Invitation for Member input: Work Programme and Budget 2018

Invitation for Member input: Work Programme and Budget 2018-2019
Introduction
1.
The Work Programme 2016-2017 responds to the imperative of the transformation of the
energy system that has quickly risen to the forefront of the global agenda with the adoption of the
Paris Agreement and the adoption of the sustainable development goals within the UN framework.
This Work Programme also reflects Members’ increased focus on energy security and economic
growth, and places an emphasis on the deployment of renewable energy options as key to poverty
alleviation. Guided by its Medium-term Strategy 2013-2017 (A/3/DC/14), IRENA has organized
the Work Programme around a set of objectives to support Members’ priorities and needs, and to
capture global trends and changes. These objectives include:
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2.
Successful transformation of country energy systems to meet national targets,
advance strategies to decrease global emissions and improve energy security;
Improved policy frameworks and enabling market conditions for accelerated
deployment of renewable energy;
Improved livelihoods through access to renewable energy;
Regional integration with increased shares of renewables to meet energy needs;
Transformed island energy systems through renewable energy; and
Renewable energy knowledge accessible to all.
The current Work Programme is underpinned by three priorities:
a. the continuous emphasis on the business case of renewable energy;
b. enhancing regional action; and
c. strengthening IRENA’s effectiveness through strategic partnerships.
3.
The programmatic activities span a range of services, from knowledge and advisory products
to the Agency’s convening role with the aim to enable action along six thematic areas. A detailed
overview of the thematic areas and related objectives, impacts and components, as approved in the
Work Programme and Budget for 2016-2017 is annexed to this Note, and the focus of respective
thematic areas is summarized as follows.
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Planning for the global energy transition. In the 2016-2017 biennium, IRENA’s
programme on the transformation of the energy system targets selected issues identified
by Members as a priority. This includes power system design, technology solutions
for power and end-use sectors and resulting policy and market implications. It also
places added focus on biomass, which plays a significant role in the transformation of
the energy sector, end-use in particular. The Agency’s institutional publication
Rethinking Energy captures key trends and issues and, supported by a range of
IRENA’s programmatic output, provides key recommendations for policy makers in
support of the transformation of the energy system. IRENA also expanded its
collaboration efforts to include not only country experts and policy makers, but also
energy planners, utilities, regulators and others.
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Enabling investment and growth. IRENA’s costing work demonstrates that renewable
energy technologies are increasingly an economically competitive solution. The macroeconomic rationale is supported by IRENA’s body of work on jobs, income, and
industrial development. To help improve policy frameworks and enabling market
conditions, IRENA continues to work on policy assessments and market analysis,
focused on selected regions including GCC, LAC and South East Asia. IRENA also
focuses on investment flows and risk mitigation instruments, and on strengthening the
project facilitation with a range of tools and platforms.
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Renewable energy access for sustainable livelihoods. With the objective of
contributing to the global energy access effort, IRENA’s International Off-grid Rural
Electrification Conference (IOREC) is central to this thematic area, as is the work on
specific issues that have been identified by IOREC, such as technologies for rural and
productive applications, policies to enable mini-grids and support small and medium
sized entrepreneurs (SMEs).
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Regional action agenda. Through a number of cooperation instruments, IRENA works
with countries and regions to support their efforts to harvest the full potential of
renewable energy technologies and socio-economic benefits they bring. IRENA is
facilitating regional cooperation and greater integration of regional markets, including
through Clean Energy Corridor efforts in Africa, Central America and South East Asia.
It is also facilitating regional approach to deployment of renewable energy in MENA,
South East Europe and Central Asia. Regional work is complemented by country-level
efforts, such as Renewables Readiness Assessments (RRAs) and post-RRAs activities
that support the implementation of recommendations.
•
Islands: lighthouses for renewable energy deployment: The SIDS Lighthouses
Initiative brings together a range of partners to strengthen capacity, increase
knowledge, and mobilise resources to accelerate energy transition in SIDS. Within this
framework, IRENA is providing technical assistance and advice, including RRAs,
technology roadmaps, targeted capacity building and advisory support on grid
integration, resource assessment and application of renewable energy technologies.
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Gateway to knowledge on renewable energy. IRENA seeks to provide accurate,
current, objective renewable energy information to support analysis and sound decision
making. IRENA collects from its membership and partners, different streams of data
and information, such as renewable energy generation, market statistics, and resource
potentials, among others, and disseminates them through online systems and tools. It
also gathers constituencies such as the private sector, legislators and other stakeholders
to strengthen outreach and gather diverse views to inform the Agency’s programmatic
work.
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Considerations for the future programming
4.
The transformation of the existing energy system into a dynamic low carbon and
economically vibrant one, is a major component of the global strategy to achieve sustainable
development. Effective policy instruments, coupled with the rapid development of renewable
energy technologies and their falling costs, indicate that renewable energy will play a central role
in the transformation of the global energy system in the years to come. Transformation is taking
hold across all energy-dependent sectors: electricity, heating and transport, and is reshaping
auxiliary areas such as producers, networks, and markets.
5.
IRENA’s Renewable Capacity Statistics 2016 highlights that renewable generation capacity
has increased by roughly one-third in the last five years. Nearly 2,000 GW exist globally, with
most of the growth coming from new installations of wind and solar energy. The year 2015 marked
the highest annual growth rate on record, as well as the first year when renewables made up the
majority of the added energy capacity at 61%. Despite this progress, much remains to be done.
IRENA’s REmap: Roadmap for a Renewable Energy Future shows that doubling the share of
renewable energy by 2030, underpinned by energy efficiency, would help realize both the growth
and decarbonization objectives. It emphasizes that the next few years present a window of
opportunity to escalate the transformation at the necessary scale, which requires a six-fold
acceleration of the current growth. This acceleration would result in a range of benefits, including
creation of over 24 million jobs in the renewable energy sector, and would boost the global
economy by up to USD 1.3 trillion by 2030.
6.
In the course of discussions on the renewable energy trends and strategic direction for the
Agency, Members considered key elements that are driving the deployment of renewables
worldwide. Some of these elements would have an immediate impact on the next programming
cycle, including:
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Energy sector transformation. With its global membership base and a focused mandate,
IRENA is ideally placed to play a leading role in the ongoing transformation of the energy
system and energy transition planning, to share the latest information, assess best practice,
and to provide recommendations and advice including on possible pathways to
deployment. Importantly, the Agency should stimulate action and be a convener of all
stakeholders that need to play a part in this effort. Strengthening the business case for
renewables should remain the Agency’s priority in this context, as well as a contribution
to the effort to adapt the market structures and enabling frameworks. A greater focus
should be placed on all aspects of innovation, and the links between energy and other
sectors, including the Information and Communication Technology (ICT), most notably
digitalization.
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Sustainable Development Agenda. Renewable energy and energy efficiency cut across
almost all SDGs and are complementary in the effort to meet growing energy needs in a
sustainable way. The modular and decentralised nature of renewable energy is a key
means to achieving universal access to alleviate poverty and stimulate economic growth.
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It is also an opportunity to design an efficient new system based on renewable energy
technologies, and IRENA should play a leading role in this effort.
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Renewable energy and climate change. Climate change represents a major global
challenge which requires solutions on many fronts. Renewable energy is seen as one of
the key options available today, which is also reflected in the renewable energy ambition
contained in many Nationally Determined Contributions (NDCs). IRENA should
mainstream climate in its programmatic activities to become an enabling instrument in
supporting countries in their efforts to decarbonise energy and in accessing climate
finance, and use the momentum to promote an enabling policy and regulatory
environment, and the business case for renewables in the energy and other sectors.
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Energy end-use. Renewable energy has progressed significantly in the power sector and,
as its share grows, so does the importance of the ongoing technology, policy and market
development. Added focus on renewable energy solutions for transport, buildings and
industry is needed in the next programmatic cycle. In this context, the work in cities is of
critical importance as energy use is concentrated there and many transport, heating and
cooling solutions will emerge in the urban setting.
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Benefits of renewable energy. Contextualising renewable energy both within the broader
energy sector and in different economic and social settings greatly assists in making a case
for renewable energy. IRENA’s work to date in this context has been effective, and efforts
should be made to expand it to the most impactful aspects. Demonstrating renewable
energy benefits for health, energy security, employment, local value chains, productive
use, and resource suitability makes the case for renewables even stronger.
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Engagement with the private sector. The private sector plays an indispensable role in the
transformation of the energy system and the evolution of the energy production,
distribution and use. IRENA should bolster its engagement with the private sector,
mindful of the necessity to remain, and be perceived, as impartial. This engagement
should also include financing institutions as well as companies that are actively creating
new demand drivers through their commitment to renewable energy as well as innovative
companies along the renewable energy value chain.
7.
Members also reflected on the next phase of the Agency’s development and growth.
Recognising IRENA’s near-universal membership, its unique place in the global energy landscape,
extensive knowledge base, strong brand name and a growing demand for its services, Members
highlighted a number of considerations including:
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Greater focus on concrete advice and assistance to countries. IRENA has a substantial
knowledge base, stemming from its analytical work and engagement with countries.
Direct engagement with countries makes a difference on the ground, and these needs will
continue to grow. While maintaining excellence in knowledge and analytical products,
IRENA should place an added focus on translating it into concrete policy, financial and
technical advice and support to countries.
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Increased use of partnerships. Positive developments in the sector and IRENA’s
growing membership mean that the Agency should make even greater efforts to forge
strategic partnerships. There is a wealth of expertise and experience with Members that
IRENA could tap into regularly and systematically. Furthermore, IRENA should identify
synergies with initiatives and organisations active in the sector, and create country and
regional networks to support on the ground implementation of renewable energy plans
and strategies.
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Impact-driven implementation. With close to six years of its programmatic activities to
date, IRENA’s work is starting to yield concrete results and impacts. Some of these have
been captured in the progress and annual reports, but the additional effort should be made
to track impact more systematically, to both demonstrate progress and validate
programmatic focus.
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Targeted programmatic activities. In view of the growing demand and limited resources,
IRENA should prioritise its programmatic activities on those that are likely to yield the
greatest impact, and where IRENA has a comparative advantage. Programmatic activities
should integrate communication and outreach strategy to facilitate targeted and effective
dissemination.
Questions
8.
With the backdrop of the discussions on the Medium-term Strategy and the implementation
of the Work Programme 2016-2017, the questions below are offered to facilitate Members’
contribution to the preparation of the Work Programme and Budget Framework 2018-2019.
Furthermore, a table containing current thematic areas and programmatic components is annexed
to this note to enable targeted feedback.
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Considering developments in recent years, as well as drivers for the future deployment
of renewable energy, what are the areas of IRENA’s work where additional emphasis
is needed or in which strategic adjustments should be made?
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Bearing in mind the growing and diverse needs of Members, what are the key areas of
priority which you believe the Agency should be addressing in the next programmatic
cycle?
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Are there any specific activities or issues which you consider should be phased out?
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Are there priority areas that IRENA is currently not addressing and should add to its
next work programme?
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Are there emerging issues and any specific regional or global activities or initiatives to
which IRENA should contribute in the coming years?
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What further comments of suggestions would you like to make?
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Work Programme 2016-2017: Thematic areas and programmatic components
The table below provides an overview of the thematic areas and related objectives, impacts and components, as approved in the Work
Programme and Budget for 2016-2017. To facilitate streamlining of the activities in the next programmatic cycle, Members are invited
to review and comment on the current components and indicate the level of priority they attach to specific components.
Planning for the renewable energy transition
Objective
Impact
Countries
Informed global debate on the role of renewables in the energy sector
successfully
transformation.
transform their
energy systems to Increased knowledge on renewable energy grid integration and
meet national
strengthened dialogue between policy makers and the utilities.
targets and
Power systems and national energy master plans that include large
strategies to
shares of renewables.
decrease global
emissions and
REmap messages on the options and priorities for accelerated
improve energy
deployment of renewables influence national, regional and global
security.
decision makers.
Increased, reliable and up-to-date knowledge on technology solutions
to enable informed decision making.
Accelerated deployment of geothermal energy worldwide.
National, sub regional and local stakeholders empowered with concrete
advice to design and implement transformational change in the way
energy is produced, distributed and consumed in sub-national and city
settings.
Additional comments:
Component
Comments
REthinking Energy
Power system
design for
renewable energy
integration
Transforming
Energy
Technology status
and outlook
Global Geothermal
Alliance
REpowering cities
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Enabling investment and growth
Objective
Impact
Improving policy Informed decision making, and tools and data to strengthen the
frameworks and business case for renewable energy.
enabling market
Socio-economic information and messages empower policy
conditions for
accelerated
makers and increased public awareness.
deployment of
renewable energy. Empowered decision making on policy options in dynamic
energy markets.
Scale-up of renewable energy investment and improved
understanding of, and access to financial structures and
instruments.
Enhanced project development activities and increased
public and private financing for renewable energy projects in
developing countries.
Additional comments:
Component
Comments
Renewable energy costs
Renewable energy
benefits
Policy options to
accelerate deployment
Financing renewables
Project facilitation
7
Renewable energy access for sustainable livelihoods
Objective
Impact
Improved
Increased deployment of stand-alone and mini-grid renewable
livelihoods
energy solutions.
through access to
renewable energy. Accelerated deployment of renewables-based off-grid and
mini-grid systems to improve access to energy in an affordable,
reliable and sustainable manner.
Additional comments:
Component
Decentralised solutions
for access
Applied decentralised
solutions
Comments
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Regional action agenda
Objective
Impact
Regional
Steady flow of bankable renewables generation and
integration with
transmission projects to attract long term stable investments
increased shares
of renewables to within the Corridor.
meet energy
Integrated power market for renewables in Central America
needs.
benefiting from regional scale economies.
Accelerated renewable power deployment in Southeast Asia
and improved cross-border trade of renewable electricity
aligned with the ongoing development of the ASEAN Power
Grid.
Effective regional frameworks, accelerated assessment and
deployment of renewable energy resources in the Middle East
and North Africa, Southeastern Europe and Central Asia.
Countries equipped with knowledge and expertise to create
and implement an enabling policy framework to accelerate
renewable energy deployment.
Additional comments:
Component
Africa clean energy
corridor
Comments
Central America clean
energy corridor
Emerging clean energy
corridors
Enabling regional action
Country support and
advisory services
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Islands: lighthouses for renewable energy deployment
Objective
Impact
Island energy
Accelerated deployment of renewable energy in SIDS.
systems
Improved knowledge of, and conditions for investment
transformed
in renewable energy applications in islands.
through
renewable energy.
Increased number of bankable renewable energy
technology projects in SIDS.
Additional comments:
Component
Comments
SIDS Lighthouses
Global Renewable
Energy Islands Network
(GREIN).
Enabling projects in
Islands
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Gateway to knowledge on renewable energy
Objective
Impact
Renewable
Reliable, relevant and up-to-date global source of renewable
energy
energy statistics.
knowledge
Stakeholders possess information that facilitates assessment of
accessible to all. renewable energy potential for support policy formulation and
project development.
Accelerated adoption of quality assurance and standards for
renewable energy.
Environmental and resource information and messages
empower policy makers and increased public awareness.
REsource will become the central hub for renewable energy
reports, statistics, or charts as a multilingual tool to enlarge
IRENA’s audience and increase the global awareness on
renewable energy status and trends.
Improved engagement with a wide range of stakeholders and
increased awareness of the renewable energy business case.
Additional comments:
Component
RE Statistics
Comments
The Global Atlas
Quality assurance and
standardisation
Enhancing
environmental and
resource sustainability
Knowledge Hub
Multi-stakeholder
engagement
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