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Second phase of the Nurek Hydropower Rehabilitation Project in Tajikistan

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The World Bank’s Board of Executive Directors approved additional grant financing of $50 million from the International Development Association (IDA) for the second phase of the Nurek Hydropower Rehabilitation Project in Tajikistan. The Nurek Hydropower Plant (HPP) is the most important asset of Tajikistan’s energy system.

“The restoration of the generation capacity of the Nurek HPP is essential for ensuring energy security for the people of Tajikistan,” said Jan-Peter Olters, World Bank Country Manager in Tajikistan. “Especially in these difficult times, the combination of inherent climate benefits from this renewable source of energy and the ability to support job creation and incomes for the local population, including by their engagement in this large-scale rehabilitation process, makes this a critical investment for a fast and sustainable post-crisis recovery.”

The Nurek HPP, with an installed capacity of over 3,000 megawatts, generates about 50 percent of total annual energy demanded in Tajikistan. Operational at currently about three-quarter of its installed generation capacity, the HPP is undergoing its first major rehabilitation since its commissioning in 1972. Once completed, the rehabilitation will allow the Nurek HPP to increase electricity generation by about 300 million kWh, supporting the Government’s efforts to ensure that energy demand can be met even during the cold winter months.

At the same time, during summer, Tajikistan would be in a position to expand electricity exports from its hydro resources, including through the CASA-1000 transmission line and upon synchronization of the country’s electricity network with Central Asian Power System (CAPS). This would generate much-needed additional revenues for the sustainability of the power sector, thereby reducing pressures on the pace of tariff adjustments.

The first phase of the Nurek Hydropower Rehabilitation Project, financed by the World Bank ($225.7 million), the Asian Infrastructure Investment Bank ($60 million) and the Eurasian Development Bank ($40 million), was launched in March 2019. It has focused on rehabilitating three of the nine generating units, replacing and refurbishing hydromechanical equipment and the key infrastructural components of the power plant, replacing six auto-transformers that are used to evacuate the generated electricity, and enhancing dam safety with a special focus on protection against seismic hazards and floods.

Through a separate project, the World Bank is supporting Government’s efforts in strengthening the institutional capacity and financial viability of the open joint stock holding company Barqi Tojik (BT).

The project’s second phase will finance the rehabilitation of the remaining six generating units, the Nurek bridge, the powerhouse, and other key buildings, while strengthening the HPP’s capacity to operate and maintain the power plant.

Capacity building will be provided to Nurek HPP and BT to enhance dam safety monitoring and the operation and management of hydro facilities. With a total cost of $192 million for the project’s second phase, the Government of Tajikistan is currently finalizing its discussions with other development partners to secure the required additional resources.

Given Tajikistan’s long history of power outages, particularly during the cold winter months, the climate co-benefits, and the socio-economic development impact of using available hydro resources effectively, Tajikistan’s energy sector has been a priority area of engagement for the World Bank. Its current energy-related investments exceed $530 million.

These investments aim at supporting the sector’s sustainability, eliminating seasonal energy rationing, ensuring an affordable and stable electricity supply to families and businesses and much needed revenues from increased export of clean, non-fossil energy resources.

The World Bank Group’s active portfolio in Tajikistan includes 21 projects, totaling US$938 million that aim at helping Tajikistan to take advantage of emerging regional opportunities, transform its economy and improve the livelihoods of its citizens. Since 1996, the World Bank has provided US$1.9 billion in grants, highly concessional IDA credits, and trust fund resources.

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Countries Raise the Sails on Offshore Renewables Sector

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Offshore renewables, including offshore wind, wave, tidal, ocean thermal, and floating solar PV, will witness substantial growth in capacity over the next decade and play an essential role in the global energy transformation. In this context, representatives from 40 countries gathered to identify collaboration areas and agree on concrete actions to accelerate progress and ensure rapid uptake of these promising technologies.

According to the International Renewable Energy Agency’s (IRENA) projections, global offshore wind and ocean energy installed capacity will reach 228 GW and 10 GW respectively by 2030.

During his welcoming remarks, IRENA Director-General Francesco La Camera stressed offshore renewables’ importance in meeting growing energy demands and improving living conditions. “Offshore renewables have the potential to meet more than four times the global energy demand of today, foster a blue economy, and bring socio-economic benefits to some of the most vulnerable areas to climate change such as small island territories and coastal areas,” he said.

The Collaborative Framework on Ocean Energy/Offshore Renewables first met on 25 June 2020, during which Members and States in Accession provided inputs on the thematic scope of the Collaborative Framework and agreed to include relevant stakeholders in future meetings. In response, this second meeting of the Collaborative Framework, moderated by H.E Ambassador ‘Akau’ola, Tonga’s Permanent Representative to IRENA, included participation, insights, and support from the Global Wind Energy Council (GWEC) and Ocean Energy Europe (OEE).

Currently, 90% of global installed offshore wind capacity is commissioned and operated in the North Sea and the nearby Atlantic Ocean. Mr. Ben Backwell, CEO of GWEC, attributed the rapid uptake of offshore wind in Europe to regional cooperation on interconnection, marine spatial planning (MSP), and sector coupling in the North Sea. Mr. Backwell highlighted the critical role that the Collaborative Framework can play in fostering similar regional partnerships in other parts of the world.

Representing the ocean energy sector in the Collaborative Framework, Mr. Rémi Gruet, CEO of OEE, suggested that ocean energy will become a game-changer, estimating that the sector can provide more than 1.2 million jobs worldwide by 2050. Mr. Gruet also underscored the predictability of ocean energy, which complements the variable renewable energy sources, as a compelling reason to make wave and tidal energy technologies essential additions to power systems that will be dominated by solar PV and wind.

Members also agreed on 13 topics of focus for the Collaborative Framework, around the areas of technology development, research and innovation, market incentives, and sustainability. The topics include analyses on accelerating technology cost reduction, grid integration, resource mapping, and coupling of offshore renewables with Power-to-X technologies. Participants also indicated the important role of IRENA and the Collaborative Framework in moving a global Offshore Renewables agenda forward in other relevant multilateral venues including the G20 and the COP26.

IRENA Members also agreed on modalities for future meetings under the Collaborative Framework, including the selection of Italy and Tonga as co-facilitators.

IRENA

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South Africa: industrial energy efficiency project wins international award

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South Africa’s largest energy efficiency initiative: Industrial Energy Efficiency Improvement in South Africa through Mainstreaming the Introduction of Energy Management Systems and Energy Systems Optimization, has won the highest international accolade for an energy programme – the International Energy Project of the Year – awarded by the global Association of Energy Engineers (AEE).

The project, which has been led by South Africa’s National Cleaner Production Centre (NCPC-SA) and the United Nations Industrial Development Organization (UNIDO) since 2010, received the award in recognition of its efforts to transform energy use patterns in South African industry and to mainstream energy management systems across economic sectors.

Since the project began in 2011, it has successfully trained 39 SANS/ISO 50001 lead auditors, held more than 320 training workshops, and achieved the participation of more than 150 large companies and 227 small and medium-sized enterprises. The project team has assisted industrial companies in saving 6.5 terawatt-hours (TWh) of energy, representing cumulative cost savings of R5.3 billion (270m.) for these companies.

The AEE’s International Awards recognize achievements in energy around the world. According to the organizers’ official communication, the awards identify those who exemplify the very best in their fields, and recognize the important work that is being done by individuals, organizations, agencies and corporations.

The AEE International Project of the Year award was accepted by national project manager, Alf Hartzenburg of the NCPC-SA, at the AEE International Virtual Awards ceremony. AEE members and executives from around the world responded with enthusiastic accolades when the summary of the IEE project achievements was read by the chairperson of the awards committee. 

The IEE project, currently its second phase, funded by the Global Environment Facility, is set to run until December 2021. Other IEE project phase II partners include South Africa’s Department of Trade, Industry and Competition, which funds the NCPC-SA, the Department of Energy and Mineral Resources and its agency, the South African National Energy Development Institute (SANEDI).

According to Hartzenburg, what sets this project apart is that it partners with and equips industry to tackle practical energy management in companies of all sizes.

He said, “Through expert-level training of industry professionals, demonstration of actual impact and methodologies aligned to international standard ISO50001, the project partners have ensured that both the skills and the appetite exist to implement energy management.”

Hartzenburg continued, “The benefits are made clear in the energy savings, which result in direct financial savings on utilities and other energy sources, and we don’t leave the companies to go it alone, but support them with skills and financial linkages, where possible.”

Hartzenburg believes that the return to post-lockdown operations offers companies an ideal opportunity to consider changes that will ultimately save them operating costs, thus aiding in the recovery process and long-term sustainability.

“SANS/ISO 50001, the energy management best practice standard, actually saves companies money. We are offering companies technical support to comply with this standard, and even some financial support if they want to apply for certification through the South African Bureau of Standards (SABS).”

Hartzenburg said his team is particularly proud of the huge environmental impact of the project. “Energy savings, particularly in a fossil-fuel based economy such as South Africa, have a direct climate mitigation benefit – which is why the GEF has funded our second phase.”

Based on internationally accepted calculations, the NCPC-SA reports that energy saved by companies through the IEE project has mitigated 6.4 million tonnes of carbon dioxide equivalent (CO2e) since April 2011 when the first savings were measured.

SANEDI is working with the information gathered through the NCPC-SA interventions, and is using them together with relevant international and national energy trends to inform national energy and policy planning, including the adaptation of the National Energy Efficiency Strategy.

Rana Ghoneim, head of UNIDO’s Energy Systems and Infrastructure Division, said the award was an excellent recognition of the strong ownership, committed leadership and multi-stakeholder partnership that is driving industrial energy efficiency in South Africa.  “The programme has always been a great example, inspiring other countries within the UNIDO global programme, where its impacts transcend beyond South Africa.”

The IEE project has a strong focus on gender mainstreaming and promoting the participation of women in energy. To date, 43% of the professionals trained through the project are female.

The project also includes awareness-raising in its activities, as evidence strongly supports the idea that sustained energy savings are brought about through behaviour change. This active communication approach made the project an even stronger candidate for the AEE International Award which encourages projects with “significant success in savings and/or visibility”.

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Islands Aim to Phase out Fossil Fuels and Build Climate Resilience

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From the Atlantic Ocean and the Caribbean to the farthest reaches of the Indian and Pacific oceans, island communities face common and increasingly daunting energy challenges.

On top of their vulnerability to climate change, Small Island Developing States (SIDS) tend to have limited primary energy resources, leaving them dependent on imported fossil fuels. This means severe price volatility and import dependencies, along with climate damage.

Small system size, however, makes island grids good candidates to demonstrate the shift in power generation from fossil fuels to local renewable sources.

In one instance, in Vanuatu, the power utility of Espiritu Santo undertook a grid assessment study that estimated 87% of electricity demand could be met with renewables by 2030. New operational procedures and enabling measures could boost solar photovoltaic (PV) power in the system as well as adding more hydropower.

Moving from predominantly thermal, fossil-based power generation to a system rich in wind and solar energy is not without challenges for SIDS. The variable nature of those sources – the sun must shine and the wind must blow – requires careful integration with existing power systems. The transition must be approached in a structured manner, with studies undertaken at key stages.

In Viti Levu, an island in the Republic of Fiji, grid assessments showed that the share of PV could increase as much as 65 megawatts (MW) with infrastructure upgrades and grid code changes to reduce constraints in the power system. After a thorough evaluation by power engineering experts, effective grid codes can be adopted and adapted from other countries with similar demand and generation profiles.

In the Dominican Republic, assessments have showed ways to integrate variable renewables into the existing power system.

By 2030, some 63% of real-time demand could be met by wind and solar energy. This means over a third more wind and nearly a quarter more solar than in recent years, while slashing the use of natural gas and oil-based fuels by more than a quarter. This could cut system operating costs as well as carbon-dioxide (CO2) emissions.

After an island state sets its policies and targets for renewables, grid assessment studies can indicate feasible shares for the existing power system, as well as future investment needs. Such studies can also offer valuable recommendations on solar and wind integration.

While SIDS contribute only to a very small percentage of global emissions, they are taking decisive steps to scale up renewable energy and fulfil their own international climate pledges.

IRENA

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