Outline of Energy Policy 2007-2025.

™›’• OUTLINE OF ENERGY POLICY 2007 - 2025 CONTENTS Chapter Description Page 1 INTRODUCTION 1 1.1 The General Context 1 1.2 Concept of Energy Policy 1 1.3 Structure of Document 3 2 BACKGROUND 4 2.1 General 4 2.2 The electricity production landscape in Mauritius 4 2.3 Electricity Demand 6 2.4 Regulatory Framework 6 2.5 Reform of the Sugar Industry 7 2.6 Environment 7 2.7 Renewable Energy 8 2.8 Hydropower 8 2.9 Bagasse 9 2.10 Solar Energy 10 2.11 Wind Energy 10 2.12 Energy from Waste 11 2.13 Energy Used in Transportation Sector 12 2.14 Biofuels 12 2.15 Energy Efficiency and Conservation 13 2.16 Summary 13 3 OBJECTIVES OF THE ENERGY POLICY 15 3.1 Principles of policy formulation 15 3.2 Vision Statement 16 3.3 Targets 16 3.4 Summary 17 4 ELEMENTS OF THE ENERGY POLICY 18 4.1 General Framework 18 4.2 Government Policy 18 4.3 Electricity Market Structure 19 4.4 Electricity Pricing for IPPs 19 4.5 Electricity from Bagasse 20 4.6 Deemed Energy/ Deemed Price 21 4.7 Electricity from Coal 21 4.8 Renewable Energy in General 22 4.9 Electricity from Wind 22 4.10 Solar Energy 22 4.11 Transport 23 4.12 Ethanol 23 4.13 Electricity from Solid (Municipal) Waste 24 4.14 Environment 24 4.15 Demand Side Management and Energy Efficiency 25 4.16 Summary 26 5 ACTION PLAN 27 5.1 General 27 5.2 Electricity generation over the period 2007 – 2011 27 5.3 Legislation 28 5.4 Detailed Energy Policy and Masterplan for Renewable Energy up to 2025 29 5.5 Summary & Conclusion 29 April 2007 FOREWORD In view of the serious challenges posed by the volatility of oil prices and the rising cost of energy, Government has reviewed the energy policy for fuelling the future as a result of a paradigm shift on the world stage caused by climate change. Previous Electricity Plans prepared prior to 2005 are now superseded. The proposed policies take into account developments in the Energy Sector. The Presidential Address in 2005 set the tone for the future policy guidance for the electricity generation sector. The key for the CEB is its financial sustainability which is intimately linked with a diversification of the energy basket and providing affordable electricity to the customers to enable the economy to forge ahead. Given the competitive situation on the world market, electricity prices should compare favourably with prices which investors would obtain in other countries. Thus prices must be fair and cost reflective. In the wake of this new plan, Government will actively seek to engage into strategic partnerships which would guarantee the financial sustainability of the CEB and, in accordance with the declared policy of Government to maintain a reasonable share in the generation sector. Dr A T Kasenally Minister of Public Utilities Outline of Energy Policy 2007-2025 April 2007 1 1 INTRODUCTION 1.1 The General Context ‘Ž›Ž ‘Šœ ‹ŽŽ— Š Ž—Ž›Š• ›ŽŒ˜—’’˜— ‘Š Š— ’œ ’–™ŠŒ’— ˜— ‘Ž ™•Š—Ž ’— Š— ž—™›ŽŒŽŽ—Ž manner Š— ‘Ž –Š’— ŒŠžœŽ ‘Ž›Ž˜ ‘Šœ ž—’• —˜ ‹ŽŽ— ‘Ž —˜— ’œŒ›’–’—ŠŽ žœŽ ˜ ˜œœ’• žŽ•œ ‘’Œ‘ ’œ ŒŠžœ’— Œ•’–Š’Œ Œ‘Š—Ž •˜‹Š• Š›–’— Š— ‘Ž ›’œŽ ’— œŽŠ •ŽŸŽ• ‘Ž ›ŽŒŽ—•¢ ™ž‹•’œ‘Ž Ž›— ŽŸ’Ž Šœ Ž•• Šœ ˜‘Ž› ŠŠ ™›˜–™Ž ‘Ž ˜ Š •˜— •Šœ ŠŒŒŽ™ ‘’œ ŠŒ ‘Ž›Ž˜›Ž ›ŽŒŽ— ŽŸŽ—œ Š— ˜‹œŽ›ŸŠ’˜—œ Š›˜ž— ‘Ž ˜›• ‘ŠŸŽ ›’Ž›Ž Š —Ž Š Š›Ž—Žœœ Š–˜—œ ™˜•’Œ¢–Š”Ž›œ Š‹˜ž ‘Ž —ŽŽ ˜ ŽŒ›ŽŠœŽ ‘Ž žœŽ ˜ ˜œœ’• žŽ•œ Š— ’—Œ›ŽŠœŽ ‘Ž žœŽ ˜ œžœŠ’—Š‹•Ž Ž—Ž›’Žœ Š— ŠŒŒ˜›’—•¢ ‘ŠŸŽ ŒŠžœŽ Š Ž—Ž›Š• œ‘’ ’— ‘Ž Ž—Ž›¢ ™˜•’Œ’Žœ ’— ‹˜‘ ŽŸŽ•˜™Ž Š— ŽŸŽ•˜™’— Œ˜ž—›’Žœ ˜›Ž˜ŸŽ› ‘Ž Ÿ˜•Š’•’¢ ˜ ™›’ŒŽœ ˜ ˜’• ’— ™Š›’Œž•Š› ‘Ž ›’œŽ ’— ‘Ž ™›’ŒŽ ˜ ˜’• ›˜– Š— ŠŸŽ›ŠŽ ˜ Š›˜ž— ˜ ›˜– ˜ ŒŠžœŽ –Š—¢ ™Ž˜™•Ž ˜ ŽŠ› ˜› ‘Ž •˜— Ž›– ™›’ŒŽ ˜ Ž—Ž›¢ œž™™•’Žœ ŒŒ˜›’—•¢ Š œ‘’ ˜ Š›œ ˜‘Ž› œ˜ž›ŒŽœ ˜ Ž—Ž›¢ ’œ ‹Ž’— Ž–™‘Šœ’£Ž Š— ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ ‘ŠŸŽ Š’—Ž ’— ’–™˜›Š—ŒŽ — Šž›’’žœ ¢ŽŠ› œŠ Š Œ‘Š—Ž ’— ˜ŸŽ›—–Ž— Š— Š œŽ›’Žœ ˜ ŽŒ˜—˜–’Œ ›Ž˜›–œ Ž—œžŽ ŠŠ’—œ ‘Ž ‹ŠŒ”›˜™ ˜ Ž–˜Œ›Š’£Š’˜— ˜ ‘Ž ŽŒ˜—˜–¢ — œ‘˜› ‘Ž ™›’—Œ’™•Ž ‘’—Žœ ˜— Ž–™˜ Ž›’— Š•• Œ•ŠœœŽœ ˜ Œ’’£Ž—œ ’— ŠŒ‘’ŽŸ’— ‘Ž’› ž•• ™˜Ž—’Š•  Š•œ˜ –ŽŠ—œ ˜™Ž—’— ž™ ‹žœ’—Žœœ ˜ ŽŸŽ›¢ Œ’’£Ž— ™›˜Ÿ’’— ‘Ž– ’‘ ‘Ž —ŽŒŽœœŠ›¢ ŒŠ™ŠŒ’¢ ˜ ˜ œ˜ ’— ˜›Ž› ˜ ™›˜–˜Ž Š Š’›Ž› œ˜Œ’Ž¢ ‘Ž ’—œ’ž’˜—Š• ›Š–Ž ˜›” ˜› Ž—Ž›¢ ™˜•’Œ¢ ’œ ‘ŽŠŽ ‹¢ ‘Ž ’—’œ›¢ ˜ ž‹•’Œ ’•’’Žœ ‘Ž› œŠ”Ž‘˜•Ž›œ ’—Œ•žŽ ‘Ž ’—’œ›¢ ˜ ž‹•’Œ —›Šœ›žŒž›Ž ’—’œ›¢ ˜ ’—Š—ŒŽ Š— Œ˜—˜–’Œ ŽŸŽ•˜™–Ž— Š— ›Š—œ™˜› Š— ‘’™™’— ’—’œ›¢ ˜ —Ÿ’›˜—–Ž— Š— Š’˜—Š• ŽŸŽ•˜™–Ž— —’ ’—’œ›¢ ˜ ›˜ —žœ›¢ Š— ’œ‘Ž›’Žœ ’—’œ›¢ ˜ —žœ›¢ –Š•• Š— Ž’ž– —Ž›™›’œŽœ ˜––Ž›ŒŽ ˜˜™Ž›Š’ŸŽœ ŽŽ˜›˜•˜’ŒŠ• Ž›Ÿ’ŒŽœ Ž—›Š• •ŽŒ›’Œ’¢ ˜Š› Š— ‘Ž Šž›’’žœ žŠ› ž‘˜›’¢ 1.2 Concept of Energy Policy ˜ŸŽ›—–Ž— Ž—Ž›¢ ™˜•’Œ¢ ’œ ž—Ž›™’——Ž ‹¢ ‘Ž Ž–Ž›’— ŽŒ˜—˜–’Œ –˜Ž• œ’—ŒŽ ‘Ž –Š’— ™’••Š›œ ˜ ‘Ž Šž›’’Š— ŽŒ˜—˜–¢ ’•• ‹Ž ˜ž›’œ– ’‘ Š Š›Ž ˜ –’••’˜— ˜ž›’œ Š››’ŸŠ•œ ‹¢ ¢ŽŠ› ’—˜›–Š’˜— ŽŒ‘—˜•˜¢ œŽŠ˜˜ ‘ž‹ Š ›Žœ›žŒž›Ž œžŠ› œŽŒ˜› Š— Ž¡’•Ž –Š—žŠŒž›’— Outline of Energy Policy 2007-2025 April 2007 2 ‘Ž Ž—Ÿ’›˜—–Ž—Š• ’–Ž—œ’˜— ’œ ’—Ž›ŠŽ ’— ‘Ž Ž—Ž›¢ –Š›’¡ ˜ ‘Ž Œ˜ž—›¢ —Ž›¢ ŠŒŒ˜ž—œ Ž—Ž›Š••¢ ˜› Š‹˜ž ˜ Š•• ›ŽŽ—‘˜žœŽ Šœ Ž–’œœ’˜—œ ’— Šž›’’žœ  ’œ ”—˜ — ‘Š ›ŽŽ—‘˜žœŽ Šœ Ž–’œœ’˜—œ Š›Ž Š ‘Ž ›˜˜ ˜ Œ•’–ŠŽ Œ‘Š—Ž Š— Š’› ™˜••ž’˜— — ’œ ™˜œ’’˜— Šœ Š –Š•• œ•Š— ŽŸŽ•˜™’— ŠŽ ’ ’œ ’— ‘Ž ’—Ž›Žœ ˜ Šž›’’žœ ˜ ‘Ž•™ ’— ‘Ž ›ŽžŒ’˜— ˜ ›ŽŽ—‘˜žœŽ Šœ Ž–’œœ’˜—œ —Ž›¢ ™˜•’Œ’Žœ ’— Šž›’’žœ ‘’Œ‘ Ž›Ž ž—’• ›ŽŒŽ—•¢ –Ž›Ž•¢ Ž–Š— ›’ŸŽ— ’‘˜ž Š—¢ ’—ŒŽ—’ŸŽ ˜ ›ŽžŒŽ Ž–Š— Ž›Ž ž—œžœŠ’—Š‹•Ž Šž›’’žœ ’œ ›Ž•’Š— ˜— ’–™˜›Ž œ˜ž›ŒŽœ ˜ Ž—Ž›¢ ˜ –˜›Ž ‘Š— ›˜– Š ‹›˜ŠŽ› ™Ž›œ™ŽŒ’ŸŽ ‘Ž Œ˜—œž–™’˜— ˜ ˜œœ’• žŽ•œ ‹¢ ‘Ž Ž–Ž›’— ’Š—œ ‘’—Š Š— —’Š Š›Ž ™žœ‘’— ‘Ž ™›’ŒŽœ ‘Ž›Ž˜ ˜ ‘’‘Ž› Š— ‘’‘Ž› •ŽŸŽ•œ ‘’•Ž ‘Ž ˜—˜’— Ž˜™˜•’’ŒŠ• œ’žŠ’˜— ’— ‘Ž ž• ŠŽœ Š›Ž ‘ŠŸ’— œ’—’’ŒŠ— ’–™ŠŒœ ˜— ‘Ž ™›’ŒŽ ˜ ˜’• ‘Ž ‘’‘ ›Ž•’Š—ŒŽ ˜— ˜œœ’• žŽ•œ ‘Ž›Ž˜›Ž ‹ŽŠ›œ ŽŒ˜—˜–’Œ ›’œ”œ ˜› Šž›’’žœ ‘’•Ž •˜‹Š• Ž—Ž›¢ Œ˜—œž–™’˜— ’œ ’—Œ›ŽŠœ’— Š Š‹˜ž Š——žŠ••¢ ‘Ž ’—Œ›ŽŠœŽ ’— Ž•ŽŒ›’Œ’¢ Œ˜—œž–™’˜— ’œ Š Š œžœŠ’—Ž ›ŠŽ ˜ ‘Ž›Ž Š›Ž ‘Ž›Ž˜›Ž œŽ›’˜žœ Œ‘Š••Ž—Žœ ˜› ‘Ž Œ˜ž—›¢ ˜ –ŽŽ Ž•ŽŒ›’Œ’¢ Ž–Š— œ Šž›’’žœ ’œ Š— ’œ•Š— ŠŽ ’ ŒŠ——˜ ‘ŠŸŽ ‘Ž ‹Ž—Ž’ ˜ ’—Ž›Œ˜——ŽŒ’˜— ŠŒ’•’’Žœ ‘’œ Œ˜—œ›Š’— Šœ ˜ ›’œ”œ ˜› œŽŒž›’¢ ˜ œž™™•¢ ’— ŒŠœŽ ˜ œŽŸŽ›Ž ™›˜‹•Ž–œ — ‘Ž Œ˜—Ž¡ ˜ ‘ŠŸ’— ˜ ‹Ž Œ˜–™Ž’’ŸŽ ’— Š •˜‹Š•’£Ž ˜›• Š— ŽŒ˜—˜–¢ Šž›’’žœ ‘Šœ ˜ Ž—Œ˜ž›ŠŽ ›ŽŠŽ› Œ˜–™Ž’’ŸŽ—Žœœ ’— ‘Ž Ž—Ž›¢ œŽŒ˜› ‘Ž›Ž ’œ ‘Ž›Ž˜›Ž Š —ŽŽ ˜ ŠŸ˜’ Š—¢ –˜—˜™˜•’œ’Œ œ’žŠ’˜— ‹Ž ’ ™ž‹•’Œ ˜› ™›’ŸŠŽ —¢ šžŠœ’ –˜—˜™˜•¢ ’•• —˜ ˜ ’— ‘Ž ’›ŽŒ’˜— ˜ œ’–ž•Š’— Š’› Š— Œ˜–™Ž’’ŸŽ Ž—Ž›¢ ™›’ŒŽœ Ž—Ž›¢ œŠŸ’—œ Š— ’ŸŽ›œ’’Ž ’—ŸŽœ–Ž— ‘Ž ›’‘ ™˜•’Œ¢ –’¡ ‘Šœ ‘Ž›Ž˜›Ž ˜ ‹Ž ™›˜Ÿ’Ž ˜ Ž—Œ˜ž›ŠŽ Œ˜–™Ž’’ŸŽ—Žœœ ’— ‘Ž œŽŒ˜› ›ŽŠŽ› ’—ŸŽœ–Ž— ’— Ž—Ž›¢ Ž’Œ’Ž—Œ¢ Š— ›Ž—Ž Š‹•Ž Ž—Ž›¢ ŒŠ— ›Žœž• ’— ŽŒ˜—˜–’Œ ›˜ ‘ Š— “˜‹ Œ›ŽŠ’˜— œ Šž›’’Š— ™›˜žŒœ —ŽŽ ˜ ‹Ž Œ˜–™Ž’’ŸŽ ’—Ž›—Š’˜—Š••¢ ’ ’œ ’–™˜›Š— ‘Š ™˜•’Œ’Žœ Š›Ž Žœ’—Ž œ˜ Šœ ˜ ™˜œ’’ŸŽ•¢ ’–™ŠŒ ˜— Ž—Ž›¢ ’—Ž—œ’ŸŽ œŽŒ˜›œ ˜ ‘Ž ŽŒ˜—˜–¢ — ŽŸ’œ’— ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ‘Ž œ˜Œ’Š• ’–Ž—œ’˜— —ŽŽœ ˜ ‹Ž Š”Ž— ’—˜ ŠŒŒ˜ž— ™Š›’Œž•Š›•¢ ‘Ž— œ™ŽŒ’’Œ –ŽŠœž›Žœ Š›Ž Žœ’—Ž Š— ’–™•Ž–Ž—Ž Outline of Energy Policy 2007-2025 April 2007 3 ’ŸŽ— ‘Ž ’ŸŽ›œŽ ›Žšž’›Ž–Ž—œ ˜ ŸŠ›’˜žœ œŠ”Ž‘˜•Ž›œ ‘Ž ˜›–ž•Š’˜— ˜ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ’œ ’›ŽŒŽ ‹¢ ‘Ž ˜••˜ ’— ‹›˜Š ™Š›Š–ŽŽ›œ ’ ‘Ž —Ž ŽŒ˜—˜–’Œ ›Š–Ž ˜›” ’’ ›Š—œ™˜›Š’˜— ’’’ žŠ› —žœ›¢ Ž˜›– ’Ÿ —Ÿ’›˜—–Ž— Ÿ ž—’Œ’™Š• ŠœŽ ’œ™˜œŠ• Ÿ’ •ŽŒ›’Œ’¢ Ž—Ž›Š’˜— Š›”Ž Š— Ÿ’’ ’—Š—Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž ’•’¢ 1.3 Structure of Document ‘Ž ˜Œž–Ž— ’œ œ›žŒž›Ž Šœ ˜••˜ œ ŽŒ’˜— —›˜žŒ’˜— ŽŒ’˜— ŠŒ”›˜ž— ŽŒ’˜— ‹“ŽŒ’ŸŽœ ŽŒ’˜— •Ž–Ž—œ ˜ —Ž›¢ ˜•’Œ¢ ŽŒ’˜— Œ’˜— •Š— ™™Ž—’¡ Ž–Š— Š— ž™™•¢ ˜›ŽŒŠœœ ™™Ž—’¡ ›Š Ž›–œ ˜ ŽŽ›Ž—ŒŽ ˜› ‘Ž ›Ž™Š›Š’˜— ˜ ‘Ž ŽŠ’•Ž ˜— Ž›– —Ž›¢ ˜•’Œ¢ o ™™Ž—’¡ ¢œŽ– ˜œ —Š•¢œ’œ ˜› ‘Ž Outline of Energy Policy 2007-2025 April 2007 4 2 BACKGROUND 2.1 General Šž›’’žœ ‘Šœ —˜ ”—˜ — ˜’• —Šž›Š• Šœ ˜› Œ˜Š• ›ŽœŽ›ŸŽœ Š— ’œ ‘Ž›Ž˜›Ž ‘ŽŠŸ’•¢ Ž™Ž—Ž— ˜— ’–™˜›Ž Ž—Ž›¢ œ˜ž›ŒŽœ — ‘Ž œ –˜›Ž ‘Š— ˜ ‘Ž Œ˜ž—›¢ œ Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž–Ž—œ Ž›Ž –Ž ›˜– ˜’• ‘’œ –ŠŽ ‘Ž Œ˜ž—›¢ œ Ž•ŽŒ›’Œ’¢ œž™™•¢ ‘’‘•¢ Ÿž•—Ž›Š‹•Ž ’— Ÿ’Ž ˜ ‘Ž Ÿ˜•Š’•’¢ ˜ ‘Ž ™›’ŒŽœ ˜ ˜’• ™›˜žŒœ –˜›Ž œ˜ ž›’— ’–Žœ ˜ Œ›’œ’œ œžŒ‘ Šœ ž›’— ‘Ž •Šœ  ˜ ž• Š›œ ˜–™Š›Ž ˜ ‘Ž›Ž ‘Šœ ‹ŽŽ— Š ’—Œ›ŽŠœŽ ’— ’— ˜Š• Ž—Ž›¢ ’–™˜›œ ›˜– œ ‹’••’˜— ˜ œ ‹’••’˜— ˜ ‘’Œ‘ žŽ• ˜’• ’–™˜›œ ŠŒŒ˜ž—Ž ˜› Š‹˜ž œ ‹’••’˜— ’— 2.2 The electricity production landscape in Mauritius ‘Ž Ž•ŽŒ›’Œ’¢ ™›˜žŒ’˜— •Š—œŒŠ™Ž ’œ Œ‘Š›ŠŒŽ›’£Ž ‹¢ ‘Ž Š— ‘Ž ŸŠ›’˜žœ —Ž™Ž—Ž— ˜ Ž› ›˜žŒŽ›œ œ ‘Ž Ž—›Š• •ŽŒ›’Œ’¢ ˜Š› ’œ Š ™Š›ŠœŠŠ• ‹˜¢ ›Žœ™˜—œ’‹•Ž ˜› ‘Ž ™›˜žŒ’˜— ˜ ˜ Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž–Ž—œ ˜ ‘Ž Œ˜ž—›¢ Š— ’œ ‹¢ Ÿ’›žŽ ˜ ‘Ž •ŽŒ›’Œ’¢ Œ Šœ Š–Ž—Ž ‘Ž œ˜•Ž ŠŽ—Œ¢ ˜› ›Š—œ–’œœ’˜— ’œ›’‹ž’˜— Š— Œ˜––Ž›Œ’Š•’œŠ’˜— ˜ Ž•ŽŒ›’Œ’¢ ˜ –ŽŽ ‘Ž Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž–Ž—œ ˜ ‘Ž Œ˜ž—›¢ ’— ‘Ž žœŽ œ˜–Ž ˜——Žœ ˜ ’–™˜›Ž žŽ• ˜’• Œ˜–™›’œ’— ‘Ž Œœ Š— Œœ ¢™Žœ Š— ˜——Žœ ˜ ’–™˜›Ž Œ˜Š• ‹ž›—Ž ’— ™˜ Ž› ™•Š—œ ˜™Ž›ŠŽ ‹¢ œ ‘Ž ‹Š•Š—ŒŽ Šœ –Ž ›˜– •˜ŒŠ• Š— ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ —Š–Ž•¢ ‹ŠŠœœŽ ‘’Œ‘ ’œ Š ‹¢ ™›˜žŒ ˜ œžŠ›ŒŠ—Ž ™›˜ŒŽœœ’— Š— ‘¢›˜ —Ž™Ž—Ž— ˜ Ž› ›˜žŒŽ›œ ‘’Œ‘ Š›Ž ˜› ‘Ž ’–Ž ‹Ž’— ™›’ŸŠŽ Ž—Ž›Š˜›œ ›˜– ‘Ž œžŠ› ’—žœ›¢ ™›˜žŒŽ Š‹˜ž ˜ Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž–Ž—œ ˜ Šž›’’žœ ‘Ž Ž•ŽŒ›’Œ’¢ ™›˜žŒ’˜— ˜ œ ’œ ‹ŠŠœœŽ Š— Œ˜Š• ‹ŠœŽ ’–™˜œ’— œŽŸŽ›Ž Œ˜—œ›Š’—œ ˜— ‘Ž ’— Ž›–œ ˜ ’œ™ŠŒ‘’— ’ŸŽ— ‘Ž ŽŒ‘—˜•˜¢ ˜ ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ‘’Œ‘ Š••˜ ‘Ž– ˜ ‹Ž žœŽ Šœ ‹ŠœŽ •˜Š ™•Š—œ ˜—•¢ Outline of Energy Policy 2007-2025 April 2007 5 ‘Ž Ž—Ž›¢ –’¡ ˜› ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› ’— Šœ Šœ ˜••˜ œ ‘Ž Š‹˜ŸŽ œ’žŠ’˜— ’•• ŽŸ˜•ŸŽ ’‘ ‘Ž Œ˜–’— ’—˜ ˜™Ž›Š’˜— Š —Ž ™•Š— ’— ‘Ž œ˜ž‘ ˜ ‘Ž Œ˜ž—›¢ ˜— ‘Ž ™›Ž–’œŽœ ˜ ŠŸŠ——Š‘ žŠ› ’••’— ˜–™Š—¢ Šœ ›˜– ™›’• ‘’Œ‘ ’•• ’–™ŠŒ ˜— ‘Ž Ž—Ž›¢ –’¡ ’— ‘Š ‘Ž ™Ž›ŒŽ—ŠŽ Œ˜—›’‹ž’˜— ˜ Œ˜Š• ’•• ’—Œ›ŽŠœŽ ‘’•œ ‘Ž Ž’Œ’Ž—Œ¢ ’‘ ‘’Œ‘ ‹ŠŠœœŽ ’œ žœŽ ’•• Š•œ˜ ‹Ž ’–™›˜ŸŽ ›˜– ‘Ž Š‹˜ŸŽ ’ž›Ž ‘Ž ™Ž›˜›–Š—ŒŽ ˜ Šž›’’žœ ’— Ž›–œ ˜ ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ ˜ Ž•ŽŒ›’Œ’¢ ’ Ž ’— Š•›ŽŠ¢ ™•ŠŒŽœ ’ Ž•• Š‹˜ŸŽ ŽŸŽ— –Š—¢ ŽŸŽ•˜™Ž Œ˜ž—›’Žœ  –žœ ‹Ž —˜Ž ‘Š ŽŸŽ— ‘˜ž‘ ‘Ž ™Ž›ŒŽ—ŠŽ Œ˜—›’‹ž’˜— ˜ ‹ŠŠœœŽ ’— ‘Ž Ž—Ž›¢ –’¡ ŽŒ›ŽŠœŽœ ’— Š‹œ˜•žŽ Ž›–œ ’ ’•• ’—Œ›ŽŠœŽ ’—ŒŽ Š•• ‹ŠŠœœŽ Œž››Ž—•¢ ™›˜žŒŽ ’— Šž›’’žœ ’œ Š•›ŽŠ¢ žœŽ ’— Ž—Ž›¢ ™›˜žŒ’˜— ‘Ž ’—Œ›ŽŠœŽ ’— Ž•ŽŒ›’Œ’¢ ™›˜žŒ’˜— ‘Ž›Ž›˜– ’— Š‹œ˜•žŽ Ž›–œ ’•• ‹Ž ŒŠžœŽ –Š’—•¢ ‹¢ Š’—œ ’— Ž’Œ’Ž—Œ¢ ˜ ‹˜’•Ž›œ ’— ‘Ž œ ˜›Ž˜ŸŽ› ‘Ž›Ž Š›Ž —Ž ŸŠ›’Ž’Žœ ˜ œžŠ› ŒŠ—Ž ‘’Œ‘ ŒŠ— ™›˜žŒŽ –˜›Ž ’‹›Ž ‘Š— Œž››Ž— ˜—Žœ Š— ‘ŽœŽ ˜ž• Š•œ˜ ‘Ž•™ ˜ ’—Œ›ŽŠœŽ ‘Ž Š–˜ž— ˜ Ž•ŽŒ›’Œ’¢ ™›˜žŒŽ ›˜– ‹ŠŠœœŽ  –Š¢ ‹Ž —˜Ž ‘Š ‹ŠŠœœŽ Œ˜Š• ™•Š—œ Š›Ž •Žœœ Ž’Œ’Ž— ’— Š™™’— ‘Ž Ž—Ž›¢ ™˜Ž—’Š• ›˜– Œ˜Š• ’‘ ‘Ž Œž››Ž— ŽŒ‘—˜•˜¢ ‘Ž¢ Š›Ž Š‹˜ž •Žœœ Ž’Œ’Ž— ‘Š— Ž’ŒŠŽ Œ˜Š• ™•Š—œ Ž—ŒŽ ‘Ž Ž—Ž›¢ Œ˜œ ’•• ‹Ž ™›˜™˜›’˜—ŠŽ•¢ ‘’‘Ž› ˜› Œ˜Š• ‹ŠœŽ Ž—Ž›¢ ’— ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ˜›Ž˜ŸŽ› Š•• œ ‘ŠŸŽ ‹ŠœŽ •˜Š ™•Š—œ ˜—•¢ ˜™Ž›Š’— ‘˜ž›œ Š Š¢ Š— ‘Ž›Ž˜›Ž —˜ ™›˜Ÿ’’— •Ž¡’‹’•’¢ ˜ ›’ ˜™Ž›Š’˜— ‘Ž ‹ŠœŽ•˜Š Ž•ŽŒ›’Œ’¢ Žœ™ŠŒ‘ ’œ Š•›ŽŠ¢ Œ˜—œ›Š’—Ž Š— ŠŒŒ˜–˜Š’— ž›‘Ž› œ ˜ ‘’œ —Šž›Ž ˜ž• ›ŽžŒŽ ‘Ž •˜Š Žœ™ŠŒ‘ ›˜– ‹ŠœŽ •˜Š ™•Š—œ ‘Ž •ŠŽ› ’•• ‘Ž— ‹Ž ž—Ž›ž’•’œŽ ‘Ž›Ž‹¢ ›Š—œ•Š’— ’—˜ ‘’‘Ž› Œ˜œœ ˜ ™›˜žŒ’— Ž•ŽŒ›’Œ’¢ Outline of Energy Policy 2007-2025 April 2007 6 2.3 Electricity Demand ˜Š• Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ’— ‘Ž ’œ•Š— ’— Šœ ‘ ¢›˜ Œ˜—›’‹ž’˜— Šœ ˜—•¢ ‘ Š‹˜ŸŽ ‘Ž ŠŸŽ›ŠŽ ‘¢›˜ Ž—Ž›Š’˜— ’— Š —˜›–Š• ¢ŽŠ› ’œ Š‹˜ž ‘ ‘Ž ›Ž–Š’—’— Šœ ‘Ž›–Š• ˜ž ˜ ‘’Œ‘ ‘ Šœ ›˜– ‘ŽŠŸ¢ žŽ• ˜’• ’— ’ŽœŽ• ™•Š—œ ‘ ›˜– ”Ž›˜œŽ—Ž ’— Šœ ž›‹’—Žœ ˜› ™ŽŠ” •˜™™’— ™›’—Œ’™Š••¢ ’— Ž–Ž›Ž—Œ¢ Œ˜—’’˜—œ ‘ ›˜– Œ˜Š• Š— ‘ ›˜– ‹ŠŠœœŽ ‘Ž Œ˜Š• Š— ‹ŠŠœœŽ ‹ŠœŽ Ž•ŽŒ›’Œ’¢ ›˜– œ ˜Š•Ž ‘  –Š¢ ‹Ž —˜Ž ‘Š ‘’œ ’—Œ•žŽ ˜—Ž Œ˜Š• ‹ŠœŽ œ œ‘˜ — ’— ™™Ž—’¡ ‘Ž ˜›ŽŒŠœ ˜ ‘Ž œ‘˜ œ ‘Š ’— Š‹˜ž ‘ ˜ Ž—Ž›¢ ˜ž• ‘ŠŸŽ ˜ ‹Ž Ž—Ž›ŠŽ ˜ –ŽŽ Ž–Š— ’‘ Š ™ŽŠ” ™˜ Ž› Ž–Š— ˜ –˜›Ž ‘Š— Œ˜–™Š›Ž ˜ ’— ‘’•Ž ‘Ž –Š¡’–ž– —’‘ •˜Š Ž–Š— ’œ Ž¡™ŽŒŽ ˜ ’—Œ›ŽŠœŽ ›˜– ’— ˜ ’— 2.4 Regulatory Framework ‘Ž Œž››Ž— ›Žž•Š˜›¢ ›Š–Ž ˜›” Œ˜—œ’œœ ˜ ‘Ž Œ Š— ‘Ž •ŽŒ›’Œ’¢ Œ Šœ Š–Ž—Ž ˜ ‹Ž ›Ž™•ŠŒŽ ‹¢ ‘Ž •ŽŒ›’Œ’¢ Œ ‘Ž› ›Ž•ŽŸŠ— •Ž’œ•Š’˜—œ ™Ž›Š’— ˜ ‘Ž žŠ› —žœ›¢ —Š–Ž•¢ ‘Ž žŠ› —žœ›¢ ’Œ’Ž—Œ¢ Œ Š–Ž—Ž ’— Š— ‘Ž —Ÿ’›˜—–Ž— ›˜ŽŒ’˜— Œ ˜ ŽŸŽ› ˜ ŠŽ ‘Ž Ž—Ž›¢ œŽŒ˜› ‘Šœ ‹ŽŽ— Œ‘Š›ŠŒŽ›’£Ž ‹¢ ‘Ž Š‹œŽ—ŒŽ ˜ Š— ’—Ž™Ž—Ž— ›Žž•Š˜› ‘Ž ›˜•Ž ˜ ›Žž•Š˜› ’œ ŽŽŒ’ŸŽ•¢ ’œŒ‘Š›Ž ‹¢ ‘Ž ™Š›Ž— ’—’œ›¢ —Š–Ž•¢ ‘Ž ’—’œ›¢ ˜ ž‹•’Œ ’•’’Žœ ˜ Š›Žœœ ‘’œ ’œœžŽ ‘Ž ’•’¢ Žž•Š˜›¢ ž‘˜›’¢ Œ Š— Š —Ž •ŽŒ›’Œ’¢ Œ ‘ŠŸŽ ‹ŽŽ— ™ŠœœŽ ’— Š— ›Žœ™ŽŒ’ŸŽ•¢ Ž—’— Ž Š–Ž—–Ž—œ ‘˜œŽ ™’ŽŒŽœ ˜ •Ž’œ•Š’˜— ’•• ‹Ž ™›˜Œ•Š’–Ž Šœ ™Ž› ‘Ž ’–ŽŠ‹•Ž ’— ‘Ž Œ’˜— •Š— ‘Ž žŠ› —žœ›¢ ’Œ’Ž—Œ¢ Œ ˜ ™›˜Ÿ’Žœ ‘Š ‘Ž›Ž •Š— Œ˜—ŸŽ›œ’˜— ’œ Š™™›˜ŸŽ ˜› ‘Ž œŽ’— ž™ ˜ Š ™˜ Ž› œŠ’˜— ’‘ Š ›ŠŽ ŒŠ™ŠŒ’¢ ˜ –ŽŠ Š ˜› –˜›Ž žœ’— ‹ŠŠœœŽ ˜› ˜‘Ž› Œ˜–™•Ž–Ž—Š›¢ Œ˜–‹žœ’‹•Žœ ˜› ‘Ž œž™™•¢ ˜ ’›– Ž•ŽŒ›’ŒŠ• ™˜ Ž› —˜ •Š— Œ˜—ŸŽ›œ’˜— Š¡ ’œ ™Š¢Š‹•Ž ˜ –ŽŽ ‘Ž ›˜ ’— Ž—Ž›¢ Ž–Š— ˜ŸŽ›—–Ž— ’œ Œž››Ž—•¢ ’—Š•’£’— Š Œ˜‘Ž›Ž— Ž—Ž›¢ ™˜•’Œ¢ ˜ Ž—Œ˜ž›ŠŽ ‘Ž Ž–Ž›Ž—ŒŽ ˜ —Ž ™›˜žŒŽ›œ œž™™•’Ž›œ ‘’•Ž ž••¢ ’—Ž›Š’— ‘Ž ›˜•Ž ˜ œžŠ› œŽŒ˜› Š— ‹’˜žŽ•œ ŽŸŽ•˜™–Ž— ˜— ‘Ž ‹Šœ’œ ˜ ŽŒ˜—˜–’Œ ’—Š—Œ’Š• Š— Ž—Ÿ’›˜—–Ž—Š• Š—Š•¢œŽœ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ’•• Ž—œž›Ž ›Š—œ™Š›Ž— ŽŒ’œ’˜— –Š”’— ˜— Š Œ˜–™Ž’’ŸŽ ‹Šœ’œ ‘Ž›Ž œž‹œ’’Žœ ’—ŒŽ—’ŸŽœ œ‘˜ž• ‹Ž •’–’Ž Outline of Energy Policy 2007-2025 April 2007 7 ˜ ‘Ž Ž—Ÿ’›˜—–Ž— ˜—•¢ Ž  ŒŠ›‹˜— Œ›Ž’œ 2.5 Reform of the Sugar Industry ‘Ž ŽŒ˜—˜–’Œ Œ˜—Ž¡ ‘Šœ ‹ŽŽ— ˜› Š •˜— ’–Ž ˜–’—ŠŽ ‹¢ ‘Ž žŠ› —žœ›¢ Š— ‘Ž œ™’— ˜œ ‘Ž›Ž˜ ˜ ŽŸŽ› ‘Ž Ÿ’Š‹’•’¢ ˜ ‘Ž žŠ› —žœ›¢ ’œ ‹Ž’— ‘›ŽŠŽ—Ž ‹¢ ‘Ž ›ŽžŒ’˜— ’— ‘Ž ™›’ŒŽ ˜ œžŠ› ’— ‘Ž Œ˜—Ž¡ ˜ ‘Ž Œ‘Š—Žœ ’— ‘Ž œžŠ› ›Ž’–Ž ’— ‘Ž ž›˜™ŽŠ— —’˜—  ’œ ‘Ž›Ž˜›Ž ŽœœŽ—’Š• ‘Š ‘Ž žŠ› —žœ›¢ ŠŠ™œ ˜ ‘Ž —Ž Œ˜—Ž¡ ’ ’ Š—œ ˜ œž›Ÿ’ŸŽ  ‘Šœ ‹ŽŽ— Š›ŽŽ ‘Š ‘Ž ›ŽžŒ’˜— ’— ‘Ž ™›’ŒŽ ˜ œžŠ› ’•• ‹Ž ŠŒŒ˜–™Š—’Ž ‹¢ œž™™˜› –ŽŠœž›Žœ ›˜– ‘Ž ž›˜™ŽŠ— —’˜— ˜ Š•• œžŠ› ™›˜žŒ’— Œ˜ž—›’Žœ ’—Œ•ž’— Šž›’’žœ ™›˜Ÿ’Ž ‘Š œžŒ‘ Œ˜ž—›’Žœ œž‹–’ ˜ ‘Ž Š Œ˜‘Ž›Ž— ›˜Š–Š™ ˜ –’’ŠŽ ‘Ž ŠŸŽ›œŽ ’–™ŠŒœ ˜ ‘Ž ™›’ŒŽ ›ŽžŒ’˜— — ‘’œ Œ˜—Ž¡ ‘Ž ’—’œ›¢ ˜ ›˜ —žœ›¢ Š— ’œ‘Ž›’Žœ ‘Šœ ™›Ž™Š›Ž Š ž•’ ——žŠ• Š™Š’˜— ›ŠŽ¢ ‘’Œ‘ ™›˜Ÿ’Žœ ˜› Š— ’—Œ›ŽŠœŽ ’— ‘Ž Š——žŠ• ™›˜žŒ’˜— ˜ Ž•ŽŒ›’Œ’¢ ›˜– ‹ŠŠœœŽ ›˜– ˜ ‘ Š— ‘Ž ™›˜žŒ’˜— ˜ œ˜–Ž –’••’˜— •’›Žœ ˜ Ž‘Š—˜• Š——žŠ••¢ ‘Ž ŠŒŒ˜–™Š—¢’— –ŽŠœž›Žœ Š›Ž ’Ž ˜ ŒŽ›Š’— ™›Ž Œ˜—’’˜—œ ’—Œ•ž’— Š–˜—œ ˜‘Ž›œ ‘Ž œž‹–’œœ’˜— ˜ Š Œ˜‘Ž›Ž— •˜— Ž›– Ž—Ž›¢ ™˜•’Œ¢ ˜› ‘Ž ™Ž›’˜ ‹¢ Ž— ˜ ¢ŽŠ› 2.6 Environment —Ÿ’›˜—–Ž—Š• ’œœžŽœ ‘ŠŸŽ Œ˜–Ž ˜ ‘Ž ˜›Ž ’— ›Ž•Š’˜— ˜ Ž—Ž›¢ ™˜•’Œ¢ –Š’—•¢ Šœ Š ›Žœž• ˜ •˜‹Š• Š›–’— ŒŠžœŽ ‹¢ ‘Ž Ž–’œœ’˜— ˜ ›ŽŽ— ‘˜žœŽ ŠœŽœ ‘›˜ž‘ ‘Ž Ž¡Ž—œ’ŸŽ ž—Š‹ŠŽ Š— ’—Ž’Œ’Ž— žœŽ ˜ ˜œœ’• žŽ•œ ‘’Œ‘ ŒŠ— ŒŠžœŽ Š ›’œŽ ’— œŽŠ •ŽŸŽ• Š— ˜‘Ž› Œ•’–Š’Œ Œ‘Š—Žœ Šž›’’žœ ‹Ž’— Š –Š•• œ•Š— ŽŸŽ•˜™’— ŠŽ ’œ Ÿž•—Ž›Š‹•Ž ˜ Š—¢ ›’œŽ ’— œŽŠ •ŽŸŽ• ‘’Œ‘ ŒŠ— ’— ž›— ŠŸŽ›œŽ•¢ ’–™ŠŒ ˜— ’œ ˜ž›’œ– ’—žœ›¢ ‘’Œ‘ ’œ Œ˜ŠœŠ• ‹ŠœŽ œ ›ŽŠ›œ ›Žœ‘ ŠŽ› ŠŸŠ’•Š‹’•’¢ Š ŽŒ›ŽŠœŽ ˜ ’— ‘Ž ŠŸŽ›ŠŽ Š–˜ž— ˜ ›Š’—Š•• ›ŽŒŽ’ŸŽ ‹¢ ‘Ž ’œ•Š— ‘Šœ Š•›ŽŠ¢ ‹ŽŽ— —˜Ž ˜ŸŽ› ‘Ž ™Šœ ŽŒŠŽ Š— ›˜ž— ŠŽ› ›Žœ˜ž›ŒŽœ –Š¢ ‹Ž ŠŸŽ›œŽ•¢ ’–™ŠŒŽ ‹¢ œŽŠ ŠŽ› ’—›žœ’˜— ŒŒ˜›’—•¢ Ž—Ÿ’›˜—–Ž—Š• ’œœžŽœ ‘ŠŸŽ Š ’›ŽŒ •’—”ŠŽ ’‘ Ž—Ž›¢ ™˜•’Œ¢  ’œ ‘Ž›Ž˜›Ž ‘Ž ž¢ Š— ›Žœ™˜—œ’‹’•’¢ ˜ ŽŒ’œ’˜— –Š”Ž›œ ˜ ˜›” ˜ Š›œ ŽŒ›ŽŠœ’— ŒŠ›‹˜— ’˜¡’Ž Ž–’œœ’˜—œ Ž’— Š œ’—Š˜›¢ ˜ ‘Ž ¢˜˜ ›˜˜Œ˜• Šž›’’žœ Šœ Š ŽŸŽ•˜™’— Œ˜ž—›¢ ‘Šœ —˜ Œ˜––’–Ž— ˜ ›ŽžŒŽ ’œ ›ŽŽ—‘˜žœŽ Šœ Ž–’œœ’˜—œ ž—Ž› ‘Ž ›˜˜Œ˜• ‘’Œ‘ ™›˜Ÿ’Žœ Outline of Energy Policy 2007-2025 April 2007 8 ˜—•¢ ˜› ŽŸŽ•˜™Ž Œ˜ž—›’Žœ ˜ ˜ œ˜ ˜ ŽŸŽ› Šœ Š œ–Š•• ’œ•Š— ŽŸŽ•˜™’— ŠŽ Šž›’’žœ ’œ ™Š›’Œž•Š›•¢ Ÿž•—Ž›Š‹•Ž ˜ ‘Ž ŽŽŒœ ˜ •˜‹Š• Š›–’— Œ•’–ŠŽ Œ‘Š—Ž Š— œŽŠ •ŽŸŽ• ›’œŽ — ‘’œ Œ˜—Ž¡ –’’Š’˜— Š— ŠŠ™Š’˜— –ŽŠœž›Žœ ‘’Œ‘ Š›Ž ’— •’—Ž ’‘ ‘Ž ›˜˜Œ˜• ˜‹“ŽŒ’ŸŽœ Š›Ž ‹Ž’— Š”Ž—  –Š¢ ‹Ž —˜Ž ‘Š Šœ ™Ž› ‘Ž —Ÿ’›˜—–Ž—Š• ›˜ŽŒ’˜— Œ ™˜ Ž› ™›˜“ŽŒœ Š›Ž Š•›ŽŠ¢ œž‹“ŽŒ ˜ ‘Ž ›Žšž’›Ž–Ž— ‘Š Š— —Ÿ’›˜—–Ž—Š• –™ŠŒ œœŽœœ–Ž— ›Ž™˜› ‹Ž ™›Ž™Š›Ž ˜› ˜‹Š’—’— ‘Ž Š™™›˜™›’ŠŽ •’ŒŽ—ŒŽ ‹Ž˜›Ž ’–™•Ž–Ž—Š’˜— 2.7 Renewable Energy Šž›’’žœ ‘Šœ •˜— ›ŽŒ˜—’£Ž ‘Ž —ŽŽ ˜ ’ŸŽ›œ’¢ ’œ Ž—Ž›¢ –’¡ ’— ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› Š Š¢ ›˜– ˜œœ’• žŽ•œ Šœ Š› Šœ ™˜œœ’‹•Ž ˜ ŠŽ Šž›’’žœ ™›˜žŒŽœ Š‹˜ž ˜ ’œ Ž•ŽŒ›’Œ’¢ ›˜– ›Ž—Ž Š‹•Ž ›Žœ˜ž›ŒŽœ ‘¢›˜ ’— Š— œžŠ› ŒŠ—Ž ‹ŠŠœœŽ Š— Šœ œžŒ‘ ’œ Š–˜— ˜—Ž ˜ ‘Ž ˜›• •ŽŠŽ›œ ’— ›Ž—Ž Š‹•Ž Ž—Ž›¢ žœŠŽ Šž›’’žœ ‘Šœ ’— ‘Ž ˜›– ˜ ŒŠ—Ž ‹’˜–Šœœ Š ŸŽ›¢ ™˜Ž— ŠœœŽ ‘’Œ‘ ’œ —˜ ¢Ž ž••¢ Š™™Ž  Š•• ŒŠœ‘ Œ›˜™œ œžŠ› ŒŠ—Ž ‹Žœ Šœœ’–’•ŠŽœ œ˜•Š› Ž—Ž›¢ ‹˜‘ ›˜– ‘Ž šžŠ•’Š’ŸŽ Š— šžŠ—’Š’ŸŽ ™Ž›œ™ŽŒ’ŸŽœ Ž› ˜——Žœ ˜ ŒŠ—Ž ™›˜žŒŽ ™Ž› ‘ŽŒŠ›Ž ˜——Žœ ˜ ŒŠ›‹˜— ’˜¡’Ž Š›Ž ’¡Ž — ‘’œ Š¢ ŽŠŒ‘ ¢ŽŠ› –’••’˜— ˜——Žœ ˜ Ž—Ÿ’›˜—–Ž— ›’Ž—•¢ ‹’˜–Šœœ Š›Ž ™›˜žŒŽ ’— ‘Ž ˜›– ˜ œžŠ› ŒŠ—Ž  ŒŠ—Ž ˜™œ Š— •ŽŠŸŽœ Š›Ž Œ˜—œ’Ž›Ž ‘Ž ‹’˜–Šœœ ’—Œ›ŽŠœŽœ ‹¢ œ˜–Ž ‘Ž Ž™Ž—Ž—ŒŽ ˜— ˜’• ˜› Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— Ž¡Œ•ž’— ›Š—œ™˜›Š’˜— Š— ’—žœ›¢ ‘Šœ ‹ŽŽ— ›ŽžŒŽ ˜ œ˜–Ž ˜Š¢ ‘›˜ž‘ Ž—‘Š—ŒŽ žœŽ ˜ ›Ž—Ž Š‹•Ž Ž—Ž›¢ œ˜ž›ŒŽœ œžŒ‘ Šœ –˜›Ž Ž’Œ’Ž— žœŽ ˜ ‹ŠŠœœŽ Š— ‘Ž žœŽ ˜ Œ˜Š• Šœ Š Œ˜–™•Ž–Ž—Š›¢ žŽ• ˜ ‹ŠŠœœŽ ž›’— ‘Ž œžŠ›ŒŠ—Ž ˜ Œ›˜™ œŽŠœ˜— ‘Ž œ‘Š›Ž ˜ ‹ŠŠœœŽ ’— ˜Š• Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ’œ —˜ Š‹˜ž ‘Š ˜ Œ˜Š• Š‹˜ž Š— ‘¢›˜ —˜›ž—ŠŽ•¢ Šž›’’žœ ’œ ˜Š••¢ Ž™Ž—Ž— ˜— ˜’• ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› 2.8 Hydropower ¢›˜™˜ Ž› ™˜Ž—’Š• ‘Šœ ‹ŽŽ— Š•–˜œ ž••¢ Š™™Ž ’— Šž›’’žœ Š— ‘Ž›Ž Š›Ž ŸŽ›¢ Œ˜–™Ž’’ŸŽ žœŽœ ˜ ‘Ž Ž¡’œ’— ŠŽ› ›Žœ˜ž›ŒŽœ ‘Ž›Ž Š›Ž —’—Ž ‘¢›˜™˜ Ž› ™•Š—œ ’‘ Š Œ˜–‹’—Ž ’—œŠ••Ž ŒŠ™ŠŒ’¢ ˜ ˜ ŽŸŽ› žŽ ˜ œŽŠœ˜—Š• ›Š’— Œ˜—’’˜—œ Š— •’–’Ž œ˜›ŠŽ ŒŠ™ŠŒ’¢ ˜—•¢ ‘›ŽŽ ˜ ‘Ž ‘¢›˜ ™•Š—œ ŒŠ— Ž—Ž›ŠŽ Š•• ¢ŽŠ› ›˜ž— ž›’— ™ŽŠ” ‘˜ž›œ ‘’•œ ‘Ž ˜‘Ž› œ’¡ Ž—Ž›ŠŽ Šœ Š— ‘Ž— ŠŽ› ’œ ŠŸŠ’•Š‹•Ž –˜œ•¢ ž›’— ‘Ž ™Ž›’˜ Š—žŠ›¢ ˜ Š›Œ‘ ŸŽ›ŠŽ ‘¢›˜ ŽŽŒ’ŸŽ ŒŠ™ŠŒ’¢ ŠŸŠ’•Š‹•Ž ’œ Š‹˜ž Outline of Energy Policy 2007-2025 April 2007 9 2.9 Bagasse ’˜–Šœœ žœŽ ˜› Ž—Ž›Š’— Ž•ŽŒ›’Œ’¢ Œ˜—œ’œœ ŽœœŽ—’Š••¢ ˜ ‹ŠŠœœŽ ‘Ž •ŠŽ› ’œ ‘Ž –˜œ ™•Ž—’ž• ™›’–Š›¢ Ž—Ž›¢ ›Žœ˜ž›ŒŽ žœŽ ‹¢ ‘Ž œžŠ› ’—žœ›¢ ˜ –ŽŽ Š•• ’œ Ž—Ž›¢ ›Žšž’›Ž–Ž—œ ’— Ž›–œ ˜ ‘ŽŠ Š— Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— — Š’’˜— œž›™•žœ ™˜ Ž› ›˜– ‹ŠŠœœŽ ’œ Ž ’—˜ ‘Ž —Š’˜—Š• ›’ ‘Ž›Ž ’œ œ’•• Š ™˜Ž—’Š• ˜ ’—Œ›ŽŠœŽ ‹ŠŠœœŽ ‹ŠœŽ Ž•ŽŒ›’Œ’¢ ‘›˜ž‘ ‘Ž ˜—˜’— ŠŒŒŽ•Ž›ŠŽ ŒŽ—›Š•’£Š’˜— ™›˜›Š––Ž ˜ ‘Ž œžŠ› ’—žœ›¢ ’— ‘Ž Š”Ž ˜ ‘Ž ›ŽžŒ’˜— ˜ ‘Ž ™›’ŒŽ ˜ œžŠ› ˜••˜ ’— ‘Ž ›Ž˜›– ‹¢ ‘Ž ˜ ’œ œžŠ› ›Ž’–Ž ‘Ž ™›˜›Š––Ž ’•• Ž—Š’• ’—ŸŽœ–Ž—œ ’— –˜›Ž Ž’Œ’Ž— Ž—Ž›¢ Œ˜—ŸŽ›œ’˜— ŽŒ‘—˜•˜’Žœ Š— ’— Ž—Ž›¢ Œ˜—œŽ›ŸŠ’˜— –ŽŠœž›Žœ ’— ŒŠ—Ž ™›˜ŒŽœœ’— Table 2.1: Amount of Electricity produced from Bagasse Žœ’Žœ œžŠ› ™›˜žŒ’˜— Ž—Ž›¢ Ž—Ž›Š’˜— ›˜– ‹ŠŠœœŽ Œ˜–™•Ž–Ž—Ž ‹¢ Œ˜Š• ‘Šœ ‹ŽŽ— Š –Š“˜› ŠŒ’Ÿ’¢ ˜ ‘Ž œžŠ› ’—žœ›¢ œ’—ŒŽ ‘Ž –’ œ ‹˜ž ˜ ’—ŸŽœ–Ž—œ ’— Š ¢™’ŒŠ• œžŠ› ŠŒ˜›¢ Š›Ž •’—”Ž ˜ ‘Ž ‹˜’•Ž› Š— ‘Ž ž›‹˜ Š•Ž›—Š˜› ‘Ž œ ’— ‘Ž ’—žœ›¢ ‘ŠŸŽ ‹ŽŽ— –Š”’— œžŒ‘ ’—ŸŽœ–Ž—œ ‘›˜ž‘ ™˜ Ž› Ž—Ž›Š’˜— ™›˜“ŽŒœ ˜› œž™™•¢ ˜ Ž•ŽŒ›’Œ’¢ ’—˜ ‘Ž —Š’˜—Š• ›’ žŒ‘ œ ’—Œ•žŽ Š— ŠŸ ‘Ž •ŠŽ› ’•• Œ˜–Ž ’—˜ ˜™Ž›Š’˜— ’— — œžŒ‘ Š— Š››Š—Ž–Ž— ‘Ž œžŠ› ŠŒ˜›¢ ˜‹Š’—œ œŽŠ– Š— Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž ˜› ’œ ˜™Ž›Š’˜— ›ŽŽ Š— ’— ›Žž›— ‘Ž ™˜ Ž› ™•Š— ˜‹Š’—œ ‘Ž ‹ŠŠœœŽ ™›˜žŒŽ ŠŽ› ‘Ž –’••’— ˜ ŒŠ—Žœ ˜› ›ŽŽ ‘’œ ‘Šœ ‹ŽŽ— ‘Ž œ›ŠŽ¢ ˜ ‘Ž œžŠ› ’—žœ›¢ ˜ ˜™’–’£Ž ‘Ž žœŽ ˜ ‹ŠŠœœŽ ˜› ™˜ Ž› Ž—Ž›Š’˜— Œ˜–™•Ž–Ž—Ž ’‘ Œ˜Š• ’— •’—Ž ’‘ ‘Ž ŠŠœœŽ —Ž›¢ ŽŸŽ•˜™–Ž— ›˜›Š––Ž œ’—ŒŽ  ‘Ž œŠ–Ž ’–Ž ‘Ž œžŠ› ŠŒ˜›’Žœ ‘Š ‘Ž ˜™™˜›ž—’¢ ˜ –˜Ž›—’£Ž ‘Ž’› –’••’— ’—›Šœ›žŒž›Ž ’— Š’’˜— ˜ ’ŸŽ›œ’¢’— ‘Ž’› ›ŽŸŽ—žŽ ›˜– ‘Ž œŠ•Ž ˜ Ž•ŽŒ›’Œ’¢ ˜ ‘Ž ˜› ˜— Š› œŠ•Ž ˜ Œ˜—œž–Ž›œ — Ž—Ÿ’›˜—–Ž—Š• Ž›–œ ’ –Š¢ ‹Ž —˜Ž ‘Š ˜—Ž ˜ ‘Ž ™˜œ’’ŸŽ Šœ™ŽŒœ ˜ ‹ŠŠœœŽ ’œ ‘Š ’œ Šœ‘ Œ˜—Ž— ’œ •Žœœ ‘Š— ‘Š ˜ Œ˜Š• Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Electricity to grid (GWh) 119.0 124.6 194.3 188.5 278.5 296.5 299.1 296.1 317.9 301.6 Outline of Energy Policy 2007-2025 April 2007 10 2.10 Solar Energy ‘Ž Œ˜œ ˜ Ž—Ž›Š’— Ž•ŽŒ›’Œ’¢ ›˜– œ˜•Š› Ž—Ž›¢ ’œ œ’•• ž—ŠŸ˜ž›Š‹•Ž ‘Ž— Œ˜–™Š›Ž ˜ ˜‘Ž› Œ˜—ŸŽ—’˜—Š• Š— ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ Žœ™’Ž ‘Ž ™›˜›Žœœ’ŸŽ ›ŽžŒ’˜— ’— ‘Ž Œ˜œ ˜ ‘Ž ŽŒ‘—˜•˜¢ ’— ‘Ž •Šœ ŽŒŠŽ ‘Ž žœŽ ˜ œ˜•Š› Ž—Ž›¢ ’œ —˜ ˜—•¢ ŠŒ‘’ŽŸŽ ‘›˜ž‘ ’œ Œ˜—ŸŽ›œ’˜— ˜ Ž•ŽŒ›’Œ’¢ ‹ž Š•œ˜ ‘›˜ž‘ Œ˜—ŸŽ›œ’˜— ˜ ‘ŽŠ Ž—Ž›¢ Š— žœŽ ‘Ž›Ž˜ œžŒ‘ Šœ ’— œ˜•Š› ŠŽ› ‘ŽŠŽ›œ ‘˜œŽ ž’•’£Š’˜— ’œ ŠŒ’ŸŽ•¢ Ž—Œ˜ž›ŠŽ ‹¢ ˜ŸŽ›—–Ž— ‘Ž ŽŸŽ•˜™–Ž— Š—” ˜ Šž›’’žœ ™›˜Ÿ’Žœ Š— Š›ŠŒ’ŸŽ ›ŠŽ ˜ ’—Ž›Žœ ˜› •˜Š—œ ›Ž•Š’— ˜ ‘Ž ™ž›Œ‘ŠœŽ ˜ œ˜•Š› ŠŽ› ‘ŽŠŽ›œ ˜ ŽŸŽ› ’ ’œ Žœ’–ŠŽ ‘Š ˜—•¢ œ˜–Ž ‘˜žœŽ‘˜•œ ›˜– Š ˜Š• ˜ Š‹˜ž žœŽ œ˜•Š› ŠŽ› ‘ŽŠŽ›œ ˜› ˜–Žœ’Œ ŠŽ› ‘ŽŠ’— ‘Ž ’—’œ›¢ ˜ ž‹•’Œ ’•’’Žœ ’œ Œž››Ž—•¢ Œ˜—žŒ’— Š ‘˜žœŽ‘˜• Š’žŽ œž›ŸŽ¢ ˜ ŽŽ›–’—Ž ‘Ž ›ŽŠœ˜—œ ˜› œžŒ‘ •˜ ™Ž—Ž›Š’˜— ˜ œ˜•Š› ŠŽ› ‘ŽŠŽ›œ ’— ‘Ž –Š›”Ž ŠœŽ ˜— ‘Ž ’—’—œ ›˜– ‘Ž œž›ŸŽ¢ Š™™›˜™›’ŠŽ –ŽŠœž›Žœ ’•• ‹Ž Žœ’—Ž Š— ™ž ’— ™•ŠŒŽ ˜ ž›‘Ž› ™›˜–˜Ž ‘Ž žœŽ ˜ œ˜•Š› ŠŽ› ‘ŽŠŽ›œ ’— ‘Ž Œ˜ž—›¢ ’—Œ•ž’— ˜› Œ˜––Ž›Œ’Š• Š— ’—žœ›’Š• žœŽœ ’‘ ŠŽ—Š— ‹Ž—Ž’œ ’— Ž›–œ ˜ ™›˜™˜›’˜—ŠŽ œž‹œ’ž’˜— ˜ Ž•ŽŒ›’Œ’¢ Š— Šœ ‘˜˜Ÿ˜•Š’Œ ŽŒ‘—˜•˜¢ ’œ Šœ ŽŸ˜•Ÿ’— Š— ’œ ’–™ŠŒ ˜— ‘Ž Œ˜ž—›¢ œ Ž—Ž›¢ ™˜•’Œ¢ ’–Ž›Š–Ž ŒŠ——˜ ‹Ž —Ž•ŽŒŽ — ‘Ž ˜›• ™›˜žŒ’˜— ˜ ™‘˜˜Ÿ˜•Š’Œ –˜ž•Žœ Šœ ›˜– Ž— ¢ŽŠ›œ ŽŠ›•’Ž› ŸŽ› ‘Ž œŠ–Ž ™Ž›’˜ ‘Ž ŠŸŽ›ŠŽ –˜ž•Ž ™›’ŒŽ ‘Šœ ŽŒ›ŽŠœŽ ›˜– Š ˜ Š  ’œ Ž¡™ŽŒŽ ‘Ž ™›’ŒŽ ’•• Š•• ˜ — ž›‘Ž› ˜ –Š”Ž ™‘˜˜Ÿ˜•Š’Œœ Š œŽ›’˜žœ ˜™’˜— ’— ‘Ž ’–Ž ‘˜›’£˜— ‘Ž ŠŸŽ›ŠŽ Š’•¢ œž—œ‘’—Ž Ž—œ’¢ ˜ Šž›’’žœ Šœ ˜ ‘’œ ŠŸŠ—ŠŽ 2.11 Wind Energy Šž›’’žœ ’œ ˜› ‘Ž –Š“˜› ™Š› ˜ ‘Ž ¢ŽŠ› Ž¡™˜œŽ ˜ ’—¢ Œ˜—’’˜—œ ˜ ‘Ž ˜ž‘ Šœ ›ŠŽ ’—œ Š— ’ ’œ ‘Ž›Ž˜›Ž Œ˜—žŒ’ŸŽ ˜› ’— Ž—Ž›¢ Ž¡™•˜’Š’˜— ‘Ž ’— ›Ž’–Ž ’— œ˜–Ž Š›ŽŠœ ‘Šœ Š— Š——žŠ• ŠŸŽ›ŠŽ œ™ŽŽ ˜ – œ Š – Š‹˜ŸŽ ›˜ž— •ŽŸŽ• ’•˜ ™›˜“ŽŒœ ’— ‘Ž –’ œ Ž›Ž —˜ œžŒŒŽœœž• Šœ ‘Ž ’— ž›‹’—Žœ Ž›Ž Š–ŠŽ ‹¢ Œ¢Œ•˜—Žœ ŠŽ› Š‹˜ž  ˜ ¢ŽŠ›œ ˜ ˜™Ž›Š’˜— ‘Ž ›ŽŒŽ— ™’•˜ ™›˜“ŽŒ ’— ˜›’žŽœ Œ˜–™›’œ’— ‘›ŽŽ ’— ž›‹’—Žœ ŽŠŒ‘ ˜ Š ŒŠ™ŠŒ’¢ ˜ ” ‘Šœ ™›˜ŸŽ ˜ ‹Ž Š œžŒŒŽœœ — ‘Ž •’‘ ˜ ‘’œ Ž¡™Ž›’Ž—ŒŽ Š— ’ŸŽ— ‘Ž Œ˜—œ’Ž›Š‹•Ž ™›˜›Žœœ ’— ‘Ž Žœ’— ˜ ž›‹’—Žœ Outline of Energy Policy 2007-2025 April 2007 11 ˜ŸŽ›—–Ž— ’œ œŽ›’˜žœ•¢ ›Ž Œ˜—œ’Ž›’— ˜ žœŽ ‘’œ ›Ž—Ž Š‹•Ž œ˜ž›ŒŽ ˜ Ž—Ž›¢ ˜— Š •Š›Ž› œŒŠ•Ž ’— Šž›’’žœ ŽŒ‘—˜•˜’ŒŠ• ™›˜›Žœœ ’— ‘Ž ’— Ž—Ž›¢ ‘Šœ Ž—Š‹•Ž Š ˜• ’—Œ›ŽŠœŽ ’— ‘Ž ™˜ Ž› ˜ ’— ž›‹’—Žœ ›˜– ” ˜ ž—’œ ’— ¢ŽŠ›œ Š— ›ŽžŒŽ Œ˜œœ ‹¢ ’‘ ž›˜™Ž Š˜™’— Š ›ŽŽ— ™˜•’Œ¢ ’— Ž—Ž›¢ ™›˜žŒ’˜— ˜—Ž ˜ž• Ž¡™ŽŒ –Š“˜› ŽŒ‘—˜•˜’ŒŠ• ‹›ŽŠ”‘›˜ž‘œ ’— ’— Ž—Ž›¢ ’‘ ‘’‘Ž› Œ˜œ ›ŽžŒ’˜—œ ’— ¢ŽŠ›œ ˜ Œ˜–Ž ˜ ŽŸŽ› ’ŸŽ— ‘Š ’— Ž—Ž›¢ ŠŸŠ’•Š‹’•’¢ ’œ ‘’‘•¢ ŸŠ›’Š‹•Ž œžŒ‘ Ž—Ž›¢ ‘Šœ ˜ ‹Ž ™›˜Ÿ’Ž Š ‘Ž –Š›’—Š• Œ˜œ ˜ ‘Ž ‘’Œ‘ ’œ Š Œ˜—œ›Š’— ‘Ž Œ˜—œ›Š’— ŒŠ— ‹Ž ˜ŸŽ›Œ˜–Ž ’ ’— Ž—Ž›¢ ™›˜“ŽŒœ ‘ŠŸŽ ŠŽšžŠŽ ž—’— ’— Ž›–œ ˜ ›Š— ˜ –ŽŽ ™Š› ˜ ‘Ž ’—’’Š• ’—ŸŽœ–Ž— ’‘’— ‘Ž ›Š–Ž ˜›” ˜ ‹’•ŠŽ›Š• Š›ŽŽ–Ž—œ ’‘ ›’Ž—•¢ Œ˜ž—›’Žœ ˜ŸŽ›—–Ž— ‘Šœ œ˜ž‘ Š— ˜‹Š’—Ž ‘Ž Šœœ’œŠ—ŒŽ ˜ ‘Ž ˜ŸŽ›—–Ž— ˜ —’Š ‘’Œ‘ ’œ ˜—Ž ‘Ž Ž Œ˜ž—›’Žœ ’— ‘Ž ŽŸŽ•˜™’— ˜›• ‘Š ‘Šœ –ŠŽ ›ŽŠ œ›’Žœ ’— ‘Ž žœŽ ˜ ’— ™˜ Ž› œ Šœœ’œŠ—ŒŽ ˜ž• ‹Ž ’—ŽŽ ŸŽ›¢ ŸŠ•žŠ‹•Ž ˜ ’ŸŽ ‘Ž –žŒ‘ —ŽŽŽ ‹˜˜œ ˜ ‘Ž Š™™•’ŒŠ’˜— ˜ ‘Ž ’— ŽŒ‘—˜•˜¢ ’— Šž›’’žœ ˜ ‘Š ŽŽŒ Š Ž–˜›Š—ž– ˜ —Ž›œŠ—’— ‘Šœ ‹ŽŽ— œ’—Ž ’‘ ‘Ž ˜ŸŽ›—–Ž— ˜ —’Š ˜› ›Ž—Ž Š‹•Ž Ž—Ž›¢ ŽŸŽ•˜™–Ž— ’— Šž›’’žœ Š— ž—Ž› ‘’Œ‘ Šž›’’žœ ’•• ’—Ž› Š•’Š ‹Ž—Ž’ ›˜– œžŒ‘ ŽŒ‘—’ŒŠ• Šœœ’œŠ—ŒŽ ’— Ž›–œ ˜ Š™™›˜™›’ŠŽ œž’Žœ žŒ‘ ’—’’Š’ŸŽœ Š›Ž Ž¡™ŽŒŽ ˜ œ‘Š™Ž ž™ ’‘ ˜—˜’— ’œŒžœœ’˜—œ ‹Ž ŽŽ— ‘Ž Š— Š ™›’ŸŠŽ —’Š— Œ˜–™Š—¢ ’‘’— ‘Ž ›Š–Ž ˜›” ˜ ‘Ž ‘Ž ’œŒžœœ’˜—œ ›Ž•ŠŽ ˜ ‘Ž œŽ’— ž™ ˜ Š ’— Š›– ˜ ’— ‘Ž ›Ž’˜— ˜ ’Š›Š  ’œ Ž¡™ŽŒŽ ‘Š Š‹˜ž ˜ Ž•ŽŒ›’Œ’¢ ›Žšž’›Ž–Ž—œ Œ˜ž• ‹Ž –Ž ›˜– ‘’œ ™›˜“ŽŒ 2.12 Energy from Waste ‘Ž ŠœŽ ˜ Ž—Ž›¢ Ž—Ž›Š’˜— ’œ ™Š› ˜ ‘Ž œ˜•’ ŠœŽ –Š—ŠŽ–Ž— ™˜•’Œ¢ ˜ ˜ŸŽ›—–Ž— ˜ ›Ž•’ŽŸŽ ‘Ž Š›Ž ‘’Œ˜œŽ •Š—’•• ˜•’ ŠœŽ ™˜•’Œ¢ –Š—ŠŽ–Ž— ™˜•’Œ¢ Šœ ž’Ž ‹¢ ‘Ž ŽŠœ’‹’•’¢ ž¢ ™›Ž™Š›Ž ‹¢ Ž¡Ž›—Š• Œ˜—œž•Š—œ ž—’• ’‘ ‘Ž ’œœžŠ—ŒŽ ˜ ‘Ž •ŽŽ›œ ˜ ’—Ž— ˜ Š ™›˜–˜Ž› ˜› —Œ’—Ž›Š’˜— ˜ ŠœŽ ˜ Ž—Ž›¢ Š— ˜› Š Œ˜–™˜œ’— ŠŒ’•’¢ ‘Ž›Ž ‘Šœ ‹ŽŽ— Š œ‘’ ’— ™˜•’Œ¢ ‘’•Ž ‘Ž Œ˜œ ˜ ™›˜žŒ’— Ž•ŽŒ›’Œ’¢ ›˜– ŠœŽ ’•• ‹Ž ‘’‘Ž› ’ ‘Šœ ˜ ‹Ž —˜Ž ‘Š œžŒ‘ Œ˜œœ Š”Ž ’—˜ ŠŒŒ˜ž— Ž¡Ž›—Š•’’Žœ ’— ŠœŽ ›ŽŠ–Ž— œžŒ‘ Šœ Ž—Ÿ’›˜—–Ž—Š• Œ˜œœ ‘’Œ‘ Š›Ž —˜ ŠŒŒ˜ž—Ž ˜› ’— •Š—’••œ ŒŒ˜›’—•¢ ˜ŸŽ›—–Ž— ‘Šœ ŽŒ’Ž ‘Š ‘Ž —ŽŒŽœœŠ›¢ Ž˜› ˜ –ŽŽ ’œ Ž—Ÿ’›˜—–Ž—Š• Œ˜––’–Ž—œ ˜ Š›œ ‘Ž ™˜™ž•Š’˜— ’•• ‹Ž –ŠŽ ‘’•Ž Outline of Energy Policy 2007-2025 April 2007 12 Ž—Š‹•’— ‘Ž ˜ ™ž›Œ‘ŠœŽ Ž•ŽŒ›’Œ’¢ Š Š Œ˜–™Ž’’ŸŽ ™›’ŒŽ Šœ Œ˜–™Š›Ž ˜ ’œ ˜ — ™›˜žŒ’˜— Œ˜œ Š— ‘˜œŽ ˜ œ ‘Ž ™›˜™˜œŽ ŠœŽ ˜ Ž—Ž›¢ ™•Š— Š Š ‘Šž–’Ž›Ž ’— ‘Ž Žœ ˜ ‘Ž ’œ•Š— ’•• ‘ŠŸŽ Š ŒŠ™ŠŒ’¢ ˜ 2.13 Energy Used in Transportation Sector — ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› Œ˜—œž–Ž ˜——Žœ ˜ Šœ˜•’—Ž ˜——Žœ ˜ ’ŽœŽ• Š— ˜——Žœ ˜ ŠŸ’Š’˜— žŽ•  –Š¢ ‹Ž —˜Ž ‘Š ˜ ™›’–Š›¢ Ž—Ž›¢ Œ˜—œž–™’˜— ’œ Š›’‹žŠ‹•Ž ˜ ‘Ž ›Š—œ™˜› œŽŒ˜› Šž›’’žœ ’œ ‘ŽŠŸ’•¢ Ž™Ž—Ž— ˜— ˜’• ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ‘˜ž‘ œ˜–Ž ŸŽ‘’Œ•Žœ žœŽ Šœ Ž•• ‘Ž ™˜› –ŠœŽ›™•Š— Žœ’–ŠŽ ‘Ž •˜— Ž›– ’–™˜›Š’˜—œ ˜ ˜œœ’• žŽ•œ Šœ ˜••˜ œ PROJECTI ON MASTER PLAN 2002-25 (Medium Case): ŽŠ› žŽ• ˜Šœ ž—•ŽŠŽ Šœ ’• ’ŽœŽ• žŽ• ’• žŽ• ’• 2.14 Biofuels — Šž›’’žœ ‹’˜žŽ•œ ž—Ž› Œ˜—œ’Ž›Š’˜— Š›Ž ˜  ˜ ¢™Žœ —Š–Ž•¢ Ž‘Š—˜• ‘’Œ‘ ŒŠ— ‹Ž •˜ŒŠ••¢ ™›˜žŒŽ ›˜– –˜•ŠœœŽœ Š— ‹’˜’ŽœŽ• –ŠŽ ›˜– ™Š•– ˜’• ‘’Œ‘ ‘Šœ ˜ ‹Ž ’–™˜›Ž ’˜žŽ•œ ‘ŠŸŽ Š›ŠŒŽ ŠŽ—’˜— œ’—ŒŽ ‘Ž Œ˜ž—›¢ ‘Šœ Ž–‹Š›”Ž ˜— ‘Ž ™›˜žŒ’˜— ˜ Ž‘Š—˜• ›˜– –˜•ŠœœŽœ ˜— Š •Š›Ž œŒŠ•Ž —’• —˜ Ž‘Š—˜• ‘Šœ ‹ŽŽ— ™›˜žŒŽ Ž’‘Ž› ˜› Ž¡™˜› ˜› ˜› žœŽ ’— –Š—žŠŒž›Ž ˜ ›ž– ’‘ ‘Ž •Š›’— ž™ ˜ ˜’• ™›’ŒŽœ ˜ŸŽ› ‘Ž ™Ž›’˜ ˜ Ž‘Š—˜• ’œ ‹ŽŒ˜–’— Š Ÿ’Š‹•Ž Š•Ž›—Š’ŸŽ ˜ Šœ˜•’—Ž ˜› žœŽ ’— ŒŠ›œ Šœ ŽŸ’Ž—ŒŽ ‹¢ ‘Ž œžŒŒŽœœž• Ž¡™Ž›’Ž—ŒŽ ˜ Œ˜ž—›’Žœ œžŒ‘ Šœ ›Š£’• ‘Š—˜• ™›˜žŒ’˜— ’‘ –˜•ŠœœŽœ Šœ ŽŽœ˜Œ” ’œ Œž››Ž—•¢ ŒŠ››’Ž ˜ž ‹¢ ‘›ŽŽ Ž—’’Žœ ’— Šž›’’žœ —Š–Ž•¢ ŽŠž •Š— •Œ˜’œ Š— Ž’—Ž ˜ Š› –’••’˜— •’›Žœ ˜ ‘¢›˜žœ Ž‘Š—˜• ‘ŠŸŽ ‹ŽŽ— ™›˜žŒŽ Š— Ž¡™˜›Ž ˜ŸŽ› ‘Ž ™Ž›’˜ ˜  –Š¢ Š•œ˜ ‹Ž —˜Ž ‘Š Š— —’Š— ’›– ’œ Œž››Ž—•¢ Outline of Energy Policy 2007-2025 April 2007 13 œŽ’— ž™ ˜ Š —Ž Ž‘Š—˜• –Š—žŠŒž›’— ŠŒ˜›¢ Š ˜Œ‘Ž ˜’œ ‘Ž ŠŒ’•’¢ ˜ž• žœŽ •ŠŽœ ŽŒ‘—˜•˜¢ ˜ ’œ™˜œŽ ‹¢ ™›˜žŒœ ›˜– Ž›–Ž—Š’˜— ˜ –˜•ŠœœŽœ — Š ˜—’˜›’— ˜––’ŽŽ Šœ œŽ ž™ ‹¢ ˜ŸŽ›—–Ž— ˜ •˜˜” ’—˜ ‘Ž Œ˜œ ŽŽŒ’ŸŽ—Žœœ ˜ žœ’— ’— Šž›’’žœ ˜••˜ ’— ‘Ž ’—’’Š’ŸŽ ˜ Š ™›’ŸŠŽ ™›˜–˜Ž› ‘˜ ™›˜™˜œŽ ˜ Žœ ’— ŒŠ›œ ¡™Ž›’–Ž—œ ‘ŠŸŽ ‹ŽŽ— ŒŠ››’Ž ˜ž žœ’— ’–™˜›Ž Š—‘¢›˜žœ Ž‘Š—˜• ˜ Žœ ‘Ž ™˜œœ’‹’•’¢ ˜ ’—›˜žŒ’— Š –’¡ ˜ Ž‘Š—˜• ’‘ Šœ˜•’—Ž ’—œŽŠ ˜ Šœ˜•’—Ž ’— ŒŠ›œ ‘’œ ˜ž• ŽŽŒ’ŸŽ•¢ ›ŽžŒŽ ‘Ž ’–™˜› ˜ Šœ˜•’—Ž ‹¢ Š‹˜ž ˜——Žœ Š——žŠ••¢ ‘Ž ˜––’ŽŽ ˜ž• œž‹–’ ’œ ›ŽŒ˜––Ž—Š’˜—œ ‹¢ Ž— Š— ŽŒ’œ’˜— Š”Ž— ‹¢ –’  –Š¢ ‹Ž —˜Ž ‘Š Š ›ŠŽ’Œ —Ÿ’›˜—–Ž—Š• œœŽœœ–Ž— ’œ ‹Ž’— ž—Ž›Š”Ž— ˜› ‘Ž ž•’ ——žŠ• Š™Š’˜— ›ŠŽ¢  ’œ Ž¡™ŽŒŽ ‘Š ›ŽŒ˜––Ž—Š’˜—œ ’•• ‹Ž –ŠŽ Œ˜—ŒŽ›—’— ‘Ž ’œ™˜œŠ• ˜ ŠœŽœ Š›’œ’— ˜ž ˜ Ž‘Š—˜• ™›˜žŒ’˜— Žœ™ŽŒ’Š••¢ Ÿ’—ŠœœŽ Š— Œ˜—ŒŽ—›ŠŽ –˜•ŠœœŽœ œ˜•ž’˜— Š”’— ’—˜ Œ˜—œ’Ž›Š’˜— Ž—Ÿ’›˜—–Ž—Š• ’–™•’ŒŠ’˜—œ — Ž›–œ ˜ ’ŽœŽ• ‘Ž ™˜œœ’‹’•’¢ ˜ ’—›˜žŒ’— ‹’˜ ’ŽœŽ• ’œ ‹Ž’— Ž¡™•˜›Ž ‘Ž ‘’‘Ž› Œ˜—œž–™’˜— ˜ ’ŽœŽ• Š••˜ œ ˜› Š ›ŽŠŽ› ™˜Ž—’Š• ˜› ‘Ž ›Ž™•ŠŒŽ–Ž— ˜ ’ŽœŽ• ‹¢ ‹’˜ ’ŽœŽ• Š— ™˜Ž—’Š••¢ Š ›ŽŠŽ› ’–™ŠŒ ‘Š— ‘Ž ™›˜›Š––Ž ˜›Ž˜ŸŽ› ŸŠ›’˜žœ ™›˜–˜Ž›œ ‘ŠŸŽ Š™™›˜ŠŒ‘Ž ˜ŸŽ›—–Ž— ˜ œŽŒž›Ž Š— Š›ŽŽ–Ž— ˜› ˜ŸŽ›—–Ž— ˜ ™ž›Œ‘ŠœŽ ‹’˜’ŽœŽ• –ŠŽ ›˜– ™Š•– ˜’• ˜ŸŽ›—–Ž— ‘Šœ Š›ŽŽ ˜ ‘Ž ’—›˜žŒ’˜— ˜ ‹’˜’ŽœŽ• ˜ ‹Ž žœŽ ˜— ‘Ž •˜ŒŠ• –Š›”Ž Š— Š ™’•˜ ™›˜“ŽŒ ˜› Žœ’— ’ ’— ’ŽœŽ• Ž—’—Žœ ˜ ŽŸŽ› ž—•’”Ž ˜› —˜ Žœ’— ˜ ‹’˜’ŽœŽ• žœŽ ’— ŸŽ‘’Œ•Žœ ‘Šœ ‹ŽŽ— ŽŽŒŽ 2.15 Energy Efficiency and Conservation —Ž›¢ Ž’Œ’Ž—Œ¢ ‘Šœ ›ŽŒŽ—•¢ ‹ŽŽ— Š— ’—Ž›ŠŽ Œ˜–™˜—Ž— ˜ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ˜ ‘Ž Œ˜ž—›¢ ›Ž™Š›Š˜›¢ ˜›” ˜— Š— —Ž›¢ ’Œ’Ž—Œ¢ ’•• ’œ ˜—˜’— ‘Ž Ž—Ž›¢ Ž’Œ’Ž—Œ¢ ‹’•• ’•• •˜˜” ’—˜ Ž—Ž›¢ Ž’Œ’Ž—Œ¢ œŠ—Š›œ ˜› Š™™•’Š—ŒŽœ ‹ž’•’—œ ŸŽ‘’Œ•Žœ ŽŒ ˜›Ž˜ŸŽ› Š— Ž—Ž›¢ œŠŸ’—œ ŒŠ–™Š’— Šœ •Šž—Œ‘Ž ’— ‹¢ ˜ŸŽ›—–Ž— ’— ‘Ž Š”Ž ˜ ‘Ž œžœŠ’—Ž ‘’‘ ™›’ŒŽ ˜ ˜’•  ’œ ‘Ž Ÿ’œ’˜— ˜ ˜ŸŽ›—–Ž— ‘Š Šž›’’žœ ŽŸ˜•ŸŽœ ’—˜ Š— Ž—Ž›¢ Ž’Œ’Ž— ŽŒ˜—˜–¢ 2.16 Summary ‘Ž Ž—Ž›¢ œŽŒ˜› ’œ Œ‘Š›ŠŒŽ›’£Ž ‹¢ Š —ž–‹Ž› ˜ ‘’œ˜›’ŒŠ• ™•Š¢Ž›œ ˜–Ž Ž˜›œ ‘ŠŸŽ ‹ŽŽ— –ŠŽ Šœ ›ŽŠ›œ ›Ž—Ž Š‹•Ž Ž—Ž›¢ Š— ‹ŽŒŠžœŽ ˜ ‘Ž žœŽ Outline of Energy Policy 2007-2025 April 2007 14 ˜ ‹ŠŠœœŽ Ž ‘ŠŸŽ ‹ŽŽ— Š‹•Ž ˜ ŠŒ‘’ŽŸŽ Š ‘’‘ ™›˜™˜›’˜— ˜ Ž•ŽŒ›’Œ’¢ ‹Ž’— Ž—Ž›ŠŽ ›˜– ›Ž—Ž Š‹•Žœ ˜ ŽŸŽ› ‘Ž›Ž Š›Ž Š —ž–‹Ž› ˜ Œ‘Š••Ž—Žœ •¢’— Š‘ŽŠ ’— ‘Ž Žœ’— Š— ’–™•Ž–Ž—Š’˜— ˜ ”Ž¢ œ›ŠŽ’Žœ ˜ ŠŒ‘’ŽŸŽ ‘Ž Žœ’›Ž ™˜•’Œ¢ Š’–œ Š— ˜‹“ŽŒ’ŸŽœ ™Š›’Œž•Š›•¢ ’‘ ›ŽŠ› ˜ ‘Ž œŽ’— ž™ ˜ ‘Ž Š™™›˜™›’ŠŽ ›Žž•Š˜›¢ ›Š–Ž ˜›” ž›‘Ž› ’–™›˜Ÿ’— ‘Ž Œ˜—›’‹ž’˜— ˜ ›Ž—Ž Š‹•Ž Ž—Ž›¢ ’— ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› ’—›˜žŒ’— ‹’˜žŽ•œ ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› Š— ’–™•Ž–Ž—’— Ž—Ž›¢ Ž’Œ’Ž—Œ¢ Š— Œ˜—œŽ›ŸŠ’˜— –ŽŠœž›Žœ ’— Š•• ŽŒ˜—˜–’Œ œŽŒ˜›œ ™Š›’Œž•Š›•¢ ‘Ž›Ž Ž—Ž›¢ žœŠŽ ’œ ’—Ž—œ’ŸŽ Outline of Energy Policy 2007-2025 April 2007 15 3 OBJECTIVES OF THE ENERGY POLICY 3.1 Principles of policy formulation ‘Ž ”Ž¢ ˜‹“ŽŒ’ŸŽœ ˜ ‘Ž Šž›’’Š— Ž—Ž›¢ ™˜•’Œ¢ Š›Ž ˜ ’–’ ‘Ž Ÿž•—Ž›Š‹’•’¢ ˜ Šž›’’žœ ˜ ’–™˜›Ž ˜œœ’• žŽ•œ Š— ‘Ž’› Ÿ˜•Š’•Ž ™›’ŒŽœ ›˜–˜Ž ŽŒ˜—˜–’Œ ›˜ ‘ Š— “˜‹ Œ›ŽŠ’˜— Ž–˜Œ›Š’£Ž Ž—Ž›¢ œž™™•¢ ŽŒž›Ž Š˜›Š‹•Ž Ž—Ž›¢ ˜ Œ˜—œž–Ž›œ —œž›Ž ‘Ž ’—Š—Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž ’•’¢ ‘ŽœŽ ˜‹“ŽŒ’ŸŽœ –žœ ‹Ž ž—Ž›™’——Ž ‹¢ ›ŽŠ• Š›Žœ ’— Ž›–œ ˜ ›ŽžŒ’˜— ’— ‘Ž žœŽ ˜ ˜œœ’• žŽ•œ Š— ’— ‘Ž Ž–’œœ’˜— ˜ ›ŽŽ— ‘˜žœŽ ŠœŽœ Š›’œ’— ›˜– Ž—Ž›¢ Œ˜—œž–™’˜— ’ŸŽ— ‘Ž ž—ŒŽ›Š’—¢ Š‹˜ž ‘Ž ›ŽŠ¢ ŠŸŠ’•Š‹’•’¢ ˜ ˜’• ‹Ž¢˜— ‘Ž —Ž¡ ’ŸŽ ŽŒŠŽœ ’ ’œ ’–™˜›Š— ˜ Œ‘Š› ˜ž Š— Ž—Ž›¢ ™˜•’Œ¢ Š— œ›ŠŽ¢ ˜› ‘Ž œ‘˜› ˜ –Ž’ž– Š— •˜— Ž›– ‘Š ˜ž• ›ŽžŒŽ Šœ Š› Šœ ™˜œœ’‹•Ž ‘Ž ›Ž•’Š—ŒŽ ˜ ‘Ž Œ˜ž—›¢ ˜— ˜’• ˜› Ž•ŽŒ›’Œ’¢ ™›˜žŒ’˜— Š— ›Š—œ™˜›Š’˜— — ‘’œ ›ŽŠ› ’ ’œ Œ˜—œ’Ž›Ž ‘Š ‘Ž ™˜•’Œ¢ ›Š–Ž ˜›” œ‘˜ž• ‹Ž –ž•’ ™›˜—Ž ’— ”ŽŽ™’— ’‘ ‘Ž Œ˜—œ›Š’—œ ‘Š ‘Ž Œ˜ž—›¢ ‘Šœ ’— Ž›–œ ˜ ’œ Ž˜›Š™‘’ŒŠ• •˜ŒŠ’˜— ŠŸŠ’•Š‹’•’¢ ˜ ˜‘Ž› •Žœœ Ÿ˜•Š’•Ž Š— ‹ŽŽ› ’œ›’‹žŽ ›ŽœŽ›ŸŽœ ˜ ˜œœ’• žŽ• œžŒ‘ Šœ Œ˜Š• Ž—Ž›¢ ›Žœ˜ž›ŒŽœ ŠŸŠ’•Š‹•Ž •˜ŒŠ••¢ Š— ‘Ž ŠŸŠ’•Š‹’•’¢ Š— Œ˜–™Ž’’ŸŽ—Žœœ ˜ ŽŒ‘—˜•˜’Žœ ’— ‘Ž –Š›”Ž™•ŠŒŽ ˜› ‘Ž’› Œ˜—ŸŽ›œ’˜— ’—˜ Ž•ŽŒ›’Œ’¢ Š— ˜› žœŽ ’— ›Š—œ™˜›Š’˜— Š— ’—žœ›¢ — Š’’˜— ’— ˜›–ž•Š’— ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ‘Ž ˜••˜ ’— ŽœœŽ—’Š• Œ›’Ž›’Š ‘ŠŸŽ ˜ ‹Ž Š”Ž— ’—˜ ŠŒŒ˜ž— ’ Ž–Š— ˜› Ž•ŽŒ›’Œ’¢ ’’ ŽŒ˜—˜–’Œ ›Ž˜›–œ ’’’ ‘Ž ’–™Ž›Š’ŸŽ ˜ Š›ŠŒ ˜›Ž’— ’—ŸŽœ–Ž— ’—˜ ‘Ž Œ˜ž—›¢ ’—Œ•ž’— ‘Ž Ž—Ž›¢ œŽŒ˜› ’Ÿ Ž—Ÿ’›˜—–Ž—Š• Œ˜—œ’Ž›Š’˜—œ Ÿ œžŠ› œŽŒ˜› ›Ž˜›–œ Š— •’—”ŠŽ ˜ Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— Š— Ÿ’ ›Š—œ™˜›Š’˜— Š— ’—žœ›’Š• ŽŸŽ•˜™–Ž— ™˜•’Œ’Žœ Š— •’—”ŠŽ ˜ Ž—Ž›¢ žœŽ Outline of Energy Policy 2007-2025 April 2007 16 3.2 Vision Statement ž›’— ‘’œ Ÿ’œ’ ’— ‘Ž —’Š— ›Žœ’Ž— ‹ž• Š•Š– Œ•ŽŠ›•¢ œŠŽ ‘Š Šž›’’žœ œ‘˜ž• Š’– ˜ ‹Ž Š— Ž—Ž›¢ ’—Ž™Ž—Ž— —Š’˜— ’ŸŽ— ’œ ›˜™’ŒŠ• •˜ŒŠ’˜— ‘Ž Ÿ’œ’˜— ˜ ‘Ž ˜ŸŽ›—–Ž— ˜ Šž›’’žœ ’œ ’— ”ŽŽ™’— ’‘ ‘Ž Š‹˜ŸŽ œŠŽ–Ž— ˜ œŽ• œž’Œ’Ž—Œ¢ ’— Ž—Ž›¢ œž™™•¢ ’— ‘Ž •˜— Ž›– ‘Ž›Ž ’—’Ÿ’žŠ• ‘˜žœŽœ ˜ž• ‘ŠŸŽ ‘Ž ™˜œœ’‹’•’¢ Š— ŒŠ™ŠŒ’¢ ˜ ž••¢ Š™ ›Ž—Ž Š‹•Ž ›Žœ˜ž›ŒŽœ œžŒ‘ Šœ ’— œ˜•Š› ‹’˜Šœ ’— ŽŒŽ—›Š•’£Ž œ¢œŽ– ‘’Œ‘ ˜ž• Š••˜ Ž—Ž›¢ œž™™•¢ ˜ Œ˜—’—žŽ ˜ ‹Ž Š˜›Š‹•Ž ˜ Š•• Œ’’£Ž—œ 3.3 Targets ŒŒ˜›’—•¢ ‘Ž Š›Ž ’œ ‘Š ˜ŸŽ› ‘Ž —Ž¡ ¢ŽŠ›œ Šž›’’žœ œ‘˜ž• ‹Ž Š‹•Ž ˜ ŠŒ‘’ŽŸŽ Š‹˜ž œŽ• œž’Œ’Ž—Œ¢ ’— Ž›–œ ˜ Ž—Ž›¢ œž™™•¢ ‘›˜ž‘ Š ™›˜›Žœœ’ŸŽ ’—Œ›ŽŠœŽ ’— ‘Ž žœŽ ˜ ›Ž—Ž Š‹•Ž Ž—Ž›’Žœ  ‘Ž Ž— ˜ ‘Š ™Ž›’˜ Šž›’’žœ ˜ž• ‹Ž Š‹•Ž ˜ ‘žœ ›ŽžŒŽ ’œ ›ŽŽ—‘˜žœŽ Šœ Ž–’œœ’˜—œ ‹¢ œ˜–Ž ˜ ’œ Œž››Ž— •ŽŸŽ• ŸŽ› ‘Ž —Ž¡ ¢ŽŠ›œ ‘Ž Ž–’œœ’˜—œ ˜ ›ŽŽ—‘˜žœŽ ŠœŽœ ˜ž• ‹Ž ›ŽžŒŽ ‹¢ Š‹˜ž ‘Ž Š‹˜ŸŽ Š›Žœ Š›Ž Š–‹’’˜žœ Š— ’•• ™˜œŽ Š —ž–‹Ž› ˜ Œ‘Š••Ž—Žœ ˜ ŽŒ’œ’˜— –Š”Ž›œ ’— ‘Ž’› žž›Ž Œ‘˜’ŒŽœ ‘’Œ‘ ˜ž• ‘ŠŸŽ ˜ ‹Ž ‹˜• Š›’— Š— ’——˜ŸŠ’ŸŽ — Ž›–œ Ž•ŽŒ›’Œ’¢ ‘Ž ˜‹“ŽŒ’ŸŽ ’œ ˜ –ŽŽ Ž–Š— ’— Š Œ˜—œ’œŽ— –Š——Ž› Šœœž›’— œŽŒž›’¢ Š— ›Ž•’Š‹’•’¢ ˜ œž™™•¢ Š Š˜›Š‹•Ž ™›’ŒŽœ ‘Ž Ž–Ž›’— ŽŒ˜—˜–’Œ ™’••Š›œ ’— ™Š›’Œž•Š› ‘Ž Š— ˜ž›’œ– œŽŒ˜›œ ˜ž• ›Žšž’›Ž Š Œ˜—œŠ— Š— ‘’‘ šžŠ•’¢ œž™™•¢ ˜ Ž•ŽŒ›’Œ’¢ ˜ ‘’œ Ž— ‘Ž Ž—Ž›¢ –’¡ ˜› ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› ‘’Œ‘ Ž¡Œ•žŽœ ›Š—œ™˜›Š’˜— Š— ’—žœ›¢ ’•• ‘ŠŸŽ ˜ ‹Ž ž›‘Ž› ’ŸŽ›œ’’Ž Š— –˜›Ž Ž–™‘Šœ’œ •Š’ ˜— ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ ‘’Œ‘ ŒŠ— ‹Ž œžœŠ’—Š‹•Ž ˜ŸŽ› ‘Ž •˜— Ž›– Š‹•Ž ‹Ž•˜ œ‘˜ œ ‘Ž ™˜œœ’‹•Ž Š›Žœ ž™ ˜ ‘Ž ¢ŽŠ› Outline of Energy Policy 2007-2025 April 2007 17 Š‹•Ž Ž›ŒŽ—ŠŽ ˜—›’‹ž’˜— ˜ •ŽŒ›’Œ’¢ Žšž’›Ž–Ž—œ Ž›ŒŽ—ŠŽ ˜—›’‹ž’˜— ’— ŽŠ› ˜ž›ŒŽ ˜ •ŽŒ›’Œ’¢ ˜•Š› ’— ¢›˜ ŠŠœœŽ Ž—Ž Š‹•Ž ŠœŽ ˜Š• Ž›˜œŽ—Ž ˜— Ž—Ž Š‹•Ž žŽ• ’• œ ›ŽŠ›œ ‘Ž ›Š—œ™˜›Š’˜— Š— ’—žœ›’Š• œŽŒ˜›œ œ™ŽŒ’’Œ Š›Žœ ’•• ‹Ž Ž•Š‹˜›ŠŽ ’— ‘Ž •˜— Ž›– Ž—Ž›¢ ™˜•’Œ¢ ˜Œž–Ž— ‘Ž ˜‹“ŽŒ’ŸŽ ’‘ ›Žœ™ŽŒ ˜ ‹’˜žŽ•œ ’œ ˜ ’—Ž›ŠŽ ’œ žœŽ ’— ‘Ž Ž—Ž›¢ –’¡ ˜› ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ’— ‘Ž –Ž’ž– ˜ •˜— Ž›– ‘’œ ˜ž• ™›˜Ÿ’Ž ‘Ž ˜™™˜›ž—’¢ ˜ ›ŽžŒŽ Ž–’œœ’˜—œ ˜ ŒŠ›‹˜— ’˜¡’Ž ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ‘›˜ž‘ ‘Ž žœŽ ˜ ›Ž—Ž Š‹•Ž žŽ•œ ˜› ‘Ž ’–Ž ‹Ž’— ‘Ž ˜—•¢ Š›Ž ‘’Œ‘ ‘Šœ ‹ŽŽ— ŽœŠ‹•’œ‘Ž ’œ ‘Ž Œ˜–™•Ž’˜— ˜ Š™™›˜™›’ŠŽ œž’Žœ ’—˜ ‘Ž žœŽ ˜ ‹’˜ žŽ•œ ‹¢ –’ 3.4 Summary ¢—Š–’Œ Ž—Ž›Š’˜— –Š›”Ž ’œ ŽœœŽ—’Š• ˜ –ŽŽ ‘Ž •˜— Ž›– Ž—Ž›¢ œž™™•¢ Œ‘Š••Ž—Žœ ‘’•œ –’—’–’£’— œ˜Œ’Š• Œ˜œœ ’— –ŽŽ’— ‘Ž ˜••˜ ’— Š’–œ ¾ ˜–™Ž’’ŸŽ—Žœœ ¾ ˜›Š‹’•’¢ ¾ žœŠ’—Š‹’•’¢ ¾ ŽŒž›’¢ ˜ ž™™•¢ — ‘’œ ›Žœ™ŽŒ ‘Ž ˜‹“ŽŒ’ŸŽ ˜ ˜ŸŽ›—–Ž— ’— ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› ’œ ˜ Š••˜ –˜›Ž Œ˜–™Ž’’˜— ’— ‘Ž Ž—Ž›Š’˜— –Š›”Ž ‘›˜ž‘ ‘Ž Œ›ŽŠ’˜— ˜ Š •ŽŸŽ• ™•Š¢’— ’Ž• ’‘ ‘’œ˜›’ŒŠ• ™•Š¢Ž›œ — ‘Ž žž›Ž –Š›”Ž ‘Ž Œ˜–™Ž’’˜— ˜ž• ‹Ž ˜ŸŽ›œŽŽ— ‹¢ ‘Ž ’—Ž™Ž—Ž— Žž•Š˜› Outline of Energy Policy 2007-2025 April 2007 18 4 ELEMENTS OF THE ENERGY POLICY 4.1 General Framework ‘Ž ™˜•’Œ’Žœ Š— œ›ŠŽ’Žœ ˜ ˜ŸŽ›—–Ž— ˜› ‘Ž —Ž¡  Ž—¢ ¢ŽŠ›œ Š›Ž ˜ž•’—Ž ’— ‘’œ œŽŒ’˜— ¡’œ’— –ŽŠœž›Žœ ‘ŠŸŽ ŠŒ‘’ŽŸŽ œ˜–Ž ›Žœž•œ ‹ž –˜›Ž —ŽŽœ ˜ ‹Ž ˜—Ž ˜ ž•’• ‘Ž ˜‹“ŽŒ’ŸŽœ ˜ œŽŒž›’¢ ˜ œž™™•¢ Š˜›Š‹•Ž Ž—Ž›¢ Œ˜–™Ž’’ŸŽ—Žœœ Š— Ž—Ž›¢ ’—Ž™Ž—Ž—ŒŽ ’— ‘Ž •˜— Ž›– ’ŸŽ— ‘Ž •’—”ŠŽ ˜ Ž—Ž›¢ žœŽ ’‘ ŸŠ›’˜žœ œŽŒ˜›œ ˜ ‘Ž ŽŒ˜—˜–¢ Š— ‘Ž Ž—Ÿ’›˜—–Ž— Š—¢ œŽ ˜ ™˜•’Œ’Žœ ‘ŠŸŽ ˜ ›Žœ™˜— ˜ œžŒ‘ –ž•’ ŠŒŽŽ Œ‘Š›ŠŒŽ›’œ’Œœ Š— —ŽŽœ ‘Ž ˜ž•’—Žœ ‘Š ’•• ‹Ž ’œŒžœœŽ ‘Ž›Žž—Ž› ’•• ‹Ž œž™™•Ž–Ž—Ž ‹¢ Š— ’— Ž™‘ ™˜•’Œ¢ Š— œ›ŠŽ¢ ˜Œž–Ž— ˜ ‹Ž ™›Ž™Š›Ž ‹¢ Ž— Šœ ™Ž› ‘Ž ›Š Ž›–œ ˜ ŽŽ›Ž—ŒŽ Š ™™Ž—’¡ 4.2 Government Policy — ‘Ž ›Žœ’Ž—’Š• ›Žœœ ˜ ž•¢ ’ ’œ ’—Ž› Š•’Š œŠŽ ‘Š ’— Ÿ’Ž ˜ ‘Ž Œ˜—œŠ—•¢ ›˜ ’— —ŽŽœ ˜ ‘Ž Œ˜ž—›¢ ˜ŸŽ›—–Ž— ’•• Š”Ž ŠŒ’˜— ˜› ‘Ž ’–Ž•¢ Œ˜––’œœ’˜—’— ˜ Š’’˜—Š• ™˜ Ž› Ž—Ž›Š’— ™•Š—œ ‘Ž ˜ž• ‹Ž Ž—Œ˜ž›ŠŽ ˜ ’—Œ›ŽŠœŽ ’œ ˜ — ™›˜žŒ’˜— ŒŠ™ŠŒ’¢ Š— ˜ Ž—œž›Ž œŽŒž›’¢ Š— ›Ž•’Š‹’•’¢ ˜ œž™™•¢ Š ‘Ž •˜ Žœ ™˜œœ’‹•Ž Œ˜œœ ‘›ŽŽ ”Ž¢ ™›’—Œ’™•Žœ ž—Ž›™’— ˜ŸŽ›—–Ž— ™˜•’Œ¢ ’— Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— Š— œž™™•¢ ’›œ•¢ ŠŸŠ’•Š‹’•’¢ œŽŒž›’¢ Š— ’ŸŽ›œ’¢ ˜ œž™™•¢ Š›Ž ˜ ˜™–˜œ ™›’˜›’¢ ’‘ ™Š›’Œž•Š› ˜Œžœ ˜— ›Ž—Ž Š‹•Ž Ž—Ž›¢ œŽŒ˜—•¢ Š˜›Š‹’•’¢ ’œ ‘Ž ”Ž¢ ˜ Ž—œž›’— œ˜Œ’˜ ŽŒ˜—˜–’Œ ŽŸŽ•˜™–Ž— ˜ ‘Ž Œ˜ž—›¢ Š”’— ’—˜ ŠŒŒ˜ž— ‘Ž ’—Š—Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž ž’•’¢ Š— ‘Ž ŽŒ˜—˜–’Œ œ˜ž——Žœœ ˜ ŽŒ’œ’˜—œ Š”Ž— ‘’›•¢ Ž—Ž›¢ Œ˜—œŽ›ŸŠ’˜— ’œ Š—˜‘Ž› ŒŽ—›Š• ™•Š—” ˜ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ‘Ž –˜›Ž œ˜ Šœ ‘Ž ™›’ŒŽœ ˜ ˜œœ’• žŽ•œ ’— ™Š›’Œž•Š› ˜’• ”ŽŽ™ ˜— ›’œ’— ‘žœ ‘Ž ›’™•Ž ‹˜˜– •’—Ž ’ Ž ‘Ž ’—Š—Œ’Š• Ž—Ÿ’›˜—–Ž—Š• Š— œ˜Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž œŽŒ˜› ’œ ‘Ž ›Š–Ž ˜›” ’‘’— ‘’Œ‘ ‘Ž ™˜•’Œ¢ Š’–œ Š— ˜‹“ŽŒ’ŸŽœ ‘ŠŸŽ ˜ ‹Ž ŠŒ‘’ŽŸŽ  ’œ Žœ’–ŠŽ ‘Š ˜ŸŽ› ‘Ž —Ž¡ ¢ŽŠ›œ Šž›’’žœ ’•• —ŽŽ ˜ ’—ŸŽœ Š‹˜ž œ ‹’••’˜— ˜— —Ž Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ™•Š—œ ‘Ž ˜ŸŽ››’’— ™›’˜›’¢ ’•• ‹Ž ˜ œŽŒž›Ž ŠŽšžŠŽ ’—ŸŽœ–Ž— ’— Š ™›˜™Ž›•¢ ž—Œ’˜—Š• –Š›”Ž ‹¢ ™›˜Ÿ’’— ‘Ž ›’‘ ’—ŸŽœ–Ž— Œ•’–ŠŽ ‘Ž Œ•˜œŽ –˜—’˜›’— ˜ ‘Ž Ž–Š— Š— œž™™•¢ ‹Š•Š—ŒŽ ’•• ‹Ž ›Žšž’›Ž ˜ ’Ž—’¢ Š—¢ œ‘˜›Š•• ˜›Ž˜ŸŽ› ™›’˜› ˜ Š—¢ ŽŒ’œ’˜— ‹Ž’— Š”Ž— Š ’—Š—Œ’Š• Š— ŽŒ˜—˜–’Œ Š—Š•¢œ’œ ’•• ‹Ž ›Žšž’›Ž œ˜ Šœ ˜ ŠžŽ ‘Ž ’–™ŠŒ ˜ ˜™’˜—œ ‹Ž’— Œ‘˜œŽ— Outline of Energy Policy 2007-2025 April 2007 19 4.3 Electricity Market Structure ˜–™•ŽŽ ž—‹ž—•’— ’œ —˜ Œ˜—œ’Ž›Ž Šœ ‹Ž’— Š— ˜™’˜— œ˜ ‘Š ‘Ž Œ›’Ž›’˜— ˜ Š˜›Š‹’•’¢ ŒŠ— Š• Š¢œ ‹Ž –Ž Š— œ ‘’•œ ‹Ž’— ŠŒŒ˜––˜ŠŽ ˜ž• —˜ ‹Ž Š••˜ Ž ˜ ‘ŠŸŽ ˜Š• Œ˜—›˜• ˜ ‘Ž Ž•ŽŒ›’Œ’¢ œŽŒ˜› ˜› œ›ŠŽ’Œ ›ŽŠœ˜—œ ‘Ž ’•• Œ˜—’—žŽ ˜ Ž—Ž›ŠŽ Ž•ŽŒ›’Œ’¢ ’— •’—Ž ’‘ ‘Ž ™˜•’Œ¢ ˜ž•’—Ž ’— ‘Ž ›Žœ’Ž—’Š• ›Žœœ ‘Ž ›˜•Ž ˜ ‘Ž Šœ Š ™•Š¢Ž› ’— Ž—Ž›Š’˜— ˜ Ž•ŽŒ›’Œ’¢ Š— ‘Ž œ˜•Ž ŠŽ—Œ¢ ˜› ›Š—œ–’œœ’˜— Š— ’œ›’‹ž’˜— ’•• ‹Ž –Š’—Š’—Ž ˜ ŽŸŽ› ˜› ŽŽŒ’ŸŽ ›Žž•Š’˜— ’ ’œ ŽœœŽ—’Š• ‘Š ‘Ž ’•’¢ Žž•Š˜› ‹ŽŒ˜–Ž ˜™Ž›Š’˜—Š• ˜ ‘Š ŽŽŒ ˜ŸŽ›—–Ž— ’•• ™›˜Ÿ’Ž ‘Ž —ŽŒŽœœŠ›¢ –ŽŠ—œ ˜ ‘ŠŸŽ ‘Ž ›Žž•Š˜› ’— ™•ŠŒŽ ‹¢ ‘Ž Ž— ˜ ‘’œ ’•• Š••˜ ‘Ž ›Žœ™˜—œ’‹’•’¢ ˜› –Š›”Ž ›Žž•Š’˜— Š— Š›’ œŽ’— ˜ ‹Ž ŽŽŒ’ŸŽ•¢ œŽ›ŽŠŽ ›˜– ‘Ž Š— ‘Ž ’—’œ›¢ ˜ ž‹•’Œ ’•’’Žœ ˜ŸŽ›—–Ž— ’•• ™›˜Ÿ’Ž ‘Ž —ŽŒŽœœŠ›¢ ’—›Šœ›žŒž›Ž ˜› ‘Ž ™›˜™Ž› ŽŸŽ•˜™–Ž— ˜ ‘Ž Ž—Ž›¢ œŽŒ˜› ‘Ž‘Ž› ‹¢ Ž—•’œ’— ™›’ŸŠŽ œŽŒ˜› ™Š›’Œ’™Š’˜— ˜› ˜— ’œ ˜ — ˜›Ž˜ŸŽ› ˜ŸŽ›—–Ž— ’•• Ž¡Š–’—Ž ‘˜ ‹Žœ ˜ ŠŒ’•’ŠŽ ‘Ž ’—Ž›Š’˜— ˜ ›Ž—Ž Š‹•Ž Ž•ŽŒ›’Œ’¢ ›˜– ’—’Ÿ’žŠ•œ ˜ ‘Ž ›’ Š— ’— ‘Ž –Ž’ž– ˜ •˜— Ž›– ˜ Š••˜ ‘˜žœŽ‘˜•œ ˜ Ž—Ž›ŠŽ Ž•ŽŒ›’Œ’¢ ›˜– ‘˜–Ž ‹ŠœŽ œ¢œŽ–œ Š— œŽ•• Š—¢ Ž¡ŒŽœœ ˜ ‘Ž ›’ ŠŽ¢ —Žœ Š›Ž ‹Ž’— ›Ž–˜ŸŽ ˜— ‘Ž ’—Ž›—Š’˜—Š• ›˜— Š— ‘’œ Š™™•’Žœ ˜ •˜ŒŠ• ’—žœ›’Žœ Šœ Ž•• ‘’Œ‘ Šœ Š ›Žœž• ‘ŠŸŽ ˜ ‹ŽŒ˜–Ž Ž’Œ’Ž— Š— Œ˜–™Ž’’ŸŽ ’— ‘Ž •˜‹Š• –Š›”Ž ŒŒ˜›’—•¢ ‘Ž ™˜•’Œ¢ ’œ ˜ ™›ŽŸŽ— ‘Ž ˜ ’— ž›— ‹ŽŒ˜–Ž Š œŠŽ¢ —Ž ˜› ˜‘Ž› ’—žœ›’Žœ œ˜ Šœ ˜ Ž—œž›Ž ‘Š ‘Ž ’—Š—Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž ˜Žœ —˜ œžŽ› Š—¢ ™›Ž“ž’ŒŽ ˜ŸŽ›—–Ž— ’œ Œ˜––’Ž ˜ ™›˜Ÿ’Ž Ž•ŽŒ›’Œ’¢ ˜ Š•• Œ˜—œž–Ž›œ ’››Žœ™ŽŒ’ŸŽ ˜ ‘Ž’› œ˜Œ’Š• œŠžœ — ‘’œ ›ŽŠ› ‘Ž ›Žž•Š˜›¢ ›Š–Ž ˜›” –Š”Žœ ™›˜Ÿ’œ’˜— ˜› Œ˜—œ’Ž›Š’˜— ˜ Ž•ŽŒ›’Œ’¢ Š›’œ ˜› Ÿž•—Ž›Š‹•Ž ›˜ž™œ œ˜ ‘Š ‘Ž’› Š˜›Š‹’•’¢ ’œ •ŽŠœ ŠŽŒŽ 4.4 Electricity Pricing for IPPs ‘Ž ™˜•’Œ¢ ‘Šœ ‹ŽŽ— ˜ ’œŒ˜—’—žŽ ’‘ ‘Ž žœŽ ˜ ‘Ž ™›’—Œ’™•Ž ˜ ŠŸ˜’Ž Œ˜œ ˜ ŽŽ›–’—Ž ‘Ž ™ž›Œ‘ŠœŽ ™›’ŒŽ ˜ Ž•ŽŒ›’Œ’¢ ›˜– œ žœ’— Š Œ˜–‹’—Š’˜— ˜ ‹ŠŠœœŽ Š— Œ˜Š• œ’—ŒŽ ¢ŽŠ› ‘Ž ™›’ŒŽ ˜ Ž•ŽŒ›’Œ’¢ ‘Š ‘Ž ˜ž• ™Š¢ ˜ œ ’—Œ•ž’— ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ‘Šœ ˜ ‹Ž Œ˜œ ›Ž•ŽŒ’ŸŽ Š— Œ˜–™Ž’’ŸŽ ’‘ Š—¢ ˜‘Ž› Š•Ž›—Š’ŸŽ œž™™•¢ ˜™’˜—œ ˜ ‘Š Ž— Š— ˜ Ž—œž›Ž ›Š—œ™Š›Ž—Œ¢ ‘Ž Žž•Š˜› œ‘˜ž• ‘ŠŸŽ ž—ŽŽ›Ž Outline of Energy Policy 2007-2025 April 2007 20 ŠŒŒŽœœ ˜ Š•• ›Ž•ŽŸŠ— ’—˜›–Š’˜— ˜— ™›˜“ŽŒœ ˜ Š•• žž›Ž œ Š— ‘’œ ˜ž• ‹Ž Š œ’—Ž šžŠ —˜— Œ˜—’’˜— ˜› ‘Ž œŠ› ˜ ’œŒžœœ’˜—œ ›ŽŠ›’— Š—¢ ˜ Ž› ž›Œ‘ŠœŽ ›ŽŽ–Ž— œ ‘Ž œžŠ› ’—žœ›¢ ‘ŠŸŽ œ’—’’ŒŠ— ›Žšž’›Ž–Ž—œ ˜ Ž•ŽŒ›’Œ’¢ Š— œŽŠ– ˜› ’œ ˜ — žœŽ ˜› –’••’— ŒŠ—Ž ™›˜ŒŽœœ’— œžŠ› ’—Œ•ž’— œ™ŽŒ’Š• œžŠ› Š— Š—¢ Ž‘Š—˜• ™›˜žŒ’˜— ‘Ž ™˜•’Œ¢ ’œ ˜ ‘Ž—ŒŽ˜›‘ Š™™˜›’˜— ‘Ž ’—ŸŽœ–Ž— ’— Œ˜––˜— Žšž’™–Ž— ˜ ‹Ž žœŽ ˜› œžŒ‘ ™ž›™˜œŽœ Š— ˜› ‘Ž ™ž›™˜œŽ ˜ Ž—Ž›Š’— Ž•ŽŒ›’Œ’¢ ˜› œŠ•Ž ˜ ‘Ž Š”’— ’—˜ ŠŒŒ˜ž— ŠŒ˜›œ Œ˜—œ’Ž›Ž ˜ ‹Ž ›Ž•ŽŸŠ— ‹¢ ‘Ž ™Š›’Žœ Œ˜—ŒŽ›—Ž œ˜ ‘Š ‘Ž›Ž ’œ —˜ ’—ŸŽœ–Ž— œž‹œ’¢ ‹¢ ‘Ž ˜ ŽŸŽ› ’— ˜›Ž› ˜ ™›˜Ÿ’Ž Š— ’—ŒŽ—’ŸŽ ˜› ‹ŠŠœœŽ Ž›’ŸŽ Ž•ŽŒ›’Œ’¢ –ŽŒ‘Š—’œ–œ ˜ ™›’ŒŽ ‹ŠŠœœŽ Š™™›˜™›’ŠŽ•¢ ’— Œ˜–™Ž’’˜— ’‘ ˜‘Ž› Š•Ž›—Š’ŸŽœ ’•• ‹Ž ŽŸ’œŽ žŒ‘ –ŽŒ‘Š—’œ–œ ’•• —˜ ‹Ž ‹ŠœŽ ˜— ‘Ž Žž—Œ ›ž•Ž ˜ ŠŸ˜’Ž Œ˜œ ‘’•Ž ŽœŠ‹•’œ‘’— ‘Ž ™˜ Ž› œŽŒ˜› ŒŠ™ŠŒ’¢ Ž¡™Š—œ’˜— ™•Š— ‘Ž ™˜•’Œ¢ ’œ ˜ ’ŸŽ žŽ Œ˜—œ’Ž›Š’˜— ˜ ‘Ž œ’£Ž Š— ŽŒ‘—˜•˜¢ ˜ ™˜ Ž› ™•Š—œ ‘Ž —ŽŽ ˜› ž›‘Ž› ’ŸŽ›œ’’ŒŠ’˜— ˜ ‘Ž Œ˜ž—›¢ œ Ž—Ž›¢ –’¡ Š— ˜‘Ž› œ›ŠŽ’Œ ’œœžŽœ œžŒ‘ Šœ ‘Ž —ŽŽ ˜ ŠŸ˜’ Š—¢ –˜—˜™˜•’œ’Œ œ’žŠ’˜— ™ž‹•’Œ ˜› ™›’ŸŠŽ 4.5 Electricity from Bagasse — ˜›Ž› ˜ ŠŒŒ˜––˜ŠŽ Ž¡›Š Ž•ŽŒ›’Œ’¢ ›˜– œ ‘Ž ’œ ˜‹•’Ž ˜ œ‘ž ˜ — ’œ ™˜ Ž› œŠ’˜—œ ‘’•Ž ’œ ˜ — ‘’‘ ’—ŸŽœ–Ž— Œ˜œœ œ’•• ‘ŠŸŽ ˜ ‹Ž Š–˜›’£Ž ˜ ŽŸŽ› ‘’•Ž ‘Ž ™˜•’Œ¢ ˜ ž›‘Ž› žœŽ ˜ ‹ŠŠœœŽ ˜› ™˜ Ž› Ž—Ž›Š’˜— ’œ ŽœœŽ—’Š• ›˜– ‘Ž œžŠ› œŽŒ˜› œŠ—™˜’— ’ ’œ ’–™˜›Š— ‘Š ‘Ž žœŽ ˜ Œ˜Š• ’— žž›Ž ™˜ Ž› ™•Š—œ ›˜– ‘Ž œžŠ› ’—žœ›¢ ’œ –’—’–’œŽ ‘’œ ’œ ‹ŽŒŠžœŽ Š—¢ ›ŽžŒ’˜— ’— ‘Ž –Ž’ž– ˜ •˜— Ž›– ˜ ‹ŠŠœœŽ ŠŸŠ’•Š‹’•’¢ –Š¢ ŒŠžœŽ ‘Ž œž‹œ’ž’˜— ˜ ‘Ž Ž—œž’— œ‘˜›Š•• ˜ ‹ŠŠœœŽ ‹¢ Œ˜Š• ‘’Œ‘ ˜ž• ‹Ž ‹ž›— Š •˜ Ž’Œ’Ž—Œ¢ — ‘’œ ›Žœ™ŽŒ ’ ’œ —˜Ž ‘Š ›ŽœŽŠ›Œ‘ Š— ŽŸŽ•˜™–Ž— ’— ‘Ž œŽŒ˜› ’œ ‹Ž’— ŠŒŒŽ•Ž›ŠŽ Š •ŽŸŽ• ‘Ž›Ž Šž›’’žœ ’œ ™•Š¢’— Š •ŽŠ’— ›˜•Ž ˜ ŽŸŽ•˜™ —Ž ŸŠ›’Ž’Žœ ˜ œžŠ› ŒŠ—Ž ’‘ ‘’‘Ž› ‹’˜–Šœœ ™›˜žŒ’˜— žŒ‘ Š œ’žŠ’˜— ŒŠ— ‘ŠŸŽ ŠŸŽ›œŽ –ŠŒ›˜ ŽŒ˜—˜–’Œ ’–™•’ŒŠ’˜—œ ’— Ž›–œ ˜ ‹ž›—’— Œ˜Š• ’— •’Žž ˜ ‹ŠŠœœŽ ’— ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ‘’Œ‘ ‹¢ Ÿ’›žŽ ˜ ‘Ž’› ŽŒ‘—˜•˜¢ Š— Žœ’— ‘ŠŸŽ •˜ Ž’Œ’Ž—Œ¢ ‘Ž— žœ’— Œ˜Š• Outline of Energy Policy 2007-2025 April 2007 21 ˜›Ž˜ŸŽ› Ž—Ÿ’›˜—–Ž—Š• Œ˜—œŽšžŽ—ŒŽœ ˜ž• ›Žœž• ›˜– ’—Œ›ŽŠœŽ Ž–’œœ’˜—œ žŽ ˜ ‘Ž •˜ Œ˜—ŸŽ›œ’˜— Ž’Œ’Ž—Œ¢ ˜ ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ‘Ž— ’›Ž ’‘ Œ˜Š• ˜—•¢ Šœ ˜™™˜œŽ ˜ Ž’ŒŠŽ Œ˜Š• ™•Š—œ ˜ ‹ŽŽ› ŽŒ‘—˜•˜¢ Š— Žœ’— ‘’Œ‘ ‘ŠŸŽ ‘’‘Ž› Ž’Œ’Ž—Œ’Žœ ‘Ž›ŽŸŽ› ‹ŠŠœœŽ Œ˜Š• ™˜ Ž› Ž—Ž›Š’˜— Œ˜—’ž›Š’˜—œ Š›Ž Ž—Ÿ’œŠŽ ‘Ž —Ž œ›ŠŽ¢ ’œ ŽŠ›Ž ˜ ’—Œ›ŽŠœ’— ‘Ž Š–˜ž— ˜ Ž—Ž›¢ Ž—Ž›ŠŽ ›˜– ‘ŠŽŸŽ› ‹ŠŠœœŽ ’œ ŠŸŠ’•Š‹•Ž ‘’•Ž –’—’–’œ’— ‘Ž žœŽ ˜ Œ˜Š• 4.6 Deemed Energy/Deemed Price — ˜›Ž› ˜ ŠŸ˜’ œ’žŠ’˜—œ ‘Ž›Ž ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ‹ŽŒ˜–Ž ™ž›Ž•¢ Œ˜Š• ’›Ž ‘Ž ™˜•’Œ¢ ˜ ™›’Œ’— ’œ ˜ Œ˜—œ’Ž› Š—¢ ‹ŠŠœœŽ Ž—Ž›¢ œž‹œ’ž’˜— ’‘ Œ˜Š• Šœ Ž—Ž›¢ ŽŽ–Ž ˜ ‘ŠŸŽ ‹ŽŽ— Ž—Ž›ŠŽ ›˜– ‹ŠŠœœŽ ‘Ž ™›’ŒŽ ˜ œžŒ‘ ŽŽ–Ž Ž—Ž›¢ ˜ž• ‹Ž ‘Ž ™›’ŒŽ ‘Š ˜ž• ‘ŠŸŽ ‹ŽŽ— ™Š’ ˜› ‹ŠŠœœŽ Ž›’ŸŽ Ž—Ž›¢ ŒŒ˜›’—•¢ ™›˜Ÿ’œ’˜—œ ˜ž• ‘ŠŸŽ ˜ ‹Ž Œ˜—›ŠŒžŠ••¢ ‹’—’— ’— Š—¢ ˜ ‹Ž Ž—Ž›Ž ‹¢ ‘Ž ’‘ Š—¢ 4.7 Electricity from Coal œ œŠŽ ŽŠ›•’Ž› Œ˜Š• ’œ ‘Ž ˜—•¢ ˜‘Ž› ˜œœ’• žŽ• ŠŸŠ’•Š‹•Ž ’‘ ™›˜ŸŽ— ›ŽœŽ›ŸŽœ ‘Š ŒŠ— •Šœ –žŒ‘ •˜—Ž› ‘Š— ˜’• ’— Š’’˜— ˜ ’œ ŽŸŽ— ’œ›’‹ž’˜— Š›˜ž— ‘Ž •˜‹Ž –Š”’— ’ •Žœœ ™›˜—Ž ˜ Ž˜™˜•’’ŒŠ• Š— ˜‘Ž› Šœœ˜Œ’ŠŽ ›’œ”œ Š— ‘Ž›Ž˜›Ž •Žœœ Ÿ˜•Š’•Ž ’— Ž›–œ ˜ ™›’ŒŽœ ˜ ž›‘Ž› ’ŸŽ›œ’¢ ‘Ž Œ˜ž—›¢ œ Ž•ŽŒ›’Œ’¢ ‹ŠœŽ Š Š¢ ›˜– ˜’• Š— ’ŸŽ— ‘Š ‘Ž ˜‘Ž› Š•Ž›—Š’ŸŽ Š— ›Ž•’Š‹•Ž œ˜ž›ŒŽ ’œ Œ˜Š• ’‘ ™›˜ŸŽ— ›ŽœŽ›ŸŽœ ‘Š ŒŠ— •Šœ Š •ŽŠœ Š ŒŽ—ž›¢ Š— Š ›Š—Ž ˜ ŽŒ‘—˜•˜’Žœ Š•›ŽŠ¢ ŠŸŠ’•Š‹•Ž ’— ‘Ž –Š›”Ž™•ŠŒŽ ˜› ’œ Ž’Œ’Ž— Œ˜—ŸŽ›œ’˜— ’—˜ Ž•ŽŒ›’Œ’¢ ‘Ž ™›ŽŽ››Ž œ›ŠŽ¢ ’œ ˜ ’—Œ›ŽŠœŽ ‘Ž œ‘Š›Ž ˜ Œ˜Š• ’— ‘Ž Œ˜ž—›¢ œ Ž—Ž›¢ –’¡ — ‘Ž –Ž’ž– Ž›– Œ˜Š• ˜ž• œž‹œ’žŽ ˜’• ˜ Š ›ŽŠ Ž¡Ž— ‘Ž›Ž‹¢ ›ŽžŒ’— ‘Ž Œ˜ž—›¢ œ Ž™Ž—Ž—ŒŽ ˜— ˜’• ˜ ŽŸŽ› ˜ •’–’ ŒŠ›‹˜— ’˜¡’Ž Ž–’œœ’˜—œ Šž›’’žœ ˜ž• ›Žœ˜› ˜ Œ•ŽŠ— Œ˜Š• ŽŒ‘—˜•˜¢ ˜Š• ’›Ž ™˜ Ž› œŠ’˜—œ –žœ œ›’ŸŽ ˜ žœŽ —Ž ŽŒ‘—˜•˜’Žœ ‹Ž—Ž’’— ›˜– ’–™›˜ŸŽ Ž’Œ’Ž—Œ¢ ˜Ž›— ’—œŠ••Š’˜—œ Š›Ž ŒŠ™Š‹•Ž ˜ ›ž——’— Š ž™ ˜ ˜ Ž’Œ’Ž—Œ¢ ˜Š• ž’•’£Š’˜— ’— Ž’ŒŠŽ ‹˜’•Ž›œ ’‘ ’–™›˜ŸŽ ŽŒ‘—˜•˜¢ Š— Žœ’— Š•›ŽŠ¢ ŠŸŠ’•Š‹•Ž ’— ‘Ž –Š›”Ž™•ŠŒŽ ˜ž• ‘ŠŸŽ ˜ œž‹œ’žŽ ˜’• Šœ –žŒ‘ Šœ ™˜œœ’‹•Ž ’— ‘Ž Œ˜ž—›¢ œ Ž—Ž›¢ –’¡ ˜ Ž—œž›Ž œŽŒž›’¢ Š— ’ŸŽ›œ’¢ ˜ œž™™•¢ Outline of Energy Policy 2007-2025 April 2007 22 žŒ‘ Š œ›ŠŽ¢ ˜ž• Š••˜ ’ŸŽ›œ’’ŒŠ’˜— Š Š¢ ›˜– ˜’• ’‘ •ŽŠœ ž—ŒŽ›Š’—¢ Š— ˜ž• ’–™›˜ŸŽ œŽŒž›’¢ ˜ Ž•ŽŒ›’Œ’¢ œž™™•¢ ’— ‘Ž Œ˜ž—›¢ Š •˜ Ž› Œ˜œ ‘Š— ˜’• ‘Ž ‘’‘Ž› Ž’Œ’Ž—Œ¢ ˜ Ž’ŒŠŽ Œ˜Š• ™•Š—œ ˜ž• Š•œ˜ Š••˜ ‘Ž Œ˜œ ˜ Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ›˜– Œ˜Š• ˜ ‹Ž •Žœœ ‘Š— ›˜– ‹ŠŠœœŽ Œ˜Š• ™•Š—œ ˜ ŽŸŽ› ‘Ž ’œœžŽ ˜ Šœ‘ ’œ™˜œŠ• ’œ ™Ž›’—Ž— Š— ˜ž• ‘ŠŸŽ ˜ ‹Ž Š›ŽœœŽ 4.8 Renewable Energy in General ›’˜› ˜ œŽ’— ˜ž ‘Ž ™˜•’Œ¢ ˜› ›Ž—Ž Š‹•Ž Ž—Ž›¢ ’ ’–™˜›Š— ˜ ’œŒžœœ ‘Ž Œ˜—Ž¡ ’— ‘’Œ‘ ’ ’œ ‹Ž’— –ŠŽ ’›œ ‘Ž Š™ ‹Ž ŽŽ— ›Ž—Ž Š‹•Ž Š— —˜— ›Ž—Ž Š‹•Ž Ž—Ž›¢ ™›’ŒŽœ ’œ ›ŠžŠ••¢ ŽŒ›ŽŠœ’— Šœ ™›’ŒŽœ ˜ ‘¢›˜ŒŠ›‹˜—œ ’—Œ›ŽŠœŽ ˜›Ž˜ŸŽ› ‘Ž žœŽ ˜ ›Ž—Ž Š‹•Ž Ž—Ž›¢ ’–™›˜ŸŽœ œŽŒž›’¢ ˜ œž™™•¢ Šœ ’ ’œ •˜ŒŠ••¢ ™›˜žŒŽ Š— ’—Š••¢ Š™™’— ˜ ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ Ž—Ž›ŠŽœ •’•Ž ˜› —˜ ›ŽŽ—‘˜žœŽ ŠœŽœ ‘Ž›Ž‹¢ ‹›’—’— ‹Ž—Ž’œ ’— Ž›–œ ˜ Š’› šžŠ•’¢ Š— ŒŠ›‹˜— Œ›Ž’œ ˜ ‘Ž Œ˜ž—›¢ ˜ ŽŸŽ› ’—ŸŽœ–Ž—œ ’— ›Ž—Ž Š‹•Ž Ž—Ž›¢ Š›Ž Œ˜—œ’Ž›Š‹•¢ ‘’‘Ž› ‘Š— ’— Œ˜—ŸŽ—’˜—Š• ˜œœ’• žŽ• ™˜ Ž› œŠ’˜—œ ‘Ž›Ž˜›Ž ˜ŸŽ›—–Ž— ’•• ™›Ž™Š›Ž Š •˜— Ž›– ›Ž—Ž Š‹•Ž Ž—Ž›¢ ŠœŽ›™•Š— ‘’Œ‘ ˜ž• ‹Ž ŠŸŠ’•Š‹•Ž ‹¢ ‘Ž Ž— ˜ ‘Ž ™•Š— ˜ž• ™›˜Ÿ’Ž ‘Ž ›Š–Ž ˜›” ˜› ž›‘Ž› ŽŸŽ•˜™–Ž— ˜ ‘Ž ›Ž—Ž Š‹•Ž Ž—Ž›¢ œŽŒ˜› 4.9 Electricity from Wind — ‘Ž šžŽœ ˜ œž‹œ’žŽ Šœ Š› Šœ ™˜œœ’‹•Ž ’–™˜›Ž ˜’• ˜› ™˜ Ž› Ž—Ž›Š’˜— ’— ™˜ Ž› ŽŸŽ•˜™–Ž— ’œ Œ˜—œ’Ž›Ž Š ™›’˜›’¢ ‘Ž ™˜•’Œ¢ ’œ ‘Ž›Ž˜›Ž ˜ Ž—Œ˜ž›ŠŽ ‘Ž ŽŸŽ•˜™–Ž— ˜ ’— ™˜ Ž› ’— Šž›’’žœ ’—Œ•ž’— ˜›’žŽœ •‘˜ž‘ ’— Ž—Ž›¢ ŽŒ‘—˜•˜¢ ’œ ŽŸ˜•Ÿ’— ›Š™’•¢ ’ –žœ ‹Ž ‹˜›—Ž ’— –’— ‘Š ˜› Š—¢ ŽŸŽ•˜™–Ž— ˜ ’— ‹ŠœŽ ™˜ Ž› œŠ’˜—œ ˜—•¢ Žšž’™–Ž— ‘’Œ‘ ‘ŠŸŽ ŽœŠ‹•’œ‘Ž ›ŽŒ˜› ˜— ‘Ž’› Š‹’•’¢ ˜ ›Žœ’œ Œ¢Œ•˜—’Œ ’—œ ˜› ‘ŠŸŽ œž›Ÿ’ŸŽ Œ¢Œ•˜—’Œ ŽŠ‘Ž› ’•• ‹Ž Š••˜ Ž ’— Šž›’’žœ ‘Ž ™›ŽŽ››Ž ˜™’˜— ˜› ‘Ž ’—œŠ••Š’˜— ˜ ’— ™˜ Ž› œŠ’˜—œ ’•• ‹Ž ž’• ™Ž›ŠŽ — œ˜ ‘Š ›’œ”œ ˜ ‘Ž Œ˜ž—›¢ Š›Ž –’—’–’£Ž — Š’’˜— ’— ‘Ž Œ˜—Ž¡ ˜ ‘Ž ’–™•Ž–Ž—Š’˜— ˜ Š—¢ ’— Ž—Ž›¢ ™›˜“ŽŒœ Ž˜›œ ˜ž• ‹Ž –ŠŽ ˜ œŽŒž›Ž ŒŠ›‹˜— Œ›Ž’œ œ˜ Šœ ˜ ›ŽžŒŽ ‘Ž Œ˜œ ˜ Ž—Ž›Š’˜— Š— ‘Ž›Ž˜›Ž ‘Ž Œ˜œ ˜ Œ˜—œž–Ž›œ 4.10 Solar Energy Šž›’’žœ ’œ œ’žŠŽ ’— ‘Ž ›˜™’Œœ Š— Šœ œžŒ‘ ‹Ž—Ž’œ ›˜– –˜›Ž ‘Š— ‘˜ž›œ ˜ œž—•’‘ ™Ž› ¢ŽŠ› — ˜›Ž› ˜ Ž—Œ˜ž›ŠŽ žœŽ ˜ œ˜•Š› Ž—Ž›¢ ‘Ž‘Ž› ˜› ŠŽ› ‘ŽŠ’— ˜› Ž•ŽŒ›’Œ’¢ ™›˜žŒ’˜— ’—ŒŽ—’ŸŽ œŒ‘Ž–Žœ ’•• Outline of Energy Policy 2007-2025 April 2007 23 ‘ŠŸŽ ˜ ‹Ž ŽŸ’œŽ œ˜ Šœ ˜ Ž—Š‹•Ž •˜— Ž›– ˜Š•œ ˜ ‹Ž ŠŒ‘’ŽŸŽ ‘Ž Ž—Ž Š‹•Ž —Ž›¢ ŠœŽ›™•Š— ’•• Š›Žœœ ‘’œ ’œœžŽ ‘˜›˜ž‘•¢ 4.11 Transport ‘Ž –Š’— ˜™’˜—œ Œž››Ž—•¢ ‹Ž’— Œ˜—œ’Ž›Ž Šœ ™Ž› Š ™ŠŒ”ŠŽ ˜ Ž’‘ŽŽ— –ŽŠœž›Žœ ‹¢ ‘Ž ’—’œ›¢ ˜ ž‹•’Œ —›Šœ›žŒž›Ž ’—Œ•žŽ –™›˜Ÿ’— ž›‘Ž› ‘Ž Š›ŠŒ’˜— ˜ ™ž‹•’Œ ‹žœŽœ –™•Ž–Ž—’— ‘Ž Šœœ ›Š—œ’ œ¢œŽ– –™›˜Ÿ’— œ’—’’ŒŠ—•¢ ™ŽŽœ›’Š— Š— Œ¢Œ•’— ŠŒ’•’’Žœ —Œ˜ž›Š’— ‘Ž žœŽ ˜ œ–Š•• ŽŒ˜—˜–’Œ ™›’ŸŠŽ ŒŠ›œ ’—œŽŠ ˜ •Š›Ž› ŒŒ ŸŽ‘’Œ•Žœ —Œ˜ž›Š’— ‘Ž žœŽ ˜ Š –’¡ ˜ ™Ž›˜• Š— ‘Š—˜• ˜˜›’—Š’— ž›‘Ž› ‘Ž ž—Œ’˜—œ ˜ Š— ›Š—œ™˜› Š— Š— •Š——’— ’—˜ ‘Ž •Š›Ž› œŽŒ˜› ˜ ›‹Š—’œ– 4.12 Ethanol ‘Ž ‘Šœ ™›˜™˜œŽ ‘Š œžŠ› ŠŒ˜›’Žœ ˜ž• ‹Ž ŒŽ—›Š•’£Ž Œ˜ž™•Ž ’‘ ‘Ž ™›˜žŒ’˜— ˜ Š –’—’–ž– ˜ –’••’˜— •’›Žœ ˜ Ž‘Š—˜• Š——žŠ••¢ —Ž •˜ŒŠ• Ž‘Š—˜• –Š—žŠŒž›Ž› ’œ Œž››Ž—•¢ Ž¡™˜›’— Ž‘Š—˜• ˜— Š ›Žž•Š› ‹Šœ’œ ˜ ˜›Ž’— –Š›”Žœ ¡™˜› ˜ Ž‘Š—˜• ‘Šœ ‘Ž ŠŽ ŠŸŠ—ŠŽ ˜ ‹›’—’— ˜›Ž’— Œž››Ž—Œ¢ ˜ ‘Ž Œ˜ž—›¢ Š— ˜ž• ‹Ž Ž—Œ˜ž›ŠŽ — ‘’œ Œ˜—Ž¡ ‘Ž ŽœŠ‹•’œ‘–Ž— ˜ Š— Ž‘Š—˜• œ™˜ –Š›”Ž œ’–’•Š› ˜ ‘Šœ ‹ŽŽ— Š›ŽŽ ž›’— ‘Ž ›ŽŒŽ— ›Š£’• œž––’ ‘’œ –Š›”Ž ’•• ’—’’Š••¢ Œ˜—ŒŽ›— ‘Ž –Ž›’ŒŠœ Š— Š›’‹‹ŽŠ— ›Ž’˜— ‹ž ’•• ŽŸŽ—žŠ••¢ œ™›ŽŠ ˜›• ’Ž ‘Ž ™˜•’Œ¢ ˜ ˜ŸŽ›—–Ž— ˜— ‹’˜žŽ•œ ’œ ‘Š ’— ‘Ž Œž››Ž— –ŠŒ›˜ ŽŒ˜—˜–’Œ ›Ž˜›– Œ˜—Ž¡ ‘Ž›Ž‹¢ œž‹œ’’Žœ ˜— Š ŸŠ›’Ž¢ ˜ ’Ž–œ Š›Ž ‹Ž’— ›Ž Š›ŽŽ ˜› ›Ž–˜ŸŽ Š—¢ ’›ŽŒ œž‹œ’¢ ˜— ™›˜žŒ’˜— ˜› žœŽ ˜ Ž‘Š—˜• ˜ž• —˜ ‹Ž Š››Š—Ž Ž¡ŒŽ™ ’— ‘Ž Ž—Ÿ’›˜—–Ž—Š• Œ˜—Ž¡ ’˜žŽ•œ ˜ž• ‘Ž›Ž˜›Ž ‘ŠŸŽ ˜ Œ˜–™ŽŽ ’‘ ˜‘Ž› žŽ•œ ˜— Š •ŽŸŽ• ™•Š¢’— ’Ž• ’‘ Š –’—’–ž– ˜ ™›’ŒŽ ’—ŒŽ—’ŸŽœ ‘Ž’› œžŒŒŽœœ ˜ž• Ž™Ž— ‘˜••¢ ˜— ‘Ž’› šžŠ•’¢ ŠŒŒŽ™Š—ŒŽ ‹¢ Œ˜—œž–Ž›œ Š— ‘Ž’› Œ˜–™Ž’’ŸŽ—Žœœ  ’œ ›ŽŒ˜—’£Ž ‘Š Š—¢ œ ’Œ‘ ˜ ’•• ˜—•¢ ˜ŒŒž› ‘›˜ž‘ ™›’ŒŽ ’—ŒŽ—’ŸŽœ ‘’Œ‘ ŒŠ— ˜—•¢ ‹Ž Ž—Ÿ’›˜—–Ž—Š• Šœ ˜ž•’—Ž Š‹˜ŸŽ ‘Ž ™›’ŒŽ ˜ –žœ Š•œ˜ ›Ž•ŽŒ ’œ –’•ŽŠŽ ™Ž›˜›–Š—ŒŽ Š— Ž¡Œ’œŽ ž’Žœ ˜ž• ž•’–ŠŽ•¢ ›Ž•ŽŒ ‘Ž ˜ŸŽ›Š•• Œ˜–™Ž’’ŸŽ ŠŸŠ—ŠŽ ‘’Œ‘ Š œ‘’ ˜ ˜ž• ›Ž™›ŽœŽ— ˜›Ž˜ŸŽ› Šœ ›ŽŠ›œ ‘Ž ŽŽŒ’ŸŽ ’–™•Ž–Ž—Š’˜— ˜ Š—¢ ™›˜›Š––Ž Š•• ™Ž›˜• œŠ’˜—œ œ‘˜ž• ‹Ž ›Žšž’›Ž ˜ ’—œŠ•• ™ž–™œ œŽ›Ÿ’Œ’— Šœ˜‘˜• œ˜ ‘Š ‘Ž ™›˜™˜œŽ ‹•Ž— ŒŠ— ‹Ž ŽŽŒ’ŸŽ•¢ Ž•’ŸŽ›Ž ˜ Œ˜—œž–Ž›œ ’— žž›Ž Outline of Energy Policy 2007-2025 April 2007 24 — ›Žœ™ŽŒ ˜ ŒŠ›‹˜— Œ›Ž’œ ‘Ž ›ŽŸŽ—žŽœ ŠŒŒ›ž’— ›˜– ‘Ž œŠ•Ž ˜ Š—¢ ™˜œœ’‹•Ž –’œœ’˜— ŽžŒ’˜— —’œ ›˜– ‹’˜žŽ•œ žœŽ ˜ž• ŠŒŒ›žŽ ˜ ˜ŸŽ›—–Ž—Š• ‹˜’Žœ ‘’Œ‘ ˜ž• ‹Ž žœŽ ˜ ™›˜Ÿ’Ž ’—ŒŽ—’ŸŽœ ’ Š—¢ ˜ ™›˜–˜Ž ‹’˜žŽ•œ Š›’Œ’™Š’˜— ‹¢ ‹˜‘ œ›ŠŽ’Œ ™Š›—Ž›œ Š— œžŠ› ’—žœ›¢ œŠ”Ž‘˜•Ž›œ ’— ‘Ž Žšž’¢ ˜ Ž‘Š—˜• Œ˜–™Š—’Žœ ’•• ‹Ž Š ‘Š••–Š›” ˜ ‘Ž —Ž œŽ ž™ ˜ Ž–˜Œ›Š’£Ž ‘Ž ŽŒ˜—˜–¢ ‘Ž •ŽŸŽ• ˜ ™Š›’Œ’™Š’˜— ˜ ‘Ž ŸŠ›’˜žœ ™Š›’Žœ ’— ‘Ž Žšž’¢ ˜ Ž‘Š—˜• Œ˜–™Š—’Žœ ’•• ‹Ž ‘Ž œž‹“ŽŒ ˜ –žžŠ• Š›ŽŽ–Ž— ˜— Ž›–œ Š— Œ˜—’’˜—œ ‘Š –Š¢ ‹Ž œ‘Š™Ž ‹¢ ‘Ž œ™ŽŒ’’Œ’’Žœ ˜ –˜•ŠœœŽœ ™›˜žŒ’˜— šž’¢ ™Š›’Œ’™Š’˜— ’— Ž‘Š—˜• Œ˜–™Š—’Žœ ’œ Š•œ˜ ™Š› ˜ Š •˜‹Š• œ›ŠŽ¢ ‘’Œ‘ Š’–œ Š ŽœŠ‹•’œ‘’— Š— ˜›Š—’Œ •’—” ‹Ž ŽŽ—  ˜ ”Ž¢ œŠ”Ž‘˜•Ž›œ ˜ ‘Ž ’—žœ›¢ Š— ‘Š ˜ž• Ž—œž›Ž Ž—‘Š—ŒŽ ›ŽŸŽ—žŽ Š— œŽŒž›’¢ ˜ Š•• œŠ”Ž‘˜•Ž›œ Šœ –Ž—’˜—Ž ’— ‘Ž 4.13 Electricity from Solid (Municipal) Waste ‘Ž ™˜•’Œ¢ ’‘ ›ŽŠ› ˜ ‘Ž Ž—Ž›Š’˜— ˜ Ž•ŽŒ›’Œ’¢ Šœ Š ‹¢ ™›˜žŒ ˜ ’—Œ’—Ž›Š’˜— ˜ ŠœŽ ’œ ‘Š ‘Ž ˜ž• ™ž›Œ‘ŠœŽ Ž•ŽŒ›’Œ’¢ ›˜– œžŒ‘ ŠŒ’•’’Žœ Š ›ŠŽœ ‘’Œ‘ Š›Ž Œ˜–™Ž’’ŸŽ Š— Œ˜–™Š›Š‹•Ž ˜ ˜‘Ž› œ˜ž›ŒŽœ œ˜ Šœ —˜ ˜ ŠŸŽ›œŽ•¢ ’–™ŠŒ ˜— ‘Ž ’—Š—Œ’Š• œžœŠ’—Š‹’•’¢ ˜ ‘Ž 4.14 Environment —Ÿ’›˜—–Ž—Š• Œ˜—œ’Ž›Š’˜—œ Š›Ž Š— ’—Ž›Š• ™Š› ˜ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ˜ –Š’— Ž—Ÿ’›˜—–Ž—Š• Šœ™ŽŒœ Š›Ž ˜ ’–™˜›Š—ŒŽ ’›œ ‘Ž ›ŽžŒ’˜— ˜ ›ŽŽ—‘˜žœŽ ŠœŽœ Š— œŽŒ˜—•¢ Ž–’œœ’˜—œ ˜ Š’› œ˜’• Š— ŠŽ› ›˜– Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ŠŒ’•’’Žœ — Š’’˜— ‘Ž —ŽŽ ˜ Š›Žœœ ‘Ž ’œœžŽ ˜ Œ•’–ŠŽ Œ‘Š—Ž ’œ ‹ŽŒ˜–’— –˜›Ž Š— –˜›Ž ™›Žœœ’— ‘Ž›Ž˜›Ž ’— žž›Ž ¢ŽŠ›œ ’— ˜›Ž› ˜ –ŽŽ Š›Žœ œŽ ’— ‘Ž ˜Œž–Ž— Šž›’’žœ ’•• ‘ŠŸŽ ˜ œŽ™ ž™ Ž˜›œ ’— ‘Ž ’›ŽŒ’˜— ˜ ž›‘Ž› žœŽ ˜ ›Ž—Ž Š‹•Ž Ž—Ž›’Žœ ‘Ž •˜— Ž›– Œ˜––’–Ž— ˜ ‘Ž ›ŽžŒ’˜— ˜ ›ŽŽ—‘˜žœŽ ŠœŽœ ›Ž–Š’—œ ž—Œ‘Š—Ž ˜ŸŽ›—–Ž— ’•• œŽŽ” ˜ ’—Œ›ŽŠœŽ ›ŽŸŽ—žŽœ ›˜– ŒŠ›‹˜— Œ›Ž’œ ›˜– Š•• ›Ž—Ž Š‹•Ž Ž—Ž›¢ ™›˜“ŽŒœ œ˜ ‘Š œžŒ‘ ž—œ –Š¢ ‹Ž žœŽ ˜ ›ŽŠ•’œŽ ™›˜“ŽŒœ ‘’Œ‘ ž—’• ›ŽŒŽ—•¢ Ž›Ž —˜ ŽŠœ’‹•Ž  ’œ ’–™•’Ž ‘Ž›Ž’— ‘Š Š•• ŒŠ›‹˜— Œ›Ž’œ ›˜– ›Ž—Ž Š‹•Ž Ž—Ž›¢ ™›˜“ŽŒœ ’—Œ•ž’— ‹ŠŠœœŽ ˜ž• ŠŒŒ›žŽ ˜ ˜ŸŽ›—–Ž—Š• ‹˜’Žœ Outline of Energy Policy 2007-2025 April 2007 25 –’œœ’˜—œ ˜ Š’› œ˜’• Š— ŠŽ› ›˜– Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’— ŠŒ’•’’Žœ ‘ŠŸŽ ˜ ‹Ž –’—’–’£Ž Ž’‘Ž› ‹¢ ›Žœ˜›’— ˜ ›Ž—Ž Š‹•Ž œ˜ž›ŒŽœ ˜› ‹¢ Š™™•¢’— ™˜••ž’˜— Œ˜—›˜• –ŽŠœž›Žœ ‘Ž —Ÿ’›˜—–Ž—Š• ›˜ŽŒ’˜— Œ Š•›ŽŠ¢ Œ˜ŸŽ›œ œžŒ‘ Šœ™ŽŒœ ‹ž ‘Ž›ŽŸŽ› Š™œ Š›Ž —˜Ž ’— •Ž’œ•Š’˜— œ›’ŒŽ› ž›˜™ŽŠ— —˜›–œ ’•• ‹Ž žœŽ Šœ ›ŽŽ›Ž—ŒŽ œ ›ŽŠ›œ ‘Ž ŒŠ™ŠŒ’¢ Ž¡™Š—œ’˜— ™•Š— ˜ ‘Ž Œ˜ž—›¢ ‘Ž ™˜•’Œ¢ ’œ Š•œ˜ ˜ Š”Ž ’—˜ ŠŒŒ˜ž— ‘Ž ˜ŸŽ›Š•• Ž—Ÿ’›˜—–Ž—Š• ’–™ŠŒ ˜ ™˜ Ž› ™›˜“ŽŒ ™›˜™˜œŠ•œ ’—Œ•ž’— ‘˜œŽ ˜ œ —•¢ ‘˜œŽ ™›˜™˜œŠ•œ ‘’Œ‘ Œ˜–™•¢ ’‘ Ž—Ÿ’›˜—–Ž—Š• —˜›–œ ˜ž• ‹Ž Ž—Ž›Š’—Ž 4.15 Demand Side Management and Energy Efficiency ‘Ž ’–™›˜ŸŽ–Ž— ˜ Ž—Ž›¢ Ž’Œ’Ž—Œ¢ Š Š•• •ŽŸŽ•œ ŒŠ— ™˜Ž—’Š••¢ ‘Ž•™ ˜ ŠŒ‘’ŽŸŽ ‘Ž ˜‹“ŽŒ’ŸŽœ ˜ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ˜ ‘Ž Œ˜ž—›¢ ˜ ŽŸŽ› ’–™•Ž–Ž—’— Ž—Ž›¢ Ž’Œ’Ž—Œ¢ –ŽŠœž›Žœ ’•• ›Žšž’›Ž œ’—’’ŒŠ— Ž˜›œ ’— Ž›–œ ˜ ’—ŸŽœ–Ž— Š— ‹Ž‘ŠŸ’˜ž›Š• Œ‘Š—Ž Ž–Š— œ’Ž –ŽŠœž›Žœ ˜ž• ‹Ž ’–™•Ž–Ž—Ž Šœ ›ŽŠ›œ ¾ œŠ—Š›œ ˜› Š™™•’Š—ŒŽœ ¾ Ž—Ž›¢ ™Ž›˜›–Š—ŒŽ ˜ ‹ž’•’—œ ¾ ’–Ž ˜ žœŽ Š›’œ ¾ Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ¾ •˜œœŽœ ’— ›Š—œ–’œœ’˜— Š— ’œ›’‹ž’˜— œ¢œŽ–œ — Ž›–œ ˜ ’–Ž ˜ žœŽ Š›’œ ‘Ž ’—›˜žŒ’˜— ˜ ’Ž›Ž—’Š• Š›’œ ’œ ‹Ž’— Œ˜—œ’Ž›Ž Šœ ‘Ž¢ Œ˜ž• •ŠŽ— ™ŽŠ” Ž–Š— Š— ›ŽžŒŽ Œ˜œœ ˜ ‘Ž ‘’•œ Š ‘Ž œŠ–Ž ’–Ž ›ŽžŒ’— ‘Ž Ž•ŽŒ›’Œ’¢ ‹’••œ ˜ ‘˜žœŽ‘˜•œ œ ˜› ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ˜ŸŽ›—–Ž— ’•• •˜˜” ’—˜ ‘Ž —ŽŽ ˜ ’–™•Ž–Ž— –ŽŠœž›Žœ ˜ ™›˜–˜Ž ‘Ž žœŽ ˜ žŽ• Ž’Œ’Ž— ŸŽ‘’Œ•Žœ ’—Œ•ž’— ŒŠ›œ Š— ‹žœŽœ —Ž –Šœœ ›Š—œ’ œ¢œŽ– ’œ ‹Ž’— Œ˜—œ’Ž›Ž Šœ Ž•• Outline of Energy Policy 2007-2025 April 2007 26 4.16 Summary ‘Ž ™˜•’Œ’Žœ ˜ž•’—Ž ’— ‘’œ œŽŒ’˜— Œ˜—ŒŽ›— ‘Ž ˜••˜ ’— ˜™’Œœ ˜ŸŽ›—–Ž— ˜•’Œ¢ •ŽŒ›’Œ’¢ Š›”Ž ›žŒž›Ž •ŽŒ›’Œ’¢ ›’Œ’— ˜› œ •ŽŒ›’Œ’¢ ›˜– ŠŠœœŽ ŽŽ–Ž —Ž›¢ ŽŽ–Ž ›’ŒŽ •ŽŒ›’Œ’¢ ›˜– ˜Š• Ž—Ž Š‹•Ž —Ž›¢ ’— Ž—Ž›Š• •ŽŒ›’Œ’¢ ›˜– ’— ˜•Š› —Ž›¢ ‘Š—˜• •ŽŒ›’Œ’¢ ›˜– ˜•’ ž—’Œ’™Š• ŠœŽ —Ÿ’›˜—–Ž— Ž–Š— ’Ž Š—ŠŽ–Ž— Š— —Ž›¢ ’Œ’Ž—Œ¢ ‘Ž —Ž¡ œŽŒ’˜— ™›˜Ÿ’Žœ Š ’–ŽŠ‹•Ž ˜› ’–™•Ž–Ž—’— –ŽŠœž›Žœ ˜ œž™™˜› ‘Ž ˜ž•’—Ž ™˜•’Œ’Žœ Outline of Energy Policy 2007-2025 April 2007 27 5 ACTION PLAN 5.1 General — ‘’œ Œ’˜— •Š— –ŽŠœž›Žœ ˜› ‘Ž œ‘˜› ˜ –Ž’ž– Ž›– Š›Ž ˜ž•’—Ž ‘Ž •˜— Ž›– Ž—Ž›¢ ™˜•’Œ¢ ‘’Œ‘ ˜ž• ‹Ž ™›Ž™Š›Ž Šœ ™Ž› ‘Ž ›Š Ž›–œ ˜ ›ŽŽ›Ž—ŒŽ Š ™™Ž—’¡ ’•• ™›˜Ÿ’Ž ›ŽŠŽ› ŽŠ’•œ ‘Ž Œ’˜— •Š— ‘’Œ‘ œž™™˜›œ ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ˜ ˜ŸŽ›—–Ž— ’œ Œ•Šœœ’’Ž ’—˜ ˜ž› –Š’— œŽŒ˜›œ —Š–Ž•¢ Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— ›Žž•Š’˜— ™˜•’Œ¢ ŽŸŽ•˜™–Ž— Š— ›Š—œ™˜›Š’˜— ŽŠœž›Žœ ˜ ™›˜–˜Ž –˜›Ž ™•Š¢Ž›œ ’— ‘Ž Ž•ŽŒ›’Œ’¢ Ž—Ž›Š’˜— –Š›”Ž Š›Ž Š•œ˜ Œ˜—Š’—Ž ’— ‘Ž Œ’˜— •Š— — Š’’˜— Š ’–ŽŠ‹•Ž ’œ Š•œ˜ ™ž ˜› Š› ˜› ‘Ž Œ˜–’— ’—˜ ˜™Ž›Š’˜— ˜ ‘Ž ’•’¢ Žž•Š˜›¢ ž‘˜›’¢ 5.2 Electricity generation over the period 2007 – 2011 ˜••˜ ’— ’œŒžœœ’˜—œ ’‘ œŠ”Ž‘˜•Ž›œ Š ’–ŽŠ‹•Ž ‘Šœ ‹ŽŽ— Š™™›˜ŸŽ ‹¢ ˜ŸŽ›—–Ž— ˜› ‘Ž Œ˜–’— ’—˜ ˜™Ž›Š’˜— ˜ —Ž ‹ŠŠœœŽ Œ˜Š• ŠŒ’•’’Žœ  –Š¢ ‹Ž —˜Ž ‘Š •ŽŽ›œ ˜ ’—Ž— ˜ž• ‹Ž ’œœžŽ ™›˜Ÿ’Ž ‘Ž ™›˜“ŽŒœ ˜ œ Š›Ž ’— •’—Ž ’‘ ‘Ž ™˜•’Œ’Žœ ˜ ˜ŸŽ›—–Ž— Š”’— ’—˜ ŠŒŒ˜ž— ‘Š Œ˜––’œœ’˜—’— ˜ Š ™˜ Ž› ™•Š— Š”Žœ Š •ŽŠœ –˜—‘œ  –Š¢ ‹Ž ‹˜›—Ž ’— –’— ‘Š ™›’˜› ˜ ›ŽŠŒ‘’— ‘Ž ’–ŽŠ‹•Ž ‘Ž ŒŠ››’Ž ˜ž Š— ’— ‘˜žœŽ œ¢œŽ– Œ˜œ Š—Š•¢œ’œ ˜ Ž—œž›Ž ‘Š ›ŽŠœ˜—Š‹•Ž Š— ’—˜›–Ž Œ‘˜’ŒŽœ Ž›Ž –ŠŽ ‘’œ Š—Š•¢œ’œ ’œ ’—Œ•žŽ Š ™™Ž—’¡ Š‹•Ž ‹Ž•˜ ™›˜Ÿ’Žœ ‘Ž ’–’— ˜ ‘Ž žŠ› œ Šœ Š™™›˜ŸŽ ‹¢ ˜ŸŽ›—–Ž— Table 5.1 : Time Table for Sugar IPPs as per Government Decision ŽŠ› ˜ Ž› Š’˜— ŠŸ ’•• ‹Ž Œ˜––’œœ’˜—Ž Šœ œŒ‘Žž•Ž ’‘ ˜ Œ›˜™ Š— Œ›˜™ œŽŠœ˜— ’ ‘’› Š— —Ž —’ ˜› ˜ Œ˜–Ž ˜—•’—Ž ’— –’ Š— Ž¡™˜› ˜ ™˜ Ž› ˜ ‘Ž ŠŽ žŽ• ˜ Š Š —Ž ™•Š— ˜ ‹Ž ŽŽ— Œ›˜™ ˜ ’—Ž›Œ›˜™ ‘’•Ž ”ŽŽ™’— ‘Ž Ž¡’œ’— ™•Š— ŽŽ™ ’ŸŽ› ŽŠž ‘Š–™ ˜ Œ•˜œŽ ˜ — ‹¢ ‘Ž— ŠŽ ž‹“ŽŒ ˜ Ž–Š— Ž’—Ž ˜ Œ˜–Ž ˜— •’—Ž ’‘ ˜ Œ›˜™ ’—Ž›Œ›˜™ Outline of Energy Policy 2007-2025 April 2007 28 ˜›Ž˜ŸŽ› ‘Ž›Ž Š›Ž ˜‘Ž› ™›˜“ŽŒœ ‘’Œ‘ ‘ŠŸŽ ‹ŽŽ— Š›ŽŽ ‹¢ ˜ŸŽ›—–Ž— Š— ’— •’—Ž ’‘ ’œ ™˜•’Œ¢ ‘Ž ’–ŽŠ‹•Ž ’œ œ‘˜ — ’— Š‹•Ž ‹Ž•˜ Š‹•Ž ’–ŽŠ‹•Ž ˜› Œ˜–’— ’—˜ ˜™Ž›Š’˜— ˜ ˜‘Ž› ™˜ Ž› œŠ’˜—œ ŽŠ› ˜ Ž› Š’˜— ˜ Ž› ˜ Œ˜–Ž ’—˜ ˜™Ž›Š’˜— ’‘ ŠœŽ ˜ —Ž›¢ •Š— ˜ ‹Ž ’— ˜™Ž›Š’˜— Š Š ‘Šž–’Ž›Ž ’— Š›– ˜ Œ˜–Ž ˜— ›’ ‹¢ ˜ Ž› ˜ Œ˜–Ž ’—˜ ˜™Ž›Š’˜— ’‘ œŽŒ˜— ‘ŽœŽ œ ’•• ™›˜Ÿ’Ž —˜— ’›– ™˜ Ž› Š— ‘Ž›Ž˜›Ž ’•• ‹Ž ›ŽŠŽ ˜— Š— ŠŸ˜’Ž Œ˜œ ‹Šœ’œ ‹¢ ‘Ž ‘Ž ›Ž™˜› ˜ ‘Ž ˜—’˜›’— Œ˜––’ŽŽ œŽ ž™ ˜ •˜˜” ’—˜ ‘Ž Œ˜œ ŽŽŒ’ŸŽ—Žœœ ˜ žœ’— ’•• ‹Ž œž‹–’Ž ‹¢ Ž— ŽŒ˜––Ž—Š’˜—œ ›ŽŠ›’— ‘Ž žœŽ ˜ ‹’˜ žŽ•œ ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ˜ž• ‹Ž Ž¡Š–’—Ž ˜› ’–™•Ž–Ž—Š’˜— ’— –’ ˜›Ž˜ŸŽ› ’— ‘Ž Œ˜—Ž¡ ˜ ‘Ž ’—›˜žŒ’˜— ˜ ‘Ž žœŽ ˜ ‹’˜žŽ•œ ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ˜ŸŽ›—–Ž— ’•• ™ž ’— ™•ŠŒŽ Š –ŽŒ‘Š—’œ– ˜› ˜‹Š’—’— ŒŠ›‹˜— Œ›Ž’œ ‘’Œ‘ ˜ž• ˜ ˜ Š›œ –Š”’— ‘Ž žœŽ ˜ ‹’˜žŽ•œ –˜›Ž Š›ŠŒ’ŸŽ Ž—Š’ŸŽ•¢ ’ ’œ Š›ŽŽ ˜ ›Ž™•ŠŒŽ Š •ŽŠœ ˜ ˜’• žœŽ ’— ‘Ž ›Š—œ™˜›Š’˜— œŽŒ˜› ‹¢ žŽ•œ Ž›’ŸŽ ›˜– ›Ž—Ž Š‹•Žœ ˜ŸŽ› ‘Ž ™Ž›’˜ 5.3 Legislation ‘Ž ’•’¢ Žž•Š˜›¢ ž‘˜›’¢ Œ ’•• ‹Ž ™›˜Œ•Š’–Ž Š •ŠŽœ ‹¢ ‘Ž Ž— ˜ ™™›˜™›’ŠŽ –ŽŠœž›Žœ ˜ž• ‹Ž Š”Ž— ˜ œŽ ž™ ‘Ž ž‘˜›’¢ œ˜ ‘Š ’ ’œ ˜™Ž›Š’˜—Š• ‘Ž— ‘Ž Œ ’œ ™›˜Œ•Š’–Ž ˜ ‘Š ŽŽŒ ŽŒ‘—’ŒŠ• Šœœ’œŠ—ŒŽ ˜ž• ‹Ž œ˜ž‘ œ˜ Šœ ˜ ŽœŠ‹•’œ‘ ‘Ž ™›˜Ÿ’œ’˜—œ ‘’Œ‘ ’•• ‘ŠŸŽ ˜ ‹Ž –ŠŽ œ˜ ‘Š ‘ž–Š— ŽŒ‘—’ŒŠ• Š— ’—Š—Œ’Š• ›Žœ˜ž›ŒŽœ Š›Ž ’— ™•ŠŒŽ Š ‘Ž ’–Ž ˜ ™›˜Œ•Š–Š’˜— ˜ ‘Ž Œ Š— ‘Ž Œ˜–’— ’—˜ ˜™Ž›Š’˜— ˜ ‘Ž Žž•Š˜› —ŒŽ ŽœŠ‹•’œ‘Ž ‘Ž ›Žž•Š˜›¢ ‹˜¢ ’•• ™›˜ŒŽŽ ’— ’œ ž’Žœ žœ’— ‘’œ ™•Š— Šœ Š œŠ›’— ™˜’— Ž—ŒŽ ‘Ž ™•Š— ‘’Œ‘ ‘Šœ ‹ŽŽ— œŽ ˜›‘ ‹¢ ˜ŸŽ›—–Ž— ’•• ‹Ž –Š’—Š’—Ž ‘Ž •ŽŒ›’Œ’¢ Œ ’•• Š•œ˜ ‹Ž ™›˜Œ•Š’–Ž ’— ‘Ž Š”Ž ˜ ‘Ž œŽ’— ž™ ˜ ‘Ž Žž•Š˜› ’ Ž ’‘’— ‘Ž œŠ–Ž ’–Ž›Š–Ž  –Š¢ ‹Ž —˜Ž ‘Š ‘Ž Žž•Š˜› ˜ž• Š•œ˜ ˜ŸŽ›œŽŽ ‘Ž ŠŽ› Š— ‘Ž ŠœŽ ŠŽ› œŽŒ˜›œ Outline of Energy Policy 2007-2025 April 2007 29 ‘Ž —Ž›¢ ’Œ’Ž—Œ¢ ’•• ’•• ‹Ž ™›Ž™Š›Ž ’‘ Š™™›˜™›’ŠŽ ŽŒ‘—’ŒŠ• Šœœ’œŠ—ŒŽ ˜› Ž—ŠŒ–Ž— œ˜–Ž ’–Ž ’— –’  –Š¢ ‹Ž —˜Ž ‘Š ˜›” ‘Šœ Š•›ŽŠ¢ œŠ›Ž ˜— ‘Ž •Š‹Ž•’— ˜ ŒŽ›Š’— Ž•ŽŒ›’ŒŠ• Š™™•’Š—ŒŽœ ‘’Œ‘ ˜ž• ŽŸŽ—žŠ••¢ ‹Ž •’—”Ž ˜ ‘Ž —Ž›¢ ’Œ’Ž—Œ¢ ’•• 5.4 Detailed Energy Policy and Masterplan for Renewable Energy up to 2025 ‘Ž ›Š Ž›–œ ˜ ›ŽŽ›Ž—ŒŽ ˜ ‘Ž ŽŠ’•Ž Ž—Ž›¢ ™˜•’Œ¢ Š›Ž Š——Ž¡Ž Š ™™Ž—’¡ ’œŒžœœ’˜—œ ’‘ ‘Ž ˜› ’—Š—Œ’Š• Šœœ’œŠ—ŒŽ ˜ ™›Ž™Š›Ž ‘Ž ˜Œž–Ž— Š›Ž ž—Ž› Š¢ Š— ’ ’œ Ž¡™ŽŒŽ ‘Š ‘Ž Ž›–œ ˜ ›ŽŽ›Ž—ŒŽ ˜ž• ‹Ž ’—Š•’£Ž ‹¢ Ž— ™›’• ‘Ž œž¢ ’œ Š›ŽŽ ˜› Œ˜–™•Ž’˜— ‹¢ Ž— ‘Ž œŠ–Ž Œ˜—œž•Š— ’•• ‹Ž Ž—›žœŽ ’‘ ‘Ž Šœ” ˜ ™›Ž™Š›’— ‘Ž Ž—Ž Š‹•Ž —Ž›¢ ŠœŽ›™•Š— ‘Ž •˜— Ž›– Ž—Ž›¢ ™˜•’Œ¢ ˜Œž–Ž— Š— ‘Ž Ž—Ž Š‹•Ž —Ž›¢ ŠœŽ›™•Š— Š›Ž œŒ‘Žž•Ž ˜› Œ˜–™•Ž’˜— ‹¢ ‘Ž Ž— ˜ Š— –’ ›Žœ™ŽŒ’ŸŽ•¢  –Š¢ ‹Ž —˜Ž ‘Š Š —Ž œ¢œŽ– Œ˜œ Š—Š•¢œ’œ ’•• ‹Ž ™Ž›˜›–Ž Šœ ™Š› ˜ ‘Ž ™›Ž™Š›Š’˜— ˜ ‘Ž ŽŠ’•Ž Ž—Ž›¢ ™˜•’Œ¢ ˜Œž–Ž— 5.5 Summary & Conclusion ŽŠœž›Žœ ‘Š ˜ž• œž™™˜› ˜ŸŽ›—–Ž— —Ž›¢ ˜•’Œ¢ Š›Ž Œ˜—Š’—Ž ’— ‘Ž Œ’˜— •Š— Š›Žœ ˜› ‘Ž œŽ’— ž™ ˜ ŸŠ›’˜žœ ™˜ Ž› œŠ’˜—œ Š— ‘Ž —ŽŒŽœœŠ›¢ •ŽŠ• ›Š–Ž ˜›” ˜› ‘Ž ›Žž•Š’˜— ˜ ‘Ž Ž—Ž›¢ œŽŒ˜› ‘ŠŸŽ ‹ŽŽ— ŽœŠ‹•’œ‘Ž ‘ŽœŽ Š›Žœ Š›Ž Œ˜‘Ž›Ž— ’‘ ‘Ž ’–ŽŠ‹•Ž ŽœŠ‹•’œ‘Ž ‹¢ ˜ŸŽ›—–Ž— ’— Œ˜‹Ž› ‘Ž –’•Žœ˜—Žœ Š›Ž Šœ ˜••˜ œ o Ž›–œ ˜ ›ŽŽ›Ž—ŒŽ ˜› •˜— Ž›– —Ž›¢ ˜•’Œ¢ ™›’• o ˜–’— ’—˜ ˜™Ž›Š’˜— ˜ ™˜ Ž› œŠ’˜—œ Šœ ™Ž› Š‹•Žœ Š— o ›˜Œ•Š–Š’˜— ˜ Š— •ŽŒ›’Œ’¢ Œœ Ž— o Šœœ’— ˜ ‘Ž —Ž›¢ ’Œ’Ž—Œ¢ ’•• –’ o ›Ž™Š›Š’˜— ˜ ŽŠ’•Ž —Ž›¢ ˜•’Œ¢ Ž— o Ž—Ž Š‹•Ž —Ž›¢ ŠœŽ›™•Š— –’ o œŽ ˜ ‹’˜žŽ•œ ˜› ›Š—œ™˜›Š’˜— ’— Šž›’’žœ Outline of Energy Policy 2007-2025 April 2007 30  –Š¢ ‹Ž —˜Ž ‘Š ‘Ž Œ’˜— •Š— ’•• ™ŠŸŽ ‘Ž Š¢ ˜› ‘Ž ’–™•Ž–Ž—Š’˜— ˜ ™›˜™˜œŽ ™˜•’Œ’Žœ Š— ’œ Œ˜‘Ž›Ž— ’‘ ‘Ž œ›ŠŽ¢ ˜ ˜ŸŽ›—–Ž— ˜› ‘Ž ŽŸŽ•˜™–Ž— ˜ ‘Ž Ž—Ž›¢ œŽŒ˜› ˜› ‘Ž œ‘˜› ˜ –Ž’ž– Ž›– •• œŠ”Ž‘˜•Ž›œ œ‘˜ž• ›ŽŠ•’£Ž ‘Š —˜ œ’—•Ž ™˜•’Œ¢ ‘’Œ‘ ‘Šœ ’›ŽŒ •’—”ŠŽ ˜ ‘Ž ˜ŸŽ›Š•• Ž—Ž›¢ ™˜•’Œ¢ œ‘˜ž• ‹Ž Š”Ž— ˜— ’œ ˜ — ’— ’œ˜•Š’˜— œ˜ Šœ ˜ ŠŸ˜’ Š—¢ Œ˜—•’Œ ’‘ ‘Ž ˜ŸŽ›Š•• ˜‹“ŽŒ’ŸŽ ˜ ‘Ž ’›ŽŒ’˜— ‘’Œ‘ ‘Šœ ‹ŽŽ— Œ‘Š›Ž ‘Ž œŽ ˜ ™˜•’Œ’Žœ ’— ‘’œ ˜Œž–Ž— ›Ž™›ŽœŽ— Š ™Š›Š’– œ‘’ ‘Š ˜ž• Š••˜ ‘Ž Œ˜ž—›¢ ˜ –ŽŽ Šž—’— Œ‘Š••Ž—Žœ ’— ‘Ž Ž—Ž›¢ œŽŒ˜› •• ‘Ž œŠ”Ž‘˜•Ž›œ ’— ‘Ž Ž—Ž›¢ ’—žœ›¢ ‘ŠŸŽ ˜ ‹ŽŠ› ’— –’— ‘Š ‘Ž›Ž Š›Ž Š• Š¢œ Œ˜–™Ž’— ’—Ž›Žœœ Š— ‘Š ‘Ž ‹Žœ ¢™Ž ˜ –Š›”Ž ’œ ‘Ž ˜™Ž— ˜—Ž œ˜ ‘Š Œ˜—œž–Ž›œ ŒŠ— ‹Ž—Ž’ ›˜– ‹Žœ ™›’ŒŽœ ‘Ž Š›Žœ ˜› ›Ž—Ž Š‹•Žœ ‘ŠŸŽ ‹ŽŽ— œŽ ’— Š— Š–‹’’˜žœ –Š——Ž› ’‘ œž’Œ’Ž— •ŽŠ ’–Ž ˜› ‘Ž– ˜ ‹Ž ŠŒ‘’ŽŸŽ ‘Ž ™˜•’Œ¢–Š”Ž›œ Š›Ž Œ˜—’Ž— ‘Š ’— ‘Ž Œ˜–’— ¢ŽŠ›œ ‘Ž Š™™›˜™›’ŠŽ ŽŒ‘—˜•˜¢ ’•• ‹ŽŒ˜–Ž ŠŸŠ’•Š‹•Ž Š Š˜›Š‹•Ž ™›’ŒŽœ œ Š Œ˜—Œ•ž’— —˜Ž ’ –žœ ‹Ž œŠ’ ‘Š ‘Ž Ž—Ž›¢ ™˜•’Œ¢ ˜ ‘Ž Œ˜ž—›¢ ‘Šœ ‘Ž ›˜˜ ˜‹“ŽŒ’ŸŽ ˜ –Š”’— Šž›’’žœ Ž—Ž›¢ Ž’Œ’Ž— ‘Ž›Ž ˜› ŽŠŒ‘ ž—’ ˜ ™›˜žŒŽ –’—’–ž– Ž—Ž›¢ ’œ žœŽ Š— ŠŒŒ˜›’—•¢ –’—’–ž– ŒŠ›‹˜— ’˜¡’Ž Ž–’Ž ˜ ‘Ž Š–˜œ™‘Ž›Ž Outline of Energy Policy 2007-2025 April 2007 31 Appendix 1 DEMAND AND SUPPLY FORECASTS FOR UP TO YEAR 2013 Year 2006 2007 2008 2009 2010 2011 2012 2013 CEB St. Louis (-5MW yearly as from 2008) 70,0 70,0 65,0 60,0 55,0 50,0 45,0 40,0 Fort Victoria I (-20MW 2006) 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Fort Victoria II (-17MW 2017) 17,0 17,0 17,0 17,0 16,0 16,0 16,0 16,0 Fort George (-21MW 2017,-21 2018), 128,0 128,0 128,0 128,0 123,0 123,0 123,0 123,0 Nicolay (Not retired over planning period due to low run hrs expected) 74,0 74,0 74,0 74,0 74,0 74,0 74,0 74,0 New Plant addition Semibase (30 FV 2008+……...) New Peak plant Hydro (Average of 59MW installed) 25,0 25,0 25,0 25,0 25,0 25,0 25,0 25,0 Sub Total 314,0 314,0 309,0 304,0 293,0 288,0 283,0 278,0 F.U.E.L. 27,0 27,0 27,0 27,0 27,0 27,0 27,0 27,0 FUEL New 20 MW 20,0 20,0 20,0 20,0 20,0 Beau Champ 22,0 22,0 22,0 0,0 0,0 0,0 0,0 0,0 Belle Vue 62,0 62,0 62,0 62,0 62,0 62,0 62,0 62,0 CTDS 30,0 30,0 30,0 30,0 30,0 30,0 30,0 30,0 CTSav 74,0 74,0 74,0 74,0 74,0 74,0 74,0 CTSav 3 15 MW 15,0 15,0 15,0 15,0 15,0 15,0 Medine 18,0 18,0 18,0 Waste to energy 20,0 20,0 20,0 20,0 20,0 CT Power new IPP Coal 50,0 100,0 100,0 100,0 100,0 CPP retirements -15,0 -15,0 -25,0 -25,0 -30,0 -30,0 -30,0 Sub Total 141,0 200,0 215,0 273,0 323,0 336,0 336,0 336,0 Grand Total Effective 455,0 514,0 524,0 577,0 616,0 624,0 619,0 614,0 Breakdowns 35,0 35,0 35,0 50,0 50,0 50,0 50,0 50,0 Maintenance (Scheduled) 60,0 60,0 60,0 60,0 60,0 60,0 60,0 60,0 Effective Capacity available 360,0 419,0 429,0 467,0 506,0 514,0 509,0 504,0 To date May 06 Forecast 365 382 401 420 437 456 478 503 Peak plus10% Spinning reserve 402 420 441 462 481 502 526 553 Capacity margin -42 -1 -12 5 25 12 -17 -49 EPP Capacity balance Year 2006 2007 2008 2009 2010 2011 2012 C.E.B. St.louis( -10 2009, -10 2011,-5 2012, -5 2013) peaking only as from 2009 retire 2014 75 90 75 20 15 15 15 New St Louis 41MW(2006) 210 190 150 125 125 110 125 F.Victoria 1(Mirrlees) peaking emergengy only 2006 retire 2009 0 0 0 0 0 0 0 F.Victoria 2(M.A.N.) 80 80 80 40 40 55 60 F.George 1 125 110 110 80 50 60 60 F.George 2 125 110 120 90 50 60 60 F.George 3 135 125 120 90 70 60 70 F.George 4 135 130 120 90 70 60 70 F.George 5 135 130 125 90 70 60 70 Nicolay 25 21 22 25 26 22 25 Hydro(normal year) 90 90 90 90 90 90 90 Sub/total CEB Generation 1135 1076 1012 740 606 592 645 Used on works CEB 45 43 40 30 24 24 26 CEB Sent Out 1090 1033 972 710 582 569 619 IPP/CPP CTDS 30MW 200 180 200 175 175 175 200 CTSav 74MW (2007) 0 350 400 350 300 350 400 FUEL new 20MW 0 0 0 330 300 300 330 Medine 120 120 C.E.L. 110 110 110 0 0 0 0 C.T.B.V. 375 325 350 325 325 325 325 F.U.E.L. 160 160 160 0 0 0 0 CTSav 3 0 0 110 110 110 110 110 Waste project 140 140 140 140 Proposed CT IPP (50MW 2009,50MW 2010) 0 330 660 660 660 S.E.(Continuous) (2007 -12,2011 -18,2012 -24) 140 92 76 40 40 20 20 Sub/total IPP sent out 985 1217 1406 1800 2050 2200 2305 Forecasted sent out 2075 2250 2378 2510 2632 2769 2924 Line losses 195 203 204 211 216 224 234 Sales forecast 1928 2047 2173 2299 2416 2544 2690 EPP ENERGY balance (GWH) Outline of Energy Policy 2007-2025 April 2007 32 APPENDIX 2 DRAFT TERMS OF REFERENCE FOR THE PREPARATION OF THE DETAILED LONG TERM ENERGY POLICY FOR THE REPUBLIC OF MAURITIUS Page 1 of 8 Energy Policy for Mauritius, 2007-2025 Terms of Reference 1. The Mauritian Economy The Republic of Mauritius has set an ambitious objective to move away from a 'preference based' economy to one which will be globally competitive. In order to achieve this objective, it has embarked on a major programme of reforms with the following main thrusts: (i) the opening up of the economy to encourage and attract investment, know- how and technology; (ii) the overhauling of the present investment environment through the Business Facilitation Act so as to place Mauritius within the top 10 countries in the Doing Business Report; and (iii) the re-structuring of the economy through the re-engineering of existing sectors such as sugar, tourism, textile and encouraging the emergence of new cluster of activities around the Seafood Hub, Duty Free Shopping, Knowledge Hub, Information and Communication Technology, Integrated Resorts Schemes, etc. In order to sustain the objective of becoming globally competitive, Mauritius has to upgrade its entire infrastructure facilities as well as develop a coherent energy strategy. In this respect, the outline energy policy for the horizon up to 2025 has been prepared by Government in consultation with stakeholders such as the Ministry of Finance and Economic Development, the Ministry of Agro-Industry and Fisheries and the CEB amongst others. The background taken into account in preparing the document included the Multi Annual Adaptation Strategy for the Sugar Industry which was submitted to the EU. The proposed energy policy would have to follow the thrust of the outline and be more comprehensive in its approach. Page 2 of 8 2. Overall Objectives The main objectives of Government in preparing a National Energy Policy are to: (i) Broaden the energy base of the country so as to reduce dependence on imported energy carriers thereby limiting the vulnerability of the Republic of Mauritius to imported fossil fuels and their volatile prices while factoring in a reasonable tradeoff relating to the costs of such a policy relative to the risks; (ii) Allow optimal use of local and renewable energy sources by ensuring that any alternative energy projects (e.g. ethanol) are evaluated on the basis of providing benefits to consumers (iii) Enhance protection and preservation of the environment, in particular the reduction of the emission of greenhouse gases; (iv) Promote energy efficiency including in the Transportation sector; (v) Provide affordable energy to all sectors of the economy while ensuring the financial sustainability of the electricity public utility. (vi) Provide for transparency in Independent Power Purchase agreements (vii) Promote economic growth and job creation by ensuring reliable supply of energy at internationally competitive prices; (viii) Democratize energy supply by opening up the provision of power to new entrants by developing a transparent and open system that encourages new entrants including SMEs to compete to offer energy products. These objectives must be underpinned by real targets in terms of reduction in the use of fossil fuels, enhanced use of local and renewable sources, improved energy efficiency and the reduction of emission of green house gases arising from energy consumption. Given the limited global oil reserves, it is important to chart out an energy policy and formulate strategies for the short-to-medium and long term that would reduce, as far as possible, the reliance of the country on imported oil for electricity production and transportation. However, any such policy needs to be balanced and should factor in long term fuel prices after removing volatility. In this regard, it is considered that the policy framework should be multi-pronged, in keeping with the constraints that the country has, in terms of its geographical location, availability of other less volatile and better distributed reserves of fossil fuel such as coal, energy resources available locally and the availability and competitiveness of technologies in the marketplace for their conversion into electricity and for use in transportation and industry. Page 3 of 8 In addition, in formulating the energy policy the following essential criteria have to be taken into account: (i) future energy demand; (ii) economic reforms; (iii) energy production at prices that are internationally competitive and that require no subsidy from taxpayers except for an explicitly calculated and transparent environmental and/or social benefit; (iv) economic and financial viability of all public sector operators, particularly the CEB; (v) the imperative to attract foreign investment into the country including the energy sector; (vi) environmental considerations; (vii) sugar sector reforms and linkage to electricity generation; and (viii) transportation and industrial development policies and linkage to energy use 3. Current Regulatory Framework The current regulatory framework consists of the CEB Act and the Electricity Act 1939 as amended to be replaced by the Electricity Act 2005. Other relevant legislations pertain to the Sugar Industry, namely the Sugar Industry Efficiency Act, as amended in 2007, and the Environment Protection Act 2002. Relevant policy documents include: 1. Outline Energy Policy 2007-2025 2. Presidential address 2005 3. Multi Annual Adaptation Strategy 2006 – 2015 4. White Paper for Environment Policy 2007 5. National Environmental Strategy 1999 6. Port Masterplan 2002-2025 7. Integrated National Transport Strategy Study 2001 8. Consensus Paper on Transport 2006 4. 3. The Energy Policy Document The Energy Policy is expected to cover the following:- (i) an energy sector vision up to 2025, in line with existing strategic policy; (ii) strategic priorities for Government to take timely decisions with a view to ensuring security of energy; (iii) improved legal and regulatory framework to promote private sector investment in an open, competitive and transparent manner in line with best international practice; Page 4 of 8 (iv) policies to address environmental and social impacts related to the energy sector that are explicit, transparent and costed with a direct link to the green taxes required to pay for such subsidies; (v) state-of-the-art technologies to achieve efficient energy use taking account of economic and financial viability; and (vi) awareness about the issues/options/challenges and ensure all stakeholders participation for sustainable development. 5. Terms of Reference The Terms of Reference are broken down into two parts. First the immediate requirement in terms of energy policy and secondly in depth studies which will be conditional upon certain conditions being met at the end of the first phase. Throughout the assignment, the Consultant is expected to refer to the document Outline Energy Policy 2007 to 2025 Towards a Coherent Strategy for the Development of the Energy Sector in Mauritius as it provides the gist of Energy policy adopted by Government in April 2007. The Consultant will be expected to consult stakeholders including the Ministries, parasatal organizations, and NGOs concerned, as directed by the Client, during the preparation of the policy document. The issues that will need to be addressed by the Consultant in the first phase of the assignment comprising the development of an Energy Policy for the Republic of Mauritius shall include, but not be limited to, the following: Part I: Elaboration of Energy Policy: 1. Economic and Financial Analysis (i) To assess economic and financial implications of the various options and issues discussed in sections 2 through 8 below; (ii) To evaluate the economic, environmental and financial costs and benefits of proposed IPPs plants relative to the plans of CEB 2. Energy Supply (i) To identify and analyse the challenges, opportunities and threats faced by Mauritius in terms of availability, reliability, transportation and prices of primary sources of energy; and (ii) To formulate the policy and strategic orientations for ensuring the security, reliability, diversity and quality of supply, including: a. options for the right energy mix and strike a balance between renewable and non-renewable sources of energy taking account of costs, balanced risk assessment and need to produce energy at internationally competitive prices; Page 5 of 8 b. the role of IPPs in the overall context and to highlight the opportunities and threats they may represent to the national interest, particularly what is required to ensure an open and transparent system for considering their offers; c. an assessment of the sectoral energy prices as well as its implication on the country's international competitiveness; and d. energy pricing strategies based on affordability to end-users and financial sustainability of the electricity public utility. 3. Energy Utilisation (i) Review the demand and supply matrix and power sector capacity expansion plan for energy up to 2025 taking into account the need for green taxes and measures to induce conservation; and (ii) Assess sectoral energy use and advise on state of the art technologies with a view to encouraging efficient use of energy so as to maintain the country's international competitiveness. (iii) Propose policies for implementing energy efficiency in the transportation sector and in electricity including reduction of losses in transmission and distribution. (iv) Develop a policy framework and suggest models for the development of an Energy Efficiency Bill 4. Electricity Sector (i) Ascertain the operational and technical inefficiencies of the present generation facilities and their viability of remaining into operation; (ii) Determine the least cost economic dispatch/load of electricity generation, transmission and distribution (iii) Advise on the type, sequencing and timing of new generation facilities and assess the cost implications for consumers (iv) Suggest reservation prices based on the above analysis which IPP proposals would not be considered; and (v) Propose an investment programme for the new generation facilities based on the above analysis with due regard to protecting consumers and ensuring financial sustainability of the electricity utility. 5. Transportation (i) Propose a biofuels policy in line with the Mauritian context and outline policy (ii) Identify the strategic options for introducing different types of biofuels including E10, E20, biodiesel and recommend the best possible course of action taking into account the economic context Page 6 of 8 (iii) Assess the possibility in the long term for equal taxation of carbon emissions from various sources of fuel; (iv) Review major aspects of land transport (public and private) and identify policies that would enhance efficiency and energy saving in the sector in the short term, taking into account social acceptability. (v) To chart out a biofuels strategywhich will be an integral part of future energy policy 6. Environmental Aspects (i) Identification of strategic priorities for availability of sustainable energy for end users based on - the supply of renewable sources of energy and improved energy efficiency; introduction and/or expansion of existing green taxes to reduce environmental impacts sustainable transport systems; public awareness campaign on efficient use of energy; (ii) To assess the environmental impact of future energy production, distribution and use on both climate change and local environment; (iii) To devise incentives for enhanced use of renewable energy or disincentives for fossil fuel based electricity generation; (iv) Identify means and ways of introducing demand side management and promote research into technology appropriate for the context of Mauritius and Rodrigues. 7. Institutional and Regulatory Framework (i) Review the present policy and institutional framework in the energy sector based on the findings of the study and make proposals for changes therein to enhance their effectiveness. (ii) Harmonize and improve the legal and institutional framework with a view to clarifying the roles and responsibilities of the different energy agencies and to provide high degree of transparency and clarify for private sector participation and PPP projects in the energy sector. (iii) Propose institutional and regulatory changes (and if necessary legislative action) to ensure an open, transparent and competitive process for seeking and selecting private sector involvement in the production of energy products; (iv) To suggest how the Regulatory Body should, as and when required, carry out its due diligence to assess the viability of new projects, submitted in fulfilment of Government policy objectives, and their impact on tariffs while safeguarding the interests of all stakeholders including taxpayers and consumers. Page 7 of 8 8. Action Plan (i) Develop a practical and coherent action plan for the ensuing years till 2025 based on economic, financial, social and environmental sustainability. (ii) The Action plan shall provide definite specific, measurable, achievable and realistic targets for the short, medium and long term i.e. for years 2010, 2015, 2020, 2025, 2050 in relation to a. Implementation of biofuels (including ethanol) policy b. Promoting efficiency in the transportation sector c. Implementing the Energy Efficiency Bill d. Construction of power plants e. Energy and Electricity Mix In so doing, the Consultant shall review targets set in the Outline Energy Policy 2007 to 2025 Towards a Coherent Strategy for the Development of the Energy Sector in Mauritius and adjust them if necessary Part II: Further Detailed Studies Additional studies which may form a second part of the assignment subject to satisfactory completion of the first part of the consultancy services and availability of funds include: (i) A Masterplan for Implementation of Renewable Energy Policies taking into account economic and financial analysis (ii) Preparation of a strategic environment assessment of the Energy Policy; (iii) Develop an Energy Efficiency Bill appropriate to the Mauritian Context 6. Time Frame The study should be completed within a period of 6 months. 7. Reporting A Steering Committee, chaired by the Ministry of Public Utilities and comprising amongst others, of representatives of the CEB and Ministry of Finance & Economic Development, will supervise the project. The Consultant shall report to the Committee during the study. Page 8 of 8 8. Workshop The Consultant shall submit his recommendations, the rationale behind those recommendations and their implications to Government in a workshop. 9. Deliverables The following documents shall be submitted by the Consultant: Deliverables Date due (after recruitment of the Consultant) Draft Inception Report 3 weeks Draft final Inception Report 6 weeks Inception Report 8 weeks Draft Energy Policy document and Action Plan 16 weeks Draft Final Energy Policy document and Action Plan 20 weeks Final Energy Policy document and Action Plan 24 weeks All deliverables, whether draft or final, shall be submitted in three hard copies together with a soft copy in Word format on CD. 10. Expertise Required The core team of experts required shall be as follows: 1. Energy Policy Specialist 2. Power Specialist 3. Financial/Economic Analyst 4. Environmental Economist/Specialist 5. Transport Economist/Specialist 6. Institutional and Regulatory Expert Outline of Energy Policy 2007-2025 April 2007 33 APPENDIX 3 SYSTEM COST ANALYSIS FOR THE CEB Methodology and rationale for the assessment of expansion scenarios for the Mauritius Power Sector in the context of the Capacity Expansion Plan 2006-2013 Prepared by Central Electricity Board and Ministry of Public Utilities April 2007 1.0 ,ntroduction Following the submission of the paper entitled Electricity Generation Policy and Power Sector Expansion Plan for 2006-2013, a request was received to provide further details on the approach used to analyse the proposals contained in that document. Accordingly, this paper prepared by the CEB and the Ministry of Public Utilities describes the approach and methodology used in assessing different scenarios resulting from a set of proposals received from the private power sector. Within the present Government policy framework and constraints in the Central Electricity Board (CEB) generation dispatch system, plausible scenarios were derived and assessed. Projects proposed vary in nature and technology with their specificities. An in-house Excel generation model has been developed for this purpose. Results produced have given very good indications of the cost impact of the scenarios. The results are comparable in this specific context under a set of reasonable assumptions at time of the study. Only pre-feasibility figures and information available at the time of this study has been used. As it is crucial to ensure the financial viability of the CEB and the country's economy at large, results provide a comparative insight to decision makers to make informed decisions. 2.0 %ackground In view of the serious challenges posed by the hiking up of oil prices and the rising cost of energy, Government has reviewed the energy policy for meeting the future requirements of the country. Consequently the previous Electricity Plans prepared prior to 2005 are now superseded. The proposed policies will be the drivers of developments in the Energy Sector. The Presidential Address in 2005 set the tone for the future policy guidance for the electricity generation sector. The key for the CEB is its financial sustainability, which is intimately linked with a diversification of the energy basket and providing affordable electricity to the customers to enable the economy to forge ahead. By encouraging the optimal use of bagasse as fuel and other renewable sources, this will largely benefit the country's economy in reducing the foreign exchange cost for servicing the energy bill, availing revenues from carbon credits and bringing efficiency to the sugar production activity that is so vital to Mauritius. In the wake of this new plan, Government will actively seek to engage in strategic partnerships, which would guarantee the financial sustainability of the CEB and would be in accordance with the declared policy of Government to increase its share in the generation sector. 3.0 0ethodology 3.1 Demand forecast In many power utilities, it is common practice to derive the electricity sales forecast from available GDP forecasts because it is known that growth in the electricity demand is related to growth in the economy. However, in the present context, such an approach is not deemed appropriate because it is believed that a ten-year GDP forecast, if available, would not be reliable enough in a fast- changing economy like ours. Therefore, the method adopted by the CEB to forecast the electricity sales (GWh) and capacity demand (MW) over the long-term does not use GDP as input. This approach is supported by the fact that energy demand has been growing faster than GDP over the past decade. While GDP has grown by 85% from 1992, electricity sales have grown by 166% over the same period. Hence GDP and Energy growth are decoupled in our economic context (Refer to Graph 1). The CEB's approach consists of forecasting the energy requirement based on trends in customer numbers and specific consumption by customer category. Major development projects that have a direct or indirect incidence on electricity consumption over the short-term are also taken into account. The capacity requirement is then derived from the energy by applying an energy-to-power regression formula. The result from this technique has been validated against a secondary method that makes use of expected changes in load duration curves over the planning horizon (CEB, 2006). Source: CEB Load forecast 2006-2013 Year 2006 2007 2008 2009 2010 2011 2012 2013 Peak Power ( MW) 365 382 401 420 437 456 478 503 Annual Increment (MW) 17 19 19 17 19 22 25 Energy demand (GWh) 2129 2250 2378 2510 2632 2769 2924 3092 Annual Increment (GWh) 121 128 132 122 137 155 168 Ž–Š— ˜›ŽŒŠœ 3.2 Demand pattern The CEB plants cater for the partly for the semi base and wholly for the peak demand requirement and the system reserve margins required for maintenance and breakdown. By virtue of their technology, the IPP coal/bagasse plants cannot be started and stopped at leisure. Hence they cater for the base demand, while the CEB heavy fuel diesel generators supply the semi base and peak demand. As per the forecast, some 150 MW of new capacity, both base and semi base, will be required over the period up to 2013 in order to meet demand. 3.3 Present situation In 2006, the CEB registered a peak power demand of 367 MW and supplied some 2090 GWh of energy with some 455 MW of effective capacity available. More than 50% of generation came from fuel oil only. This justified the shift to coal/bagasse from a financial and economic standpoint. In that year, Fort George power station, the only oil base load plant provided for about 32 % of power needs alone (Figure A). Figure B in the annex shows a typical load duration curve. Total energy demand is made up of some 50 % of base energy, 45 % semi base energy and 5 % of peak energy. It is interesting to note that the average growth in peak demand is twice as much as the base demand (Figure C). This warrants the introduction of more semi base plants. But with the high oil price, high fixed cost coal/bagasse plants can now compete favourably with diesel plants even at load factors as low as 40 to 50 % utilization factor (Figure D). With the prevailing high price of fuels, the marginal cost of electricity from coal is half that from fuel oil. Figure E shows that the evolution of our fuel mix is clearly away from fuel oil. Hence the justification to favour coal in the base load and limit fuel oil generators to semi base and peak operation. However, the The side figure illustrates a typical daily demand curve. The highest peak is the maximum power demand and the area under the curve represents the total energy dispatched. Each colour highlights the individual contribution of each power plant. This demonstrates the uneven nature of the daily demand profile. The daily minimum power is about 175 MW average base load and 350 MW peak -- that is, a ratio of about two between the peak and the minimum demand. This indicates that we need about 175 MW of modulable capacity which can be switched on and off daily therefore providing greater flexibility. The IPP plants run continuously and cater for the base demand only and have limited flexibility whereby their output can be reduced to 30% to 50% only. CENTRAL ELECTRICITY BOARD SYSTEM CONTROL PRODUCTION CURVE 0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 0 0 :0 0 0 1 :0 0 0 2 :0 0 0 3 :0 0 0 4 :0 0 0 5 :0 0 0 6 :0 0 0 7 :0 0 0 7 :3 0 0 8 :0 0 0 8 :3 0 0 9 :0 0 0 9 :3 0 1 0 :0 0 1 0 :3 0 1 1 :0 0 1 2 :0 0 1 3 :0 0 1 4 :0 0 1 5 :0 0 1 6 :0 0 1 7 :0 0 1 7 :3 0 1 8 :0 0 1 8 :3 0 1 9 :0 0 1 9 :3 0 2 0 :0 0 2 1 :0 0 2 2 :0 0 2 3 :0 0 0 0 :0 0 TIME ( Hrs ) LOAD ( MW ) CPP CTBV B CHA FUEL CTDS CTSav CT Power FGEORGE STLOUIS FVICTOR NICOLAY HYDRO CHAMPNG MINIMUM LOAD at 04.00 hrs : 200 MW MORNING PEAK at 11.00 hrs : 450 MW EVENING PEAK a t 18.30 hrs : 500 MW ˝ ŽŠ” ŠœŽ investment cost in new plants against repayment of loans and depreciation of existing asset must be carefully accounted. At present some 140 MW are supplied by Independent Power Producer (IPPs) in the system. In all, about 340 GWh of electricity is derived annually from bagasse from the cogeneration plants of the sugar factories. There is still scope to increase the total output from bagasse to a maximum of 600GWh annually by increasing the efficiency of the IPPs. This in itself represents a potential national foreign exchange saving of some 20 Million USD in the annual energy bill. It must be highlighted that this increase in bagasse output will have to be accompanied by almost an equal amount of coal-based energy. Base and semi base energy actually derived from Fort George power plant will be thus displaced, reducing our dependency on fuel oil. 3.4 Proposals from IPPS To meet demand, the CEB had elaborated an expansion plan where it proposed to redevelop its existing Fort Victoria medium speed diesel oil plant (30MW) along with a 2 X 50MW new coal power plant at a green field site and delay the retirement of some of its medium speed diesels. We call this the Base Case. The sugar industry proposed to install 4 X 42MW of new coal/bagasse plants similar to those already in construction at the Savannah plant. This would be more than enough to meet demand, but would have high financial impact on the overall generation cost. This is termed Scenario 1. After protracted discussions at various technical meetings with all stakeholders it has been concluded that the sugar industry can meet the centralization objective while raising the bagasse energy output to the 600 GWh target with only 35 MW net of new installed capacity (15MW at Savannah, 20/22 MW at FUEL and 15/21 MW at Medine with the existing 20MW at CEL Beau Champ closing down). This is termed Scenario 2 in this report. This would allow lower capital investment and make room for higher efficiency coal dedicated plants to be pursued. Screening curve, figure D, illustrates the higher efficiency and lower cost of the dedicated coal plant. Hence a 2 X 50 MW coal plant will be set up as an IPP with the CEB as equity partner under this Scenario 2. A waste to energy project is also under consideration for 20 MW and about 150 GWh of energy would be made available. This project is an alterative to landfill and the energy generated there from is a spin off, and therefore will be simple energy take and the capacity is not considered firm as it is largely influenced by feed rate and quality of waste. It will not be appraised in this study, as this requires a full economic analysis including the waste disposal and environmental aspects. Similarly a 25MW wind farm project has also been proposed and will be considered according to its merit in due course. 3.5 Summary of Scenarios The three scenarios for which the system generation cost over 2006-2013 have been calculated are: - ¾ Base Case Scenario 30 MW of medium speed diesel at Fort Victoria in 2008 50 MW of Coal fired plant at new site in 2010 50 MW of Coal fired plant at new site in 2012 ¾ Scenario 1, all sugar proposal 42MW of Coal/bagasse fired plant at Savannah in 2008 42MW of Coal/bagasse fired plant at FUEL in 2009 42MW of Coal/bagasse fired plant at FUEL in 2010 42MW of Coal/bagasse fired plant at Medine in 2011 ¾ Scenario 2, compromise 15 MW Coal/‹ŠŠœœŽ fired plant at Savannah in 2008 20/22MW of Coal/bagasse fired plant at FUEL in 2009 (conditional to existing 20MW at CEL Beau Champ closing down) 15/21 MW of Coal/bagasse fired plant at Medine in late 2011 50MW new coal fired plant in 2009 50MW new coal fired plant in 2010. 3.6 Detailed Methodology for Scenario Analysis The methodology used for analysis comprises first an assessment from the technical angle. In this respect, the supply demand matrix is used to establish the demand/supply balance, whereby account is taken of the criteria in line with prudent electricity supply practices in terms of reserve CEB needs for programmed maintenance, unexpected breakdowns and instant fluctuations in demand, met by what is commonly called spinning reserve capacity. After arriving at the demand supply balance, a financial exercise is undertaken to determine the cost implications for the CEB whereby the total costs of generation over the period 2006-2013 are determined for the base case and for each scenario; Then the implications for the country in terms of the foreign exchange outflow for fuel import for the base case and for each scenario are determined. It may be noted that the foreign currency outflow for equipment purchase and transfer of return on foreign equity is not assessed for lack of sufficient information in the project proposals. Thus the study of the costs associated with the 3 scenarios and the base case have been undertaken, with respect to: · Generation costs; · Possible revenue from carbon credits; and · Forex outflow with regard to coal and fuel oil imports only. 3.6.1 Capacity balance Table A illustrates a typical static capacity balance meeting demand. Allowance is made for retirement of old plants, 10% of spinning reserve, and about 100MW for maintenance and breakdown reserves. 3.6.2 Energy balance Table B illustrates a typical energy balance after introducing the new plants under a specific scenario. Allowance is made for energy used on works, transmission and distribution losses and contractual requirements under the current take or pay contracts. This is worked out to match the requirement of base, semi base and peak energy as dictated by the load duration curve. Economic dispatch of plants as per their merit order is also ensured. Assumptions In analyzing the scenarios, certain essential assumptions have been made in order to be able to compare and analyse the projects. Thus all costs have been determined in constant rupees and constant US dollars, where applicable, with an exchange rate of Rs 31 to the dollar and Rs 40 to the Euro. No costs have been escalated given that the forecast of the price of commodities such as oil and coal, which have significant weightage in the cost structure, cannot be done with certainty, and any attempt to do so would be merely speculative or guess work. Furthermore, no discounting of costs has, therefore, been carried out. Other assumptions have also been made when applying the above methodology. These are: ¾ A constant price model is used to compute the cumulative generation cost over the period 2006-2013 without assuming escalation and discount factors ¾ The annual generating cost is calculated using the fixed, variable and financial costs ¾ Prices used for the existing CEB and IPP plants are at 2006 economic conditions except for CTSav, which is at 2007 ¾ Prices for coal and waste to energy proposed plants are based on pre- feasibility offers (Information submitted by the promoters are insufficient to make proper comparative analysis. Therefore more accurate analysis will have to be conducted after feasibility studies are completed) ¾ Financial and operating costs for the proposed plants from the sugar industry are based on CTSav submissions ¾ Cost for the new CEB coal units are assumed to be similar to the CT Power proposal and the proposed Fort Victoria project cost is taken from the CEB consultant's feasibility study ¾ CO2 emission avoided with bagasse and municipal waste electricity generation: 1.5 kg/kWh; and potential credit for CO2 avoided: 10.5 EUR/tonne of CO2 (70% of current EU rate) ¾ Fuel oil price used is 357 USD per tonne (equivalent to USD 71/barrel) and Coal price of 55USD per tonne ¾ Exchange rates: 1 Euro = Rs 40 and 1 USD = Rs31 ¾ Growth of energy demand: 6.2% per annum ¾ Growth in capacity: 4.5% per annum ¾ Prices for all IPPs are assumed as per 2006 tariff ¾ Operation cost for existing plants CEB plants as at 2006 used ¾ Yearly finance charges and depreciation cost of CEB assets is also considered. 3.7 Generation cost simulation For each scenario, the total generation cost has been calculated using an in- house Excel calculation model over the period 2006-2013 based on current demand forecast and prevailing economic conditions. The methodology consisted in working out a Capacity balance table to meet power demand, then calculating the corresponding Energy dispatch and finally computing the Total cost of generation for all the years in the study. . 4.0 5esults The results of the analysis are presented in the table below. It is seen that Scenario 2 is marginally more expensive to the CEB than the base case, Summary of estimated costs over period 2006-2013 CEB Base Scenario 1 Scenario 2 Rs (billion) Rs (billion) Rs (billion) Total Generation Cost 57,24 60,65 57,26 The Ranking of the proposals is as follows in terms of cost to the CEB only: - 1. CEB base case 2. Scenario 2 3. Scenario 1 5.0 &onclusion Scenario 1 comprising all initial proposals from the Sugar Industry is the most expensive one and is therefore discarded. Scenario 2, which comprises 3 power plants from the sugar sector and two coal fired plants, is marginally more expensive than the CEB base case, and has the advantage of accommodating all the stakeholders, thereby enabling the optimal use of bagasse while reducing our dependency on fuel oil. In addition, the CEB's dire financial situation would not allow such huge investment without the private sector participation. Hence this solution is retained and recommended.