Geneva, 18.-19. December 2008 · 2. Our vision of the Regional Analysis assignment. 4 ... • Our...

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Geneva, 18.-19. December 2008

UNECE RFPS 110 Regional Analysis of Policy Reforms to promote Energy

Efficiency and Renewable Energy InvestmentsPöyry presentation and overview of project activities

3UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.20083

Agenda

1. Pöyry’s competences and experience

2. Our vision of the Regional Analysis assignment

4UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.20084

The Pöyry Group is one of the Top 20 consulting companies worldwide with 7’200 employees in 45 countries and revenues of € 720 mln in 2007

Key Figures Track Record

M€

0

100

200

300

400

500

600

700

1985 1991 1997 2003 2005 2006

Infrastructure &Environment

Forest Industry

Energy

12% annual growth

2007

TOTAL GROUPPÖYRYRESULTS 2007

FOREST INDUSTRY

Revenues [M€]Employees

2772’961

2232’378

7187’177

ENERGY

2181’838

INFRASTRUCTURE & ENVIRONMENT

The Pöyry Group has three business divisions:

ENERGYEuropean leader in energy engineering and consulting

FOREST INDUSTRYWorldwide market leader

INFRASTRUCTURE AND ENVIRONMENTLeading position worldwide

Pöyry locations worldwide

Who we are

5UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.20085

Pöyry has local offices and representative throughout all Europe - and in most of the Participating Countries

Pöyry’s local presence

Rus

Ukraine

Romania

Belarus

ALMK

BGSP

HRBA

MD

Rus

Ukraine

Romania

Belarus

ALMK

BGSP

HRBA

MD

Pöyry local offices

Pöyry local representatives

• We have combined our extensive regional expertise to create a unified European-based management consulting company for the energy industry and policy makers

• We provide an international network with our offices in Europe and worldwide

• Our team of over 250 energy market experts is one of the largest in Europe

6UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.20086

STRATEGYWe help our clients to build stronger, more competitive, long-term positions throughout the energy value-chain, by focussing on the goals and activities that generate value

• Utilities• Generating Companies• Wholesalers• Traders• Distribution Companies• Shippers• Retailers• Market Operators• Transmission Companies• Independent System Operators

• Trade Associations

• Governments• Regulators

• Non-Governmental Organisations

• Financial Institutions

• Large Consumers• Manufacturing Companies

We support our institutional and private clients throughout the entire value chain of the energy business

Pöyry’s services

BUSINESS OPERATIONWe improve the performance and competitive position of our clients by developing and implementing innovative energy markets solutions

VALUATION & FINANCINGWe apply our extensive expertise, projections and models to the valuation of businesses, projects and contracts to assist in thefinancing of our clients’ energy market activities

SUSTAINABILITYDelivering long term success increasingly requires companies to demonstrate environmental competence and social responsibility in their actions.

POLICY ADVICE AND MARKET DESIGNWe advise governments, regulators and industry on the development and implementation of energy related policies. We provide advice on liberalisation and design of market structure

7UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

RU

UAKZ

RO

BY

ALMK

BGRS

HRBA

MD

RU

UAKZ

RO

BY

ALMK

BGRS

HRBA

MD

7

Reference projects of Pöyry (Selection)

Pöyry has an international track of records with proven field experience in Eastern Europe, South Eastern Europe and Central Asia

Pöyry’s experience

Ukraine• Project identification for energy

efficiency in buildings

• Power sector reform

• Financial management systems for district heating companies

Bulgaria• Rehabilitation of district

heating system

• Analysis of the Tariff regulatory reform

Croatia• Energy management program, project

preparation and monitoring support

Serbia• Development of environmental

management system

• Rehabilitation of district heating system

• Review of national EE and RE policies

• Environmental auditing on industrial plants

Romania• Energy efficiency plan through CHP for

railway stations

• Assessment of coming EU-ETS, JI and “Green investment scheme” opportunities

• Seminars on power sector liberalisation

Russia• Study for higher energy

efficiency in a district heating system

• Study on GHG reductions and markets

• Tariff regulatory reform for TSO

• Evaluation of the Russia Sustainable Energy Finance Program

8UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.20088

Agenda

1. Pöyry’s competences and experience

2. Our vision of the Regional Analysis assignment

9UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

The framework of the Regional AnalysisWithin its Program Energy Efficiency 21, the United Nations Economic Commission for Europe (UNECE) has started a project on Financing Energy Efficiency Investments for Climate Change Mitigation (ECE-INT-04-318)

The goal of the project is to promote market formation so that self-sustaining energy efficiency and renewable energy projects can be identified, developed, financed and implemented locally in participating countries

Objective two

Identify and develop investment projects• Network of energy efficiency managers in participating countries• Trained experts in project development, finance, business planning• Investment project pipeline

Objective three

Objective One

Strengthen energy efficiency and renewable energy policies• Economic, Institutional and Regulatory Reforms• Energy Efficiency Seminars• Policy Advisory Services

Promote opportunities for commercial banks and companies to invest• Energy Efficiency Investment Fund• Investment Project Development Standards• Investment Project Pipeline Inventory

10UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Parallel assignments to achieve overall project objectivesIn order to achieve the project objectives efficiently, three external consultancy contracts have been awarded in order to support the overall project activities

Strengthen energy efficiency and

renewable energy policies

Promote opportunities for

commercial banks and companies to

invest

Identify and develop investment

projects

Project Objective Contract Title RFPS Nr. Contractor

Development of a Website and Internet Communications Network of Energy Efficiency Managers in

Eastern Europe

Regional Analysis of Policy Reforms to Promote

Energy Efficiency and Renewable Energy Investments

Investment Fund Designer

RFPS-113

11.10.2007

RFPS-110

19.09.2007

RFPS-117

07.11.2007

Centre for Energy EfficiencyEnEffect(Bulgaria)

Pöyry Energy Consulting (Schweiz) AG

(Switzerland)

Conning Asset Management Ldt. (UK)

11UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

The goals of the Regional AnalysisThe goal of the Regional Analysis is to strengthen energy efficiency and renewable energy policies through a wide-ranging regional assessment, case studies, workshops and policy maker seminars

Develop recommendations for new reforms necessary to

introduce market-based energy systems

• Policy making and government structural reforms

• Administrative, institutional andregulatory reforms

• Reforms of energy markets and tariff structures

Review of progress of reforms

Recommendationsfor new reforms

• 12 National case studies showing potential benefits associated with policy reforms

• 12 National case studies prepared by the National Participating Institutions

• Development of the energy sector (supply/demand)

• Economic structure• Energy intensity• Structure and mechanisms

of energy markets Regional Analysis of Policy Reforms

necessary to promote Energy Efficiency and

Renewable Energy Investments

Collection and analysis of energy data Identification of case studies

12UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

• Albania (AL)

• Belarus (BY)

• Bosnia and Herzegovina (BA)

• Bulgaria (BG)

• Croatia (HR)

• Kazakhstan (KZ)

• Republic of Moldova (MD)

• Romania (RO)

• Russian Federation (RU)

• Republic of Serbia (RS)

• The former Yugoslav Republic of Macedonia (MK)

• Ukraine (UA)

Scope of the Regional AnalysisThe Regional Analysis covers 12 countries located in Eastern and Southeastern Europe, Caucasus and Central Asia (EECCA countries)

Out of scope

Project scope

Ukraine

Romania

Belarus

ALMK

BGSP

HRBA

MD

RU

UA

RO

BY

ALMK

BGRS

HRBA

MDKZ

Ukraine

Romania

Belarus

ALMK

BGSP

HRBA

MD

RU

UA

RO

BY

ALMK

BGRS

HRBA

MDKZ

13UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Our vision of the assignment

Achieve project goals by sharing information and integrating experiences and point of views of all involved parties

• Continuous involvement• Active communication• Exchange of information• Sharing of project results

National Coordinators (NC)

Representatives of local governments

EE21 experts, project teams and

donorsAchievements from other

project steps

Pöyry Energy ConsultingProject Lead for

Regional Analysis

EnEffect, Conning Asset

Mgmt. Achievements from parallel assignments

National Participating

Institutions (NPI)Representatives of local energy authorities and

experts

The Regional Analysis will contribute to the overall achievement of the Project EE21 objectives and will be done in interaction with all the other involved parties

14UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Our working approachThe project results will be achieved in four subsequent steps; interaction with the other involved parties will take place throughout all project phases

Outline ofregional analysisTa

sks

Collection and analysis of data

Act

iviti

es

• Detailed time schedule of the project (deliverables, milestones)

• Project team and resources plan

• Research methodology

• Outline of final report

• Outline for case studies

Preparation of analytical report

Presentation of report

• Collection of energy data

• Collection of data on policies and reforms

• Interviews and consultations with National Authorities

• Review and appraisal of reform progress

• Identification of needs for reforms

• Identification of specific bottlenecks and barriers

• Appraisal of reforms necessary to overcome bottlenecks and barriers

• Identification of 12 case studies

• Consolidation of case studies prepared by National Participating Institutions

• Development of conclusions and recommendations

• Presentation of the work in progress to three international workshops

• Presentation of the work in progress to the Steering Committee of Energy Efficiency 21

• Finalization of report

• Delivery of final report to PMU for publication

• Presentation of the final report to three international seminars for senior decision makers

Res

ults

Project Implementation Plan Initial Draft Report Final Draft Report Published Final

Report

15UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

The timeline of the project activitiesThe project activities will have the duration of one year. Regular progress reports and meetings with the PMU will ensure quality of results and duly deliveries.

Communication, quality assurance, controlling and reporting

Project Management

- International Workshops- Steering Committee EE21- Report finalization- International seminars

Presentation of report

- Appraisal of reforms- Identification of case studies- Development of

recommendations

Preparation of report

- Data research- Interviews and consultations- Review of reform progress- Identification of bottlenecks

Collection and analysis of

data

Project Implementation PlanOutline of analysis

DecNovOctSepAugJulJunMayAprMarFebJan2009

Face to face meetings with PMU Approval of deliverables (PIP, status reports, report draft versions)Monthly progress reportsCurrent phase

CW 16 CW 26

To be finalized in Project

Implementation Plan

CW 4 CW 16 CW 25 CW 36CW 42 CW 50CW 4

16UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

The organization of the projectThe project organization adapts to the different tasks to be undertaken during the Regional Analysis and foresees the active cooperation with UNECE, National Participating Institutions, National Coordinators as well as other contractors

UNECE PMU

Energy Markets AnalysisPolicy Review and

Recommendation for Reforms

Case studies

Project Coordination

Project Supervision

Pool of experts UNECE Secretariat

Core Project Team

National Participating Institutions

UNECE Experts (EE21)

Contractors for other assignments

National Coordinators

Project Management

To be finalized in Project

Implementation Plan

17UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

• Develop templates for the sets of National Energy Policy Information

• Provide instructions and guidance for the preparation of the sets of National Energy Policy Information and the identification of the National Case Studies

• Perform interviews with representatives from National Participating Institutions and National Coordinators

• Support National Participating Institutions in the delivery of the sets of National Information and of the National Case Studies

• Coordinate the deliveries from all National Participating Institutions

• Collect and consolidate informationand documentation into final report

• Provision of National Energy Policy Information:

- Key energy sector developments of the countries

- Progress of policy reforms to introduce market based energy systems

- Specific policy, regulatory, administrative and institutional bottlenecks

- Reforms examples that have helped overcome selected barriers or promoted energy efficiency market formation

• Provision of a National Case Study:- A policy reform that has transformed one

investment project into a bankable project which has been financed

- Assessment of the “scaled-up” potential environmental, economic and financial impact of the case study

- Recommendations on new reforms to introduce market-based energy systems based on case study

Cooperation with National Participating InstitutionsThe National Participating Institutions (NPI) will be involved in the project according to the Terms of Reference of the respective Memoranda of Understanding subscribed with UNECE

Role of Pöyry Role of National Participating Institutions

Instructions, templatesassistance

Energy data,information,

local expertise

18UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Support by UNECEUNECE will support the project team in achieving the project goals

Grant access to information and documentation

Organization of meetings and conferences

Coordination of networks of

international experts

Support by Project Management Unit

(PMU)

• UNECE documents and publications on energy policy reforms and energy efficiency market formation in participating countries

• Documentation from Energy Efficiency 21 Project and related policy reviews• Other documentation available from the UNECE secretariat and/or the Project

Management Unit

• Ad Hoc Group of Experts on Energy Efficiency Investments for Climate Change Mitigation

• Steering Committee of the Energy Efficiency 21 Project• Project Workshops and Seminars

• Experts from the National Participating Institutions • Experts from the Energy Efficiency 21 Project and from participating organizations

on related activities

• Single point of contact for project-related issues• Exchange of information on project progress and parallel activities• Cooperation and support throughout all project phases

19UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Next StepsThe project activities will start at the beginning of 2009

• Project initialization by preparation of Project Implementation Plan to UNECE Project Management Unit for approval

• Exchange of available documentation from project-related activities within the Energy Efficiency 21 program

• Preparation of instructions and guidelines for National Participating Institutions

• Preparation of templates and specifications for sets of National Energy Policy Information and National Case Studies

• Organization of interviews and meetings with representatives from the National Participating Institutions and the National Coordinators

20UNECE RFPS 110/ Regional Analysis of Policy Reforms to promote Energy Efficiency and Renewable Energy Investments Geneva, 18-19.12.2008

Pöyry Energy ConsultingClaudio WaldburgerManaging DirectorPhone: +41 (0) 44 288 90 84Claudio.Waldburger@poyry.com

Dr. Francesca PaolettiSenior ConsultantPhone: +41 (0) 44 288 90 86Francesca.Paoletti@poyry.com

Pöyry Energy Consulting (Schweiz) AGHardturmstrasse 185CH-8005 ZurichSwitzerland

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