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Improving the structural framework for a jointly collective undertake investments in sustainable energy

Tirana | 14 December 2014

ACERC announce the Project in Efficient Energy Use and Planning

Albanian Centre for Energy Regulation and Conservation – ACERC is pleased to announce the undertake of the Project in Efficient Energy Use and Planning. Project focused in the improving the structural framework for a jointly collective undertake investments in sustainable energy. An engagement that came within framework of its overall main mission aiming the give a qualified contribute to the fully liberalisation of energy market and promotion the efficient uses of energy resources.

State of the background and relevant challenges

The insufficiently level of investments in sustainable energy on the urban projects is interconnected with a several issues that dilute the value of the jointly collective undertake investments. The complexity of the regulatory framework often hinder a clear oversight and make difficult for citizens to judge the feasibility of implementing specific renewable energy sources in a collective undertake.

In regard, the lack of large-scale successful flagship projects – linked with incapacity of the public and private sector in their structuring – reverse all their consequences on the trust of financiers and investors in their economic viability. Therefore, a structured framework that facilitate the willingness to be involved and investment capacity in the sustainable energy sector is require. The structural framework that is going to facilitate the drawn of new instrument based the develop of new financing products and practices that respond to the constraints of the market.

Proposal concept

Objectives

The project idea is to create a framework where basic technological benchmarks (performance of a sustainable energy solutions), physical parameters (the building form or density within urban surrounding conditions) economic parameters (cost, incentives, subsidies) and regulatory restrictions (for historic cities or otherwise restricted environments) are confronted with each other - enabling a clear individuation of the feasible options.

This framework should work first on the scale of an individual area with possibilities to verify the effectiveness of the regulatory framework and role of incentives by comparing different areas with each other. The all for arriving in the outline for the choice between individual and collective solutions that emerge by the confronting of these parameters within the same framework. The establishing the necessary collective scale to render these choices more feasible would be the aim of a final outcome.

Approach of the activities

Proposals in its core focusing to connect sustainable energy solutions to durable investment solutions. At the moment, investments in sustainable energy - positive in themselves - often do not reach a logical economy of scale because are relegate with the individual initiative inclined to focus on their own direct needs and the involvement in a larger collective is perceived as problematic. Facilitating the choice between an individual solution and a collective solution is therefore the start point.

Secondly, there is no real platform to confront the effects policy and regulation on the application of sustainable energy solution. Once brought together in a model that indicates or outlines useful economies of scale and the durability of investments, a clear framework will emerge where the effectiveness of policies and regulations can be tested.

Thirdly, the tendency of government agencies to act as monolithic presences - resulting in a distance between citizen and government - should be overcome. Top-down policy will remain necessary but will be more effective if there are well-informed attempts of bottom-up initiative. The two mechanism have to learn how to coexist. The undertake of the project at least in a pilot area will help to understand how existing solutions and the new one could work together in the same environment. The model evolved will be developed in a website platform provider for a further dissemination.

Impact

The top down and bottom up mechanism will have to meet the overcome limitations of economies of scale. This kind of initiative should have a footprint in the public domain at least in two direction:

Firstly, the here platform will aim to facilitate the creation and the boost of the collectives and private interests - that would occur with a profit scheme. It has to acquire a certain type of authority that cannot be easily obtained by a private company. All will follow with the increase the share of funds invested into sustainable energy or the develop specific funds or investment products.

Secondly, it should be a publicly supported initiative because its underlying motive should create durable economies of scale. The overcome of which will due to the creation of a new relation between governments and strongly incentivized collectives of citizens instead of a distance between citizen and state. Process that will follow in ongoing with the improvements of the legal frameworks based on the market fundaments.

Proposal ambitions and progress beyond the state of the art

This project-idea is based on the availability of existing technologies and data. It will base on the General Open Data such as population density, inhabitants per building, non-built surface, available roof surfaces of (public) buildings, etc.; Technical Data & Benchmarks of smart-grids, smart meters, renewable energy sources already present; Agreed values for Wind, PV and other renewable energy sources on a territory.

A combination of specific datasets should indicate a potential for a certain area or lack thereof the technological challenge will combining the intelligence of datasets with the potential of the user interface to engage a larger public to visualize the underlying mechanism of their involvement in investing in sustainable energy solution. Since technological solutions already exist, the financial needs involve bringing these solutions together, backed up by access to data sets and official data that a private company decline to provide.

Project structure

WP1 – Energy Efficiency - Market Uptake

Objective: Improving a jointly collective overtake investment in sustainable energy

Description of the work: Improving the legal framework of financeability and attractiveness of investments in sustainable energy

Duration: 36 months

Activities:

-A1.1 – The create a database of:

-A1.1.1 – Basic technological benchmarks (performance of a sustainable energy solutions);

-A1.1.2 – Physical parameters (the building form and the density within urban surrounding conditions);

-A1.1.3 – Economic parameters (cost, incentives, subsidies);

-A1.1.4 – Regulatory restrictions (for historic cities or otherwise restricted environments);

-A2.1 – The confronting with each scenery (enabling a clear individuation of the feasible options).

Deliverable:

-D1.1 – The implementation on the scale of each individual area:

-D1.1.1 – By the verifying of the effectiveness of the regulatory framework (comparing different areas with each other);

-D1.1.2 – By the verifying of the effectiveness of the incentives (comparing different areas with each other).

-D1.2 – The outline for the better solution:

-D1.2.1 – By confronting these parameters within the same framework;

-D1.2.2 – By confronting the individual solutions and collective solutions emerged.

-D1.3 – The establishing of the necessary collective scale (as the final outcome).

Timetable and GANTT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In regard the Dr. Lorenc Gordani state “the here initiative came in following of the experience that seen personally engaged in the formulating of sceneries and the offering of the expertise on the practice of the overall player within framework of competitive market model in an advance integrate network. A purpose that with the advance of the internal energy market (IEM) makes inevitable a complex analysis related with the upcoming of new concerns, regard the integration of the intermittent resources on national level and the reaches of the climate goals, with a prominent reverse effect on all the strategic development of the IEM.

Therefore, the here project in the Efficient Energy Use and Planning came in framework of the build-up of the update sceneries foreseen for afford of sustainable growth on energy sector in the Western Balkans (WBs) and notably the Albania. The all keeping in focus a long-term view by 2030 and 2050. The all within the specific action on the improving the structural framework for a jointly collective undertake investments in sustainable energy. In more, the profile of the here programme will help the developing of the capacity and will stimulate a better settle of the institutional operations of the ACERC to support the strengthen, adaptation and maintain capacity over time and achieve its goals in both the short and long term.”

Therefore, the Albanian Centre for Energy Regulation and Conservation – ACERC for all here above proposed remain open to a favourable deliberation regard creation of a consortium as Leader, Co-leader or Associate with any organization regular registered as legal entities in domestic or regional and European Union member states. In regard of all above, we will beg to feel free for taking contact at the info@albaniaenergy.org for any further aspect of related interest.

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