Progress on APEC Peer Review on Low-Carbon Energy
Supply (PRLCE) and Energy Efficiency (PREE)
37th APEC New and Renewable Energy Technologies Expert Group
Meeting (EGNRET)
22-23 August 2011, Taipei, Chinese Taipei

Kenji Kobayashi, President
Asia-Pacific Energy Research Centre (APERC)PRLCE & PREE for EGNRET - 1 / 28

Outlines
1.

Introduction-2.

Overview of PRLCE-3.

4.

Message from APEC Leaders & Energy Ministers
Purpose of PRLCE & PREE
Possible Scope for PRLCE
Principles/ Criteria of PRLCE
Activities of PRLCE
1st and 2nd PRLCE

Overview of PREE
- Progress of PREE
- Highlights from previous PREE Final Report- Follow up PREE
Conclusion Remarks- Future plans- Participation invitation
PRLCE & PREE for EGNRET - 2 / 28

APEC Peer Review Mechanisms
APEC Energy Ministers’ 2007 Darwin Declaration:“We directed the APEC Energy Working Group (EWG) to develop a
Voluntary Energy Peer Review Mechanism, with an initial focus onprogress toward attaining energy efficiency goals”

APEC Leaders’ 2007 Sydney Declaration:“We agreed on the two specific initiatives: 1) to facilitate and review
progress through voluntary APEC Energy Peer Review Mechanism,with a report back to APEC Leaders; and 2) to work towards
achieving an APEC‐wide goal of a reduction in energy intensity of atleast 25 percent by 2030 (with 2005 as the base year)”
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Peer Review Mechanisms for Low-Carbon Energy Supply

APEC Energy Ministers’ 2010 Fukui Declaration:
Declaration“We commend the Peer Review on Energy Efficiency(PREE) which has been successfully carried out forfour APEC economies and urge additional economies
to participate”.
“We instruct the EWG to explore mechanisms to encourage
economies to set individual goals and action plans for
introducing low‐emission power sources‐ renewables,nuclear and fossil fuels with carbon capture andstorage (CCS)‐ to make our energy supply cleaner. We
will create low‐carbon communities in the region”.
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Summary of PRLCE and PREE
PREE
New Zealand

PREE
Viet NamAPEC Leaders
meeting

2007

PREE
Peru

PREE
Thailand

PREE
Chinese Taipei

20092010

PREE
ChileEMM9Declaration to reduce energyintensity of APEC region byat least 25% by 2030
Introduction of Peer Review
Mechanism

PREE
Philippines

APERC reported
progress on peer review
mechanism

PREE
Indonesia

2011

PREE
Malaysia

PRLCE
Phase 22012
PRLCE
Malaysia

PRLCE
Thailand

PREE
Phase 4Follow
Up PREE
Viet Nam

PRLCE & PREE for EGNRET - 5 / 2928

1.

Introduction-2.

Overview of PRLCE-3.

4.

Message from APEC Leaders & Energy Ministers
Purpose of PRLCE & PREE
Possible Scope for PRLCE
Principles/ Criteria of PRLCE
Activities of PRLCE
1st and 2nd PRLCE

Overview of PREE
- Progress of PREE
- Highlights from previous PREE Final Report- Follow up PREE
Conclusion Remarks- Future plans- Participation invitation
PRLCE & PREE for EGNRET - 6 / 28

Purpose and Main Objectives
Purpose:To assist volunteer APEC economy to promote low‐emission powersources by providing recommendations from APEC peer review experts.

Main Objectives:
Share experiences and knowledge on best practices for efficient andeffective policies to promote low carbon power supplies (such asrenewable energy) in developing APEC economies, and how to adapt
policies and measures which have been successful elsewhere to theunique conditions of each economy;Encourage developing APEC economies to set individual goals on power
supply from low carbon sources (such as renewable energy), and toformulate action plans to achieve the goals;
PRLCE & PREE for EGNRET - 7 / 28

Other Objectives..
 Explore how government can create effective and efficient low‐
carbon/low‐emission energy policies and can accelerate theirimplementations.
 Identify effective policies to encourage technological innovations andpromote large‐scale commercialization.
 Provide recommendations on how implementation of action plans
could be improved with a view to achieving the goals and toovercome impediments in the current plan.
 Explore ways that cooperative efforts among the APEC economies
could assist in achieving these objectives

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Possible Scope for PRLCE(1) Appropriate/effective goal‐setting and action plans on low‐carbon,
low‐emission power sources e. g . renewable energy.
(2) Appropriate policies on feed‐in tariffs / RPS to promote RE.
(3) RE financing (e.g. fiscal incentives such as tax exemptions orinvestment grants).
(4) Well‐designed policies/ regulatory framework to encourage
entrepreneurial innovation in promoting RE.
(5) Efficient policies to overcome non‐economic barriers at various
stages of RE development and deployment.
(6) Effective RD&D policy to promote RE.
(7) Carbon pricing policies(e.g. emission trading / carbon tax)(8) More comprehensive policy design to encourage low‐carbon
communities in APEC Low‐Carbon Model Town Project.
Depend upon condition and circumstance of individual economyPRLCE & PREE for EGNRET - 9 / 28

Principles of PRLCE• Recognize and be responsive to the context for Low-Carbon
Energy Supply in the host economy;• Review the host economy's Low-Carbon Energy Supply policyframework;• Review strategic Low-Carbon Energy Supply programs;• Review the effectiveness of delivery activity strategy;• Review the analytical processes used to evaluate options andmonitor progress; and• Highlight and acknowledge progress• Highlight areas for development and make practical suggestions;• Seek to identify effective policies, best practices and highperformance programs e.g. for RE promotion in volunteer
economy.
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Criteria of PRLCE•••••

Does APEC member economy have individual goals on power supply
from low-emission power sources? Are they measurable and verifiable?
If measurable and verifiable individual goals on power supply from lowemission power sources have been set, is the APEC member economy
envisaging reasonable efforts for exploring the potential for future
improvement in Low-Carbon Energy Supply?
Does APEC member economy have Low-Carbon Energy Supply actionplans? If so, do they contain concrete policies and measures forachieving their objectives?
Does APEC Member economy have a broader suite of regulatory and/or
market-based responses (e.g., domestic emissions trading) which could
encourage Low-Carbon Energy Supply improvement?
Are the action plans being appropriately implemented and backed bysufficient financial and human resources?
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Criteria of PRLCE (cont.)•••••Are there any inconsistencies among policies and measures, for example,
spending a lot of government resources for improving Low-Carbon
Energy Supply while subsidizing energy prices?
What are the roles of the government and the private sector for
pursuing Low-Carbon Energy Supply? What kind of public-private
partnership (or cooperation) is occurring?
Is the government monitoring the effectiveness of its Low-Carbon Energy
Supply policies and measures?
Is the APEC member economy on the right track towards achieving its
own Low-Carbon Energy Supply goals?
If not, what options for implementation are available that are relevant tothe chosen Low-Carbon Energy Supply strategy and that reflect theindividual circumstances of the member economy being reviewed?
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Activities of PRLCE
Activities
1) Invite APEC economy to voluntarily host the Peer Review
2) Define scope of review
3) Review team establishment – set up APEC expert team4) Prepare background information on RE policies of the host economy
5) Review team visit
6) Draft review report with recommendations
Expected Outcomes
1) Discussion on review report and endorsement of the report withrecommendations at EWG meeting2) Publication- APERC website (http://www.ieej.or.jp/aperc) with link to APEC
websiteThe participation by right experts , especially members from APEC expert
groups e.g. EGNRET and EGEEC is the great key of success.
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Process of PRLCE
StageActivity
1
EWG endorses the host economy volunteering for Peer Review
Economy prepares for and submits to APERC pre-briefing information within one
2
monthAPERC PRLCE Manager and economy representative plan Peer Review using
3Peer Review guidelines
4
Peer Review team proposed and contacted

Responsibility
EWG
EconomyEconomy and APERC
Economy and APERC

5Peer Review team confirmed

Economy and APERC

6

Economy plans visit in discussion with APERC
Economy and APERC confirm review team and visit program.
APERC with Review team may submit specific questions / data requirement to hosteconomies.
APERC request for briefing information
Economy provides the answers for the specific questions and information to review
team

Economy and APERC

789

Review visit to economy

10Draft Review Report finalized

1112

Final draft report signed off by economyEconomy provides Draft Peer Review Report to EWG
Economy and EWG Secretariat tables the final draft review report at EWG for its
discussion and approval

13Economy and APERC
Review Team
EconomyReview Team,
Economy and APERC
Review Team andEconomy
EconomyEconomyEconomy and EWG
Secretariat

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Main Roles and Responsibilities of Stakeholders

PRLCE & PREE for EGNRET - 15 / 28

Value for Host Economy & APEC
• Share experiences and knowledge on best practices for efficientand effective policies to promote low carbon power supplies (suchas renewable energy), including how to adapt policies andmeasures/technologies which have been successful elsewhere tothe unique conditions of each economy.
• Gain valuable recommendations on how to improve low carbon
energy policies for host economy.
• Encourage developing APEC economies to set individual goals on
power supply from low carbon energy resources and to formulateaction plans to support the sustainability of APEC Region.
• Contribute to the increasing of power production by low carbon
energy and reduction of CO2 emissions in APEC Region.
PRLCE & PREE for EGNRET - 16 / 28

The First Peer Review in PRLCE Phase 1 - Malaysia
Time: Oct. 31 ~ Nov. 4, 2011
Focus: National renewable energy policy and action planTentative contents for the review•The legal framework to promote RE•The institutional setup to promote RE•Renewable energy resources – potential, goal, and strategy•The renewable energy policy – policy objectives and tools•The renewable energy action plan – implementation
strategy and monitoring/evaluation
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The Second Peer Review in PRLCE Phase 1 - Thailand
Time: Dec. 12-16, 2011 (Tentative)
Focus: Alternative Energy Development Plan (2008 – 2022)
on Solar, Wind , Biomass and Biogas.
Tentative contents for the review:•RE Potential and Target; Policy, Regularity and Institutionalframework.
•RE Measure: Incentives, ESCO Fund, Revolving Fund,adder cost, Investment, etc.
•Infrastructure, Legislation, Accessibility of RE Data, RE
Technology Standards.
•R&D, Demonstration, Dissemination and Public Relation.
•Implementation, Monitoring & Evaluation.
PRLCE & PREE for EGNRET - 18 / 28

1.

Introduction-2.

Overview of PRLCE-3.

4.

Message from APEC Leaders & Energy Ministers
Purpose of PRLCE & PREE
Possible Scope for PRLCE
Principles/ Criteria of PRLCE
Activities of PRLCE
1st and 2nd PRLCE

Overview of PREE
- Progress of PREE
- Highlights from previous PREE Final Report- Follow up PREE
Conclusion Remarks- Future plans- Participation invitation
PRLCE & PREE for EGNRET - 19 / 28

PREE Mechanism
Discussion

Peer
Review

Host economy
APEC PREE
team
Experts from member economies
Experts from International Organization
APERC ResearchersReviewReport
Encouraging a PDCA cycle(plan, do, check and act)

APEC
EWG meeting
Learning from other APEC
member economies’experiences and deepening
the understanding of effective
policy design andimplementation processes

Report on progressfor further improvement ofEnergy Efficiency Policy

Energy Ministers Meeting/Leaders Meeting

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Progress of PREE
 In 2009, the first four PREEs for New Zealand, Chile, Viet Nam and Thailand wereundertaken with reports published on the APERC website (http://www.ieej.or.jp/aperc)
 In 2010, the PREEs for Chinese, Taipei, Peru and Malaysia were undertaken withreports published on the APERC website (http://www.ieej.or.jp/aperc)
 The reports made a number of recommendations that have been welcomed by theparticipating economies, indentifying barriers – financial, technical (e.g. end-use data,experts, standards, monitoring and evaluation, product testing) and political.

New ZealandChineseTaipei

Viet Nam

ChileThailand

Malaysia

Peru for EGNRET - 21 / 28
PRLCE & PREE

Some Highlights from PREE Final Reports
 Overall, the survey found that all 7 economies (NZ, Chile, Viet Nam,Thailand, Chinese Taipei, Peru and Malaysia) have looked into theurgent need to expand their implementation of EE policies as well as
development of incentives to encourage EE investment.
• Energy efficiency and conservation has become one of the importantelement in the energy policy framework;• Both political strong leadership and carefully designed programs to
implement more vigorous energy efficiency improvement measures arerequired to maximize energy saving potential.
• Lacking of a mechanism to monitor and evaluate energy efficiency
programs is one of the major barrier. The problem in this area is mainly
because of the shortage of human capital and insufficient end-use
energy data;
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Some Highlights from PREE Final Reports (cont.)• Financial barrier; Lack of access to capital and difficulty in getting loan
because some EE projects are perceived risky by lenders;• Lack of infrastructure and human resource in some areas such as standard
setting and testing to ensure full implementation of high performance EE
policies;• Energy subsidy which behaves as a disincentive on energy efficiency
improvement; and• Transport sector is a very challenging area for policymakers to implement
energy efficiency programs– although, all economies have realized thenecessity of vehicle fuel economy standards.

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Follow up PREE
In the phase 3 PREE “Follow-up PREE” will start with following objectives• To assist one former PREE host economy in implementing therecommendations by the PREE review teams.
• To fill the gap between the implementation of EE action plans and themonitoring and evaluation of those plans in the APEC economies.
• To establish the analytical tools for evaluating and monitoring theimplementation of host economy's existing energy efficiency action plans.
• To contribute to strengthen APEC economies’ efforts in promoting energy
efficiency improvement that envisaged by APEC leaders
In the first follow-up PREE, Viet Nam will host the workshop on know howtransfer, monitor and evaluation of EE measures through the training
program in February of 2012.
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1.

Introduction-2.

Overview of PRLCE-3.

4.

Message from APEC Leaders & Energy Ministers
Purpose of PRLCE & PREE
Possible Scope for PRLCE
Principles/ Criteria of PRLCE
Activities of PRLCE
1st and 2nd PRLCE

Overview of PREE
- Progress of PREE
- Highlights from previous PREE Final Report- Follow up PREEConclusion Remarks- Future plans- Participation invitation

PRLCE & PREE for EGNRET - 25 / 28

Future Plans
PRLCE Phase 1 and 2•••

The PRLCE Phase 1 will put its initial focus on renewable energy power supply.
Two economies, Malaysia and Thailand, have already volunteered to host
PRLCEs Phase1 with focus on Renewable Energy in the fourth quarter (Nov –Dec) of 2011.
APEC Funding is expected to be available for two additional economies tohost Peer Review on Low-Carbon Energy Supply Phase 2 in 2012.

PREE Phase 3 and 4•••

Two economies, Indonesia and Philippines, have already volunteered to hostPREEs in the fourth quarter of 2011 and first quarter of 2012.
The first follow up PREE will be hosted by Viet Nam in the February, 2012 toimplement the recommendations from PREE.
APEC Funding is expected to be available for additional economies to hostPREE/Follow-up PREE in 2012.
PRLCE & PREE for EGNRET - 26 / 28Participation Invitation
Your Economy is invited to host Future PREE/PRLCE toenable APEC economies to share experiences andknowledge, and learn “high –performance” strategies fromtheir peers by setting goals, formulating action plans, andimproving the effectiveness of current policies in promoting
EE and LCES (e.g. RE) development, as well as providing
useful recommendations for voluntary EE and LCES (e.g.
RE) implementations towards a more secure andsustainable energy future for APEC.”
The participation by right experts , especially members ofAPEC expert groups e.g. EGNRET is
the important key to success.
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Thank you for your kind attention

http://www.ieej.or.jp/aperc/

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