The Energy Charter Experience: Making Energy Efficiency Work for

Energy Efficiency policies in Energy
Charter countries
Status quo, main achievements and
challenges
Sergei Katyshev, Chairman of Energy Charter Energy
Efficiency Group
Bilyana Chobanova, Senior energy efficiency expert,
Energy Charter Secretariat
Brussels, 16 June 2016
Clean Energy Development
Overcoming
barriers
Connecting
sectors &
activities
Role of Governments
Policy tools can help reducing
the impact of energy use.
Promoting
investment
Fostering
economic
growth
Developing
local labour
Reducing
emissions
Available Energy Efficiency Policy Tools
Market facilitation and
public information
Regulatory
and
planning
instruments
Economic
instruments
Participatory and
voluntary approaches
Energy Charter Treaty - Protocol for Energy Efficiency
and Related Environmental Aspects - PEEREA
Scope:
Policy principles for
Energy Efficiency
Development of
Energy Efficient
markets
Promotion of energy
efficiency policies
Cooperation in
Energy Efficiency
field
PEEREA and domestic programs
Energy Efficiency Programmes
Develop, implement, update
Institutional & legal infrastructure
Scenarios,
balances and databases
Private initiative
and industrial cooperation
Impact of actions taken
Cogeneration
Information and Promotion
PEEREA – Possible Areas of Co-operation:
Programmes &
Regulatory measures
Technology
R&D
Financing
Local
Services
Areas of Cooperation
Energy analysis
Education
Training
Sectors
Power Generation
The limit of PEEREA
Legally binding?
Mechanisms of control:
Regular reviews and
In-depth EE reviews
All activities done
on a voluntary basis
PEEREA Activities
Process oriented – monitoring and supporting
achievement of commitments
Review implementation in Member Countries
In-depth reviews : most recent Mongolia (2010); Georgia (2010);
Bosnia and Herzegovina (2011); Albania (2011); Republic of
Belarus (2012); Azerbaijan Republic (2012); Tajikistan (2013);
Ukraine (2013); Turkey (2014); Kazakhstan (2014); Moldova
(2015)
8
PEEREA In-depth reviews




Commitments by Parties as review hosts and review experts
Involvement of a wide variety of institutions, businesses and nongovernmental actors in the country
Discussion and approval in the PEEREA Working Group
Endorsement by the Energy Charter Conference
Assessment of country performances & level
of Energy Efficiency implementation
Policy,
legislative and
Specific
regulations
Institutional
framework
Energy
statistics
Public
Awareness
Main
challenges
in reviewed
countries
Energy
markets
Conclusion about PEEREA:
1.
Strong platform for stimulating dialogue;
2.
Support to the implementation in different countries;
3.
Promote an integrated approach to energy efficiency.
Main challenges to energy efficiency
 Energy efficiency – energy or economic, social
and quality of life matter?
 Policy, legislative and Institutional framework?
 National policy goals and objectives do not reflect the
potential for energy efficiency
 Legal framework is underdeveloped
 Lack of/Under resourced national institutions for
energy efficiency
 Monitoring and review of implementation
 Energy statistics and energy efficiency indicators
Main challenges to energy efficiency
 Energy market
 Energy sector reform is still ongoing or not started
 Non-cost reflective energy pricing policy
 Availability of specific regulations – buildings,
district heating, energy using products, lighting,
transport
 Local authorities self-governance
 Availability of financing - financial mechanisms
and incentives
 General awareness on energy efficiency
Level of EE
implementation
Belarus
2012
Azerbaijan
2012
EE Policy and
legislation
Institutional
setting
Energy sector
reform
Cost reflective
energy prices
Specific EE
regulations
Financial
incentives
ESCO
General public
awareness
Low (L) – no existence and no intention to develop;
Intermediate (I) – intention to start developing;
Basic (B) – regulations exist in draft or just adopted;
Advanced – EE activities under implementation
Ukraine
2013
Kazakhstan
2014
Moldova
2015
Policy and legislative framework recommendations
Energy efficiency and renewable energy should
continue to be given priority by the government. Future
energy policies should be supported by detailed
analysis of economic energy efficiency potentials in all
sectors of the economy.
The government’s energy policy should reflect the potential
contribution of EE to increasing fuel exports and supporting
economic growth and the environment.
Continue sustainable energy policy reforms and ensure
effective enforcement of the energy efficiency legislative
framework.
Institutional framework recommendations
Inter-administration co-operation between energy and other
public policy makers should be enhanced, in particular for those
concerned with the environment, transport, housing and
industry.
The Government should, as a matter of urgency, take steps to
ensure that it has the institutional capacity appropriately
structured to effectively formulate, monitor, analyse and review
energy and energy efficiency policies and their implementation
and enforcement.
The government should ensure that sufficient human and financial
resources are allocated to the Department of Energy Efficiency as the
leading agency, as well as to all units within ministries and regional
administrations responsible for the development and implementation
of energy efficiency programs.
Energy market and tariffs
It is recommended that the government considers the
introduction of market-oriented principles in the energy sector
and an appropriate regulatory framework, based on
international experience
The Government should consistently peruse polices of
restructuring energy prices to remove cross subsides and achieve
cost reflective levels.
The independence of the National regulator needs to be guaranteed.
It is crucial for the stability and the proper functioning of the energy
market
Other recommendations
Specific EE Measures
Improve enforcement and compliance of
building regulations;
 Regulations on electricity using products;
 Introduce energy audits and
management in industry and buildings;
District heating rehabilitation and
individual metering;
 Consider measures for efficiency in
transports;
 Etc.

Availability of financing &
incentives
Ensure that international funding on EE is
leveraged with domestic budget financing;
 Strengthen cooperation with commercial
banks;
 Improve procedures for donor support
approval;
 Introduce incentives for private and
residential sector EE initiatives;
Etc.

Energy statistics
Monitoring EE implementation
Improve capacity to collect, analyse and
assess energy supply and consumption
data;
 Use energy and EE indicators as
important basis for future policy
developments;


Compare existing monitoring system
against international practices for the
purpose of improvement.
Albania – follow up on
recommendations implementation
2011
2014
Identified priority areas for policy support:
Capacity building for government/municipal
officials
EE Policy and legislation
- Development of energy efficiency projects
Institutional setting
- Energy efficiency indicators
Energy sector reform
Cost reflective energy
prices
- Energy audits and energy management
Specific regulations implementation
-
Standards & labels and building codes
enforcement and compliance
Specific ee regulations
Institutional setting
Financial incentives
-
Support to establish Local Energy Agency
-
Public/Private ESCO establishment
ESCO
Energy statistics
Renewable energy
-
Feasibility study for setting up cost-reflective
feed-in tariffs
-
Assessment of potential for second generation
biofuels
General public awareness
Low – no existence and no intention to develop; Intermediate – intention to start developing; Basic – regulations
exist in draft or just adopted; Advanced – ee activities under implementation
Bosnia and Herzegovina– follow up on
recommendations implementation
2011
2014
Identified priority areas for policy support:
EE Policy and legislation
Capacity building for government/municipal officials
Institutional setting
Energy sector reform
- Benefits of energy efficiency
B/
- Energy efficiency indicators
Cost reflective energy
prices
- Municipal energy planning
Specific ee regulations
-
Standards Enforcement and Verification
Financial incentives
-
Market transformation Program
ESCO
Energy statistics
Specific regulations implementation
Institutional setting
-
Support to establish Local Energy Agency
-
Public/Private ESCO establishment
General public awareness
Low (L) – no existence and no intention to develop; Intermediate (I) – intention to start developing;
Basic (B) – regulations exist in draft or just adopted; Advanced – ee activities under implementation
Thank you for your attention