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USAID’s SCALING UP RENEWABLE ENERGY - Leading in Climate &...
Transcript of USAID’s SCALING UP RENEWABLE ENERGY - Leading in Climate &...
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USAID’s SCALING UP
RENEWABLE ENERGY
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USAID REGIONAL DEVELOPMENT MISSION FOR ASIA
5TH Asia Regional Dialogue of the
Mitigation Action Implementation
Network, Danang, Vietnam
November 30th, 2016
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About the methodology
• It results in a simple set of priorities.
• It’s empirical (based on drivers in China, Brazil, Germany, India, South
Africa, UK, and U.S.)
• It’s based on “Delphi” consultations: MIT, University of Dublin, NREL
• It asks a single question directly related to results: What factors
seem to be strongly associated with going to scale?
• It is focused on the things USAID can influence in developing
countries.
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The “Building Blocks” Approach to Scaling RE
• Supporting the addition of tens of thousands of MW of RE
• Increasing the % of RE in total installed capacity and the % of RE in total
electricity delivered
• Establishing the building blocks:
– Strategic Energy Planning
– Smart Incentives
– Grid Integration
– Competitive Procurement
– Renewable Energy Zones
– Finance
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Strategic Energy Planning
Examples
• Low Emission Development Strategies
• Intentional Nationally Determined Contributions
• Renewable Energy Targets
• Power Development Plans
“Mexico is committed to reduce unconditionally 22% of its
Greenhouse Gases (below BAU) for the year 2030.” –
Mexico NDC
India Solar Mission
22GW by 2022
Set Goal Policy and
Actions
Allocate
Resources &
Implement
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Smart RE Incentives
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TYPES OF INCENTIVES FOR RE EXAMPLES
Accelerated depreciation Widely used
Tax credits US RE Production Tax Credit
Tax exemptions Texas & California RE property tax exemption
Customs and related exemptions Kenya
Financing facilities India
Loan guarantees U.S. for solar thermal
Capital grants India GBI program
Surcharges to pay for RE Germany
Special purpose bond programs US Clean Renewable Energy Bond Program
Property tax financing Texas local government RE loan program
Feed in Tariffs Widely used
Renewable Portfolio Standards Philippines RPS
PPAs awarded through reverse auctions South Africa, Indian reverse auctions
Consumer directed choice of RE Philippines Green Energy Option
Renewable Energy Certificates India's state REC program
Net metering of PV Widely used
"Must take" requirements Widely used
FISCAL
FINANCING
CONTRACTUAL & REGULATORY
OPERATIONAL
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Wind & Solar Resources
Wind Output – Tamil Nadu
… are variable, uncertain, and geographically concentrated
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Grid Integration Options
Low-hanging fruit:
Low capital cost but
real political costs to
change institutional
context
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Locate in areas of
best resources
Develop common
infrastructure
Engage Private
Sector
Competitive Renewable Energy Zones
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Competitive Procurement of Generation
Brazil Wind Energy Auction Prices, U.S. dollars per MWh $160 $87 $76 $70 $52 $52 $53 $62
2008 (FIT) 2009
auction 2010 1st auction
2010 2nd auction
2010 1st and 2nd
auctions
2010 3rd and 4th
auctions
2011 5th auction
2012 auction
U.S. Wind Prices over Time, U.S. dollars MWh, Source: DOE $42 $35 $33 $38 $50 $51 $63 $69 $60 $55 $39 $25
96-'99 00-'01 02-'03 04-'05 2006 2007 2008 2009 2010 2011 2012 2013
Winning Bid Prices in South Africa's RE Procurement, 2009- 2013 South African Cents per kWh
REFIT 1 REFIT 2 Auction 1 Auction 2 Auction 3 Wind 125 94 114 90 74
Solar PV 394 231 276 165 99 Source: http://www.ppiaf.org/sites/ppiaf.org/files/publication/South-Africa-REIPP-Report_final_web.pdf
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USAid - 11 November 2016
Countries with auction programmes and tenders
Mexico (2016)
$38.8/MWh*
Mexico (2016)
$42.9/MWh*
Peru (2016)
$37.2/MWh
Chile (2016)
$29.1/MWh*
Chile (2016)
$41.9/MWh*
UK (2015)
$69.35/MWh
France (2015)
$95.1/MWh
Germany (2015)
$87.35/MWh
Italy (2014)
$95.62/MWh*
Morocco (2016)
$30/MWh Egypt (2015)
$41-50/MWh
Zambia (2016)
$60.2/MWh
South Africa (2015)
$38.32/MWh
Jordan (2016)
$61-77/MWh
Abu Dhabi (2016)
$24.2/MWh
Dubai (2016)
$30/MWh
India (2016)
$76/MWh
Countries with auctions programmes or renewable energy tenders
Onshore wind bids
Solar PV bids
*:Pay-as-bid auctions – price signal is lowest winning bid Source: Bloomberg New Energy Finance
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Renewable Energy Finance
Private
Standardized contracts
Risk reductions
New business models
(securitization, leasing)
Public
Loan guarantees
Low-interest loans
Accelerated depreciation
Approach:
Increase Access to Finance
Lower Cost of Finance
Source: Climate Policy Institute
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How does USAID support scaling up?
• Design the building blocks into our new programs
• Improve our knowledge of what works
• Innovate the building blocks
• Change the way we measure & report results
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USAID/RDMA’s programs to support scaling up of RE
USAID Clean Power Asia: 2016-2021
USAID CEADIR: Private Sector Window into NDCs: 2016-2017
Goal: Create the enabling environment to scale grid-connected RE
• RE Target Setting
• Designation of RE zones
• Competitive procurement, smart incentives and other policy support
• Variable RE integration
Goal: Promote catalytic business and financing models to accelerate private sector investment for RE
development.
• Regional event: Enabling Private Sector Clean Energy Investment in Southeast and South Asia – 28-29 March
2017 in Bangkok
• Potential side event at Asia Clean Energy Forum, 5-7 June 2017 in Manila
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Mr. Sithisakdi Apichatthanapath
USAID Regional Development Mission for Asia
Bangkok, Thailand
Tel: +662-257-3000
Email: [email protected]