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					Access to Energy – Assessment and Gap Analysis
                in the Maldives




                WELCOME
           Access to Energy – Assessment and Gap Analysis
                           in the Maldives
Energy-Poverty Linkage
•The higher electricity tariff structure in rural islands inhibits the growth of the domestic economy
and places a significant burden on rural households, which already have low income levels.
•The energy sector has not yet seen a cohesive approach towards stabilizing developmental
imbalances;
•Energy Sector - traditionally been a fragmented quasi-sector;
•Current priorities of both GOM and NGO/multilateral agencies lean more towards the creation
of uniform regulatory frameworks than towards the utilization of energy linkages with poverty to
reduce socio-economic imbalances.

Some Key Data:
•Virtually 100% of the fuel needs have to be imported;
•Access to electricity has been achieved by almost all households;
•197 of the 199 inhabited islands receive electricity for at least five hours, and 82 receiving it 24-
hours a day.
•Renewable energy sources have failed to penetrate the energy mix;
•Diesel fuel, imported at considerable expense, has a huge 83% share in the energy mix.
•Diesel is the primary fuel used in the transport and industrial sectors, and has near-total
dominance in electricity generation.
       Access to Energy – Assessment and Gap Analysis
                       in the Maldives

•Selection of Consultants
    -Due to non availability of national expert and international expert was
    recruited; supported with a local assistant.
•Constraints and Limitations
    -Limited materials for a comprehensive desk study;
    -Brief visits to two islands
    -Limited amount of time
•Key Stakeholders Consulted
    -Ministry of Environment, Energy and Water
    -Ministry of Transport and Communication
    -Ministry of Fisheries and Agriculture
    -STO, STELCO, IDC/WDC, Department of Public Health, Faculty of Engineering,
    Environmental Research Centre;
    -UNDP, UNICEF and FAO officials; Consultants
•Data Sourcing and analyses
    -Desk Reviews; Field visits and consultation with IDC/WDCs; Visited homes
    and enterprises like fish smoking and drying, handicraft centers etc.
     Access to Energy – Assessment and Gap Analysis
                     in the Maldives

Major Challenges and assessed gaps:

   -Lack of clear policies on utilization of RE resources and incentives for RE
   based programs and projects;
   -Inter-linkages on energy services at micro-level weak/missing;
   -Institutional linkages and coordination between Central and Island agencies
   inadequate;
   -R& D capacities, especially in renewable energy limited; Limited technical
   knowledge on RE/RETs
   -Public-private partnership in energy utilization is limited to distribution only;
   -Inadequate technical capacity for running community-managed power supply.

   -Capacity for information dissemination and M&E limited.
   -Limited sharing and learning through networking on alternate energy and on
   RETs application
         Access to Energy – Assessment and Gap Analysis
                         in the Maldives
Meeting the Challenges
  -MEEW understaffed. Inadequate human resources for effective intervention in energy sector
  may emerge as a major stumbling block.
  -Prioritise Human resource development in Energy Sector, Information analysis &management,
  Program dev. & implementation, Awareness creation & demonstration, Monitoring & evaluation;
  Need for rapid assessment on existing capacities.
  -There are no collaborations of note between STELCO and independent power producers to
  expand electricity access to the 117 islands (out of 199 inhabited islands) that do not receive 24-
  hour electricity.
  -MEEW; MoAD; MoT; MoFT; Comprehensive policy on liberalization of energy service provsions;
  guidance and technical expertise on active entry of private sector into energy provisions and
  creating enabling environment for fair market competition
  -Presence of large state-owned monopolies undermine the emergence of private sector; Lack of
  financial mechanisms and discriminatory policy on funding/support of private sector.
  -Formulate policies and regulations that will allow and encourage development of IPPs and local
  manufacturing of RE systems; Encourage formation and participation of engineering
  associations.
  -There is no documentation of Best practices/Lessons learnt

  -Encourage exhibitions, seminars and workshops on renewable and energy efficient products
  and services.Built and strengthen collaborative research and development programs with the
  cooperation and collaboration of the ‘center of excellence” in the region such as Asian Institute
  of Technology, Thailand and other similar institutions in the Asia Pacific Region. Best practices
  on the energy production and uses especially linked to gender mainstreaming and poverty
  reduction from other countries of the region be collected and analyzed mainly from the point of
  view of it’s relevance and replication in the Maldives
         Access to Energy – Assessment and Gap Analysis
                         in the Maldives
•Meeting the Challenges… continued
  -There are no formal information channels, in the form of exhibitions, seminars, brochures, and
  leaflets, available particularly to communities in outer islands, which do not receive adequate
  modern energy services and would benefit most from renewable energy technologies.

  -Scaling- up of RETDAP and evolve it into Renewable Energy Development Programme

  -There are no specific energy sector capacity development initiatives at the local level.

  -With the re-structured institutional framework - NAEM and reforms that has taken place recently,
  more cross-sectoral synergies will be resulted.
  -The current function of MEB is limited to setting engineering and safety standards and
  guidelines for tariff setting of electricity services. The regulation of all forms of energy is needed
  and would require a coordinated effort. Specific regulations for governing areas such as
  independent power generation and the pricing and the use of renewable energy technologies
  (RETs) would be required. An independent regulator with enforcement powers will be required
  for their implementation
  -Inclusion of RE in the 7th National Development Plan (2006 – 2010); Ensuring equal
  representation of the MEEW/Energy Sector in the Planning process for NDP 7
  Development of guidelines on incentives subsidy on RE. Finalize the National Energy
  Policy and Sustainable Energy Action Plans; conduct awareness and info dissemination at
  national/local levels; MEEW to take active part in formulation/implementation/monitoring
  of development plans at local levels (island and atoll development plans); MEEW to be
  represented in Steering Committees for multilateral and bilateral agency implemented
  projects
          Access to Energy – Assessment and Gap Analysis
                          in the Maldives
                                              WAY FORWARD
         ISSUE                     PROPOSED ACTION                TIME FRAME             RECOMMENDED
                                                                                            ROLES

Human Resource               Rapid Assessment
Development in                                                    2006                MEEW, UNDP
                             and Action Plan
Energy Sector

R&D on Energy,               Assessment of capacities;            ASAP                MEEW, UNDP, Env.
particularly RE              Inventories of research                                  Research, Faculty of
                                                                                      Engineering

Financing                    Development of financing             ASAP                MEEW, MAA,
mechanisms for RE            modalities; Guideline                                    BOML, UNDP
                             procedures on RE financing

Incorporate Gender           Development of guidelines;
Analysis into energy         orientation of education            Continuous           MEEW, MAA,
and poverty                  programs – micro finance for        process              Ministry of Gender,
reduction efforts            women, etc.                                              UNDP

Alternative fuels and
clean energy                 Assessment and                       ASAP                MEEW, MOTCA,
                             integration within CDM                                   UNDP
--------------------------   ---------------------------------   ------------------   -------------------------
Rights based                 Awareness raising
approach                                                          ASAP                UNDP, MEEW
                             and sensitization
   Access to Energy – Assessment and Gap Analysis
                   in the Maldives
                                WAY FORWARD
         ISSUE              PROPOSED ACTION      TIME FRAME   RECOMMENDED
                                                                 ROLES

RE Development; RE       Inclusion of 7th NDP;   Done         MEEW, MPND
promotion and            Development of                       with support
application              guidelines on                        from UNDP;
                         incentives subsidy on   Long term
                         RE                                   MEEW,
                                                              UNDP/ADB,
                                                              MOFT

National Energy Policy   Finalization and        Done         MEEW
2005                     Implementation

Sustainable Energy       Finalization            First        MEEW
Plan 2004                                        Quarter
                                                 2006
Information              Awareness on            2006         MEEW in
Dissemination of         policies and action                  cooperation
Energy Policy and        plan at national and                 with sectoral
Sustainable Energy       atoll level                          ministries and
Plan                                                          donors

Regional/Atoll/Island    Addressing energy       ASAP         MEEW,
Development Plan         sector holistically                  UNDP
         Access to Energy – Assessment and Gap Analysis
                         in the Maldives
                                             WAY FORWARD
Issue                       Proposed Action/Plan                          Suggested         Recommended
                                                                          Time Frame        Roles
                             1.   Identify priority action countries;
Priority Actions by UNDP
                             2.   Training of UNDP staff on Rights
Regional Centre                                                                             UNDP
                                  based approach;
                             3.   Integrate accurate indicators on                          Regional
                                  energy access disparities for better                      Centre
                                  monitoring
Long-term RE                 •    RE development plan/program            Beyond 2010
Development                       beyond 2010 with exploration of                           MEEW
                                                                         Dialogue/
Programme with focus              increasing share by RE resources                          UNDP
                                                                              feasibility
on substituting                   and related technologies                                  UNDP
                                                                              to
conventional energy with     •    Scaling- up of RETDAP and evolve                          Regional
                                                                              implemen
RE making energy                  it into Renewable Energy                                  Center
                                                                              t in 3 or 4
available, accessible and         Development Programme ( 5                   Atolls
affordable to all.                Years)                                      initially


Priority sectors for        Possible UN agencies Joint Programmes;       Early action for   MEEW,
introduction of clean       Promotion of Rights based approach;               seeking       MCT
                            Partnership with NGOs                             funding       UNDP CO
energy                                                                                      UNDP
                                                                                            Regional
                                                                                            Center
                                                                                            UN Agencies:
                                                                                            WHO/UNICEF
        Access to Energy – Assessment and Gap Analysis
                        in the Maldives
                 WAY FORWARD… PROGRAMME DEVELOPMENT

Develop Model “ RE         Identify an island and develop the        Discuss initiative   UNDP,
Reliant Island through     programme with extensive application of   as early as          Tsunami support
RETs applications          RE options                                possible             organizations
                                                                                          MEEW
                                                                                          ADC/IDC/WDC
Integrate clean            Implement the suggested potential         Dialogue and         MEEW, UNDP,
energy/substitute/EE       activities in the Environmental           consultation be      IFRC and other
initiatives into ongoing   Mainstreaming Guideline and               renewed as soon      related Ministries
UNDP Regular and Post      Implementation Note for UNDP Maldives     as possible
Tsunami Programmes         Recovery Program
Coastal area protection    Prepare action plan for reforestation                          MEEW / MOFA
through bio-fuel           projects with a potential on coastal                           FAO/UNDP
plantation                 protection and bio-fuels.
Establishment of Energy    Assessment of funding requirements for    Dialogue with        UNDP, MOFT,
Development Fund           RE initiatives and                        funding agencies     MEEW
Micro-credit Schemes       establishment of micro-credit schemes     for their
                           using ADF                                 contribution,
New Initiative for         Consideration for establishment of a      Dialogue and         MEEW, UNDP
Alternative and            Alternative and Renewable Energy          feasibility as       CO, UNDP,
Renewable Energy           Promotion Center within the MEEW /        soon as possible     Regional Center
Promotion and              REDTAP scope of work
Development
            Access to Energy – Assessment and Gap Analysis
                            in the Maldives
                                                      WAY FORWARD
Issue                                Proposed Action/Plan                               Suggested                 Recommended
                                                                                            Time                     Roles
                                                                                            Frame
Documentation of “Best               Initiate nation-wide documentation practices on    As early as feasible       MEEW
Practices/Lessons Learnt”            compiling/disseminating “Best Practices/Lessons                               UNDP CO
                                     Learnt”


Establish an Energy Information      Initial steps by UNDP to inventor/compile          Initiation is underway.   UNDP Regional Centre
& Resource Centre                    related data on Energy sector with focus on RE,
                                     with gradual transfer of it to MEEW and Maldives
                                     Public Library


Build and Strengthen Networking      Provide MEEW with a list of potential regional                               UNDP/RC-INSE
                                                                                        Early action
at the National, Regional and        networks                                                                     Denmark, INGSE; RC –
International level                  Identify National, Regional and International                                SAARC Regions
                                     Centers and build contacts and strengthen
                                     networks for sharing of information, experiences
                                     and technology development
Collaborate/ participate with        Contact AIT, Thailand and join “Renewable          Early action              MEEW
Regional Research and                Energy Technology in Asia’, - Regional                                       Asian Institute of
Dissemination program                Research and dissemination Program                                           Technology, Tata
                                                                                                                  Energy Research Center
                                                                                                                  etc
Initiate Energy Sector information   Identify, initiate, strengthen institutional                                 RE Technology Promotion and
                                                                                        As early as
exchange and networking efforts      linkages/collaborations with organizations                                   Implementing Organizations in
                                                                                        possible
                                                                                                                  Asia Pacific Region and
                                                                                                                  SAARC Region
Access to Energy – Assessment and Gap Analysis
                in the Maldives




                THANK YOU

				
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