Norways New Initiative on Renewable Energy and Perspectives on Energy Trust Funded Programmes ESMAP

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Norways New Initiative on Renewable Energy and
Perspectives on Energy Trust Funded
ProgrammesESMAP and ASTAE Business
MeetingBerlin 9 March 2007

• Morten Svelle, Policy Director
• Norad

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Background Energy, poverty and development

• More then 1,6 bn without access to modern energy
• 2,4 bn people use traditional bio fuel for
  cooking
• With the current efforts 1,4 bn people will still
  be without access to modern energy in 2030
• Lack of access to affordable and modern energy an
  important cause for diseases, lack of education
  for girls etc.
• Access to energy vital for the MDGs
• Lack of energy infrastructure is one of the main
  hindrances for investments and economic
  development in developing countries
• Sensible energy use is important for local,
  regional and global environment

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Norwegian Energy cooperation as percentage of
total ODA 1980 - 2005
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Norwegian energy cooperation new policies

• Strengthened focus on energy as a prerequisite
  for sustainable economic development
• Focus on environment
• Good governance and anticorruption
• Energy as a tool for regional integration
  contribution to peace and reconciliation
• Cooperation with Norwegian institutions and
  companies
• Increased private investments to the sector
• More emphasis on new renewable energy Norway
  more competitive

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Energy in the Budget for 2007

• 270 mill. NOK for strengthened cooperation within
  petroleum and energy
• Stepping up Oil for Development
• Increased cooperation on renewable energy
• Increased support to investments in renewable
  energy and electrification in Africa and Asia
• Increased technical cooperation capacity
  building
• Increased support to multilateral cooperation on
  energy. UNDP, WB, AfDB
• 350 mill. NOK for environment and sustainable
  development including climatic change and lean
  energy as one out of four priority areas in the
  Action Plan for Environment
• Moderate increase in the GIEK frame for
  developing countrie

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Focal areas of the new energy policy

• Better, more secure and sustainable energy access
• Development of alternative energy sources and
  more effective use of traditional energy sources
• Development of financial models for public
  private partnerships for energy supply
• Strengthening of national institutions, framework
  and infrastructure that promote investments,
  production and trade

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The Action Plan for Environment in Development
Cooperation Cimate Change and Clean Energy

• Support resource mapping, consumer analyses,
  regulations and system planning for renewable
  energy sources
• Support development and use of renewable energy,
  including biomass, wind and solar
• Support development of small and micro hydropower
  
• Support increased energy efficiency
• Support measures that contribute to reduce
  negative health impact from biomass in households
• Support development of multilateral initiatives
  for renewable energy

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Elements of a new Clean Energy Initiative

• Develop further the bilateral cooperation on
  renewable energy with Norway's partner countries
• More emphasis on energy in regional cooperation
  SADC, Nile Basin Initiative (NBI), Mekong (?)
• Norway will coordinate the donor cooperation on
  the energy sector within SADC
• Better coordination of bilateral, regional and
  multilateral energy cooperation
• Establish closer cooperation with multilateral
  organisations on regional and country level
• Cooperation within partnerships and initiatives

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Perspectives on Multilateral Energy Trust Funds
and Partnerships

• Specific advantages and competence
• Complementarity to bilateral cooperation
• Continuation of the current support to UN, WB,
  Regional Banks
• Possible further increase in the cooperation

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Priority Areas for Multilateral Cooperation and
Partnerships

• Energy access Africa focus
• Energy efficiency
• Renewable energy
• Low carbon economy Asia
• Reduction of health impacts related to use of
  biomass energy
• Project development support
• Co-financing with public and private partners

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ESMAP Perspectives

• ESMAP is doing well and money are well spent
• Intellectual support do donors and developing
  partners make effective use of studies and
  analyses?
• Dissemination and usage of the intellectual
  capacity
• The global energy challenges calls for expanded
  analytical work
• Consistency with Norwegian priorities
• Focus on the impact of the partnerships
• Links between the activities and the operations
• Feedback and reporting from the clients
• Balance between implementation and the think
  thank function
• Merging ESSMAP and ASTAE?
• TAG important for ESMAP development