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IEA Implementing Agreement Case Experiences Cuernavaca, Mexico, 22 June 2001

Renewable Energy Unit. IEA Implementing Agreement Case Experiences Cuernavaca, Mexico, 22 June 2001. Johan Wide, Administrator johan.wide@iea.org. FT Renewable Energy Report Issue 28, June 2001. RE Tracker: Yearly figures 26/05/00-26/05/01. Acceleration Strategies.

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IEA Implementing Agreement Case Experiences Cuernavaca, Mexico, 22 June 2001

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  1. Renewable Energy Unit IEA Implementing AgreementCase ExperiencesCuernavaca, Mexico, 22 June 2001 Johan Wide, Administrator johan.wide@iea.org

  2. FT Renewable Energy ReportIssue 28, June 2001 RE Tracker: Yearly figures 26/05/00-26/05/01

  3. Acceleration Strategies

  4. IEA Energy Technology Collaboration (ETC) • The IEA provides a framework under which experts and organisations can come together to work on common problems • Known as ‘Implementing Agreements’, IAs • Has proven highly successful

  5. Scope of the Programme • 40 current agreements- over 100 tasks - nearly 500 participating institutions • Average 12 countries per Agreement • US$ 120-150 m spent each year under the collaborative programme • Non-IEA Member countries can and do participate

  6. Areas of Collaboration • Fossil Fuels • Renewables • End-Use Technologies • Fusion Power • System Analysis • Information Centres

  7. Characteristics of Collaboration • Each Implementing Agreement has its own Executive Committee, nominated by the participants • Individual or groups of IA have a “Desk Officer” at the IEA Secretariat to co-ordinate the IA work with the IEA Committees and the IEA Programme of Work

  8. Benefits of InternationalCo-operation • Enhances market confidence and vision of market scale for financial sector. • Increases efficiency and effectiveness of learning investments. • Increases shared learning on policy frameworks, capacity building, etc. • Improves technical and business infrastructure.

  9. IEA RE Implementing Agreements Annual shared IA investments: > $50 mill.

  10. IEA RE IA Example Outputs • Bioenergy: District heating biofuels; short rotation forestry • Geothermal: Market development • Hydropower: Industry-based direction and financing • PVPS: Strong new networks; Rokko Island • SHC: New commercial procurement • SolarPACES: Cost reductions w/industry; START missions • Wind: Turbine testing & evaluation practices - harmonised certification

  11. Process: 1. Market analysis 2. Pooling of initial buyers’ group 3. Innovative specifications 4. Competitive bidding 5. Replication Benefits: 1. Demand-driven 2. Economic aggregation 3. Better technology performance 4. Market-based incentives 5. Efficient financing Market-Pull Instrument: Co-operative Technology Procurement

  12. Relevant Markets for Renewables

  13. (Draft) Lead Markets for Geothermal Power Generation

  14. (Draft) Competitive Electricity PricesGeothermal vs Conventional Bulk Generation 14 12 10 8 Cost (U.S. cents) 6 4 2 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Geothermal best price Geothermal high range U.S. Conventional Bulk Generation European Conventional Bulk Generation

  15. March 2001 Geothermal Coalition Dialogue 1 Objectives • Defining a global market initiative for geothermal heat and power plants; niche market between today and take-off: distributed generation Identified Issues for Lead Markets • Challenges for for market development are largely non-technical • Upstream risk coverage (exploration risk) • Missing market players (developers have vanished)

  16. March 2001 Geothermal Coalition Dialogue 2 Participants • Global Environment Facility; UNEP • World Bank Group with International Finance Corporation • Geothermal Implementing Agreement (country representatives) • Private Sector

  17. Joint areas of strategicco-operation 1. Global market inventory 2. Leading market dialogs 3. Regular participation of Non-Member countries in win-win market integration efforts 4. Best practice synthesis

  18. Next Steps • GIA: New draft Task on market development • NMC incremental activities might be eligible for GEF support • Project feasibility analysis and contingent financing on the basis of Annex results • WB/IFC finance for public/private sector projects

  19. Global Market RE Development:2001 Overview • Extended policy analysis • RE green certificates • RE project criteria REWP/REU: • Overall co-ordination • Network RE cluster

  20. About Implementing Agreements: ‘Energy Technology’ @ http://www.iea.org

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