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FAO/UNEP/UN-Energy Bioenergy Decision Support Tool -
MODULE 3: Implementation and Operation
capacity development-building and dissemination activities
alongside the technology platforms themselves. It should be
noted that programmes and projects cannot substitute for sound
policies and institutions; even the best programmes and projects
cannot overcome major regulatory obstacles or economic policy
inequities such as subsidies for fossil fuels.
In some cases, a nationwide or region-wide bioenergy
programme will be almost exclusively based on a fundamental
policy objective established by the government. An example of
this is the Social Fuel Seal for biodiesel in Brazil, under which
biodiesel producers receive fnancial support if they source the
feedstocks from small farmers and meet certain associated
conditions
<Mod7-Innovative Approaches: Brazil Social Fuel
Seal>.
The expansion in biodiesel production is thus used as
a
development tool; application of these criteria aims to shift the
market towards socio-economic goals.
The screening of specifc projects for social, environmental and
economic/fnancial criteria is a different activity altogether and
is therefore addressed in a separate module
<Mod4-Project
Screening>
. Such screening is especially relevant when the
sources of investment are international and/or the products are
intended solely or primarily for export.
Integrating with Energy and Resource
Baselines
In order to be realistic and cost-effective, a bioenergy
strategy—as well as major bioenergy projects that are under
consideration—must be implemented in relation to overall energy
policies and the sector supply and demand options and scenarios
that support those policies. The energy options and scenarios
depend in turn on some reference system that includes a set of
baseline
assumptions and estimates. The
energy baseline
for a
country or region is based on assumptions about the availability
and cost of various raw materials, energy sources and conversion
technologies. The different types of baselines are discussed below
followed by a review of data requirements, bioenergy applications
and the process of baseline development itself. Defnitions and
examples are provided rather than proposing a specifc approach
or baseline structure; the structure and content of baselines will
vary considerably in relation to policy and strategy objectives.
ENERGY MARKETS AND BASELINES
The reference system or baseline that supports energy policy/
strategy must be linked to the bioenergy strategy development
in order to articulate implementation options; the baseline is built
up by combining energy demand and supply characteristics with
aspects such as infrastructure and trade, as shown in Figure 2.
The energy demand baseline provides a basis for understanding
the evolution of consumption trends and placing bioenergy
strategies in the context of future expected demand.
The energy supply “baseline” in a market-based economy is
rather different from the demand side: supply is expected to
adapt, expand and contract based on future demand. The
fexibility of suppliers to meet demand depends on many different
factors such as availability of infrastructure and market concen-
tration, and is characterised in economic terms by parameters
such as the elasticity of supply. Consequently, the picture on the
supply side is not so much a baseline but rather a construction of
indicators regarding the availability of various energy fuels/sources
and technology options, and the future possibilities for expanding
or transforming availability. International Trade and Transport and
Distribution Infrastructure are also typical elements in the baseline
analyses.
ENERGY DEMAND SECTORS
The supply and demand for energy is typically analysed across
end-use sectors, often including transport, industry, buildings,
agriculture, and others depending on the level of detail that
is desired. A rough schematic of typical demand sectors and
end-uses is provided in Figure 3. Within each sector, the various
end-uses or modes (in the case of transport) or production plants
(in the case of energy/transformation) can then be broken out. The
energy/transformation sectors are not demand/end-use sectors;
they provide intermediate energy sources (heat, electricity, gas)
that are used in the other sectors, while also creating a certain
level of internal demand (sometimes counted as losses in typical
energy accounting) as part of the production processes.
It is important to remember that the demand is NOT for energy,
but rather for energy services. In the case of transport, the service
is the movement of people or goods from point A to point B. In
the case of cooking and buildings, the service may be to cook
X amount of food for Y people. For example, effcient cooking
stoves or improved irrigation devices will deliver the same service
with less energy consumption. Switching to options that are
more effcient from an end-use or demand perspective is positive
in environmental and health terms and is often economically
Energy Market Characteristics
Demand
International
Trade
Transport and
Distribution
infrastructure
Exports
Imports
Fuel/
Technology 1
Fuel/
Technology 2
Sector
and/or
End-use 1
Sector
and/or
End-use 2
Supply
(Domestic)
Electricity
Grid
Transport
Options
NOTE: Example only - the number and type of options (bottom row) will vary with user requirements
Figure 2: Example disaggregation for energy and resource baseline