ADB Energy Sector Investments and Prospects for Smart-Grid. Mr. Woo Yul Lee ( 이우열 ) Energy Specialist Pacific Department Asian Development Bank

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1 ADB Energy Sector Investments and Prospects for Smart-Grid Mr. Woo Yul Lee ( 이우열 ) Energy Specialist Pacific Department Asian Development Bank

2 Asian Development Bank An Introduction ADB s Vision: Asia Pacific free of poverty ADB s strategic agenda: Inclusive growth Environmental sustainability Regional integration Founded in 1966 with Headquarters in Manila With triple A credit rating, mobilizing low-cost funds for development Loans, grants, technical assistance, equity & guarantees

3 Energy Access Situation in Asia-Pacific 4.2 Billion Population in Asia 1.8 Billion People without access to clean cooking 615 Million People without access to electricity

4 Asia s Share of Global GDP, An additional 3 billion Asians achieve European living standards by 2050

5 Energy Demand in the Asia-Pacific Asia Pacific will lead the world s energy demand growth, but 10,000 fossil fuels will continue to dominate Coal Oil Gas Hydro Nuclear NRE 8,000 6,000 Mtoe 4,000 2, Source: ADB, APERC 2013

6 Developing Asia s Share in Global CO2 Emissions from Energy Consumption Rest of the World 63% Developing Asia 37% 47% Rest of the World 53% Source: ADB, APERC 2013 In 1973: 9%

7 ADB s Energy Policy Mainstreaming clean energy into ADB s operations guided by three pillars: ü Promoting energy efficiency and renewable energy ü Maximizing access to energy for all ü Promoting energy sector reform, capacity-building and governance Total Energy-Related Investment ( ): $ 27.9 Billion

8 3,000 ADB's Clean Energy Investment ,500 $ 2billion/yr target 2,133 2,358 2,357 2,434 2,000 1,750 1,756 $ million 1,500 1,313 1,

9 Clean Energy Investment by Project Type, 2014 ($ billion) Energy Efficiency $0.9 b 37% Renewabl e Energy $1.3 b 56% Cleaner Fuel $0.2b 7%

10 Example I - Qinghai, Delinha CSP project Capacity: 50MW Technology: Parabolic trough with 7 hours thermal energy storage Developer: China Guangdong Nuclear Solar Energy Development Co., Ltd. DNI: 1,976 KWh/m²/year with over 3,100 day light hours per year Site: Semi-arid condition with cold climate and water scarce condition.

11 Example II - Sarulla Geothermal Project, Indonesia Geothermal IPP in North Sumatra, Indonesia ØKey features: Ø Canadian funds used to leverage $1.56 billion from a high-quality sponsor consortium and co-financing from ADB, JBIC and six commercial banks Ø First greenfield private sector geothermal project in Indonesia in over 10 years Ø 30-year power offtake agreement with state utility PLN; joint operating agreement with PGE Ø GHGs (net) 1.3m tons of CO2e p.a. Ø RE Capacity MW (net) Ø RE generation - 2,529 GWh p.a. Ø Construction commenced in first unit to commence operations in 2016; remaining two units expected in 2018.

12 Solar Projects in UZB

13 ADB Energy Projects in the Pacific ADB $242million Co-financing $298 million

14 Smart Grid in Developing Naitons Strength Innovative Both supply and demand sides management Can provide tailor-made solutions Data management PPP opportunities Opportunities Fast development of renewable energy Poor operational and financial performance of power utilities Weakness Weak definition / too complex Too many stakeholders Lack of knowledge and awareness Absence of appropriate business models Lack of funds to finance smart grids Too luxury??? Threats Inadequate regulatory and institutional framework Poor operational and financial performance of power utilities Weak IT infrastructures

15 ADB s Operation for Smart Grid Deployment In the beginning stage Creating awareness of smart-grid to DMCs (e.g. Technical Assistance) Starting with very basic smart-grid projects ( smartgrid ready ) ü SCADA ü Smart-metering ü RE based hybrid system coupled with batteries ü ICT project ü Energy efficiency

16 Conclusion Enormous opportunities exist for smart grids development in Asia and the Pacific May not necessarily start as state-of-the art smart system in the beginning stage Small Island countries can be a good candidate to test the KOREAN model of smart-grid (smart island) ADB is willing to offer various forms of supports for smartgrid uptake in Asia and the Pacific; ütechnical Assistance ügrants / Concessional Loans ü Private Sector Lending / PPP

17 Thank you Further information: Please contact Woo Yul Lee ( 이우열 ) Energy Specialist wylee@adb.org

18 Examples III Tianjin 250 MW IGCC Project (2010) Ø PRC s first IGCC plant as part of its GRRENGEN program Ø $135 million loan and $5 million grant approved in 2010 Ø Project is in commercial operation in December 2012 Ø A pilot CCUS project to capture and store 100,000 t CO 2 per year is being assessed