Transcript Why the Energy Sector is Key for Liberia

National Inter-Ministerial Dialogue on
Climate Change
Assessing and Developing Policy Options for
Addressing Climate Change Mitigation in
the Energy Sector of Liberia
Augustus V. Goanue
National Consultant
Cape Hotel
Monrovia, Liberia
June 25, 2009
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Why the Energy Sector is Key for Liberia
•
It is cross-sectoral and serves as a vital input for social,
economic and political development;
•
Propels industrial and commercial activities – mining,
agriculture, manufacturing, information & communication
technologies, small & medium enterprises etc.;
•
Enhances the delivery of basic social services –health,
education, water & sanitation, etc.;
•
Affects the environment due to the emission green
house gases (GHGs).
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Description of the Energy Sector
Annual Petroleum Products Consumption Trend in Liberia,
excluding petroleum-based lubricants, etc. (2000 – 2008)
• The sector is dominated by
• Very limited use of modern
renewable energy
technologies;
• The GOL has for the first
time formulated a National
Energy Policy (NEP) as the
first step to reforming and
ensuring the viability of the
energy sector
Annual Petroleum Products Consumption Trend (2000 - 2008)
Volume in millions of US gallons
the use of woody traditional
biomass, petroleum
products and electricity;
70
59
57
60
65
49
50
42
40
29
30
27
23
20
20
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
Year
Source: LPRC (2000 – 2008 Annual Reports)
Energy Sector GHG Emissions in 1999
Greenhouse Gas Source and Sink
Categories
Emission (Gg)
CO2
3,696
C
H4
36
N2O
NO
37
50
CO
x
173
NMVO
C
32
Source: Environmental Protection Agency of Liberia, 2007
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Description of the Energy Sector Cont.
Share of Energy Production Per Source (2008)
Category
• The energy sector share of
GDP is about 0.8%
Share (%)
Electricity Production & Industrial
Activities
Fossil fuel
90
• The sector also contributes
considerably to: employment,
trade, fiscal revenues, food
security, and regional and subregional development.
Hydro
9.7
Solar
0.3
Charcoal
84.5
• Excessive use of woody
biomass gives rise to
deforestation, forest
degradation, indoor air
pollution.
Firewood
15
Fossil fuel (kerosene & LPG)
0.5
Transport
Fossil fuel
100
Cooking and Heating
Domestic Lighting and others
Fossil fuel (kerosene)
55
Candles
37
Batteries
8
Source: Center for Sustainable Energy Technology
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Proposed Mitigation Options for the Energy Sector
• Government, donors, and private investors should go
beyond demonstration projects and scale up the
commercial application of renewable energy
technologies – hydro, biomass, solar and wind;
• Active participation in the Clean Development
Mechanism (CDM) and global carbon market by both
public and private sectors;
• Government should set up regulatory framework for
promoting energy efficiency;
• Government should support transport policy and
programs that promote biofuels for transport and
mobility options.
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Proposed Mitigation Options Cont.
•
Government and its development partners should support
the new Rural and Renewable Energy Agency (RREA) to
contribute to more investment in renewable energy
technologies;
•
Government should provide fiscal and tax incentives for
renewable energy project developers and businesses;
•
Government and its partners should provide funding for the
implementation of the National Energy Policy (NEP) to meet
the nation’s targets for renewable energy, energy efficiency
and emissions reduction.
An estimated US$1.3 billion investments in various
clean (renewable) energy technologies and energy
efficiency are needed over the next 6 years to address
the effects of climate change across the energy sector.
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Key Issues for Assessing Investment and
Financial Flow (I&FF) for the Energy Sector
• Limited institutional framework human resources, and
relevant tools;
• Inadequate baseline data and other relevant
information;
• Need to increase networking among existing energy
institutions including those that are inherently linked to
the energy sector pending the full functionality of the
RREA, NEC and other institutions proposed by the
NEP;
• Collection of baseline information on energy sources,
services, consumption patterns, and monitoring.
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Recommendations for Conducting Assessment
of I&FF for the Energy Sector
The Government should take the following actions:
• Use the newly re-organized National Energy Committee
(NEC) as institutional framework for conducting the I&FF;
• Set up a central repository for information on energy sector
investment and financial flow;
• Establish a technical sub-committee within the NEC to
maintain regular linkages and coordinate with key
stakeholders in I&FF;
• Introduce special levies on transport sector, petroleum
companies, and forestry sector for more investments in
renewable energy technologies.
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THANK YOU
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