Public-Private Dialogues for Renewable Energy Development in South AsiaBeijing, PRC7-9 Nov 2011

Renewable Energy in South Asia:Renewable Energy in South Asia:Asian Development Bank Initiatives

Zhang LeiEnergy Specialist Asian Development BankAsian Development Bank

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Presentation OutlinePresentation Outline 

• ADB Strategy 2020ADB Strategy 2020• ADB Energy Policy 2009O i f i S h i• Overview of RE in South Asia

• ADB’s Support for RE– Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka

– Regional interventions

• Way forwardy

ADB Strategy 2020ADB Strategy 2020

• VisionVision – Asia and Pacific region free of poverty

• Mission• Mission– Help developing member countries reduce poverty and improve living conditions and qualitypoverty and improve living conditions and quality of life

Strategy 2020 ….

• Three development agendasInclusive growth– Inclusive growth

– Environmentally sustainable growth– Regional integration– Regional integration

• Drivers of changePrivate sector development– Private sector development

– Good governance– Gender equityGender equity, – Capacity Development, and– PartnershipsPartnerships

Strategy 2020 ….Strategy 2020 ….

• Core operational areasCore operational areas– Infrastructure Environment– Environment 

– Regional cooperation and integration Fi t d l t– Finance sector development 

– Education 

h h l• Where ADB strength lies• 80% of lending will be in these areas

ADB Energy Policy 2009To provide reliable, adequate, and affordable energyfor inclusive growth in a socially, economically, andg y, y,environmentally sustainable way

Three Pillars :Three Pillars :• Promoting energy efficiency and 

renewable energygy• Maximizing access to energy for all• Promoting energy sector reform, g gy

capacity‐building & governance

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Energy Policy 2009….Energy Policy 2009….

• Support extended for efficiency andSupport extended for efficiency and renewable energy programs

• Energy services to communities and groups• Energy services to communities and groups– Remote, rural, poor

• Regional cooperation projects for energy security

• Energy sector reforms for good governance, increased private sector participation, efficiency in operations

Programs and InitiativesPrograms and Initiatives• Asia clean energy abetment strategy project –ALGAS (1995‐

2000)2000)• Promotion of renewable energy, energy efficiency and GHG 

abetment project‐ PREGA (2000‐2007)• Clean energy development mechanism facility (2003‐2006)• Carbon Market Initiative – CMI 2006 onwards

f ll f d• Energy for All – EfA 2008 onwards• Clean energy program – 2010 onwards• Asia Solar Energy Initiative 3000MW in three years• Asia Solar Energy Initiative – 3000MW in three years• Quantum Leap in Wind Power in Asia – 1000 MW in five years

Financing FacilitiesFinancing Facilities

• Renewable Energy Energy Efficiency andRenewable Energy, Energy Efficiency and Climate Change Program (2001‐2008)

• Clean Energy Financing Partnership Facility• Clean Energy Financing Partnership Facility –CEFPF 2007 onwards Cli Ch F d CCF 2008 d• Climate Change Fund – CCF 2008 onwards

• Asia Pacific Carbon Fund – APCF 2007 onwards• Future Carbon Fund (2008 – 2015)

Modes of Assistance for CleanEnergyEnergy

• 2009: $12.8 b loans, $1.1 b grants, $267 m technical assistancePublic sector • $691 m for clean energy• Target $2 b (public & private) annual investment in clean energy by 2013. Achieved $1.26 b in 2009, $1.56 b in 2010

Public sector assistance

• 2009: $443 m loans, $220 m equity, $397 m guarantees• $570 m for clean energyPrivate sector finance

• Clean Energy Financing Partnership Facility ($102 m)• Asia Pacific Carbon Fund ($151 m), Future Carbon Fund ($115 m)• Technical Support Facility • Other initiatives: Clean Energy Program Energy for All Sustainable

Catalytic tools for clean energy • Other initiatives: Clean Energy Program, Energy for All, Sustainable 

Transport Initiative, Asia Solar Energy Initiative, Quantum Leap in Windclean energy

• Policy dialogues with DMC governmentsPolicy and knowledge • Research, training, conferences, publications, capacity building financed through TA

y gmanagement

Energy Context in South AsiaEnergy Context in South Asia

• Wide variation in resource endowmentsWide variation in resource endowments– Hydropower, coal, natural gas and other renewable energiesrenewable energies

• Full potential not exploitedA t h t• Acute power shortages

• Single fuel dominance

Energy Context in South Asia….Energy Context in South Asia….Installed Capacity MW in Year 2008

RE in BangladeshRE in Bangladesh• National Energy Policy, 2004• Renewable Energy Policy 2008

– Institutionalization of SEDA– 5% of total generated power in 20155% o tota ge e ated po e 0 5– 10% in 2020

• 500 MW solar power development program• ADB’s assistant strategy in power sector• ADB s assistant strategy in power sector

– policy, legal and regulatory reforms; – power transmission interconnections with India; 

i t t i ti f iliti d h bilit ti– investment in new power generation facilities and rehabilitation of old power plants 

– increased investment in clean energy through PPPtransmission network strengthening– transmission network strengthening.

Support for RE in BangladeshSupport for RE in Bangladesh

• 5MW Grid connected Solar PV demonstration5MW Grid connected Solar PV demonstration – $ 28 million

• Solar PV‐Wind hybrid ‐ $ 14 millionSolar PV Wind hybrid  $ 14 million• Solar PV‐LED Street‐lighting ‐ $ 30 million• Credit line for Solar Home Systems• Credit line for Solar Home Systems• Capacity building

Capacity building for SEDA– Capacity building for SEDA– Development of RE roadmapEnergy pricing study– Energy pricing study

RE in BhutanRE in Bhutan

• Hydro Power Policy 2007y y• Renewable Energy Policy 2010• ADB’s assistant strategy in power sector:

rural electrification to replace polluting fossil fuels with clean and modern energy, 

hydropower development for regional use.

RE in MaldivesRE in Maldives

• Government’s draft results framework for the Strategic Action gPlan for 2009‐2013: Access to affordable and reliable electrical supplies for all (10% of 

generated power from RE)generated power from RE) Achieving carbon neutrality by 2020 National energy security increased via diversified energy sources

S h i f h i i i l d l l f k f h Strengthening of the institutional and legal framework of the energy sector

o Maldives Renewable Energy Investment Office (REIO) was formed in 2011 to carry as a focal point for renewable energy investment activity in the Maldivesas a focal point for renewable energy investment activity in the Maldives. 

• ADB’s assistant strategy in power sector: strengthen sector institutions through capacity development and to 

ffi i ll h f blencourage energy efficiency as well as the use of renewable energy sources.

Support for RE in Bhutan and Maldivespp

• Bhutan– Dagachhu Hydropower Project ( 114 MW, ROR, PPP)– Nikachu Hydropower Project (210, ROR, pipelined in 2012)– Solar home systems for rural householdsSolar home systems for rural households– Biogas program

• MaldivesS li f bl– Scaling up of renewable energy sources

• $ 15 million• Solar PV and solar thermal• Wind power• Waste

– Strengthening regulatory capacityStrengthening regulatory capacity

RE in IndiaRE in India

• Energy Conservation Act (2001)gy ( )• Electricity Act (2003)• Integrated Energy Policy (IEP) (2006)• “50,000 MW Hydropower Imitative and New Hydro Policy”• Jawaharlal Nehru National Solar Mission (JNNSM)• ADB’s assistant strategy in power sector:

reducing technical and commercial losses in transmission and distribution networks and facilities, 

developing renewable and alternative energy sources, including hydro and solar power, 

mainstreaming demand side management and energy conservation g g gywhile ensuring environmental and social sustainability.

Support for RE in IndiaSupport for RE in India

• Large scale solar powera ge sca e so a po e 500 MW solar park development in Gujarat Solar park development in Rajastan, Maharastra

• Hydropower 4 small‐scale hydropower projects of34 MW in 

kh dUttarakhand 4 run‐of‐river hydropower projects of 856 MW in Himachal PradeshHimachal Pradesh

• Capacity development Assam, Himachal Pradesh, Biha, Gujarat, , , j

RE in NepalRE in Nepal• National Water Plan(up to 2027) : 

( l h d ) f d 4000MW (mainly hydropower) for domestic use,  95% electrification rate with 70% through national grid and 25% via off grid, 400kWh of per capita consumption, significant export of electricity. g p y

• Hydropower Development Policy 2001 to meet domestic demand and exportation purpose, to attract foreign investments

• ADB’s assistant strategy in power sector: improving access to electricity in rural areas increased energy efficiencyincreased energy efficiency clean power development;  regional cooperation;  strengthening sector governance; 

i i i i i promoting private sector participation

Support for RE in NepalSupport for RE in Nepal• Rehabilitation of small hydropower plants ‐ $ 3.5 million• PPTA and DES for Tanahu HPP (127MW) ‐ $ 4.5 million• Transmission strengthening for hydropower evacuation ‐

$ illi$ 120 million• Scaling‐up of renewable energy programs ‐ $ 20 million

Support for RE in Nepal….

Renewable energy for street lighting a $1 5 million

• 1,000 solar and solar wind street lights in municipal

lighting – a $1.5 million

street lights in municipal areas

• Particularly useful in Nepal due to an overburdened power grid

Solar PV roof‐tops – $ 3.0 millionHospitals, Government buildings, NEA, Airport

Support for RE in Nepal ….Support for RE in Nepal ….

• Distributed small wind power systems in AsianDistributed small wind power systems in Asian rural areas – Pilot projects consisting of 10kW turbines and– Pilot projects consisting of 10kW turbines and 2kWp solar PV rooftop systems  for household use

– Solar cookers solar driers and biogas systemsSolar cookers, solar driers and biogas systems– 5 Wind pumping systemsImplementation support– Implementation support

Support for RE in Nepal ….Support for RE in Nepal ….• Capacity building

– Critical Analysis on PPP in hydropower development

– Support to MOE and DOED on hydropower development

• Planning, evaluation, negotiation, monitoring

RE in Sri LankaRE in Sri Lanka

• RE target :  10% of grid energy is supplied from non‐conventional renewable energy sources (e.g., 

small hydro, wind, and biomass) by 2015

• SEA established on 2007, with functions to help private sector: identify potential projects identify potential projects,  obtain government clearances,  gain access to government subsidies from the Sri Lanka sustainable energy fund 

managed by SEA,  enter into power purchase agreements with CEB

• New technology‐specific, multi‐tier tariffs adopted in 2008 to attract more private investment to non‐conventional RE projects

• ADB’s assistant strategy in power sector: funding transmission projects to evacuate power from renewable energy sources,  improving energy efficiency and reliability by strengthening the transmission network,  Expanding electricity access for the poor Expanding electricity access for the poor,  mitigating climate change by financing clean energy projects and supporting energy 

efficiency initiatives

Support for RE in Sri Lanka …..Support for RE in Sri Lanka …..

• Strengthening grid for RE evacuationStrengthening grid for RE evacuation – $ 24 million$ 2 5 million– $ 2.5 million

• Medium scale hydropower – 30MW$– Detailed engineering design ‐ $ 6 million

• Credit line for estate micro‐hydro rehabilitation ‐ $ 1.3 million

Support for RE in Sri Lanka ….Support for RE in Sri Lanka ….

• Infrastructure facilities for– wind power evacuation (wind park)– Solar power evacuation (solar park)p ( p )

• Solar PV rooftop pilot• Solar thermal pilot• Solar thermal pilot• Capacity building

– Regulation for EE and RE– RE resource assessment

RE ‐ Regional InterventionsRE  Regional Interventions• SAARC Regional Energy Trade Study

Cross border transmission for sharing large clean energy– Cross‐border transmission for sharing large clean energy resources

• Bhutan‐India hydro power evacuation lines• India‐Nepal 400kV lines• Bangladesh‐India cross‐border lines• India‐Sri Lanka submarine interconnection

– Knowledge sharing in RE R i l P M k t– Regional Power Markets

• SAARC Energy Centre capacity building

Moving forwardg

• Public sector investment support for RE– Use of different trust funds such as CEFPF– Co‐financing from other sources JICA, KEXIM, IsDB, NORAD Chi EXIM B kNORAD, China EXIM Bank

– Funding from regional and country programs• National and regional policy and regulatory dialoguesNational and regional policy and regulatory dialogues

– RE related legislation, regulations and capacity building• TA support for transformationpp

– capacity building– Pilot projects

Moving forward …..

• Leveraging private sectorl i– loans, equity

– clean energy funds– Guarantees– Guarantees– Infrastructure support

• Regional Cooperation g p• Technology transfer within and between regions

Zhang LeiEnergy Specialist

Asian Development BankAsian Development BankEmail: zlei@adb.org