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Timor-Leste Government of Timor-Leste Rural Energy Policy for Timor-Leste Final Version Prepared by: Detlef Loy (International Consultant) Lino Correia (Local Consultant) UNDP Country Office of Timor-Leste in collaboration with the Secretariate of State for Energy Policy Finalised: July 2008
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Page 1: Rural Energy Policy for Timor-Leste

Timor-Leste Government of Timor-Leste

Rural Energy Policy for Timor-Leste

Final Version

Prepared by:

Detlef Loy (International Consultant)

Lino Correia (Local Consultant)

UNDP Country Office of Timor-Leste in collaboration with

the Secretariate of State for Energy Policy

Finalised: July 2008

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Introduction

Timor-Leste is one of the least developed countries in the world. Among other infrastructural deficits, its supply of modern energy to rural areas is minimal. Within this mainly agrarian society, most households live on fuelwood use for cooking and rudimentary application of kerosene or plant oils for lighting. Access to electricity is virtually unknown in large areas of the country. Isolated grids with diesel generators can only be operated during evening hours, while the high price for imported oil derivates and the low purchasing power of the population requires extensive state subsidies. This despite the fact that Timor-Leste itself has turned into an oil-exporting country since a few years and a significant potential of renewable energy resources has remained untapped so far. Improvement of living conditions and the strengthening of income generating activities in rural areas are fundamental for a stable, harmonious and democratic development in Timor-Leste. Having this in mind, the UNDP in recent years has supported efforts to expand the use of different indigenous renewable energies and to introduce more efficient cooking stoves. Besides implementing a number of pilot projects, it had been agreed with the Government of Timor-Leste to also assist in the design of a comprehensive Rural Energy Policy. For such purpose, the UNDP has mandated the consultant Detlef Loy (Berlin/Germany) to analyse the existing energy situation in rural areas and on the wider national level and elaborate recommendations for future policy interventions in order to allow for a sustained rural energy provision, using to a large extent locally available energy sources (see terms of reference in annex),. The task was carried out in a period of three months between January and May 2008 and received additional support by the local consultant Lino Correia. Counterpart to this exercise was the newly formed Secretariate of State for Energy Policy in the Government of Timor-Leste. The work consisted initially in collecting and reviewing all available studies and reports. Parallel to this process, a number of interviews were carried out with Government officials, representatives of non-governmental and donor institutions, the private and academic sector, energy suppliers and other relevant stakeholders. Site visits were organized to pilot projects on biogas generation, solar pv application, hydropower, energy-efficient cooking stoves as well as to villages with isolated diesel-powered grids in various provinces of the country. During those visits local administrators as well as regular users of those technologies have been questioned to get first-hand information. Several group discussions and advisory sessions covering various aspects of energy supply for rural areas were held with the staff of the Secretariate. Two workshops were organized. The first on March 3, 2008 was attended by about 35 participants and included presentations on different activitities in the area of renewable energy applications, supported by different actors and agencies. The international consultant outlined the general energy situation in Timor-Leste and highlighted first observations and recommendations for a future rural energy policy.

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With the invitiation to the second workshop, the draft of the rural energy policy was widely disseminated for further feedbacks. The workshop on May 17, 2008 concluded the consulting process by presenting the findings and recommendations for discussion among all interested parties. To the extent possible, oral and written comments have been reflected in the following revision process for the final version of the policy paper. As side-effect of this effort, numerous studies and reports have been collected and reviewed in order to take advantage of previous experiences. All those documents have been made available on CD-ROM to the Secretariate as well as to the UNDP office in Dili. Some relevant work papers that have been elaborated during the consulting process are included in the annex of this report. Time for covering such a complex issue as rural energy supply was very short. The consultants therefore concentrated on such applications and technologies that could directly affect living conditions by serving mainly cooking, lighting and communication needs of households and selected institutions. The vast sector of energy for additional income generation would need a much deeper involvement and could only be scratched at this point. As higher income is fundamental for the eradication of poverty, it is therefore recommended to give this issue broader coverage within a subsequent study. This report contains the rural energy policy as proposed by the consultants. Although following discussions within UNDP and with the Secretariate of State for Energy Policy, it does not necessarily reflect the position of these institutions. It is therefore only the basis for further discussion within the Government and the civil society of Timor-Leste. Contacts for further information: Mr. Pradeep K. Sharma UNDP – Poverty Reduction and Environment Unit UN House, Caicoli Street phone +670-331-2481 [email protected] Mr. Avelino Coelho da Silva Secretary of State for Energy Policy Palácio do Governo mobile +670-723-0086 [email protected] Mr. Detlef Loy UNDP Consultant Loy Energy Consulting Holtzendorffstr. 14 14057 Berlin phone +49-30-32303467 [email protected]

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Table of Contents Introduction ............................................................................................................................... 2

Acknowledgement..................................................................................................................... 5

Abbreviations and Acronyms................................................................................................ 6

Rural Energy Policy for Timor-Leste........................................................................................ 7

General Background.............................................................................................................. 7

Guiding Principles................................................................................................................. 9

Status of Rural and Renewable Energy Supply .................................................................. 11

General Objectives and Specific Targets ............................................................................ 14

Solid Biomass Resources .................................................................................................... 15

Biogas Programme .............................................................................................................. 19

Rural Electrification ............................................................................................................ 22

Hydropower......................................................................................................................... 24

Solar Lighting Programme .................................................................................................. 25

Other Renewable Energy Resources ................................................................................... 26

Institutional Setting and Regulation.................................................................................... 28

Improved Data Base ............................................................................................................ 31

Main Tasks and Timeline.................................................................................................... 33

ANNEXES .............................................................................................................................. 35

References and Technical Documents ....................................................................................

World Bank comments to the draft Rural Energy Policy........................................................

List of People and Institutions contacted during the Consultation Process ............................

1. Workshop, 3 March 2008....................................................................................................

2nd Workshop, 17 May 2008 ...................................................................................................

List of existing renewable energy pilot projects .....................................................................

Sucos with preference for Biogas application.........................................................................

Preferences for different RE Technologies for decentral electricity generation on Suco level .........................................................................................................................................

Solar Electric PV Projects in Timor-Leste..............................................................................

Report on Community Power Plants.......................................................................................

Comparison of Energy-efficient Stoves in Uganda and Timor-Leste.....................................

Projects funded by the Global Environment Facility in the field of Rural Energy and Rural Electrification ..........................................................................................................................

Terms of Reference .................................................................................................................

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Acknowledgement

We would like to thank all those that have contributed to this task with their information, opinions, suggestions, comments or just by providing for us all the assistance that was necessary to get a clear overview of the current status of energy uses and requirements in the rural area of Timor-Leste. We would specifically take the opportunity to mention kindly all the numerous persons that we had the privilege to meet during our field excursions and who helped us patiently with answers and advises to our endless catalogue of questions. It was a pleasure to share views with the Secretary of State, Mr. Avelino Coelho da Silva, and his team and we warmly appreciated their interest and enthusiasm in getting this work done and learning more about all energy-related aspects. We may also not forget the various experts that we had the fortune to meet in a long list of institutions, be it from the private sector, the Government, donors, non-governmental groups etc. They all were extremely kind and helpful, by sharing with us not only time for discussion, but also by providing material, attending our workshops, giving advise and reviewing the draft versions of this paper. Last – but not least – we would like to thank all those we had close contact with in the UNDP office of Dili for their very kind support and efforts, in all technical as well as logistical aspects.

Detlef Loy (international Consultant) Lino Correia (local Consultant)

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Abbreviations and Acronyms

ASEAN Association of Southeast Asian Nations

ATA Alternative Technology Association

CDM Clean Development Mechanism

CFL Compact Fluorescent Lamp

EDTL Electricidade de Timor Leste

ESMAP Energy Sector Management Assistance Progamme

EU European Union

FAO Food and Agriculture Organization

GEF Global Environment Facility

GoTL Government of Timor Leste

kW kilo-watt

LPG Liquefied Petroleum Gas

MDG Millenium Development Goals

NGO Non-Governmental Organization

REA Rural Energy Agency

TL Timor Leste

UN United Nations

UNDP United Nations Development Programme

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Rural Energy Policy for Timor-Leste

General Background

(1) The people of Timor-Leste have expressed their priority interest by stating in 2002 that “all towns and villages (should have) access to adequate and appropriate roads, transport, electricity and communications.” (National Vision for 2020).

(2) The GoTL has responded to this will of the civil society by formulating in the National Development Plan of 2002, approved by the Parliament in May 2002, that “the power authority will meet the needs for electricity throughout East Timor, thus supporting economic productivity and quality of life for all citizens, and pursue indigenous resources to displace imported fuels. .... Progress will rest heavily on the ability of the power authority to reach poorer regions and more distant districts to support agricultural and industrial development.” It further ruled that national self-reliance in power generation should be developed by exploiting indigenous energy resources such as natural gas, solar and hydro. But focal attention at those early days of the just born nation was placed on the development in the capital and key population or industry development areas.

(3) The GoTL is aware that cutting down the proportion of the population living below US$ 1 per day to 14% by 2015 (indicative MDG target) will require substantial improvements in energy services that contribute to income generating activities. Such objective is fully in line with observations of the UN Commission on Sustainable Development (CSD), which identified access to energy services as an essential element of sustainable development. The Commission stated that, “to implement the goal accepted by the international community to halve the proportion of people living on less than US$ 1 per day by 2015, access to affordable energy services is a prerequisite”.

(4) The National Development Plan of 2002 focuses on creating an enabling environment to generate opportunities for the economic situation of the poor, which have a higher share in rural than in urban areas. The main elements are improving productivity in agriculture and the informal sector, providing an enabling environment for private sector development and provision of infrastructure. Availability of affordable energy is a key factor to enhance framework conditions for the eradication of poverty.

(5) The GoTL has also stressed in its first report on the national Millenium Development Goals of 2004 that “the problem of growing fuel wood demand for household and small industries use is to be addressed through substitution of fossil fuels especially in urban areas.”

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(6) In this context and while taking a look at perspectives to achieve the MDGs by 2015, the GoTL formulated as essential for reaching the target 7 (“Ensure Environmental Sustainability”): “Development of key national policies, including forestry and sustainable land management, rural energy policy, and appropriate measures to mitigate illegal logging activities.”

(7) In its program for the legislation period 2007-2012, the IV. Constitutional GoTL is putting special emphasis on the power sector and the search for renewable alternative energies, with the objectives of:

• Reducing the intensity of energy dependence and minimizing the import flow, through the use of alternative and renewable energy sources, .....;

• Promoting the multi-purpose hydro-electrical use for the production of energy in combination with other types of water use;

• Regulating the exploitation of alternative or renewable energy sources, also contributing for the uniformization and integration of several projects to be developed in the country in this field;

• Supplying/providing energy to the population living in isolated areas;

• Assuring the benefit of the country’s energetic richness to future generation, through the definition and preservation of “obligatory reserves”, both from renewable sources and from non-renewable sources.

(8) Although access to energy is not a Millenium Development Goal of its own, it contributes significantly to most of the MDGs. The GoTL is certain that - if properly planned and implemented - access to modern energy services in rural areas will raise new opportunities for income generating activities, it will increase agricultural productivity, improve social services in the area of health and education, reduce the work load, provide the basis for better communication and information and lead to a better quality of life – thus reducing the pressure and need for migration to urban centers.

(9) The GoTL recognizes that energy is a means, not an end, to achieving sustainable development. The mere availability is not enough; to improve people’s lives, energy supplies must be transformed into tangible energy services, such as cooking, heating, lighting and motive power.

(10) The GoTL is convinced that the efficient use of indigenous sources of energy, and in particular those of renewable nature, will contribute to reducing the import of fossil fuels and their derivates, will help to avoid negative impacts on the environment and lead overall to a sustainable development.

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Guiding Principles

(11) The activities and measures of the GoTL in the field of national and rural energy in particular are guided by the following principles:

- all decisions will have regard to views expressed through national multi-stakeholder dialogues and consultations, giving particular attention to the involvement of local communities expressing their needs for energy services, and find commonly agreed solutions;

- to secure affordable and cost-effective energy provision throughout the country by reducing the dependence from imported fossil fuels, increasing the share of indigenous energy resources and focussing on low-cost decentral energy systems;

- to consider that energy supply and use is closely related to gender issues and therefore place special attention on the involvement of women in the decision-making process at all levels;

- to respect that access to energy services in rural areas is an integral part of overall rural, agricultural and forest development;

- to take advantage of renewable, local energy resources, wherever this is possible from the aspects of availability (potential), energy demand, technical and social implications, economic feasibility, ecological harmony and sustainability;

- to always encourage and stimulate the efficient use of all energy resources, keeping in mind that all types of energy are either scarce or need significant amounts of capital to be tapped or transposed into applicable forms of energy use;

- to focus strongly on the improvement of conditions for income generation through access to modern energy services in rural, poverty-strikken areas. Such improvements can for example occur by delivering energy for irrigation to achieve higher harvest yields, by combining electricity with communication means to facilitate the better sale of agricultural products or by serving mechanical or electric energy for food-processing and carpentry;

- to improve general living conditions by providing basic modern energy services to the private sector as well as to social institutions (schools, health centers etc.), in particular for lighting and communication as well as for cooling (the last especially for human and animal medicines), recognizing the fact that poverty in most regions of the country has such dimension that substantial subsidies from the state budget or other sources will be needed for all capital investments;

- to concentrate all efforts in choosing technologies that by size and type correspond to the needs, technical background and purchasing power of the rural population;

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- to strengthen responsibility and decision making on the regional and local level by taking advantange of the decentralisation process that is being encouraged in all sectors of state administration;

- to adapt international experiences and technologies to national and local conditions, taking into account aspects of energy resources availability, social traditions, economic situations, etc. The GoTL will in this context particularly put an emphasis on securing that local actors are closely participating in all stages of project design and implementation;

- to base its considerations on the general role that despite the heavy reliance on external state funding, and in order to create ownership and responsibility, all projects will require the active involvement of the beneficiaries, be it through labour or financial contribution, and the long-term commitment of the target groups to maintain the systems and installations as properly as possible;

- to integrate and strengthen the private sector and institutions of the civil society as well as educational facilities as widely as possible. This will allow for an enhancement of the knowledge base, take advantage of existing routes of know-how transfer and provide access to local communities. It will also help to establish long-term market-based approaches that will rest on a country-wide net of service providers;

- to consider all schemes and mechanisms that facilitate the reduction of costs for the final users, such as lowering import taxes on all energy-related products that cannot be manufactured nationally; and encourage the local production of equipment and components, wherever this is possible and economically viable;

- to approach international institutions for financial and technical assistance and to participate in international financing mechanisms wherever this deems necessary and supportive;

- to draw conclusions and consequences from the experiences and results of the various renewable energy and energy efficiency pilot projects in Timor-Leste that have been initiated by NGOs, international official donor agencies, charities, other institutions or by different departments of the GoTL itself;

- to promote in first place such technical schemes that are closely adapted to the needs, financial capacity and understanding of the rural population and show a high chance for replication;

- to invest only in proven, robust and reliable technologies that are guaranteed by quality and give the users confidence in security and safety;

- to take notice of and draw benefit from previous international experiences in the areas of rural energy development, rural electrification, renewable energy application and household energy,

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e.g. those implemented with funding from the Global Environment Facility (GEF).

Status of Rural and Renewable Energy Supply

(12) Timor-Leste has a high proportion of impoverished population and a very low income level, in particular in the majority of rural areas. Most rural households live on subsistence farming or have a very low and only sporadic income. Use of energy for farming is practically unknown, processing of agricultural products inexistent (with the general exception of coffee).

(13) Timor-Leste has rich sea-based resources of natural gas and oil, which are being exploited since 2005 under agreement with Australia. Despite this fact and advantage, the country has to import all its fossil fuel needs at world-market prices, mainly in the form of refined or secondary petroleum products, such as diesel, gasoline, LPG and kerosene.

(14) It is not expected that piped natural gas or raw petroleum will reach the island before 2020. Near-shore or on-shore resources of gas and petroleum have not yet been explored. More than 30 gas seeps have been identified and examined, mainly along the southern shore line. A pilot project to exploit one of those gas seeps for electricity generation is under preparation with assistance from the World Bank (near the village Aliambata in the sub-district Uatu Lari).

(15) A 24-hour electricity supply only exists in Dili and Baucau – although with a high rate of outages particularly in the evening hours. Installed meters in both cities have in most cases been bypassed, leading to a substantial rate of electricity thefts and a low coverage of cost repayment. But household tariffs of just 0.12 US$/kWh are also far from the current costs of around 0.40 US$/kWh (for fuel purchase only)1. Subsidies from the state budget for electricity supply in those two cities in 2007 have reached around US$ 24 million2 for fuel costs only.

(16) The current electrification rate of rural households outside of Dili and Baucau is extremely low, with less than 10% being connected to local grids that serve the population of some 272 aldeias in about 50 sucos (out of a total of 442 sucos) with power for around 6 hours at night. Only in a few sucos all aldeias are electrified, not meaning necessarily that all potential customers are connected to the grid. Based on figures of the Population Census of 2004 and of connectivity to grid-based electricity supply, it is estimated that currently (2008) at least 185.000 households have no access to electricity, except through the use of batteries.

1 Reason for those high prices is the low efficiency of the diesel generators operating in Dili and Baucau, apart

from the high purchase price of diesel fuel. 2 This figure needs to be confirmed. A rough estimation shows the following: If 26.000 households are

effectively connected to the EDTL grid consuming an average of 150 kWh per month, annual costs for diesel fuel will be in the range of US$ 23.4 million (with overall efficiency of 20%, price of US$ 1 per litre diesel and energy content of 10 kWh per litre of diesel fuel).

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(17) In past years the extension of electricity to new connections in rural areas has virtually come to a standstill, due to a lack of human and financial capacity by EDTL, and the total number of connections is still lower than at the end of Indonesian occupation in 1999.

(18) The population of Timor Leste will increase to about 1.5 million by 2020 – up by about 50% against the 1.050.000, estimated for the beginning of 2008 - according to scenarios laid down in the Population Projections 2004-2050, based on the census of 2004. With the average size of households remaining unchanged with 4.7 persons (as in 2004), the number of households will therefore grow from about 225.000 at the beginning of 2008 to 320.000 by 2020.3 Assuming that the current ratio of about 80:20 rural to urban population will remain unchanged, about 256.000 households will be located in rural areas in 2020.

(19) Taking into account the above mentioned perspectives for population growths and based on the assumption that the electrification rate in the “business as usual” scenario will still not exceed 25% by 2020, about 192.000 mainly rural households (or more than 900.000 persons) would be without electricity by then.

(20) Most of the power stations that were demolished or replaced during the turmoils of 1999, have been reestablished and renewed. But due to the destruction of distribution lines that have so far not fully been rehabilitated and due to the lack of financial capacity by many rural households, the connectivity is often far lower than what the generating capacity would allow for.

(21) The electricity supply of rural Timor-Leste now consists of 58 isolated grids (11 on district level and 47 on sub-district or suco level), all equipped with diesel generators, but some not operational, due to lack of maintenance, fuel or as consequence of vandalism.

(22) Most of the diesel-operated power plants are now under the management of EDTL, after the operation by communities failed mainly because of high fuel costs that could not be recovered from the consumers, and deficits of know-how and finances to maintain the systems.

(23) With electricity tariffs in rural areas being as low as 2.25 US$ per month for a 2 Ampere connection (universal flat rate), the cost coverage rate (only related to fuel and regular operation) is in the range of 5%, leading to an increasing burden for the state budget.4 Most diesel generators have a low efficiency, working not at full load during most of the time, partially due to oversized capacity and a lower number of connections than originally anticipated.

3 Please note that the number of households is not identical with the number of dwellings, since more than one

family may live in one house (thus the term “household” is synonymous to “family”). The average number of persons living “under one roof” was 5.7 in 2004.

4 A rough estimation shows the following: With the assumption of 10,000 rural households effectively supplied with electricity consuming a low average of 40 kWh per month, the annual cost for fuel alone would be in the range of US$ 2.4 million (with overall efficiency of 20%, US$ 1 per litre of diesel and 10 kWh energy content per litre of diesel).

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(24) For lighting the rural population relies mainly on kerosene, plant oils and batteries. Monthly expenditures per rural household for kerosene are in the range of US$ 5, with additional spending for batteries and candles.

(25) A significant number of small solar power systems have been distributed as part of an Indonesian programme during the 1990s, and since 2002 with financial and technical support from different Ministries of Timor Leste and by various NGOs and charities. Many of those systems show functional failures with no schemes in place that provided financial and technical capacities for long-term maintenance and spare-parts. Only where maintenance funds for repairs and locally available technical support have been established, such pv systems show long-term sustainability.

(26) Inadequate distribution infrastructure in remote parts of the country for diesel fuel and kerosene contributes to prices of those fuels exeeding those paid in Dili and other urban areas. Also, the market structure for the petroleum sector in Timor Leste is not adequately competitive and the cost of energy is therefore higher than in other countries of the region.

(27) The current level of technical and academic training at all levels of education and in all aspects of the energy sector is poor. Research institutions are insufficiently equipped to work effectively on country adapted energy technology solutions;

(28) Directly correlated to the insufficient capacity building in the field of energy, the expertise related to rural and renewable energy services found in TL is extremely limited, with the exception of some technicians that e.g. have received advanced education at foreign institutions or in-house training within their company (as in the case of solar installations done by the Dili company Startec).

(29) The GoTL, through its Secretariate for Energy Policy, will spend US$ 251,000 in 2008 for research and pilot projects in the fields of biogas production, solar electric installations, jatropha planting and capacity building (Alternative Energy Fund).

(30) The GoTL has received foreign financial and technical support (official development aid) in the past by various donors, such as the Governments of Japan, Portugal, Norway, UNDP and others for improvements in the supply of energy (mainly electricity) to rural areas.

(31) The GoTL has ratified the Framework Convention on Climate Change in October 2006 and is member of the non-annex I countries since January 2007, without obligation for greenhouse gas reductions. Timor-Leste has further ratified the Kyoto Protocol in March 2008 and is therefore in the position to apply for funds from the Global Environment Facility and to participate in the Clean Development Mechanism (CDM), but the Government has not yet designated a national authority for CDM as this is requested. The GoTL will present its first communication on climate change within the UN Framework Convention on Climate Change by 2011.

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General Objectives and Specific Targets

(32) The GoTL is determined to

- provide basic electricity supply5 to all households and other consumers in Timor Leste by 2020;

- reduce the average amount of fuel wood used for cooking in private households by one third by 2020 by introducing fuel substitution and supporting the use of energy-efficient stoves; and keep the total amount of fuel wood consumed in Timor Leste by 2020 below the level of 2004;

- pursue to exploit most of the biogas potential in Timor Leste by 2020.

- substitute all existing rural diesel generators by hydropower by 2013 and thereby cut down excessive operational costs, wherever running water sources suitable for electricity generation are accessible;

- link all fresh water pumps in rural areas to renewable energy technologies, if no other low-cost provisions of energy are available offering the same type of service and comfort;

- continously reduce the subsidy for diesel fuel in the electricity sector by at least US$ 2 million per annum and increase on an equal basis the state spending for rural energy access;

- strengthen its efforts on measures that directly contribute to poverty reduction by providing new or enhanced income generation and allow for improved health, education, communication and water supply through the provision of energy services;

- base the future electricity generation for rural areas of Timor Leste mainly on indigenous renewable energy sources, such as hydropower, solar energy and organic material (biomass);

- provide the necessary financial means in the shortest time possible to enhance the technical training on energy subjects in vocational schools and provide sufficient personnel and logistical capacity for the implementation of courses, investigation and research in all forms of modern energy supply at the academic level;

- carefully examine the applicability and suitability of locally grown oil seeds and fruits (such as Jatropha and coconuts) for the use in small-sized stationary engines for decentral electricity generation and motive power and study its impacts on the local economy and on agricultural structures.

(33) The GoTL acknowledges that the current level of poverty of the majority

of households of Timor Leste does not allow that the access to modern

5 Basic electricity supply is understood here as the minimum provision of lighting service (two lamps) during

evening hours.

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types of energy is fully based on recovery of costs. Already currently the provision of electricity to rural areas is almost completely relying on cost coverage from the state budget for the purchase of fuel and repair needs, due to the minimal income opportunities of the rural population.

(34) The GoTL also recognizes that the acceptance and availability of micro-credits, contrary to experiences in other countries, is still limited. The low level of timely repayment of rates for such credits in the recent past have led to reluctance on the side of microfinancing institutions to provide credits to customers that depend on highly volatile incomes, as it is the case in most of the rural areas. The GoTL will therefore provide for subsidies and funding, always respecting the general rule that part of the overall costs or work has to be covered by the beneficiaries.

(35) The GoTL is aware that the access to modern forms of energy fulfills a variety of different goals: it will improve the quality of life in the private sector, it will serve for higher educational and health standards, it will reduce the time spent for the collection of fuelwood etc.. But it should also create new income generating opportunities and help to increase the productivity in the agricultural sector (e.g. by using solar powered pumping systems for irrigation during dry seasons).

(36) The GoTL will therefore seek for ways to provide modern energy in particular for such activities that assist in setting up new or improve existing production, servicing or manufacturing options, e.g. in the small-scale food-processing industry, within the commercial and service sector or the manufacturing of furnitures etc.

(37) The GoTL will provide sufficient and continuous financial resources from the state budget and international donor institutions for covering expenditures caused by research, monitoring, promotion, capacity building, investments, studies etc. in the field of rural energy services.

(38) The GoTL will in particular seek additional financial support for the provision of rural energy access within the Millenium Challenge Corporation and within the Global Environment Facility, but also from multilateral and bilateral development agencies, such as the World Bank and the Asian Development Bank, as well as from non-governmental donors.

Solid Biomass Resources

(39) The energy supply of Timor Leste is to a large extent dependent on biomass resources. It is estimated that more than 90% of all primary energy input is based on solid biomass, the vast majority in the form of fuel wood being used for cooking, baking and other heat processes (such as pottery and brick making). The use of charcoal is not common in Timor Leste.

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(40) Over 95% of all Timorese households – in rural as well as in urban areas - use wood as principal cooking fuel. Only a tiny fraction of households with higher incomes – mainly in Dili – is applying kerosene or bottled LPG. Due to the high prices of both alternative fuels, which do not receive state subsidies as in neighbouring Indonesia, some households in the capital have even returned from modern energy sources to the traditional way of purchasing and using cheaper fuel wood.6

(41) Other biomass resources, such as agricultural residues – coconut shells, rice and coffee husks etc. – make up only a very tiny fraction of the overall energy supply.

(42) Cooking facilities are overwhelmingly simple (three stones) and very inefficient, leading to an excessive consumption of fuel wood and a smoky environment, causing significant health risks by affecting the respiratory system as well as the eyes, in particular to women and children.

(43) As a preliminary biomass energy study by the World Bank has shown, the threat of deforestation exists mainly in the closer vicinity (40km) of Dili, while in other areas of the country the regeneration and extraction rate for wood is still in balance. But the high population growth could over the years also lead to depletion of wooden resources in other regions of the country, in particular in the highly populated zones of Liquiça and Ermera. Therefore priority action is needed in Dili and the nearer surrounding to i) provide incentives for replanting of trees and ii) stimulate the dissemination and implementation of more energy-efficient stoves.

(44) Due to the low price of fuel wood purchased from street vendors in Dili or along the roads leading into Dili and the zero-cost fuel wood collected by most people in rural areas, the purchase of manufactured stoves or of construcion material for home-made installations of stoves will need to be subsidized. Such subsidies should not be given to the users of stoves, but to manufacturers and suppliers of material in order to lower their selling prices.

(45) With an approximation of 1 kg of fuel wood used per person and day for cooking7 and the assumption of 40% fuel wood being saved through the use of improved stoves, some 34,000 tonnes of wood would be saved annually in Dili and its surrounding area (based on census 2004 data).

(46) So far, community-based initiatives for reforestation and energy wood plantations are rare. Not more than a few hundred energy-efficient stoves have been supported by UNDP and some NGO’s, all with mixed results and sometimes based on inappropriate designs and materials and technically not taking account of scientific findings and experiences collected elsewhere.

(47) Fuel wood is also the major energy supply for other applications relying on process heat, such as baking, brick and ceramic kilns and food

6 During the period of Indonesian occupation, kerosene had been heavily subsidized. 7 see Household Energy Scoping Study

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processing in small-scale rural industries. There are no exact data, how much energy is consumed in those sectors, but it is estimated that this is relatively marginal compared to its domestic use.

(48) Also no information exists on the potential of various other solid biomass resources that could be used directly or in a compressed form (briquettes) for all kinds of heat purposes in rural areas. A rough estimation suggests that almost 100.000 tonnes of dry organic material are available annually from agricultural residues of rice, maize and coffee farming and from coconut plantations.

(49) Different designs for improved energy-efficient stoves, saving up to 50% of the fuelwood consumption compared to traditional three-stone-stoves, are readily available from international projects. Broad experiences exist in other countries from the installation of fixed kitchen stoves serving two or more pots as well as for commercially manufactured and traded mobile stoves for just one pot. Of course, those designs have to be adapted to local conditions and needs, such as availability of materials and cooking habits in Timor Leste.

(50) The existing state-imposed forestry policy that requests licenses for cutting of trees for commercial trading has failed. Currently discussions take place, how this prohibitive legislative approach could be replaced by a policy that is based on community participation and interest. Such a policy would be designed to be enabling rather than enforcing. Thus, it will provide opportunities for rural communities to improve their own livelihood and the condition of the forest in their vicinity by removing any constraints that inhibit them from doing so.

(51) Based on conclusions and recommendations from the Household Scoping Study and the Biomass Energy Study of the World Bank, and the FAO on a participatory community forestry policy, the GoTL will, with the assistance of NGOs and foreign technical expertise,

- provide the right framework conditions that enable strengthening community participation in all aspects covered by long-term forest management, allowing for the combination of income generation at community level with sustainable development of wooden resources;

- in a first step encourage reforestation and plantation activities on the community level that help to reverse the tendency of deforestation and soil degradation in the closer vicinity of Dili (district of Dili and Aileu, and parts of the districts of Liquiça and Ermera);

- extend the reforestation measures to such areas of the country that have been identified as being threatened by overextraction of wooden resources, be it for energy or other purposes (such as construction and furnitures). The GoTL will in particular introduce such measures that prevent the uncontrolled extraction of wood from state forests, mangroves and natural reserve areas by handing out titles for the formation of community owned land dedicated to wood energy plantations;

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- analyse the potential of existing solid biomass resources from agricultural residues (such as rice and coffee husks, straw etc.) or future dedicated energy plantations and investigate options to make such resources applicable for different energy needs;

- further assess the use of wood and other solid biomass for cooking and other heat processes (such as baking, brick kilns, ceramics, food processing etc.) and gather exact data on the consumption and type of energy sources used for such demands;

- enter in 2008 into the preparation of a long-term programme on dissemination of energy-efficient stoves (“Improved Stoves Programme”), starting with efforts that focus on the vicinity of Dili which is threatened by deforestation and subsequent soil erosion and seek for international technical and financial support. A total of around 50.000 households would potentially be targeted by such measure.8 The programme will start with the dissemination of initially 4.000 stoves in 2009 and gradually increase this annual target over time;

- start from 2009 on with stimulating and supporting the design and dissemination of energy- and cost-efficient stoves that can be installed with a significant contribution of labour input by the users or can be bought at reasonable prices from local manufacturers. The GoTL will for such purpose involve technical staff from academic institutions, incentivize the training of craftsmen and intermediaries and consider subsidies for the purchase of manufactured stoves or the procurement of construction material. For the implementation of the Energy-Efficient Stoves Programme, the GoTL will in first place support activities undertaken by NGOs and by the private sector (small-scale manufacturing industries);

- consider at short notice the introduction of subsidies (over a maximum period of 5 years) that assist on a wider use of LPG and kerosene9 by poor households, in order to reduce the high pressure on wooden resouces in Dili and neighbouring provinces. Such subsidies are thought to stimulate the shift from fuel wood use to a cleaner and more environmental friendly form of energy, and will reduce the smuggling of cheaper fuel, in particular of kerosene, across the border from Indonesia. The GoTL will further assist in establishing new LPG distribution outlets in Dili and other populous regions of Timor Leste, operated by private sector enterprises;

- explore, with support from NGOs, national academic institutions and international expertise, potentials and ways for possible briquetting of solid biomass resources for domestic use and other heat processes;

- encourage and promote the use of biogas for the substitution of fuel wood as heat source, wherever this is feasible (see next chapter).

8 Calculated on the number of households in the provinces of Dili and Aileu and the subdistricts of Liquiça and

Bazartete (in district Liquiça) and Ermera, Hatolia and Laulaco (in the district Ermera; as taken from the census 2004).

9 Based on an assumed annual consumption of 4 million litres of kerosene that sell currently at a price of about 1 US$ per litre, a 50% subsidy would result initially in an overall yearly budget of approximately 2 million US$.

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Biogas Programme

(52) The GoTL and foreign donors have started in recent years to promote the use of animal residues (dung) for the production of biogas, mainly for cooking and lighting and (in one case so far) for electricity generation. Complete systems installed with assistance from UNDP cost in the range of US$ 1,100 per household (10 m³ systems, including paid labour, but exclusive of shipment), including a two-flame stove, a rice cooker and one gas light.10 Biogas will therefore in first place substitute fuelwood for cooking (which is virtually free of charge for the rural population as it is collected) as well as kerosene (or other oily fuels and batteries) for lighting. On the side of the benefits stand out the amount of time saved for wood collection and cooking and the absence of exposure to smoke.

(53) The production of biogas from animal manure or dung is common practice and wide-spread in countries such as India, China, Nepal and Vietnam.11 For the efficient collection of manure it is necessary to hold the cattle in stables with concrete floors. This contradicts to a large extent the usual way of cattle and buffalo rearing in Timor-Leste, where grazing in the open space is common. In keeping up with this tradition, dung needs to be collected manually. A mixed form of traditional and modern forms of cattle husbandry achieving better results for feedstock input is the fencing in of animals overnight. The outflow of the biogas plant is a good fertilizer and can be used locally for horticulture and crop farming.

(54) Statistics12 show that the average number of cattle per household in Timor Leste is essentially low, with only in the districts Bobonaro, Covalima, Oecusse and Viqueque exceeding one (dairy) cattle per household (Oecusse has the highest average with 1.6 cattle per household). Even if buffalos are included (which are not well suited for biogas production due to their assignation as plodders in the field) the total number does not exceed three animals on average (District of Viqueque).

(55) But as a more detailed survey by the National Directorate for Statistics reveals, there are regions in Timor Leste where the figures are well above the average, notably in the subdistricts of Hatu Udo (district of Ainaro), Bobonaro, Cailaco, Maliana (all in Bobonaro), Suai (Covalima), Maubara (Liquiça), Lospalos (Lospalos), Nitibe, Pante Makasar (both in Oecusse) and Lari (Viqueque). It is estimated that for a household size of 6 to 7 persons and cooking of three meals per day approximately 4 to 5 cattle of the size common in Timor Leste will be necessary to serve cooking and basic lighting needs.

10 In Nepal a standard domestic biogas system with a storage tank (biodegester) of 6 m³ costs around US$ 500. 11 In Nepal a total of 172,500 domestic biogas plants had been installed by July 2007. In Vietnam the number of

new installations within the last five years (2003-2007) reached more than 37,000. The goal is to have more than 140,000 systems installed by 2010 within the current Vietnam Biogas Programme. In China 17 million biogas installations had been reported by 2005, in India about 3.8 million household-scale biogas plants are in operation.

12 Government of Timor-Leste, Census Atlas 2004

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(56) Based on data from Nepal and from the census of 2004, the (hypothetical) potential of daily biogas production from the 134.000 cattle in the country is in the range of 48,000 m³. But from the distribution of cattle among households it is estimated that only about one fourth of this potential can be exploited, thus providing 12,000 m³. With the average consumption of 1 m³ biogas per day for cooking and lighting in a medium-sized household, about 12,000 households could then be served from biogas, not taking into account potential other sources of feedstock for the biodigester (such as solid organic material). Total costs for this number of household biogas plants would be approximately $ 6 million (only material without labor and other overhead). The daily saving of fuelwood would be in the range of 60,000 kg (or US$ 6,000 at current market prices). But estimates based on sucos with an average of five and more cattle per household give reason to assume that the actual number of households suitable for biogas supply could even be far lower (about 4,600 13).

(57) Preliminary results from existing biogas plants in Timor Leste and elsewhere demonstrate that:

- the distribution of gas from larger central biogas plants to individual households is sensitive and a potential cause for malfunctions due to leakages, if improper pipe material is being used;

- the number of cattle needed to fully replace fuel wood and kerosene has often been underestimated, in particular where dung is being collected from the ground or cattle is only penned overnight;

- equipment and components had to be fully imported, but could most certainly be partially manufactured in Timor Leste;

- biogas plants need substantial financial support due to relatively high capital costs, contrasting the general poverty level of households in rural areas;

- biogas plants need to be seen as integral part of future farming and animal husbandry and cannot be isolated from questions such as national targets and state promotion for cattle breeding and human as well as animal health issues;

- lighting with biogas is highly inefficient in terms of energy use, but could replace kerosene lamps or oil torches with similar low efficiency and/or high costs;

- electricity generation from biogas using modified combustion engines requires substantial technical knowledge and continuous maintenance.

(58) Taking into account the above said, the GoTL will

- assess closely the potential resources for biogas production, focusing mainly on cattle husbandry by households, larger private farms, cooperatives and communities, but also taking a look at other

13 Calculation based on those sucos that have an average of 5 or more cattle per household (see annex).

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feedstock potentials, such as agricultural and food processing residues, manure from poultry and pig farming or other organic waste;

- explore ways to harness distributed organic material suitable for biogas production by providing appropriate collection and transport systems;

- develop and set up a medium-term programme for the promotion and dissemination of standardized biogas plants that will prioritize those areas (sucos) with the highest average number of cattle per household (such as Cailaco14), or which have other sizable resources for biogas production available, and will be implemented with support from NGOs and international experts and donors; preference will be given to areas, where a cluster of at least 20 to 25 biodigesters can be built in a row;

- proceed in 2008 with the installation of pilot biogas projects (funded with support from the Secretariate of State for Energy Policy) in order to gain further experience related to construction, operation, husbandry integration and social implications;

- encourage and stimulate through information campaigns, training measures and seed funding the participation of the private business and small industry in all fields of the biogas manufacturing, installation and maintenance sector;

- take advantage of international experience in the field of biogas digester construction and operation, mainly with reference to best practice examples in Vietnam, China, India, Nepal15 and those gained within the “Biogas for better Life” initiative16 in Sub-Saharan African countries.

- further promote and financially support the introduction of small-scale biogas plants for rural households that own and hold a minimum number of five cattle. GoTL will give preference to such schemes which provide for cattle rearing in stables and will use the biogas for cooking and lighting;

- provide incentives for household operated plants in such a way that only costs for stoves and lights will be carried by the users at the beginning of the programme. Beneficiaries will further execute part of the work load as in-kind contribution. They also have to demonstrate their capacity and willingness of taking over costs for all maintenance and repair needed during the time of operation; the share of state subsidies will be reduced over the course of programme execution;

- encourage banks and microfinance institutions to provide short-term low-interest loans for users and providers of biogas plants;

- actively promote the formation of larger-scale community (or cooperative) biogas plants that can serve social facilities, such as schools and health centers, with cooking gas;

14 See annex for further information. 15 See website of the Biogas Sector Partnership Nepal: www.bspnepal.org.np 16 For further information see: www.biogasafrica.org

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- examine with the assistance of experts in this field, to what extent and under what conditions biogas plants in Timor Leste can be attached to sanitation facilities;

- provide scholarships for young professionals to attend training courses on biogas plant design and construction abroad;

- strive to involve national academic institutions to participate in a monitoring programme to evaluate and assess the results from the already installed and future biogas plants and to come up with proposals for improvements; and provide funding for such activity;

- request academic institutions in the country to set up a research programme on the design of biogas plants most suited for the requirements and environment of Timor Leste, and provide financial support for such activity;

- provide funding only for those biogas plants that have been accepted as suitable for use under Timorese and local conditions and are constructed under the guidance of qualified personnel;

Rural Electrification

(59) According to the Rural Electrification Master Plan of 2007 in only 54 (out of a total 442) sucos all aldeias have been electrified, in a further 65 sucos more than 50% of the aldeias have received electrification and in another 51 sucos the number of aldeias that have some form of grid-based electricity is below 50%. In total only 272 (out of 2,228) aldeias in all of Timor-Leste can be called electrified.

(60) A network survey done in 2007 has clarified that network installations are existing in 157 sucos. However, a substantial part of these networks are not in operational conditions, and electricity supply to the population in these areas are presently not functioning.

(61) All of the electrified aldeias in rural areas (outside of Dili and Baucau) are connected to various isolated grids served by stationary diesel engines of different sizes. The majority of those grids is operated under the management of EDTL.

(62) The low level of electricity consumption (normally only for lighting) and their dispersed locations will leave a major number of households unattractive for supply from any electric grid. It is estimated that this could apply for about 90,000 households in 2020.

(63) Most of the electricity demands of rural households are extremely small, not exceeding 25 kWh per month. At the same time, many dwelling are dispersed in the countryside, which make electricity supply by a central or local grid economically unattractive.

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(64) The GoTL will

- base its considerations and decisions for expansion of electricity supply in rural areas on the results of the Rural Electrification Master Plan of 2007;

- give preference to such electrification projects which are fully supported by the community and pay equal attention to quality of life improvements at domestic level as well as to provision of electricity for income generation and social infrastructure;

- design and propose to the parliament a multi-year rural electrification plan that will determine priority zones for central grid connection and off-grid electricity supply, define locally available renewable energy and gas seep sources suitable for electricity generation and set the framework for community-led electrification schemes;

- realize with World Bank support the installation of a decentral power station using the gas seep at Aliambata with connection to the existing electricity grid of Uatulari and extend this technology to other sites with sufficient gas potential. This project had already received priority in the Power Sector Investment Plan of 2005;

- further assess the potential of identified gas seep sites for decentral electricity generation;

- develop rules for the provision of subsidies for rural electrificaion projects that will not exceed 80% of total costs, including in-kind contributions of labour by the beneficiaries;

- assist rural communities in setting up viable schemes for the collection of fees and tariffs that allow for a sustainable and long-term operation of electricity plans and networks, without further requirements for intervention from the state budget;

- cooperate with Timor Telecom in order to substitute diesel-based electricity supply of communication transmitters in rural areas by renewable energy sources (mainly solar electricity);

- apply for membership and actively participate in the international Global Energy Village Programme 17;

- seek contact and get into partnership with the Alliance for Rural Electrification, formed by European renewable energy industry associations, based in Brussels.18

17 see www.gvepinternational.org 18 see www.ruralelec.org

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Hydropower

(65) Timor-Leste is endowed with a large number of potential sites for decentral hydropower generation, in particular in its Western and more mountainous part. Hydropower plants with capacities of a few Kilowatt to some MW can serve for the electricity supply of individual small consumers up to isolated grids for whole communities.

(66) In recent years, the GoTL and EDTL have studied options for using hydropower at various locations with support of the Norwegian Government. Timor-Leste has potential for one large (Iralalaro, with between 13 and 28MW and 189 GWh per year) and several small and very small hydropower facilities. For Iralalaro, after approval of the already completed environmental impact assessment, tender documents for the hydropower plant construction and a transmission line to Dili will be worked out and the tender process will be assisted by international experts.

(67) A first plant of 326 kW maximum capacity is currently under construction (Gariuai), with inauguration expected for September 2008. For another three projects in the Western part of Timor-Leste (Atsabe, Bobonaro and Maliana), river flow measurements have been carried out for more than a year. For Atsabe chances are good to get Norwegian funding, with work starting in 2008 or 2009.

(68) The GoTL will

- proceed with the implementation of the recommendations of the Rural Electrification Master Plan regarding the use of hydropower, wherever this is economically and ecologically advisable;

- place priority on such projects that allow for substitution of diesel-powered electricity generation by local hydropower and on projects using hydropower with turbines at very small scale and low cost (pico hydropower);

- within the institutional agreement between Timor-Leste and Norway and together with EDTL start into preparing the tender documents for the construction of the hydroelectric plant of Iralalaro, if the environment impact assessment shows no negative and irreversible effects on flora and fauna. It will also enter into the preparations for the transmission line from the hydro plant site along the northern coastline to Dili;

- proceed with the design and tendering process of the mini hydropower plant Maununo (district Ainaro) and realize construction in 2008/2009, with financial assistance already secured from UNDP;

- support the elaboration of a Hydropower Master Plan and a Power System Master Plan for Timor-Leste, that will be carried out starting in August 2008, with support of the Norwegian Government.

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Solar Lighting Programme

(69) The existing daily solar resources (irradiation energy) are in the range of 5 to 6 kW per m², with the lower value applying to most of the mountain areas and the higher values to the lowlands and coastal regions.

(70) Solarelectric systems are especially attractive for small loads and remote consumption points. The systems can have variable sizes and are (in case of off-grid supply) attached to a storage system (battery).

(71) Timor-Leste has experience with different types of solarelectric systems, reaching from very small mobile lanterns with stationary solar modules (10W) to household systems (30 to 50W), community center installations for TV and DVD (100W), health center supply (about 400W) and solar powered pumps (2 to 3 kW).

(72) The expected low consumption profile and the low electricity demand density in vast regions of the country will leave a significant number of households unattended by any national or local grid within the next 15 to 20 years.

(73) For about one third of all households (i.e. about 60.000 based on census 2004), solar electricity will be the only choice for basic electrical services, notably for lighting. The absolute number of households will increase by more than 50% until 2020 due to population growth.

(74) The GoTL will

- carefully assess the results of the institutional settings and technical performance of previous solar electricity projects;

- start a multi-year Solar Lighting Programme (SLP) in 2009 that will equip all households unattended by other forms of electricity supply with lighting systems based on solarelectric power;

- establish for the SLP a funding and promotion scheme that will offer fully subsidized solarelectric systems for basic electricity supply to all households that have send a request through their community administration. Systems will include a 10W module, charge controller, battery, cables, switches and other necessary equipment at a cost of about US$200 each. Cost for lamps (or the equivalent of at least 20% of total initial investment costs) should be carried by the beneficiaries;

- in particular cases allow that communities opt for central battery charging units supplied by solar electricity or provide mobile lanterns at similar costs and performance. Such schemes could be the starting point for business operations by renting out solar lanterns and offering services for battery and mobile phone charging;

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- generally accept if households opt for larger systems at their own expense, while the subsidy will always be based on the general standard system;

- follow a step-wise expansion of the SLP, giving first priority to areas with a high potential density of solarelectric systems (clustering), to allow for the development of sustainable market structures;

- organize bundled tendering procedures with minimum standard requirements to purchase high quality systems at the lowest price possible;

- handle all dissemination and installation procedures with assistance of the private sector or non-governmental organizations;

- explore options – with support of external assistance – for the manufacturing or assembling of solar lanterns and other solarelectric components in Timor Leste, as demonstrated with good example in other countries19;

- request communities to set up institutional schemes that allow for monthly payments by the households into individual accounts, dedicated to cover expenses for maintenance and spare-parts (in particular battery replacement). Minimum monthly payment should be in the range of US$ 2-3;

- promote the use of micro-finance mechanisms for short-term loans on the community level;

- develop the SLP strongly with support of the private sector and offer incentives for establishing retail stores and service centers close to future markets;

- provide training on solarelectric installations at community level and use the existing installations at suco centers for such purpose;

- equip all newly constructed or rehabilitated schools and health centers as well as suco centers with solarelectric systems that may serve for lighting, communication and refrigeration (in particular for vaccines and other medicines), unless those buildings have grid-connected electricity available or within close reach, which is already generated through use of renewable energy;

- advice foreign non-governmental donors and charities to concentrate their engagement in the area of solar electricity to such rural zones and for such purpose as has been prioritized within Government programmes.

Other Renewable Energy Resources

(75) Solar thermal energy systems for hot water service have been put in place in some hotels, on army compounds and at a number of other localities.

19 see www.solar-aid.org; www.solux.org; www.barefootcollege.org; www.ashdenawards.org/winners/nest;

www.light.lbl.gov/library/UIUC_JITM_Mondialogo.pdf

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But the deployment of solar collectors in Timor Leste is still at an infant stage and knowledge about their use and function is not widespread.

(76) Wind energy resources in Timor Leste have not been tapped so far, with exception of a small wind battery charger set up by the NGO Alternative Technology Association (ATA) from Australia in Lequidoe. The potential for electricity generation or water pumping from wind power is practically unknown. ATA has set up a first wind data logging system on the island of Ataúro in 2007.

(77) In neighbouring Indonesia (West-Timor) a wind atlas was elaborated in 1997 by the National Renewable Energy Laboratory (NREL) of the US Department of Energy, showing that favourable medium speeds above 5 meters per second occur mainly at higher altitudes. More site specific measurements at locations in West-Timor were conducted with support from the Dutch Government starting in 2004. Wind measurements took place at Oelbubuk in the sub-district Soe, which showed excellent results for a wind farm. Other measurement in West-Timor took place at two locations near Kupang and at a location near the town Atambua. Also the Spanish company Soluciona Consultoria set up measurement devices in the region on sites at Sidrap, Baron and Selayar (Indonesia) for long-term logging of wind data at the end of 2005. This task was conducted within a project co-financed by the EU-ASEAN Energy Facility. It is reported that a wind farm of 1.5MW was due to be erected in the province of Nusa Tenggara Timur in 2007, but the current status of this project is unknown. Several small-scale wind generators of 80 kW each have been installed on a number of Indonesian islands lately.

(78) Preliminary assessments indicate that sufficient average wind speeds occur predominantly at higher altitudes of the island, i.e. in the mountain areas. It is obvious that those regions will be hard to approach for large-scale wind turbines (600 kW and above), given the current road conditions and the accessability to medium-voltage transmission lines. But smaller wind turbines (50 – 100 kW) which can be self-erected without using a crane, could be suitable for such sites. Very small decentral wind battery chargers on the other hand have substantial specific investment costs and need proper and continuous maintenance. Some potential could exist for water pumping systems, where the intermittent nature of wind is normally not a major concern.

(79) A wind measurement campaign is about to be launched with financial support of the Energy Sector Management Assistance Program (ESMAP) of the World Bank.

(80) Homegrown and locally available plant oils can be an additional source of energy. The GoTL (Secretariate of Energy Policy) has entered into pilot planting of Jatropha seeds in different communities; another source are Castor Beans that are invasive plants and widespread in Timor-Leste, as well as oil from coconuts. Most of the oils have the advantage that they can be fed unprocessed into modified diesel engines (no transesterification into biodiesel needed).

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(81) The GoTL will

- enter into an assessment and prefeasibility programme for the identification of potential sites for wind power; and use for such purpose existing meteorogical data and results from wind measurements in the region, and collaborate with the ESMAP-financed wind measurement campaign;

- examine to what extent and under what conditions small-scale wind generators could be attached to existing diesel generator to allow for fuel saving;

- assess the suitability of very small scale wind battery chargers for the supply of electricity to a limited number of households or individual customers;

- assure that any approach to the use of windpower will be based on standardized designs and turbine types;

- investigate options for using wind-driven water pumps for irrigation, drainage and fresh-water supply;

- gain experience and know-how in planting of Jatropha seeds and local extraction of oil; it will give preference to such projects that use natural (raw) plant oil for motive power and electricity generation (as e.g. in so-called Multifunctional Platforms20), and will start pilot projects in this area, taking advantage of international experience;

- explore potentials and options for use of other indigenous oil plants as fuel source, such as castor beans and coconuts;

- gain first experience with foreign support and involvement of national academic institutions in setting up and operating small-scale decentral transesterification plants for the production of biodiesel at community level;

- promote the use of solarthermal collectors for hot water generation in particular for hotels and restaurants that receive piped fresh water or are using roof-top water tanks.

Institutional Setting and Regulation

(82) The GoTL will refrain, with the exception of selected pilot measures, from the day-to-day implementation of renewable/rural energy systems. It will instead concentrate on setting the right framework conditions and guidelines that encourage the private sector, NGOs, social institutions, communities, individuals and other stakeholders from taking active part in the deployment of renewable/rural energy technologies. It will further

20 See UNDP project experiences in Mali and other African countries.

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establish long-term programmes, set achievable targets, raise general awareness among the population, and monitor and promote the results of its achievements.

(83) The GoTL will therefore

- transfer responsibility to the Secretariate of State for Energy Policy for establishing off-grid rural electrification programmes on the national level which are based on locally available renewable energy resources, setting the right framework conditions for participation of the private sector, supervising programme implementation and monitoring their progress and performance. Responsibility will also cover non-interconnected isolated village grids;

- establish at the beginning of 2009 a Rural Energy Agency (REA) as a public institution with administrative, managerial, technical and financial autonomy to channel Government and donor grants and technical assistance to the private sector, NGOs and rural communities for the implementation of projects that provide access to modern and efficient energy services in rural areas;

- give the Secretariate of State for Energy Policy the responsibility for supervision of the REA;

- mandate the REA to execute in first place community-led projects within multi-year programmes set up by the GoTL which pursue to provide electricity for domestic, industrial, commercial, institutional and other purposes, lead to biogas production and its use, and contribute to the sustainable supply and application of solid and liquid biomass resources for heat, electricity and motive power;

- give the REA the assignment to act as regulatory authority for all off-grid (“non-EDTL”) electricity supply initiatives by communities, individuals and the private sector outside of district capitals. Such authority will not affect individual supplies or very small local grids that serve not more than 10 customers;

- equip such REA with sufficient funding according to annual targets and subsidy levels set by the Government and give REA effective and autonomous control of its budget; the REA will have to report annually to GoTL about the spending of the budget and about its performance achievements;

- consider for such purpose the creation of a Renewable Energy Fund, fed from the state budget and through international donations.

- keep the operational costs for REA as low as possible by allowing overall costs for staff, office, transport etc. not to exceed 15% of the budget spent for investments (including project designs and feasibility studies);

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- request from the REA that all major investments for individual projects will only be approved after careful examination of the financial and technical viability in comparison to alternative solutions, and after getting guarantees by the community that sufficient and continuous fees/tariffs will be raised from the consumers to allow for long-term operation without further subsidies from the state budget;

- transfer full responsibility to REA for carrying out all major rural energy programmes that have substantial impact on providing improved energy services to a large number of households or other energy consumers. The GoTL may also decide from case to case to mandate REA with the implementation of capacity building and training activities or the execution and monitoring of pilot projects.

- Ascertain that the mandate of the REA reflects the important role of NGOs and none-ODA financing contributions.

(84) The GoTL will propose to the parliament to further improve and strengthen the regulation of the energy sector by amending the Decreto-Lei No. 13/2003, in order to remove any unnecessary barriers that prevent the supply of energy to rural areas. It will in particular pursue to specify responsibilites and create the fundament for an enabling environment that allows new actors to participate actively in the process of providing energy services. Focus will be given on strengthening community involvement and supporting market-based approaches. But the GoTL is also recommending to refrain from over-regulating the sector by the creation of bureaucratic structures that would impede the speedy development of the sector.

(85) The GoTL will provide sufficient funding from the state budget to achieve the Government objectives on rural electrification, installation of biogas plants, dissemination of energy-efficient stoves, development of hydropower etc. and establish funds for research and monitoring of adequate programmes. It will further harmonize donor activities and seek for international financial and technical support.

(86) The GoTL is concerned about the long-term sustainability (life time) of energy service technologies. To secure that customers will have access to high quality products, the GoTL will therefore set minimum performance and quality standards within all programmes and projects that receive state subsidy. It will further introduce mechanisms that those quality standards will apply to all energy-related products being imported into the country or manufactured locally.

(87) The GoTL will propose legislation to the parliament that allows communities to tap hydropower sources for electricity generation and supply within its boundaries, unless competing water uses or harmful impacts on the environment prevent such intention. It will further draft legislation that gives all interested parties the right to set up and operate power generation and distribution facilities which are using locally

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31 Rural Energy Policy for Timor-Leste (Proposal) – Final Version, July 2008

available renewable energy resources up to a generation capacity of 300 kW, without intervention of EDTL.

(88) The GoTL is convinced that uniform electricity tariffs that are valid throughout the country have not proven successful in the past, as they do not reflect local differences of purchasing power of the population and the quality and reliability of energy services, and have not been capable of raising sufficient revenues that would lead to increased cost coverage rates. The GoTL will therefore allow that communities with isolated electricity grids operated by renewable energy will determine their own tariff rates, based on the principle that operational long-term costs must be recovered.

(89) Given the scarce nature of energy resources, efficiency and demand side management measures should be implemented as part of all energy planning and management.

(90) Recognizing that most of the electricity spent in rural areas serves for lighting purposes and reminding that all types of electricity supply to rural as well as urban areas will always be connected to high specific costs, it is essential and natural that electricity should be used as efficiently as possible. The GoTL will therefore take steps to prohibit or reduce the importation of incandescant light bulbs, which can easily be substituted by far more energy-efficient compact fluorescent lamps (CFLs) at only slightly higher capital costs.

(91) The GoTL will further take action in the course of 2008 that equipment and components that contribute to the efficient use of energy or serve for the exploitation of renewable energy resources will be exempted from all duties and taxes, starting in 2009.

Improved Data Base

(92) For all future energy planning, a reliable and detailed data base is fundamental, covering all aspects of energy generation and consumption, potential energy resources, costs, energy use of different sectors etc. The current data availabality is fragmentary, often inconsistent and not in line with international standards and requirements.

(93) The energy needs in rural areas beyond the household sector, that means in first place for productive purposes (such as in grain milling, drying of crops and fruits, food processing and cooling, craft activities etc.), commercial activities and communication, social institutions and for fresh water supply, are basically unknown. As energy service for those sectors can contribute to income generation or improve the situation in health, trade and education, an assessment of current and future needs for energy services, taking into account regional and geographical differences, is of fundamental importance.

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32 Rural Energy Policy for Timor-Leste (Proposal) – Final Version, July 2008

(94) The GoTL will therefore

- in collaboration with the National Directorate for Statistics, EDTL and the private sector improve the collection and verification of all data with relevance to the energy sector and elaborate a first annual energy balance for 2007 by the end of 2008; such energy balances will be elaborated in the shortest time possible after conclusion of the calendar year and made public annually;

- assess in collaboration of different Ministries, NGOs and other institutions, current and future energy needs for income generating activities, education, communication and health in different regions of the country. Focus will be concentrated on areas of Timor Leste, that have been neglected by development and show low level of progress in essential sectors. The energy needs will be quantified as well as prioritized and ways of supply coverage proposed.

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Main Tasks and Timeline

No. Task Responsible Timeframe General

1 Improve the data base for all types and sectors of energy production and consumption

SESP with National Directorate for Statistics, EDTL

Until end of 2008

2 Prepare the set-up of the Rural Energy Agency

SESP Until end of 2008

3 Introduction of Renewable Energy Fund SESP, Ministry of Finance 2009

4 Analysis and steps for energy-efficiency measures (in particular minimizing use of incandescant light bulbs)

SESP 2008

5 Introduction of duty and tax exemptions for equipment and components for energy-efficiency and use of Renewable Energy

Ministry of Finance, SESP Start in 2009

Biomass / Energy-efficient stoves

3 Biomass Resources Study SESP In 2009

4 Introduction of forest management and wood energy plantations

Ministry of Agriculture

5 Study on use of solid biomasses for process heat

SESP, Ministry of Agriculture In 2009

6 Preparation for long-term energy-efficient stoves programme

SESP with World Bank and NGOs

Start in 2008; first dissemination in 2009

7 Incentives for use of kerosene and LPG for cooking

SESP with Ministry of Finance and Ministry of Infrastructure

2009-2013

8 Investigations on on briquetting of solid biomass resources

SESP, Ministry of Agriculture, academic institutions

In 2009

Biogas

9 Assessment on potential resources for biogas production

SESP, Ministry of Agriculture In 2009

10 Programme for promotion and dissemination of standardized biogas plants

SESP, Ministry of Agriculture Preparation in 2008

11 Installation of pilot biogas plants SESP 2008/2009

12 Investigation on connection of biogas plants to sanitation facilities

SESP 2009

13 Training of biogas professionals SESP 2008/2009

14 Start of monitoring programme on biogas plant results

SESP with academic institutions

2008

15 Strengthening of research and training in biogas plant design, construction and operation

SESP and academic institutions

Start in 2009

Rural Electrification / General

16 Design of multi-year rural electrification SESP with Ministry of 2009

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No. Task Responsible Timeframe plan Infrastructure and EDTL

17 Realisation of gas seep projekt at Aliambata Ministry of Infrastructure with EDTL and World Bank

2009

18 Assessment of gas seep potentials Ministry of Natural Resources, Ministry of Infrastructure, SESP

2009

19 Substitution of diesel-based electricity supply for communication transmitters

Timor Telekom with SESP and Ministry of State Administration

Start in 2009

20 Amendments of electricity act to allow for private-sector and community participation

SESP, Ministry of Infrastructure

2008

Hydropower

21 Preparations and construction for mini hydropower plant Maununo

SESP with UNDP Start in 2008

22 Start tender process for Iralalaro and transmission line

.Ministry of Infrastructure with EDTL and NVE

2008

23 Start tender process for small-scale hydropower in Atsabe, Bobonaro and Maliana

SESP with Ministry of Infrastructure and EDTL, with NVE support

2009

Solar Lighting Programme

Assessment of institutional settings and technical performance of existing solar electricity projects

SESP 2008

Design and execution of multi-year Solar Lighting programme for off-grid households

SESP Start in 2009

Exploration of options for national manufacturing of solar lanterns and other solarelectric components

SESP 2008

Equipment of new and rehabilitated public buildings with solar pv plants

SESP with relevant ministries Start in 2009

Other Renewable Energy Resources

Assessment and prefeasibility of potential wind power sites

SESP with World Bank Start in 2008

Study on feasibility of small-scale wind generators

SESP In 2009

Study on use of wind-driven water pumps SESP In 2009

Pilot projects for Jatropha plantation and plant oil use

SESP with Ministry of Agriculture

Start in 2008

Promotion of solar thermal collectors SESP In 2009

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ANNEXES

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References and Technical Documents

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Most of the references have been received as soft copies (files) and have been made available to the Secretariate of State for Energy Policy Timor Leste. 1. References directly related to Timor-Leste ADB 2001 Asian Development Bank, Technical Assistance to East Timor for Preparing the Power

Sector Development Plan – Phase 1, October 2001

ADB 2002 Asian Development Bank, Fifth Progress Report on Timor-Leste, 2002

ADB 2003a Asian Development Bank, Government of East Timor: Proposed Technical Assistance for the Preparation of Foho Bagarkoholau Wind Farm Project, September 2003 (prepared by Electrowatt-EKONO in association with SKM)

ADB 2003b Asian Development Bank, Government of East Timor: Power Sector Development Plan for East Timor, September 2003 (elaborated by Electrowatt-EKONO in association with SKM)Volume I: Overview of Power Sector (September 2003); Electronic Version, September 2004

ADB 2003c Asian Development Bank, Sixth Progress Report on Timor-Leste, June 2003

ADB 2003d Asian Development Bank, Seventh Progress Report on Timor-Leste, December 2003

ADB 2004a Asian Development Bank, Timor-Leste – Eighth Progress Report, May 2004

ADB 2005a Asian Development Bank, Timor-Leste - Ninth Progress Report, April 2005

ADB 2005b Asian Development Bank, Technical Assistance Completion Report – Power Sector Development Plan, 2005

ADB 2005c Asian Development Bank, Timor-Leste – Country Gender Assessment, November 2005

ADB 2005d Asian Development Bank, Country Strategy and Programme Update 2006-2008, Timor-Leste, September 2005

ADB 2005e Asian Development Bank and World Bank: Trust for East Timor (TFET) – Report of the Trustee and Proposed Work Programme for May 2005 – April 2006, April 16, 2005

ADB 2007 Asian Development Outlook 2007, Democratic Republic of Timor-Leste

ATA 2004 Alternative Technology Association, Report on the East Timor Solar Lighting Project (Aileu), August 2004

ATA 2005 Alternative Technology Association, East Timor Solar Power Project, September 2005

ATA 2006 Alternative Technology Association, East Timor Solar Power Project, October 2006

ATA 2007a Alternative Technology Association, Village Lighting Scheme (Aileu), Status Report: Phase 1 – Consultation and Trials, 2007

ATA 2007b Alternative Technology Association, Switching on Timor – 2007 East Timor Renewable Energy Projects, September-November 2007

BON 2007 M. Bond et.al.: A policy proposal for the introduction of solar home systems in East Timor, in: Energy Policy 35 (2007)

CLO 2004 Jonathan Clouston: Coconut Oil as Fuel in Timor Leste – Viability of Coconut Oil as a Diesel Fuel Extender, September 2004

FAO 2007a Don Gilmour (FAO and Democratic Republic of Timor-Leste): Participatory Forestry in Timor-Leste: Discussion of Issues and Options, December 2007

FAO 2007b FAO and Government of Timor-Leste: Community forestry policy for Timor-Leste, draft, December 2007

FAR 2007 Field Assessment Report on “Urgent Rehabilitation Plan in Timor-Leste” (13 gensets donated by JICA), July 2007

GoTL 2002 Government of Timor-Leste: Electricity Sector Policy Paper, September 2002

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GoTL 2004a Government of Timor-Leste/UNDP: Participatory Rural Energy Development Programme in Timor-Leste, October 2004

GoTL 2004b República Democratica de Timor-Leste and United Nations Country Team: Timor-Leste – Millenium Development Goals Report, February 2004

GoTL 2005a Government of Timor-Leste: Natural Resources and Environment Sector Investment Program, November 2005

GoTL 2005b Government of Timor-Leste: Millenium Development Goals – Where are we now?, 2005

GoTL 2006a Government of Timor-Leste: Sector Investment Program, Natural Resources and Environment – Project Information Sheets, April 2006

GoTL 2006b Government of Timor-Leste, Private Sector Development – Sector Investment Program, April 2006

GoTL 2006c Government of Timor-Leste, Sector Investment Program for the Power Sector, April 2006

GoTL 2006d Government of the Democratic Republic of Timor-Leste/United Nations Development Programme: Promoting Access to Energy Services in Rural Areas of Timor-Leste and Formulation of National Rural Energy Development Policy, Project outline, September 2006

GoTL 2006e Government of Timor-Leste, Sector Investment Program for the Power Sector – Project Information Sheets, April 2006

GoTL 2007a Gabinete do Secretário de Estado da Política Energética: SE da Politica Energética, Programa SASE, Minuta para Discussão, 2007

GoTL 2007b Gabinete do Secretário de Estado da Política Energética: Politica Energetica Nacional, ....os rumos a tomar – estrategias, 2007

GoTL 2007c Democratic Republic of East-Timor, Presidency of the Minister’s office: IV Constitutional Government Program, 2007 - 2012

GoTL 2007d Governo da República Democrática de Timor-Leste, Decreto-Lei de Organica do IV Governo Constitucional

GoTL 2007e Ministry of Natural Resources, Minerals and Energy Policy, Rural Electrification Master Plan Timor-Leste, Update Report, October 2007

GoTL 2007f Francisco Ferreira (Ministry of Natural Resources, Minerals and Energy Policy): Summary of National Gas Seep Inventory 2006/2007

GoTL 2008 Ministry of Finance, Democratic Republic of Timor-Leste: General Budget of State 2008, Budget Paper No. 1, March 2008

IFC 2007 IFC/ADB: Timor-Leste – Economic and Social Development Brief, August 2007

IMF 2005 International Monetary Fund: Democratic Republic of Timor-Leste – Poverty Reduction Strategy Paper, National Development Plan, July 2005

NCBA 2003 The National Cooperative Business Association, The Coffee Cooperatives of East Timor, July 2003

NCRD 2008 Pedro Turquel de Jesus (National Commission for Research and Development (NCRD) / Ministry of Economy and Development): Power Sector, April 2008

NDP 2002 Planning Commission: East-Timor - National Development Plan, May 2002

NOR 2006 NORPLAN: Timor-Leste: Strengthening the institutional framework and capacities of the power sector, October 2006

NSD 2006a National Statistics Directorate of Timor-Leste: Population Projections 2004-2050, Analysis of Census Results 2004, Report 1

NSD 2006b National Statistics Directorate of Timor-Leste: Atlas Census of Population and Housing 2004, 2006

NVE 2003 NVE, Preparation for institutional cooperation between the Ministry of Transport, Communication and Public Works, Timor-Leste and Norwegian Water Resources and

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Energy Directorate (NVE), Norway, Mission Report, January 2003

SKM 2005 Sinclair, Knight, Merz (SKM), Technical Study on Use of Natural Gas Seep, December 2005

UN 2007 Paulo da Silva (UNDESA): Preliminary Report on Energy Activities, 2007

UNDP 2001 UNDP/Norwegian Consortium for Development and Environment (NODE), Assessing Environmental Needs and Priorities in East Timor, May 2001

UNDP 2006a Kiran Man Singh, UNDP - Participatory Rural Energy Development Programme (PREDP), Dili, Timor-Leste: Assessment Report (Submitted to GoTL, UNDP and PREDP, Timor-Leste), Vol. 1 – Main Report, February 2006

UNDP 2006b UNDP/Government of Timor-Leste: Promoting Access to Energy Services at Rural Areas of Timor-Leste and Formulation of National Rural Energy Development Policy, 2006

UNDP 2006c UNDP Country Office Timor-Leste/Ministry of Natural Resouces, Minerals and Energy Policy: Regional Energy Programme for Povery Reduction (REP-PoR) for Timor-Leste, February 08, 2006 (prepared by Abhijit Chatterjee and Zeferino Viegas Tilman)

UNDP 2006d UNDP: Human Development Report 2006 Timor-Leste, The Path out of Poverty: Integrated Rural Development, January 2006

USAID 2005 USAID: Investment Opportunity Assessment for Timor-Leste, May 2005

WB 2003a World Bank/ESMAP: Concept Note “National Rural Electrification Planning Timor Leste”, October 2003

WB 2003b World Bank and other Donors: Timor-Leste – Poverty in a New Nation: Analysis for Action (Vol. I and II), May 2003

WB 2004a World Bank: Project Appraisal Document on a proposed grant for a Power Sector Priority Investments Project, July 30, 2004

WB 2004b World Bank: Projekt Information Document, Power Sector Priority Investment Project, June 2004

WB 2004c Jonathan Clouston: Coconut Oil as Fuel in Timor Liste. Viability of Coconut Oil as Diesel Fuel Extender, September 2004 (Report for World Bank)

WB 2005a World Bank: Background Paper for the Timor-Leste and Development Partners Meeting, April 2005

WB 2005b World Bank: Coconut Oil Fuelled Power Generation in Timor-Leste, November 2005 (Report by Jonathan Clouston)

WB 2005c World Bank: Country Assistance Strategy for Timor-Leste FY 06-08, 2005

WB 2006a World Bank: Project Information Document – Concept Stage: Energy Services Delivery Project, 2006

WB 2006b World Bank (by John Conroy): Timor-Leste, Access to Finance for Investment and Working Capital, 2006

WB 2006c World Bank: Rural Electrification Master Plan Timor Leste – Draft Report, August 2006

WB 2006d Jonathan Clouston, Options for Renewable Energy Technologies in Timor-Leste, Draft for the World Bank, February 2006

WB 2006e World Bank: Project Appraisal Document on a proposed grant for a Gas Seep Harvesting Project, December 8, 2006

WB 2006f NORPLAN/econ (on behalf of World Bank/ESMAP): Timor-Leste: Strengthening the institutional framework and capacities in the power sector, October 2006

WB 2007a World Bank: Project Paper on a proposed grant to the Democratic Republic of Timor-Leste for an Energy Services Delivery Project, June 7, 2007

WB 2007b World Bank: Timor-Leste: Issues and Options in the Household Energy Sector, Workshop to discuss finding of a World Bank Scoping Study (presentations), June 19,2007

WB 2007c Keith Openshaw: Timor-Leste: Biomass Energy Supply, Draft Report to the World Bank,

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April 2007

WB 2007d World Bank, Timor-Leste – Issues and Options in the Household Energy Sector: A Scoping Study, June 2007

2. Other References

Energy and Millenium Development Goals DFID 2002 Department for International Development: Energy for the Poor – Underpinning the

Millenium Development Goals,

GNESD 2007a Global Network on Energy for Sustainable Development (GNESD/UNEP): Reaching the Millenium Development Goals and beyond: access to modern forms of energy as a prerequiste, 2007

REN 2005 REN21 Renewable Energy Policy Network: Energy for Development: The Potential Role of Renewable Energy in Meeting the Millennium Development Goals. Washington, DC:Worldwatch Institute, 2005.

UN 2005 United Nations: The Energy Challenge for Achieving the Millenium Development Goals, 2005

UNDP 2005b UNDP: Achieving the Millenium Goals: The Role of Energy Services, Case Studies from Brazil, Mali and the Philippines, January 2005

UNDP 2005c UNDP: Energy Services for the Millenium Development Goals, 2005

UNDP 2005d UNDP: Energizing the Millenium Development Goals, August 2005

UNDP 2006f Olav Kjoerven (UNDP): Energizing the MDGs: going beyond business-as-usual to address energy access, sustainability and security, 2006

UNDP2007e UNDP: A Review of Energy in National MDG Reports, January 2007

WIN 2006 Winrock International Nepal: Report on Assessment of Rural Energy Development Programme (REDP) Impacts and its Contribution in achieving MDGs, 2006

Access to Energy in Rural Areas / Rural Electrification / Energy and Poverty Reduction / Financing Models

ADB 2004b Asian Development Bank: Technical Assistance to the Islamic Republic of Afghanistan for Poverty Reduction and Rural Renewable Development (Financed by the Poverty Reduction Cooperation Fund), December 2004

ARE 2007 Alliance for Rural Electrification (ARE): Renewable Energy Technologies for Rural Electrification. The Role and Position of the Private Sector, 2007

BAR 1997 Douglas F. Barnes et.al.: Tackling the Rural Energy Problem in Developing Countries, June 1997

ESCAP 2005 UN Economic and Social Commission for Asia and the Pacific: Energy Services for Sustainable Development in Rural Areas in Asia and the Pacific: Policy and Practice, 2005

ESD 2003 ESD/DFID – Partnership for Access to Community Electricity (PACE): Policy Guidelines for increasing access to electricity through public/private partnerships, December 2003

GEF 2003a GEF Small Grants Programme: Community Action to Address Climate Change: Case Studies Linking Sustainable Energy Use with Improved Livelihoods, November 2003

GNESD 2005b GNESD/AFREPREN/FWD: The potential contribution of non-electrical Renewable Energy Technologies to Poverty Reduction in East-Africa, December 2005

GNESD 2005c GNESD/TERI: Renewable Energy in South East Asia for improving access to energy (with

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focus on India and Nepal), 2005

GNESD 2006 Global Network on Energy for Sustainable Development (GNESD/UNEP): Poverty Reduction – Can Renewable Energy make a real Contribution?, July 2006

GNESD 2007b Global Network on Energy for Sustainable Development (GNESD/UNEP): Renewable Energy Technologies and Poverty Alleviation: Overcoming Barriers and Unlocking Potentials, 2007

MODI 2004 Vijay Modi (Earth Institute/Columbia University): Energy services for the poor, December 2004

NREL 2000a National Renewable Energy Laboratory (NREL): Renewable Energy for Rural Schools, 2000

NREL 2005 A. Ghandour (National Renewable Energy Laboratory): Sustainable Rural Energy Development in Brazil, October 2005

OLA 2005 OLADE: Best Practices in Sustainable Rural Energy Development: Five International Case Studies – Project Rural: Electrification, March 2005

REW 2006 Peter Richards: Renewable Development – New strategies in rural electrification, in: Renewable Energy World, July-August 2006

SED 2004 Secretariat Energy for Development, The Netherlands: Energy for Development – Conference Papers, December 2004

UNDP 2002a UNDP: Clean Energy for Development and Economic Growth: Biomass and other Renewable Energy Options to Meet Energy and Development Needs in Poor Nations

UNDP 2002b UNDP: Energy for Sustainable Development, 2002

UNDP 2003 UNDP, World LP Gas Association: LP Gas Rural Energy Challenge, July 2003

UNDP 2004b UNDP: World Energy Assessment, overview 2004 update

UNDP 2004c UNDP: Energy for Sustainable Development in Asia and the Pacific Region: Challenges and Lessons learned from UNDP Projects, 2004

UNDP 2004d UNDP: Reducing Rural Poverty through Increased Access to Energy Services – A Review of the Multifunctional Platform Project in Mali, April 2004

UNDP 2004e UNDP/GEF: Solar Photovoltaics in Africa – Experiences with Financing and Delivery Models, 5-2004

UNDP 2005a UNDP: Scaling up Modern Energy Services in East Africa, July 2005

UNDP 2005e UNDP/GVEP (Global Village Energy Partnership): Kenya Energy Atlas, 2005

UNDP 2006e UNDP: Expanding Access to Modern Energy Services – Lessons from community-based energy initiatives, May 2006

UNDP 2007d UNDP: Energizing Poverty Reduction – A Review of the Energy-Poverty Nexus in Poverty Reduction Strategy Papers, March 2007

UNDP 2007f UNDP: Mainstreaming Access to Energy Services: Experiences from Three African Regional Economic Communities, May 2007

UNEP 2006 UNEP: Clean Energy, Entrepeneurs and Sustainable Development – The African Rural Energy Enterprise Development Initiative 2000-2005, 2006

USAID 2007 USAID: Powering Health – Electrification Options for Rural Health Centers, 2007

WB 1996 World Bank, Rural Energy and Development For Two Billion People, 1996

WB 2008 World Bank: The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits, 2008

WISIONS 2004 WISIONS (Promotion of Resource Efficiency Projects – PREP): Water and Energy – Precious Resources, 2004

WISIONS 2006a

WISIONS (Promotion of Resource Efficiency Projects – PREP): Microfinance and Renewable Energy – Investing in a Sustainable Future, 2006

WISIONS WISIONS (Promotion of Resource Efficiency Projects – PREP): Sustainable Biofuel

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2006b Production and Use – Options for Greener Fuels, 2006

WISIONS 2007 WISIONS (Promotion of Resource Efficiency Projects – PREP): Sustainable Energy for Poverty Reduction, 2007

WISIONS 2008 WISIONS (Promotion of Resource Efficiency Projects – PREP): Water for Energy and Energy for Water, 2008

Productive Use of Rural/Renewable Energy See also documents above on “Energy and Poverty Reduction”

GNESD 2005 GNESD / Enda-TM: The role of renewable energy in the development of productive activities in rural West Africa: The case of Senegal, March 2005

GNESD 2006b GNESD / Asian Institute for Technology: Report on Role of Renewable Energy for Productive Uses in Rural Thailand, January 2006

NREL 2000b National Renewable Energy Laboratory: Renewable Energy for Microenterprise, 2000

UNEP 2003a UNEP / Rural Energy Enterprise Development (REED): Open for Business – Entrepeneurs, Clean Energy and Sustainable Development, 2003

UNEP 2003b UNEP / Energy through Enterprise (E+Co): A Guide for Entrepeneurs on Income Generating Activities: Applications of Clean Energy Technologies for Productive Uses, 2003

UNEP 2003c UNEP / Rural Energy Enterprise Development (REED): REED Toolkit – A Handbook for Energy Entrepeneurs, 2003

UNIDO 2002 UNIDO: Initiative on Rural Energy for Productive Use, 2002

WB 2003c World Bank: Survey of Productive Uses of Electricity in Rural Areas, April 2003 (submitted by Robert E. Fishbein)

WIN 2004 Winrock: Guide to Energy Options for Small-Scale Rural ICT Projects, September 2004

Energy and Gender DFID 2003 University of Twente: The Gender – Energy – Poverty Nexus, Finding the energy to

address gender concerns in development, 2003

EED 2004 Energy, Environment and Development (EED): Re-thinking gender and energy: Old and new directions, May 2004

ENDA 2005a ENDA Tiers-Monde: The Faces of Energy-related Poverty through the eyes of Women and Men in Senegal, 2005

ENDA 2005b ENDA Tiers-Monde: Communities on the Margin of Development: Real Life Stories of Gender Energy and Poverty, 2005

KEA 2006 M.M. Kealotswe/University of Twente: Gender Mainstreaming in Botswana Energy Policy; Model for a Gender –Sensitive Energy Policy, August 2006

PRI 2005 Policy Research International: Energy, Women and Rural Poverty: A review focusing on Latin America, May 2005

UNDP 2004a UNDP: Gender&Energy for Sustainable Development: A Toolkit and Resource Guide, December 2004

UNDP 2007c UNDP: Will tomorrow be brighter than today? – Adressing gender concerns in energy for poverty reduction in the Asia-Pacific region, Bangkok 2007

Other Documents ASEAN 2007 EU-ASEAN Energy Facility: Analysis of the impact of enhanced use of renewable and

advanced fossil fuel technologies for power generation in selected ASEAN countries and

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development of appropriate policies and institutional frameworks, January 2007

BMU 2007 German Federal Ministry for the Environment/Umweltbundesamt: Renewable Energy and the Clean Development Mechanism, April 2007

ECLAC 2005 Detlef Loy/Manlio Coviello (UN ECLAC and GTZ): Renewable energies potential in Jamaica, June 2005

ESMAP 2007 ESMAP: Technical and Economic Assessment of Off-Grid, Mini-grid and Grid Electrification Technologies, December 2007

EU 2008 ACP-EC Energy Facility: Newsletters April 2006-April 2008 (No. 1 – 24)

GEF 2003b Global Environment Facility – Small Grants Programme: Responding to Climate Change, Generating Community Benefits, 2003

GTZ 2007 Detlef Loy/GTZ: Energy-policy Framework Conditions for Electricity Markets and Renewable Energy, Chapter Indonesia, September 2007

NEDO 2005 New Energy and Industrial Technology Development Organization (NEDO): CDM Development in Indonesia – Enabling Policies, Institutions and Programmes, Issues, Challenges, 2005

SRI 2007 Resources Development Consultants: Monitoring and Evaluation of the Renewable Energy for Rural Economic Development Project, Mid-Term Review Report, September 2004

SRI 2008 Sri Lanka: Biomass Energy Promotion towards Rural Economic Development and Environmental Sustainability, 2008

UBA 2007 Umweltbundesamt (Federal Environment Agency Germany): Promoting Renewable Energy Technologies in Developing Countries through the Clean Development Mechanism, October 2007

UNDP 2000 UNDP: World Energy Assessment: Energy and the challenge of Sustainability, 2000

UNDP 2006g UNDP: Clean Development Mechanism for Pover Reduction in Asia and the Pacific, 2006

UNDP 2007a UNDP (Regional Center Bangkok): Fuel to Change – Overcoming vulnerability to rising oil prices, Options for Asia and the Pacific, Bangkok, 2007

UNDP 2007b UNDP, Human Development Report 2007/2008, New York 2007

WB 2006f World Bank: Improving Lifes - World Bank Group Progress on Renewable Energy & Energy Efficiency in Fiscal Year 2006, December 2006

Training Package “Sustainable Energy Regulation and Policymaking” A comprehensive training package on “Sustainable Energy Regulation and Policymaking for Africa” has been funded by the United Nations Industrial Development Organisation (UNIDO) and the Renewable Energy and Energy Efficiency Partnership (REEEP) and was edited in 2007. It contains the following modules: INTRO Introduction and user manual

Module 1 Overview of renewable energy and energy efficiency

Module 2 The energy sector in Africa

Module 3 Introduction to energy regulation

Module 4 The reform of the power sector in Africa

Module 5 Regulation types and options

Module 6 Structure, composition and role of an energy regulator

Module 7 Formulating regulatory scenarios and national self-assessment

Module 8 Renewable energy technologies

Module 9 Impact of different power sector reform options on renewables

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Module 10 Regulatory and policy options to encourage development of renewable energy

Module 11 Increasing energy access in rural areas

Module 12 Distributed generation: options and approaches

Module 13 Energy efficiency technologies and benefits

Module 14 Supply-side management

Module 15 Demand-side management

Module 16 Impact of different power sector reform options on energy efficiency

Module 17 Regulatory and policy options to encourage energy efficiency

Module 18 Industrial energy efficiency and systems optimization

Module 19 Energy efficiency in buildings

Module 20 Financing options for renewable energy and energy efficiency

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Technical Documents The following lists contains technical documents that have all been made available to the Secretariate of State for Energy Policy Timor Leste as soft copies (pdf-files). The code/numeration refers to the file name. Biogas BIOGAS 1 A biogas kitchen (India), January 2007

BIOGAS 2 A small-scale biodigestor designed and built in the Philippines by Gerry Baron (Internet)

BIOGAS 3 Anaeobic Digestion – Information from Wikipedia

BIOGAS 4 Beginners’ Guide to Biogas (Internet)

BIOGAS 5 Small-scale biogas use with biodigesters in rural Costa Rica

BIOGAS 6 Lylian Rodriguez and T.R. Preston: Biodigester installation manual

BIOGAS 7 PACE: Biogas Action Sheet (Internet)

BIOGAS 8 Biogas Support Programm in Nepal, January 2008

BIOGAS 9 GTZ, Biogas Digest, 1999

BIOGAS 10 K. Vinoth Kumar, R. Kasturi Bai: Plastic biodigesters – a systematic study, December 2005

BIOGAS 11 Vietnam Biogas Programme (Internet)

BIOGAS 12 The introduction of low-cost polyethylene tube biodigesters on small-scale farms in Vietnam, 1997

BIOGAS 13 Gaslight

BIOGAS 14 Asia-Pacific Environmental Innovation Strategies: Biogas plants based on night soil

BIOGAS 15 Philipp Hartmann: Family size bio digesters in Asia

BIOGAS 16 Robert A. White: The role of biogas in rural development and resource protection in China: A case study of Lijang Municipality, Yunnan Province, China, July 2005

BIOGAS 17 Albert Butare: Biolatrines in Tanzania, 1996

BIOGAS 18 ITDG: Biogas and liquid biofuels, Technical brief

BIOGAS 19 LAMNET: Biomass Gas Generator, leaflet

BIOGAS 20 L. Neves et. al.: Anaerobic co-digestion of coffee waste and sewage sludge, 2004

BIOGAS 21 B. Pound et. al.: Biogas Production from mixtures of cattle slurry and pressed sugar cane stalk, with and without urea, Dominican Republic 1981

BIOGAS 22 Mantopi Lebofa: Demand oriented biogas technology extension in Lesotho

BIOGAS 23 K.V. Narasimha Murthy et.al. (International Energy Initiative): An effluent treatment-cum-electricity generation option at coffee estates: Is it financially feasible?

BIOGAS 24 Ludwig Sasse et.al. (GATE/GTZ): Improved Biogas Unit for Developing Countries, 1991

BIOGAS 25 H.N. Chanakya: Multifeed biogas reactor for coffee waste water and biomass wastes – performance under highly fluctuating operation conditions

BIOGAS 26 Biogas for Better Life: Power from Biogas Plant to Tribal Hamlet (India, 10 June 2007)

BIOGAS 27 GEF Small Grants Programme: Biogas Technology in Agricultural Regions, Tanzania, 2001

BIOGAS 28 SNV (Netherlands): Commercialisation and business development in the framework of the Asia Biogas Programme, March 2007

BIOGAS 29 Winrock International: Africa Biogas Initiative – Potential for Growth and Models for Commercialization, Annotated Bibliography, May 2007

BIOGAS 30 Biogas for Better Life – An African Initiative (different documents)

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BIOGAS 31 Bastiaan Teune (SNV Vietnam): The Biogas Program in Vietnam; Amazing results in poverty reduction and rural development; from: Boiling Point No. 53, 2007

BIOGAS 32 Vacvina, E+Co., Sale and Distribution of Household Biogas Systems (Vietnam), 2001

BIOGAS 33 Kurt Roos, Livestock Waste Management, Opportunities in S.E. Asia (presentation)

BIOGAS 34 GEF Small Scale Programme: Mali, Biogas in semi-urban areas, 2000

BIOGAS 35 SNV Vietnam: The Vietnam Biogas Programme

BIOGAS 36 Hoang Kim Giao (Ministry of Agriculture and Rural Development): The current situation of livestock production and waste management in Vietnam (presentation)

BIOGAS 37 Government of Nepal/Ministry of Science and Technology, Alternative Energy Promotion Centre: Biogas User’s Survey 2003/04, May 2004

BIOGAS 38 Albert Butare, Ainea Kimaro: Anaerobic technology for toilet wastes management: the case study of the Cyangugu pilot project, Kigali 2002

BIOGAS 39 Do Kim Tuyen: Overview of Biogas Technology in Vietnam, presentation

BIOGAS 40 Biogas Sector Partnership – Nepal: Necessary Conditions for Successful Introduction of Large Scale Biogas Programme: Deriving from Nepal Experience, October 2006

BIOGAS 41 Biogas Sector Partnership Nepal (website)

BIOGAS 42 Financing Biogas – A Reference manual for Microfinance Institutions in Nepal

BIOGAS 43 Govind Nepal: Policies for promoting investment in energy sustainability – A case of biogas sector of Nepal, March 2008

Energy-efficient Stoves and Indoor Air Quality STOVE 1 GTZ: How to build the Improved Household Stoves (Manual), November 2004

STOVE 2 GTZ: Diversity of Technologies (from the internet)

STOVE 3 GTZ: Impact Report – Efficient Use of Biomass for Cooking

STOVE 4 GTZ: Cooking Energy, 2007

STOVE 5 GTZ: Use an improved Stove to save Energy and the Environment, November 2003

STOVE 6 Boiling Point 46: Improved Stoves for preventing Deforestation. Myth or Reality?, Spring 2001

STOVE 7 Grant Ballard-Tremeer / Angela Mathee: Review of interventions to reduce the exposure of women and young children to indoor air pollution in developing countries, May 2000

STOVE 8 James H. Kilabuko / Satoshi Nakai: Effects of Cooking Fuels on Acute Respiratory Infections in Children in Tanzania, 2007

STOVE 9 New York Times: Stove for the Developing World’s Health, 22 January 2008

STOVE 10 UNDP to shrink Indoor Pollution and Conserve Forests in Pakistan, January 2007

STOVE 11 ARECOP - Asia Regional Cookstove Programme (Internet)

STOVE 12 OECD/IEA: Energy for Cooking in Developing Countries, from: World Energy Outlook 2006

STOVE 13 Didier Bazile: Improved stoves for preventing deforestation: myth or reality?, from: Boiling Point No. 46, Spring 2001

STOVE 14 How to design a Rocket Stove

STOVE 15 BioEnergy Lists: Biomass Cooking Stoves, website (portal), accessed 21.4.2008

STOVE 16 GTZ: Efficient Use of Biomass for Cooking, Impact report, 2004

STOVE 17 Eyça Ergeneman (Eritrea Energy Research and Training Centre): Recommendations for the Eritrea Dissemination of Improved Stoves Program, Spring 2003

STOVE 18 Peter Scott: Introduction of Rocket Stove Cooking Devices in Uganda, September 2003

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STOVE 19 Peter Scott: Introduction of Rocket Stove Technologies (Institutional stoves, Household stoves and insulative refractory bricks) into Malawi, October 2004

STOVE 20 Pakistan: More than 60,000 stove devices installed to conserve energy, 15 July 2007

STOVE 21 Peter Scott: Introduction of Rocket Stove Cooking Devices (Household Stoves, Bread Ovens and Institutional Stoves) into SADC Region, February 2004

STOVE 22 Daniel Theuri (ITDG): Rural Energy, Stoves and Indoor Air Quality, The Kenyan Experience

STOVE 23 Peter Scott: No Food without Fuel: Improved Cook stoves for WFP schools in Africa (Mozambique)

STOVE 24 Peter Scott: Rocket Stoves for Sub-Saharan Africa

STOVE 25 ESMAP: Impact of Improved Stoves on Indoor Air Quality in Ulaanbaatar, Mongolia, Report 313/05, November 2005

STOVE 26 Elizabeth Bates et.al.: Participatory approaches for allevating indoor air pollution in rural Kenyan kitchens, in: Boiling Point No. 48, 2002

STOVE 27 D. Ghebrehiwot (Ministry of Energy and Mines Eritrea): An integrated high efficiency stove design, September 2000

STOVE 28 Hugh Burnham-Slipper: Eritrean Stove Optimisation – Literature review, March 2005

STOVE 29 ESMAP: Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Woodfuel Resources, Technical Paper 112/07, April 2007

STOVE 30 ESMAP: Pilot Commercializsation of Improved Cookstoves in Nicaragua, Technical Paper 085, December 2005

STOVE 31 Winrock: Household Energy, Indoor Air Pollution and Health: Overview of Experiences and Lessons in Guatemala, October 2004

STOVE 32 Liz Bates (ITDG): Smoke health and household energy, September 2002

STOVE 33 ITDG: Kenya Smoke and Health Project 1998-2001 (brief description)

STOVE 34 Hugh Warwick et.at. (ITDG): Smoke – the Killer in the Kitchen, 2004

STOVE 35 ITDG: Reducing indoor air pollution in rural households in Kenya: working with communities to find solutions, 1998-2001, January 2002

STOVE 36 ITDG: The Upesi stove for households in Kenya (brief description)

STOVE 37 World Health Organization (WHO): Addressing the Impact of Household Energy and Indoor Air Pollution on the Health of the Poor: Implications for Policy Actions and Intervention Measures, 2002

STOVE 38 World Health Organization (WHO): Fuel for Life – Household Energy and Health, 2005

STOVE 39 A.R. Siddiqui et.al.: Eye and respiratory symptoms among women exposed to wood smoke emitted from indoor cooking : A study from southern Pakistan, in: Energy for Sustainable Development, September 2005

STOVE 40 Nicolai Schlag et.al. (Stockholm Environment Institute): Market Barriers to Clean Cooking Fuels in Sub-Saharan Africa: A Review of Literature, April 2008

Biofuels Jatropha JATRO 2 Biofuel for Sustainable Development and Poverty Alleviation in Cambodia in Rural Cambodia

(project Nov. 2004 – March 2006)

JATRO 3 Onua Amoah: Jatropha project in Ghana: How to restore vegetation and ecosystem along major man made lakes and ways to raise finance

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JATRO 4 D. Ramesh et.al. (India): Renewable Energy Technologies for Energy Generation from Jatropha Curcas

JATRO 5 R. Henning: Identification, selection and multiplication of high yielding Jatropha curcas L. plants and economic key points for viable Jatropha oil production costs

JATRO 6 Integrated utilization of the Jatropha Plant

JATRO 7 Jatropha sub-sector Evolution in Tanzania

JATRO 8 Giovanni Venturini Del Greco: The Jatropha Energy System: An integrated approach to decentralized and sustainable energy production at the village level

JATRO 9 Banarbas Marwire: Jatropha situation in Zimbabwe

JATRO 10 Hartlieb Euler: Case Study „Jatropha Curcas“ (India), April 2004

JATRO 11 GTZ: Proyectos de Jatropha con participación de Cooperación Alemana, 18.5.2006

JATRO 12 Reinhard K. Henning: “The Jatropha System” – Economy and Dissemination Strategy, June 2004

JATRO 14 Bagani GbR, The Binga Lamp for Jatropha Oil

JATRO 15 Reinhard Henning (GTZ), The Jatropha Manual (Zambia)

JATRO 17 Reinhard Henning et.al.: Intermediate Report of the Project “Production and Use of Plant Oil as Fuel” (Mali), November 1994

JATRO 18 List of Jatropha Projects world-wide, 2003

JATRO 19 Jacob Kahl Jebsen, Generative Propagation of Jatropha curcas L. on Kalahari Sand

JATRO 20 African Centre for Plant Oil Technology: Mali-Folkecenter converts pick-up to run on plant oil, 2001

JATRO 21 Hans-Jürgen Wiener (GTZ): Mali – Financial and Economic Analysis of the Jatropha System, January 1996

JATRO 22 Oil Expeller for Jatropha Seeds (Internet)

JATRO 23 Information on the Jatropha System (Literature list), 2001

JATRO 24 Oil extraction

JATRO 25 ATTRA: Oilseed processing for small-scale producers

JATRO 26 Wikipedia: Jatropha Curcas, 1.3.2008

JATRO 27 Wikipedia: Jatropha Oil, 1.3.2008

JATRO 28 Wikipedia: Biofuels in India, 2.3.2008

JATRO 30 Reinhard K. Henning: “The Jatropha System”. Integrated Rural Development by Utilisation of Jatropha curcas L. as Raw Material and as Renewable Energy, April 2004

JATRO 31 Wikipedia: Universal Nut Sheller, 1.3.2008

JATRO 32 M. Funcke-Bartz et.al.: Role of Hybrid-Systems in Rural Electrification – Experiences from pilot projects in Africa, June 2007

Biodiesel from Jatropha JATRO 1 S. Traoré: Characterisation of a biodiesel from an alkali transesterification of jatropha curcas

oil

JATRO 13 P. Chitra et.al.: Optimisation of experimental conditions for biodiesel production from alkali-catalysed transesterification of Jatropha Curcus oil, September 2005

JATRO 16 D. Ramesh et.al. (India): Production of biodiesel from jatropha curcas oil by using pilot biodiesel plant

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JATRO 29 Eize de Vries: Future of biodiesel? A look at the potential benefits of Jatropha, from: Renewable Energy World, May-June 2007

Coconut Oil COCO 1 Tony Deamer et.al.: Using Coconut Oil as a Fuel in Vanuatu, March 2005

COCO 2 William Burnyeat: What’s next for the tree of life? A socio-economic analysis of coconut oil as a potential substitute for diesel in Tuvalu, September 2004

COCO 3 Dennis Pont (energy options): Power and Heat Generation with Renewable Fuels – Liquid Solar Energy, 2005 (presentation)

COCO 4 Vanuatu’s Biodiesel from Coconut oil: its Economic and Environmental Impact, August 2005 (presentation)

COCO 5 Energy and Security Group: Assessment of a Potential Coconut-based Bio-diesel Refinery Initative in Fiji, and Establishment of New Rural Enterprises, July 2005

COCO 6 Vegetable Oils as Fuels – Examples, August 2005 (presentation)

COCO 7 Unelco-Suez: Industrializing cocofuel, August 2005

COCO 8 Liezzel M. Pascual et.al.: Comparative life cycle assessment of coconut biodiesel and conventional diesel for Philippine automotive transportation and industrial boiler application, 6-2004

COCO 9 Aurélie Leplus: Biofuel Energy from Coconut in the Pacific Islands – The Lory cooperative pilot project, January 2003

COCO 10 Charlie W. Blair: The Coconut Fireant, or “A Technology Assessment using Actor-Network Theory to analyse the Potential for Coconut Oil Bioenergy in the Fiji Islands, September 2004

COCO 11

COCO 12

COCO 13 Multifunctional Platform JATRO 33 The Multifunctional Platform (presentation and description)

JATRO 34 UNDP: Reducing Rural Poverty through Increased Access to Energy Services, A Review of the Multifunctional Platform in Mali, April 2004

JATRO 35 Design that matters – UNDP Multifunctional Platform, Report, July 2003 Solar Electricity (Photovoltaics) General Information SOL 1 ITDG: Solar Photovoltaic Energy, Technical Brief

Economy / Financing SOL 2 Mohanlal Kolhe et.al.: Economic viability of stand-alone photovoltaic systems in comparison

with diesel-powered system for India, 2002

SOL 3 UNDP: Solar Photovoltaics in Africa, May 2004

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SOL 4 IEA: Sources of Financing for PV-based Rural Electrification in Developing Countries, 2004

SOL 5 IEA: Financing Mechanisms for Solar Home Systems in Developing Countries, 2002

SOL 6 IEA: Financing Mechanisms for Solar Home Systems in Developing Countries, 2002 (Executive Summary)

SOL 7 Anders Ellegard et.al.: Rural People pay for Solar: Experiences from the Zambia PV-ESCO Project

SOL 8 F. van der Vleuten-Balkema et.al.: Market Development Models for Household PV Systems in Developing Countries

Capacity Building, Project Design and Implementation SOL 9 IEA: PV for Rural Electrification in Developing Countries – A Guide to Capacity Building

Requirements, 2003

SOL 10 IEA: PV for Rural Electrification in Developing Countries – Programme Design, Planning and Implementation, 2003

SOL 11 IEA: Institutional Framework and Financial Instruments for PV Deployment in Developing Countries, 2003

SOL 12 IEA: 16 Case Studies on the Deployment of Photovoltaic Technologies in Developing Countries, 2003

SOL 13 IEA: Summary of Models for the Implementation of Photovoltaic Solar Home Systems in Developing Countries, Part 1: Summary, 2003

SOL 14 IEA: Summary of Models for the Implementation of Photovoltaic Solar Home Systems in Developing Countries, Part 2: Practical Experience, 2003

SOL 15 F.D.J. Nieuwenhout et.at.: Experiences with Solar Home Systems in Developing Countries: A Review, 2001

SOL 16 Ecofys: Recommended Practices Guide: PV Dissemination Models for Developing Nations, 2001

SOL 17 Frank van der Vleuten-Balkema et.al.: Lessons learnt from Solar Sector Infrastructure Development in Africa and Asia

SOL 18 Frank van der Vleuten-Balkema et.al.: Systematic Approaches to Sector Infrastructure Development for PV in Developing Countries, 2002

SOL 19 IEA/CADDET: Solar Energy in Indonesia, 1999

Quality Standards and Technical Specifications SOL 20 GTZ: Quality Standards for Solar Home Systems and Rural Health Power Supply, February 2000

SOL 21 Rural Electrification and Renewable Energy Development Project Bangladesh (REREDP): Technical Specifications for Solar Home Systems, October 2002

SOL 22 China Renewable Energy Development Project

SOL 23 Sri Lanka, Renewable Energy for Rural Economic Development Project: Specifications for Solar Home Systems, August 2002

SOL 24 Moneer Azzam et.al.: Raising the standard – Gobal PV standardization and specification, in: Renewable Energy World, July-August 2004

SOL 25 IEA: The Role of Quality Management, Hardware Certification and Accredited Training in PV Programms in Developing Countries, 2003

SOL 26 Markus Real et.al.: Quality assured – PV GAP global quality label based on IECEE certification, in: Renewable Energy World, November-December 2004

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Components: Batteries, Lights, Modules, Controllers, Water Pumping, Solar Lanterns SOL 27 Kyocera: Battery types used in Solar Systems

SOL 28 How to keep batteries alive

SOL 29 Steca: Solar Light Bulbs (12V), technical specifications

SOL 30 Kyocera: KC series modules (contains technical specification lists, installation manual and some price lists)

SOL 31 Ammini: Solar PV modules, specifications

SOL 32 Kyocera: KS 20 module, specifications (20W module)

SOL 33 Solar Water Pumping

SOL 34 GTZ (gate): Photovoltaic Water Pumps

SOL 35 GEF/UNDP: Community-scale Solar Water Pumping, Thailand

SOL 36 Carbon Trade: Solar Water Pumps for Rural Villages in India

SOL 37 Nyserda: Guide to Solar-Powered Water Pumping Systems in New York State

SOL 38 Designing a small solar PV system

SOL 39 Ammini: Solar Home Systems

SOL 40 Omega Electronics: Solar Home Controller, technical specifications

SOL 41 Steca: Product catalogue 2007-2008 (extract, only PV off-grid applications)

SOL 42 Plasmatronics: Solar Charge Controller PL Series, User Manual

SOL 43 Plasmatronics: Solar Charge Controller PL Series, Reference Manual

SOL 44 ESMAP: Portable Solar Photovoltaic Lanterns: Performance and Certification Specification, and Type Approval, August 2005

SOL 45 Sri Lanka – Renewable Energy for Rural Economic Development Project: Specifications for Solar Lanterns, December 2002

SOL 46 Kieron Crawley et.al. (ITDG): Improved Designs for Solar Rechargable Lanterns and their Development and Marketing in Developing Countries, (talks about the Glowstar Lantern)

SOL 47 Gujarat Energy Development Agency: Specifications for a Solar Lantern

SOL 48 ITDG: Rural lighting (Technical Brief)

SOL 49 Omega Electronics: Indoor Lighting Luminary

SOL 50 Solux e.V.: Solux lights (lanterns for assembly)

SOL 51 Solux e.V.: Assembly Instruction for the Solar Lantern System Solux IP, January 2005

SOL 52 Solux e.V.: Basic points to open a solar-lantern workshop with SOLUX, January 2006

SOL 53 Solux e.V.: Price list for SOLUX solar lanterns

SOL 54 Hans Hartung: Solar Light for Oruching Valley, Uganda, October 2006

SOL 55 Solar Lanterns from China

SOL 56 Glowstar Lantern

SOL 57 Ammini (India): Solar Lanterns (Technical specifications)

SOL 58 Ammini Solar Pvt. Ltd.: Product Catalogue 2007

SOL 59 Asia-Pacific Environmental Innovation Strategies (APEIS): Market development for solar lantern in post-subsidy regime, August 2004

SOL 60 University of Illinois: Solar-Charged, Battery-Operated LED Lanters to Replace Oil Lamps in

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the Developing World, May 2007

SOL 61 Solar Aid, Homepage

SOL 62 Oorja Solar, Indian Supplier of Solar Lanterns

SOL 63 Noble Energy Solar Technologies (NEST), India: Affordable solar lanterns to replace kerosene lamps, 2005

SOL 64 World Bank, Solar Home System (brief factsheet), 2008

SOL 65 Solar Powered Laptops, Mobile Chargers and Cable Kits

SOL 66 Power-FAB: Module Mounting Structures

SOL 67 Alliance for Rural Electrification (ARE): Hybrid power systems based on renewable energies

SOL 68 SunTechnics: Repeater Stations with PV (case studies)

SOL 69 RERED Project: Survey of Batteries used in Solar Home Systems in Sri Lanka, 2005

SOL 70 Sri Lanka, RERED compliant batteries, February 2008

SOL 71 Sri Lanka, RERED compliant lights, February 2008

SOL 72 Sri Lanka, RERED compliant modules, February 2008

SOL 73 Sri Lanka, RERED compliant controllers, February 2008

SOL 74 Sri Lanka, RERED: Specifications for Solar Home Systems, July 2004 Hydropower HYDRO 1 European Small Hydropower Association (ESHA): Small Hydropower for Developing

Countries, September 2005

HYDRO 2 European Small Hydropower Association (ESHA): Environmental Integration of Small Hydropower Plants, September 2005

HYDRO 3 ESMAP: Stimulating the Picohydropower Market for Low-Income Households in Ecuador, Technical Paper 090, December 2005

HYDRO 4 GTZ: Mini-Hydropower Project Indonesia, 2002-2004

HYDRO 5 BChydro: Handbook for Developing Micro Hydro in British Columbia, March 2004

HYDRO 6 Chris Greacen: Low-head Micro hydro Thai Style, in: home power 124, April&May 2006

HYDRO 7 International Energy Agency (IEA): Small Hydro – Mechanical Equipment, 2000

HYDRO 8 ITDG: Best Practices for Sustainable Development of Micro Hydro Power in Developing Countries, March 2000

HYDRO 9 European Small Hydropower Association (ESHA): Guide on How to Develop a Small Hydropower Plant, 2004

HYDRO 10 International Network for Small Hydropower (IN-SHP): Light-up Rural Africa Project, August 2007

HYDRO 11 International Network for Small Hydropower (IN-SHP): Newsletters March and April 2007 and description of IN-SHP

HYDRO 12 Phillip Maher and Nigel Smith: Pico Hydro for Village Power – A Practical Manual for Schemes up to 5 kW in Hilly Areas, May 2001

HYDRO 13 Phillip Maher: The Pico Power Pack, May 2001

HYDRO 14 Pico Hydro Systems in Vietnam

HYDRO 15 SPLASH (EU-Project “Spatial Plans and Local Arrangement for Small Hydropower”): Guidelines for Micro Hydropower Development, October 2005

HYDRO 16 European Commission: Guide on Environmental Approach to Small Hydro Plants, 2000

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HYDRO 17 Energy Saving Trust: Small scale hydroelectricity, Factsheet

Solid Biomass

BIO 1 UNDP: Clean Energy for Development and Economic Growth: Biomass and other Renewable Options to Meet Energy Needs and Development Needs in Poor Nations, 2002

BIO 2 ESMAP: Advancing Bioenergy for Sustainable Development, April 2005

BIO 3 GTZ: The significance of Biomass Energy Strategies (BEST) for Sub-Saharan Africa, September 2006

BIO 4 Nguyen Le Truong et.al.: Potential of Distributed Power Generation from Biomass Residues in Vietnam – Status and Prospect, January 2004

BIO 5 ARECOP: Gasification Pilot Project – Status & Plan for Follow Up Actions, November 2007

BIO 6 TERI: Bioenergy and Agriculture – Promises and Challenges, December 2006

BIO 7 International Coffee Organization: Potential alternative uses of coffee wastes and by-products, August 2005

BIO 8 GTZ: Review of Coffee Waste Water Characteristics and Approaches to Treatment, August 2002

BIO 9 GTZ: Re-use of processing residues can create additional income, April 2003

BIO 10 Information on Briquetting

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World Bank comments to the draft Rural Energy Policy

Page 55: Rural Energy Policy for Timor-Leste

THEWORLDBANK

Antonio S. FrcncoCountry ManagerTimor-LesteEast Asia and Pacific

Avenida dos Direitos HumanosDili

Timor-Lestea&anco @worl dbank. org

Telephone (670) 723 0550Fax (670) 332 117E

July 4, 2008

H.E. Secretary of State for Energy PolicyMr. Avelino Maria Coelho da SilvaSecretariat of State for Energy PolicyDili, Timor-Leste

- Subject: Draft Rural Energ! Policy for Timor-Leste - ll'orld Bank Comments

Dear Excellency,

Firstly, I would like to congratulate you and your team for completing the draft RuralEnergy Policy for Timor-Leste and the public consultation workshop that was held on May 17,2008 in Dili. As requested, I am pleased to provide you with comments from the World BankEnergy Team which I hope are useful during the process of finalizing the Policy. We would behappy to further exchange views with you and your team through a video or audio conference ifyou wish so.

Secondly, I am pleased to inform you about the launching of the Energy SectorManagement Assistance Progtam (ESMAP)-financed wind measurement Technical Assistance(TA). An expert has been identified and would be available to come to Timor-Leste in the next fewmonths. Also, we may try to propose additional grant funding from Asia Sustainable andAltemative Energy Program (ASTAE) for TA in Rural Energy to support the improved stovesprogram in Timor-Leste, if the Govemment so wishes and if no other donor is already involved.

Please accept our most respectable compliments and kind regards.

Sincerely

East Asia and Pacific Region

Enclosed: World Bank Comments on Draft Energy Policy for Timor-Leste.

(;<Antonio S. Franco

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GoMMENTS ON DRAFT RURAL ENERGY pOLlCy (DATED 12 MAy)

Introduction

Not seeing the TOR, it is not possible to comnent on whether the output fu1ly reflects thestudy requirements. As is, the document provides a useful inventory of the Government ofTimor-Leste (GOTL) pronouncements on energy matters, issues on energy supplies andelectrification, as well as some detai-led information on current and potential utilization ofrenewable energy sources. Although there are some policy recommendations on selectedmatters, the document does not really articulate organized policy statements, as suggestedby the title. But there is no question that the document provides very useful inputs to thearticulation of rural energy policy.

Alternative Energy Sources

There is one aspect that sharply distinguishes Timor-Leste (TL) from similar poor nations; TLis generating substantial income from its petroleum resources. This does not negate the needto devdlop alternatives energy sources. Nevertheless, as the authorities consider thestrateg-ies for the development of alternative fuels, it is suggested that consideration be givento the fact that many of the options may be more expensive and less practical thanconventional fuels. Some will require development and commercialization timeframes thatcould extend up to a decade, when modern fue1s may be more widely available. Forexample, given this situation, one may not want to develop a long term investment plan forestablishing latropha plantahons, building extraction and refining plants, and establishingdistribution centers for biodiesel for use in transport or electricity generation. Such a large-scale program for biodiesel development was not advised by report (which orLly mentionedit as worth studying for small-scale decenhalized electricity generation) but is only beingcited here to illustrate the point.

The promotion of renewable energy alternatives in the meantime is a good national strategy.The possibilities for TL are wide open because it is endowed with all kinds of resources. Themain elements to keep in mind are cost and practicality. Even when the electricityinfrastructure in TL is fu11y developed in the future, economic or nearly economic renewableenergy alternatives would still be worth developing, such as hydro and wind power plaltsthat take advantage of available, clean energy resources. Technologies such as solar waterheating, parlicularly for commercial establishments, would also be still worth pursuingbecause of its load reduction and energy efficiency value. Technologies for remote, offgridapplications, such as solar horne systems, will stil1 make sense. It would seem, however, thatfor a country with a very small land area and where most parts appear to be accessible, thetotal potential for offgrid applications will not be as high as in typical developing countriesand so some care must be exercised when determining where (and what leve1 of) resourcesfor rural energy development need to be allocated.

Biogas (frorn animal wastes) appears to have a strong emphasis in the GOTL ruraldevelopment plans, and the main idea appears to be the promotion of backyard biogasdigesters for households, mainly for cooking fuel needs. Such domestic systems have beensuccessfully promoted in South Asian countries, China and others where there is strongcultural familiarity with every day use of animal dung. It has been a lot less successful inPacific Island countries, as shown by various past studies. As mentioned in the report, thernajority of households in TL own less than 5 cattle, the minimum needed for the fuel needsof a typical household; this already highlights the very limited application of the technology

Detlef Loy
Comment on Text
I don't know, what the author means by "organized policy statements". If one looks through examples, there are very different ways of expressing policies in the various countries.
Detlef Loy
Comment on Text
It is not realistic to assume that there are any "modern fuels" available at commercial scale and competitive within the next 15 years, which are not known today. Yes, some timeframes may appear long (as they are for setting up any large scale fossil fuel power plant), but this cannot prevent from taking decisions today.
Detlef Loy
Comment on Text
The options are in first place hydropower and solar PV. Expensive for whom? If the Government agrees to cover all costs, yes petroleum based energy supply could be an option. If the fundamental criteria is that subsidies should be avoided or minimized and the energy supply should reflect the purchase power of the population, then it is evident that full-scale electrification (based on any nation-wide grid power) is not viable in the medium to long-term.
Detlef Loy
Comment on Text
We have made a careful estimation, based on the Norplan study and found that about one third of all rural households have neither sufficient electricity demand nor financial capacity to allow for a sustainable on-grid connection.
Page 57: Rural Energy Policy for Timor-Leste

for the intended beneficiaries. The decision to start the program with households owning 5or more cattle may address the technical requirements but would raise questions ontargeting of subsidies because families who own more than 5 cattle are like1y to be the mostaffluent ones. For this and other reasons, including lessons from experience in othercountries, it may more advisable to support energy production from arrirnal wastes only inlarge-scale livestock farms, where wastes are easier to collect, and where economy of scalecould be achieved. The biogas produced could be converted to electricity and fed to the maingrid, or fed to an isolated minigrid; or the energy used for local communal productiveapplications in the farrn s vicinity. The scale of operation will make it possible to assigndedicated technlcal personnel that could troubleshoot operational problems and keep theplant functioning. Such problems have been the main reason why rnany backyard biogasdigesters built in other Pacific Island countries were prematurely abandoned.

Ultimately, the area that deserves the main attention of rural energy plalners are issuesassociated with forestry and the use of fuelwood. With over 90% of total primary energyconsumption being accounted for by the use of fuelwood in cooking, it is hard to find anyalternative fuel that could make a dent into this consumption pattern. Fortunately, as foundby the recent World Bank scoping study on household energy, biomass supplies in TL arestill fairly abundant. With proper forest management and effective demand side measures,wood can be a sustainable fuel not only for households but also for small rural industries

The report's recommendations to support reforestation, establishment of wood plantations mcritical areas and large-scale dissemination of irnproved stoves are thus well-placed. Theseare consistent with the analysis and recommendations made by the World Bar* scopingstudy. o IrL particular, the launching of an improved stoves progaam would appear to be aneffort that is not compiicated to do and would have modest costs compared to the highpotential for saving fuelwood and forests, as well as reducing health impacts of indoor airpollution. The key is to design a program of sufficient critical mass with opportunities forsome cost recovery from users, to stimulate private production of improved stoves andimprove the chances of sustairability.

Fuel Subsidy

The report recomrnends consideration of a subsidy for LPG and kerosene over a maximumperiod of 5 years to reduce pressure on wood resources. \\4ri1e the intention is not debatable,it may be useful to consider potential adverse results of such a fuel subsidy. The mainbeneficiaries of the subsidy will be the few, affluent households who are now using thesemodern fuels, as well as other relatively aJfluent ones who are still not using them but couldquickly shift because they are near distribution centers (mairLly urban). Based on WBexperience in other countries, it may be better to use the subsidies to "improve access" bypoor households. This means, for example, persuading/subsidizing suppliers to marketsmaller cylinders (since many poor households cannot afford to pay for the contents of a fullcylinder per purchase); subsidizing establishment and operation of rural distribution centers;and providing subsidies for cylinder deposit and the purchase of new stoves. It is suggestedthat a study be commissioned to design a targeted and effective subsidy mechanism formodern fuels in TL

Detlef Loy
Comment on Text
We have stressed at various occasions that the beneficiaries will need to carry some costs as well. Without subsidies there will be no development of such resources at all.
Detlef Loy
Comment on Text
Those large-scale farms are not common in TL - otherwise such proposal would be correct. There have been good examples for biogas use at smaller scale in Nepal.
Detlef Loy
Comment on Text
We have made proposals in this direction. Providing subsidies on LPG means to expand the basis of those who can afford to purchase such fuel. It is impossible to always exclude those from subsidy schemes who may be able to pay higher prices.
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Institutional setting and regulation

REA

The draft report proposes the establishment of Rural Energy Agency (REA) "as a publicinstitution with administrative, managerial, technical and financial autonomy to channelGovernment and donor grants and technical assistance to the private sector and ruralcommunities for the implementation of projects that provide access to modern and efficientenergy services in the rural community." This approach may well be seen as best practicebut is it the right practice for Timor-Leste? Key queslions are:

1. How well does it fit with the capacity constraints in Timor-Leste?2. What is the plaruring role of this body and how would it coordinate with other

entities such as EdTL/MHI, the Utility Board and the Ministry?3. How feasible is the rnodel of strong autonomy for a body that will play a role that is

politically very important?

The consultant (Norplan) report (entitled Timor-Leste: Strengthening the institutionalframer,r'ork and capacities rn the power sector, dated October 2006) on the ruralelectrification strategy recommended "a dedicated rnstitution or department responsible forrural electri{ication." It was to be guided by the Government's policy on rural electrificationand ait would be responsible for "planning and setting the stage for implementation. ... Aclear RE plan based on transparent criteria . .. are paramount .. . Equally important is that thedepartment or institution need to have autonomy to avoid political interference." Theproposed REA would essentially fill the role envisaged in the Norplan report.

Consistency with resource constraintsThe limited resources and expertise within the pubJic sector is one of the key constraints rnTimor-Leste. There is a risk that the establishment of a separate entity may further fragmentand dilute the available capacity. This was recognised in the report on the NorPlan report oninstituhonal arrangements for the sector that deferred the establishment o{ a sector regulator.It is not clear where the resources for the unit would come from. The report addresses theissue of funding of the REA - which in Timor-Leste is not the primary constraint - but notwhere it would get its staff.

Previous visits have indicated that the Ministry has few resources available to it. The recentexpansion in capacity has come through the appoinlment of MHI and will be augmented bythe appointment of the Utility Board and its advisors. But ii is not clear whether/how theproposed REA would tap into these resources. If a separate REA is to be established it islikely to need external support and expertise initially and a comnitment to building up 1oca1capacity.

Planning role and coordination with MHI/EdTLSince the Norplan report:

1. MHI have been engaged as the management conhactor for EdTL and have shown anenthusiasm and capacity to take on a broader supporting role for electricity planningand development. In its corporate plan submitted to the MOI in November 2007,MHI have proposed the establishment of tr'vo units a system planrring unit and anoutside Dili electrification unit that would be supported by MHI/EdTL.

Detlef Loy
Comment on Text
This is absolutely correct. We see no interference with EDTL, as they are currently busy enough to just organize the power supply for Dili and some other locations.
Detlef Loy
Comment on Text
We agree that there is currently significant overlap of energy responsibility on the Government side, but there is substantial understaffing on the implementation side.
Detlef Loy
Comment on Text
We agree fully on this point.
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2. Funding has been provided under the IDA-financed Energy Services DeliveryProiect for ensasement of a technical and a financial advisor to the EdTL Boardwhich will supervise the management contract and provide sector advice.

NorPlan prepared a Rural Electrification Master Plan that developed proposed criteria andproposed trials for rural electriJicahon. But it is clear that this would need to be furtherdeveloped and in a sense planning for rural electrification is an ongoing process. Theproposed role for the REA is to facilitate the implementation of the plan. l,Vhat is not clearfrom the draft report who will be responsible for the continued development, review and up-dating of a rural electrification plan.

It may be desirable, in terms of coordination and the most effective use of the available use ofresources, to make use of the expertise available in MHI alrd the advisors to the UtilityBoard. The structures proposed for the planning unit and the outside Dili electrification unit(which is intended to focus on rehabilitating existing systems outside Dili) could provide asuitable model. This would make better use of the available resources, improve coordinationand reduce fragmentation. There are potential concerns of a conJlict of interest and that MHImay 'squeeze' out potential private interest. But in the current environment in Timor-Lestethese concerns may be more theoretical than practical. Vanuatu may provide a usefulprecedent. The incumbent electricity supply in Port Vila in Vanuatu is working with theGovernment on the development of an electri-fication strategy. It indicated that it does notwish to have a long term role in small-scale renewable electrification but it is happy to workwith the government to develop a plan and facilitate its ro1l-out.

Feasibility of increased autonomyIn practice the autonomy sought for the REA may be difficult to achieve. EdTL/MHI wasalso to be given greater autonomy under the management contract but this is provtngdifficult to achieve.

ln other circumstances the recommended approach would be very sound. However, giventhe concerns in regard to the resources avai-lable, the coordination with sirnilar urLits and theprospects for achieving autonomy, alternative institutional arrangements could beconsidered. One option would be to use the units proposed bv MHI on system plarming andelectrification outside Dili or establish a urLit along simrlar lines tapping into the resource ofMHi and the advisors to the Utilitv Board.

The roles and functions outlined for the REA on p27 appear to be quite sound.

Regulatory arran gements

In para 79 the report mentions that the GoTL will need to improve and strengthen theregulatory arrangements, but it does not indicate what the current problems are and howthey can be remedied. It would be helpful if this could be clarified.

There are a number of bases upon which funding/bidding for new areas could beundertaken. It could be on a lowest gross cost basis (exclusive of revenues) or a net subsidyrequired basis. The latter is more common but requires a price path and this may be one ofthe regulatory issues that the report has in rnind. Using this as an example, one optionwould be to set the price and lock it in through the contract or concession documents. Thiscould be speci{ic to a particular area with prices varying between Dili and rural areas andeven between rural areas. There are arguments from the point of view of efficiency and

Detlef Loy
Comment on Text
It is mentioned that this will be the responsibility of the SoS for Energy Policy.
Detlef Loy
Comment on Text
We appreciate the involvement of EDTL in this process. But we are sceptical if EDTL has knowledge and structure to provide support for small-scale rural electrification. But this certainly needs to be further discussed. It is also not excluded, that the REA takes EDTL "on board", wherever this is necessary.
Detlef Loy
Comment on Text
But why? EDTL has no autonomy and is completely dependent on Government decisions.
Detlef Loy
Comment on Text
Currently it is not even clear, within which legal environment isolated grids are operating. Who can set-up those grids, who can charge what tariff for those services? Which rights have consumers in those areas?
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financial viability that rural electricitv charges should be higher than the charges rn Dili dueto the higher costs. This is a significant issue for determination by Govemment but settingthe price and locking it in through a contract does not require the establishment of aregulatory agency. This is an an important point. It is often assumed that a regulator tsrequired but as the NorPlan report indicated, establishing a regulatory agency should not bea high priority at this point in time given the lirnited resources available.

Other lssues

P7, para 9 - in this para and elsewhere in the report endorses a strong preference forindigenous sources of energy, especially renewablc energy but does not appear to considerthe costs involved. What is the decision point where environmental and community benefitsdo not outweigh the additional cost of locai renewable resources? This para is iust anexample of a broader concern that the report does not give due regard for to the potentialcost premium for these solutions and recognise that a more balanced approach may seeelectrification of a large number of Sucos occurring through connection to the grid or localnetvvorks and the use of conventional generators - at least this is the indication from theNorplan report on rural electrification.

P7 para 10 - should principle be to "base all decision on multi-stakeholder dialogues" or"have regard to view expressed through multi-stakeholder dialogues"?

P12 14 - The major challenge, as in the case of other countries, is not so much thepronouncement of guiding principles that are generally sound in the draft paper for rural andrenewable energy development, BUT HOW to implement efficiently and effectively the good

intentions of the govemment. Thus, it is recommended that the realism of the timeline forachieving some of the specific objectives and targets cited in the draft report (e.g. 100%electrihcation etc.) be reassessed to avoid unrealistic expectations.

Pl3 the report cited the following objective: "substitute all existing rural diesel generators

by hydropower by 2013 and thereby cut down excessive operational costs..." It isrecommended that the realism of this objective be reassessed. Indeed, the recent govemmentinvitation for expression of interest to build two thermal (heavy fuel oil) power plants (150-200MW) and national power grid in the short term is not consistent with the stated policy inthe report to promote renewable energy as the above large thermal power plants will obviatethe need for Iralaro and other renewable energy for porver generation.

P21. para 62 - While the feasibility study for Iralaro carried out an installed caPacityoptimizahon, it did not athibute any peaking value to capacity. It also did not consider thepossibility of making provisions in the first stage for a later capacrty addition. A third unitcould increase energy generation from 190 to 230 GWh (when the system is large enough toabsorb it).

Detlef Loy
Comment on Text
We are talking about regulations (an amended electricity act), not about regulating the electricity market or setting up a regulatory agency. We certainly do not consider to bring in new actors on the basis of concession contracts. We strongly favour a community-based approach and setting tariffs on a a regional or local level.
Detlef Loy
Comment on Text
The Norplan reports clearly states that diesel generators should be phased out wherever possible because they are uneconomical. We have further noted from this report that there are mainly three alternatives: 1) connection to the grid, 2) isolated hydropower, 3) decentral solar electricity. For a major part of the country grid electricity or hydropower is out of perspective, either due to remoteness and low demand or due to lack of resources.
Detlef Loy
Comment on Text
We are talking about basic electricity supply by 2020 - not about electrification. This is 100% realizable until 2020 (and needed, if further migration from rural areas to Dili and other urban areas should be avoided).
Detlef Loy
Comment on Text
This is Norplan's recommendation.
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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

List of People and Institutions contacted during the Consultation Process

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

 Mr. Avelino Coelho da Silva Secretary of State for Energy Policy 

Mr. Januario da Costa Pereira Secretary of State for Electricity, Water and Urbanization, Ministry of Infrastructure 

Mr. Papito Monteiro Secretary of State for Rural Development and Cooperatives, Ministry of Economy and Development  

Mr. Abilio de Deus de Jesus Lima Secretary of State for Environment  

Mr. Vergilio Guterres Permanent Secretary for EDTL 

Mr. Valentino Varela Secretary of State for Livestock, Ministry of Agriculture 

Mr. Joao M. Saldanha MCC‐Point of Contact, Ministry of Finance  

Mr. Nick Beresford UNDP‐TL, Deputy Country Director (Operations)  

Mr. Pradeep Sharma UNDP‐TL, Head of Poverty Reduction and Environment Unit  

Ms. Sarina Kilham Project Manager, UNDESA‐TL  

Mr. Rui Gomes Policy Advisor, Pro‐Poor Policy, Focal point for MDGs & NHDRs, UNDP Environment Section  

Ms. Jenny Asman Advisor for Director of Budget, Ministerio de Financas  

Mr. Miguel Lobato Director Direcao Nacional do Turismo, Ministerio do Desenvolvimento  

Mr. Mario Nunes National Director of Forestry, Ministerio de Agricultura  

Mr. Óscar Lima Representative, Entrepreneurship in Dili  

Mr. Agusto Pereira de Araujo Subdistrict Administrator, Liquisa District, Subdistrict Bazartete  

Mr. Shinobu Yamaguchi First Secretary, Embassy of Japan, Timor‐Leste  

Ms. Maiko Shimizu Researcher (Economic and Political Affairs), Embassy of Japan, Timor‐Leste  

Mr. Charles Andrews Country Director of Asia Development Bank (ADB), Timor‐Leste  

Mr. Kamijo Tetsuya Resident Representative, Japan International Cooperation Agency (JICA)  

Mr. Dorvin E. Stockdale Team Leader‐Economy Growth Program, USAID, Timor‐Leste  

Ms. Robin Scott‐Charlton, Counsellor Development Cooperation   AUS‐AID, Timor‐Leste  

Mr. Kassius Klei Ximenes Counterpart of Hydropower project,  Hydro Timor, Dili  

Mr. Egil Skofteland Project Director, International Section Norwegian Water Resources and Energy Directorate  

Mr. Orlando Sarmento Deputy Director,Caritas Diocesana Dili  

Mr. Demitrio do Amaral de Carvalho  Director Haburas Foundation, Dili  

Mr. Johanes Usboko Assistant Director of Universidade Nacional 

Mr. Kim Tchia Owner of Startec Enterprises, Dili 

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Timor‐Leste (UNTL)  

  

Mr. Antonio Ribeiro Chefe do Suco Cameia, Dili  

Mr. Jose do Santos Bareto Chefe do Suco Lau‐Hata, Liquisa District  

Mr. Joao de Jesus Monteiro Chefe do Suco Railako Kraik, Ermera District, Subdistrict Railako  

Ms. Maria Laidia de Jesus Belo Chefe do Suco Gariuai, Baucau District   

Mr. Francisco Arao de Sousa Chefe do Aldeia Fatuk Laran, Manatuto District, Suco Cairui   

Mr. Domingos Sorares Chefe do Suco Manleu, Metinaro  

Mr. Acacio de Araujo Chefe do Suco Maquile, Subdistrict Atauro, Aldeia Fatu Lela  

Mr. Paulo da Silva National Renewable Energy Professional, UNDESA  

Mr. Aires Eddie de Almeida UNDP Technician (Biogas) 

Mr. Jaime Freitas  Stove technician, Metinaro, Dili  

Mr. Oscar da Silva Community Development, UNDESA  

Ms. Evelina Monteiro Lopes Local community, Subdistrict Maubara, Gicu  

Ms. Cristina Ribeiro and Ms. Ceyorinya Gutteres Local community, Metiaut, Dili  

Mr. Camilo Luis da Costa Local community, Manatuto District, Suco Cairui,  Aldeia No 1  

Mr. Jose de Jesus da Silva Local community, Suco Laulara, Aldeia Borlete  

Mr. Carlos Boromeo de Araujo Local Community, Subdistrict Atauro, Suco Maquile, Aldeia Fatu Lela  

Mr. Faustino Bianco Local community, Ainaro District, Subdistrict Hatuudo, Suco Leolima  

Mr. Herman Klau Taek / Operator    Suai District, Suco Beco  

Mr. Moises do Carmo Local Community, Sub district Atauro, Suco Maquile, Aldeia Fatu Lela  

Mr. Roke Viegas de Souse and Mr. Lopes Fatima Simoes Local Technicians, Manatuto District, Suco Cairui, Aldeia Hatukarau   

Mr. Carlito Mendosa and Mr. Joao de Jesus Local technicians (operators), Subdistrict Remexio, Suco Asmao  

Mr. Anastacio Magno Moniz Local technician, Suai District, Sub Zumalai, Mape  

Mr. Rainer Venghaus Country Coordinator, International Finance Corporation (IFC), Timor‐Leste 

Mr. Desmond Murphy Director General, Manitoba Hydro International Ltd. / EDTL 

Mr. Sergio M. do Espirito Santo General Manager, Instituticao de Microfinancas de Timor Leste 

Dr. Günter Kohl German Agency for Technical Cooperation (GTZ), Timor‐Leste 

Mr. Didier Francisco Head of Mission, Triangle 

Mr. John A.C. Steel, Projekt Management Advisor, Ministério da Agricultura, Florestas e Pescas 

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Mr. Deolindo da Silva, jr. National Director, Directorate of Agriculture and Livestock 

Mr. Joao Gomes Operations Officer EACDF, World Bank Timor‐Leste 

Mr. Des McGarry Land and Environment Specialist Queensland Government – Natural Resources and Water 

Shane McCarthy  Cooperative Agribusiness Advisor, USAID East Timor 

Anton Vikstrom Project Manager International Projects Group ATA – Alternative Technology Association 

Alf V. Adeler Senior Advisor, Norwegian Water Resources and Energy Directorate 

Ms. Hiroko Takagi Country Director (Programme), UNDP Timor‐Leste 

 

   

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

1. Workshop, 3 March 2008

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

AGENDA DO WORKSHOP FORMULAÇÃO DA POLÍTICA ENERGÉTICA RURAL

Salão de Conferência do Hotel Elizabeth

(antigo Hotel Díli 2000), Díli 3 de Março de 2008

TEMPO APRESENTAÇÕES ORADORES

09:00 - 09:10

Abertura do Workshop

Sr. Avelino Coelho da Silva, Secretario do Estado da Política Energética

09:10 – 09:25 Desafios e Perspectivas da Política Energética de Timor-Leste (TL)

Sr. Avelino Coelho da Silva, Secretario do Estado da Política Energética

09:25 – 09:45 Situação actual da Energia em TL Sr. Detlef Loy, Consultant for UNDP

09:45 – 10:00 Experiência sobre o uzo de fogões para eficiência de energia

Sr. Perdo Sarmento, UNDP

10:00 – 10:20 Experiências sobre Painéis Solares Sr. Kim Tchia, Startec Enterprises

10:20 – 10:40

Perspectivas sobre a electrificação rural e linhas de distribuição nas áreas isoladas

Sr. Vergilio Guterres, Permanent Secretary for EDTL

10:40 – 11:00 Pausa para Café

11:00 – 11:20 Experiências sobre lanternas Solares e Painéis Solares para Bombas de água. Caminho para o futuro ?

Sr. Paulo da Silva, UNDESA

11:20 – 11:40 Experiências sobre uzo de Biogas de pequena escala nas comunidades em áreas remotas

Sr. Aires Eddie de Almeida

11:40 – 12:00 Uzo de biogas (sistema cooperative) para a produção de electricidade

Sr. Filisberto Bere, Movimento Coperativa Agricula

12:00 – 12:20 Experiências sobre o uzo de “Gas seep” em Timor-Leste

S Sr. Vergilio Gutteres, Permanent Secretary for EDTL

12:20 – 13:30 Almoço

13:30 – 13:50 Uzo de recursos hídricos para a produção de energia eléctrica

Sr. Kassius Klei Ximenes, Secretariat of State for Power, Water and Urbanisation (Hydro Power Counter Part):

13:50 – 14:10

Experiências sobre os projetos de reflorestação, possibilidade do uzo de “coffee pulp” para biogas

Sr. Shane McCarthy, Cooperatives Agribusiness Association (NCBA, CCT),

14:10 – 14:30 Projectos de Energia Alternativa. Sr. Marcos Santos, Director General, Secretariat of State for Energy Policy:

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

14:30 – 15:00 Proposta da Política de Energia Rural para TL

Sr. Detlef Loy, PREDP/UNDP Consultant:

15:00 – 15:15 Pausa para Café

15:15 – 16:10 Discussões em Groupo Sr. Lino Correia, PREDP/UNDP

Consultant

16:10 – 16:30 Apresentações por representantes de cada Grupo

16:30 – 17:00 Resultados principais do Workshop Sr. Marcos Santos

17:00 - final Conclusão do Workshop e Encerramento

Sr. Avelino Coelho da Silva, Secretario do Estado da Política Energética

The event will be moderated by Sr. Marcos Santos and Lino Correia.

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Status of the Energy Situation in Timor-Leste

Detlef Loy, Germany

UNDP [email protected]

Dili, March 3, 2008

Participatory Rural Energy Development Programme (PREDP) / Thematic Trust Fund (TTF)

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● Population of TL appr. 1,050,000● Population growth 3.4 %/a

►1.5 – 1.6m expected by 2020● Rural and semi-urban

Population appr. 900,000● Total Households appr. 185,000

► 265,000 expected by 2020● Rural and semi-urban

Households, today appr. 160,000

Fundamental data (1)

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● Districts 13, Subdistricts 64, Sucos 442● Schools > 750● Health Centres ???● Forest area 853,000 ha ► 57% of total land area (figure controversial)

● Deforestation rate -1.2% per year

Fundamental data (2)

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● No energy balance available (consumption of kerosene, electricity, diesel, LPG, fuelwood...)

● Biomass potential largely unknown (in particular agricultural residues, such as rice husks and coffee pulp, rice straw) as well as oil plant potential (e.g. coconut oil, see experience from Fiji Islands)

● Hydropower potential insufficiently mapped and measured

● Current status of deployment and operating conditions of solar electric systems not fully monitored

Energy Data

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● High cost for conventional fossil fuels (kerosene) for lighting and cooking, no subsidies

● Low access to modern fuels, such as bottled LPG (also high costs involved, no subsidies)

● Most of the energy demand for cooking-related activities

● Most electricity consumption (Dili) coming from the commercial sector

Energy Status – General (1)

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● Very high subsidies for the electricity sector (estimated $24 million per year, almost equal to expected non-oil revenues in 2008 = $27m)

● Non-payment for electricity service is critical (higher cost coverage of EDTL would release budgets for energy services in rural areas)

● Transport energy of minor importance

Energy Status – General (2)

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Probably more than 90% of all energy demand is Probably more than 90% of all energy demand is being covered by biomass (fuelwood) – mainly for being covered by biomass (fuelwood) – mainly for cooking, baking, water heatingcooking, baking, water heatingBiomass importance has even increased in recent Biomass importance has even increased in recent years due to high prices for kerosene and non-years due to high prices for kerosene and non-payment for the extraction of firewood, with also payment for the extraction of firewood, with also urban households switching to cheaper fuelwood urban households switching to cheaper fuelwood (regulation on fuelwood handling and sale is not (regulation on fuelwood handling and sale is not enforced).enforced).

High dependence on non- sustainable High dependence on non- sustainable Biomass (1)Biomass (1)

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● Forest reserves are depleting at an accelerating rate with all consequences (soil erosion, diminished water catching etc.)

● Low-efficient stoves and ovens contribute significantly to high fuelwood consumption

● Immense work load, in particular carried by children and women for collection of fuelwood; health risks

High dependence on non- sustainable High dependence on non- sustainable Biomass (2)Biomass (2)

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● Very low electrification rate (about 80% in Dili, about 10% outside of Dili, in many rural areas no electricity at all)

● In total, probably less than 40.000 households served with electricity for some time during the week (no complete registry of EDTL available!)

● Up to 145.000 households have no grid-based electricity, number of individual solar systems marginal

● Only customers in Dili and Baucau have 24 hours service (although with some outages)

● Only in 54 sucos all aldeias are electrified – 272 sucos have no electricity at all

Electrification (1)

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● 58 isolated systems, but not all operational, in some cases no distribution lines and low connection rate

● Electricity demand is very low in rural areas (mainly for lighting and communication, not more than 25 kWh per month)

● An estimated 40.000-50.000 new customers could be served from local grids based on hydropower

● An estimated 60,000 households (today !) in about 100 sucos cannot be served by any grid (excessive costs compared to expected demand, very dispersed population, no cheap hydropower or other local resources available)

● Very low level of energy/electricity use/access for productive purposes

Energy Status – Electrification (2)

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● Diesel Fuel (imported, high costs, low efficiency)1 litre = 10 kWh = $1, with eff. = 30%: ► 1 kWhel = $0.30 only for fuel!

● Gas Seeps (about 30 sites identified, but not all suitable for electrification due to their remoteness)

● Hydro (Ira Lalaro and several rivers/streams for mini- and micro-hydropower plants)

● Solar (small systems for isolated areas)

Potential sources for mechanical energy and electricity generation (1)

PREDP / TTF Energy Situation in Timor-Leste

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● Solid biomass (probably currently not sufficient resources for electricity, agricultural residues very dispersed and seasonal, amount of organic domestic waste low, energy plantations??)

● Liquid biomass (biofuels): No experience so far in TL, will need in-depth research and know-how transfer, possible use in stationary engines for mechanical power before electricity production (preferably as raw plant oil, not as biodiesel)

● Wind (probably only sufficient medium wind in higher altitudes, but road conditions are major obstacle for transport of turbine components; reliable nearby MV grid required; small stand-alone wind generators have high specific costs and are not maintenance free )

Potential sources for mechanical energy and electricity generation (2)

PREDP / TTF Energy Situation in Timor-Leste

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● Several hundred Solar Home Systems (50W) installed during Indonesian time (1996/97)

● 470 Solar lanterns and 14 school and institutional systems and one solar water pump supported by UNDESA

● 125 SHS supported by UNDP in 2006/07● Almost all suco centers equipped with solar systems for operation of

TV/DVD (Ministry of State Administration)● Alternative Technology Association (ATA) / Australia (NGO) has

implemented a number of solar systems for institutions and is currently testing different solar lighting schemes

● Other NGOs have donated several hundred SHS and solar water pumps

● Donor-supported PV systems on Public Health Centres

Small-scale Solar Electricity Projects

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Small-scale Solar Electricity Projects

PREDP / TTF Energy Situation in Timor-Leste

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● Hydropower Gariuai/Baucau (donation by Norway, to be commissioned in September 2008)

● Hydropower Mau Nuno/Ainaro (design phase starting in 2008, with support of GoTL and UNDP)

● 7 UNDP Biogas plants for cooking and lighting implemented in Manatuto and Ainaro, another 24 to be completed

● Biogas plant for lighting by Caritas in Guiçu● Biogas plant for electricity generation near Suai (GoTL)● 170 energy-efficient stoves realised by UNDP in sucos

Meti-Aut and Cameia (Dili)● Some institutions use solar collectors for water-heating

Other small-scale RE Projects

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Other small-scale RE Projects

PREDP / TTF Energy Situation in Timor-Leste

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● World Bank, Rural Electrification Master Plan, October 2007

● World Bank, Study on Household/Biomass Energy, 2007

● GoTL, Power Sector Investment Plan, 2006● ADB, Power Sector Development Plan, 2003

Main References

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Proposals for the Rural Energy Policy of Proposals for the Rural Energy Policy of Timor-LesteTimor-Leste

Detlef Loy, GermanyDetlef Loy, GermanyUNDP ConsultantUNDP [email protected]@freenet.de

Dili, March 3, 2008 Dili, March 3, 2008

Participatory Rural Energy Development Participatory Rural Energy Development Programme (PREDP) / Thematic Trust Fund Programme (PREDP) / Thematic Trust Fund (TTF)(TTF)

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● Large-scale programme on development and de-ployment of energy-efficient stoves and ovens needs to be established – preferably with international technical and financial assistance

● Goal has to be the introduction of cheap stoves, made of local material and with manual labour input by users

● Such programme should be aligned with measures in reforestation and controlled cutting of trees

● GoTL should consider subsidizing of LPG (and kerosene ?)over a determined period of time to prevent further use of fuelwood in urban areas

● At the same time, measures need to be taken in order to increase the price of fuelwood (GoTL controlled price regime, taxation of dealers?)

Fuelwood sector

PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

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Energy-efficient stoves in Uganda

Photos: D. Loy, Nov. 2007

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● Target for Sector Investment Programme: 80% of the population should have electricity by 2025

● But: “Having electricity“ is a very broad term: running only lights (basic electricity) or also other appliances that need more capacity?

● Electricity should improve quality of life and contribute to income generation

● Electricity service needs to be adapted to the local demand/requirements and purchasing power of the population (general solutions will not work).

Electricity Sector Objectives and Essentials (1)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Decentral systems are best suited for small loads, while central systems are beneficial for larger congestion areas with higher density of demand (transporting electricity is expensive).

● Decentral systems do not need long lead times for planning and implementation, but should keep a low technical profile as to avoid high risk of failures (only proven and reliable technologies should be used).

Electricity Sector Objectives and Essentials (2)

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● Central systems for recharging batteries (e.g. on suco Central systems for recharging batteries (e.g. on suco centers) – only small loads possible; could be operated as centers) – only small loads possible; could be operated as a businessa business

● Fixed household installations for lighting and other Fixed household installations for lighting and other purposes (different sizes for different demands)purposes (different sizes for different demands)

● Mobile solar lanterns (different types for different quality of Mobile solar lanterns (different types for different quality of light)light)

● More challenging power consumptions (as for cooling, More challenging power consumptions (as for cooling, communication) should be concentrated in central locations communication) should be concentrated in central locations (suco and health centers, schools, etc.)(suco and health centers, schools, etc.)

Small-scale Solar Electricity – Technical Options

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

Photo: ATA

● Systems should match with requirements and purchasing power of users! There is not one solution that will satisfy everybody!

● Costs have to be minimized, so that subsidies can be kept low.

● Solar electricity needs to be limited to such demand that cannot be served equally or better and more cost-efficient by other energy sources (e.g. it should not be used for machinery under current conditions)

● It is expected that prices for solar panels will drop significantly in the next years, but prices for batteries will remain high or could even increase.

Small-scale Solar Electricity -Considerations (1)

PREDP / TTF Energy Situation in Timor-Leste

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● Existing projects show lack of coordination, low level of sustainability, maintenance often neglected

● Small projects (in number of installations) with dispersed localities of intervention lead to high transaction (selection, preparation, shipment, travel, installation, etc.) and maintenance costs

● Govt. and donor initiatives should concentrate their efforts on regions that will not be electrified by other sources (in particular hydro) within the next 10-20 years

Small-scale Solar Electricity – Considerations (2)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Subsidy provided should be in balance with subsidies given for grid-based electricity

● Contributions by the customers have to reflect alternative costs for kerosene and candles as well as quality of power service.

● NGO needed in particular for training measures and implementation of „institutional structures“ at village level.

● Support by international initiatives/sponsors should concentrate on individual systems for institutions (schools; health centres) and water pumping

Small-scale Solar Electricity – Considerations (3)

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● Government-initiated programme with funding support Government-initiated programme with funding support from from international donorsinternational donors (e.g. Global Environment (e.g. Global Environment Facility)Facility)

● BasicBasic system (e.g. 10W panel for 1-2 lights) will be system (e.g. 10W panel for 1-2 lights) will be donated by the Government – cost about $200donated by the Government – cost about $200

● Every customer is free to order larger system, but has Every customer is free to order larger system, but has to carry costs for to carry costs for extrasextras

● Customers have to pay for light bulbsCustomers have to pay for light bulbs● For For maintenancemaintenance (mainly battery replacement) monthly (mainly battery replacement) monthly

fee is being collected on the community level fee is being collected on the community level (depending on the size of the system, with minimum of (depending on the size of the system, with minimum of $1.50-2.00), but paid into individual „saving“ accounts $1.50-2.00), but paid into individual „saving“ accounts (could also be taken over by micro-finance institutions)(could also be taken over by micro-finance institutions)

„„Solar Lighting Programme“ (1)Solar Lighting Programme“ (1)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● GoTL goal: 60.000 systems installed in six years; approx. annual budget of $ 2 million(Sri Lanka has supported 94.000 systems in 5 years)

● GoTL will set up autonomous Rural Electrification Agency (REA, with existing staff) and concentrate on clustered areas (no grid-electricity expected)

● REA will handle the programme with assistance from the private sector (REA should set guidelines, promote the programme, check applications from communities, organize bulk purchasing, etc., but leave as much initiative as possible to the private sector)

„Solar Lighting Programme“ (2)

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● Regional branches of REA will monitor the installation and maintenance process and keep track on every individual system

● GoTL will provide incentives for private sector (retailers, workshops) to open up regional branches

● GoTL will set the foundation by improving the qualification on all levels (in particular among technicians)

● GoTL may consider awards for highly successful communities

„„Solar Lighting Programme“ (3)Solar Lighting Programme“ (3)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Existing diesel generators should be made operational; Existing diesel generators should be made operational; grid rehabilitation should take place wherever such grid rehabilitation should take place wherever such system will be maintained over the long term (either as system will be maintained over the long term (either as isolated system or as part of the national network)isolated system or as part of the national network)

● Will require substantial operational subsidies for Will require substantial operational subsidies for purchase of fuel and maintenance (cost per kWh more purchase of fuel and maintenance (cost per kWh more than $0.30, not including investment)than $0.30, not including investment)

● Subsidies should be phased out within the next 5-10 Subsidies should be phased out within the next 5-10 years by replacing diesel gensets by other supply years by replacing diesel gensets by other supply options (hydro/solar)options (hydro/solar)

Isolated Grids operated with Isolated Grids operated with diesel generators (1)diesel generators (1)

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● Current tariff needs to be raised (minimum of $2.25 per month is not sufficient) and linked to actual consumption (e.g. number of lights); rates should also reflect the standards of service compared to urban areas.

● Use/import of incandescent light bulbs should be prohibited (generally!), consumption should be limited to essential needs (average not more than 25 kWh per household) in order to limit subsidies

● Households will only get limited service (basically lighting); electricity should in first place serve economic activities to raise income and social institutions

Isolated Grids operated with diesel generators (2)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Should preferably be used for cooking (lamps have Should preferably be used for cooking (lamps have very low efficiency)very low efficiency)

● Needs an estimated 5 cattle per household to Needs an estimated 5 cattle per household to satisfy cooking needssatisfy cooking needs

● Only efficient if cattle are kept in stablesOnly efficient if cattle are kept in stables● Cooperative keeping of cattle makes distribution of Cooperative keeping of cattle makes distribution of

gas relatively difficult (low gas pressure for longer gas relatively difficult (low gas pressure for longer distances)distances)

● Large potential for combination of stables with Large potential for combination of stables with institutional stoves (e.g. in schools)institutional stoves (e.g. in schools)

Biogas production and use (1)Biogas production and use (1)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

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● Technology needs to be further improved and knowledge disseminated

● Use of biogas for electricity generation in rural areas is not recommended (needs considerable maintenance, efficiency is low)

● Essential components can be manufactured locally (e.g. movable domes for biogas tank)

● Users should contribute at least with labour force as they will benefit from reduced work load afterwards (no collection of firewood needed) – no 100% donation!

Biogas production and use (2)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Only Only limited experienceslimited experiences with Jatropha in developing with Jatropha in developing countries so far, showing mixed resultscountries so far, showing mixed results

● Biofuel production is Biofuel production is notnot per se per se ecological and ecological and economicaleconomical

● Intensive Intensive investigationinvestigation and pre-feasibility research and pre-feasibility research necessary, high risk of failure if not carefully designed; necessary, high risk of failure if not carefully designed; high impact on social and ecological structures, if high impact on social and ecological structures, if implemented as agro-businessimplemented as agro-business

● Biofuel plants should preferably grow on Biofuel plants should preferably grow on deserteddeserted or or degradeddegraded land, as to avoid competition with food land, as to avoid competition with food production; Jatropha is preferably planted on a small production; Jatropha is preferably planted on a small scale, e.g. for hedges.scale, e.g. for hedges.

● High High involvementinvolvement of rural population required to set up of rural population required to set up full production chain; local use of full production chain; local use of raw plant oilraw plant oil for for productiveproductive purposes should be given preference

Biofuels

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

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● Mapping of hydropower and biomass resources● Improved incorporation of energy subjects into the

academic and vocational curricula● Reduction or removal of import and sales taxes for all

(rural/renewable) energy equipment● Ban on import of incandescent light bulbs ! (Australia

has proposed it first, Ireland will start in 2009)● Better coordination among Ministries and Secretariats

of State necessary● Awareness raising campaigns for general population

needed

General Requirements

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

● Energy-efficient use of Energy-efficient use of fuelwoodfuelwood has to be given top has to be given top priority in combination with reforestation measures priority in combination with reforestation measures and control of fuelwood businessand control of fuelwood business

● Diesel fuel based electricityDiesel fuel based electricity production will remain production will remain bound to high subsidiesbound to high subsidies

● It will not be possible to serve the whole country with It will not be possible to serve the whole country with the same the same quality of electricityquality of electricity in the medium term in the medium term

● Rural Electrification Master PlanRural Electrification Master Plan should be should be implemented; hydropower exploitedimplemented; hydropower exploited

● Suco center solar systemsSuco center solar systems could be used as excellent could be used as excellent showcases for training of local population.showcases for training of local population.

Conclusions (1)Conclusions (1)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

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● A „A „Solar Lighting ProgrammeSolar Lighting Programme“ should be carried “ should be carried out improving living conditions in about one thirdout improving living conditions in about one third of all households of all households

● High importance should be given to the use of energy High importance should be given to the use of energy for for productive purposesproductive purposes, in particular for food-, in particular for food-processing, manufacturing and small-scale commercial processing, manufacturing and small-scale commercial activitiesactivities

● Under current conditions, financial involvement of the Under current conditions, financial involvement of the private sectorprivate sector not to be expected in rural areas not to be expected in rural areas

● The The biofuel issuebiofuel issue has various implications and should has various implications and should be handled with care. More investigation along the be handled with care. More investigation along the complete production chain is needed before entering at complete production chain is needed before entering at a larger scalea larger scale

● RegulationsRegulations only to be considered if there is a real need. only to be considered if there is a real need.

Conclusions (2)Conclusions (2)

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PREDP / TTF Proposals for the Rural Energy Policy of Timor-Leste

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

2nd Workshop, 17 May 2008

Page 88: Rural Energy Policy for Timor-Leste

REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE (RDTL)

GABINETE DO PREMIRO MIISTRO, SECETARIADO DE ESTADO DA POLÍTICA ENERGÉTICA

Díli, 9 de Maio 2008 Excelentíssimo/a Senhor/a Assunto: Convite para o workshop sobre a formulaçaoã da política Energética Nacional No Ref: 163/G-SEPE/V/2008 O Governo de Timor-Leste através do Secretariado de Estado da Política Energética está desenvolvido a Política Energética Nacional como pilar posterior formulção do quardo legal que regularizará todas as actividades da Política Energética. Dentro deste contexto, Secretariado de Estado da Política Energética em cooperação com o Prorgrama da Nações Unidas para Desenvolvimento (PNUD) irá efectuar o Workshop sobre a Política Energética Nacional no dia 17 de Maio de 2008, às 8:00 horas até 12.30, no Restaurante Atlantic Areia Branca. Deste forma solicita-se V. Ex.cia a participar no referido evento, que é de grande importância para o sucesso da formulação da Política Energética Nacional do País. Envia em anexo a Agenda do referido Workshop Grato pela Vossa atenção e boa cooperação. Avelino Maria Coelho da Silva Secretário de Estado da Política Energética

Page 89: Rural Energy Policy for Timor-Leste

AGENDA DO WORKSHOP FORMULAÇÃO FINAL DA POLÍTICA ENERGÉTICA NACIONAL

Restaurante Atlantic Areia Branca, Díli 17 de Maio de 2008

TEMPO PROGRAMAS ORADORES

08:00 – 08:30

Chegada dos participantes

08:30 - 08:45

Abertura do Workshop

Sr. Avelino Coelho da Silva, Secretário do Estado da Política Energética

08:45 – 09:00

Energia Rural: Perspectivas do PNUD

Sra. Hiroko Tagaki, UNDP Country Director

09:00 – 09:30

Perspectivas da Política Energética de Timor-Leste (TL)

Sr. Avelino Coelho da Silva, Secretário do Estado da Política Energética

09:30 – 10:15

Proposta Final da Política de Energia Rural para TL

Sr. Detlef Loy, PREDP/UNDP Consultant

10:15 – 10:30 Pausa para Café

10:30 – 12:30

Discussões (Sugestões e recomendações)

Moderado pelo: Sr. Lino Correia, PREDP/UNDP Consultant

12:30 – final

Conclusão do Workshop e Encerramento

Sr. Avelino Coelho da Silva, Secretário do Estado da Política Energética

Almoço

Page 90: Rural Energy Policy for Timor-Leste

Republica Democratica de Timor-LesteSecretaria de Estado da Politica Energetica

Lista dos Participantes para Workshop17 de Maio de 2008

St1~~

DEPARTMENT

HI# OF INFR~R~qm--.tr-f/NJ)r

IrnfQ.h,~ a. "'-'11 - C\) !VI

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Rural Energy Policy for Timor-LestePublic Consultation

Detlef Loy, Germany

UNDP [email protected]

Dili, May 17, 2008

Participatory Rural Energy Development Programme (PREDP) / Thematic Trust Fund (TTF)

Page 93: Rural Energy Policy for Timor-Leste

Challenges (1)

PREDP / TTF Rural Energy Policy for Timor-Leste

Currently about 185,000 households without any electricity supply (electrification rate below 20%)

Number of unelectrified households could even rise due to population growth

Total number of rural households about 256,000 in 2020, of which roughly 90,000 cannot be approached by any grid electricity (more than 1/3 of all rural households !)

High costs and deficits in the (diesel-based) electricity sector (urban and rural) – covered by the state

Energy use in rural areas very elementary – mainly in the domestic sector for cooking/lighting, not for productive purposes

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Challenges (2)

PREDP / TTF Rural Energy Policy for Timor-Leste

Rural electricity consumption (density) in many regions too low to justify costs for grid-based electricity

Signs of deforestation today mainly in the closer vicinity of Dili, but further extension possible with increased use of fuelwood

Poverty extremely wide-spread (income < 1$ per day); provision and repayment of micro-credits not very common

Indigenous gas and oil resources (except gas seeps) not expected to become accessible before 2020

Education (at all levels) and Research capacities currently by far not sufficient

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Biogas potential from cattle manure for cooking/lighting of between 4,600 and 12,000 households

Sufficient small-scale hydropower potential available that allows for supply of up to 75,000 households by 2020

Solar electricity everywhere suitable for basic domestic energy needs (lighting/ communication) and for health/education sectors and water pumping

About 100,000 tonnes per annum of solid biomass (not tapped and availability unknown)

Some wind potential apparent (at least for low-capacity turbines)

Chances

PREDP / TTF Rural Energy Policy for Timor-Leste

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Strong active involvement of communities in decision-making, implementation and operation

Overall dependence from imported fossil fuels should be decreased (high cost burden for customers)

Decentral systems should be given preference over centralized supply systems

Taking advantage of available renewable, local energy resources

Efficient use of energy is a fundamental prerequisite Energy provision needs reliance on strong private

sector involvement (market-based approach)

Major Guiding Principles (1)

PREDP / TTF Rural Energy Policy for Timor-Leste

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Technologies have to match with experiences and capacities of users, operators, service personnel

Government has to use all means to keep project/system costs as low as possible

Substantial national and international experiences are available that need to be assessed and could be the basis for future improvements

Major Guiding Principles (2)

PREDP / TTF Rural Energy Policy for Timor-Leste

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Basic electricity for all households/consumers in TL Average fuel wood consumption reduced by one third

and total amount of fuel wood kept below level of 2004 Most biogas potentials exploited All fresh water pumps linked to renewable energy

technologies (unless other low-cost options available) All schools, health centers, hospitals, suco centers,

police stations .... have reliable electricity service

Major Targets for 2020

PREDP / TTF Rural Energy Policy for Timor-Leste

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All rural diesel generators substituted by hydropower by 2013, wherever possible

Overall subsidies for diesel fuel in electricity sector cut by at least US$ 2 million per year – Government spendings for rural energy increased at the same margin

Future rural electricity supply mainly based on indigenous renewable energy sources

Strong focus on poverty reduction by enhancing income generation through provision of energy

Strengthening of education, training and research regarding energy issues

Other Targets

PREDP / TTF Rural Energy Policy for Timor-Leste

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Energy is a means/tool and needs to be linked to other areas of rural development (integrated approach), such as improvements in agriculture, small businesses, health, education etc.

State will have to cover most of initial capital costs (subsidies/grants)

Beneficiaries will contribute as well (payment or labour) and have to commit to care for maintenance, repair

Financing schemes through microcredits currently not well developed

Some Essentials

PREDP / TTF Rural Energy Policy for Timor-Leste

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Strengthening of community participation in forest management in combination with land titles

Large-scale programme for dissemination of low-cost energy-efficient stoves, based on proper design and research and subsidized by the state; preference for such design that allow for high labour involvement of beneficiaries

Involvement of locally active NGOs, foreign expertise and private sector initiatives indispensable

Priority areas near Dili get prime attention (about 50,000 households)

Detailed investigation of solid biomass potentials from agricultural residues (e.g. for fuelwood substitution)

Introduction of subsidies for LPG and kerosene over limited period of time and support for new outlets

Main Policies for Solid BiomassMain Policies for Solid Biomass

PREDP / TTF Rural Energy Policy for Timor-Leste

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Further assessment of biogas potentials, including other feedstocks than cattle manure

Development of standardized biogas systems with increased reliability and lower costs (local manufacturing), based on international experience; link to sanitation systems?

Introduction of biogas dissemination programme using qualified personnel, concentrating on cluster areas of minimum 20-25 biodigesters; financial support of Government, but with substantial contribution (labour or finance) by beneficiaries

Continuous monitoring to expand learning base and high involvement of national academic institutions

Use of biogas for electricity generation only, if long-term maintenance and repair can be secured

Main Policies for Biogas

PREDP / TTF Rural Energy Policy for Timor-Leste

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Government will follow recommendations of the Rural Electrification Master Plan 2007

Establishment of multi-year electrification programme defining areas for grid extension, local grids (including energy sources) and off-grid supply

Tapping of small-scale hydropower potentials, wherever economically and ecologically viable; in particular where diesel generation can be substituted

Start into gas seep exploitation at Aliambata and further site-specific investigation of further potentials

Rules for subsidy schemes will be set up Taking advantage of experience from international

know-how and support networks (GEVP and others)

Main Policy for Rural Electrification

PREDP / TTF Rural Energy Policy for Timor-Leste

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Remember: 90,000 will have no other chance than off-grid electrification by 2020 !

SLP will provide subsidy for basic standard solar lighting/charging system; consumers can get larger systems at own expense

All new and refurbished public buildings will get solar electricity, if not otherwise supplied

SLP will be based on market approach (support for retailers and installers) and strong commitment by communities and users to take care of long-term maintenance; priority will be given to areas of substantial demand for solar systems (clustering)

Options for local manufacturing of components for low-cost solar lanterns will be explored

Solar Lighting Programme (SLP)

PREDP / TTF Rural Energy Policy for Timor-Leste

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Potential wind-sites need to be assessed (long-term measurements)

Examination if small wind turbines could act as fuel savers in combination with existing diesel generators

Assessment for application of very small wind battery chargers

Investigation for wind pumps Careful introduction of Jatropha planting, local oil

extraction and use in modified diesel engines for motive power and electricity generation

Promotion of solar thermal collectors for hot water generation in hotels, restaurants and health centers/hospitals

Policies for other Renewable Energy Technologies

PREDP / TTF Rural Energy Policy for Timor-Leste

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SEPE will get responsibility for off-grid rural electrification based on renewable energy

New Rural Energy Agency (REA) will act as implementing entity with administrative, managerial, technical and financial autonomy

REA will be the regulatory authority for off-grid electricity supply

REA should get financial means for carrying out Government programmes through Renewable Energy Fund (State budget/international donations)

Government will set minimum performance and quality standards for technical systems

Institutional Setting and Regulation (1)

PREDP / TTF Rural Energy Policy for Timor-Leste

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Legislation should allow for independent operation of small power generation plants

Uniform rates will be abolished to allow communities more flexibility in setting appropriate rates

Import ban on incandescant light bulbs Exemption of all energy efficiency and renewable

energy equipment from duties and taxes

And last point: Improved Data Base !!!

Institutional Setting and Regulation (2)

PREDP / TTF Rural Energy Policy for Timor-Leste

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Please send them all toeitherDetlef Loy, [email protected] (in English)orLino Correia, [email protected] (in Tetum)until May 26 (absolute deadline) for this phase of

the consultation process.

For your comments:

PREDP / TTF Rural Energy Policy for Timor-Leste

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

List of existing renewable energy pilot projects

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

List of Renewable Energy Projects in Timor-Leste

1. Government of Timor-Leste ‐ Solar Home System installed in Manatuto district, Suco Cairui with 240 households ‐ 1 Biogas plant in Suai district, Suco Beco for lighting with 83 M3 – 41 households ‐ 1 Biogas plant in Aileu district, Sub-dist. Liquidoe, Aldeia Betulau for lighting with 21 M3 –

20 households ‐ 1 Biogas plant in Lospalos district , sub distrito Fuiloro, Suco Titilari for cooking with 0.4 M3

– 1 household ‐ 1 Biogas plant in Ermera district, Suco Punilala for lighting with 80-100 M3 (estimation) – 60

households ‐ 14 Biodiesel centre covering 39 ha. in Maliana district, Baucau district, Viqueque district,

Ainaro district ‐ 3 Solar PV Systems by GoTL in Baucau district, Vemase and Lospalos district, Lautem

(GoTL through Haburas Foundation ) ‐ Mini-Hydropower 50 KW in Ainaro district, Mau Nuno (GoTL and UNDP) ‐ Almost all Suco centres in Timor-Leste equipped with solar systems for operation of

TV/DVD (Ministry of State Administration)

2. 470 Solar lanterns and 14 school and institutional systems and one solar water pump supported by UNDESA

3. 125 Solar Home System supported by UNDP in 2006/07

4. 170 energy-efficient stoves realised by UNDP in Sucos Meti-Aut and Cameia (Dili)

5. 7 UNDP Biogas plants for cooking and lighting implemented in Manatuto district and Ainaro district, another 24 to be completed

6. Edmund Rice Community (CER) project in Ermera district, sub-district Railaco sub-district, 192 SHS installed comprised a single 10Wp

7. 1 Biogas plant for lighting by Caritas in Liquisa district, Guiçu

8. Alternative Technology Association (ATA) has implemented a number of solar systems for institutions and is currently testing different solar lighting schemes:

‐ Solar power for communication installed in Aileu district (Aileu town and Besilau) and Ermera district (Ermera town)

‐ Solar power and inverter installed in health centres in Suai district (Fatululic, Fatumean, Tilomar, Macteur, Zumalai) and Baucau district (Suco Triloka)

‐ Solar power and lighting in Besilau, Alileu district for 16 households and community centre ‐ Wind power installed in Aileu district (Lequidoe) and installation of wind power logging in

Atauro ‐ Solar power and inverter at community centre in Baucau district (Suco Triloka), Oequsse

district (Oesilo) and solar power for lighting in Youth Centre Baqui, Pantemaksar, Oequsse district

‐ Solar power and inverter in Lisa Doha School, Liquisa district and Covalima kindergarten in Fatumean, Suai district

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9. Solar water pump installed by NGO Triangle in Manatuto district, Suku Cairui, Aldeia Hatukarau. Future plan NGO Triangle will install 40 units of Solar water pump in Manatuto district

10. Mini-Hydropower 326 KW in Baucau district, Suco Gariuai (by Norway, to be commissioned in September 2008)

11. Some institutions use solar collectors for water-heating

12. Other NGOs have donated several hundred SHS and solar water pumps

13. Some institutions use solar collectors for water-heating

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Sucos with preference for Biogas application

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Region 1 50.772Region 2 28.766Region 3 60.485Region 4 41.280Region 5 13.659

Total 194.962

4594

Number of households suitable for biogas generation

Timor-Leste: Private households Only households with minimum number of 5 cattle have been selected.by sucos

Households

Source: Direcção Nacional de Estatistica, Census 2004

TOTAL HH for Biogas Plants

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15.115(Region I)

1.257 3.769 1.561554 365 464305 467 11182 394 273

316 1.192 564251 20116 129440224320

4.602 3.926474 826 5,4588 429375 695 9,2516 378292 888195 710

1.006404 TOTAL HH 1.521105647

Viqueque

Sub District Lacluta Sub District Ossu Sub District UatucarbauLaline Uaibobo Irabin de BaixoUma Tolu Builale Irabin de CimaAhic Nahareca Uani UmaDilor Ossu de Cima Afaloicai

Uagia BahatataOssorua Loi UluLoi-HunoUabuboLiaruca

Sub District Viqueque Sub District Watulari Ave. Cattle/HHUma Uain Craic MacadiqueBahalarauain UaitameUma Quic MatahoiBibileo VessoruWatu Dere BabuloUai-Mori AfaloicaiCaraubaloUma Uain LetenMaluruLuca

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11.527(Region II)

2.636 2.332 2.130937 1.218 1.174 5,8192 641 956 7,9283 47340299

179544

4.4291.044

192420

1.109550548274127165

TOTAL HH 2.130

Ainaro

Sub District Ainaro Sub District Hatubulico Sub District Hato Udo Ave. Cattle/HHAinaro Mulo LeolimaSuro-Craic Nuno-Mogue Foho-Ai-LicoSoro Mau-ChigaManutasiCassaMau-UloMau-Nuno

Sub District MaubisseMaubisseManelobasManetuAitutuEdiMaulauHorai-QuicSuco LiuraiFatu-Besi

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18.397(Region IV)

5.087 4.491 1.512345167 467 9,3 Opa 204369 310 7,1 253540 1.009 162296 563 26772 959 205

371 915 119291 268 302

Leber 227248368 2.091 3.233433 1.116 802258 318 688259 239 492235 418 403166 5 411228 437214 1.983

1911735282724598480

196

TOTAL HH 943

Bobonaro

Sub District Bobonaro Ave. Cattle/HH Sub District Maliana Ave. Cattle/HH Sub District LolotoeAi-AssaAtu-Aben LahomeaBobonaro Raifun LupalCarabau Ritabou GudaColimau Odomau DeudetCotabot Holsa LebosLourba Tapo/Memo LontasLour Saburai Gilapil

MalilaitMolop Sub District Atabae Sub District BaliboMale-Ubu Aidabaleten Balibo VilaOe-Leu Atabae LeohitoSoilesu Rairobo CowaSibuni Hataz LeolimaTapo SanirinTebabui BatugadeIlat-Laun Sub District Cailaco

RaiheuGouloloMeligoAtudaraPurugoaDau UduGuenu LaiManapa

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Preferences for different RE Technologies for decentral electricity generation at Suco level

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Region 1 50.772Region 2 28.766Region 3 60.485Region 4 41.280Region 5 13.659

Total 194.962

Main energy resources for electricity generation at suco level

Timor-Leste: Private households Based on Rural Electrification Master Plan 2006by sucos

Not included are supplies based on diesel generators or by central gridHouseholds

Source: Direcção Nacional de Estatistica, Census 2004

Potential for HydropowerPotential for Gas seepsPotential for Solar PVPotential for Hydropower and Gas seeps Potential for Hydropower and PVPotential for Hydropower, Gas seeps and PVPotential for Gas seeps and PV

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22.659(Region I)

2.192 7.734 3.550 3.941158 711 468 170283 409 918 358263 1.994 288 486273 705 311 200141 915 608 248199 272 354 188325 775 291 379205 419 312 Abo 153322 373 36423 413 297

748 55830723

17634

2.017 3.2251.021 379

258 523184 371317 31290 104

145 4992 478

559 TOTAL HH 2.293TOTAL HH 532TOTAL HH 3.380

Baucau

Sub District Baguia Sub District Baucau Sub District Laga Sub District QuelicaiAfaloicai Bahu Atelari BaguiaAlaua Craic Bucoli Tequino Mata LocoliuAlaua Leten Buruma Soba LetemunoHaeconi Buibau Samalari WaitameOsso-Huna Wailili Sagadati MacalacoLari Sula Samalari Nunira BualaleSamalari Gariuai Libagua LelalaiDefa Uassi Triloca SaelariLavateri Trilolo GurucaUacala Seical Afaca

Caibada Laisorolai de CimaLaisorolai de BaixoMaluroNamaneiAbafala

Sub District Vemasse Sub District VenilaleVemase Bado Ho'oOstico Baha MoriOssoala UailahaLoilubo UaioliUaigae Uma Ana IcoUatu-Lari Uma Ana UloCaicua Fatulia

Uataco

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Lautem 12.998(Region I)

1.625 3.383 5.619 1.478204 317 626 129327 535 2.551 199117 335 319 407299 235 227 167314 181 191 453364 205 Lore I 585 123

486 Lore II 155359 285493 277237 403

893564329

TOTAL HH 3.191TOTAL HH 3.937

Sub District Iliomar Sub District Lautem Sub District Lospalos Sub District LuroAilebere Baduro Bauro AfabubuCainliu Com Fuiloro BaricafaFuat Daudare Home CotamutuIliomar I Euquisi Cacavem LacawaIliomar II Ililai Leuro LuroTrilolo Maina I Wairoce

Maina IIPairara MuapitineParlamento RacaSerelau Souro

Sub District TutualaMeharaTutuala

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15.115(Region I)

1.257 3.769 1.561 3.926554 365 464 826305 467 111 42982 394 273 695

316 1.192 564 378251 20 888116 129 710440224320

4.602474588375516292195

1.006404105647

TOTAL HH 1.187TOTAL HH 3.239TOTAL HH 4.453

Viqueque

Sub District Lacluta Sub District Ossu Sub District Uatucarbau Sub District WatulariLaline Uaibobo Irabin de Baixo MacadiqueUma Tolu Builale Irabin de Cima UaitameAhic Nahareca Uani Uma MatahoiDilor Ossu de Cima Afaloicai Vessoru

Uagia Bahatata BabuloOssorua Loi Ulu AfaloicaiLoi-HunoUabuboLiaruca

Sub District ViquequeUma Uain CraicBahalarauainUma QuicBibileoWatu DereUai-MoriCaraubaloUma Uain LetenMaluruLuca

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11.527(Region II)

2.636 2.332 2.130 4.429937 1.218 1.174 1.044192 641 956 192283 473 420402 1.10999 550

179 548544 274

127165

TOTAL HH 5.343TOTAL HH 1.218TOTAL HH 2.170

Ainaro

Sub District Ainaro Sub District Hatubulico Sub District Hato Udo Sub District MaubisseAinaro Mulo Leolima MaubisseSuro-Craic Nuno-Mogue Foho-Ai-Lico ManelobasSoro Mau-Chiga ManetuManutasi AitutuCassa EdiMau-Ulo MaulauMau-Nuno Horai-Quic

Suco LiuraiFatu-Besi

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8.901(Region II)

1.284 1.229 5.301 1.087144 128 1.184 125313 494 1.009 96255 234 832 112315 136 960 105257 237 782 83

205 2318 100

321 80624251

TOTAL HH 6.645TOTAL HH 4.115TOTAL HH 2.464

Manufahi

Sub District Alas Sub District Fatuberlihu Sub District Same Sub District TuriscaiAituha Bubususo Letefoho AitemuaDotic Clacuc Holarua BeremanaTaitudac Fahinehan Babulo CaimaucMahaquidan Fatucahi Betano LesuataUma Berloic Caicasa Daisua Liurai

Grotu ManumeraRotuto MatorecTutuluro Mindelo

OranaFoholauFatucalo

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8.338(Region II)

1.115 1.774 1.674 914328 514 472 203363 782 232 228104 113 377 483148 365 341172 107

145

2.322 539449 88175 128351 145

Sau 958 74314 10475

TOTAL HH 2.391TOTAL HH 1.404TOTAL HH 3.702

Manatuto

Sub District Barique/Natarbora Sub District Laclo Sub District Laclubar Sub District LaleiaAubeon Lacumesac Orlalan LifauUma Boco Umacaduac Funar HaturalanAbat Oan Uma Naruc Manelima CairuiBarique Hohorai BataraManehat Fatumaquerec

Sanana'in

Sub District Manatuto Sub District SoibadaCribas SamoroAiteas Leo HatMa'abat Fatumacerec

ManlalaIliheu ManufahiAilili

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7.745(Region III)

3.492 1.081 1.312 1.860238 106 279 315220 395 228 368162 287 90 58474 126 136 295131 167 151 186120 325 87156 103 302448 249495155893

TOTAL HH 572TOTAL HH 3.649

Aileu

Sub District Aileu Sub District Laulara Sub District Liquidoe Sub District RemexioAisirimou Cotolau Namoleso AcumauBandudato Talitu Acubilitoho TulataqueoFahiria Madabeno Betulau Suco-LiuraiFatubosa Tohumeta Faturilau FaturasaLahae Fatisi Bereleu FadablocoLausi Fahisoi MaumetaHoholau Manucasa HautohoSeloi Malere FahisoiSeloi CraicSaboriaSuco Liurai

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31.575(Region III)

1.696 7.734 13.164 767251 1.167 897 260352 3.108 677 507371 1.074 7.607298 Hera 1.097 3.983424 255

111922

3.252 4.962Santa Cruz 713 739

196 1.230672 1.059

1.144 476225 412302 597

449

TOTAL HH 449TOTAL HH 723

Dili

Sub District Atauro Sub District Cristo Rei Sub District Dom Aleixo Sub District MetinaroAtauro Vila/ Maumeta Culu Hun Fatuhada SabuliMaquili Becora Kampung Alor Duyung (Sereia)Beloi Camea ComoroMacadade Bairro PiteBiceli Balibar

Meti AutBidau Santana

Sub District Nain Feto Sub District Vera CruzLahane Ocidental

Acadiru Hun Vila VerdeBemori MacarenhasLahane Oriental CaicoliBidau Lecidere ColmeraGricenfor Motael

Dare

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21.165(Region III)

3.612 5.424 6.177 4.232209 1.027 118 879502 565 599 824373 362 359 430441 638 400 464223 230 274 475237 369 129 32574 821 746 402

286 362 531 433389 436 668375 614 515238 554265 597

687

1.72021125616829221020520957 TOTAL HH 8.370

112 TOTAL HH 1.410TOTAL HH 4.315

Ermera

Sub District Atsabe Sub District Ermera Sub District Hatolia Sub District LetefohoParamin Poetete Leimea Sorimbalu DucuraiAtara Ponilala Coliate-Leotelo HaupuBeboi Craic Talimoro Asulau LauanaObulo Mirtutu Ailelo Catrai-CraicLasaun Leguimea Leimeacraic Catrai LetenBatumanu Humboe Samara GouloloTiarlelo Riheu Manusae ErauloLaubono Lauala Hatolia HatugauAtadame/ Malabe Raimerhei UrahouLeimea Leten Estado Mau-UbuLaclo LissapatBeboi Leten Fatubolu

Fatuessi

Sub District RailacoLihuMatataTocoluliFatuqueroRailaco CraicRailaco LetenSamaleteDelecoTaraco

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18.397(Region IV)

5.087 4.491 1.512 1.983345 191167 467 Opa 204 173369 310 253 528540 1.009 162 272296 563 267 45972 959 205 84

371 915 119 80291 268 302 196

Leber 227248368 2.091 3.233433 1.116 802258 318 688259 239 492235 418 403166 411228 437214

TOTAL HH 10.367TOTAL HH 983TOTAL HH 4.591

Bobonaro

Sub District Bobonaro Sub District Maliana Sub District Lolotoe Sub District CailacoAi-Assa RaiheuAtu-Aben Lahomea GouloloBobonaro Raifun Lupal MeligoCarabau Ritabou Guda AtudaraColimau Odomau Deudet PurugoaCotabot Holsa Lebos Dau UduLourba Tapo/Memo Lontas Guenu LaiLour Saburai Gilapil Manapa

MalilaitMolop Sub District Atabae Sub District BaliboMali-Ubu Aidabaleten Balibo VilaOe-Leu Atabae LeohitoSoilesu Rairobo CowaSibuni Hataz LeolimaTapo SanirinTebabui BatugadeIlat-Laun

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11.820(Region IV)

440 859 1.015 2.339136 205 327 1.084304 469 182 573

185 236 66270 56

644025

431

4.475 1.420 1.272676 203 232

1.891 473 314714 456 563643 288 163551

TOTAL HH 3.108TOTAL HH 1.694TOTAL HH 2.671

Covalima

Sub District Fatululic Sub District Fatumean Sub District Fohorem Sub District ZumalaiFatululic Fatumea Fohoren RaimeaTaroman Belulic Leten Lactos Zulo

Nanu Dato Rua LourDato Tolu Fatuleto

MapeLepoUcecaiTashilin

Sub District Suai Sub District Tilomar Sub District MaucatarBeco Foholulic HolpilatDebos Lalawa OguesSuai Loro Maudemo MataiCamenaca Casabauc BelecasacLabarai

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11.063(Region IV)

3.856 3.558 3.649301 Dato 1.155 565196 464 325467 260 670273 197 423305 585 281620 335 591829 562 794402463

TOTAL HH 1.086

Liquicá

Sub District Bazartete Sub District Liquica Sub District MaubaraFatumasi LissadilaFahilebo Loidahar GuicoTibar Darulete VatuvouMotaulun Luculai VatuboroMetagou Hatuquessi MaubaralissaLauhata Acumano ViviquiniaLeorema Leoteala GugleurMaumetaUlmera

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13.659(Region V)

2.690 2.425 6.796 1.748536 1.380 275 1.396502 314 451 352366 731 937871 2.230415 1.203

589236875

TOTAL HH 6.336TOTAL HH 1.380TOTAL HH 641

Oecusse

Sub District Nitibe Sub District Oessilo Sub District Pante Makasar Sub District PassabeUsi-Taco Bobometo Nipani AbaniBene-Ufe Usi-Taqueno Lifau MalelatSuni-Ufe Usi-Tacae CunhaLela-Ufe CostaBanafi Taiboco

LalisucBobocaseNaimeco

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Solar Electric PV Projects in Timor-Leste

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Individual Solar Lighting for Homes in Timor-Leste

A) Solar Home Systems for lighting installed during Indonesian Time In the ninetees, Indonesia had undertaken considerable efforts to bring basic electricity services (mainly for lighting and communication) to remote rural communities. With about 50,000 systems, Indonesia was running one of the largest dissemination programms of Solar Home Systems worldwide (see information provided to SSoEP). Several hundreds of those systems using 50W panels were also installed in East Timor. It is not known, how many of those systems are still in place and functioning. As we were informed, most of the systems are not operating anymore. This could be attributed to the fact that in recent years batteries have not been replaced. In

some cases it is also possible that the internal wiring and electrical applications were removed or demolished during the crisis of 1999, while the panels (usually mounted to the roof) were staying in place. But it is also quite likely that still existing panels are in good shape and could be made operational. B) Lantern Programme by UNDESA Locations: Ataúro ; Laulara (District Dili) UNDESA (United Nations Department for Economic and Social Affairs) has been distributing 470 solar lanterns in early 2008 to individual households within its programme for sustainable access to water and energy (orginally a social support mechanism with a strong focus on income generating aspects). 200 of the lanterns were given to households in three aldeias of Ataúro (suco ...), providing light to about 50% of all households in that suco. The pilot project was started in 2005 and will terminate in the middle of 2008, but had to face several delays related to training, selection of the lantern model and implementation. It is being carried with support from two NGOs engaged in the sub-districts and with assistance of a consultant for training and monitoring, hired by UNESCAP (UN Economic and Social Commission for Asia and the Pacific). On the village level, community committees had been formed, with two people in each suco being trained in money collection and maintenance. At least in one aldeia of Ataúro which we visited, the lanterns were handed out in places that already had some solar electricity for the suco building and the school. Apparently no synergy effects had been taken into account (like using a centralised recharging system instead of various individual solutions). The project was set up under a rental (leasing) scheme, ownership of the lanterns will be maintained with the Government over a period of five years. Each household will have to pay

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$1,80 per months, thus making up for maintenance costs that could eventually occur (like replacement of the rechargable battery). A survey had shown that each househould spends monthly between $3 and $8 on the purchase of kerosene. Certainly “disappearance” of the lanterns could be a blow against success of this project (thefts and sales of

solar panels have been a major concern with rented and donated PV systems in South Africa) Before making a selection, five different commercially available lantern models had been tested. Finally the relative expensive, but very robust Glowstar lantern (manufactured by the British company Sollatek, see photo) has been chosen (for technical details see information downloaded from Internet and provided to SSoEP). Each lantern costs about $240 (including shipment and taxes and a 10W panel; ordered from the UK factory, cost is about $150 without shipment). One religious charity is using the same model, the local solar retailer Startec is providing spare parts. But Startec also expressed concern about the short-term availability of spare parts that have to be imported via a sales contact in Australia. Mr. Kim Tchia of Startec also pointed out that the electronics of the Glowstar lantern is relatively sophisticated so that specific skills are needed for the repair. Reason for choosing the Glowstar lantern was not the least that it would be perfectly suitable for being used as mobile light, e.g. in fishing communities to fix nets at night. But as we experienced from a site visit, the lantern was only used indoors, with users having been told that they should not remove the lantern from its location. The Glowstar comes in two sizes, usually operating with a 5W compact fluorescent lamp (CFL, equal to 25 W incandescant light bulb) and 7W (equal to 40 W incandescant lamp) respectively. In this mode they will operate with a fully-charged battery for either 5.2 or 8 hours. Both lanterns can also be equipped with either a 5W, 7W or 9W CFL, influencing of course the available operation time. The smaller lantern can be attached to a 10W or 20W solar panel, the larger one also to a 30W panel. With grid electricity available, both lanterns can also be charged with an AC adapter. The larger lantern also incorporates a 12V output together with a cigarette lighter socket that allows for operation of a small radio or charging of a mobile phone (both will require a cigarette lighter adapter that is easily available). Comments: The owner of Startec Enterprises has told us that he is about to design his own solar lantern that could be assembled locally and would cost less than $200. This price would still be higher than for ready assembly kits sold by SOLUX (see information material). A US/Indian student group has even designed and manufactured a lamp for less than $20 using a 0.1W LED lamp and imported electronic items from US and China (see photo and information), even though lighting capacity may not be comparable. As notified by mail on Feb. 21, 2008 (Anton Vikstrom), the Alternative Technology Association (ATA) in Australia is currently developing an effective lighting and cost-recovery system for poor households - aiming at maintenance costs of $1 per month (donor supports upfront capital, user pays repair). ATA is also looking at the local manufacture of PV lighting systems. They are currently working on designs for a small 2 x light basic solar

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lighting system that could be supplied for approx $100. The electrics of this system are being tested (in Australia and TL) and the housing being designed by a plastics fabricator. ATA intends to promote a local (TL) industry in the manufacture, distribution and servicing of these units which could reasonably be installed in all off-grid household applications. The systems may also be used as back-up power in towns (with a charger instead of solar panel). ATA is currently developing a proposal which will be circulated looking for appropriate partners to work with to develop and implement this plan. In any case: Efforts should be undertaken and Government support given to all activities pursuing a high local contribution in manufacturing solar lanterns. C) Solar Lighting within PREDP/TFF (UNDP) Locations (units): Sub-Districts Vera Cruz (18) and Cristo Rei (10) in District Dili; Sub-Districts Maubara (10), Liquica (10) and Bazartete (10) in District Liquica; Sub-District Manatuto (10) in District Manatuto; Sub-Districts Maliana (10) and Balibo (20) in District Bobonaro; Sub-Districts Passabe (15), Nitibe (7) and Pante Makasar (5) in District Oecusse In 2007, UNDP has supported the installation of solar panels (20W) and attached systems (consisting of charge controller, battery, 2 light sockets and switches) in houses of Liquiça, Cairui (is that true?) and Laulara. The systems were handed over free of charge, no payment had to be made by the users. As to our knowledge there is no maintenance backup in place, so that sustainability of this scheme is very doubtful. We did not yet receive any figures on that project, but prices provided by Startec indicate that a 10W system providing one light bulb (CFL) would cost between $230 – 240, while a 20W system serving two lights costs about $385. D) Village Lighting Scheme of Alternative Technology Association (ATA), Australia Location: Besilau (District Aileu) In October 2007, ATA has started to test different lighting schemes in the suco Besilau (District Aileu), targeting 16 customers (see report included in the reference list of the rural energy policy development). According to ATA, villagers have been spending between $1 and $5 for lighting, using a mix of kerosene and candles. Some communities reportedly could only afford to use lighting for 2-3 times per week. Several combinations of lighting solutions have been installed, including a central recharging station for batteries, equipped with two 80W panels, a large battery bank and an inverter (total cost $3.120 without shipment). This recharging station has been located at the suco center, providing also lighting for the center itself. Customers using this recharging service have received different batteries (with different maximum charging cycles) and either an LED lamp (as mobile system, see photo) or LED or CFL light bulbs for a fixed internal lighting system (costing between $120 and $150). All those households using the central

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

battery recharge station have to pay $1 per months. The collected money will only cover maintenance and battery replacement costs. In five cases usual small-scale solar home systems were installed (most probably not more than 5W panels, costing only $110 per system), using either LED (2W) or CFL (3W, having an average of 150 lumens) bulbs offering different lighting quality, as the LED light is far more concentrated (no information provided on the size of the module). Apart from this, local technicians and stations managers have been trained to do minor repair works and run the commercial activity. A set of spare-parts was left in the community. Comment: The central recharging station is a viable alternative to stand-alone systems if very small amounts of electrical energy are needed. It leads into a business-style operation as payment has to be done for every recharging and the operators have to overlook the functioning of the central PV system as well as of the individual accumulators. Critical is the relatively low number of charging cycles (between 200 and 500). $1 seems to be a very low amount for running two lights, but quality of light needs to be taken into account (3W CFL is only in the range of a 15W incandescant light bulb). Critical is also the backup of maintenance in case of severe failures and the access to spare-parts, as in all those technical projects. This suco center apparently has not yet received the solar equipment from the Ministry of State Administration. In those cases, where such a larger system is already in place, operation of a similar recharging center could be considered, eventually after some up-grading (additional solar panel etc.) has taken place. Overall observation and recommendations Providing modern lighting to rural households without electricity supply from a central or isolated grid is essential to replace the use of kerosene and candles and improve living conditions. It is not reducing costs – on the contrary: in general only maintenance costs, such as incurred by the replacement of the battery and the light bulbs, can be covered by rural consumers, if calculated against spendings for traditional lighting sources. That means that investment costs usually have to be covered from donations, i.e. either the national state budget or from international fundings. Under any circumstances conditions should be avoided, in which the beneficiaries get the complete system for free, without be asked for any contribution. Collecting and managing such small contributions (in the range of $1-5 for small-scale systems, depending on their size and lighting quality) is not easy to do, but should be introduced as a collaborative effort within the community. Our general concern is focussed on the longer-term sustainability of the systems, with a low density of experienced technicians and virtually hardly any technical backup scheme in place. We therefore strongly recommend to first put PV electricity on the agenda of technical schools and equip those vocational centers with model PV kits for educational purposes. Teachers will need to be trained by experienced local oder international advisors, educational material needs to be prepared. A second step would be to promote the establishment of retail stores or technical workshops throughout the country. The main spare-parts (like batteries, lamps) should be easily available within close distance of the users home, without the need to refer to shops in Dili. At least every district capital should have such privately run store with sufficiently trained personnel. It needs to be considered how such business could be stimulated by providing certain incentives to overcome existing obstacles. Of course it has to be taken into account

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

that a sufficiently large market will be needed for any such enterprise to be succesful. Thoughts should also be given, how existing business activities by local people could be enhanced or expanded to also provide service for the solar sector (using service shops for cars or electrical/mechanical equipment in district centers). D. Loy, March 2008

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Estimations A 20W module has a size of roughly 0.2 m². The daily solar irradiation in TL is on average 5 kWh/m². → With an efficiency of about 15% (standard value of current modules) we can gain with

this module about 150Wh of electricity per day. One CFL of 20W (equivalent lighting quality of a 100W incandescant light bulb), operating for 4 hours a day will consume 80 Wh. Two CFLs of the same size will therefore consume about 160 Wh. → With a 20W module exposed to average sunshine for one day, we can run 2 CFLs of

20W each (or 4 CFLs of 10W each) for almost 4 hours per day. → The electricity consumption (and generation) in one month will add up to about 5kWh. The use of LEDs would lead to higher costs for the lamp, but could substantially reduce the size of the module (estimated cost of appr. $8 per Watt for small modules) or increase the “amount” of light. The size of the battery is determined by the amount of electricity stored (measured in Ah). If we assume that the battery should store sufficient electricity to cover three days in a row without recharging (there could be cloudy days in between) we will need 480 Wh, divided by 12V (the voltage of the battery) we get then 40Ah. Each Ah of battery storage currently costs about $2. Estimated cost of a complete SHS system: 20W module $160 Battery $80 Charge Controller $20 Lamp, Wiring, Switches, Mounting $20 Total costs $280 If we assume that 50.000 customers would get such a basic solar lighting system, it would cost then $14 million of investment.

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Report on Community Power Plants

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Detlef Loy: UNDP, Rural Energy Policy Development Timor-Leste, January-May 2008, Working Document 1

Community-based Electricity Network

Location: Suco Fatumasi, Sub-District Bazartete, District Liquiça

Observation:

The suco had already electricity until 1999, but the generators were destroyed at that time and wires were dismantled from the distribution line and sold by the local population in the aftermath of those events.1 In 2002, the Japanese Government (JICA) donated two new diesel generator sets as part of its “Project for urgent rehabilitation of small power stations in rural areas”.2

Each of the generators has a capacity of 62.5 kVA, but only one is currently operational. The other one is down due to water that has entered the engine together with diesel fuel. Only 47 households are connected to the community grid, getting electricity mainly for lighting and information (TV/radio) during 6-7 hours in the evening.

Location of Power Plant in the suco Fatumasi/sub-district Bazartete

1 Besides the suco Fatumasi, also the far larger (by population) suco Leorema in the same sub-district

Bazartete had electricity until 1999.2 Within this programme, between 2002 and 2004 a total of 13 power plants were reinstalled throughout the

country with assistance from the United Nations Office for Project Service (UNOPS): Bazartete (Liquica), Loes (...), Atabae (Bobonaro), Atsabe (Ermera?), Remexio (Dili?), Hato-Udo (Ainaro), Fatuberliu (Manufahi), Lacluta (Viqueque?), Iliomar (Lautem), Beco or Beaco? (...), Mape (Cova Lima), Hatubuilico (....), Raimean or Raimea in Cova Lima? (....) .

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Detlef Loy: UNDP, Rural Energy Policy Development Timor-Leste, January-May 2008, Working Document 2

Each household is paying a reduced flat-rate of 2.25$ per month since the crisis of 2006/07, before it was 3$. The collected amount (that every household can afford due to a relatively prosperous environment, mainly based on corn and coffee selling) is used for purchasing of fuel – that is delivered by EDTL – and payment of the technical operator (50$ a month).

The gensets donated by Japan in 2002, at right the control unit, in the background the diesel storage tank

The suco administration has been seeking for technical assistance to restore the function of the second generator, but so far EDTL has not shown any reaction. The operator was reporting that the max. load is about 18-20 kW. It needs to be questioned how this already relatively high load sums up, based on the assumption that each household barely will operate more than 4 lights and a TV at the same time.3 Fact is that the plant is highly oversized and could serve a lot more households and /or other purposes (as the suco chief suggested, there is an energy/electricity need for coffee grinding and furniture making).

Apparently it was originally planned to also provide more households in the near vicinity with electricity, but despite the fact that poles from former times are still existing such plans did not materialize until to date. As can easily be seen from the satellite picture, in the closer surrounding of the power plant and the suco Fatumasi there are only scattered houses, mainly located some 200 metres below the suco, which is placed on a high ridge at an altitude of almost 900 metres. It is reported that the nearest other suco Leorema with more than 500 families is about 2.5km away. Wiring could be established, if funds would be made available. On this background it is not understandable, why preference was given to this site with a very limited demand.

3 We learned in Remexio that most, if not all consumers still use incandescant light bulbs of 100W each,

instead of energy saving light bulbs with 20W and equivalent lighting capacity.

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Detlef Loy: UNDP, Rural Energy Policy Development Timor-Leste, January-May 2008, Working Document 3

As it is, the oversized engines are operating at only partial load and therefore with a reduced efficiency. If figures have been provided correctly, one engine consumes about 10 litre of diesel per hour (at roughly 10 kWh energy content per litre). Therefore the energy input per hour amounts to about 100 kWh, while the output is only in the range of 20 kWh or the electrical efficiency equal to about 20%! Assumed that the average load is probably far lower, the efficiency will even decline further.

It further needs to be questioned, how much of the operating cost is effectively carried by the community. 10 litres of diesel currently cost about 10$, therefore the operation for only one evening would sum up to about 60$, i.e. more than 1$ per household! But as can easily be calculated, the total number of households pay only 105.75$ per months, leaving only 55.75$ for the purchase of fuel. This suggests, that almost the total amount of fuel (1,800 litres per month equal to about 1,800$) is being subsidized from the state budget.

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Detlef Loy: UNDP, Rural Energy Policy Development Timor-Leste, January-May 2008, Working Document 4

Plate of the genset

It also needs to be noted that despite the fact that there is sufficient electricity available, a hospital/health center (through the Ministry of Health), a police station (through the Ministry of Interior), the suco administration (through the Ministry of Infrastructure) and the community center (through the Ministry of ... ,with UNDP funding) have all been provided with individual PV systems. The suco administration is operating a refrigerator on this system, keeping animal vaccines at low temperatures. Such round-the-clock energy service could also have been provided by installing a battery storage that would have been charged during the evening hours.

PV System on the sub-district administration building; it is akward how the panels have been mounted, facing different directions. The supporting structure of the elevated panel looks weak, given the fact that apparently

strong winds can happen.

The only recently installed solar community centre system is already partially dysfunctional, since the TV satellite dish collapsed during a storm and was heavily damaged. It is apparent that the foundation was not properly done, with concrete placed only around the surface of the pole grounding. Thus it was inevitable that the pole could not stay fixed in the ground and did not resist heavier wind loads.

Community centre with solar panel and broken satellite dish on the left.

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Detlef Loy: UNDP, Rural Energy Policy Development Timor-Leste, January-May 2008, Working Document 5

Insufficient foundation of the satellite pole that lead to collapse

To conclude: The power plant, which lead to investment costs of at least 150,000$, is serving only a very limited number of customers and appears to be misplaced. Investment costs alone were in the range of 3,000$ per connected household, therefore exceeding average annual incomes by several times (and making it obvious that a PV system could have served the same functions at considerably lower costs)! The machines are oversized, despite the fact that an artificially high load is created by using inefficient electrical appliances. The proposed connection to the next neighbouring suco was not realized. Most of the fuel supply is being fully subsidized, due to a low financial contribution from the community. Proper maintenance by EDTL is not secured, one engine is down since several months without any reaction from the utility. On top of this, several buildings have received solarelectric systems, despite the fact that an already extremely expensive electrical power supply, operating well below full capacity, and a local distribution network exists.

It is strongly recommended to look into effective ways for using the power plant for other productive purposes, to establish reliable contractual service agreements with EDTL, reconsider the financial contributions of the electricity consumers and connect more customers to the power plant.

29.01.2007

Detlef Loy (all pictures, except those taken from Google Earth)Loy Energy [email protected]

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Comparison of Energy-efficient Stoves in Uganda and Timor-Leste

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Comparison of Energy-efficient Stovesin Uganda and Timor-Leste

Observation

Uganda:Stoves made of locally available material (clay mixture), very low cost, high efficiency (more than 50% less wood input), both pots receive sufficient heat, local production by users with assistance from trained staff, indoor smoke completely banned, lifetime about 4 years.

East-Timor:Stoves made of bricks, cement and metall (or ceramics in a different one-pot design), relatively high costs (20 US$ and more), high – mainly uncontolled - inflow of air due to two-chamber system with separate ash compartment, second pot does not receive sufficient heat, apparently not properly designed, chimney in some cases missing, exhaust smoke not fully flowing through chimney, long lifetime, local manufacturing with labour input by users.

All pictures:

Detlef LoyLoy Energy [email protected]

January 2008

Page 147: Rural Energy Policy for Timor-Leste

Rocket Lorena Stove for two pots with chimney, material: Clay mixtureUganda, November 2008

Rocket Lorena Stove for two pots with chimney, material: Clay mixtureUganda, November 2008

Rocket Lorena Stove for two pots with chimney, material: Clay mixtureUganda, November 2008

Rocket Lorena Stove for two pots with chimney, material: Clay mixtureUganda, November 2008

Page 148: Rural Energy Policy for Timor-Leste

Rocket Lorena Stove, building phaseUganda, November 2008

Rocket Lorena Stove, building phaseUganda, November 2008

Preparation of clay mixture for Rocket Lorena StoveUganda, November 2008

Rocket Lorena Stove for two pots with chimney, material: Clay mixtureUganda, November 2008

Page 149: Rural Energy Policy for Timor-Leste

Rocket Lorena Stove, made of clay mixtureUganda, November 2007

Rocket Lorena Stove, made of clay mixtureUganda, November 2007

One-Pot Mobile Stove made of clay mixtureUganda, November 2007

Page 150: Rural Energy Policy for Timor-Leste

Large stove for primary schoolKampala, November 2007

Large stove for primary schoolKampala, November 2007

Page 151: Rural Energy Policy for Timor-Leste

Stove in Timor-Leste, Jan. 2008, with chimney, front closedMaterial: Bricks, Cement, Metall

Stove in Timor-Leste, Jan. 2008, with chimney, open frontMaterial: Bricks, Cement, Metall

Stove in Timor-Leste, Jan. 2008, Chimney removed, open frontMaterial: Bricks, Cement, Metall

Stove in Timor-Leste, Jan. 2008, Chimney removed, open frontMaterial: Bricks, Cement, Metall

Page 152: Rural Energy Policy for Timor-Leste

Assembled stove, not complete (Firing unit missing), made of ceramicsTimor-Leste, January 2008

Stove in Timor-Leste, Jan. 2008, with chimney,Material: Bricks, Cement, Metall

Stove in Timor-Leste, Jan. 2008, with chimney, open frontMaterial: Bricks, Cement, Metall

Page 153: Rural Energy Policy for Timor-Leste

Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Projects funded by the Global Environment Facility in the field of Rural Energy and Rural Electrification

Page 154: Rural Energy Policy for Timor-Leste

Projects - Results Page - Advanced Search http://web.worldbank.org/external/projects/main?menuPK=225435&t...

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Home > Projects > Projects Database > Results Page - Advanced Search

Your search for Rural energy returned 30 records (Results 1 - 30 of 30)[1]

Display Results in set of: 10 50 100

Project Name ID Commitment

Amount*Product Line Country/Area Status Approval

DateMX-GEF Integrated Energy Services P095038 15 Global Environment

ProjectMexico Active 17-JAN-2008

TZ-GEF Energy Dvpt and Access Expansion P092154 6.5 Global Environment Project

Tanzania Active 13-DEC-2007

Ghana Rural Energy Accesss P070970 5.5 Global Environment Project

Ghana Active 26-JUL-2007

MN- Renewable Energy for Rural Access - GEF P084766 3.5 Global Environment Project

Mongolia Active 19-DEC-2006

Rural Electrification Phase I Project of the Rural Electrification (APL) Program

P080054 3.75 Global Environment Project

Lao People's Democratic Republic

Active 27-APR-2006

PE - Rural Electrification P090110 10 Global Environment Project

Peru Active 07-MAR-2006

Rural Electrification Project P090113 2.35 Global Environment Project

Honduras Active 15-DEC-2005

ENERGY ACCESS PROJECT P077380 4.93 Global Environment Project

Ethiopia Active 28-JUL-2005

China - Renewable Energy Scale-up Program (CRESP) P067625 40.22 Global Environment Project

China Active 16-JUN-2005

VN-GEF-RURAL ENERGY 2 P080074 5.25 Global Environment Project

Vietnam Active 18-NOV-2004

SN-GEF Elec Srvc for Rural Areas (FY05) P070530 5 Global Environment Project

Senegal Active 09-SEP-2004

Renewable Energy Development Project P071591 5.75 Global Environment Project

Cambodia Active 16-DEC-2003

Supplemental Project to the Rural Power Project P072096 9 Global Environment Project

Philippines Active 04-DEC-2003

Nicaragua Off-Grid Rural Electrification P075194 4.02 Global Environment Project

Nicaragua Active 15-MAY-2003

DECENTRALIZED RURAL ELECTRIFICATION PROJECT P042055 2 Global Environment Project

Guinea Active 02-JUL-2002

System Efficiency Improvement, Equitization & Renewables Project (GEF Renewable Component)

P073778 4.5 Global Environment Project

Vietnam Active 25-JUN-2002

Renewable Energy for Rural Economic Development P077761 8 Global Environment Project

Sri Lanka Active 20-JUN-2002

Renewable Energy Development Project P074040 8.2 Global Environment Project

Bangladesh Active 05-JUN-2002

Energy for Rural Transformation Project P070222 12.12 Global Environment Project

Uganda Active 13-DEC-2001

Power and Communications Sectors Modernization and Rural Services Project - PROMEC

P072527 2.84 Global Environment Project

Ecuador Active 20-NOV-2001

Renewable Energy for Agriculture Project (GEF) P060718 8.9 Global Environment Project

Mexico Closed 21-DEC-1999

Renewable Energy Development Project - GEF P038121 35 Global Environment Project

China Active 08-JUN-1999

AR-RENEWABLE ENERGY IN RURAL MARKETS P045048 10 Global Environment Project

Argentina Active 30-MAR-1999

RENEW. EGY SMALL POW P042944 4 Global Environment Project

Indonesia Closed 24-JUN-1997

SN-GEF Enrgy Mgmt Sust Prtn SIL (FY97) P042056 4.7 Global Environment Project

Senegal Closed 12-JUN-1997

ENERGY SERV.DLVY. P039965 5.9 Global Environment Project

Sri Lanka Closed 18-MAR-1997

Solar Home Systems P003700 24.3 Global Environment Project

Indonesia Closed 28-JAN-1997

Rw: Urgent Electricity Rehabilitation (GEF) P097818 4.5 Global Environment Project

Rwanda Pipeline N/A

Zm: Increased Access to Electricity & ICT Services - GEF

P076320 4.5 Global Environment Project

Zambia Pipeline N/A

Off-Grid Rural Electrification Project P068390 1.5 Global Environment Project

Mexico Dropped N/A

[1]

Display Results in set of: 10 50 100

* For active and closed projects, the commitment amount at Board approval is shown in US$ millions.This does not reflect any cancellations. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.Click column header to sort, click again to reverse.

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Terms of Reference (for International Consultant)

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

United Nations Development Programme TERMS OF REFERENCE Post Title : Rural Energy Policy Development Specialist Duration of the Assignment : 3 months Duty Station : Dili, Timor-Leste Expected starting date : September 2007 Project : Participatory Rural Energy Development Programme

(PREDP) and TTF-Energy I. Background The Government of Timor-Leste (GoTL) through the Ministry of Natural Resources, Minerals and Energy Policy in cooperation with UNDP and the Government of UK are implementing two pilot projects, Participatory Rural Energy Development Programme (PREDP) and Promoting Access to Energy Services to Rural Areas of Timor-Leste and Formulation of National Rural Energy Development Policy in six districts. The development goals of the ongoing projects are: 1) to introduce rural energy technologies (RETs) and/or renewable energy technologies to increase access to energy services for the poor people in remote areas; 2) promote the use of renewable energy for productive purposes to enhance economic productivity and income generation for the poor people and at the same time addressing environment conservation; 3) assist the Government of Timor-Leste to prepare renewable energy policy; and 4) establishment of institution(s) to support the sustainability of rural energy in the country. The development of the rural energy policy is one of the most critical components of the project as currently there is no comprehensive policy to guide the development of the overall rural energy sector in the country. UNDP is, therefore, looking for a specialist in this area to take up this assignment and start assisting the Government to develop the rural energy policy for Timor-Leste. II. Objective The objective of the assignment is to develop a National Rural Energy Policy for Timor-Leste. III. Duties and Responsibilities In close coordination with the Ministry of Natural Resources, Minerals and Energy Policy (GoTL); the Poverty Reduction and Environment Unit (UNDP); and the National Project Manager, the incumbent will perform the following tasks:

Review all available background materials related to energy and development in Timor-Leste including the National Development Plan, Rural Electrification Master Plan, Sector Investment Program (Power), the National Energy Development Plan, Timor-Leste energy needs assessment report (UNDP), and lessons learned from rural energy development projects e.g. PREDP and TTF-Energy;

Conduct extensive consultation meetings with relevant government ministries, NGOs, Academia, rural communities (energy users) and energy suppliers at the national and district levels;

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Rural Energy Policy for Timor-Leste (Proposal)– Final Version, July 2008

Coordinate with the Project Implementation Unit to conduct field visits to the districts - to collect information at the grass-root level;

Prepare the draft Policy for Rural Energy Development in the country; Ensure that in line with the National Development Plan the draft national rural energy

policy reflects and incorporates access to energy as a means to improve livelihoods and economic development in rural areas;

Coordinate with the Project implementation Unit to conduct workshops at the district and national levels - to review and validate the draft policy paper;

Review and improve the draft Rural Energy Policy by incorporating all relevant information collected in the consultation workshops; and

Submit the final draft of the Rural Energy Policy to the relevant Government Ministries and UNDP.

IV. Expected Outputs The incumbent is expected to produce the following outputs:

a. Reports of the consultation workshops; b. A draft Rural Energy Development Policy for Timor-Leste for submission to the relevant

Government Ministries and UNDP; and c. Final Mission Report

V. Qualification and Professional Experience

• Advanced university degree in energy technology, or in other related fields with minimum of 10 years of experience working in the area of Rural Energy Development;

• Familiarity with rural energy policies in the Asian and/or Pacific countries; • Demonstrated strong experience in the formulation of rural energy policy and broader

understanding of rural development issues mainly in the Least Developing Countries (LDC) / Small Islands Developing States (SIDS);

• Demonstrated experience in facilitating multicultural consultative processes, preferably in the area of rural energy development;

• Familiarity with the working environment in the LDCs, especially in Asia and the Pacific regions;

• Good knowledge of cross-cutting issues in relation to energy planning, programming and implementation in the developing countries, particularly in the Asia-Pacific Region;

• Familiarity with renewable energy technology for rural development; • Excellent writing and communication skills in English, (fluency in Portuguese, Tetum or

Bahasa Indonesia would be an advantage); • Experience with UN agencies is an advantage.

Please submit your applications together with curriculum vitae and relevant supporting documents to the following address The deadline for submission of applications is 31 July 2007 Procurement Unit, UNDP UN House Obrigado Barracks Compound, Building 11 Caicoli Street, Dili, Timor-Leste Fax : +670 3312408 E-mail : [email protected] The deadline for submitting applications is 31 July 2007. Only short-listed candidates will be notified. Women candidates are strongly encouraged to apply.