expert working group meeting on universal access …...expert working group meeting on universal...
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Expert Working Group Meeting on
Universal Access to Energy Services,
Renewable Energy, Energy Efficiency and
Clean Use of Fossil Fuels 14 Dec 2017
Elmar Elbling
Senior Energy Access Specialist
Asian Development Bank
United Nations Conference Center
Bangkok, 14 December 2017
To help our developing member countries
reduce poverty and improve quality of life
THE ASIAN DEVELOPMENT BANK’s MISSION
ENERGY ACCESS SITUATION: ASIA-PACIFIC
4.3B
Population
in Asia
2.1B
No access
to clean cooking
421M
No access
to electricity
Multi-tier Framework
Measuring Energy Access
Prioritizes sustainable energy and low-carbon development
Three main pillars:
ADB’s ENERGY POLICY 2009
Promoting clean
energy development:
Renewable Energy (RE) &
Energy Efficiency
Maximizing access
to energy for all
especially the rural poor
Policy reform in
energy sector to
support low-carbon
development
Energy for All Initiative
(E4ALL)
• Established in 2008
• Increase ADB’s investment in
energy access (EA) projects
to scale up access to affordable,
modern, and clean energy through
renewable energy technologies
• Develop partnerships with
other stakeholders to reach 200mio by 2020 – Energy for All
Partnership
ADB’s ENERGY ACCESS ACTIVITIES
ADB’s ENERGY ACCESS INVESTMENT (2008-2016)
• $7.2B ADB
investment in EA
• 110.3M
beneficiaries from
ADB’s EA
investments
Impact of ADB’s Investment on Energy Access
(2008 – 2016 cumulative)
0.000
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016Imp
rove
d e
ne
rgy
acce
ss (
ho
use
ho
lds)
Ene
rgy
Acc
ess
Inve
stm
en
t (B
illio
n U
SD)
ADB Investment ($billion) Energy access (houseold)
Current Investment
USD 9 Billion
Funding Gap of USD
40 Billion annually*
Global Financial Need USD 49 billion annually*
*SE4ALL Finance Committee Report 2015
FINANCING UNIVERSAL ENERGY ACCESS
• According to IEA estimates in 2011, only about 30% of rural electrification needs are economically met by on-
grid electrification
• Out of the remaining 70% of rural electrification, 2/3rd can be economically met by mini-grids and the remaining
1/3rd by off-grid solutions such as SHS
OFF-GRID INVESTMENT FOR UNIVERSAL ENERGY ACCESS
• Distribution of people
• Current electrification status
• Socio-economic aspects
• Topography/land cover
• Existing infrastructure
• Future grid coverage
Further aspects:
• Local renewable energy potentials
• Location specific demand projections
National Least-Cost Electrification Planning
ADB Example Myanmar:
a) Geospatial least-cost energy
access & investment plans
b) Interactive GIS mapping tool:
http://adb-myanmar.integration.org/
Planning for off-grid electrification options:
Villages supplied
by diesel generator
Enabling framework for private sector
With the goal to reduce/ phase out subsidy over time/ replace with credit
Public support/ incentives (off-grid)
Viability of projects for private sector – direct/ indirect subsidies:
• Partial subsidies to decrease initial cost/ CAPEX:
➢ Mini-grids Myanmar: 60% subsidy/ 20% project developer/ 20% community
• Subsidy payment on ongoing basis:
➢ Mini-grids Philippines: Universal charge for missionary electrification
(UCME)
• Concessional financing:
➢ Solar Home System (SHS) Bangladesh: Solar Home System Program
IDCOL
• Fiscal incentives: income tax holiday, exemption from import duties, reduced
tax rates, accelerated depreciation, etc.
To leverage private finance by reducing risk
Enabling framework for private sector
• Licensing (company registration; suitable land; building permits
and access to utilities and licenses to generate, distribute, and sell
electricity)
• Tariffs (reasonable for consumers and enough profit for
developers)
• Standards (safety, power quality and reliability, component and
installation quality)
• Support investment flows/ rules on foreign direct investment (FDI),
currency exchange controls, repatriation of profits etc.
• Creation of level playing field between fossil fuels vs. renewable
energy sources and on-grid and off-grid electrification
To ensure a smooth, quick administrative process that allows
• private companies to operate viable businesses
• financing through private sector sources
Enabling framework for private sector
Regulatory Risk – Arrival National Grid/ Options:
• Small Power Distributor (SPD)
• Small Power Producer (SPP)
• Separate systems in the same village
• Assets abandoned
• Buyout by utility
Community-based Micro Hydro Power Project (MHPP)
• 25kW Davao Del Sur; 30kW Bayugan
• Excess electricity is sold to EC in NET-METERING SCHEME
• Establishment of community-based organizations for O&M of MHPP
• Development of livelihood enterprises, operation of a multipurpose corn mill
ADB example:
Enabling framework for private sector
Private sector involvement/ investment – Business Models:
Joint venture community & private developer –
Solar Mini-Grids in Rural Communities
ADB example:
• 30 kW solar PV hybridized with diesel gensets/ Lithium-ion batteries
• Ownership by local electric cooperative (EC)
• Operation & Maintenance (O&M) by EC
• Productive uses: marble industry, water purification, tourism
Community owned - Hybridizing with Solar in Cobrador Island
• 35kW solar PV for 61 hh/ 25 businesses extended to power telecom towers
• Business model with Private Sector + Community + Local bank
• Trained locals for O&M in case of power supply emergencies
• Pre-paid metering/mobile payment for regular payment collection and data
collection
Involvement of community for O&M, creation of local jobs and
productive uses to make mini-grids viable and allow financing through
local finance institutions
Enabling framework for private sector
Private sector support for technology & innovation:
ADB example:
Remote monitoring: reduces time and costs associated with site visits, ADB
provided local government offices in an ADB mini-grid project in Myanmar with
secondary data loggers to monitor performance of mini-grid
.
Pre-paid systems/Mobile payment: regular payment collection and data
collection, e.g. Simpa Networks uses pay-as-you-go business model using
SMS credits to purchase solar home systems (SHS)
Swarm electrification: SOLshare in Bangladesh connects SHS to create
bottom-up mini-grid and establishes a market place for energy trade between
households;
CLEAN COOKING
• 2.1 billion people still without access to clean
cooking
• Clean cooking in some cases decoupled from
access to electricity, e.g. China, Philippines,
Vietnam
• Provision of clean cooking difficult as also
dependent on local cooking habits/ Fuel Stacking
- the use of multiple fuels for cooking
Status:
CLEAN COOKING
Support for National Policies:
• Appreciation of benefits of clean cooking especially women
and children
• Awareness of harmful effects among users
• National standards and definitions for emissions (relevant for
climate & health), efficiency, safety, durability
• Quality control, testing & certification
• Use of traditional biomass not only impacts health indoor air
pollution but is also a source of deforestation and climate
change
CLEAN COOKING
Private Sector:
• Innovation to
• improve efficiencies of local stoves
• Use or agricultural waste to produce high quality
clean fuels
• Electric cooking as an option for RE mini-grids
(explored)
• LPG and electric cooking for urban areas
• Local manufacturers/ industry
• Supply chain, technical know-how for manufacturers
and distributors
• Financing (e.g. microfinance)
