Cases

Cases related to category 1 tools

Climate Change Operational Framework 2017–2030: Enhanced Actions for Low Greenhouse Gas Emissions and Climate-Resilient Development

The CCOF2030 outlines African Development Bank’s (ADB) climate response over the 2017–2030 period, building on the considerable progress it has achieved so far in the region and differentiating between future interventions according to the circumstances specific to a Developing Member Country.

This framework provides direction for enhancing resilience and supporting climate adaptation and mitigation actions in ADB’s operations and business processes.

Derisking Renewable Energy Investment: Tunisia

 This report examines the selection and cost-effectiveness of public derisking measures to meet Tunisia’s 2030 investment targets and the modelling clearly shows that investing in public derisking measures should in every case be more cost-effective for Tunisia, compared to an alternative of paying higher generation costs.

The Tunisian Solar Plan (TSP) is Tunisia’s official long-term plan for renewable energy. The TSP sets out Tunisia’s ambition to harness its renewable energy resources in order to advance Tunisia’s sustainable development. It includes specific 2030 targets for investment in wind energy, solar photovoltaic and concentrated solar power.

Untapped potential for climate action: Renewable energy in Nationally Determined Contributions

This analysis suggests that while renewable energy targets and policies are indeed critical components of NDCs, there is substantial scope for countries to increase their renewable energy ambitions and that the inclusion of renewable energy components in NDCs can help attract additional investment in the renewable energy sector.

The International Renewable Energy Agency (IRENA) has analyzed NDCs in relation to national energy plans and actual deployment trends. In many cases, NDCs have not kept up with recent, rapid growth in renewables, the report finds. Even countries that lacked targets in their NDCs had ambitious plans for renewables in the energy sector.

Global energy transformation: A roadmap to 2050 (2019 edition)

This comprehensive report finds that ramping up electricity to over half of the global energy mix (up from one-fifth currently) in combination with renewables would reduce the use of fossil fuels, responsible for most greenhouse-gas emissions.

Increased use of renewable energy, combined with intensified electrification, could prove decisive for the world to meet key climate goals by 2050. This study from the International Renewable Energy Agency (IRENA) highlights immediately deployable, cost-effective options for countries to fulfill climate commitments and limit the rise of global temperatures.

Climate Public Private Partnership Programme (CP3)

 In total, CP3 aims to create 2140 MW of clean energy; support 34,000 jobs, and achieve 53 million tonnes of CO2 emissions reduction, over its lifetime to 2026.

The aim of the Climate Public Private Partnership (CP3) programme is to demonstrate to private sector investors that climate friendly investments in developing countries are financially viable.

California – Doubling Down on Energy Efficiency – regional target setting

The Clean Energy and Pollution Reduction Act from 2015 establishes new energy efficiency and renewable electricity targets to support California’s long term climate goal of reducing greenhouse gas emissions by 40 percent by 2030.

The California Energy Commission (CEC) recently announced the Existing Building Energy Efficiency Action Plan to double energy efficiency savings for both electric and natural gas utilities by the year 2030 as required by the law. The CEC plan found that much of the untapped energy efficiency potential to meet those targets could be achieved by improving the energy efficiency of existing buildings. Because buildings account for approximately 40 percent of U.S. energy use, efficiency programs like these make sense.

Renewable Energy Outlook for ASEAN – regional target setting

The nations of Southeast Asia stand at a crossroads in terms of their collective energy future. Amid rapid economic growth, they face a 50% rise in regional energy demand within a decade. This brings challenges in supplying energy affordably, sustainably and securely. The region has set out to make 23% of its primary energy renewable by 2025, compared to 9.4% in 2014.

The International Renewable Energy Agency (IRENA) has worked intensively with the ASEAN Centre for Energy and ASEAN’s ten member states to find ways to accelerate renewable energy deployment in line with the region’s goal. As this report indicates, that goal is achievable. Moreover, increased reliance on renewables would bring lower overall costs, cleaner cities, and a more secure and robust energy supply.

The Lombok Energy Outlook 2030 – Long term integrated energy planning can demonstrate the multiple benefits of going green

The Danish Energy Agency and the National Energy Council of Indonesia chose Lombok as a pilot area to study how the expected increase in electricity demand can be met in a cost-efficient and sustainable way. The Lombok Energy Outlook 2030 shows a promising potential for renewable energy, reduction of local pollution and reduction of energy costs for the population of Lombok. The study in particular focuses on the potential benefits and challenges related to large-scale deployment of variable renewable energy technologies, and shows that reaching a share of almost 60% renewable energy is cost-efficient from a socioeconomic perspective.

Cases related to category 2 tools

Renewable Energy Policies in a Time of Transition

 This report offers policy makers a comprehensive understanding of the options available to support the development of renewables. Beginning with recent deployment trends and the status of policies and targets globally, the report goes on to examine policies for each sector of energy use – heating and cooling, transport and power – and measures for integrating variable renewables into the power sector.

This report, prepared jointly by the International Renewable Energy Agency (IRENA), the International Energy Agency (IEA) and the Renewable Energy Policy Network for the 21st Century (REN21), identifies key barriers and highlights policy options to boost renewable energy deployment.

Energizing Finance: Understanding the Landscape 2018

The report concludes that the effect of the G20 reforms on infrastructure finance has been of a second order relative to factors such as the macro-financial environment, government policy and institutional factors.

This series is an in-depth attempt to capture multiple years of data on investment for the two key areas of energy access: electrification and clean cooking. It focuses on public and private finance commitments in 20 developing countries that together are home to nearly 80% of those living without access to sustainable energy.

Attributes and Framework for Sustainable Infrastructure

The paper sets out the detailed attributes that constitute the elements of sustainable infrastructure that together provide the framework for assessing the sustainability of an infrastructure investment.

The paper then sets out the detailed attributes that constitute the elements of each of four dimensions and that together provide the framework for assessing the sustainability of an infrastructure investment.

China Utility-Based Energy Efficiency Finance Program (CHUEE)

It is estimated that the Energy Efficiency (EE) projects resulted in a reduction of GHG emissions by 19.33 million tons, in addition to 44.2 megawatt hour per year in energy savings.

This Project organized and provided marketing, development and financing services to commercial, industrial, and municipal sector energy users to implement energy efficiency (EE) equipment installations (“sub-projects”), including those using high efficiency natural gas equipment.

Energy Savings Insurance Program Toolkit

The toolkit is designed to support national development banks and other agencies responsible for implementing energy efficiency financing programs.

This toolkit aims to support key implementers including program managers and consultants in creating programs in their own countries. In addition, the toolkit is intended to inform implementers of energy efficiency financing programs interested in following the ESI model in Asia and Africa.

Johnson Control: Building Data Donation

This program launched in April 2019 encourages existing Johnson Controls customers to voluntarily contribute commercial building energy data to support the American Department of Energy’s research efforts in building-to-grid integration and advanced sensing and controls.

Data donated through this initiative will be instrumental to research on modeling how and when energy is used in the U.S. building stock. This will enable the research community to better understand how innovative technologies can make buildings play an active role in making the U.S. electricity system more reliable, affordable and sustainable.

Strong tax incentives in Italy

The Italian Government has created a strong incentive scheme for renovation of buildings via the tax system, which can help significantly reduce the energy requirements for each existing building.

In 2018 the financial law introduced the possibility to sell the total amount of tax credit to a contractor; this means that the taxpayer can use the tax credit as an in-kind payment to the contractor. This opportunity is moving big utilities to invest in this sector, financing energy renovation. Utilities (incl. SNAM, ENEL, ENI, IREN) are planning investments in building energy renovation in the next 4 years (650 m € for the first 3 utilities).

Standard Power Purchase Agreements (PPAs)

A Power Purchase Agreement (PPA) secures the payment stream for a Build-Own Transfer (BOT) or concession project for an independent power plant (IPP). It is between the purchaser “offtaker” (often a state-owned electricity utility) and a privately owned power producer.

PPAs are i.e. used for power projects where the projected revenues of the project would otherwise be uncertain and so some guarantee as to quantities purchased and price paid are required to make the project viable, or where there is a possibility of competition from cheaper or subsidized domestic or international competition (e.g., where a neighboring power plant is producing cheaper power) – the PPA provides some certainty of being protected from such competition.

Lessons in Commercial Property Assessed Clean Energy (PACE) Leadership: The Path from Legislation to Launch

 In the US, the ‘PACE scheme’ can pay for energy efficiency, renewable energy, and water conservation upgrades to homes and buildings, covering up to 100% of the project’s costs.The PACE model is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property through local tax schemes. PACE programs exist for both residential properties (R-PACE) and commercial properties (C-PACE).

The report examines the long list of potential program design options and important decision points in setting up a C-PACE program, tradeoffs for available options, and experiences of stakeholders have gone through (or are going through) the process. The resource draws on interviews with leading market actors and established programs in Texas, Connecticut, California, and many other successful C-PACE programs.

Energy Service Company (ESCO) model – experience from Croatia

Through Energy Performance Contracting (EPC) an external organization (Energy Service Company – ESCO) implements an energy efficiency or renewable energy project, and then uses the stream of income from the energy savings achieved or the renewable energy produced to repay the costs of the project. The approach is based on a performance guarantee given by the ESCO, which transfers the technical risks from the client to the ESCO. Consequently, ESCO remuneration is based on demonstrated performance – the measure of performance being the level of energy savings or producible energy.

The ESCO model is attractive for the public sector as it can help free up public money to be spent on projects with a higher economic return measured in terms of social and environmental benefits. Several cities are already using EPC to renovate municipal buildings and the number of innovative financing schemes to fund locally owned projects is growing.

When the public sector makes use of ESCO contracts it is important to ensure that they are designed to maximize benefits for the public sector representing citizens. Contracts must target deep renovations, ensure aesthetic quality and the use of long lasting materials.

From 2014 to 2016 more than 15,600 single family homes, 2,300 multi-unit buildings, 80 commercial buildings and 262 public buildings benefited from a €220 million energy renovation program in Croatia. Large scale renovation projects were managed in public private partnerships using ESCOs. By 2020, €411 million worth of structural funds will have been invested in renovating the building stock in Croatia.

Cases related to category 3 tools

IRENA-TWI Global Solar Energy Standardization Initiative

Find standardized solar contracts and guidelines aimed at simplifying and streamlining existing best practice.

In June 2016, the International Renewable Energy Agency (IRENA) together with Terrawatt Initiative (TWI) launched the ‘Global Solar Energy Standardization Initiative’ which aims at standardizing contracts to streamline and scale up the global development and financing of solar projects, to contribute to meeting the objectives of the Sustainable Development Goals and the Paris Agreement.

Adapting Market Design to High Shares of Variable Renewable Energy

Building on case studies from advanced markets, the report identifies the policy and regulatory measures needed to accommodate variable and decentralized renewables, while ensuring high standards of efficiency, reliability and environmental stewardship.

The report analyses challenges and solutions, and provides recommendations, on how to adapt electricity market design to high shares of variable renewable energy. It focuses on two aspects of liberalized power systems:

 

  • Wholesale market design
  • Distribution networks and distributed energy resources.

Corporate Sourcing of Renewable Energy: Market and Industry Trends

This report highlights the latest trends and provides recommendations to more fully exploit the potential of corporate sourcing of renewable electricity. The findings indicate scope for companies to source more renewables, and for such efforts to boost overall deployment.

As the first global, comprehensive analysis of corporate sourcing of renewable electricity, this report from the International Renewable Energy Agency (IRENA) highlights the latest trends and provides recommendations to more fully exploit such potential. The analysis builds on data collected from IRENA’s member states, as well as from over 2 400 large corporate entities headquartered in more than 40 countries.

Mexico’s New Energy Era From Framework Fundamentals to Power Sector Focus

This document looks into Mexico’s Energy Reform and how it opened an attractive new market for private investors by allowing their participation in different activities in the oil & gas and electricity sectors.

This report provides a general overview of Mexico’s energy sector as it has emerged from its 2013 Energy Reform. It focuses on the operation of the new electricity market, outlining its main characteristics, results, trends, as well as the participation of private capital that followed the opening and modernization of the sector.

Mexico’s New Energy Era From Framework Fundamentals to Power Sector Focus

This document looks into Mexico’s Energy Reform and how it opened an attractive new market for private investors by allowing their participation in different activities in the oil & gas and electricity sectors.

This report provides a general overview of Mexico’s energy sector as it has emerged from its 2013 Energy Reform. It focuses on the operation of the new electricity market, outlining its main characteristics, results, trends, as well as the participation of private capital that followed the opening and modernization of the sector.

Renewable Energy Prospects for the European Union

For more than two decades, the European Union (EU) has been at the forefront of global renewable energy deployment. The adoption of long-term targets and supporting policy measures has resulted in strong growth in renewable energy deployment across the region, from a 9% share in gross final energy consumption in 2005 to 16.7% in 2015.

The REmap study by the International Renewable Energy Agency (IRENA), prepared in co-operation with the European Commission, identifies cost-effective renewable energy options for all EU Member States, spanning a wide range of sectors and technologies.

Power flexibility knowledge-sharing between Denmark and China

Today, China is responsible for about 30 percent of the global CO2 emissions and the transition to a market-based power market is a vital step in the green transition. Denmark assists, through the Danish Energy Agency’s partnerships programs, with the distribution of the Danish green transition experiences – so far reaching 12 countries, which collectively are responsible for 60 percent of global emissions of greenhouse gases, and potentially represent up to 4 billion energy consumers.

Danish power plants are among the most flexible in the world, assisting the integration of large shares of wind in the Danish power system. Danish experiences with power plant flexibility are shared with the world. The Danish and Chinese experiences were shared at a power plant flexibility event, which took place in Copenhagen on 24 May in connection with the ninth Clean Energy Ministerial (CEM) and Nordic Clean Energy Week.

KAZREF – Zhanakorgan Solar 1 – Auctions Mechanism

The provision of an EBRD loan up to US$ 5 million in KZT and/or US$ equivalent and up to US$2 million from the Green Climate Fund (“GCF”) in favour of HEC KT LLC (the “Borrower”) to support the development, construction and operation of a 10MW solar photovoltaic power plant to be located near Zhanakorgan settlement, Kyzylorda region of southern Kazakhstan.

The operation will support the first solar project developed in Kazakhstan under the newly established auction mechanism. It will also contribute to reducing Kazakhstan’s carbon intensity and address the country’s increasing electricity demand.

The transition impact stems from the fact that the Bank will be supporting the first auctioned project in the country and assisting Kazakhstan in diversifying its coal-dependent power sector and reducing CO2 emissions. The Project will be in line with the Bank’s Green Economy Transition approach (GET).

Cases related to category 4 tools

Sustainable Energy Fund for Africa

The Sustainable Energy Fund for Africa (SEFA) has been crucial in addressing a major market gap for financing of early-stage project preparation and has retained its relevance in a changing market by remaining focused on less well-established renewable energy technologies and riskier and fragile country contexts as well as the off-grid and green mini grid space.

SEFA is a multi-donor trust fund administered by the African Development Bank, to support small- and medium-scale Renewable Energy (RE) and Energy Efficiency (EE) projects in Africa.

Unlocking Renewable Energy Investment: The role of risk mitigation and structured finance

This document identifies the main risks and barriers limiting investment; it also supplies a toolkit for policy makers, public and private investors, and public finance institutions to scale up their investments in renewable energy.

Evaluation of the effects of financial regulatory reforms on infrastructure finance

The evaluation is among the first under the Financial Stability Board’s (FSB) framework for the post-implementation evaluation of the effects of the G20 financial regulatory reforms, and forms part of a broader FSB examination of the effects of reforms on financial intermediation.

Climate Finance Lab

A public-private partnership, the Lab brings together and catalyzes broader government and private sector efforts to scale up climate finance.

The Lab network accelerates well-designed financial instruments that can unlock billions for energy efficiency, renewable energy, sustainable transport, climate smart agriculture, while also reducing private investors’ risks and improving their financial returns.

Financial Innovation Lab

The Financial Innovation LAB is a place to exchange ideas about financing techniques for climate change mitigation and adaptation investments.

LABEEF/ESCO model in Latvia

The Latvian Baltic Energy Efficiency Facility (LABEEF) is a company that was founded in 2016 to facilitate the deep renovation of the Latvian housing sector. LABEEF aims to support Energy Service Companies (ESCOs) that implement renovation measures in multifamily buildings based on energy performance contracting (EPC).EPC describes a financing mechanism in which the receivables consist of the cost savings achieved through greater energy efficiency of buildings. The ESCO finances renovation measures through a commercial bank and makes an EPC contract with the building owners. Once renovation measures are completed and their effectiveness has been monitored and verified, LABEEF forfeits the EPC contract and continues to collect the EPC receivables from the building owners until the renovation investment has refinanced itself.

Through this mechanism, the execution risk stays with the ESCO while the financing risk is transferred to LABEEF. To be able to forfeit the EPC contracts, LABEEF has collected loans from the European Bank for Reconstruction and Development (EBRD).

LABEEF is a market-based instrument which means that, in the long-term; no public money will have to be spent to achieve CO2 emission reductions in this case. The Latvian government provides grants up to 50% of the project cost and LABEEF receives funding from public and private investors.

One-Stop-Shop – Single access point for tendering offshore wind projects in Denmark

The Danish Energy Agency (DEA) is the authority responsible of tendering offshore wind. The concept of one-stop-shop works as a single point of access on issues related to main permits, where the DEA will grant the required permits to establish the wind farm and coordinate with relevant authorities. Along these lines, the one-stop-shop concept handles the largest administrative issues and interests related to the construction of offshore wind farms.

The concept thus ensures a smooth process for project developers; and the DEA can contribute to a better understanding of these projects at the offices of other central, regional and local authorities.

Project on digitalization of electrical networks in Estonia

Estonia’s transmission system operator (TSO), Elering, has launched a collaboration to enable data access and consent management globally. The goal is to ensure all energy data is accessible via a single, secure platform, thus accelerating the energy transition. In 2018, a project on cross-border exchange of data between Lithuania and Estonia was piloted.

Access to consumer and business energy data is necessary for many energy services such as flexibility, efficiency and retail – therefore, data underpins decentralization and decarbonization.