PDF《DOCUMENT OF THE EUROPEAN BANK》

DOCUMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ENERGY SECTOR STRATEGY As approved by the Board of Directors at its Meeting on

10 December

2013 TABLE OF CONTENTS Page ABBREVIATIONS.

1? EXECUTIVE SUMMARY 3? 1.? STRUCTURE, AIM AND SCOPE 5? 1.1? Structure.5? 1.2? Aim 5? 1.3? Scope.5? 2.? PAST PERFORMANCE HIGHLIGHTS 8? 2.1? Portfolio development.8? 2.2? Policy dialogue, technical cooperation and donor support 13? 2.3? Transition impact of the Bank'

s portfolio 15? 2.4? Assessment of transition challenges

2013 17? 2.5? Evaluation 21? 3.? SETTING THE CONTEXT C INVESTING IN AN UNCERTAIN ENVIRONMENT... 22? 3.1? Climate Change.22? 3.2? Energy systems 24? 3.3? Renewables C a technology coming of age.25? 3.4? Natural gas markets.28? 3.5? Changing dynamics in the hydrocarbon sector.30? 3.6? Economic and financial crises 31? 3.7? The Bank'

s new region.31? 4.? THE TRANSITION CHALLENGE C FUELLING A SUSTAINABLE FUTURE.34? 4.1? Striking a balance C the Bank'

s role.34? 4.2? Defining transition in the energy sector.35? 4.3? Building energy markets and best practice 36? 4.4? The role of hydrocarbon production in a market-oriented economy 36? 4.5? The low-carbon transition.38? 4.6? Resource efficiency.39? 4.7? Energy security 40? 4.8? Affordable energy 41? 5.? OPERATIONAL APPROACH 43? 5.1? Organising theme.43? 5.2? Energy Efficiency and Demand Side Measures.44? 5.3? Building deep and liquid energy markets 46? 5.4? Rethinking energy systems 48? 5.5? Low carbon transition 49? 5.6? Cleaner energy production and supply;

fossil-fuelled generation 53? 5.7? Setting standards and best practice 57? 5.8? The wider role of the energy sector 61? 5.9? Leveraging investments, policy dialogue and technical assistance 62? 5.10? Key partners.64? 5.11? Strategic Orientation.65? ANNEX

1 C ACTIVE DONORS AND MULTI-DONOR FUNDS IN THE ENERGY SECTOR . 68? ANNEX

2 C ASSESSMENT OF TRANSITION CHALLENGES.69? ANNEX

3 C EBRD COUNTRY GROUPINGS 71?

1 ABBREVIATIONS ADB Asian Development Bank. AfDB African Development Bank. BAT Best available techniques. BiH Bosnia and Herzegovina. CCGT Combined Cycle Gas Turbines. CCS Carbon Capture and Storage. CCU Carbon Capture and Use. CHP Combined Heat and Power. CO2 Carbon dioxide. CSO Civil Society Organisation. EC European Commission. ECSEE The Energy Community for South East Europe. EHSS Environmental, health and safety and social. EITI Extractive Industries Transparency Initiative. EIB European Investment Bank. ERRA Energy Regulators Regional Association. ETC Early Transition Countries (as defined by the Bank). EU European Union. EU ETS European Union Emissions Trading Scheme. EvD The Bank'

s Evaluation Department. GDP Gross Domestic Product. GGFR Global Gas Flaring Reduction Partnership. GOGC Georgian National Oil Company. GHG Greenhouse gas. Gt Gigatonne. IEA The International Energy Agency. IED EU Industrial Emissions Directive, (2010/75/EU). IFC International Finance Corporation. IFRS International Financial Reporting Standards. ICER International Confederation of Energy Regulators. JBIC Japan Bank for International Cooperation. JI Joint Implementation. kW Kilowatt (one thousand watts).

2 KfW Kreditanstalt für Wiederaufbau (German Development Bank). LNG Liquefied natural gas. MEDREG Mediterranean Energy Regulators. MtCO2 Million tonnes of CO2 MW Megawatt (one million watts). NER New Entrant Reserve. NOCs National Oil Company. OECD Organisation for Economic Cooperation and Development. OPIC Overseas Private Investment Corporation. SEC Securities and Exchange Commission. SEI The Bank'

s Sustainable Energy Initiative Phase III. SEFF Sustainable Energy Financing Facility. SEMED Southern and eastern Mediterranean. SRI The Bank'

s Sustainable Resource Initiative (BDS13-052). STEG Solar Thermo-Electric Generation. TI Transition Impact. TIMS Transition Impact Monitoring System. toe Tonne of oil equivalent. TPA Third Party Access. TWh Terawatt hours. UN United Nations. UNFCCC United Nations Framework Convention on Climate Change. WEO

2012 World Energy Outlook 2012, published by the IEA.

3 EXECUTIVE SUMMARY Economies run on energy;

it fuels all commercial and public life. The energy sector is intensively regulated and in many countries the state is heavily involved. However, private sector engagement is essential to improve efficiency, strengthen markets and meet the investment and operational challenges the sector faces. Countries that are major energy producers face the challenge of managing their natural resource endowments responsibly and ensuring that the benefits are distributed sustainably and equitably. Nearly all energy sub- sectors have large environmental and social impacts and the sector is one of the largest contributors to global greenhouse gas emissions. Combined, these characteristics place the energy sector at the heart of EBRD'

s mandate to foster the transition to market-oriented economies and to promote environmentally sound and sustainable development. EBRD has operated in the energy sector since

2006 in accordance with its existing Energy Operations Policy, during which period it has invested EUR 8.6 billion in

172 projects. This Energy Strategy restates EBRD'

s role in the energy sector for the period from

2014 to end 2018, taking account of the major developments that have occurred in the past seven years. The Energy Strategy sets EBRD'

s general direction and identifies how it will prioritise its activities in the sector;

the detailed focus for each country and region is set, within the parameters of the Energy Strategy, in the Country Strategy prepared for each country of operations. Energy efficiency. The Energy Strategy is built around energy efficiency. It is part of EBRD'

s comprehensive response to the challenge of moving its countries of operations to a sustainable model for the production and consumption of energy: the Sustainable Energy Initiative (the SEI). The SEI brings together investments, technical cooperation and policy dialogue across the full range of EBRD'

s operations to increase energy efficiency and promote renewable energy. Under this coordinated umbrella EBRD supports a sustainable energy sector on both the demand-side, for example through investments in industrial efficiency or development of building codes, and the supply-side, for example financing windfarms or smart grids. The SEI ensures that EBRD takes a holistic and integrated view of energy across the entire economy, using two complementary channels: reducing energy consumption while supporting efficient and sustainable energy production. The Energy Strategy therefore fits within the SEI by defining the scope of EBRD'

s operations in the energy sector itself, focusing on the sustainability of the production, generation, transmission and distribution of energy, while other elements of the SEI promote sustainability in the use of energy. Transition challenges. The Energy Strategy is rooted in EBRD'

s transition mandate and its direction is set by the persistent transition challenges in its countries of operations. Energy markets are still small, prices are not cost-reflective and private participation is limited. Environmental costs are not reflected in prices and carbon intensity remains high. As a consequence and as a legacy of decades of a command economy, the level of energy and other resource efficiency is low and many actors fall short of best international standards. The scope for cross-border trade in energy is often restricted by a lack of infrastructure, which limits energy security. Many countries also suffer from the damaging effects of explicit or implicit energy subsidies that distort economic behaviour and burden governments'

and public companies'

balance sheets. Some ........