Smart Grids for Energy Access, Energy Efficiency and Renewables. Challenges and Solutions in Asia and the Pacific

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1 ISGAN Public Seminar Smart Grids for Energy Access, Energy Efficiency and Renewables Challenges and Solutions in Asia and the Pacific Yongping Zhai, Technical Advisor (Energy), Asian Development Bank 8 March 2016

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3 ADB s Climate Finance Target (supporting INDCs) Mitigation (goal: $4 billion total by 2020) Adaptation (goal: $2 billion total by 2020) Sector Energy Other sectors Total Proposed contribution by 2020 $3 billion $1 billion $2 billion $6 billion

4 ADB Energy Sector Priorities Focused Areas - Energy access - Renewable energy - Energy efficiency Expanding Operations with Innovations - Advanced technologies - New financing instrument - New business model - Cross border energy initiatives

5 Technology Innovations Energy Efficient and Low Carbon Technologies - Mercury free technology in PRC s polyvinyl chloride (PVC) industry Smart grid/smart meters - promoting renewable energy and energy efficiency - India Green Corridor Project - Uzbekistan Advanced Electricity Metering Project Mini grid with storage providing affordable renewable energy - Maldives Renewable Based Hybrid Mini-Grid Project

6 Smartgrids Regional Power Transmission Linkage and Trade National (State / Provincial) Power Transmission and Trade On-grid distribution Micro-grid (Rural) At Community At Commercial Facility At Building At Factory At Home At Community At Home

7 Smart Grid Advancement Around the Globe Technologies are rapidly developing Research and development activities are ongoing Vast scale rollout are in progress in developed countries (USA, European Countries, Australia, Japan among other) International standards and technology roadmaps have been prepared Various international forums to bring all smart grids players together are being held

8 Why Smartgrids Needed in Developing Countries? 1. Grid Integration of Renewable Energy, e.g., Energy Storage System, Smart meters 2. Energy Access For All Traditional T&D Network may not reach some rural areas Microgrid/Off Grid with Innovation 3. Energy Efficiency Technical/Commercial Loss Reduction and Demand Response 4. Grid Stability Innovation close monitoring and controlling system.

9 The Existing Grids in Asian Developing Countries Based on technologies developed long ago Designed for one-way energy flows from large centralized controllable power plants to customers at the other end Lacks automated analytics Slow response in contingency situations Lapses in long-term planning Lack of innovation, aging workforce

10 Next Decade Time for huge grid modernization using Advanced Technologies

11 Asia Developing Countries Embarking on Smartgrid Development India: National Smart Grid Mission (2015) ADB financed Green Energy Corridor and Grid Strengthening Project (2015) China: $45B Smartgrid Technology Investment ADB s Technical Assistance for Developing Smart Grid Technology for Efficient Utilization of Renewable Energy Innovation (2010) Maldives: Zero Emission Strategy with Micro-grid ADB provided $50M grant for installing solar-diesel hybrid grids on nearly 160 islands (2014)

12 Challenges for Developing Countries Limited Institutional Capacity of Stakeholders Awareness and capacity of Policy Makers, Regulators, Utilities, Residents, Private Sector to be developed Adopting Technologies to Local Context Need to adopt the proven technologies in developed countries to the local context Absence of International Standards How to integrate interchangeable parts from a variety of different providers worldwide

13 Suggested Actions (1)Design the goal for 2030 (Long-term planning, modern planning techniques, bottom-up approach) (2)Develop country specific grid modernization roadmaps (3)Develop smart grid codes, policies and regulatory incentives (4)Identify proven smart grid technologies, strategies from completed smart grid projects across globe (5)Enhance institutions, capacity of grid operators and managers (6)Integrate smart grid components in grid development projects (7)Implement stand alone smart grid pilots and projects (8)More Smart Energy Cities, integrate with other systems (9)Develop appropriate ICT architecture (10) Gradual transition using proven smart grid technologies, and reach the goal by 2030

14 Market Transformation: Unlock Asia s Clean Energy Future EE&RE Energy Efficiency RE Fossil fuels Fossil fuels Current 2050

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16 Thank you. Yongping Zhai Tel: Twitter: Yongping