SPC-IRENA Joint Training on Energy Data and Policy Mechanisms to Support Implementation

SPC-IRENA Joint Training on Energy Data and Policy Mechanisms to Support Implementation of Renewable Energy Targets

Draft programme agenda

11 – 15 August | SUva, fiji

Introduction

As part of IRENA Capacity Building and Statistics activities and SPC’s Energy Database works, and in the spirit of the MoU signed by the two agencies in 2012, SPC and IRENA are partnering to conduct a training which aims to respond to high priority needs voiced by their common members from the Pacific Small Island Developing States (SIDS), namely:

A- Energy data and information: Energy data remains a critical element for the sound design of energy plans, targets, cost-based strategies and for monitoring and evaluating policies and progress in achieving energy sector aspirations.

For renewable energy, the need for a comprehensive approach to mainstream efforts on data collection and dissemination is critical. This is particularly due to the distributed nature of renewable energy generation combined with the relatively small size of renewable energy systems, thus increasing the uncertainty of data. In fact, in many cases, the growth of renewable energy is not accurately captured in energy statistics. Even when multiple data sources exist and a number of actors have engaged in data collection, there are often significant problems relating to data sources quality, consistency and comparability. Often, basic data is lacking at a national level, even though information from numerous existing projects and initiatives could be consolidated to develop a more comprehensive picture of renewable energy within the country. Additionally, the data that is available is not properly tracked and systematized.

In response to these gaps, in 2013, the Pacific Small Island Developing States (SIDS) witnessed a critical landmark as the Pacific leaders signed an agreement to address a key constraint to the achievement of the three goals of the SE4ALL Initiative, by way of establishing a Pacific Regional Data Repository (PRDR) for SE4ALL. The Secretariat of the Pacific Community, is leading the regional efforts to develop the PRDR.

B- Renewable energy targets and policy mechanisms for implementation: Despite the political commitment of the Pacific Islands to accelerate the deployment of renewables, Table 2 indicates[1] several gaps in the support schemes and incentives necessary to accelerate implementation. However, efforts are at speed in the region to address specific needs related to designing policy mechanisms to support the increasing uptake of renewables while preserving affordability and sustainability.

Currently, 10 out of 11 islands (considering only IRENA Members) have set renewable energy targets, and they demonstrate various levels of progress. Development aid has been the source of financing for renewable energy projects in the majority of the islands. However, as the cost of diesel continues to increase and renewable technologies maintain their declining cost curve, the business case for renewables becomes increasingly compelling. To provide a level-playing field, support mechanisms will be needed. An IRENA survey - developed to provide the basis for the design of this training – indicated that 7 out of 11 islands and 6 out of 11 islands are considering FiT and net metering, respectively. These islands require targeted assistance, however many share similar challenges, such as identifying the “optimum target” and supporting policies that would “decrease” the tariff, assessing the effect of net metering on utility income and on quality of power as well as undertake a cost-benefit analysis of various procurement policies.

Table 1: Overview of renewable energy policy mechanisms in the Pacific SIDS (showing only IRENA Members).[2]

The training will build on existing efforts and will focus on the following main issues:

- Introduce the PRDR, its features and receive feedback from participants

- Discuss in details the processes involved in defining, collecting and disseminating data with focus on data collection methods for the PRDR

- How to utilize data to design sound renewable energy targets and the impact of data quality on targets?

- What are the best practices and pros and cons of utility-led renewable energy projects?

- How to design net metering and FiT schemes given the unique islands’ context?

- How to negotiate power purchase agreements?

Target audience

The PRDR focal points energy planners from relevant ministries; senior technical officials from power utilities; senior technical officials from regulatory bodies.

Learning outcomes

1- Understand processes involved in defining, collecting and disseminating data in relation to the PRDR.

2- Identify the most appropriate collection method to meet the country objectives and desired applications of data for the PRDR.

3- Gain confidence in using the PRDR professionally and understand the functionality of all its features.

4- Understand what data is needed for the design of the renewable energy target and the impact of data quality on the design of targets.

5- Understand the methodology for setting a renewable energy target and the pre-requisites needed to design the target.

6- Understand how to identify the appropriate, cost-effective support mechanism(s) to implement the renewable energy target and fulfil the national objective.

7- Realize the best practices of deploying various relevant support mechanisms and relate to how they could be adapted to fit the islands’ context.

About the organizers

SPC: SPC is an intergovernmental organisation that provides technical, policy advice and assistance to its Member Countries. It is the lead regional agency on energy in the Pacific Island Countries and Territories and has been tasked with developing and hosting the Pacific Regional Data Repository (PRDR) in its first 12 months. IRENA: The International Renewable Energy Agency (IRENA) is an inter-governmental organisation, mandated by Member States around the world to promote the widespread and increased adoption, and sustainable use of all forms of renewable energy. This concerns all forms of energy produced from renewable sources in a sustainable manner, which include bioenergy, geothermal energy, hydropower, ocean, solar, and wind energy. The Agency facilitates and catalyses sharing of best practices and lessons learned regarding policy frameworks, capacity-building, available finance mechanisms and relevant technologies on renewable energy.

draft Programme agenda

1. Current status of the PRDR SE4ALL Portal
2. Populating the portal
3. Portal features: (one-stop-shop, report uploading, data inputting, tables and graphs analysis, importing and exporting data, populating matrices, etc)

1. Defining data needs based on scope and priorities of the Pacific Islands (renewable energy targets, project investment, etc)
2. Conducting a data audit to identify reporting gaps
3. Identifying appropriate data collection and analysis methods based on needs and resource availability
4. Creating mechanisms for review, validation and dissemination of data
5. PRDR SE4ALL Data agreement

1. Defining data needs based on scope and priorities of the Pacific Islands (renewable energy targets, project investment, etc)
2. Conducting a data audit to identify reporting gaps
3. Identifying appropriate data collection and analysis methods based on needs and resource availability
4. Creating mechanisms for review, validation and dissemination of data

1. FAESP Energy Security Indicators
2. Utilities benchmarking
3. Regional Project Targets – North Rep.

1. Institutional capacity needs: developing an institutional framework
2. Human resource capacity needs: skills and knowledge needs to design training programmes
3. Technical capacity needs: trainings on data management platforms

1. Objectives of renewable energy targets
2. Overview of renewable energy target typology
3. Best practices vs common practices in designing targets
4. Methodology for setting a target

1. What are the best practices for utility led renewable energy projects?
2. What are the options for contractual arrangements for utilities? (i.e., BOO, BOOT, BOT, etc)
3. What are the challenges facing utilities and preventing them from implementing the best practices: lack of human capacity, lack of government support, etc
4. Pros and cons of the utility led models

1. How to design net metering for islands? Differences and Parallels with mainland regions
2. How to determine the appropriate buy-back rate for power (tariff), given the high generation cost due to high diesel prices? Examples for island regions
3. How to assess the cost impact on utilities of implementing a net metering policy (i.e., revenue impact, cost savings, etc)? Examples from island regions

1. How to design micro-FIT programs for island regions?
2. How to determine the appropriate FIT rate?
3. How to assess the cost impact on utilities (i.e. PPA obligation, offsetting diesel consumption; cost savings?)
4. How to allocate cost savings: back to ratepayers, to the government, or to the utility?

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[1] Showing only IRENA Members and Signatories as of 17 June 2014.

[2] Info based on a survey circulated by IRENA in May 2014 to energy stakeholders.