Expert Working Group Meeting on Universal Access to Energy Services, Renewable Energy, Energy Efficiency and Clean Use of Fossil Fuels 14 Dec 2017

Transcription

1 Expert Working Group Meeting on Universal Access to Energy Services, Renewable Energy, Energy Efficiency and Clean Use of Fossil Fuels 14 Dec 2017 United Nations Conference Center Bangkok, 14 December 2017 Elmar Elbling Senior Energy Access Specialist Asian Development Bank

2 THE ASIAN DEVELOPMENT BANK s MISSION To help our developing member countries reduce poverty and improve quality of life

3 ENERGY ACCESS SITUATION: ASIA-PACIFIC 4.3B Population in Asia 2.1B No access to clean cooking 421M No access to electricity

4 Multi-tier Framework Measuring Energy Access

5 ADB s ENERGY POLICY 2009 Prioritizes sustainable energy and low-carbon development Three main pillars: 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

6 ADB s ENERGY ACCESS ACTIVITIES 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

7 Improved energy access (households) Energy Access Investment (Billion USD) ADB s ENERGY ACCESS INVESTMENT ( ) Impact of ADB s Investment on Energy Access ( cumulative) $7.2B ADB investment in EA 110.3M beneficiaries from ADB s EA investments 25,000,000 20,000,000 15,000,000 10,000,000 5,000, ADB Investment ($billion) Energy access (houseold)

8 FINANCING UNIVERSAL ENERGY ACCESS Global Financial Need USD 49 billion annually* Current Investment USD 9 Billion Funding Gap of USD 40 Billion annually* *SE4ALL Finance Committee Report 2015

9 OFF-GRID INVESTMENT FOR UNIVERSAL ENERGY ACCESS According to IEA estimates in 2011, only about 30% of rural electrification needs are economically met by ongrid electrification Out of the remaining 70% of rural electrification, 2/3 rd can be economically met by mini-grids and the remaining 1/3 rd by off-grid solutions such as SHS

10 National Least-Cost Electrification Planning Planning for off-grid electrification options: Distribution of people Current electrification status Socio-economic aspects Topography/land cover Existing infrastructure Future grid coverage Villages supplied by diesel generator ADB Example Myanmar: a) Geospatial least-cost energy access & investment plans b) Interactive GIS mapping tool: Further aspects: Local renewable energy potentials Location specific demand projections

11 Enabling framework for private sector 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 With the goal to reduce/ phase out subsidy over time/ replace with credit

12 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

13 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 ADB example: 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

14 Enabling framework for private sector Private sector involvement/ investment Business Models: ADB example: Community owned - Hybridizing with Solar in Cobrador Island 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 Joint venture community & private developer Solar Mini-Grids in Rural Communities 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

15 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;

16 CLEAN COOKING Status: 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

17 Support for National Policies: CLEAN COOKING 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

18 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)

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