricity sales supports energy efficiency and renewable energy sources. It also assists low-income and rural households to obtain energy services - The adoption of a small surcharge on all electricity sales supports energy efficiency and renewable energy sources. It also assists low-income and rural households to obtain energy services

15. Market Obligations  Market Obligations is a form of regulation that can be used to increase energy efficiency or renewable energy use.  Utilities can be required to supply or purchase a specified amount of electricity from renewable energy sources. - The Renewable Portfolio Standard RPS policies in U.S. requires the utilities to obtain some fraction of their capacity from renewables - The Renewable Portfolio Standard RPS policies in U.S. requires the utilities to obtain some fraction of their capacity from renewables  Market Obligations introduce renewable-based fuels into the transportation sector.  Market Obligations stimulate commercialization of advanced vehicle technologies.

16. Capacity Building  Capacity building is essential for implementing clean energy technologies on a large scale  All nations require technical expertise. The National energy efficiency centers and programs form and staff public sector agencies, research institutes, local training, outreach and service centers.

17. Planning Techniques  Energy Plan. It aims to reduce CO2 emissions increasing energy efficiency and renewable energy use. - Contains achievable goals, measures and actions for achieving the goals, and monitoring and evaluation procedures. - Contains achievable goals, measures and actions for achieving the goals, and monitoring and evaluation procedures. - Based on information and education efforts, grants and loans, financing, R&D, and regulatory measures - Based on information and education efforts, grants and loans, financing, R&D, and regulatory measures

18. Planning Techniques  Integrate resource planning IRP. The objective is to provide energy consumption services as cost-effective as possible. - It leads authorities and utilities to the largest and most cost- effective energy savings opportunities. - It leads authorities and utilities to the largest and most cost- effective energy savings opportunities. - Identifies renewable energy technologies at the least cost. - Identifies renewable energy technologies at the least cost.  Integrate land use and transport planning. Leads to efficient urban design and greater reliance on public transit systems.

19. Critique Overview:  Author credibility and references  Good Points  Constructive Input  Questions

20. Author Credibility & References  PhD in Energy Policy  Director of SWEEP (Southwest Energy Efficiency Project)  Co-author of three books on Energy related Issues  Testified to US Congress on Energy Issues  Used recent references: ’02, ’01, ’99, ……

21. Good Points  No ‘silver bullet’ approach for overcoming barriers for more sustainable energy  Ideas well articulated using concrete examples to drive points home

22. Constructive Input  Most of the proposals focused entirely on Developed countries (US, EU & Japan) Regulations: example of building codes in developing countriesRegulations: example of building codes in developing countries Developing countries lack technology to implement new renewable energy sources and maintain already existing onesDeveloping countries lack technology to implement new renewable energy sources and maintain already existing ones Financing in developing countriesFinancing in developing countries

23. Questions?