Energy and Environment Partnership with Central America
[last updated January 4, 2004 12:12 AM]

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General Information
Partnership website(s)
Expected Timeframe
September 2002 - December 2005
Partners
Governments:
  • Government of Finland - Ministry for Foreign Affairs
  • Government of Belize
  • Government of Costa Rica
  • Government of El Salvador
  • Government of Guatemala
  • Government of Honduras
  • Government of Nicaragua
  • Government of Panama
Major Groups:
  • ABB Oy (Finland)
  • Aurinkoteknillinen yhdistys (Solar Technology Association) (Finland)
  • Biodata BD Oy (Finland)
  • Electrowatt-Ekono Oy (Finland)
  • Enprima Oy (Finland)
  • Finnish Meteorological Institute (FMI) (Finland)
  • Gaia Group Oy (Finland)
  • GreenStream Network Oy (Finland)
  • NAPS Systems Oy (Finland)
  • Pohjolan Voima Oy (Finland)
  • Shield Oy (Finland)
  • University of Joensuu (Finland)
  • University of Jyväskylä (Finland)
  • VTT Processes (Finland)
  • Vapo Oy (Finland)
  • Winwind Oy (Finland)
  • Wärtsilä Finland Oy, Biopower (Finland)
  • Central American organizations ()
UN System:
    Other intergovernmental organizations:
    • Sistema de la Integracion Centroamericana (SG-SICA) (El Salvador)
    • CCAD (Comision Centroamericana de Ambiente y Desarrollo) (El Salvador)
    Other:
    • FINNFUND (Finland)
     
    Thematic Focus
    Primary Themes:
    • Means of Implementation (Trade, Finance, Technology, Transfer, etc.)
    • Rural development
    • Poverty eradication
    • Energy for sustainable development
    • Institutional framework for sustainable development
    • Sustainable development in a globalizing world
    • Climate change
    • Protecting and managing the natural resource base of economic and social development
    • Air pollution / Atmosphere
    • Changing unsustainable patterns of consumption and production
    Secondary Themes:
    • Forests
    • Waste management
    • Biodiversity
    • Health and sustainable development
    • Gender equality
    • Industrial development
    Geographic Coverage
    Geographic Scope: Sub-regional Central America
    Country(ies) where the partnership is being implemented:
    Belize, Costa Rica, El Salvador, Finland, Guatemala, Honduras, Nicaragua, Panama
    National Focal Points
    At present, no information is available as to whether the partnership has made contact with the national focal points for sustainable development in the relevant countries.
    Goals and Objectives
    Summary of the partnership's goals and objectives
    The main objective of the Partnership is to promote the use of renewable energy sources and clean technologies in Central America in a sustainable manner, and to make energy services more accessible to the poor, particularly to those in rural areas.
    Increased utilisation of renewable energy in the national and local energy mix, introduction of new energy and environmental technologies, utilisation of CDM potential, better energy sector management and increased access to energy services are the expected results of the Partnership.
    Targets and Progress
    Partnership targets
    National targets for the share of renewable energy in the primary energy use and electricity production will be defined in the beginning of the partnership. Other indicators include access rate to modern energy services, electrification rate, emission reductions (expressed as emission reduction or green certificates), number of new renewable generation plants, number of electrified households, schools, health centers, number of seminars and training tours, etc. Specific targets and time freme for their achievement will be defined.
    The following groups of activities have been identified so far:
    - small-scale demonstration projects in the field of renewable energy
    - energy resource surveys
    - pre-feasibility and feasibility assessments
    - cooperation related to climate change
    - energy market development
    - capacity building and training (seminars, training tours, twinning, etc.)
    - development of financing models and sourcing of funding.
    Progress against targets
    The mobilization of the partnership started after the WSSD in September 2002. A partnership agreement between the Ministry for Foreign Affairs of Finland, SG-SICA and CCAD was signed on June 18, 2003.

    The following activities have taken place or are scheduled so far:
    - Partners' meeting in Finland Oct 15, 2002
    - Programming meeting in Central America Oct 30 - Nov 1, 2002
    - Partners' meeting in Finland Dec 12, 2002
    - Steering Committee meeting in Nicaragua Mar 11, 2003
    - Steering Committee meeting and Partnership forum in Panama Jun 17-19, 2003
    - Steering Committee meeting and Bioenergy2003 seminar in Finland Sep 1-7, 2003
    - Steering Committee meeting and Financing forum in Belize Oct 22-24, 2003
    - Steering Committee meeting and Biomass seminar in Guatemala Mar 18-19, 2004
    The following studies and projects have been approved and are in progress:
    - Carbon Finance Handbook (regional)
    - Biomass resource study (regional)
    - Identification of biomass power plant sites (Guatemala, Honduras)
    - Wind potential study in Roatan Islands (Honduras)
    - Formulation of a renewable energy project fund (El Salvador)
    - Biomass use demonstration project (Guatemala)
    - Solar energy for health centres demonstration project (Honduras)
    - Grid connection of s mini-hydro plant (Nicaragua)
    - PV electrification of Ustupo Islands (Panama)

    In Finland both the Ministry for Foreign Affars and Ministry of Environment have been actively involved. Finland has promised to coordinate the related activities in Central America towards the EU Energy Initiative.
    Capacity-Building and Technology Transfer
    Arrangements for Capacity-Building and Technology Transfer
    • Human resources development/training
    • Education/building awareness
    • Institutional strengthening, including local participation
    • Technology transfer/exchange
    Capacity building and technology transfer will be achieved through joint activities under the Partnership. In addition, information on renewable energy and environmental technology will be disseminated in seminars, training activities and twinning arrangments. Small pilot projects will be implemented to demonstrate the viability of renewable energy and new technology innovations.
    Relationship to International Agreements on Sustainable Development
    How the partnership contributes to the implementation of Agenda 21, the Programme for the Further Implementation of Agenda 21, and the Johannesburg Plan of Implementation
    The Partnership aims at supporting all three pillars of sustainable development - economic, social and environmental.
    Energy services are the prerequisite for economic development both at the national and local level. Energy is needed in almost all productive activities leading to income generation and job creation.
    Access to affordable modern energy services especially in rural areas can make a significant change in household energy use, time allocation of women and children, indoor air quality, and safety. Energy services also support social development contributing to education, health care, water supply, ICT and other such activities.
    The partnership aims at promoting the use of renewable energy sources in a sustainable manner, reduce harmful emissions and so to combat climate change. Efficient use of energy, good management and regional cooperation can help to achieve sustainable use of natural resources. Relevant Sections of Agenda 21
    Preamble
    Relevant Sections of the Programme for the Further Implementation of Agenda 21
    Integration of economic, social and environmental objectives; Sectors and issues; Means of implementation
    Relevant Sections of the Johannesburg Plan of Implementation
    Introduction ; Poverty eradication ; Changing unsustainable patterns of consumption and production ; Protection and managing the natural resource base of economic and social development ; Sustainable development in a globalizing world ; Means of implementation
    Coordination and Implementation
    Coordination Mechanism of the Partnership
    A Steering Committee has been formed of representatives of Central American countries and Finland. The country representatives act as national coordinators. Regional Coordination Office with two full time employees is operating at SG-SICA's premises. The Office is in charge of monitoring and supervision of the projects and information dissemination. It also organizes the steering committee meetings, seminars and other events. Partnership guidelines and other documents are available at http://www.sgsica.org/energia .
    Implementation Mechanism of the Partnership
    Partners can present project ideas and requests for seed funding through the National Coordinator to the Steering Committee. If the project idea is approved the partners are requested to present a more detailed project document. Regional Coordination Office will follow the implementation of the projects.
    Resources
    Funding Currently Available
    Amount in US$: 3947587
    Source(s): Government - Private sector
    The Government of Finland has allocated funds for the partnership up to an amount of 3 Million Euros. The actual amount to be spent for the Partnership will, however, depend on the available funding of the private sector and other partners.
    The indicated private sector contribution amounts to EUR 300 000.
    Non-financial resources available
    Type(s): Staff - Other
    Source(s): Private sector - Other
    The manufacturing and consulting companies, universities and research institutes have promised to contribute in form of training, twinning, testing and equipment supply.
    Funding Sought
    Required Amount in US$: not specified
    Source(s) already approached: The private sector support has been indicated in the commitment letters. The support may consist of direct financing, R&D, capacity building, studies, pilot installations, equity investments, etc.
    Non-financial resources sought
    Requirement(s):
    Source(s) approached and details:
    Additional Information
    Additional Relevant Information
    Background:
    To initiate the dialogue on renewable energy issues a seminar was organized in April 2002 in El Salvador where the idea of the WSSD partnership was presented. Representatives of Honduras, Guatemala, El Salvador, Nicaragua, Costa Rica and Panama attended the Seminar. Finnish participants were from the ministries, financing organizations and private companies. The seminar was organized by CCAD.

    International links:
    * The partnership conforms with the EU Energy Initiative and serves as an example of a small Member State partnership under the EU Energy Initiative
    * EU's SYNERGY Programme: PLANER Project
    * Interamerican Development Bank
    * The World Bank Carbon Finance Unit
    * Finland's CDM/JI Pilot Programme
    Regional links:
    * Central American BAnk for Economic Integration (CABEI)
    * Energy and Climate Change Program (UNDP)
    * Central American Network of Private Enterprises for Cleaner Production
    * Mesoamerican Biological Corridor
    * The World Bank's Carbon Finance Studies in El Salvador, Guatemala and Honduras
    * UNEP Pilot Loan Guarantee Programme in Guatemala and Nicaragua