Partnership Arrangements under ADB RETA 8483 REG: Asia Energy Efficiency Accelerator
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1 Partnership Arrangements under ADB RETA 8483 REG: Asia Energy Efficiency Accelerator Pil-Bae Song Consultant/Team Leader Asian Development Bank 7 June 2016
2 Background of the TA Rapid increase in energy demand in Asia and the Pacific Fossil fuels continue to dominate in the energy mix National energy efficiency targets and policies starting to set in many countries Major gains in demand-side energy efficiency are needed ADB is committed to increase investments in clean energy and climate financing ADB s operational focus shifts to Finance++
3 Barriers in Demand-side EE Absence of adequate legal and regulatory framework Low capacity and awareness on policies, technologies and business models High up-front and transaction cost Lack of available financing Difficulties in design and implementation
4 Concept and Approach of the TA Bring specific focus of ADB s Clean Energy Program to demand-side EE Improve energy security and productivity, and limit environmental impacts and carbon emissions that contribute to climate change Unlock significant energy saving potential in industry and buildings Overcome barriers in project development, investment and implementation
5 Special Features Programmatic themes - Refurbishing public buildings and municipal lighting - Retrofitting high energy intensity industries - Upgrading metering systems for electric distribution utilities Initiate projects - that can be replicated to scale up ADB investment in demandside EE Regional knowledge hub - strengthen regional knowledge networks and benchmarking information Partnership - promote partnership (financing and knowledge)
6 Impact and Outcome Impact: - Reduced GHG emissions and improved economic productivity through increased adoption and investment in demand-side EE Outcome: - Target DMCs facilitate increased investment and deployment, and integrate energy efficiency targets, policies, and strategies into their national development plans
7 Cost and Financing Source Amount ($) Approval Multi-Donor Clean Energy Fund a 2,000,000 Oct 2013 e-asia & Knowledge Partnership Fund b 500,000 Oct 2013 Korea Energy Agency 200,000 Dec 2014 The Government of United Kingdom 200,000 Dec 2014 U.S. Agency for International Development 100,000 Jun 2015 Total 3,000,000 a Contributors: the governments of Australia, Norway, Spain, and Sweden, administered by ADB b Funded by the government of Korea
8 Countries of Focus Country Indonesia Sri Lanka Key Activities - Energy service company (ESCO) market development - Energy efficiency database development - Energy efficiency building code - Pilot EE lighting projects in Batang and Semarng - Preparation of investment profiles for the Government - Review of completed work on market surveys, draft guidelines and regulations - Knowledge sharing - Comprehensive study on electricity load profile and trends - Summary report on the outcomes and next steps from building retrofit activities and training programs - Knowledge sharing
9 Countries of Focus (Cont d) Country Mongolia Bangladesh Key Activities - Assessment of Energy Efficiency Potential - Knowledge sharing - Energy audit of selected companies - Knowledge sharing - Policy support Maldives - Knowledge sharing Philippines - Knowledge sharing Kazakhstan - Knowledge sharing
10 Partnership Arrangements Partners Financing Knowledge Countries Multi-Donor Clean Energy Fund All focus countries Government of Korea All focus countries Government of UK Indonesia USAID All focus countries Korea Energy Agency (KEA) a All focus countries a A letter of agreement for knowledge partnership was singed under the RETA between ADB and KEA in May 2014
11 Specifics of Knowledge Partnership (with Korea Energy Agency) Countries Activities Status Sri Lanka Bangladesh Indonesia - Full energy audit of two select buildings - Policy advisory support - Capacity development - Full energy audit of two select factories - Policy advisory support - Capacity development - Policy advisory support - Capacity development Completed Ongoing Ongoing Mongolia - Capacity development Completed Maldives - Capacity development Completed Philippines - Capacity development Completed Kazakhstan - Capacity development Completed
12 Institutional Arrangements Partners ADB Operations Departments Loans TA Countries DMC A DMC B DMC C EE Technical Support Unit Core Technical Staff Functions: Technical Assistance Developing EE initiatives EE Consultant Bank/Network Consulting on Demand (core staff) Knowledge Management Monitoring EE lending/investments EE Library EE/CE projects EE technology database EE indicators GHG inventories Capacity Building and Coordination Support workshops, capacity building Regional coordination Energy Sector Group Strategic direction, partner coordination, special studies, disseminate best practices, innovative initiatives, knowledge sharing EE support function EE Technical Support Unit ADB Sustainable Development and Climate Change Department (SDCC) Secretariat Service DMC D ADB Private Sector Operations Department
13 Conclusions Partnerships may lead to win-win for all Needs to set up well-established rationale and benefits of the partnership Partnership with private sector through public sector worked reasonably well Knowledge partnership coupled with financing partnership fills the gap in ADB and DMCs (e.g. policy, regulatory, technologies and business models) Strong interest and commitment of recipient countries is essential
14 Pil-Bae Song
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