IEA Implementing Agreement Case Experiences Cuernavaca, Mexico, 22 June 2001

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Renewable Energy Unit
IEA Implementing AgreementCase
ExperiencesCuernavaca, Mexico, 22 June 2001
Johan Wide, Administrator johan.wide_at_iea.org
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FT Renewable Energy Report Issue 28, June 2001
RE Tracker Yearly figures 26/05/00-26/05/01
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Acceleration Strategies
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IEA Energy Technology Collaboration (ETC)

• The IEA provides a framework under which experts
  and organisations can come together to work on
  common problems
• Known as Implementing Agreements, IAs
• Has proven highly successful

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Scope of the Programme

• 40 current agreements - over 100 tasks - nearly
  500 participating institutions
• Average 12 countries per Agreement
• US 120-150 m spent each year under the
  collaborative programme
• Non-IEA Member countries can and do participate

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Areas of Collaboration

• Fossil Fuels
• Renewables
• End-Use Technologies
• Fusion Power
• System Analysis
• Information Centres

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Characteristics of Collaboration

• Each Implementing Agreement has its own Executive
  Committee, nominated by the participants
• Individual or groups of IA have a Desk Officer
  at the IEA Secretariat to co-ordinate the IA work
  with the IEA Committees and the IEA Programme of
  Work

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Benefits of InternationalCo-operation

• Enhances market confidence and vision of market
  scale for financial sector.
• Increases efficiency and effectiveness of
  learning investments.
• Increases shared learning on policy frameworks,
  capacity building, etc.
• Improves technical and business infrastructure.

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IEA RE Implementing Agreements
Annual shared IA investments gt 50 mill.
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IEA RE IA Example Outputs

• Bioenergy District heating biofuels short
  rotation forestry
• Geothermal Market development
• Hydropower Industry-based direction and
  financing
• PVPS Strong new networks Rokko Island
• SHC New commercial procurement
• SolarPACES Cost reductions w/industry START
  missions
• Wind Turbine testing evaluation practices -
  harmonised certification

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Market-Pull Instrument Co-operative Technology
Procurement

• Process
• 1. Market analysis
• 2. Pooling of initial buyers group
• 3. Innovative specifications
• 4. Competitive bidding
• 5. Replication

• Benefits
• 1. Demand-driven
• 2. Economic aggregation
• 3. Better technology performance
• 4. Market-based incentives
• 5. Efficient financing

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Relevant Markets for Renewables
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(Draft) Lead Markets for Geothermal Power
Generation
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(Draft) Competitive Electricity PricesGeothermal
vs Conventional Bulk Generation
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Cost (U.S. cents)
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Geothermal best price
Geothermal high range
U.S. Conventional Bulk Generation
European Conventional Bulk Generation
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March 2001 Geothermal Coalition Dialogue 1

• Objectives
• Defining a global market initiative for
  geothermal heat and power plants niche market
  between today and take-off distributed
  generation
• Identified Issues for Lead Markets
• Challenges for for market development are
  largely non-technical
• Upstream risk coverage (exploration risk)
• Missing market players (developers have vanished)

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March 2001 Geothermal Coalition Dialogue 2

• Participants
• Global Environment Facility UNEP
• World Bank Group with International Finance
  Corporation
• Geothermal Implementing Agreement (country
  representatives)
• Private Sector

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Joint areas of strategicco-operation

• 1. Global market inventory
• 2. Leading market dialogs
• 3. Regular participation of Non-Member countries
  in win-win market integration efforts
• 4. Best practice synthesis

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Next Steps

• GIA New draft Task on market development
• NMC incremental activities might be eligible for
  GEF support
• Project feasibility analysis and contingent
  financing on the basis of Annex results
• WB/IFC finance for public/private sector
  projects

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Global Market RE Development2001 Overview
REWP/REU

• Extended policy analysis
• RE green certificates
• RE project criteria

• Overall co-ordination
• Network RE cluster

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About Implementing Agreements Energy
Technology _at_ http//www.iea.org