Apec Expert Group On

APEC EXPERT GROUP ON

NEW & RENEWABLE ENERGY TECHNOLOGIES (EGNRET)

30th Meeting

Taipei, Chinese Taipei

14-15 July 2008

Introduction

The 30th meeting of the Expert Group on New and Renewable Energy Technologies (EGNRET) was held on July 14-15, 2008 in Taipei, Chinese Taipei. The meeting was held just prior to the second project workshop for the EGNRET project “APEC 21st Century Renewable Energy Development Initiative (Collaborative IX): Establishment of the Guidelines for the Development of Biodiesel Standards in the APEC Region,” which is being led by Thailand and co-sponsored by Chinese Taipei.

The EGNRET meeting was co-chaired by Dr. Cary Bloyd of the U.S. Department of Energy’s Argonne National Laboratory and Dr. Yie-Zu Hu,Deputy General Director, Energy and Environment Research Laboratories, Industrial Technology Research Institute. Delegates from Canada, Indonesia, Japan, Korea, New Zealand, Chinese Taipei, Thailand, and the United States of America participated in the meeting. A full list of those attending the meeting is presented at the conclusion of the minutes.

Dr. Bloyd welcomed the delegates and opened the meeting. Dr. Huthen introduced Mr. Huey-Ching Yeh, the Director General of the Bureau of Energy (BOE), Ministry of Economic Affairs, who gave an official welcome to the delegates on behalf of Chinese Taipei. In his remarks, Mr. Yeh noted that the promotion of new and renewable energy technologies was true no-regrets policy that addressed both energy security and local as well as global environmental concerns.

The Co-Chairs thanked Mr. Yehfor his welcome and for Chinese Taipei’s support for the EGNRET meeting and associated workshop.

Following the welcome, a final agenda distributedby the Chair was reviewed and accepted. Delegates were informed that following EGRNET 30, they were invited to two day workshop on the Development of Biodiesel Standards in the APEC Region held on July 16-18, 2008 at the save venue.

Overview of New and Renewable Energy in Chinese Taipei

Dr. Hu then introduced Mr. Chun-Li Lee, Section Chief, Bureau of Energy, Ministry of Economic Affairs, who then gave a detailed overview of new and renewable energy use in Chinese Taipei. The presentation consisted of the presentation of the general background of energy use in Chinese Taipei, followed by the policies which promote new and renewable energy, then the status of the development of the renewable energy industry in Chinese Taipei. Mr. Lee noted that 98% of the total energy supply relies on imports in Chinese Taipei. The principal energy consumed in Chinese Taipei is oil. In 2007, the primary energy supply in Chinese Taipei was composed of 52.5 percent oil, 30.3 percent coal, 8.6 percent natural gas, 8.2 percent nuclear and 0.4 percent renewable energy. Of the total final energy consumption in 2007, 50.0 percent was used in the industrial sector, 12.9 percent in the transport sector, 11.8 percent for the commercial sector, 11.0 percent for the residential, and 0.9 percent for the agriculture sector. It was noted that during 1987-2007 the average annual growth rates of energy consumption and GDP were 5.5% and 5.7% respectively, thus economic growth has not yet been decoupled with energy consumption.

In 2007, renewable energy in Chinese Taipei accounted for 7.5 % of power generation. This amount is targeted to double to 15% of power generation or 8450 MW by 20205. The use of solar thermal water heating is also expected to more then double, from 1.66 million square meters in 2007 to 4.09 million square meters in 2025. Significant increases are also expected in wind, solar photovoltaic (PV) and biomass energy. Wind energy will increase from 282 MW in 2007 to 3000 MW in 2025, solar photovoltaics from 2.1 MW to 1000 MW and biomoss from 637 MW to 1400 MW. The first phase of Chinese Taipei’s first offshore wind farm has also been approved by the Executive Yuan, with a target of 980 MW by 2010.

Chinese Taipei also has programs supporting both bio-diesel and bio-ethanol. There was mandatory use of B1 for all sales starting in July 2008 followed by a mandate for B2 sales at all stations in 2010 (about 1000 KL/year). Bio-ethanol is currently being produced from sweet potatoes and imported. An E3 demonstration program has been ongoing in TaipeiCity since September 2007 and 100,000 KL/year is expected to be used by 2011 as E3 becomes available at most gas stations. Eight potential sites in Chinese Taipei’s east coast have an estimated OTEC resource of 3,200 MW.

Chinese Taipei has significant ocean thermal energy conversion (OTEC) resources where water depths can reach 1000 meters just a few kilometers offshore.

Four priority renewable energy industries have been identified for targeted development. These are PV, solar thermal water heating, wind power, and bio-fuels. The total production value of these four industries is expected to more than double in the next three years, from US$1,762 million in 2007 to US$5,016 in 2010. The largest increase is expected in PV, which will increase from US$1,670 million in 2007 to US$4,687 in 2010 and includes the building of a PV based sustainable city.

Program Overview and Recent APEC Activities

The Chair reviewed the agenda, and noted that the usual 2 ½ day agenda had been compressed to two days to enable members to attend the project workshop being hosted by Chinese Taipei at the same venue. The Chair then briefed the participants on the recent activities and developments that occurred after the last meeting of the Expert Group on October 22-23, 2007 in Bangkok, Thailand. Four major activities were discussed. These werethe 4th APEC Biofuels Task Force meeting, EWG 35, proposed linkages with the APEC Small and Medium Enterprise (SME) Working Group, and the 2008 APEC Photovoltaic Conference.

The APEC Biofuels Task Force held their 4th meeting in Bangkok on October 25-26, 2007 following EGNRET 29. The meeting was held jointly with the EGNRET project Workshop on Development of Biodiesel Standards in the APEC Region. At this meeting, the Chair of the Biofuels Task Force reported that a summary Biofuel Task Force report had been tabled at the Eight Energy Ministers meeting (EMM-8) held last July in Australia. According to the progress report that the Chair of the Task Force tabled at the 35th Energy Working Group meeting in March 2008, the Task Force is starting projects to assess biofuel resources on marginal lands, the price elasticity of biofuel resources, and the impacts of biofuels on employment. In addition, the Task Force is proposing projects for 2009 on the potential for production of biofuels from algae, carbon-reducing biofuel resource potential, sustainable biofuel development practices, and an updated assessment of biofuel economics.

The report can is available at:

The 5th APEC Biofuels Task Force meeting has been scheduled for October 7-9 in Golden, Colorado, USA at the National Renewable Energy Laboratory. The meeting will include a workshop a biofuel resource assessment, a tour of NREL's thermochemical and biochemical research facilities, and progress reports on the projects underway.

EWG 35 was held in Iquitos, Peru, March 5-6, 2008. The Chair thanked Dr. David Natusch of New Zealand for representing EGNRET at EWG 35 and the associated Expert Group Chairs meeting. At EWG 35, the Chair of the Energy Efficiency and Renewable Energy Task Force tabled a final report and noted that it had now completed the activities it was established to undertake. At this meeting, the EWG reviewed the status of the Energy Security Initiative and ranked proposed projects for 2009 funding. At EWG 35, all seven EGNRET projects were approved to go forward to the APEC Budget and Management Committee (BMC) for final funding consideration. A total of 29 project proposals were accepted for potential APEC support. The project breakdown by funding source was 10 operational account and 12 APEC support fund projects for a total of US$ 1,356,970, 6 Trade and Investment Facilitation (TILF) account projects for US$ 375,000 and 1 self-funded project.

Engagement with other fora was an important EWG 35 agenda item that relates our Expert Group. The EWG Lead Shepherd stated that Energy Ministers have instructed the EWG to advance collaboration with other international fora to promote broader energy cooperation, enhance emergency preparedness, promote energy efficient transport and alternative transport fuels, improve energy efficiency and develop cleaner and more efficient energy technologies. The Lead Shepherd stated that EWG Guests now included the International Energy Agency, the Renewable Energy and Energy Efficiency Partnership (REEEP) and the Energy Charter Secretariat (ECS). The Lead Shepherd noted that the EWG has been encouraged to collaborate on alternative fuels with the IEA and the Global Bioenergy Partnership and requested that the APEC Biofuels Task Force and EGNRET report to EWG36 on potential areas of cooperation.

At EWG 35, the Lead Shepherd advised members that the current EWG Work Program for 2007-2009 incorporates Ministers and Leaders instructions and provides a comprehensive overview of what is expected from the EWG. It was noted that the work plan will be updated for EWG36

Finally, it was noted that EWG 36 will be held in Metro Manila, Philippines , the last week of November or first week of December 2008

In the area of cooperation with other APEC fora, Dr. Bloyd noted that the EGNRET had been invited to participate in the 15th Small and Medium Enterprise Ministerial Meeting, to be held August 28-29, 2008 in Chiclayo, Peru. The theme of the meeting is “Sustainable Local Development to Foster SME Growth”. In keeping with this theme, Dr. Bloyd has been asked to make a presentation on “New and Renewable Energy Technologies for Small and Medium Enterprises”. In the presentation, he would like to highlight as many examples as possible taken from member economies and he asked member economies to suggest SME’s from their economies which he could profile at the SME Ministerial meeting. Examples will be taken from production, sale, and use of new and renewable energy technologies by in SME.

Chinese Taipei next gave an overview of the 2008 APEC Photovoltaic Conference. This is a self-funded APEC project led by Chinese Taipei which will be held October 7-9. 2008 at the TaipeiWorldTradeCenter in Chinese Taipei. It was noted that APEC Economies area own the biggest capacity in the world for solar cell production. However, the deployment of solar energy as a renewable energy source needs increased effort.

The purpose of the workshop will be to establish an infrastructure for the promotion of renewable energy, especial PV in the APEC region, and to expand PV markets based on strong PV industry in APEC region for cost effective PV power.

The 2008 APEC PV Conference will provide a timely platform and opportunity for all APEC Member Economies to address PV promotion issues, to discuss technology development, and to exchange information and experience of promotion schemes in the region.

All EGNRET members were invited to attend. Additional information can be obtained from the conference website at:

Presentation of recently completed projects

Dr. Bloyd next gave an overview presentation on the four EGNRET projects which were completed in 2008. The projects were:

• APEC 21st Century Renewable Energy Development Initiative (Collaborative VIII) Local Banks Training Program for Financing Energy Efficiency and Renewable Energy Projects: Mexico (EWG 01/2006T)
  
• APEC 21st Century Renewable Energy Development Initiative (Collaborative VI) Evaluation of the Role of Village Power Applications in Response to the Tsunami Recovery Effort: USA (EWG 03/2006A)

• APEC 21st Century Renewable Energy Development Initiative (Collaborative VIII) Information Sharing on Financing Public Sector Energy Efficiency and Renewable Energy Projects: USA (EWG 04/2006)
  
• APEC 21st Century Renewable Energy Development Initiative (Collaborative VI) Renewable Energy Products Database: Paving the Way for Deployment of Renewable Energy: Thailand (EWG 02/2006)

The presentation will be made available on the EGNRET website (

Member Economy Presentations: APEC Economy NRET responses to recent increases in fossil fuel prices

The theme of economy presentations at EGNRET 30 was to provide an overview of member economy new and renewable energy technology related responses to the recent increases in fossil fuel prices. This topic was chose in light of the recent dramatic increase in the world price of crude oil and its related products. Digital copies of the presentations were collected and made available to EGNRET representatives. Following the presentations, the representative from New Zealand noted that we have a unique opportunity to understand the link between prices and the development of new and renewable energy technologies. He suggested that the EGNET should prepare an presentation on the subject for submission to EWG 36. The suggestion was accepted by the EGNERT representatives and the Chair said he would follow-up with New Zealand and other members on the development of such a paper.

New project proposals for funding in 2009

As mentioned earlier, all 7 projects that the EGNRET had submitted to EWG 35 will go forward to the APEC Budget and Management Committee (BMC) for APEC funding support. The projects are:

APEC 21st Century Renewable Energy Development Initiative (Collaborative I): Survey of best practices of building integrated energy efficiency and renewable energy in APEC economies (SF USA lead, $150,000/$100,000 APEC)

APEC 21st Century Renewable Energy Development Initiative (Collaborative VI): Workshop on the use of renewable energy technologies in disaster response Economies (SF USA lead, $75,000/$50,000 APEC)

Addressing grid-interconnection issues in order to maximize the utilization of new and renewable energy sources (OA Japan lead, $75,000/$50,000 APEC)

Potential for Biomass-to-Liquids (BTL) production and trading throughout the APEC region (OA New Zealand lead, $1125000/$75,000)

Carbon footprints associated with New and Renewable Energy production and use in APEC economies (OA New Zealand lead, $138,000/$92,000)

Renewable electricity and electric vehicles - status and potential in APEC economies (OA New Zealand lead, $112,500/$75,000)

Workshop on Opportunities for Marine Energy development in APEC economies (OA New Zealand lead, $75,000/$50,000.)

The Chair made a presentation on the APEC project proposal process. The presentation will be available on the EGNRET website following the meeting. The Chair advised members that full project proposals, including completed Quality Assessment Frameworks (QAFs) are to be sent to the EWG Secretariat by August 25, 2008. APEC Secretariat Project Assessment Panel (PAP) will then complete their assessment of projectproposals and distribute comments to project proponents asnecessary by September 23, 2008. Revised project proposals are then to be sent to the EWG Secretariat by September 29, 2008. The APEC Budget and Management Committee will then meet on October 22-23, 2008 to make their final funding decisions.

The Chair noted that he had received several guidance documents from the EWG Secretariat that he had distributed to members proposing projects, and anyone who did not receive the guidance documents should contact him as soon as possible. Project Overseers were encouraged to contact the Chair if they had any questions about the APEC project proposal process.

EGNRET Project Update

The EGNRET is currently implementing seven projects as described below. Four of the projects are scheduled to be completed at the end of 2008.

APEC 21st Century Renewable Energy Development Initiative (Collaborative IX): Establishment of the Guidelines for the Development of Biodiesel Standards in the APEC Region (EWG 02/2007A)

Substituting fossil fuel with biodiesel can reduce air emissions, increase domestic supplies of renewable fuel and create new markets for agricultural sectors. Biodiesel, also known as renewable diesel fuel, can be produced from various animal fats and vegetable oils. However, the quality of biodiesel produced depends on the natural characteristics of feedstocks.
The EN 14214:2003 and ASTM D 6751:2003 are the European and American biodiesel standards developed andcurrently widely used. The feedstocks for biodiesel production in European countries and USA are completely different from those potentially used in most of the APEC economies. Moreover, the difference in climate may require slightly different biodiesel specifications to fulfill market acceptance. Therefore, the objective of this project is to establish the guidelines for the development of biodiesel standards in the APEC region for enhancing the trade of biodiesel among APEC member economies. This project would also offer the possibility for a sustainable energy source with a neutral effect on greenhouse gas emissions.

The first project workshop was held October 25-26, 2007 in conjunction with EGNRET 29 in Bangkok, Thailand. The second project workshop is being sponsored by Chinese Taipei and will be held July 16-18, 2008 following EGNRET 30. All EGNRET members were invited to attend the workshop. The project is on schedule. This project is being led by Thailand and co-sponsored by Chinese Taipei.

APEC 21st Century Renewable Energy Development Initiative (Collaborative IX):Alternative Transport Fuels Policy Options for APEC Economies (EWG 04/2007A)

The purpose of the project is to provide guidelines for the implementation of successful programs for the introduction of alternative transport fuels that will be both coherent throughout APEC economies and applicable to individual economies. The audience for the project will principally be governments and government agencies.
The work will consist of reviewing both successful and unsuccessful alternative transport fuel programs in the APEC economies and elsewhere. Success factors and failure factors will be thus identified. From this analysis, guidelines for successful projects will be compiled. A resource database will be compiled for economies to refer to.
The project will conclude with a report and a workshop to review that report and to explain the outcome to the APEC economies.

New Zealand reported that the project is on schedule and will be completed by the end of 2008.

APEC 21st Century Renewable Energy Development Initiative (Collaborative I):Workshop on Best Practices in Energy Efficiency and Renewable Energy in Commercial Buildings (EWG 04/2007)

The objective of this project is to provide APEC decision makers with recent advances in the best practices for energy efficiency and renewable energy in buildings. Many APEC economies are experiencing a growth in construction and this will have direct implications in their energy consumption for decades to come. This project will underline opportunities to reduce the consumption of energy in residential, commercial, industrial and public buildings. This project will bring together experts who have been involved in developing financial and technical schemes so that APEC planners and policy makers can benefit from their experiences in learning about opportunities and challenges in the energy consumption of buildings. The topics to be reviewed are expected to include insulation and construction materials, energy efficient design, analysis of positive externalities, financial mechanisms, regulations and construction codes and the application of renewable energy devices such as solar water heaters and others. The project workshop will possibly be held in 2008 along with the second EGNRET meeting for 2008. The project is being led by Mexico.