1 unido – gef partnership energy efficiency in industry csp sub-regional workshop for gef focal...
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UNIDO – GEF Partnership
Energy Efficiency in Industry
CSP Sub-regional Workshop for GEF Focal Points in Europe/CIS
14-15 April 2010, Istanbul, Turkey
Prepared by:Marco MatteiniIndustrial Energy Efficiency Unit
Presented by:Yury Sorokin
Refrigeration and Aerosols Unit
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Outline
About UNIDO
Context
UNIDO Industrial Energy Efficiency (IEE) Program
UNIDO - GEF Partnership and the IEE chapter Challenges Lessons learnt
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About UNIDO
UNIDO’s mandate is to promote sustainable industrial development.
UNIDO is the only specialized agency promoting the creation of wealth and tackling poverty alleviation through support to industry and manufacturing sector development
Three inter-related thematic priorities:
Poverty Reduction through Productive Activities
Trade Capacity-Building
Energy and Environment
Technical Co-operationareas:
Industrial Governance and Statistics
Investment and Technology Promotion
Industrial Competitiveness and Trade
Private Sector Development
Agro-Industries
Sustainable Energy and Climate Change
Montreal Protocol
Environmental Management
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UNIDO - GEF Partnership and the IEE chapter
Until Dec 2006, only three GEF Implementing Agencies: UNDP, UNEP, World Bank
UNIDO mainly Executing Agency access to GEF funds through them. Limited exception for POPs
Dec 2006, UNIDO gets Direct Access to GEF funds
UNIDO Comparative Advantage: Climate Change, International Waters, Biodiversity,Chemicals: POPs, ODS, mercury.
Dec 2009, cumulative approvals of UNIDO projects amounting to a total of US$ 257 million
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GEF4: UNIDO/IEE Projects Portfolio15 countries:CambodiaEcuadorEgyptIndiaIndonesiaIranMalaysiaMoldovaPhilippinesRussiaSri LankaThailandTurkeyViet NamUkraine GEF funded projects
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Context for Industrial Energy Efficiency
Potential CO2 emission reductions from different policy options
Increased nuclear
Increased Renewables
Power sector efficiency & fuel
Reference Scenario
Electricity end - use efficiency
Fossil fuels end -use efficiency
Policy Scenario Alternative
Source: IEA
29%
29%
13%
Industrial energy use globally accounts for– 40% of electricity use– 77% of coal and derivatives use– 37% of natural gas use
Industry has the potential to reduce its energy intensity and emissions up to 26–32%, providing a 8-12% reduction in total energy use and CO2 emissions2
1,2 Source: IEA, 2006 and 2007
and 1/3 of global CO2 emissions1
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Why Isn’t Industry More Energy Efficient? Policy and regulatory frameworks, including energy
pricing, are not supportive The business of industry is not energy efficiency Facility engineers typically do not become top managers Data on energy use of systems is very limited difficult
to assess performance Lack of capacity to identify and evaluate performance
improvements opportunities to become more energy efficient are overlooked
Disconnection between capital and operational budgets Investment constraints and lack of suitable financing Others …
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UNIDO Industrial Energy Efficiency Program
Focus Areas
Energy management standards Systems optimization (steam systems, pumps
systems, compressed air, refrigeration, etc.)
Why?
• Relevant and applicable over the entire industrial sector, no matter what the technological and production processes are (IPCC 4th Assessment Report, IEA)
• Energy management prerequisite for continual improvement of energy efficiency and performance in industry
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Energy Management & System Optimization
Energy management standard provides:– A framework for understanding significant energy use – Action Plans to continually improve energy performance– Documentation to sustain energy performance
improvements
System optimization provides:– A method of assessing systems to identify energy
performance improvement opportunities– Actions that can provide significant energy savings with
limited capital investments– More reliable operations
Energy Management + Systems Optimization = Winning StrategyEnergy Management + Systems Optimization = Winning Strategy
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UNIDO Industrial Energy Efficiency Program
Additional Thematic Areas – Country and sector specific
Promotion, demonstration, deployment and transfer of advanced low-carbon process technologies
Promotion, demonstration, deployment and transfer of renewable energy technologies for industrial applications (solar process heating and cooling, biomass, etc. )
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GEF4: UNIDO/IEE Projects
Project objective To reduce GHG emissions through improved energy efficiency in industry and the transformation of the market for industrial energy efficiency products and services.
Project components:
Policy support
Development and establishment of: National Energy Management Standard compatible with ISO 50001 IEE Best-Practice Information, Dissemination and Recognition Program National IEE Monitoring and Benchmarking Program Fiscal incentives for IEE Others …
Capacity-building
Energy Management (EM) Systems Expert Training System Optimization (SO) Expert Training (steam, pumps, compressed air, ..) Development and provision of tools to assist industry in developing and
implementing energy management and system optimization projects Training of industry managers and engineers
Pilot IEE projects Implementation of pilot projects in selected enterprises
Financing for IEE Development of IEE investment supporting schemes in partnership with
international as well as national financing institutions
Example of country project
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UNIDO/IEE Projects
Energy Management and System Optimization Expert
Training programs
timeProject duration
Information, Awareness and Promotion
EM/EE training of enterprise personnel
Provision of EE technical services to industry
Development of a Market for EM/EE
services to industry
Implementation of EE projects in industry
Capacity building on Energy Management & System OptimizationCreating market opportunities for energy efficiency
Post project
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GEF4: UNIDO/IEE Projects - Challenges
Fine tuning of good and effective national institutional arrangements and implementation model for development
Co-financing represents significant challenge for governments and partners in many countries
Many countries have very limited capacity to prepare GEF funded IEE projects. Significant IA assistance is required for project design and preparation. UNIDO is continuing to examine how best to provide services to country clients in a cost-efficient manner
Capitalize the knowledge creation potential of the Portfolio and ensure regional/ global sharing of information and learning experiences
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GEF4: UNIDO IEE Projects – Lessons Learnt
Leverage on existing local entities as much as possible Build strategic partnerships and maximize synergies with other
country projects and programs comprehensive IEE projects very often goes beyond core expertise of a single GEF IA
Involve key stakeholders groups as early as possible and provide details of envisaged implementation arrangements and expectations in advance of project launch (inception workshops, critical activities)
Securing co-financing to meet GEF requirements almost always the most difficult task in project preparation. Mobilization efforts should be initiated already at the project identification stage rather than postponed to project preparation: consider delays associated with programming of funds among potential co-financiers.
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Thank you for your attention!
Dolf GIELENChiefIndustrial Energy Efficiency UnitEnergy and Climate Change BranchUNIDO Vienna International CentreP.O. Box 300, A-1400 Vienna, AustriaTel: 0043 1 26026 3811E-mail: [email protected]
For more informationGeorgios ANESTISSenior GEF CoordinatorProgramme Development and Technical Cooperation DivisionUNIDO Vienna International CentreP.O. Box 300, A-1400 Vienna, AustriaTel: 0043 1 26026 4565E-mail: [email protected]