World Bank s Approach to Facilitate Implementa7on of Energy Management Systems

Transcription

1 World Bank s Approach to Facilitate Implementa7on of Energy Management Systems Session 1: Energy management Programs and Suppor5ng Policy Packages Ins5tute for Industrial Produc5vity Interna5onal Workshop on Energy Management System Dezhou, Shandong, China November 19-20, 2012 Gailius J. Draugelis ( Lead Energy Specialist China & Mongolia Sustainable Development Unit, Beijing East Asia and Pacific Region, The World Bank China World Office 2, No.1, Jian Guo Men Wai Ave., Beijing , P.R. China Tel: (Direct) Fax: Cell: E- mail: gdraugelis@worldbank.org Web: Skype Me: gailius.draugelis

2 Outline Overview of Approach to Financing Technical Assistance and Financing of EE Ongoing Support Programs Related to Suppor5ng Energy Management in China Detailed Example: Promo5on of Industrial Energy Efficiency Project 2 2

3 Outline Overview of Approach to Financing Technical Assistance and Financing of EE Ongoing Support Programs Related to Suppor5ng Energy Management in China Detailed Example: Promo5on of Industrial Energy Efficiency Project 3 3

4 Evolu7on of WB Lending, GEF, CDM Support Gas 6% Petroleum & Coal 6% EE 12% RE 5% Power sector developm ent 50% Power Dev; 5% Gas*, 6% Other RE- H; 17% RE; 15% RE- Hydro 27% EE; 56% Porjolio History IBRD, IDA, GEF, CF $8.3 38% EE & RE $3.1 b This Decade IBRD, GEF, CF $1.5 EE & RE $1.3 b *coal bed methane 4

5 World Bank Support Current Business Lines Renewable Energy Energy Efficiency Low Carbon Ci5es (Convergence of RE and EE) New Technologies 5

6 Support PlaVorms Tailored to Tech Maturity, Market Segments, Barriers & Costs Abatement cost 0 Energy Efficiency Renewable Energy New Technologies Abatement poten5al Policy Tools ß GEF, TA Financing Instruments ß IBRD, CDM, GEF Na7onal Level Provincial/Local Levels

7 Outline Overview of Approach to Financing Technical Assistance and Financing of EE Ongoing Support Programs Related to Suppor7ng Energy Management in China Detailed Example: Promo5on of Industrial Energy Efficiency Project 7 7

8 WB Industry EE Support: From Pilots to Accelera7on to Established EE Markets Energy Intensity Reduc5on Poten5al Small share EE Incen5ves, Administra5ve measures Early stage: EE Project financing concepts Acceleration Stage: Clarity in EPC & EE Lending Business models, EE Services and Standards Development Regulatory framework and ins5tu5ons, greater reliance on market, costs reduced, quality malers Consolidated gains Stage: Larger Dynamic Market, Less Barriers, Wide financial offerings, Mainstreamed standards and EE services Balance between regulatory and market based instruments Mature Stage: Markets deliver op5mized EE, EE integrated in sector investments, market- oriented regula5on 1 st & 2 nd Phase 3 rd & 4 th Phase 5 th Phase Time 8

9 World Bank Industry EE Support Phase 3, ongoing Started the National-Level Platform for EE Support 11 th Five Year Plan 3 Loans, 2 Grant China Energy Efficiency Financing (CHEEF) I + GEF CHEEF, 2006/2008 CHEEF II, 2009/2010 CHEEF III, 2010/2011 Objectives National Support Platform Accelerating loans for EE investments to key energy consuming enterprises (now, also ESCOs) Mainstreaming EE lending in the banking sector (Leverage of 1:1+) Strengthening national EE program coordination and bank TA Clean Development Mechanism Project based carbon finance 9 9

10 Five Key Themes or Areas of Support for Provincial- level EE 1. Needs for Both Administra5ve & Market Based Energy Efficiency Promo5on Systems 2. Support for Expanding the Role of the Market in Delivering Energy Efficiency 3. Further Improving Energy Efficiency in Key Energy Consuming Enterprises 4. Market- Based Approaches for Use of Public Energy Efficiency Funds 5. Interna5onal coopera5on & Support Ideas 10

11 Improving EE in Key Energy Consuming Enterprises Ul5mately, key to realizing energy savings in line with cost effec5ve poten5al lies with efforts of enterprises to plan, manage and implement EE measures as a part of their own internal systems If enterprises become more ac5ve, administra5ve burden should be reduced and, possibly, government would then play an important but more indirect role monitoring the process, recoding agreed enterprise specific targets and supervising results 11

12 WB Industrial EE Support Phase 4: ongoing Started the Provincial- Level Support PlaVorm Experience of 11 th FYP, leading to 12 th Five Year Plan The program s objec5ve is to improve quality and sustainability of provincial energy efficiency programs, ini5ally in Shandong, Shanxi and Jiangxi Provinces, through a wide range of World Bank resources and partnerships loans, grants and direct analy5cal/advisory services for technical assistance, ins5tu5onal capacity building, EE investment scale up. So far, 1 loan, 3 grants Provincial Energy Efficiency Scale Up Program, 2009/2011 Shandong Energy Efficiency Project, 2009/2011 Provincial Energy Efficiency Prac77oner s Forum, 2012 Energy Efficiency Promo7on in Industry, 2010/

13 China Provincial Energy Efficiency Scale Up Program Provincial Energy Efficiency Scale Up Program, 2009/2011 GEF $13.38 m, Shanxi, Shandong, Jiangxi, TA & capacity building Mainly, Energy Conserva5on Offices and Supervision Centers Promote EMS in Shandong (current work plan) Thema7c Programs Shandong Shanxi Jiangxi (1) Develop EE service industry ü ü ü (2) Establish an EE monitoring, supervision, and informa5on dissemina5on plajorm Development and revision of training for applica5on of EMS (3) Promote Enterprise Energy Management Systems (EMS) ü Development of EMS case studies Direct technical assistance to demonstra5on enterprises to implement EMS (4) Build capacity for EE program management and supervision in local enterprises and agencies (5) Develop energy pricing and fiscal policies to further incen5vize EE ac5vi5es and investments ü ü ü ü ü (6) Support building EE program ü (7) Strengthen the energy- use sta5s5cs system ü (8) Establish EE appraisal system for large new fixed- assets investment ü ü ü 13 13

14 China Provincial Energy Efficiency Scale Up Program 14 Shandong Energy Efficiency Project, $150 m loan EE Leasing financial leasing to finance EE investments Expected market is in SME sectors Par5cipa5ng companies represent an evolu5on of EMC industry, expanding scope of energy efficiency services and scale of investment EMC à Leasing Company (Rongshihua) Financing Company à EMC (Luxin Energy) or EE investor (Guotai/Xinwen) Common features Common defini5on and evalua5on criteria of energy savings investments Leverage: WB, 50% of each lease value Different pilots Pilot new SuperESCO Business Model (Rongshihua) EMS business model (Guotai/Xinwen Group) Poten5al subprojects from work plans generated from energy management programming 14

15 China Provincial Energy Efficiency Scale Up Program Provincial Energy Efficiency Prac77oner s Forum (Bank executed small grant) Purpose is to develop technical problem solving exchange plajorm between professionals in different provinces Focus is on EE professionals at provincial level, which has implementa5on responsibility to develop and implement EE programs Ini5ally, targets are energy conserva5on offices and supervision centers and involve other stakeholders depending on topic Introduce interna5onal experience, where relevant Focus more on workshop format and promote exchanges Examples, Energy Founda5on Center Alliance for Industrial Energy Efficiency, IIP Best Prac5ce Network Plan to hold workshops connected to CAIEE next year, collect experience and assess best prac5ces for inter- provincial professional networking and problem solving 15 15

16 Outline Overview of Approach to Financing Technical Assistance and Financing of EE Ongoing Support Programs Related to Suppor5ng Energy Management in China Detailed Example: Promo7on of Industrial Energy Efficiency Project 16 16

17 China Provincial Energy Efficiency Scale Up Program Promo7on of Energy Efficiency in Industry, US$4.0 million GEF grant First project with Ministry of Industry and Informa5on Technology Building capacity for nengyuan guanli fuziren (Responsible Energy Managers) 4 training centers: Beijing, Inner Mongolia, Jiangsu, Xian saving measures 17 17

18 China Provincial Energy Efficiency Scale Up Program Promo7on of Energy Efficiency in Industry, US$4.0 million GEF grant (con7nued) Training Approach Basic introductory module to provide general understanding of fundamental concepts, requirements for setng up energy management program and securing top management commitment Advanced Concepts on various technical system approaches to energy efficiency and conserva5on Sector specific and cross cutng technologies, ie steam motor, process hea5ng, compressed air systems, etc. Audit of facili5es, equipment, processes, etc. Establishing energy performance indicators, baseline and benchmarks Recording, monitoring significant energy uses systema5cally Priori5za5on of ac5vi5es for improving energy performance Economic and financial evalua5on of energy saving measures 18 18

19 China Provincial Energy Efficiency Scale Up Program Promo7on of Energy Efficiency in Industry, US$4.0 million GEF grant (con7nued) Demonstra5on projects for energy management programs 2 Phases Phase 1 focus on assess energy management needs, demonstrate implementa5on issues (benefits and challenges), assess strategies of success Select energy intensive industries Recruit 20 enterprises by training centers to voluntarily par5cipate in setng up and implemen5ng enterprise energy management and EE program TCs provide guidance and encourage enterprises to sustain energy management program and implement EE ini5a5ves Final assessment of progress and challenges, possible forum 19 19

20 China Provincial Energy Efficiency Scale Up Program Promo7on of Energy Efficiency in Industry, US$4.0 million GEF grant (con7nued) Phase 2 assess enterprises to establish energy management program framework and procedures for con5nual improvement of energy efficiency and increased compliance with Energy Conserva5on Law TCs provide specialized technical assistance, comprehensive manuals, policies, procedures, ac5on plans, roadmaps for establishing a framework for basic elements for industrial energy management 20 20

21 Conclusion World Bank involved in wide range of ac7vi7es directly and indirectly suppor7ng energy management system implementa7on and capacity building Focus is on policies and programs promo7ng con7nuous improvement by enterprises themselves Networks among EE professionals, enabling efficient communica7ons for problem solving and developing innova7ve solu7ons to common problems, is one of the keys to success Work is not finished, and we are open to new project ideas and sugges7ons on how we can more effec7vely provide support 21 21

22 Thank you! World Bank s Approach to Facilitate Implementa7on of Energy Management Systems Session 1: Energy management Programs and Suppor5ng Policy Packages Ins5tute for Industrial Produc5vity Interna5onal Workshop on Energy Management System Dezhou, Shandong, China November 19-20, 2012 Gailius J. Draugelis ( Lead Energy Specialist China & Mongolia Sustainable Development Unit, Beijing East Asia and Pacific Region, The World Bank China World Office 2, No.1, Jian Guo Men Wai Ave., Beijing , P.R. China Tel: (Direct) Fax: Cell: E- mail: gdraugelis@worldbank.org Web: Skype Me: gailius.draugelis