SP-RCC donor coordination meeting Renewable energies AFD-JICA-GTZ March 2010 Isabelle Vincent

1. SP-RCC donor coordination meeting Renewable energies AFD-JICA-GTZ March 2010 Isabelle Vincent

2. Agenda • Implications of the power sector market reform on RE development • Up-date on the approval of the RE Master Plan • Implications for the SP-RCC matrix • Coordination between donors’ initiatives • Discussions on specifc on-going initiatives by different donors

3. 2. Up-date on the RE MP : background • RE MP : 4 scenarios • Scenario 1 : economic quantity of grid connected RE + 100% electrification by 2025, solar water heaters, improved cookstoves, biogas • Scenario 2 : scenario 1 but 100% electrification by 2020 • Scenario 3 : scenario 1 + wind power • Scenario 4 : scenario 1 + all identified grid connected renewables • Presentation by MOIT 14/01/2010 : subsidy for bagasse co-gen, geothermal, wind

5. 2. Status of the RE MP • Has not been approved yet by Prime Minister • Concerns about the burden that the subsidy represents for consumers -> financing schemes have to explore other options than the option currently favoured by the MP ie levy on electricity bills. Question : consequences of a portfolio based approach on the financing scheme ? • Proposition of letter to MOIT & MONRE to involve donors into the consultation process

6. 3. Implications for the RE matrix Outcome/Target CY2009 Actions (1st Cycle) CY2010 Actions(2nd Cycle) CY2011 Actions(3rd Cycle) • Achieve 3 % of renewable energy and new energy of primary energy consumption by 2010 (about 5% in 2020 and 11% in 2050) • Formulate Strategy and Master plan for Renewable Energy Development (2015-2025) • Finalize the draft Decree on encouraging and supporting REdevelopment • Conduct a study how to finance additional costs of renewable energy via Renewable Energy Fund • Establish Renewable Energy Fund as stipulated in the RE MP • Develop further legal framework related to RE development • Conduct survey related to the number of communes and households which need electricity and forumulate MP for rural electrification • Develop bio-fuel as analternative to partially replace conventional fossil fuels • Conduct social and environmental impact assessment of bio-diesel development in 2 or 3 provinces

7. 3. Implications for the RE matrix : basis for discussion with MOIT Outcome/Target CY2009 Actions (1st Cycle) CY2010 Actions(2nd Cycle) CY2011 Actions(3rd Cycle) • Achieve 3 % of renewable energy and new energy of primary energy consumption by 2010 (about 5% in 2020 and 11% in 2050) • Formulate Strategy and Master plan for Renewable Energy Development (2015-2025) • Set a target for RE share in electricity generation • Finalize the draft Decree on encouraging and supporting REdev. • Conduct a study how to finance additional costs of RE • [To be discussed according to progress of 2nd cycle action ] • Conduct survey related to the nb of communes and households which need electricity and forumulate MP for rural electrification • Develop bio-fuel as analternative to partially replace conventional fossil fuels • Conduct social and environmental impact assessment of bio-diesel development in 2 or 3 provinces

8. 4. Coordination in the RE sector

11. 5. Up-date on specific initiatives • AFD’s technical assistance within SP-RCC • DFID – WB studies related to low carbon growth • ADB support process to the SEA of PDP 7th

12. Thank you for your participation !