Overview of APERC Activities
APEC NEW AND RENEWABLE ENERGY TECHNOLOGIES
34th EXPERT GROUP MEETING
26-28 April,2010
Kuala Lumpur, Malaysia
Asia-Pacific Energy Research Centre (APERC)

Outline
1. Role of APERC
2. Key Areas of APERC’s work in 2010-2011 Activities
3. Activities for Energy Efficiency Improvement in APEC economies
4. APEC Cooperative Pathways to Sustainable Energy Future
5. APEC Energy Demand and Supply Outlook 4th Edition:
Renewable Energy
6. APEC Cooperation to promote Low Carbon Energy

APERC’s RoleThe primary objective of APERC is to conduct
researches to foster understandings among APEC
members of regional energy outlook and energy
policy issues.

Key Areas of APERC’s work in 2010-2011• Deepen the understanding of how policies
and programs can contribute to energy
efficiency improvements• APEC Cooperative Pathways to a
Sustainable Energy Future including
Effective Policies to promote Low Carbon
Energy (e.g. Renewables)Key Areas of APERC’s work in 2010-2011

Energy Efficiency Improvement in APEC economies• Analysis of Best/High Performance Energy
Efficiency (EE) Policies in APEC economies usingthe Compendium and PREE recommendations• Study on the energy saving potential in various
sectors and analysis on the next steps for APEC
economies to realise this potential through theCEEDS project

APEC Cooperative Pathways to Sustainable Energy Future• APERC is planning to assess an alternative scenario
focusing on sustainable energy future in the next
APEC Energy Demand and Supply Outlook.

• APERC will analyse effective and efficient policies topromote Low- Carbon Energy (e.g. renewable) inthe APEC region through a Peer Review Mechanism.

Renewable Energy in APEC Economies
Final Energy Demand
Final Energy Demand

NRE use by sectors

3,000

100%
2,591

90%
80%

2,500

70%
60%

1,948

2,000

50%
40%
1,414

1,500

20%
10%

894

1,000

500

30%

501

807

630

567

412

2005

544
173

238

Mtoe
Coal

Oil

Gas

2005

NREElectricity

Heat2030• The Final Energy Demand (FED) is projected to grow at
an average rate of 1.1% annually between 2005 and 2030.
• The share of NRE in the total FED by 2030 is projected toreach 6.6%.

2030
IndustryTransportOther• Industry, Transport and Other (commercial,residential, agriculture , etc) sectors are theusers of FED of NRE.
• The increase of NRE use in Transport sector iscontributed by bio-fuels.

Renewable Energy in APEC Economies
Electricity Generation
1,200

Coal

Oil

Natural Gas

Hydro

NRE

Nuclear

2%

2%

2%

3%

5%

16%

16%

14%

14%

16%

15%

13%

13%

13%

11%

17%

17%

18%

19%

6%

5%

2%

11%

21%
2%

Biomass

Geothermal

WindSolar

2005

2015

2030

1,000
800
600
400
200
TWh

39%

45%

48%

48%

44%

1990

2000

1990
2000
2005
2015
2030
• The share of NRE in electricity generation fuel mix is projected to increase from 2% in 2005 to reach 5% by2030.
• Wind and geothermal are the main contributors for the increase of NRE’s share in the fuel mix .

Renewable Energy in APEC Economies
Primary Energy Supply
3,500
3,000

100%
3,011

90%

2,927

80%
70%

2,500
2,110
2,000
1,500

60%

2,260

50%

1,993

40%
30%
20%

1,268

10%

1,000
500

822

777
497

419

125 191

2005
Electicity & Heat Generation2030
FED• The share of primary energy supply ofCoal
Oil
Gas
Hydro
NRE
Nuclear
NRE for electricity and heat generation
is projected to increase from 15 % in2005 2030
• NRE in the primary energy supply is projected to increase from 497 2005 to 28% by 2030, while that of FED
is projected to decline from 85% to 72%.
Mtoe in 2005 to 777 Mtoe by 2030.
Mtoe• NRE accounts for 8% of the total share of primary energy supply in2030.

Renewable Energy in APEC Economies
Challenges•

Under the “business-as-usual” scenario NRE’s share in energy
sector is still marginal in the APEC region in 2030.

•The NRE growth in APEC energy sector is still impeded bybarriers such as the structure of existing energy market, technicaland regulation issues.

•Some common disadvantages faced by NRE in the APEC region
are subsidy on fossil energy use, lack of information, lack ofhuman capital, immature technologies, grid access and etc.

•The disadvantages make NRE development is
induce additional costs.

expensive andRenewable Energy in APEC Economies
Prospect•Despite the challenges, NRE has strong prospect to emerge as one of
the key energy resources in the APEC region.

•The main impetus is the opportunity arise from the global financial
crisis where APEC economies are focusing NRE as one of the keyeconomic growth areas.

•The pressing need to reduce greenhouse gases emission from thefossil energy use.

•Issues surrounding the energy sector such as security of supply, pricevolatility, etc which in favour of NRE development.

•Renewable Energy in APEC Economies
Option for Policymakers
Policy instruments to promote more vigorous NRE
growth in APEC economies

Regulations

CarbonPrice

SubsidiesAPEC Peer Review on Low-Carbon Energy
Rationale:•The messages from Darwin 2007 EMM8, through Sydney 2007 Leaders’
Declaration and Singapore 2009 Leaders’ Declaration to step up efforts incooperative works of R&D and Deployment of low-carbon energies
including RE, nuclear, CCS and cleaner use of fossil energy to address
climate change and energy security clearly call for urgent responsive

actions to develop low-carbon energy solutions• Building upon progress through Peer Review on Energy Efficiency Policies
and NRE technology-focused activities led by EGNRET , it will be valuable
for APEC to expand the scope of Voluntary APEC Energy Peer Review
Mechanism to cover the policies to promote Low Carbon Policies. It is hightime to start Peer Review on Policies to promote Low-Carbon Energy, withan initial focus on Renewables (i.e. Peer Review on Renewable Energy “PRRE”)
 The design of PRRE is to enable APEC economies to improve theeffectiveness of their policies, goals and action plans for promoting lowcarbon energy.

APEC Peer Review on Low-Carbon Energy
Challenges••••

To explore how government policies can accelerate the development andimplementation of potential low-carbon energy supplies e.g. Renewables
To share experience on RE performance, policies and measures andactions for promoting RE and broadening the network among member
economies
To identify effective policies and best practices for RE promotion toencourage technological innovations and promote large-scalecommercialization
To explore ways that cooperative efforts through APEC could assist
APEC member economies in formulating more effective policies in RE
promotion.

APEC Peer Review on Low-Carbon Energy
Key Areas for Cooperation

Appreciating on-going efforts by EGNRET and BTF, the first attention should be focused on
the policies to enhance utilization of RE in power generation.
Key Areas for Cooperation in PRRE are as follows:

1) Effective and efficient government policies that can encourage entrepreneurial innovation andinvestment in promoting RE
2) Well-designed regulatory framework to promote the development and deployment of RE
3) Effective and efficient policies to overcome non-economic barriers at various stages of RE
development and deployment
4) RE financing& fund (e.g. fiscal incentives such as tax exemptions or investment grants).
5) RE pricing policies (e.g. price-base market instruments / subsidy mechanism such as feed-intariffs, RPS)
6) Analysis on RE Supply Potential and the effective and efficient RE policies to realize suchpotential as well as Cost-Benefit Analysis of REs and their competitiveness to conventionalenergy to develop more effective RE policies
7) RD&D policy for RE development
8) Model of low-carbon communities in urban development plans

APEC Peer Review on Low-Carbon Energy
Approach•Given broader dependencies of RE, Best /High Performance Policies topromote RE depends on the circumstances of each economy, including
regulatory structure, tax system, available energy infrastructure, energy
pricing policies, RE resources, and extent of public vs. private ownership ofthe energy supply system.

•Approach of PRRE should focus upon volunteered economies’ specifiedpolicies.

 PRRE will consider the specific RE policy topic for several economies
at a timeo to identify general principles on effective RE promotion policies and thenext steps for each participating economy to develop tailor-madeeffective policies which would be appropriate in different
circumstances.

APEC Peer Review on Low-Carbon Energy
Way Forward…
Building upon progress through Peer Review on Energy Efficiency Policies andwith high appreciation to current efforts led by EGNRET for promoting NREtechnologies and on-going efforts led by BTF for promoting Biofuels,o A peer review mechanism to encourage APEC economies to set individual
goals and action plans for promoting low-emission power sources should beestablished as soon as possible, i.e.
 Set-up of Peer Review Mechanism on Low-carbon Energy with an initial
focus on Renewable (i.e. Peer Review on Renewable Energy - “PRRE”).
 With first attention on policies to enhance RE utilization in power generationthat can make value-added contribution to Sustainable Low-Carbon APEC .
 With assistance from APEC specialized bodies e.g. relevant expert groups,
task-forces and APERC for a more secure and sustainable energy future inAPEC.

Thank You for your kind attention!

www.ieej.or.jp/aperc