ADB Business Opportunities Seminar

Energy

Vienna, Austria

21 November 2018

Andrew McIntyre

Head, Project Administration Unit

Urban and Social Sectors Division,

East Asia Department

Trends in the Energy Sector

Energy demand is projected to almost double in the Asia and Pacific region by 2030. There is an urgent need for innovative ways to generate power in a socially, economically, and environmentally sustainable manner.

Operational Priorities Energy Sector Contributions

Addressing Remaining Poverty and Reducing Inequalities

Clean energy for meeting basic needs (lighting and cooking); skills development and job creation with renewable energy; productive use of energy to generate income; solar home systems

Accelerating Progress in Gender Equality

Clean energy access relieves women for fuel collection which allows women more time to pursue income-generating activities

Tackling Climate Change, Building Disaster Resilience

Integrating climate change mitigation (GHG reduction) and adaptation into project design

Making Cities More Livable Supporting smart electricity supply to cities, energy efficient buildings and electric vehicles, rooftop solar for household and commercial buildings

Promoting Rural Development and Food Security

ADB will support use of solar powered pumps for smart irrigation to replace diesel or electricity powered pumps

Strengthening Governance and Institutional Capacity

Promoting energy sector reforms and developing institutional capacity for renewable energy development

Fostering Regional Cooperation and Integration

Promoting energy connectivity (power interconnections, gas pipelines), and sharing best practices and technologies in renewable energy development

Strategy 2030: Key linkages (Energy Sector)

Total approvals in the Energy Sector in 2017 amounted to $5.22 billion including $1.41 billion from PSOD (27% of total energy sector lending)

Historic Developments and Regional Distribution (2017)

In $ million CWRD EARD PARD PSOD SARD SERD Total

Total 1,054.76 499.00 67.90 1,409.95 1,191.00 1,000.00 5,222.61

3,2

4,3

2,4

3,8

2,6

5,0

4,0

5,2

5,7 5,86,0

1,8

2,12,4 2,4 2,4 2,5

2,1 2,0

2,62,8

3,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Energy Sector Lending (OCR & ADF) Clean Energy Investments (including co-financing)

Climate Finance in the Energy Sector (OCR & ADF)

Energy generation• Distributed renewable energy (rooftop solar, mini-grids)

Transmission and distribution• Smart grids systems with energy storage for renewable

energy integration and frequency regulation

End use efficiency and demand-side response• Digital technologies to enhance energy efficiency in

industry, buildings

Deployment of advanced technologies• Waste-to-energy projects

• Smart and mini-grid systems including energy storage

• Floating solar power systems

• Carbon capture and storage

Expected Trends and Opportunities (Energy Sector)

ADB Energy Policy

Helping ADB developing member countries (DMC)

provide reliable, adequate, and affordable energy for

inclusive growth in a socially, economically, and

environmentally sustainable manner.

• Three pillars of implementation:

o Promoting energy efficiency and renewable energy

o Maximizing access to energy

o Promoting energy sector reform, capacity building and good

governance

Energy Sector Priorities and Targets

Climate MitigationExpand clean energy investment financing to $3 billion by 2020

Energy for All100% electricity access by 2025-2030

Deployment of new and advanced technologiesto achieve energy access

and climate mitigation finance targets

Clean Energy (Climate Mitigation Finance, includes co-financing)

• Investments in renewable energy generation, energy efficiency and

fuel-switching

• Supports ADB DMCs in meeting their commitments to the Paris

Agreement

1,75

1,31

1,76

2,132,36 2,36 2,43 2,48 2,54

2,33

1,01,2

1,41,6

1,82,0 2,0 2,0

3,0 3,0

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CE Investment Target

Clean EnergyImplementation progressIndicator Unit 2010 2011 2012 2013 2014 2015 2016 2017

Investmentamount

$ bil 1.58 2.10 2.06 2.05 1.91 2.31 2.11 2.04

Additional installed capacity using RE

GW 1.46 0.87 2.46 1.39 2.06 0.62 2.06 1.56

CO2 emission reduction

million tons/year

13.17 13.68 15.98 7.06 9.00 21.85 13.49 11.78

Electricitysavings

TWh/ year

33.79 3.29 0.87 1.99 0.070 4.48 4.69 0.74

RE electricitygeneration

TWh/ year

4.78 3.30 4.91 5.22 5.93 1.48 4.62 4.80

9

Energy for All

0,000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

rove

d e

ner

gy

acce

ss (

ho

use

ho

lds)

En

erg

y A

cces

s In

vest

men

t (i

n b

illio

n $

)

Year

Energy Access Investment Number of Households

$1.29 billion invested in 2017

$8.47 billion total ADB investment in energy access (2008-2017)

24.35 million householdswill have improved energy access due to ADB investments since 2008

Reform and Capacity Development

• ADB piggy backs its investments bysupporting DMCs in the areas of capacitydevelopment, research and policy advisorythrough technical assistance.

• In 2017, total technical assistance reached$46.9 million to support energy sector policyreform, development of new technologies,scaling up of renewable energy and projectpreparation.

Aspects for your attention

Procurement process is solely driven by the Borrower, The dates in the presentation are tentative.

Engagement of Consultants to support Technical Assistances is driven by ADB

Understand the country context is crucial because the countries have unique challenges

Deploy teams having right expertise and experience.

Technical experts shall have experience in advance technologies, smart grid, renewable energy integration and utility practices

www.adb.org

For further information please contact

Andrew McIntyre at amcintyre@adb.org

or call +63 2 632 4719

THANK YOU!