APEC EXPERT GROUP ON
NEW AND RENEWABLE ENERGY TECHNOLOGIES
2-3 November, 2000
The 17th meeting of the Expert Group on New and Renewable Energy Technologies (EGNRET) was held on November
2-3, 2000 in Cuernavaca, Mexico. The meeting was co-chaired by Andre van Rest of the U.S. Department of Energy,
Chair of EGNRET, and Ing. Odón de Buen Rodríguez, Director General, Comision Nacional Para El Ahorro De Energia
(CONAE). Attendance included representatives from, Australia, Canada, Japan, Korea, Indonesia, Mexico, Thailand, and
the United States of America.
The Chair of EGNRET opened the meeting, thanking the National Commission on Energy Conservation for hosting the
A final agenda was distributed, reviewed, and approved
The meeting was then addressed by the Director General of CONAE, who welcomed attendees to the meeting in the
name of the Government of Mexico. He said that Mexico will host the APEC EWG meeting in 2002 and that the
preparations for that meeting are very important. He noted that energy has become very important, and renewable energy
is of great interest for Mexico. He stated that this expert group meeting provides a window on what is going on around the
world and this group is of extraordinary importance to APEC.
PROGRAM OVERVIEW AND HIGHLIGHTS
Andre van Rest, Chair EGNRET
Following a brief introduction of all participants, Mr. van Rest thanked CONAE for hosting the meeting. He then
reviewed recent relevant meetings, including the EWG-19 meeting in Brunei and the subsequent APEC Energy Ministers‘
Meeting in San Diego (May 2000), and the EWG-20 meeting in Cusco, Peru. For each of the meetings, he reviewed the
decisions that will impact on the EGNRET..
He then reviewed the status of the APEC 21st Century Renewable Energy Development Initiative (the Initiative), which
was presented by the US at the last EGNRET meeting in New Zealand.
The Initiative was proposed by the US Secretary of Energy to the APEC Energy Ministers‘ meeting, and was subsequently
endorsed by the Ministers.
He stated that the US is open to revising the initiative based on the comments and statements of the APEC EGNRET
At the New Zealand EGNRET meeting, there was a proposal from the city of Melbourne (tabled by Australia) to convert
all municipal services in the city to renewable energy supplies. The Expert Group quickly approved this proposal. At the
Brunei meeting the project was approved, and has moved forward. This project was further discussed later in the meeting.
Also at the New Zealand meeting, the US introduced the Integrated Infrastructure Technologies Initiative. This focused
on combining small-scale infrastructure with distributed electricity systems, i.e., combining water, water treatment, and
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other local distributed energy infrastructure. This has not gone forward, but it is hoped that it will be launched in the near
The EGNRET Implementation Plan was presented to the Energy Working Group and was accepted.
The EGNRET New Terms of Reference were presented to the EWG which some minor changes. This has been done and
the revised TOR were approved. This will be discussed today. There is still an opportunity for the EGNRET to suggest
The EWG also recommended three EGNRET projects for funding by the APEC. They were Including New and
Renewable Energy Technologies into Economy Level Energy Models, APEC Renewable Energy Infrastructure
Assessment, and Workshop on Distributed Electric-Power. The acceptance or EGNRET projects by the EWG
demonstrates the strong interest in renewables by APEC member economies.
Mr. van Rest also distributed and discussed several scoping papers that were developed for the Energy Ministerial. These
papers were used as the basis for the discussion of the future of electricity in the region during the breakout session. A
series of papers was presented on renewable energy technologies, energy efficiency, distributed power generation, clean
fossil fuel technologies, etc.
NEW AND RENEWABLE ENERGY TECHNOLOGIES IN MEXICO
Odon de Buen Rodriguez, Director General, CONAE
A comprehensive overview of renewable energy activities in Mexico was next given by Odon de Buen. His presentation
covered, general information about México‘s renewable energy resources, institutions related to renewable energy,
projects and programs, private sector activities, main barriers, and perspectives and conclusions.
Of a total population of 100 million people, 75% urban , about 5 million people live in remote communities without
About 75% of electricity is from fossil sources, at an average price of $0.07/kWh.
Resource assessment: There are no good maps of either solar radiation or wind energy resources. There is about 5
kWh/sq. m. per day annual average for global insolation
Wind: There are about 5,000 MW of commercial potential. Especially good wind sites are in Iaxaca (La Ventosa),
northern part of Baja California, and other regions.
Small hydro (<5MW) potential estimated to be about 3,000 MWe.
Biomass (primarily firewood) is widely used, but the resource is poorly evaluated. In pure energy terms, it provides
about 40% of the energy consumption in the residential sector. Use is primarily for water heating and cooking.
Mexico is in a tropical region and there is a potential for large-scale biomass production. Bagasse is used for energy
production: about 1,000 MWe average.
13 MWp of PV installed for all applications. There are 50,000 solar home systems installed in 3,000 small
communities between 1990 and 1994. Part of a rural development program (FIRCO) of the Federal Government.
Private sector carried out the installations under contract to the federal government.
PV powered SOS systems along the main Federal roads
1996 establishment of the Council for the Promotion of Renewable Energy, established by CONAE together with
Mexico has signed the Kyoto Protocol. There is strong interest in CDM. Power sector restructuring will also create
opportunities for renewable energy Mexico.
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Main barriers include subsidized electricity (50% to residential sector), high costs of renewable energy technologies,
scarce and expensive local financing, poor capabilities to develop specific programs and policies to develop markets,
and no specific regulations or standards. Lack of standards could be addressed through an APEC activity that would
make use of existing standards in some APEC countries.
More information is available from the internet at: http:// : www.conae.gob.mx
Thailand: APEC Cooperation and the International Oil Price Situation.
Energy security is an issue of global concern. With the projection of growing energy demand in the APEC region, energy
import dependence, in particular growing oil import dependence, is likely to increase the region‘s vulnerability to supply
Last year and throughout the course of this year, many of our economies have experienced hardship resulting
from great volatility of oil prices, which has substantially affected the economic recovery in Asia as well as the world
economic growth. One major factor causing such volatility of oil prices is the cartel of the OPEC. By limiting their
production, OPEC increases crude oil prices. Most of us in the APEC region are net oil importers, so the rising crude oil
prices have had a great impact on our economies. Although OPEC has agreed to increase their production, we can no
longer rely only on OPEC supplies.
Having concerns over the oil price issue, Thailand has recently developed a short position paper under the title,
―APEC Cooperation in the Context of the International Oil Price Situation,‖ which has been forwarded to the Third
APEC Senior Officials‘ Meeting held on 21-23 September 2000 in Brunei Darussalam.
The main topics mentioned in Thailand‘s position paper are:
The current international oil price situation, which is a record high at around USD 35 per barrel and tends to rise at the
year end during the winter time;
The effects of sustained high oil prices, which have increased inflation in G7 economies by half a percentage point and
reduced GDP growth by a quarter point and which have set back the recovery in Asia;
The impact on individual economies, where industrial economies have moved towards alternative fuels, while
developing economies suffer more from the excessively high oil prices; and
Assessment and APEC action. Generally, the world oil situation could be addressed from both the supply and the
demand sides, by increasing oil production and by bringing oil supply and demand closer to a balance. However,
although the OPEC agreed to increase their production, the prices have not correspondingly come down.
Thailand proposed the following APEC responses to the oil situation:
4.1 Request the 20th APEC EWG to take stock and make recommendations on further APEC cooperation on
alternative energy to APEC Ministers and Economic Leaders through the informal SOM;
4.2 Request the 20th APEC EWG to take stock and make recommendations on further APEC cooperation on energy
efficiency and conservation energy to APEC Ministers and Economic Leaders through the informal SOM;
4.3 Request the 20th APEC EWG to recommend any other future courses of cooperation to be explored, such as
petroleum sharing and stockpiling for energy security, to the informal SOM;
4.4 Request the APEC Economic Committee to assess the impact of the continuing rise in oil prices on APEC‘s
economic outlook and, if possible, incorporate the findings in the APEC 2000 or 2001 Economic Outlook; and
4.5 SOM to explore suitable wording on this issue to be incorporated in the APEC Ministerial and Economic Leaders
Under the APEC Energy Working Group, we have an Expert Group on Energy Efficiency and Conservation and our
group here, an Expert Group on New and Renewable Energy Technologies. Co-operation among APEC economies in
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exploration and development of alternative energy resources, including energy technology development, is very essential
for sustainable economic development, with less dependence on oil supplies.
USA: APEC 21st Century Renewable Energy Development Initiative
The United States reviewed the APEC 21st Century Renewable Energy Development Initiative, which was proposed by
the US at the 4th APEC Energy Ministers meeting last May in San Diego, and was endorsed by all the ministers. Since
then, the EWG reviewed the Initiative and requested that an implementation plan be developed. The US presented the
plan it had developed and which listed the items that the US was willing to sponsor.
The first major activity will be a Private Sector Forum, which is to be held in Portland, Oregon. A discussion was held
concerning an appropriate date, and it was agreed that the Forum would be held March 26-27, 2001, just following the
EGNRET meeting. The US said that each APEC economy will be asked to nominate a private sector representative who
the US will sponsor to attend the meeting.
Another activity of the Initiative will be to send out a survey to member economies on their renewable energy priority
needs. The survey is to be returned prior to the Private Sector Forum and will be used by the EGNRET members to define
specific activities that will occur under the Initiative. A draft survey was presented by the US and accepted by the Expert
Group after minor modifications.
There was a discussion of who should receive the survey, the energy ministers, since they had indorsed the Initiative, or
the EGNRET members. The US said they would discuss this with their EWG before making a final decision. It was
determined that each economy would only be asked to complete one survey.
The US stressed that while it was taking the lead in this Initiative, there is a need for strong participation by other member
economies. It was also stressed that there is a need to identify potential sources of financing and to mobilize those
It was also stressed that through the Energy Ministers endorsement of the Initiative, we have the opportunity to put
forward renewable energy activities of real value and consequence to the APEC economies, especially the developing
economy members. But we need more than the traditional recommendations (e.g., information sharing). There is a lack
of coordination among bilateral, multilateral, and other renewable energy related activities. The Initiative will help the
APEC economies present their renewable energy priorities. Finally, it can also provide input to the G8, IEA and UNEP
who are also looking at the needs of the developing countries.
There were detailed discussions concerning the best way to identify industry participants (that is, individual companies or
trade representatives), the need to also have official economy representatives, and the overall structure of the Private
MEMBER ECONOMY PRESENTATIONS ON THE STATUS, PRIORITY NEEDS AND ISSUES RELATING TO THE
DEVELOPMENT OF THE RENEWABLE ENERGY INFRASTRUCTURE
Mr Geoff Stone, Department of Industry Science and Resources, presented information on the development and
implementation of an Action Agenda for the Australian renewable energy industry. The industry has the potential to
deliver very significant benefits to Australia, including jobs, export income, regional development and greenhouse gas
The Action Agenda has been driven by industry, for industry. It was launched in June 2000 with a vision to achieve a
sustainable and commercially viable and internationally competitive renewable energy industry which has annual sales of
$4 billion by 2010. To achieve this vision, industry has identified a series of strategies and actions by government and
industry grouped under five overarching strategies, covering market development, community commitment, industry
capability, the policy framework and innovation.
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Industry will have prime responsibility for implementing the initiatives under the Action Agenda and has committed to
ongoing involvement through the establishment of a Renewable Energy Implementation Group (REIG). A higher level
CEO Group will provide support and guidance to the REIG and report annually to Government on progress on the Action
The Action Agenda is available over the internet at: http:// www.isr.gov.au/agendas
The focus of recent renewable energy activities in Canada have been related to climate change issues. Several recent
Canadian publications were presented and discussed with the Expert Group.
Specific publications were shown included:
Government of Canada Action Plan 2000 on Climate Change. 16 pp plus inserts. See:
Landfill Gas Utilization (project summary sheets). See www.eg.gc.ca/nopp/lfg/bulletin/
US Department of Energy and Natural Resources Canada (1999) Heating Communities with Renewable Fuels
Natural Resources Canada (2000), Stand-Alone Wind Energy Systems: A Buyer’s Guide 47pp
Solar Energy Society of Canada, Inc. (1999), The Canadian Renewable Energy Guide, 228 pp CA$ 29.95 1-
Indonesia‘s renewable energy potential comprises of 459 MW of micro hydro, 4.7 kwh/m2/day of solar energy, 885
GJ/.yr. of biomass energy, 20 MW of geothermal, and possibly power generation from wind energy in East
Nusatgenggara, West Nusaternggara, South Sulanesi, and theNorth and Southern region of Java. In order to
make use of these abundant energy resources, particularly to accelerate economic development in rural areas and
for poverty alleviation program, Indonesia, through the Directorate General of Electricity and Energy
Development (DGEED) Ministry of Energy and Mineral Resources, has successfully formulated a new and
renewable energy strategic plan in 1999. This was in addition to the already existing National Energy Policy
Guidelines (KUBE). The Strategic Plan contains technical as well as economic possibilities of new and
renewable energy development and applications in Indonesia by providing estimated installation capacity of each
energy source, installation cost, life cycle production cost in Rp/kwh and share of local content go generate
electricity or thermal energy.
Based on this strategic plan, short and medium range program prioritizing can be made for each region in the country
after identifying new and renewable energy resources using GIS based computer programming models.
It was also announced that there will be a renewable energy seminar in Bali in August 2001. Dr. Kamaruddin is
organizing this seminar.
Dr. Takekawa presented an overview of Japan‘s new energy related policy system. The goal of the national program
is to stimulate the demand for NRETs to establish a sustainable market. They are using model projects to
introduce advanced NRETs to private enterprises and local governments. He also presented Japan‘s overall
scheme for new energy introduction showing the links being developed between the government and the private
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During last 2 decades, though Korean government has supported the research, development and dissemination of
NRET, the infrastructure for NRE is still weak. Especially, low level of commercialization in long period has
caused worse situation. Shortage of human resources of technician and expertise, shortage of financial support
and financial system, small market scale, lack of information and public awareness are the main problems to be
With the high electrification rate and the accessibility to the gas grid, most of the Korean people are likely to be
satisfied with the conventional energy system. Recently, the discussion leaded by some NGOs raise the common
awareness, in addition, the volatility of oil price force people to conserve energy and to find new and clean
energy sources. To continue this directions, the internalization of external factors of energy should be
implemented in a short time.
In this situation, the accurate assessment of resources, development of appropriate and sustainable financial system
for fostering of the participation of private sectors, information of success stories, the characterization of open
and competitive electricity market and the new and renewable energy policy in energy industry restructuring
should be found and defined.
EGNRET‘s works have to address these issues. Korea will strongly support the renewable energy development
initiatives and the results of this expert group‘s implementation should be very helpful to all APEC economies.
Thailand (National Energy Policy Office)
Thailand reviewed the new and renewable energy activities which were taking place under the Energy Conservation
Promotion Act of 1992. These included:
100 NRE projects have been supported by the energy conservation fund. Examples include:
biogas, integrated with waste water treatment. Fertilizer production
Landfill gas use as experiment at Bangkok municipal facility
Solar energy (PV and thermal) – some use of PV both on houses in Bangkok and PV water pumping with large
R&D on solar thermal dryer system
Working to develop a detailed solar map
Wind mechanical water pumping but they lack wind energy resource information; some small wind units are installed
There is a 300 MW is the target for the period 2000 – 2004 for small power producers (2.06 billion Baht).
In answer to a question about fuel cells support, it was stated that Thailand has funded one fuel cell project using LPG.
Thailand was also asked if an overall renewable energy strategy had been developed, and the answer was not yet.
USA: David Renne
The US presentation focused on four areas: installed capacity and support systems, policy environment, consumer
acceptance and choice, and market structures for capacity growth.
2500 MWe of wind by end of 1999 in USA
9,800 small (< 50 kWe) wind installations by end of 1999
Photovoltaic panels now cost about $4/watt wholesale price
7,500 MWe biomass combustion
Policies discussed included
Renewable portfolio standards
Systems benefit charges (fees to all customers to support RETs)
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Green Power options (over 80 utilities in 28 states have green pricing). Most of the 70 MWe of installed
capacity at 26 utilities in wind electric power
Disclosure and certification
Disclosure and certification
Tax incentives (e.g., Federal production tax credits
Over $3 billion for renewables development in state funds over the next 12 years (from utility system benefit charge
We are headed towards an increasingly distributed energy resources system for power generation, distribution, and
Summary comments were:
•United States has well-established renewable energy infrastructure (installed capacity, suppliers, maintenance, financing,
consumer acceptance, future market potential)
•Existing grid infrastructure can be strengthened using new technologies
•Policy and regulatory environment needs strengthening to greatly expand domestic markets
•There is foreign competition for some major technologies
PROGRESS/STATUS OF CURRENT PROJECTS
Australia: A Costed Strategy and Action Plan to Convert All Municipal Services in the Australia City of
Melbourne to Renewable Energy Supplies (EWG-SF01/2001)
The City of Melbourne outlined a proposal to convert all municipal services in the city to renewable energy supplies at the
last meeting of EGNRET in March 2000. The scope of the overall project was altered during the development of Phase
One of the project which was the development of a brief and a pre-feasibility study. The scope of the project for Phase
Two, the development of a detailed Strategy, is the achievement of zero net greenhouse gas emissions by 2020 for the
municipality as a whole. The change in scope is due to:
The small size of the municipality;
The limited value offered by addressing municipal services alone;
The scale of potential gains through market mechanisms and increased performance by industry in the municipality;
The potential applicability of the work to cities in other APEC economies.
The approach relies on market mechanisms in a de-regulated environment and targeted regulation, much of which is
within the control of the municipal government. The brief excludes carbon trading, private transport, unknown
technologies and embodied energy. The cornerstones of the brief are: increasing energy efficiency through building and
construction design and refurbishment, development of grid connected and off grid renewable energy sources and final
sequestration of remaining greenhouse gas emissions inside and outside of the municipality.
Japan: 2000-2001 APEC Energy R&D and Technology Transfer Seminar
Following is a brief report on NEDO‘s 8th New and Renewable Energy Seminar, more specifically, the 2000-2001
APEC Energy R&D and Technology Transfer Seminar, held in cooperation with National Commission for Energy
Date: Monday and Tuesday, October 30th and 31st
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Venue: Institute for Electricity Investigation (IIE)
Seminar theme: Fostering the Commercially Viable Deployment of New and Renewable Energy Technologies for
Special Presentation: Ms. Gill Wilkins, The Royal Institute of International Affairs, United Kingdom—‗Keys to the
Success of Renewable Energy for Rural Development‘
Speakers: 11 experts from 10 APEC economies, Australia, Canada, PR China, Indonesia, Korea, Mexico, Chinese
Taipei, Thailand, the United States and Japan
Attendance: approximately 65, from governmental and non-governmental organizations, energy-related industries,
and academic organizations
The panel discussion saw the majority of the experts pointing out the stubbornness of the institutional, political
and legislative barriers
A recent paradigm shift is quite evident
There remains a large market potential for NRET utilization in the APEC region
Delivery of comprehensive remote energy services is more important than delivery of ―hardware‖
Regional visions or regional energy programs are revealing their effectiveness
Social and economic end uses/benefits must be emphasized
Microenterprise development, not ―electrification‖, should be viewed as a goal
Infrastructural weaknesses prevent successful achievements
Public/private partnerships are indispensable; individually, neither party seems to be very successful in achieving
Collaboration between developed and developing economies is essential
Technical barriers are less of a problem now, than they have been in the past
Technical Tour: Wednesday, November 1st
Installation visit: a PV-powered museum in Xochicalco was inspected
IIE visit: formal introduction to IIE‘s activities; PV lab tour
USA: Assessment of Integrated Rural Energy and Village Power Programs for
Potential Collaborative Projects (EWG-06/98)
The project output was based on the use of computer models to examine the opportunities to integrate rural energy and
economic development programs with village power programs in China. The US reported that this project has been now
Economy Level Renewable Energy Roadmaps (EWG-05/99)
The project output was based on the examination of actual renewable energy projects in five APEC member economies-
including United States, the Philippines, Thailand, Japan and China—in the areas of wind energy, photovoltaics,
bioenergy, and landfill gas for on-grid and off-grid projects. This project is in the final stages of completion. A review of
the results to date were given by Dr. Jerome Weingart, the report‘s principal author.
USA: Including New and Renewable Energy Technologies into Economy
Level Energy Models (EWG-04/2001)
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The purpose of this project is to build upon the work of previous APEC studies and previous multi-economy studies on
economy level energy modeling by working with at least three APEC member economies to refine their economy level
energy models to better characterize the potential of new and renewable energy technologies. The project will be
implemented in 2001.
USA: APEC Renewable Energy Infrastructure Assessment (EWG-05/2001)
This project would document the status of the renewable energy infrastructure in APEC member economies by first
surveying member economies, then developing a comparison of infrastructure status which identifies the best case
examples of activities currently being practiced in various economies. This project will be implemented in 2001.
Workshop on Distributed Electric-Power (EWG-06/2001)
The purpose of the proposed workshop is to explore distributed generation technologies, their costs, and the various ways
in which distributed generation will affect existing power systems. The project will be implemented in 2001.
DISCUSSION OF NEW INITIATIVES AND EWG PROJECT GUIDELINES
Mr. van Rest discussed the new project guidelines that needed to be followed on all future projects. The need to review
recent changes was stressed at the last EWG meeting.
Korea discussed the APEC New and Renewable Energy Fair, which is now planned to be held in Korea in the fall of
2002. They hope to bring together consumers, producers and policy makers interested in the development and promotion
of renewable energy. The US suggested that they also consider focusing on village power.
DISCUSSION OF EXPERT GROUP TERMS OF REFERENCE AND STRATEGY PAPER
After a brief discussion, the terms of reference was adopted.
The strategy paper which had been adjusted to account for the activities of the APEC 21st Century Initiative was also
discussed and adopted.
DISCUSSION OF EXPERT GROUP IMPLEMENTATION PLAN
It was decided that we would view the implementation plan in light of the activities of the APEC 21st Century Initiative. It
was felt these could be divided into the categories of: information exchange, training and capacity building, project
development, and policy related initiatives.
SPECIAL PRESENTATIONS ON OCEAN THERMAL ENERGY CONVERSION
Mr. Robert Nicholson of Sea Solar Power International gave a special presentation on ocean thermal energy conversion
(OTEC). His presentation stressed how recent advances in areas such as heat transfer components have significantly
reduced the cost and increased the efficiency of ocean thermal power.
The US volunteered to host the next EGNRET meeting in Portland, Oregon, on March 28, 29, just after the Private Sector
REVIEW OF MINUTES
It was decided that the minutes would be approved out of session after being distributed electronically. The Chair of
EGNRET thanked Mexico and CONAE for hosting the meeting and the Expert Group members for their active
participation. With that, the Chair of EGNRET closed the seventeenth meeting of the APEC Expert Group on New and
Renewable Energy Technologies.
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