11
ASIA-PACIFIC ECONOMIC COOPERATION
SUMMARY RECORD OF THE
FIFTEENTH ENERGY WORKING GROUP MEETING
3 to 4 March 1998
IXTAPA, MEXICO
INTRODUCTION
The fifteenth meeting of the APEC Energy Working Group was held in Ixtapa, Mexico from 3 to 4 March 1998. The meeting was co-chaired by Mexico and Australia.
Delegates from Australia; Canada; Chile; the People's Republic of China; Hong Kong, China; Japan; the Republic of Korea; Malaysia; Mexico; Papua New Guinea; the Philippines; Singapore; Chinese Taipei; Thailand; and the United States of America participated in the meeting. Representatives from the EWG and APEC Secretariats also attended. Russia, a member-designate, attended as an observer. PECC also participated as an observer. Guests from Colombia and the International Energy Agency (IEA) also attended. APERC was also present.
1. OPENING ADDRESS
Members expressed appreciation for the inauguration ceremony arranged by the Mexican host. Dr Luis Tellez, Mexican Secretary of Energy, made a welcoming address to members during the ceremony.
The Co-Chairman, Mr Tim Mackey, opened the meeting and introduced his Co-Chairman, Dr Jorge Alejambro Chavez, Mexican Undersecretary for Energy. DrChavez noted the importance of the meeting in preparing the way for the meeting of Energy Ministers in Okinawa and outlined the key issues members would consider during the meeting.
2. ROUND TABLE STATEMENTS ON NOTABLE ENERGY DEVELOPMENTS AND ACTIVITIES
Delegations presented brief overviews of the main energy developments that had occurred in relation to their respective economies since the last meeting. In addition, members submitted short written papers on the “Utilisation and Scope for Use of Renewable Energy”, which were tabled at the meeting.
Action Arising/Next Steps
· Members agreed to allow the material prepared by members for this item to be placed on the EWG’s website. Any members who did not wish their papers to appear on the site are to inform the EWG Secretariat by 30 March.
· Members agreed that for future meetings an oral presentation of their written reports is not essential. Members will circulate their reports on notable energy developments in advance of the meeting, so that members can prepare for a discussion on the matters in the papers.
· Each member economy will table a brief written report on “Government Strategies to Improve Energy End-use Efficiency in APEC Member Economies” at EWG 16.
· A decision on the topic of the paper for EWG 17 is to be made at EWG 16.
3. PROGRESS REPORTS FROM EXPERT GROUPS
3.1 ENERGY DATA AND OUTLOOK EXPERT GROUP
Mr Matsui reported on the ninth meeting of the Energy Data and Outlook Group held in Seoul, Republic of Korea on 24 and 25 February 1998.
Mr Matsui said that the Group has agreed to keep the operation of the APEC Energy Data Base and collecting and improving data as a core task. The Group also recommended that a more policy oriented role should be added so as to oversight more effectively the activities of APERC.
Action Arising/Next Steps
· Mr Matsui to circulate to EDOEG members by the end of October 1998 for their consideration a paper on the future role of the Group.
· Members agreed that responsibility for the Coal Flow Seminar and meetings of the Ad Hoc Group of Coal Policy Advisers is to be integrated with the Expert Group on Clean Fossil Energy from 1999.
· Brunei Darussalam has made a tentative proposal to host the next meeting of the Group in February 1999.
3.2 EXPERT GROUP ON CLEAN FOSSIL ENERGY
Dr Sun Chun, the newly appointed Chairman of the Expert Group on Clean Fossil Energy, reported on the activities of the Group. He noted that Dr Lowell Miller, former Chairman of the Group, is to receive a bronze medal from the US Department of Energy for his support for APEC activities. Members welcomed this news and reiterated their appreciation for the efforts of Dr. Miller on behalf of APEC.
Dr Chun reported that the Coal Mine Gas Study was proceeding following some delays in commencing Phase II which were necessary to restructure the task sharing arrangements. Phase II, which in part is supported with APEC funds, is to be completed in 1998. Phase III will be a self funded APEC project.
Action Arising/Next Steps
· The Clean Fossil Energy Expert Group is to hold the 1998 Technical Seminar in conjunction with the meeting of Energy Ministers in Okinawa, and to take responsibility for the Coal Flow Seminar from 1999.
· The Expert Group to encourage greater participation by oil and gas experts to supplement the existing expertise on coal within the Group.
· The project of coal - natural gas competition for electric power will begin shortly. The Request for Proposals will be submitted to the APEC Secretariat in March.
· The Expert Group is to investigate future opportunities for joint projects with other EWG Expert Groups.
3.3 EXPERT GROUP ON ENERGY EFFICIENCY AND CONSERVATION
Mr Rashid Ibrahim presented the report of the Group’s activities. He reported that Terms of Reference for the Energy Efficiency and Conservation Expert Group and its three third level groups had been prepared and agreed by the Expert Group.
The Chairman, on behalf of members, thanked Mr Rashid for his contributions to the activities of the Expert Group. It is proposed New Zealand take over the role of Chair of the Expert Group after its next meeting.
Action Arising/Next Steps
The Expert Group to hold its next meeting in October 1998 in Hawaii.
· Structure of the EE&C Group was discussed under Item 14.
3.4 EXPERT GROUP ON NEW AND RENEWABLE ENERGY TECHNOLOGIES
Mr Chiang, on behalf of the Chair of the Expert Group on New and Renewable Energy Technologies, presented the report on the Group’s activities.
At their 11th meeting in Bali, Indonesia, the Group developed an Implementation Strategy Matrix to address the key issues. Discussion of the Implementation Strategy Matrices prepared by member economies at the 12th meeting held in Chinese Taipei, were followed by the group’s adoption of an Implementation Plan for its ongoing work.
Action Arising/Next Steps
· The next meeting of the group is scheduled on 5-6 October 1998 in Okinawa, Japan.
· Japan advised that the 1997-98 Energy R&D and Technology Transfer Seminar originally scheduled for 15-18 March 1998 in Indonesia has to be postponed and tentatively rescheduled for May 1998.
3.5 EXPERT GROUP ON MINERALS AND ENERGY EXPLORATION AND DEVELOPMENT
Mr. Tomas Astorga presented the report of the Group on its activities.
Mr Astorga reported that the Expert Group had held an Environmental Workshop for Sustainable Mining Development in Tokyo between 27 and 31 October 1997. The Workshop was well attended and resulted in a proposal to establish a GEMEED Environmental Steering Group.
He informed members that a meeting of the APEC GEMEED Database Steering Committee was held on 27 October 1997. The Steering Committee reviewed and endorsed the results of Stage 1, Phase 1 of the Database project. The Expert Group had then met on 31 October 1997 following the Environmental Workshop, and reviewed progress and confirmed reports and recommendations from the Workshop and Database Steering Committee meeting.
Action Arising/Next Steps
· Canada to host the third meeting of the Group in Ottawa in May 1998 with the theme ‘Sustainable Development in Minerals and Metals’.
· The second workshop on environmental co-operation, ECOW 98, is to be held in Chile in October 1998.
· Members to assist GEMEED to obtain relevant internet addresses (URLs) in their economy for linking to the GEMEED database.
· GEMEED to consult with the Expert Group on Clean Fossil Energy in undertaking any future coal related work.
4.1 REPORT FROM THE AD HOC BUSINESS FORUM FOR POWER INFRASTRUCTURE
The Facilitator of the Ad Hoc Business Forum, Ms Hartland, reported to members that the Business Forum had met in Melbourne on 12 November 1997 and had raised three main issues for consideration. The first of these concerning the future role of the Ad Hoc Business Forum is discussed under Item 12.
The Business Forum had put forward a number of proposals which could be usefully advanced by the EWG. These included: Alternative approaches for electricity restructuring and privatisation; gas industry development; Best practice models for electricity sector restructuring; and Business sector investment facilitation in electricity transmission and distribution networks.
Members noted that these projects were consistent with the EWG’s Action Program and that in particular the natural gas project could be incorporated within the natural gas initiative. Members agreed to take decisions on these issues after discussions on enhancing business sector involvement in the EWG and in the context of developing the EWG’s future work program.
Action Arising/Next Steps
· The EWG Secretariat to investigate the inclusion on the EWG website of information on power infrastructure procurement tender opportunities in APEC member economies.
· Consideration of future projects suggested by the Ad Hoc Business Forum and the future role of the Forum to be considered after decisions are taken under Agenda Item 12 and in the context of Agenda items 10 and 15.
4.2 REPORT FROM THE ELECTRICITY REGULATORS FORUM
Members received a report that the Electricity Regulators Forum had last met in Melbourne, Australia, on 10 to 11 November 1997. Attendance by members of the Ad Hoc Business Forum had enhanced the synergy between the two Groups.
The structure of the Group and its future work program are discussed under Agenda Item 12.
Action Arising/Next Steps
· The next meeting of the Electricity Regulators Forum is to be held in May in Calgary Canada in conjunction with the Environmentally Sound Infrastructure Workshop and the Natural Gas Infrastructure workshop.
· Members requested the Forum to assist in gathering information on members’ regulatory regimes for the two workshops.
· Member economy submissions on ‘Alternative ESI Structures: Implications for Investment’ to be posted to the EWG website.
· Members invited to contribute to a ‘List of Contacts’ on electricity sector issues on the EWG’s website.
5.1 REPORT OF THE INTERNATIONAL ENERGY BUSINESS SYMPOSIUM, EDMONTON, AUGUST 1997
In considering the Report of the International Energy Business Symposium, members observed that many of the recommendations are integral to the EWG’s Action Program, or are currently being actively pursued, such as the natural gas initiative.
Action Arising/Next Steps
· The recommendations of the Business Symposium are to be taken into account in the further development of the EWG’s work program.
· The EWG Secretariat, where appropriate, to incorporate the recommendations of the Business Symposium into the revised Future Directions paper.
5.2 REPORT OF THE YOUTH SEMINAR, EDMONTON, AUGUST 1997
In considering this report, members observed that a central message is that working towards the goal of an environmentally sustainable energy community would foster, rather than constrain, energy sector growth. Members agreed that the achievement of a sustainable energy sector was central to the EWG’s action program approved by Leaders in 1995, and had formed the basis for the EWG’s activities since then.
Action Arising/Next Steps
· The EWG Secretariat to incorporate, where appropriate, the recommendations of the Youth Seminar into the revised Future Directions paper.
· Where feasible, members to consider nominating promising graduates and trainees to attend EWG technical seminars and training programs.
6. SECRETARIAT REPORTS
Ms Hartland reported to members on the main outcomes of the Joint Fora meeting in Penang on 22 to 23 February 1998.
Mr Ross, Manager of the EWG Secretariat, informed members of the Secretariat’s efforts to improve communication, including through the upgrade of the EWG’s website and the reformatted newsletter. The Secretariat requested members to utilise wherever possible electronic mail, which not only reduced costs, but expedited delivery.
Members noted the APEC Secretariat’s report on developments at the meetings of APEC Leaders and Ministers which had taken place in Vancouver in November 1997 and on matters for members’ attention arising from SOM 1 in Penang in February 1998.
Action Arising/Next Steps
· The report of the Joint Fora meeting to be circulated to members when available.
· The Secretariat to utilise, wherever possible, electronic mail as the primary means of communication with members.
· Members to provide corrections and updates to the EWG Officials Contact List, the Calendar of Events and the list of current EWG projects to the EWG Secretariat by 17 March 1998.
· The Secretariat to issue guidelines to members for producing and formatting documents to be placed on the EWG’s website.
· Members to provide contributions for the next issue of the EWG newsletter planned for April 1998 and to consider further ways to utilise the EWG’s website to promote EWG activities and achievements.
· Members to update the APEC Secretariat on the contact lists of the EWG, its Expert Groups and the Steering Group on Energy Standards.
7. REPORT ON RURAL ELECTRIFICATION IN THE APEC REGION
Members welcomed the report from Japan on Rural Electrification. Members agreed the report from Japan was timely and could assist members in identifying and removing impediments to the further development and spread of rural electrification and thanked Japan for its efforts.
It was agreed that members would provide the EWG Secretariat with comments on the report and practical examples with a view to developing this initiative to the stage of application as a best practice demonstration project.
Action Arising/Next Steps
· Members to provide comment on the report on Rural Electrification and will advise on practical experience with a view to developing a proposal for a demonstration project based on best practice.
· The EWG Secretariat to confirm whether the related UNDP proposal raised by Japan is consistent with APEC protocols.
8 PRESENTATION BY INTERNATIONAL ENERGY AGENCY REPRESENTATIVE ON IEA ACTIVITIES OF RELEVANCE TO EWG
Members welcomed the presentation of the Deputy Director of the IEA, Mr. Ferriter on the activities and operations of the IEA.
Following Mr Ferriter’s presentation, Members discussed whether they should increase the level of co-operation with the IEA and/or seek guest status for the IEA. It was noted that the IEA had participated actively in the work of the Energy Data and Outlook Expert Group and that the increased level of technical co-operation and information of exchange had been to the mutual advantage of both parties.