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Project Methodology and implementation
strengths and weaknesses
  Hassen Ben Hassine - ALCOR   November 29 th, 2012
Content:

1-Methodology – Key features
2-Weaknesses and Strengths
3-Learned lessons & next steps
improvement
 3.1-Energy data: Reliability, coverage and
sources
 3.2-Emission calculation constraints and
          requirements
 3.3-Estimation and analysis of energy
sector          subsidies
Methodology – Key features

     Step by step implementation based
      on consensus
     Training by steps spread over time
     Country team technical assistance
     Public-private partnership
conjunctural and
organizational weaknesses

     Political Situation in the Arab
      region
     Non-regular of participation and
      contribution of national experts and
      focal points in all WS
     Wider coverage of countries in the
      region
     Need of preliminary training on
      economic concepts and statistics
      use and interpretation.
strengths
 Implementation of a network of experts
  and expertise
 Technical and Scientific output -
  Country reports-
 Initiation to innovative and complex
  indicators - Energy bill and subsidies –
 Identifying of energy informal sector
  and border smuggling effects.
 Analysis and interpretation of
  indicators
Learned lessons and Next
steps improvement

 Energy   data : Data
  reliability, coverage and
  sources
 Emission calculation
  constraints and requirements
 Estimation and analysis of
  energy sector subsidies
Energy data :
Reliability, coverage and
sources
             Challenge:
 The project should respond to the
 need of policy and decision-makers
 for relevant set of indicators and a
            database with
 unbiased, validated, organized and
       scientifically approved
Shortcomings
 Low Coverage of end-use energy
  data
 Low coordination within national
  institutions
 Boundaries of energy system
 Some differences between the
  collected data from national and
  international sources ( IEA, World
  Bank)
Opportunities for improvement -
regional organizations
        Strengthen the role of regional
              organizations in the
   collection, dissemination and exchanges
                     data
               Arab Union Of
            Electricity statistics
Maghreb electricity committee
Emission calculation
constraints and requirements
 Lack of emission data do to energy
  use in some countries at different
  levels of energy use and activities.
 Lack of analysis the carbon
  intensity changes resulting from
  the shift from primary energy forms
  to transformed energy, namely
  electricity and from non
  commercial to commercial energy
example of challenge - ETD
 European Union’s controversial
 Emissions Trading Scheme (ETS)
 takes effect for air
 transport, particularly non-European
 nations. Beginning January
 1, 2012, the ETS would require airlines
 – whether they are European or not –
 to have emissions “credits” in order
 to operate into the EU. These credits
 must cover the entire estimated
 amount of CO2 that the operation is
 expected to emit.
Estimation and analysis of
energy sector subsidies
   In most Arab countries, internal energy prices are
    state administrated

   The enormous fiscal burden caused by energy
    subsidies, encountered today by many energy
    importing countries in the Arab world, implies that
    the reform of domestic energy prices has
    increasingly become a necessity rather than a
    choice

   Energy subsidies calculation is complex and often
    approximatively estimated

   Few data are available to identify budgets allocated
    to subsidies
Methodological Improvements
    The project introduces a simplified approach to
    estimate energy bill and subsidies for oil products and
    electricity. Studies should be conducted to identify:
   Different ways of financing subsidies , including the
    parallel use of explicit and implicit subsidies in
    countries both exporting and importing different types
    of energy.
   Energy subsidies can be on-budget or off-budget. On-
    budget subsidies constitute explicit cash transfers
    made by the government to either the producer or the
    consumer receiving the subsidy, registered on the
    state’s budget
   fuel price adjustment mechanisms which pass through
    increases in the price of imported fuels on
    international markets to the domestic economy

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Project methodology and implementation

  • 1. Project Methodology and implementation strengths and weaknesses Hassen Ben Hassine - ALCOR November 29 th, 2012
  • 2. Content: 1-Methodology – Key features 2-Weaknesses and Strengths 3-Learned lessons & next steps improvement 3.1-Energy data: Reliability, coverage and sources 3.2-Emission calculation constraints and requirements 3.3-Estimation and analysis of energy sector subsidies
  • 3. Methodology – Key features  Step by step implementation based on consensus  Training by steps spread over time  Country team technical assistance  Public-private partnership
  • 4. conjunctural and organizational weaknesses  Political Situation in the Arab region  Non-regular of participation and contribution of national experts and focal points in all WS  Wider coverage of countries in the region  Need of preliminary training on economic concepts and statistics use and interpretation.
  • 5. strengths  Implementation of a network of experts and expertise  Technical and Scientific output - Country reports-  Initiation to innovative and complex indicators - Energy bill and subsidies –  Identifying of energy informal sector and border smuggling effects.  Analysis and interpretation of indicators
  • 6. Learned lessons and Next steps improvement  Energy data : Data reliability, coverage and sources  Emission calculation constraints and requirements  Estimation and analysis of energy sector subsidies
  • 7. Energy data : Reliability, coverage and sources Challenge: The project should respond to the need of policy and decision-makers for relevant set of indicators and a database with unbiased, validated, organized and scientifically approved
  • 8. Shortcomings  Low Coverage of end-use energy data  Low coordination within national institutions  Boundaries of energy system  Some differences between the collected data from national and international sources ( IEA, World Bank)
  • 9. Opportunities for improvement - regional organizations Strengthen the role of regional organizations in the collection, dissemination and exchanges data Arab Union Of Electricity statistics
  • 11. Emission calculation constraints and requirements  Lack of emission data do to energy use in some countries at different levels of energy use and activities.  Lack of analysis the carbon intensity changes resulting from the shift from primary energy forms to transformed energy, namely electricity and from non commercial to commercial energy
  • 12. example of challenge - ETD European Union’s controversial Emissions Trading Scheme (ETS) takes effect for air transport, particularly non-European nations. Beginning January 1, 2012, the ETS would require airlines – whether they are European or not – to have emissions “credits” in order to operate into the EU. These credits must cover the entire estimated amount of CO2 that the operation is expected to emit.
  • 13. Estimation and analysis of energy sector subsidies  In most Arab countries, internal energy prices are state administrated  The enormous fiscal burden caused by energy subsidies, encountered today by many energy importing countries in the Arab world, implies that the reform of domestic energy prices has increasingly become a necessity rather than a choice  Energy subsidies calculation is complex and often approximatively estimated  Few data are available to identify budgets allocated to subsidies
  • 14. Methodological Improvements The project introduces a simplified approach to estimate energy bill and subsidies for oil products and electricity. Studies should be conducted to identify:  Different ways of financing subsidies , including the parallel use of explicit and implicit subsidies in countries both exporting and importing different types of energy.  Energy subsidies can be on-budget or off-budget. On- budget subsidies constitute explicit cash transfers made by the government to either the producer or the consumer receiving the subsidy, registered on the state’s budget  fuel price adjustment mechanisms which pass through increases in the price of imported fuels on international markets to the domestic economy