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Environment
>> Regional Overview >> EGAT Overview >> Environment Overview Program Data Sheet
934-003; IR 3.2CENTRAL OPERATING UNIT: Bureau for Economic Growth, Agriculture and Trade: Environment (EGAT/ENV)
PROGRAM TITLE: Energy Production; Renewable Energy
STRATEGIC OBJECTIVE AND NUMBER: Increased, Environmentally Sustainable Energy Production and use, 934-003; IR 3.2 Increased Use of Renewable Energy Resources
STATUS: Continuing
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $ 4,200,000 DA
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $ 3,600,000 DA
INITIAL OBLIGATION: FY 1999 ESTIMATED COMPLETION DATE: FY 2008Summary: The program seeks to overcome market and institutional barriers to encourage widespread adoption and use of renewable energy systems to meet development needs. The program seeks to:
- foster implementation of policy or regulatory changes that clarify or establish rights and incentives for the cost-effective utilization of renewable energy resources and technologies;
- mobilize business entities to pursue renewable energy projects;
- leverage financial commitments to renewables; and
- catalyze the establishment or strengthening of host-country, non-profit institutions for the explicit purpose of promoting renewables to meet development needs.
Inputs, Outputs and Activities: FY 2002 Program: USAID will continue to target the expanding, yet limited, energy infrastructures of developing countries that are particularly well-positioned to make use of environmentally sustainable energy technologies such as renewables. These activities will assist countries to seize the opportunity to pursue less carbon-intensive economic development pathways and leapfrog the polluting, carbon-rich industrialization phase that developed countries experienced. Two specific activities that exemplify this approach are the Central America and Philippines efforts, which are described below.
Some countries of Central America affected by Hurricane Mitch have announced intentions to increase their reliance on renewable energy as a hedge against future disasters. For example, Honduras gives a 10% premium in power purchase contracts that supply energy from renewable resources, and Guatemala has drafted new regulations that keenly favor development of renewable energy projects. The program will continue work with local non-governmental organizations (NGOs) to meet the energy needs of the Central American region's rural populations through activities such as water pumping and powering rural schools by renewables to bring distance education programs to these remote areas.
The program will also continue working with the Philippines Department of Energy (PDOE) to expand the potential for renewable energy initiatives and to help the World Bank design a new rural electrification loan. PDOE has developed the Accelerated Rural Electrification Program to electrify all provinces throughout the country, and has requested financing from the World Bank for support of the electrification program. The program will provide assistance to the World Bank and World Bank Energy Sector Management Assistance Program during the loan preparation process and expects to help 13 countries implement 26 policies that encourage investment in renewable resources. The program is also expected to yield over $1 billion in investments leveraged from international financial institutions and support the establishment of nine host-country institutions for the promotion of renewable energy. In addition, over 665 megawatts of renewable energy generation capacity is expected online. One megawatt of generation capacity can provide electric power to a community of about 5,000 residents in a developing country. These pilot projects are expected to leverage big investments in similar projects by the private sector.
Planned FY 2003 Program: USAID plans to use FY 2003 resources requested in this Budget Justification to support the strategic realignment of renewable energy activities to effectively address the delivery of energy services to rural and urban populations. A review of existing programs will lead to the continuation of some activities (e.g., improving the policy and regulatory frameworks for increased commercial delivery of renewable energy services; development and delivery of renewable energy services in the local markets to access local financial capital). New activities (e.g., integrating sector issues into commercial-based energy service provision) may also e initiated. In particular, the program will move beyond an emphasis on the provision of energy, in order to work with communities to develop productive use applications such as irrigation pumping and processing agricultural commodities, communications, and information technologies.
In FY 2000, the program, in conjunction with USAID missions, installed 162 megawatts of grid-connected renewable energy in Brazil, Guatemala, Honduras, India, Indonesia, Nepal, Nicaragua and the Philippines. The program also developed over 20,000 small off-grid units in India, South Africa, the Philippines, Mexico, Sri Lanka, and Indonesia. Performance and Results: Twelve training sessions were held on renewable energy financing for financial institutions, sustainable energy for development organizations, and productive uses for renewable energy for entrepreneurs. Targeted training materials on business plan development and risk analysis for renewable energy projects were developed. Twenty-five local businesses benefited from support for individual enterprise development services, leading to four business plans being developed and 16 more plans are in preparation. New financial commitments of $873.1 million were made available for renewable energy projects in assisted countries and $817.2 million was leveraged from multilateral development banks, principally from the Asia Sustainable Energy Unit of the World Bank, the Global Environment Facility, and The United Nations Development Program.
Principal Contractors, Grantees, or Agencies: Winrock International, E&Co., the Organization of American States, the Inter-American Development Bank, World Bank, the U.S. Department of Agriculture, the U.S. Department of Energy’s National Renewable Energy Laboratory and Sandia National Laboratory, the Institute of International Education, Academy for Educational Development, CORE International, PA Government Services, Nexant, and Advanced Engineering Associates International.
US Financing in Thousands of Dollars
934-0032 Increased use of renewable energy resources DA Through September 30, 2000 Obligations 12,986 Expenditures 5,269 Unliquidated 7,717 Fiscal Year 2001 Obligations 4,175 Expenditures 1,543 Through September 30, 2001 Obligations 17,161 Expenditures 6,812 Unliquidated 10,349 Prior Year Unobligated Funds Obligations 0 Planned Fiscal Year 2002 NOA Obligations 4,200 Total Planned Fiscal Year 2002 Obligations 4,200 Proposed Fiscal Year 2003 NOA Obligations 3,600 Future Obligations 39,282 Est. Total Cost 64,243
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Last Updated on: May 29, 2002 |
