Pacific Centre for Renewable Energy and Energy Efficiency (PCREEE) Start-Up Phase

1. Start-Up Phase of the Pacific Centre for Renewable Energy and Energy Efficiency (PCREEE) Sixth Meeting of the Pacific Advisory Group (PEAG), SPC, NABUA: 16 – 18 November 2015 Mr. Solomone Fifita (SPC) and Mr. Martin Lugmayr (UNIDO)

2. PCREEE Mile-Stones • UNIDO-SPC discussions under the “Strategic Programme for Scaling-Up RE Markets in PICTs” funded by Austria • Part of a wider initiative to establish a global network of regional centre for SIDS in Africa, Caribbean, Pacific and Indian Ocean • MOU between Austria, UNIDO and SIDS DOCK • UNIDO concept presented at the 4th PEAG meeting, 3 to 4 Dec. 2013 • Needs assessment and project document developed by SPC/UNIDO • Validation workshop, 12 to 13 March 2014, in Fiji, Nadi • Consideration by Energy Ministers, 31 March to 04 April 2014 • Network of centres included in the implementation matrix of the SAMOA Pathway – side event organized in September 2014

3. Result of needs assessment The majority are in favour to having such a centre; however, almost 40% mentioned that it would depend on the mandate.

4. PCREEE needs assessment (some findings): • PICTs adopted ambitious RE&EE targets and achieved progress in some areas in relation to other regions • Implementation of targets face continued barriers (e.g. policy, technical, capacities, financial, knowledge, data, market) • Lack of knowledgemanagement, datasharing and documentation • Lack of training and appliedresearchnetworks and qaulityassurance (certification of equipment and training, accredidation) • Highlysubsidizedmarketwithnoeconomies of scale • Low local value creation of many RE&EE projects due import of technology and expertise

5. PCREEE needs assessment (some findings): • Very limited opportunitiesforlocal RE&EE businesses and industry • Low attention and budgetforsomeareas (e.g. transport, cooking, wastetoenergy, gender, rural electrification) • Need for strengthening the fragmented regional support framework • No RE&EE targets in the FAESP framework • Regional opportunity gaps in policy execution, capacity building, knowledge management, investment and business promotion • RE&EE not addressed holistically in most programs/projects • Lack of systematictechnicalsteering and creation of synergies (morecoordinationratherthanleadership) • Lack of sustainability and documentation of RE&EE projectresults • Lack of SIDS-SIDS cooperation on commonissues

6. Recommendations of needs assessment: • Need for such a centre and a more systematic RE&EE approach • Shall have a strong technical mandate and address RE&EE equally • Think-tank and hub for sustainable activities and issues • One-stop shoprespondingtoneets of countries and private sector • Creation of synergiesbetweenprojects and technicalsteering • Fill existing gaps and avoid duplication and competition • Make use of existing national/regional institutions and capacities during implementation • Shall be well integrated in the existing institutional framework • Shall contribute to and operate under the FAESP • To be hosted by one of the CROP agencies or a national institution with regional outreach and comparative avantages • Competetive selection process of host organization

7. Technical Programme of PCREEE: Capacities of the public and private sectors on various RE&EE aspects strengthened and applied (e.g. training and research networks, accreditation and certification) Availability of investment and market data, awareness and advocacy on sustainable energy are strengthened (e.g. RE&EE Observatory, campaigns, RE&EE industry report) 3. Investment and business opportunities for local companies and industry are created and implemented (e.g. investment pipeline and forums, facility to support local businesses and start-ups) Respond to the needs of countries and private sector

8. Overall objective of PCREEE Contribute towards increased access to modern, affordable and reliable energy services, energy security and mitigation of negative externalities of the energy system (e.g. local pollution, GHG emissions) by creating an enabling environment for renewable energy and energy efficiency markets and investments.

9. SIDS-SIDS Cooperation / Global Network of Regional Sustainable Energy Centers UNIDO supports regional organizations and their member states in the creation of regional sustainable energy centers

10. ECREEE PCREEE

11. Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) • Preparatory process in partnership with SIDS DOCK and CARICOM Secretariat • Financial support of the Austrian Development Agency (ADA) • Needs assessment and project document on the design of the centre finalized • Validation workshop, held from 21 to 22 July 2014 in Dominica • CCREEE approved by the Ministerial COTEDs on Energy and Environment in November 2014 and February 2015 • The 36th Regular Meeting of CARICOM Heads of Government, held at Bridgetown, Barbados, 2-4 July 2015, endorsed the creation of CCREEE and confirmed Barbados, as the host country. • Inauguration of the centre took place on 28 October 2015 in Barbados

12. The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) - SIDS DOCK hub for the African SIDS (www.ecreee.org)

13. PCREEE host organization selection process • Competitive host selection process facilitated by PIFS and UNIDO • Bidding criteria and evaluation framework established • PIFs launched the bidding process in November 2014 (circular: 157/14) - submission deadline: 30 January 2015 • One joint submission of CROP members was received - consortia led by SPC, including PPA, SPREP, USP and PIFS • SPC would be the host and consortia partners act as thematic hubs • A hired consultant evaluated the bid with a score of 75.5% of 100%. • Selection panel comprising SIDS DOCK, UNIDO, EU, Palau and Tonga recommended SPC bid for approval and gave directions • Approval by Ministers in September 2015

14. 3 PHASES OF ESTABLISHING A CENTRE Phase 1: Preparatory - completed Phase 2: Start up phase - current Phase 3: First Operational Phase

15. PCREEE host country under the umbrella of SPC • SPC wants to strengthen the country presence in its island member countries. Tonga expressed interest in welcoming SPC and PCREEE to Nuku’alofa. • DG of SPC and PM of Tonga signed a MOU which includes support for the placement of the SPC-hosted Centre in Tonga • DPM wrote to DG of SPC confirming his commitment to support SPC to locate the centre at Nuku’alofa • SPC conducted a meeting of the PEOG in mid-Oct to move the PCREEE establishment forward • Update to partners at PEAG meeting in November • Further discussions needed at all levels and agreement to be signed

16. Raised issues of the host selection panel • Define roles and responsibilities between SPC and thematic hubs through a MOU • Funds should be managed separately, under the control of the Director of the centre; • Impact for countries & private sector to be maximized and measured; • Need for external stakeholders to participate in the recruitment process of staff for the Centre; • Autonomy of the centre to ensure its independence (e.g. sign contracts, recruit staff by using flexible and cost-effective models); • Role of PEAG and PEOG in providing oversight to the centre to be clearly defined and articulated; update of TORs; • Centre to work closely with the newly established regional sustainable energy centres for SIDS in the Caribbean and Africa.

17. PEOG and PEAG Oversight on PCREEE operations: provision of strategic guidance and ensure coherence; monitoring of PCREEE performance; appoint the executive director and external evaluators; PCREEE Executive Board (EB) Technical review and approval of major planning and execution documents (e.g. business plan, work plans & budget, status and other technical documents); review procurements and co-funded projects above a certain level; PCREEE Secretariat Preparation and execution of business plan, annual work plans and budgets; preparation of annual status reports; develop, coordinate, co-fund and execute activities; preparation and execution of tenders and call for proposals; appraisal and contracting of projects; Thematic Hubs (THs) National Focal Institutions (NFIs) National Focal Institutions (NFIs) and Thematic Hubs (HBs) - Participate actively in the identification, appraisal, execution and monitoring of projects and activities of PCREEE; provide data and information on the national RE&EE sector; Target Groups (e.g. policymakers, developers, utilities, SMEs, civil society) Final Beneficiaries in the Pacific

18. PCREEE and its Thematic Hubs (HBs) Civil society Universities and schools Int. Organizations donor partners utilities/IPPs Media Policy makers Banks and investors Sustainable energy industry Regulators Non-energy private sector

19. Draft Composition of the Executive Board of PCREEE Annual EB meetings back to back to PEAG meetings PEOG and PEAG PCREEE Executive Board • (1) from each region (Micronesia, Melanesia Micronesia) • (1) from each SPC, SPREP, USP, PPA and PIF • (1) from SEAPI (coordinating private sector inputs) • (1) from civil society (to be confirmed) • (1) from each core partner (e.g. UNIDO, Austria, SIDS DOCK) • (1) observers (e.g. other partners)

20. Draft Organizational Chart of Secretariat The PCREEE Secretariat will: • employ permanent administrative and technical PCREEE staff • employtemporaryprojectstaff (fundedbyprojectfunds) • International seconded experts • External Consultants forspecificassignments (procurement) Department for Management and Organizational Development (DMOD) Departments of Secretariat Technical Department (TD) Department of Administration & Finance (DAF)

21. Department for Management and Organizational Development (DMOD) Draft Organisational Chart of PCREEE (2016 to 2020) Interim Director (12 months secondment from SPC) SIDS DOCK Coordinator Centres focal points (CCREEE, ECREEE) Centres Expert (UNIDO HQ) Technical Department (TD) Energy Efficiency Private Sector Expert (UNIDO) Temporary project staff, secondments and consultants Renewable Energy Private Sector Expert (UNIDO) Energy Efficiency Expert Tonga's PALS National Coordinator (Jan 2016 - Dec 2017) Capacity Development Officer Tonga's PACTVET Coordinator (Jan 2016 - Dec 2018) Project Manager (seconded by Tonga to work on the GEF-6 and EDF 11 Projects) Based in Tonga Renewable Energy Expert SPC North REP Team leader in Pohnpei) Communication and Information Officer (SPC EDD RIU in Suva) Data Base Officer (SPC EDD Energy) Energy Efficiency Expert (SPC PALS Project Manager) Capacity Development Expert (SPC PACTVET Team) Based in Suva Department of Administration and Finance (DAF) Programme Assistant/Receptionist (12 months secondment from Tonga govt) Programme Assistant (8 months SPC secondment to PCREEE) Finance Clerk (12 months secondment from Tonga govt) Logistic Assistant (12 months secondment from Tonga govt) Head Administration & Finance (from SPC Senior Admin Officer, Suva - 12 months) Based in Tonga Administraton and HR Officer (from SPC HR, Suva - 12 months) Finance Officer (from SPC EDD, Suva - 12 months) Based in Suva

22. Indicative Budget requirementsfor the first operational phase of PCREEE (in EUR) – high impactscenario Sustainability through local resources, broad donor partnerships, mobilized project funding and „fee for service“

23. Indicative cash & in-kind contributions for first operational phase of PCREEE

24. Way forward • Signing of MOU between Consortia Partners • Amendment of TORs of the PEOG and PEAG • Finalisation of project document and submission to UNIDO EB for approval • Signing of funding agreements with donor partners • Internal discussions at SPC,Tonga, consortia, UNIDO, etc • Signing of HQ agreement with the Government of Tonga, if everything Ok • Planning of High-Level Inauguration Ceremony [Aug 2016] • Recruitment and relocation of first staff • Development of first work plan & first meeting of the Board