APEC Project Database

Project Title

APEC 21st Century Renewable Energy Development Initiative (Collaborative VI): Successful Business Models for New and Renewable Energy Technology Implementation in APEC

Project Year

2008

Project Number

EWG 03 2008

Project Session

Not Applicable

Project Type

Standard

Project Status

Completed Project

Project No.

EWG 03 2008

Project Title

APEC 21st Century Renewable Energy Development Initiative (Collaborative VI): Successful Business Models for New and Renewable Energy Technology Implementation in APEC

Project Status

Completed Project

Fund Account

Operational Account

Sub-fund

None

Project Year

2008

Project Session

Not Applicable

APEC Funding

49,500

Co-funding Amount

25,000

Total Project Value

74,500

Sponsoring Forum

Energy Working Group (EWG)

Topics

Energy

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Not Applicable / Other

Other Non-APEC Stakeholders Involved

Not Applicable

Proposing Economy(ies)

New Zealand

Co-Sponsoring Economies

Australia; Japan; Korea; Mexico; Chinese Taipei; Thailand; United States

Expected Start Date

01/01/2008

Expected Completion Date

31/12/2009

Project Proponent Name 1

Andrew Robertson

Job Title 1

Not Applicable

Organization 1

Energy and Communications Branch, Ministry of Economic Development, Wellington, New Zealand.

Telephone 1

+64 4 474,2865

Email 1

andrew.robertson@med.govt.nz

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

Not Applicable

Project Summary

The purpose of the project is to identify those Business Models that have been successful in the introduction and operation of New and Renewable Energy Technologies (NRETs) and to develop Best Practice Principles that will assist developers in establishing commercial arrangements for NRETs that will be applicable to individual APEC economies. The audience for the project will be both the Private and Public Sectors of Developed and Developing APEC Economies.

The work will consist of reviewing both successful and unsuccessful Business Models in the APEC economies and elsewhere. Success and failure factors will be thus identified. From this analysis, Best Practice Principles for successful Business Models will be formulated. A resource database will also be compiled for reference by APEC Economies.

The project will conclude with a report and a workshop to review that report and to explain the outcome to the APEC economies.

Relevance

This project proposal aligns exceedingly well with both EWG and APEC - wide priorities:

a) It directly promotes the development of cost-effective renewable energy technologies that was supported in the Manila Action Plan, 1996, and that called for clean technologies which promote sustainable development,

b) the project will contribute to the EWG Security of Energy Supply and reduced Greenhouse Gas Emissions as called for by APEC Leaders in their Hanoi declaration, November 2006,

c) It promotes both the short-term and long- term aspects of the APEC Energy Security Initiative by supporting the development of renewable energy systems across all time frames,

d) NRETs, generally, have less pollutant emissions than conventional technologies so the project will assist APEC economies in meeting both their Kyoto Protocol, and other environmental commitments.

e) The project supports the EWG’s commitments to the WSSD under its Type II Partnership Initiative “Fostering Regional Energy Cooperation in APEC: Energy for Sustainable Development”.

Background

·          APEC Leaders, in their Hanoi declaration, November 2006, have called for action to increase energy security and reduce Greenhouse Gas Emissions. New and Renewable Energy Technologies generally achieve both of these goals so their increased use is of primary importance at this time,

·          Implementation of New and Renewable Energy Technologies is always difficult due to the initial costs involved, the low availability of finance for frontier projects, the frequent need for successful public/private sector participation and adverse public perception. There is a need, therefore, to identify those Business Models that have been applied successfully in both Developed and Developing Economies,

·          An understanding of the factors that lead to the successful introduction of New and Renewable Energy Technologies will enable APEC economies to establish effective implementation programs, to minimize risk, to overcome the impediments involved and to avoid mistakes which have been made in other countries,

·          Identification of the Business Models that have been applied successfully in both Developed and Developing Economies will greatly promote the early commercialization of New and Renewable Energy Technologies and will be instrumental in driving down the costs of these Technologies.

Objectives

a) To identify Business Models which are successful in achieving the implementation and ongoing operation of New and Renewable Energy Technologies in both the Private and Public sectors of Developed and Developing APEC Economies.

b) To Formulate Best Practice Principles for the Business Models identified.

c) To report on the requirements for establishing commercial arrangements that will be successful in the implementation and ongoing operation of several different New and Renewable Energy Technologies in APEC Economies.

Alignment

Beneficiaries and Outputs

o The initial beneficiaries will be both government and private sector agencies concerned with or involved in the implementation of New and Renewable Energy Technologies e.g. Project developers, Commercial and International Development Banks, Ministries of Energy, Transport and Finance and Energy industry regulators,

o The greatest beneficiaries will be those involved commercially in a successful New and Renewable Energy industry resulting from the application of appropriate Business Models and effective implementation. In short, a stable and commercially viable industry,

o New and Renewable Energy end users will also be beneficiaries in terms of the benefits associated with these fuels and energy forms e.g. economic, environmental, socio-political,

o Additional beneficiaries will be private sector agencies and industry that are likely to be involved in physically implementing programs eg. farmer groups growing crops.

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These will include:

o    Best Practice Principles for the implementation of New and Renewable Energy Technologies.

Benefits: guidance on how both private and public sector developers can successfully implement commercially viable New and Renewable Energy Technologies and the pitfalls to avoid - particularly in relation to putting all the supporting elements of a Business Model in place.

o    A Resource Database.

Benefits: availability of relevant literature; contacts in countries which have successfully implemented New and Renewable Energy projects,

o    A Workshop on implementation.

Benefits: education potential for both Public and Private sector agencies contemplating involvement in the commercialization of New and Renewable Energy Technology; rapid transfer of knowledge to potential beneficiaries; review and feedback on the draft report.

The additional beneficiaries will benefit by having information available on how they need to be involved in project implementation and which implementation activities are likely to impact on them - including an explanation of the need for government agency activities and regulation.

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o    The success of the project is dependent on the provision of information from a variety of sources both within the APEC economies and outside. There are already many existing New and Renewable Energy projects in almost all APEC Economies. Typically, information will be sought from government agencies, Industry Associations, fuel and refueling suppliers, equipment suppliers, investors and end users. Providers of information and sources of information may also be potential beneficiaries of the project. A draft report, or a section thereof, will be circulated for evaluation to the providers of information prior to completion of the project.

o    This project has been conceived by the proponent’s participation in various activities i.e. expert group meetings, workshops, attended by representatives from various agencies. To this extent many of the beneficiaries have already been involved in the project planning. They will be involved in implementation and evaluation as the key providers of existing information and experience and, finally, as reviewers of the project outcomes,

o    The workshop at the completion of the project is intended, primarily, for Private and Public sector developers and government agencies. Feedback from the workshop will be included in the final report.

Dissemination

a. the nature of the target audience;

The principal audience will be government and private sector agencies involved in NRET implementation in APEC economies.

b. the form and content;

The output from the project will be a report containing the guidelines and Best Practice Principles developed to define successful Business Models for implementation of NRET. It will also contain the resource database.

c. format (e.g. hard copies, floppy discs, internet uploading);

Primary - internet downloading. Secondary – hard copy.

d. number of copies for the publication;

100 hard copies

e. a publicity plan for:

i) briefing the general or specialist media about key components of the project;

ii) the promotion of sales or other dissemination of the final product; and

There will be press releases at the start of the project and following the workshop.

It is expected that following the workshop and the release of the report,

there may be requests from APEC economies for additional workshops

in some countries.

Gender

o Steps will be taken to identify and highlight those Business Models that operate at a local level where there is likely to be most opportunity for the involvement of women in the planning, construction and operation of NRET projects. To this end special efforts will be made to ensure that the project outcomes are disseminated to women’s groups that are likely to involved in, or effected by, NRET projects

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o When New and Renewable Energy projects are implemented, new employment opportunities are created; for instance growing of crops, vehicle conversion workshops, new and different refueling stations. New small and medium sized enterprises will be created. Considerable training is needed to ensure that the program is implemented successfully. All of these activities will create opportunities for employment and training of women - several preferentially so.

Work Plan

The project will proceed according to the timeline presented in Figure 1.

The individual activities listed in Figure 1 are described as follows:

1. Mar – Dec 2007 Assemble information on both successful and unsuccessful NRET implementation projects in APEC economies and elsewhere. Sources of information would include Government departments, Private Industry, Universities, NGOs, environmental organizations, multilateral agencies (eg UN, ADB, UNDP), equipment suppliers, vehicle manufacturers and trade associations,

Risks:Lack of cooperation in providing information by the agencies involved
in existing or past NRET projects. In some cases this may be as a result of
inadequate documentation available on those programs

Difficulties with identifying appropriate agencies and sources. Over the term of
the project, this is not expected to be a significant impediment.

2. Mar – Dec 2008 Review published papers on NRET programs and projects and their associated Business Models,

Risks: Consultant underperforms

3. June 2008 – May 2009 Analyse the assembled database to identify both success
and failure factors,

Risks: Consultant underperforms. Insufficient/inadequate information available on Business Models

4. Jan 2008 – Oct 2009 Compile a database of the resources available to assist economies in implementing NRET projects,

Risks: Lack of cooperation in providing information by the agencies involved in
existing or past NRET projects. In some cases this may be as a result of
inadequate documentation available on those programs.

5. Mar 2009 – August 2009 Prepare a draft report on the outcome of the work that will include formulation of Best Practice Principles for Business Models that have proved successful in the implementation of NRET projects.

Risks: No significant risk provided previous steps are completed satisfactorily.

6. Sept 2009 Circulate draft report to a selected group of both Public and Private sector agencies throughout APEC, including agencies that made a substantial contribution of information to the project.

7. Oct 2009 Workshop on the report, collection of additional information and critiques. The workshop will have two aims;

o To provide critical examination and review of the draft report;

o To disseminate information resulting from the project to agencies in economies
that are already involved in alternative NRET programs or which are planning to
do so.

Risks: Poor attendance at workshop

8. Nov 2009 Edit draft report in the light of reviews and additional information.

Risks: Adverse reviews

9. Dec 2009 Submit final report.

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o All APEC economies will be requested to supply information and resource contacts as outlined in the Methodology component 1,2 and 4 above.

o All APEC economies will be invited to participate in the workshop (See Linkages)

Risks

See Work Plan

Monitoring and Evaluation

a) There is already a considerable body of experience in the introduction of Renewable Energy Technologies, such as hydro electricity, in a number of both APEC and non-APEC countries. There is rather less experience in some of the newer technologies such as solar energy. The end-of-project target will be a report that will effectively bring this experience together to identify those Business Models that have proved successful in the implementation of New and Renewable Energy and to formulate Best Practice Principles for these Models. Progress can be assessed throughout the project by the rate and extent to which information about existing and prior New and Renewable Energy implementation projects is being assembled,

b) Currently the key APEC objective is to increase both security of supply and national energy self sufficiency coupled with reduction of Greenhouse Gas emissions. The end-of-project target will be to provide practical guidelines on how to increase both security and self sufficiency through the increased use of New and Renewable Energy. Progress can be assessed by quantifying the potential for penetration of New and Renewable Energy Technologies in each APEC economy via application of those Business Models that have been shown to be successful.

c) Experience gained in the introduction of New and Renewable Energy Technologies is currently widely dispersed and new implementation programs rarely get full benefit from the cumulative knowledge available. This is true not only to commercial matters but also to the technical, institutional, political and public relations aspects of New and Renewable Energy introduction. The end-of-project target will be to formulate the Best Practice Principles and actions needed in forms that can readily be assimilated by project developers, political decision makers, regulators and industry participants. Progress can be assessed by monitoring the extent to which key elements for the successful introduction of New and Renewable Energy Technologies become clearly defined as the database develops.

Linkages

o The APEC Energy Working Group (EWG), project recommended for funding.

o The APEC Energy Business Network (EBN), project noted and endorsed,

o The APEC Expert Group on New and Renewable Energy Technologies (EGNRET),
project proposed for funding,

o The APEC Expert Group on Energy Efficiency & Conservation (EGEEC), project noted.

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o This project will provide a driving force for building the capability of both Public and Private sector developers to successfully implement New and Renewable Energy Technologies. Because proven and known success factors will be recognized and adopted by the appropriate government agencies, the private sector will be encouraged to recognize Best Practice Principles and to apply them actively in the implementation of new projects.

o The project will facilitate the implementation of New and Renewable Energy Technologies which will, in turn, help to increase Energy Security and reduce Greenhouse Gas Emissions throughout the APEC Economies,

o APEC leaders have called for immediate action to increase Energy Security and reduce Greenhouse Gas Emissions in their Hanoi declaration, November 2006. APEC is, therefore a highly appropriate institution to fund this project in response to it’s Leaders’ imperative.

Sustainability

Not Applicable

Direct Labour

Not Applicable

Are there any supporting document attached?

Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
Project Number
Previous Fora
Secretariat Comments
Reprogramming Notes
Consolidated QAF
Endorsement By Fora
PD Sign Off
Batch
Forum Priority
Committee Ranking Category
Committee Priority
PDM Priority
Priority Within Funding Category
Monitoring Report Received
Completion Report Received
PMU Field 1
PMU Field 2
PMU Field 3
On Behalf Of
Proposal Status
Originating Sub-Forum
Approval Status
Attachments

Content Type: Standard Proposal