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* Atleast Project Title is Required.
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Project No. |
EWG 23 2011A
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Project Title |
Prospects for Marine Current Energy Generation in APEC
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Project Status |
Completed Project
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Publication (if any) |
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Fund Account |
APEC Support Fund
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Sub-fund |
ASF: Energy Efficiency
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Project Year |
2011
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Project Session |
Session 3
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APEC Funding |
89,575
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Co-funding Amount |
97,788
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Total Project Value |
187,363
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Sponsoring Forum |
Energy Working Group (EWG)
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Topics |
Energy
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Committee |
SOM Steering Committee on Economic and Technical Cooperation (SCE)
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Other Fora Involved |
Not Applicable / Other
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Other Non-APEC Stakeholders Involved |
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Proposing Economy(ies) |
Russia
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Co-Sponsoring Economies |
Canada; Japan; Korea; Singapore; Chinese Taipei; Thailand; United States
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Expected Start Date |
21/12/2011
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Expected Completion Date |
31/12/2012
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Project Proponent Name 1 |
Mr Talyat Aliev
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Job Title 1 |
Deputy Director, International Cooperation Department
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Organization 1 |
Ministry of Energy of the Russian Federation
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Postal Address 1 |
Moscow, Schepkina Street 42
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Telephone 1 |
+ 7 (495) 631-86-94
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Fax 1 |
+7 (495) 631-81-50
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Email 1 |
AlievTZ@minenergo.gov.ru
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Project Proponent Name 2 |
Not Applicable
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Job Title 2 |
Not Applicable
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Organization 2 |
Not Applicable
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Postal Address 2 |
Not Applicable
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Telephone 2 |
Not Applicable
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Fax 2 |
Not Applicable
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Email 2 |
Not Applicable
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Declaration |
Not Applicable
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Project Summary |
Energy generated from marine currents appears to be relatively reliable and mostly unexplored compared to other renewable energy sources.
APEC economies are naturally endowed with access to vast ocean and marine resources that offer potential of tidal, wave and current energy. Technology and expertise to utilize marine current energy exist in a number of APEC and non-APEC economies, but the industry is in its infancy. Information/technology sharing is needed to advance the understanding of options for marine energy production at large and marine current energy in particular.
The main activity of the project, a conference in Russia in April/May 2012, will bring together the experienced operators and potential interested investors/users of marine energy generating facilities.
The project is expected to encourage trade in marine energy products and services and investment in related technology to build capacity for its commercial application. |
Relevance |
Marine and ocean waters offer huge potential of clean renewable energy that can be harnessed from tides, waves, currents and other sources. Marine currents are estimated to be relatively stable but less explored source of energy compared to other renewables. The technologies for marine current energy generation are in their infant stage of development and commercial distribution. According to the existing estimates, the cost of marine current generation may be comparable to that of the wind generation while reliability may be higher.
Experience of installing and operating devices to generate energy from marine currents is available in a number of APEC and non-APEC economies. Having proved their efficiency as ad hoc, pilot projects, the related technologies are far from mass adoption. It’s feasible to study successful deployment models for marine energy technologies and identify policy and capital requirements, conducive environmental and climate conditions for their wider usage.
The implementation of the project will bring about greater awareness of the benefits of marine current energy and build capacities of the stakeholders for their efficient deployment. The conference will allow to translate dispersed early experience of deploying related technology into practical knowledge resource.
The project is expected to contribute to APEC Green Growth agenda and in particular to the Environmental Goods and Services (EGS) programme. |
Objectives |
· Within the context of APEC Sustainable/Green Growth agenda, to raise awareness of the benefits of marine energy generation with particular focus to marine current energy;
· To compile widely dispersed information on the deployment of marine current generating technologies and to make this information accessible to APEC economies with a view of delivering advice on:
(a) how to assess the need for and feasibility of marine energy
generation,
(b) how to choose proper technology,
(c) how to engage Regional Equipment Manufacturers in a reliable supply
chain, including maintenance services,
(d) how to better integrate renewables into existing electric grids,
(e) how to mobilize finance while minimizing the risks for the investors,
(f) how to reduce operating costs. |
Alignment |
The project is in line with several APEC and EWG priorities.
It responds to Sustainable Growth pillar of the 2010 APEC Leaders’ Growth Strategy which encourages “steps to facilitate the diffusion of clean energy technologies and systems, including by reducing barriers to trade and investment in energy efficient products, conducting international joint research, building capacity, promoting public-private partnerships, and providing appropriate incentives for investment in energy efficient and low-carbon energy supply, buildings, industry, and transport”.
In 2011, the APEC Economic Leaders stressed concrete actions that “will help our businesses and citizens access important environmental technologies at lower costs, which in turn will facilitate their use, contributing significantly to APEC’s sustainable development goals.
It is within the context of the EGS work programme where the first component is “Research and Development” which refers to developing new and better EGS through innovation and R&D to address not only trade in EGS but also environment and development.
The project ultimately pursues low-carbon energy supply which is one of the key medium-term goals for the EWG and among the key components of the Energy Security Initiative. |
TILF/ASF Justification |
Marine energy generation is a nascent energy sub-sector. The potential is high, as are the costs of development, installation, licensing, maintenance and engineering. To create enabling environment for the expansion of marine energy generation and to share the risks between private and public stakeholders, public intervention is needed. Various support measures and investment incentives in compliance with international trade rules may be designed. It is crucial that the surrounding debate involves developing economies from the early stages to ensure that the benefits of this type of clean energy are widely understood and shared.
The Pacific historically provided vital channels for trade and economic exchanges among the peoples of the region. In the foreseeable future, it may also offer huge and predictable resource for renewable energy. This resource largely lies in the near-shore waters of the Asia-Pacific developing economies.
This project will target APEC developing economies by inviting up to two representatives of travel eligible APEC members to attend the conference, by encouraging their active participation and interaction with the speakers/presenters and by disseminating the project output. |
Beneficiaries and Outputs |
Direct beneficiaries include government, private sector and academia. It is envisaged that they will benefit from the projects outcomes in various ways:
· experienced operators/developers of the renewable energy solutions (marine and wind energy) will benefit from exposure of their success stories to an APEC-wide audience comprising dynamic developing and developed economies;
· private sector stakeholders/investors (both in the energy and financial sector) will learn about investment opportunities with respect to energy efficient technologies and products; it’s important to involve oil & gas companies because there is currently little experience in maintenance of offshore facilities and costly infrastructures from the oil industry (ships, platform equipment) have to be used;
· Regional Equipment Manufacturers and research & development entities will benefit from exploring wider perspective for commercial development and operation of their marine energy related technologies and products;
· policymakers (in the ministries of energy, economic development and the environment, investment promotion agencies firstly in developing APEC economies) will receive a valuable input for setting up a conducive policy to enable innovative energy solutions to enter the market; in particular, they will learn how public intervention may help sharing the risks between private and public stakeholders.
Indirectly, in case that the project encourages uptake of marine energy technologies, energy consumers and environmental groups will benefit from a greener and cost-effective energy supply. |
Dissemination |
The conference proceedings and the main project report will be presented to an EGNRET and EWG meeting and made available for download from the APEC Meeting Documents Database and Publications Database as primary source. The main report will also be advertised via EWG and/or EGNRET web sites and the APEC Environmental Goods and Services Information Exchange (EGSIE) through targeted media releases and hyperlinks. The project steering committee will give special consideration to disseminate the report to APEC business community via EBN and ABAC.
The target audience will mainly include the beneficiaries identified in subsection 11 above. Subject to additional sponsors’ funds, a limited number of “paper” report will be circulated to the beneficiaries.
There is no intention to sell outputs arising from this project. |
Gender |
The project does not aim to explicitly benefit men or women. However, from the early stages of this project women were included in planning and management. Project Overseer is assisted by two female officials of the Ministry of Energy of the Russian Federation.
To ensure that no gender is disadvantaged, the project steering committee will encourage equitable participation by men and women at all steps of the project. Sex-disaggregated data may be applied for project assessment, i.e. conference attendance. The selection of consultants, conference speakers will be organised in an unbiased environment irrespective of gender. Besides, Project Overseer will take care to ensure that the workshop and all related administrative arrangements are executed in a gender-neutral manner, and in particular in a manner that does not disadvantage women. Women from APEC economies will be targeted as conference participants and presenters.
It is expected that the conference output would benefit all members of the private and public sector engaged, regardless of gender.
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Work Plan |
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Timeline |
Action |
Description |
Output |
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January-February 2012 |
Select and approve consultants to undertake review/stocktake and prepare the main (final) report. |
The project steering committee will select and approve consultants. A candidate for the lead consultant job is Mr. Martin Wright, Director of Fraenkel Wright Ltd. and former CEO of Marine Current Turbines Ltd. |
Contracts with consultants. |
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February-April 2012 |
Review of marine renewable energy technologies and stocktake of successful deployment models. |
Consultants will be tasked to undertake:
· A review of marine renewable energy technologies available worldwide;
· Stocktake of successful deployment models for marine energy technologies, with focus on marine currents and tidal waves;
· Assessment of the potential of marine energy generation in APEC region and its economic effects, pre-requisites for wider commercial application. |
Interim report with the findings of review and stocktaking exercise. |
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March-April 2012 |
Develop conference agenda, select and approve speakers. |
Conference agenda will be structured along the lines of the review and stocktake. Speakers will partly include consultants and volunteer representatives of APEC economies identified via EGNRET/EWG channels. Since some of the EU members have accumulated significant experience in marine energy R & D, the project steering committee may opt for inviting experts from the European Ocean Energy Association and private European companies (subject to APEC members’ consent). |
Conference agenda, invitations to speakers and moderators. |
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April 2012 |
Work out administrative arrangements for the conference. |
The project steering committee will work out the administrative arrangements to hold the conference in Russia and will keep liaising with the APEC Secretariat to ensure the participation of travel eligible members. |
Administrative information for participants, arrangements for travel eligible economies. |
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May 2012 |
Hold two-day conference. |
The conference will include speakers’ presentations and panel discussions. Besides travel eligible participants, EGNRET and EWG members, R&D institutions (incl. APERC) and private sector stakeholders (incl. APEC Energy Business Network, ABAC) from APEC economies will be invited to attend. |
Two-day conference in accordance with the agenda. |
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June-August 2012 |
Finalise and disseminate the main report of the project. |
Consultants will prepare the main report, largely based on the interim consultants’ report, the proceedings of the conference and feedback from participants/beneficiaries. It will contain a review of the technology, including its benefits, and stocktake of successful deployment models with specific recommendations to APEC economies.
It is envisaged that the report, available in electronic and limited “paper” versions, will be a useful reference material for developers and policy makers in APEC economies. |
Main report, published and electronically disseminated.
(Note: the Project Overseer to send a draft report for review to the APEC Secretariat to ensure that the publications, logo and copyright guidelines are observed). |
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September 2012 |
Complete report with evaluation for the APEC Secretariat. |
The project steering committee will review and evaluate previous stages of the project and prepare a final report in line with the APEC project Guidebook. |
Project completion report to the APEC Secretariat. | |
Risks |
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Timeline |
Action |
Risk |
Mitigation |
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January-February 2012 |
Select and approve consultants to undertake review and stocktake. |
Delay or failure in identifying proper consultants. |
The project steering committee will work closely with the lead consultant and EGNRET members to ensure that proper consultants are selected in a timely manner. A list of candidates will be developed in December 2011. |
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Timeline |
Action |
Risk |
Mitigation |
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February-April 2012 |
Review of marine renewable energy technologies and stocktake of successful deployment models. |
Delay in consultants’ work and preparation of an interim report.
Lack of focus in the review and stocktaking exercises.
The interim report containing incoherent and inapplicable findings. |
The consultant selection process will put a strong emphasis on the expertise with issues identified in subsection 2 and focus on marine energy. The project steering committee and consultants will work as one team with regular coordination (at least weekly conference calls, e-correspondence). |
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March-April 2012 |
Develop conference agenda, select and approve speakers. |
Speakers unavailable.
Delay in releasing draft conference agenda. |
The Project Overseer will work closely with consultants, co-sponsors and relevant APEC fora to identify a pool of alternate speakers in advance. |
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April 2012 |
Work out administrative arrangements for the conference. |
Prolonged approval of the self-funded component of the project budget which will be allocated from the Federal Budget of the Russian Federation.
Delay in communicating administrative arrangements to the participants.
Increase of budget resulting from the change of the Conference venue. |
While minor delays will be acceptable, strict deadlines will be set by the Project Overseer to encourage advance decisions on major budgeting issues. An example may be release of the administrative information for participants not later than 1 month in advance of the event.
Sponsors’ funds may be used to offset the increase of the budget. Otherwise, it will be reprogrammed in advance. |
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May 2012 |
Hold two-day conference. |
Low attendance.
Low interest from APEC member economies. |
To ensure the expected attendance, the project steering committee will regularly communicate with the co-sponsoring economies, EGNRET and APEC Secretariat (for travel eligible economies). It will follow up with economy representatives to ensure that nominations are received in time. |
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June-August 2012 |
Finalise and disseminate the main report of the project. |
Low interest from the project beneficiaries and insufficient quality of project output. |
The risk can be managed by specifically identifying stakeholders within each APEC economy that would benefit from receiving this information. |
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September 2012 |
Complete report with evaluation for the APEC Secretariat. |
Delay in preparing the completion report. |
Similarly to previous steps, the Project Overseer will guide the steering committee and ensure that there is enough time in advance to complete this task. | |
Monitoring and Evaluation |
The project steering committee will be able to monitor the implementation of the project by means of:
· regularly ensuring that the work plan tasks are completed in a timely manner,
· maintaining close contact with the consultants to prevent deviation of the
interim results and conference agenda from the project objectives,
· reviewing early responses from those invited to participate in the conference.
To evaluate the success of the project, the following indicators may be used:
· number of the conference participants,
· number and profile of private sector companies that would support the project
through financial sponsorship or intellectual input,
· quality and usefulness of the conference, assessed through an evaluation
form to be filled by the conference participants,
· feedback from APEC economies conveyed at EGNRET and EWG meetings or
recorded in APEC documents (for example, number of new occurrences
of “marine energy”).
In the longer period, decisions to launch feasibility studies or projects in the field of marine energy in individual APEC economies will serve as the ultimate measure of success. |
Linkages |
Engagement. Within APEC fora other than EWG, consultations will be held with the newly established Oceans and Fisheries Working Group, Industrial Science and Technology Working Group and the Committee on Trade and Investment which is responsible for the Environmental Goods and Services (EGS) programme. Outside of APEC, European Ocean Energy Association may be invited to share EU members’ experiences in the field.
Previous work. This proposal builds on self-funded project “Use of energy resources of near-shore areas of the APEC economies as a stable source of green power in the region” which was implemented by the Russian Federation in 2010 The main outcome of the project indicated that both the technology to produce commercial equipment for marine current energy generation and climate/environmental conditions exist in APEC economies. As the next step, it was outlined that further study and dissemination of successful deployment experience is needed.
The proposal is also complimentary to a number of other proposals put forward by EWG and ISTWG, including those introducing smart grids to better manage renewable energy (EWG 01/2009S “Using Smart Grids to Enhance the Use of Energy Efficiency and Renewable Energy Technologies”, ISTWG ??/2011A “Cooperative Study on Efficient Renewable Resources Integration and Distribution Technologies for Smart Grid Construction”).
APEC’s comparative advantage. APEC is well positioned to undertake this project because it provides a flexible platform to bring together public and private sector interested in low-carbon, green energy supply. Through EWG and EGNRET, APEC addresses renewable energy in a wider economic context, beyond just technology solutions. Besides, APEC Support Fund is a flexible funding mechanism which will facilitate sharing the renewable energy benefits between developed and developing economies. |
Sustainability |
In the longer term, marine energy could become a much more important part of the world and APEC energy portfolio and, hence, will remain on the renewable and alternative energy agenda. Now, marine energy generating technology is still in the early stages of development. It’s important at this stage to raise awareness of all potential stakeholders and collate widely dispersed information in a single resource. The main report of the project is expected to meet demand for such resource and will be relevant in a medium term, up to several years. The Project Overseer will ensure that the report is downloadable from the Internet after completion of the project.
This project, once completed, will provide a strong foundation to ensure that APEC strategic frameworks related to green growth and sustainable energy don’t overlook marine energy as an important and commercially feasible renewable energy option alongside solar, wind, thermal energy, biofuels.
The consultants will have at least 2 months to develop APEC-specific recommendations, based on the preliminary review findings and participants response. The conference will be designed to identify this response. PO will ensure that the consultants are highly qualified to carry out this job. There is reason to expect that Mr. Martin Wright is capable of leading this effort as he used to be CEO of Marine Current Turbines Ltd., a prime mover in marine current energy which developed the first (and apparently the only one) marine current energy facility in commercial operation.
Meanwhile, another “physical” event to discuss recommendations is not feasible due to budget constraints. Revision of budget could result in lower quality outputs. Instead, the communication will be maintained over e-mail and video conferences if required.
It may be also expected that the project triggers more practical interest in exploring marine energy, in particular, in developing APEC economies with access to the Pacific vast waters and currents. The project steering committee will be able to trace this interest via the feedback from the conference participants and the EGNRET network. In case of substantial interest, more focused follow-up activities will be considered for future projects. These may include visits and presentations to the regulatory and investment authorities of APEC developing economies, facilitated discussions with the interested private sector players etc. |
Project Overseers |
Project Overseer: Mr. Talyat Aliev.
Mr. Aliev is currently the Deputy Director of International Cooperation Department in the Ministry of Energy of the Russian Federation. His experience in the public service spans more than 30 years, including 7 years in the energy sector on various leading positions. In his current capacity he oversees Russia’s engagement with multilateral and regional organizations, such as APEC, ASEAN, GECF, OPEC, OSCE, etc. as well as bilateral projects and initiatives.
Tel.: + 7 (495) 631-86-94
Fax: +7 (495) 631-81-50
E-mail: AlievTZ@minenergo.gov.ru
Project Overseer is assisted by Ms. Maria Bunina, Consultant in the International Cooperation Department , Ministry of Energy of the Russian Federation. Ms. Bunina was an EWG member in 2009-2011 and has experience in overseeing APEC projects.
E-mail: BuninaMV@minenergo.gov.ru
Project Overseer is assisted by Dr. Svetlana Beznasyuk, who is a Chief Expert in the International Cooperation Department in the Ministry of Energy of the Russian Federation. Dr. Beznasyuk is currently the principal Russian point of contact for the EWG.
E-mail: BeznasyukSA@minenergo.gov.ru
Candidate for the lead consultant job is Mr. Martin Wright, Director of Fraenkel Wright Ltd.
Mr. Wright is a co-founder and former CEO of Marine Current Turbines Limited, the developer of the world's first (and largest) commercial grid connected tidal turbine.
He has an M.A. (Hons) in Economics form Edinburgh, and an M.Eng in Petroleum Engineering form Heriot-Watt. Mr. Wright has corporate finance skills and commercial experience spanning a wide breath of industries developed whilst working as a venture capitalist, and as a director of investee companies. Renewable Energy had been a particular interest for a number of years prior to becoming involved with Marine Current Turbines. The company was developed from a start up in 2002, and since then it has designed two prototypes, 'SeaFlow', and then 'SeaGen'. To date circa £38m funding has been raised including investments from Siemens, EDF, The Carbon Trust, Bank Invest, Tridos and other overseas investors. The 1.2MW SeaGen, located in Northern Ireland’s Strangford Lough, is the only tidal current turbine anywhere in the world to feed power regularly into a local electricity grid on a commercial basis. It has been operating since 2008 and has the capacity to generate electricity for the equivalent of 1500 homes.
Mr. Wright is a Director at the non-profit Renewable Energy Association where he also acts as Deputy Chairman of the Ocean Energy Group.
E-mail: martin.wright@fraenkelwright.com |
Cost Efficiency |
The level of self-funding is more than 50%. The proposing economy intends to contribute a substantial proportion of self-funding to finance labour and hosting expenses, while APEC funds will be spent primarily to enable the participation of travel eligible economies and partly cover consultant fees.
The project steering committee will also work towards engaging sponsors from the private sector. Candidates for sponsorship include investment banks, financial companies, oil and gas companies that may be interested in long-term investment into renewable energy generation. The private sector sponsors’ money may be used to increase the attendance (and, hence, hosting costs), recruit additional labour and consultants, enhance the quality and quantity of publications.
As an option to maximise participation in a cost-effective way, the project steering committee will consider hosting the conference back to back with an EGNRET meeting.
Project outputs will be mostly disseminated in electronic form with only a limited number of hard copies.
The project value will be maximized by selecting consultants with required experience and deep knowledge of the sector. |
Drawdown Timetable |
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Direct Labour |
APEC funds for direct labour costs as shown in the table (240 hours) will cover part of the consultants fees and the administration (coordinator’s fees) of the project. It is proposed that this minor APEC-funded contracts valued at US$16,800 are concluded with Fraenkel Wright Ltd. and staff of the Higher School of Economics (National Research University), Moscow, who provided consultation to develop this project and are instrumental to ensure the sustained results. |
Waivers |
It is anticipated that active participants may request advance payment of travel expenses. Travel eligible participants will represent beneficiaries who include government officials from developing economies. Hence, waiver is requested to fund travel of government officials if they are nominated as active participants. |
Are there any supporting document attached? |
No
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Attachments
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