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Energy II IQC Support Task Order

Assistance to the Government of Rwanda in Establishing a Fuel Cost Pass-Through Mechanism and Developing a Tariff Methodology

On March 1, 2005, The World Bank signed an Emergency Electricity Rehabilitation Project Loan for Rwanda. In order for this loan to become operational, a CORE Tariff Specialist, in conjunction with the Rwanda Utility Regulatory Agency (RURA) and the leading national private power producer, Electrogaz, developed a fuel cost pass-through mechanism. CORE performed this work under the Assistance and Advisory Services for Energy Sector Transformation (AASET) Task Order in May, 2005.

The next phase of this work is being implemented by CORE under the Energy II IQC Support Task Order. During this phase, CORE’s tariff experts will develop a methodology for a new tariff mechanism, apply it to Electrogaz operations, train RURA staff in its proper applications, and develop guidelines and procedures to encourage public participation and involvement in the tariff reform process.

The mechanism of the Support Task Order under the Energy II IQC allows CORE to provide the USAID Missions and Bureaus with fast, expert responses to address the issues of energy project financing, energy and environmental policy change, transfer of various clean energy technologies, and capacity building related to the energy and environmental sector reform and management in the developing countries.

The Support Task Order is designed to provide short-term services on a quick turnaround basis, both under direct financing from the USAID/EGAT/OI&E and through buy-in mechanisms, in the following areas:

Energy sector reform, including planning, restructuring, regulatory development, and privatization
Energy efficiency, energy and environmental management
Fossil fuel sectors
Regional energy planning, trade, and energy security
Renewable and alternative energy sources
Pollution mitigation and climate change
Rural energy services and community development
Technology transfer

Cyprus

CORE is implementing the U.S. Agency for International Development (USAID) funded "Resource Efficiency Achievement Program (REAP)" which is part of USAID’s larger Cyprus Partnership for Economic Growth (CyPEG) program. The overall aim of the CyPEG program is to improve the economic situation in the Turkish Cypriot Community, which should lead to better prospects of successful reunification between both parts of the Island. CORE International’s REAP project is aimed at improving the Energy and Water resource utilization of SME’s, in order to reduce their costs and hence make them more competitive both with imports in the domestic markets, and to help them export.

Cypress Most SME’s experience outages, shortages and poor quality of service, which cost them delayed production or problems in delivering customer service, for example in hotels. The overall effect of the REAP program, will be to try to reduce overall consumption in the community, and hence achieve increased availability of supplies. The objectives of the REAP project are to: (1) improve the efficiency, service standard, and the environmental impacts of the water and electricity services in the Turkish Cypriot Communities; (2) create a group of energy service companies (ESCOs) with links to U.S. suppliers; and (3) raise local awareness of conservation techniques.

The initial stages of REAP have allowed CORE to carefully select a group of SMEs in a number of sectors to participate in auditing training and to conduct preliminary audits. These audits will lead to the procurement and implementation of a number of Energy Saving Measures in each of the SME’s. These measures will be carefully monitored to ensure that the predicted savings are achieved, before a widespread dissemination exercise to replicate the measures, by the ESCOs, across the other SME’s in the chosen sectors. The ESCOs are currently being equipped with skills to allow them to roll out this approach. CORE International, in conjunction with the Association of Energy Engineers (AEE), has created a manual titled, “Overview of Energy Audits in Cyprus”, which will be used to guide the ESCOs through future audits. Eventually, it is anticipated that many of the ESCOs will become certified Energy Auditors by the AEE.