AUSTRIAN ENERGY INITIATIVES - BEST PRACTICES

UNCLAS VIENNA 000941

SIPDIS

SIPDIS

FOR OES/PCI (LLEWIS) AND EUR/AGS


E.O. 12958: N/A
TAGS: SENV SOCI ENGR EAID EPET TRGY AU
SUBJECT: AUSTRIAN ENERGY INITIATIVES - BEST PRACTICES

REF: STATE 36153


SUMMARY
--------------


1. Post solicited information about domestic and
international energy initiatives from Herbert Lechner,
Scientific Director from the quasi-governmental "Austrian
Energy Agency" (AEA),and from Aloisia Woergetter, head of
the Ministry of Foreign Affairs' Sustainable Development
Unit. The GoA promotes energy efficiency and renewable
energy sources, such as biomass and biofuels. Austria has
concluded several energy partnerships with various East
European countries and with partner countries in the
developing world. End Summary.


ENERGY PARTNERSHIPS IN EASTERN EUROPE
--------------


2. Internationally, Austria is concentrating its efforts on
"Energy Partnerships," primarily in Eastern Europe, but also
beyond. The AEA carries out most of its projects under this
umbrella with funding from various Austrian government
entities. Focus states are non-EU countries, including
Ukraine, Bulgaria, and Romania, and to a lesser extent,
Balkan countries and Moldova. According to Woergetter,
bilateral energy partnerships with Southeast European
countries are emerging.


3. 2004-2005 best practice projects in Ukraine included
developing equipment to extract gas from coal; utilizing
biofuels; investments in the district heating market; and
capacity building for Ukrainian energy experts. In
Bulgaria, Austria helped to set up the Bulgarian Energy
Efficiency Fund, which focuses on power-heat coupling and
solar energy projects. Similarly, the focus in Romania is
on bio-energy and power-heat coupling. There remain some
ongoing projects in the Czech Republic, Slovakia, Slovenia
and Hungary, including hydropower, biomass, building
renovation, carbon sequestration, and wind energy. Lechner
praised the excellent cooperation with USAID on training
energy experts from Bulgaria, Bosnia and Herzegovina, and
Albania.


EMERGING MARKETS AND DEVELOPING COUNTRIES
--------------


4. Our Austrian interlocutors told us that the future focus
for energy projects would be increasingly in the developing
world and emerging markets. Austria hosts the secretariat
of the Renewable Energy and Energy Efficiency Partnership
and sponsored several events for the Global Forum on
Sustainable Energy in 2003-2005. Austria has created
bilateral partnerships and renewable energy projects with
Ethiopia, China and India. Moreover, Austria actively
cooperates with the Economic Community of West African
States on energy. Our contacts cited a wood efficiency
project in Bhutan (construction of smokeless stoves) as a
best practice example.


AUSTRIA - SOME 80 PROJECTS ALTOGETHER
--------------


5. The AEA naturally carries out a vast number of energy
projects in Austria. The main focus in all areas is on
increasing energy efficiency and making energy technologies
competitive in the public-private energy market. This
comprises contracting, public-private partnerships,
greenhouse gas emissions trading, and use of the Kyoto
Protocol flexible mechanisms -- "joint implementation" and
the "clean development mechanism."


6. The overall goal of Austria's domestic energy programs
is to contribute to a reduction of greenhouse gas emissions.
Austria has targeted initiatives in the transportation
sector, which contributes most to rising CO2 emissions.
Initiatives include mobility management, incentives for
gasoline consumption reductions in autos, increased use of
natural gas in the public transport sector, incentives for
biomass production, and transferring freight from roads to
rail. Other focus points include building insulation,
efficient appliances (including support for "Energy Star"
projects in Austria),and adding more energy from renewable
sources to the energy mix that is provided to businesses and
households. Every year AEA manages approximately 80 such
energy projects.

THE AEA: A POSSIBLE ALLY FOR ENERGY PARTNERSHIPS
-------------- ---


7. The AEA is a government-funded energy research and
policy institution, with participation from Austrian federal
and state authorities, as well as from approximately 50
institutions and private companies from a variety of
sectors. The AEA facilitates public-private-partnerships,
and can also be an ally in creating energy partnerships in
developing countries. Post recommends collaborating with
the AEA to the extent that it is relevant to U.S.-sponsored
energy partnerships. AEA contact information: Herbert
Lechner, Otto-Bauer-Gasse 6, A-1060 Vienna; phone 43-1-
5861524-21, fax 43-1-5861524-40' email
herbert.lechner@energyagency.at.

MCCAW