TECHNOLOGY

COOPERATION

AGREEMENT

PILOT

PROJECT

STATUS REPORT

October 1998

Prepared by the National Renewable Energy Laboratory

For

U.S. Agency for International Development

U.S. Environmental Protection Agency

U.S. Department of Energy

Much of this report is excerpted from the 

Technology Cooperation Framework documents written by the 

TCAPP teams in Brazil, China, Kazakhstan, Mexico and the Philippines

Development-Friendly Greenhouse Gas Reduction

NREL/TP-210-25795
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Introduction

The U.S. Government initiated the Technology Cooperation Agreement Pilot Project (TCAPP) in

August 1997 in recognition of the need to establish a mechanism for implementing Article 4.5 of

the Framework Convention on Climate Change.

“The developed country partners...shall take all practicable steps to promote, facilitate

and finance, as appropriate, the transfer of, or access to, environmentally sound

technologies and know-how to other Parties, particularly developing country Parties, to

enable them to implement the provisions of the Convention.”

TCAPP builds support for implementing clean energy technologies by facilitating collaboration

among the participating countries, the United States and other OECD countries, international

donors, and the private sector. The governments of Brazil, China, Kazakhstan, Mexico and the

Philippines are currently participating and helping to shape this initiative. International donors

and the private sector have also been actively engaged in the design and implementation of this

pilot program.

The TCAPP design begins with an emphasis on a country-driven process to identify technology

needs. It’s a voluntary partnership − countries participate because they can direct the program

towards activities that meet their own sustainable development priorities while accelerating the

implementation of clean energy technologies. Private sector participation ensures that activities

are aimed at creating a viable marketplace for these technologies. This is also an attractive

feature to donors, who are trying to leverage their resources with private investment. Donors

have also expressed interest in TCAPP as a framework that can help them coordinate their efforts

on a common set of country priorities. TCAPP has gained recognition as a program that could be

a potential model for technology cooperation under the Framework Convention on Climate

Change (FCCC).

This paper provides an overview of TCAPP, including the methodology, the results to date, and

proposed future activities. It includes a detailed description of the technology cooperation

frameworks completed by each country, the process that produced them and the plans for how

TCAPP will help to implement the directions articulated by the country teams.

Some of the most significant accomplishments of TCAPP thus far include:

• Intergovernmental teams in Brazil, China, Kazakhstan, Mexico, and the Philippines have

prepared climate change technology cooperation frameworks. These frameworks define

priority clean energy technologies for meeting development goals and reducing green house

gas (GHG) emissions and actions necessary to accelerate investment in these technologies.

Senior government officials from these countries have endorsed this work, with active

participation of key in-country stakeholders and project implementers.

• TCAPP has established a network of international energy companies and investment

organizations interested in participating in the TCAPP process to help mobilize private

investment in the country priorities. This network, already numbering over 100 companies

and growing, is helping identify the most promising clean energy investment opportunities in
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the countries and the critical actions that in-country agencies and donor organizations can

take to remove market barriers and facilitate private investment.

• TCAPP has actively engaged key OECD and multilateral donor organizations in program

design over the past year. More than 30 representatives from bilateral and multilateral donor

organizations participated in a recent workshop in Washington on October 9th, 1998 with the

country teams. These donor organizations have highlighted the value of TCAPP as a

mechanism for establishing a common set of country climate change technology priorities,

for engaging the private sector in actions to attract clean energy investment, and for

coordinating donor programs to address country technology and sustainable development

needs.

The TCAPP Approach

TCAPP was initiated in August 1997 in recognition of the need to establish a mechanism for

implementing Article 4.5 of the Framework Convention on Climate Change. It is currently

supported by three U.S. agencies, the Agency for International Development, the Environmental

Protection Agency and the Department of Energy.

The National Renewable Energy Laboratory (NREL) leads the implementation of TCAPP for the

U.S. Government. NREL, together with Sandia National Laboratory, the Business Council for

Sustainable Energy (BCSE) and numerous other cooperators, assist country teams in developing

and implementing technology cooperation frameworks and in engaging private sector

organizations and international donor agencies. Financial support is also provided to the country

teams for their work.

Goals

• Foster private investment in energy technologies that reduce GHG emissions and produce

economic benefits for the country.

• Engage in-country and international donor support for actions to build sustainable markets for

clean energy technologies.

• Establish technology cooperation agreements as an organizing structure for coupling incountry, donor, and private-sector climate change mitigation actions.

Key Principles

A number of key principles have helped shaped the design of TCAPP.

• The selection of technology priorities must be country driven and reflect input from all key

stakeholders in the country

• Technology priorities must contribute both to near-term sustainable development goals and

GHG reduction

• Country and donor efforts will only be effective if they are successful at attracting private

investment

• Coordination of country activities and the actions of multiple donors will be more effective

than unilateral donor actions.
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1. TCAPP is country-driven. In-country teams led by senior government officials and with

active participation of all key government, private sector, and non-government stakeholders

establish the technology priorities. TCAPP provides small amounts of funding for in-country

coordination and technical guidance and review, but is only a minor source of financial

support. In-country organizations participate because they are motivated to pursue the

priorities they set and they believe that TCAPP offers them a chance to realize these

priorities.

2. Country teams select priority technologies based on the contribution of these technologies to

national development goals and their potential for greenhouse gas reduction. Each country

team has established its own set of criteria for selecting priorities. These criteria generally

include consideration of social and economic development goals, local environmental

benefits, potential attractiveness of the technology to private investors, and potential

contribution to greenhouse gas reduction. Countries build on their previous work in

programs such as the Global Environment Facility Enabling Activities and the U.S. Country

Studies Program and Support for National Action Plans as well as their own national

processes. By employing priorities that are already well established, country teams can avoid

using time and resources needlessly reassessing direction.

3. TCAPP is market oriented, focusing on opportunities to attract private investment in country

technology needs. TCAPP encourages the country teams to solicit feedback from in-country

businesses and investors on the best opportunities for clean energy investment and most

critical country and donor actions to support this investment. Through the Business Council

for Sustainable Energy, TCAPP has also established and is continuing to expand a network of

international energy companies and investment organizations to provide similar feedback on

investment opportunities and country and donor actions to promote investment. These

actions include directly facilitating private investment and removal of legal, policy, or

institutional barriers to attracting such investment.

4. TCAPP is designed to encourage actions by the host country while it promotes active

participation and collaboration between the international donor community in response to the

country technology cooperation needs. The U.S. Government has worked with the OECD,

IEA, GEF, World Bank, UNEP, UNDP, and various other OECD countries and other

multilateral donor organizations to design TCAPP so it will be a useful mechanism for donors

to respond in a coordinated way to country technology needs. TCAPP aims to attract donor

support for both the work of the country teams in designing actions to attract clean energy

investment and for implementation of actions to address market barriers and directly facilitate

investment deals. For instance, TCAPP is working with United Nations Environment

Program and the World Business Council for Sustainable Development on a proposal to

implement in-country business capacity building activities in response to the country needs in

this area.

TCAPP Methodology

TCAPP has two basic phases of activities. In the first phase, which the five participating

countries have carried out over the past year, TCAPP country teams have developed technology

cooperation frameworks that define their technology cooperation priorities and actions to attract

investment in these technologies. In the second phase, TCAPP assists the country teams in

attracting in-country, donor, and private investment support for implementing these actions,
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which address market barriers and promote direct private investment. All of these activities

require close collaboration between in-country government agencies, businesses, and NGOs, the

international donor community, and international businesses and investors. This process is

depicted in the figure below.

The TCAPP Process

Actions to Remove Market Barriers

- Country teams design and implement

actions to address market barriers.

- Country teams secure donor support to

assist with barrier removal actions.

Technology Cooperation Frameworks

- Country teams identify priority

clean energy technologies that

will achieve development goals

and reduce GHG emissions.

- Country frameworks define incountry donor and private sector

actions to foster private

investment in these technologies.

Private Investment Programs

- Country teams conduct market

assessment and identify immediate

opportunities for priority technologies.

- Country teams work with international

business network to attract investment

(e.g., investment conferences, business

matchmaking, financing, etc.)

Phase 1 Phase 2

Major Program-Wide Activities in TCAPP’s First Year

Activities were carried out in four major areas in the first year of TCAPP: 1) program design; 2)

development of country technology cooperation frameworks; 3) private sector participation; and

4) international donor participation. Each area is described below.

Program Design

The National Renewable Energy Laboratory and the U.S. Government agencies supporting

TCAPP worked closely with developing and transition country officials, donor representatives,

and international energy businesses and associations to develop an effective design for TCAPP.

This work on program designed occurred through individual consultations with these different

groups, as well as a workshop held at NREL in November, 1997.

NREL initiated work with Brazil, Indonesia, India, Kazakhstan, Mexico, and the Philippines prior

to this workshop. Officials from these countries presented preliminary frameworks to

international donor and private sector representatives at this workshop. This provided a

foundation for discussions between the country and donor officials and private sector

representatives on how the program design could be improved. A total of 40 country, donor, and

private sector representatives participated in this workshop.

The workshop was a unique opportunity for country team representatives and the international

donor and private sector communities to share ideas about attracting private investment. The

attendees expressed strong support for the TCAPP concept. The participants commented on the

need for a rigorous and consultative process of selecting country technology priorities, the value

of focusing on opportunities to attract private investment and thus the need for active business
5

involvement in the TCAPP process, and the key role of TCAPP in facilitating broad donor

participation and coordination.

Preparation of Technology Cooperation Frameworks

The Technology Cooperation Framework is the foundation for TCAPP. It documents the process

the country used to select priorities, the priority technologies resulting from this process, and the

reasons why these priorities were selected. The frameworks describe the barriers to private

investment for these technologies and identify opportunities for coupling actions by domestic

agencies, international donors, and private sector investors to achieve sustained investment in the

technologies. The frameworks are designed to contain the information most crucial to attract

interest from international donors and the private sector.

The five countries have completed several steps in their effort to produce Technology

Cooperation Frameworks.

1. In-country teams were established to guide the preparation of the technology cooperation

frameworks. Teams were usually led by the energy ministry, since this is often the agency

most responsible for implementation in the energy sector. Other ministries and stakeholders

also participated in the teams. TCAPP has been fortunate to have had motivated and

influential individuals act as the lead for the team. In Brazil, for example, the Director of

Energy Development at the Ministry of Mines and Energy, who oversees the government’s

activities in energy efficiency and renewable energy, is the team lead. In most cases, the

team lead is assisted by others who have influence and are interested in the goals of TCAPP.

In the Philippines, the team lead from the Department of Energy has been receiving support

from the Presidential Assistant on Poverty Alleviation.

2. In-country teams developed a short list of possible technology priorities. Countries were

encouraged to utilize established priorities if these priorities were strongly supported. Most

countries have undertaken priority setting exercises before, either for the purpose of energy

planning, for economic development, or for climate change assessments. This approach has

already demonstrated that enabling developing countries to consider the full range of options

and allowing them to apply the criteria that is most meaningful to them has two important

benefits. First, countries are more serious about pursuing their own priorities. And second,

because a country is likely to already be making efforts to pursue these priorities, there are

resources and capacity to build on.

For each priority, teams identified key market barriers and identified possible actions that can

be taken in-country or by donor agencies to eliminate the barrier. Barriers can range from

complex legal issues having to do with ownership, enforcement of contracts, or measurement

of performance, to simpler problems such as a lack of awareness.

3. Teams refined the list of priorities, proposed in-country, donor, and private sector actions and

prepared a comprehensive technology cooperation framework. This refinement occurs

through consultations with technical experts, private companies, and international donors.

More important were the in-country consultations with experts, stakeholders and other

government agencies. When conducted correctly, in-country consultations help attract the

support of the parties who will be involved in the decision of whether the project goes ahead

and the support of those who will implement. The validation process in Brazil involved

conducting a series of meetings to address the different priority areas. The meeting on direct

use of fossil fuels and transportation required a different group of people than the meeting on
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rural renewable energy technologies, for example. The review process for the technology

cooperation framework included senior government officials once a complete draft document

was prepared.

Private Sector Involvement

The primary goal of TCAPP is to foster sustainable commercial markets in clean energy

technologies. This goal is reinforced by having the private sector involved in each step of the

TCAPP process. Representatives of the different types of energy efficiency and renewable

energy businesses attended the workshop in Golden, Colorado, in November of 1997. Their

presence helped the country representatives and the other attendees maintain a market focus.

In March, BCSE , an international association of energy efficiency and renewable energy

businesses, joined TCAPP to facilitate a high degree of private sector engagement in TCAPP.

BCSE’s activities include identifying companies interested in TCAPP countries and their

priorities, soliciting feedback from the businesses on the barriers and the proposed activities

reported by the TCAPP countries, and attracting the interest of these companies in making

investments of their resources in the TCAPP countries.

BCSE has now established a network of over 100 companies and investment organizations

interested in participating in TCAPP to help mobilize private investment in the country priorities.

In September, representatives from 24 companies and four trade associations attended a meeting

on TCAPP hosted by USAID. The administrator of USAID, Brian Atwood, welcomed the group

and explained the interest AID has in collaborating with the private sector as they pursue their 5-

year, $1 billion portfolio of climate change related activities. Many companies expressed interest

in meeting with the TCAPP country teams, which were scheduled to meet in Washington just 2

weeks later. As a result, time was set aside during this scheduled visit of the country teams to

allow for one-on-one meetings with company representatives.

International Donor Agency Participation

A key TCAPP goal is to achieve active engagement of international donors in supporting actions

by countries that will build sustainable markets for their clean energy technology priorities.

Donor involvement in the program began in the design stage, when discussions with donors in the

first half of 1997 inspired the birth of TCAPP. Donors have continued to be involved in a

number of ways. TCAPP has held individual consultations with headquarters and field donor

representatives. Several international donor agencies sent representatives to the November 1997

TCAPP workshop in Golden, Colorado. International donors also attended the TCAPP side event

at COP3 in Kyoto, when representatives from the Brazil and Philippines TCAPP teams made

short presentations along with USAID, NREL, and the International Energy Agency.

Through these interactions, donor organizations identified three attributes of TCAPP of particular

interest

• TCAPP provides a common set of country clean energy investment priorities reflecting input

from key agencies and stakeholders in the country that can help focus donor activities.

• TCAPP provides donor organization with a valuable mechanism for participation of private

sector businesses and investors in clean energy initiatives.

• TCAPP can serve as a mechanism to help focus donor activities on country clean energy and

climate change technology needs.
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In an effort to bring TCAPP countries and international donors together in the most productive

way possible, NREL organized a meeting in Washington on October 9, 1998, in which TCAPP

countries could present their Technology Cooperation Frameworks to international donors. The

five TCAPP countries each sent one or two senior representatives of their country teams. More

than 30 representatives of international donor agencies attended this meeting. A number of other

international donor representatives who did not attend sent in requests for more information on

TCAPP.

The October 9th meeting enabled each of the TCAPP countries to present a summary of its

Technology Cooperation Frameworks. Each country also met individually with donor

representatives to discuss opportunities for collaboration in responding to the country technology

needs. The meeting participants identified six next steps that could be pursued to broaden donor

participation in TCAPP and further enhance the value of TCAPP to the donor community.

• The country teams should work with donor organizations to better define how their specific

needs for support relate to and build on current donor programs.

• TCAPP should explore opportunities to become more of a multilateral program and to secure

support from other donors (beyond the United States) for the overall work of the country

teams under TCAPP, including designing actions to address market barriers and developing

investment programs.

• The U.S. institutions supporting TCAPP should pursue joint development of projects with the

international donor organizations where there is a match of donor interests and country needs

identified in the frameworks.

• TCAPP should continue its efforts to promote donor coordination and should work with the

donor community to develop appropriate mechanisms for ongoing donor coordination in

responding to climate change technology cooperation needs.

• The experiences of TCAPP should be shared at COP-4 to promote further consideration of

TCAPP as one model for implementing Article 4.5 of the FCCC.

• TCAPP should continue its efforts to expand international business and finance organization

participation in efforts to foster private investment in the priority technologies.

Overview of the Technology Cooperation Frameworks

BRAZIL

Brazil’s TCAPP effort began with a scoping meeting in September 1997, in which energy experts

from the Ministry of Mines and Energy and the Research Center for Electrical Energy (CEPEL)

agreed to participate in the program and developed an initial set of technology priorities. CEPEL

took the lead in preparing a Preliminary Technology Cooperation Framework, which two

members of the team presented at the November 1997 workshop in Golden, Colorado. The

interchange at the workshop helped the Brazil team to refine the priorities.

One member of the Brazil team attended COP3 in Kyoto and presented the Brazil priorities at a

TCAPP side event, which attracted attendees from quite a number of delegations, NGOs and

international donors.

A series of TCAPP planning meetings were held in Rio de Janeiro and Brasilia in July 1998. The

TCAPP meetings resulted in the selection and confirmation of five priorities, which are listed
8

below. One priority, electrical energy efficiency, was not discussed in detail, because a large

conference was being planned for October 1998 which was being designed to select priorities for

PROCEL, the large electrical energy efficiency program. The PROCEL representative at the

TCAPP planning meeting agreed to revisit this priority area after the October conference.

TCAPP employed a consultant from the Foundation for Sustainable Development (FBDS) to

assist in setting up the planning meetings and to assist in drafting the Technology Cooperation

Framework. Brazil completed the draft Technology Cooperation Framework in September, 1998.

TCAPP Priorities Agencies Involved in TCAPP Process

• Energy efficiency in Diesel

truck cargo transportation

• Direct use of natural gas

• Renewable energy in rural

electrification

• Fuel cells

• Electrical energy efficiency

• Ministry of Mines and Energy (MME)

• Research Center for Electrical Energy (CEPEL)

• National Agency for Fuels (ANP)

• Nation Program for Fuel and Natural Gas Conservation

(CONPET)

• Petrobras

• University of São Paulo

• Ministry of Foreign Relations

• National Council for Science and Technology

• National Agency for Electric Energy (ANEEL)

• ELETROBRAS

• Northeast Generation and Transmission Utility (CHESF)

• PROCEL

CHINA

TCAPP work in China was initiated by the State Science and Technology Commission (SSTC) in

February, 1998. Under the reorganization of China’s government, the leadership for TCAPP was

shifted in October 1998 to the Office of Climate Change Policy Coordination Committee, State

Development Planning Commission.

The process used for preparation of the technology cooperation framework involved the

following steps.

1. An interagency consultant team, consisting of experts from relevant ministries and

commissions, was established to help select technology priorities and provide guidance for

the development of the options in the framework. This team worked under the direction of

SSTC and was coordinated by the Global Climate Change Institute of Tsinghua University,

which was able to build on a series of previous analytic efforts it had been involved in,

including the GEF/Asian Development Bank’s ALGAS project, the U.S. Country Studies

Program and Support for National Action Plans.

2. Research work on selecting technology priorities was carried out based on the results of

domestic and international cooperative projects on GHG mitigation.

3. A scoping meeting was held in March, 1998. Nineteen technologies were considered.

Four categories of criteria were applied, using an Analytical Hierarchy Process. The

criteria categories were environmental benefits, economic development, conditions for

technology transfer, and investment. Five technologies were selected.
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Technology Priorities Institutions Involved in TCAPP Process

• Higher efficiency power

generation technology,

specifically Circulating

Fluidized Bed

Combustion

• High Efficiency Electric

Motor

• Advanced Industrial

Boilers

• Wind Power Generation

• Coal Bed Methane

Technologies

• State Development Planning Commission

• Ministry of Science and Technology

• Ministry Electric Power

• Ministry Coal Industry

• Energy Research Institute, State Development

Planning Commission

• State Economic and Trade Commission

• Tsinghua University

• National Coordination Group for Climate Change

Strategy (NCGCC)

• Administration Center for China’s Agenda 21

(ACCA21)

• China Energy Conservation Investment Corporation

• Hydropower Planning General Institute

• Coalbed Methane Clearing House

4. Meetings held with Chinese representatives from the World Bank, UNDP, and JICA in

March, 1998 to discuss opportunities for the technology cooperation framework to

contribute to their ongoing programs. Additional research was conducted on market

barriers and some key technology options to overcome these barriers were identified. The

China team presented the TCAPP priorities at the Climate Technology Initiative meeting in

Beijing, China in May, 1998.

5. The draft Technology Cooperation Framework was completed in August, 1998.

KAZAKHSTAN

Kazakhstan began work early in TCAPP. A team of five key personnel from the government

Research Institute for Environment Monitoring and Climate (KazNIIMOSK) under the State

Organization Kazhydromet, the Ministry of Energy, Industry and Trade (Ministry of Energy and

Natural Resources at that time) was established for developing the framework in August, 1997.

This team held a scoping meeting to select priorities in Almaty, on October 3, 1997.

The country team wrote a draft Technology Cooperation Framework and presented it at the

November 1997 workshop in Golden, Colorado. The draft TCF was well received, and was

chosen by TCAPP as the model for the program.

A temporary team of seven key personnel was established in July 1998, including experts from

KazNIIMOSK, the joint-stock company "KEGOC", the energy designing institutes

KazNIPIENERGOPROM and KazSELENERGOPROEKT. This team refined and narrowed the

technology transfer framework developed in 1997 in accordance with the updated Energy

Strategy, the Energy Saving Program, the Governmental Plan for 1990-2010 developed by

Ministry of Ecology and Natural Resources and the Kyoto Protocol. A revised draft Technology

Cooperation Framework was completed in September, 1998.
10

Technology Cooperation Priorities Agencies Involved in TCAPP Process

• Power Plant Carbon Efficiency

Program (Fuel-Switching,

Combined-Cycle Gas, and

Improved Heat Rate)

• Energy-Saving and District-Heating

Improvements

• Wind Power

• Small Hydro

• Ministry of Ecology and Bioresources

(Agency for Hydrometeorology and Natural

Environment Monitoring)

• Ministry of Energy and Natural Resources

(NENR)

• Kazakh Research Institute for Climate and

Environmental Monitoring

• Kazakh Research and Design Institute for

Energy (KazNIPIENERGOPROM)

• Kazakh Research and Design Institute for

Rural Energy (KazSELENERGOPROEKT)

MEXICO

The National Commission for Energy Conservation (CONAE) expressed interest in TCAPP in

the fall of 1997 and sent a representative to the Golden workshop in November. At the

workshop, the representative met with technical experts, donors and private sector organizations

and developed a preliminary matrix of technology priorities, barriers, and proposed actions.

• CONAE conducted an internal follow-up meeting in March 1998, in which it affirmed its

interest in playing a lead role in TCAPP. CONAE has not yet conducted an interagency

consultative process, although it intends to do so in the near future. CONAE has selected

priorities, using four criteria:Activities with known potential to create significant impacts in

terms of fossil fuel consumption, economic impact, and private sector involvement

• Technologies in which Mexico has substantial experience

• Activities in which CONAE already plays a well-defined, lead role

• Activities that stand to gain significantly from multilateral donor support

CONAE selected three programs as priorities. The first two are national programs in the design

stage, while the third is included with the intention of developing it into a large scale pilot

program in Mexico City. The three priorities are:

• Nationwide expansion of efficient lighting in public buildings

• Nationwide expansion of steam generation and distribution systems

• Solar water heating pilot program

CONAE completed a draft Technology Cooperation Framework in early October 1998.

PHILIPPINES

The Philippines expressed interest in TCAPP in October of 1997 and sent a representative to the

workshop in Golden, Colorado in November. The representative, who was from the Energy

Resource Division of the Philippines National Oil Company (PNOC-ERD), developed a

preliminary set of priorities.

A broader consultative effort began in March 1998, when the PNOC hosted a meeting in Manila

to discuss the start-up of a TCAPP effort. The group, which included government agency, NGO
11

and private sector representatives, agreed to proceed with TCAPP, and approved of the

Philippines Department of Energy acting as the lead. The priority areas identified in November

were extended to cover energy efficiency and other concerns of the energy sector.

In August 1998, the Philippine DOE and PNOC-ERD solicited the assistance of the Institute of

Climate, Energy and Environment (ICEE) and the Manila Observatory (MO) in developing

further the Technology Cooperation Framework. The project team reviewed the previous TCAPP

documents and agreed on a common work plan. The work began with a review of past and

present projects on energy efficiency and renewable energy. The team developed selection

criteria and adopted priorities that had already been established in the following national

programs:

• Renewable energy agenda of the Philippine Renewable Energy Network

• Energy Resources for the Alleviation of Poverty (ERAP) Program of DOE Action Plan on

Climate Change (NAP)

• Asia-Least Cost Greenhouse Gas Abatement Project (ALGAS)

On August 21, a second consultation workshop was organized. Eighteen agencies representing

the private, government, NGOs, and academe attended the consultation. The priorities were

discussed − participants affirmed the priority programs as congruent with the identified priorities

of the sector. Subsequent to this meeting, the technology cooperation priorities were refined

based on this discussion. In approving the criteria and the priority programs, the participants

agreed to submit the project concepts that were included in the Technology Cooperation

Framework.

Technology Priorities Agencies Involved in TCAPP Process

Renewable Energy for Rural

• Development

• Photovoltaics

• Wind Energy

 Energy Efficiency and Demand-Side

 Management

• Utility Demand-Side

Management

• Non-Utility Energy Efficiency

• Appliance and Equipment

Standards

• Department of Energy

• Philippine National Oil Company - Energy

Resource Division (PNOC-ERD)

• Philippine Inter-Agency Committee on Climate

Change (IACCC)

• Department of Science and Technology

• Department of Environment and Natural Resources

• Institute of Climate, Energy and Environment

(ICEE)

• Manila Observatory (MO)

• PAGASA

• Philippine Renewable Energy Network

The recent election in the Philippines of President Estrada has elevated the importance of

sustainable rural development. In fact, the Assistant to the President on Poverty Alleviation has

become involved with TCAPP and has discussed the program with President Estrada. The

linkage of TCAPP to this important national priority is mentioned in the Technology Cooperation

Framework, which was completed in early October and was highlighted in the presentation made

by the President’s assistant at the TCAPP Donor Meeting on October 9th.
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OTHER COUNTRIES INTERESTED IN TCAPP

Both India and Indonesia have expressed interest in TCAPP. Both countries sent representatives

to the Golden workshop in November 1997. Indonesia conducted a scoping meeting in the fall of

1997. Unfortunately, political and economic difficulties have forced a suspension in TCAPP

activities in these countries, at least for the time being. South Korea has also expressed interest in

TCAPP and discussions are ongoing between the United States and the Korean government

concerning their potential participation.

The Next Phase of TCAPP

Now that countries have identified the highest priority technologies for advancing clean energy

investment, TCAPP is shifting emphasis to a new phase of activity to attract the private

investment necessary for these technologies. This next phase includes two major thrusts:

• Attracting in-country and donor support to remove investment barriers

• Facilitating direct private investment for immediate market opportunities

Removing the Legal and Institutional Barriers to Market Growth

Removing legal and institutional barriers can be a difficult undertaking. TCAPP’s approach is to

build a substantial and concentrated effort by coupling in-country commitment and activities with

international donor support. The TCAPP strategy begins with the priorities and proposed actions

identified in the Technology Cooperation Framework. It then involves the following.

1. Assisting country teams in designing actions aimed at barrier removal. Country teams

will determine which actions for addressing market barriers defined in their frameworks

merit further development. This selection will be based on consultations with

international and in-country businesses, international donors, government agencies in the

country, and technical experts.

2. Developing Implementation Plans for Domestic Actions to Address the Market Barriers.

Before preparing donor proposals, the country teams will need to first draft

implementation plans that describe the steps that their government would like to follow to

take action to address the market barriers. These implementation plans will define the

specific steps necessary to remove this barrier and the role of donor agencies in

supporting this action, as well as the availability of in-country resources to support the

plan.

3. Preparing Proposals and Securing Donor Support for Selected Actions. TCAPP will

assist country teams in preparing proposals to support these selected actions and in

attempting to secure donor support for implementation. These proposals will build on the

needs for donor support identified in the implementation plans.

Identifying and Capturing Immediate Market Opportunities

Market economies are strong enough in most TCAPP countries that there are areas where legal

and institutional barriers do not stand in the way of energy efficiency and renewable energy

projects. In these areas, TCAPP will capitalize on near term market opportunities by performing

the following tasks.

1. Defining Immediate Business Investment Opportunities. TCAPP will assist the country teams

in reviewing available market information and consult with the international businesses in the
13

private sector network and with in-country businesses and investment organizations to

identify the most promising opportunities for immediate investment in the clean energy

technology priorities of the countries. The information will be compiled in a preliminary

market assessments, which will include initial recommendations on actions for capturing

investment in these targeted areas. The country teams will review the market information and

then select the immediate investment opportunities that will be the focus of further work.

The country teams will also develop initial recommendations on actions to be included in

their investment programs to capture investment for these targeted opportunities.

2. Conduct Investment Planning Workshops. The country teams will hold investment planning

workshops designed to initiate the development of business investment projects and to

identify critical actions for facilitating further business investment in the targeted

opportunities. Participants will include international businesses and investment

organizations, international donors and technical experts, and in-country businesses,

investment organizations, and government officials. TCAPP will establish teams, including

in-country and international private sector representatives, country officials, and finance

organizations to develop these investment plans.

3. Initiate Critical Actions Necessary to Foster Near-Term Business Investments. The

investment workshops will identify key actions (e.g. financing support, business

matchmaking, larger investment conferences, business capacity building, etc.) that the

country teams, with some assistance from the TCAPP cooperators, can undertake to support

near-term business deals. Some of the actions which will be considered include the

following.

• Investment conferences in which potential business partners and financiers convene to put

deals together and where other investment initiatives are discussed

• Disseminating information on the markets and potential projects to companies

• Recruiting private company participation and helping them find business partners

• Training to build local business capacity

• Identification of sources of financing and other sources of support (e.g. “Activities

Implemented Jointly” pilot programs)

• Follow-up support, possibly including assistance in securing financing

Next Steps for TCAPP

Expand Business Network October - November

Prepare Country Workplans and Establish Investment Teams October - November

Business and Donor Comments on Frameworks and Next Steps September – November

Preliminary Market Assessment November - February

Investment Program Planning Workshops February – March, 1999

Design Investment Programs March – June, 1999

Investment Programs begin June - September, 1999

Countries prepare proposals for donor support and secure domestic and

donor funding

January-September, 1999
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Conclusion

 The Technology Cooperation Agreement Pilot Project (TCAPP) has demonstrated the value of

a country driven process for establishing priorities for accelerating clean energy investment with

active private business and international donor participation. The TCAPP process is also gaining

recognition as an effective model for implementing technology cooperation as called for under

Article 4.5 of the FCCC. TCAPP now faces the challenge of attracting the in-country, donor, and

private sector resources necessary to help the countries realize their goals for accelerating

implementation of their priority clean energy technologies. Meeting this challenge will require

active participation of the international donor community and private sector in design and

implementation of actions to address market barriers and mobilize private investment in these

technologies.
15

For more information on TCAPP in the following countries, contact:

Brazil

Jorge H. G. Lima

Head of Electronics Department

Centro De Pesquisas De Energia Eletrica

PO Box 2751 Rio de Janeiro, RJ 20001 970 , Brazil

Tel: 55-21-598-2133

Fax: 55-21-260-1340 or 6211

E: jlima@fund.cepel.br

Brazil

Eugenio Miguel Mancini Scheleder

Director de DNDE

Ministerio de Minas E Energia, Secretaria de Energia

Departamento Nacional de Desenvolvimento Energetico

Bloco U St. 513

Brasilia - DF - CEP 70085-900, Brazil

Tel: (55-61) 321-2032 or 319-5012 Fax: (55 61) 224-1973

Email: mancini@mme.gov.br

China

Ms. Li Liyan

Section Chief

Office to Climate Change Policy Coordination Committee

State Development Planning Commission

No. 38, S. Yuetan Street

Beijing 100824, P.R. China

tel: (8610) 68576760 Fax: (8610) 68576760

Email: emdspc@moon.bjnet.edu.cn

China

Mr. Wei Zhihong

Executing Director

Global Climate Change Institute

Tsinghua University , China

Tel: 86-10-6278-4828

Fax: 86-10-6277-1150

Email: zhihong@mail.inet.tsinghua.edu.cn

China

Mr. Lu Xuedu

Director, Division of Ecology and Environment

Dept. of Science and Technology for Social Development

State Science and Technology Commission

Beijing, China

Tel: 86-10-68514054 Fax: 86-10-68512163

Kazakhstan

Ms. Olga Pilifosova

Kazakh Research Institute for Environment

Monitoring and Climate (KazNIIMOSK)

Almaty, Kazakhstan

Tel: +7 3272 54 25 27

Fax: +7 3272 54 22 85

Email: pilifo@kniimosk.almaty.kz

Kazakhstan

Sergey Katyshev

Head of Strategy Planning Department

KEGOC, Ministry of Energy, Industry and Trade

Shevchenko 162 “kv”

KEGOC, Ministry of Energy, Industry and Trade

Almaty, Kazakhstan

Tel: (++7) 3272682730 Fax: (++7) 3272501198

Email: katyshev@kegoc.kz

Mexico

Ubaldo Inclan Gallardo

Director of Planning and Environment

National Commission for Energy Conservation (CONAE)

Insurgentes Sur 890, 2nd Floor, Col. Del Valle, 03100

MEXICO, D.F.

Tele: (525) 4486000 EXT. 2068

Fax: (525) 4486228

Email: conaepla@rtn.net.mx

Philippines

Donna Gasgonia

Presidential Assistant

Poverty Alleviation, NGO & PO

Rm 1-B, New Executive Bldg., Malacanang

Manila, Philippines

Tel: (632) 734-5924

Fax: (632) 735-6083

Email: fpedzg@info.com.ph

Philippines

Reuben Quejas

Department of Energy

PNPC Complex

Merritt Rd.

Fort Bonifacio

Metro Manila , Philippines

telefax: 632-818-8614

Email: rquejas@doe.gov.ph or ncedoe@doe.gov.ph

For more information on the overall TCAPP effort, contact:

Mr. Jeff Seabright Mr. Paul Schwengels Mr. Christopher Bordeaux

Director, Office of Energy, Environment Program Manager, Climate Policy and Prog. Div. Project Manager, USIJI and USCSP

 and Technology, USAID USEPA USDOE

Phone: 202-712-4370 Fax: 216-3174 Phone: 202-260-1192 Fax: 260-6405 Phone: 202-586-3070 Fax: 586-3485

E-mail: jseabright@usaid.gov E-mail: schwengels.paul@epa.gov E-mail: chrisopher.bordeaux@ee.doe.gov

Mr. Ron Benioff Mr. Pat Keegan Ms. Lisa Jacobson

Energy and Environment Team Leader Climate Change Project Leader Director, International Programs

National Renewable Energy Laboratory National Renewable Energy Laboratory Business Council for Sustainable Energy

Phone: 303-384-7504 Fax: 384-7411 Phone: 303-384-7472 Fax: 384-7419 Phone: 202-785-0507 Fax: 785-0514

E-mail: ron_benioff@nrel.gov E-mail: pat_keegan@nrel.gov E-mail: ljacobson@bcse.org

Produced by the National Renewable Energy Laboratory

A U.S. Department of Energy National Laboratory TP25795 October 1998