ENERGY FOR ALL Elmar Elbling Access to Energy Specialist. Picture: ADB Pilot Project Cobrador Island, Philippines

Transcription

1 ENERGY FOR ALL Elmar Elbling Access to Energy Specialist Picture: ADB Pilot Project Cobrador Island, Philippines

2 ENERGY ACCESS SITUATION IN ASIA-PACIFIC 3.8 Billion Population in ADB s DMCs 2 Billion People without access to clean cooking 426 Million People without access to electricity

3 ADB s RESPONSE: ENERGY FOR ALL (E4ALL) Energy for All Initiative established 2008 INTERNAL goal: Increase ADB s investment in energy access projects and enterprises to scale up access to affordable, modern and clean energy among the regions poor using renewable energy technologies EXTERNAL goal: Energy for All Partnership to develop strategic partnerships and alliances with other stakeholders : MET TARGET of providing energy access to 100 MILLION people by : PARTNERSHIP EXTENDED & GOAL INCREASED TO 200 MILLION by 2020

4 TRACKING OF OUTPUTS ACCOMPLISHMENTS IN ENERGY ACCESS 2015 $1.2 Billion Energy Access Investment In 2015* *Up from $ 400million in 2014 New connections to electricity for 300,000 households Improved electricity service to about 3 million households Improved gas or heating for over 40,000 households

5 Improved energy access (households) Energy Access Investment (in billion $) TRACKING OF OUTPUTS ACCOMPLISHMENTS IN ENERGY ACCESS ,000,000 20,000,000 15,000, USD 6.4 billion Total ADB investment in energy access ( ) 10,000,000 5,000, Year million Number of people who will benefit from ADB s energy access investments Number of Households Energy access investment

6 CHALLENGES TO UNIVERSAL ENERGY ACCESS NEED FOR UNIVERSAL ENERGY ACCESS GLOBALLY: USD 49 billion annually* Funding Gap of USD 40 Billion annually* Current Investment USD 9 Billion *SE4ALL Finance Committee Report 2015

7 OFF-GRID INVESTMENT REQUIREMENT FOR UNIVERSAL ENERGY ACCESS According to IEA estimates in 2011, only about 30% of rural electrification needs are economically met by on-grid 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 Sources: IEA Estimates WEO 2011

8 OFF-GRID INVESTMENT REQUIREMENT FOR UNIVERSAL ENERGY ACCESS To achieve universal access to energy: More private sector investment More investment in off-grid electrification

9 E4ALL IMPLEMENTATION APPROACH PROJECT DEVELOPMENT FACILITY (PDF) Incubate energy access business models from start-up to sustainability & help to refine start-ups into bankable investment opportunities

10 E4ALL IMPLEMENTATION APPROACH Four Pillars Capacity Building Services to Energy Access Stakeholders, e.g. Business Model Workshop for Entrepreneurs, RE for Bankers, RE Finance Workshop Project Development Piloting/ Testing of Business Models Structuring of Pilot Transactions Investment Facilitation Services to Energy Access Entrepreneurs, e.g. Customized mentoring, investor matching) Investors, e.g. Credit enhancement, Investment referrals Due Diligence support) Knowledge Management Publication of reports, e.g. SE4ALL Tracking Report, Minigrid Report, etc.)

11 PILOTING OF BUSINESS MODELS Projects Bangladesh: Swarm electrification (SolShare) Myanmar: Delivery and installation of Solar Home System in Mandalay Region and Chin State Nepal: Solar mini-grids in rural communities (Gham Power) Pakistan: GSM-based solar home system Philippines: RE hybrid system in Romblon (Korea Energy Agency) Nepal: Dhostekhor Khola Micro Hydropower Pilot Myanmar: Delivery and installation of Mini-Grids Business Models Electricity sharing concept where excess energy from solar home systems is diverted to poorer households. Clean energy solutions through output-based aid mechanism. Joint investment of private sector company and a community to an energy access project through mini-grid. Test the design and operation of GSM-based remotely controlled metering systems as basis for pre-paid model Hybridize existing diesel gensets with RE in an isolated island to reduce government subsidy and provide 24/7 electricity service. Power supply for income generating activities to support community infrastructure. Incentivizing community investment for upgraded energy services

12 ADB s RESPONSE: ENERGY FOR ALL Join the Energy for All Partnership ( ): TARGET: PROVIDE 200 MILLION PEOPLE with MODERN ENERGY Requested to submit the number of households/people that your organization has provided with access to energy (yearly) Benefits offered to regular members: Can be invited as participant/speaker in ADB-conducted or sponsored events Avail of early stage project development support Access to network of partners (incl. investors, technology suppliers, financing institutions) Avail of knowledge sharing of technical innovations, financing mechanisms, etc. Expand coordination, exchange of best practice approaches and strategies for scaling up access to energy

13 FOR MORE INFORMATION: ADB s Energy for All Website & Social Media Energy For All Partnership SE4ALL Website & Social Media Sustainable Energy for All ADB Energy for All secretariat@energyforall.info

14 PROJECT DEVELOPMENT FACILITY PROJECTS SOURCED 125 Country Distribution of Investment Closures PROJECT DEVELOPMENT 70 21% 14% 7% CUSTOMIZED MENTORING 14 14% INVESTMENT FACILITATION DEALS CLOSED % NEP CAM IND PHI BAN TOTAL INVESTMENT - USD 22M Asian Development Bank 2015

15 PROJECT DEVELOPMENT FACILITY PROJECT DEVELOPMENT + INVESTMENT FACILITATION Project Development Facility (PDF) To increase private sector participation in delivering modern energy to the poor Offers services to clean energy access entrepreneurs like Customized mentoring Credit enhancement Investor matching Offers services to investors like Investment referrals Due Diligence support Risk Sharing Facility The PDF incubates business models from start-up to sustainability and helps to refine start-ups into bankable investment opportunities

16 PROJECT DEVELOPMENT FACILITY BUSINESS DEVELOPMENT WORKSHOPS Energy for All Business Development Workshop Yangon, Myanmar May 2014 ADB organizes Business Development Workshops to help clean energy access entrepreneurs articulate their business model and develop an investment pitch to attract funding for their project. Business development workshops have been conducted in countries including Nepal, Myanmar and India.

17 PROJECT DEVELOPMENT FACILITY ENERGY FOR ALL INVESTOR FORUM Held annually in June in Manila during the Asia Clean Energy Forum Since recently also in-country events held with first forums in Nepal and Myanmar A venue where energy access enterprises supported by the Energy for All Program are showcased to investors, financial institutions and other energy access stakeholders.

18 ENERGY FOR ALL PARTNERSHIP ADB/Energy for All Project Pipeline PROJECT DEVELOPMENT - ENERGY FOR ALL SAMPLE PIPELINE INTERNAL Output-Based Aid (OBA) for Promotion of Solar Home System Pilot (MYANMAR) Rural Mini-Grid Project Gham Power (NEPAL) Hybridizing diesel mini-grids with RE - mini-grid Project in Cobrador Island, Romblon (PHILIPPINES) Pay-as-you-go Solar Home Systems Pilot (PAKISTAN) Technical assistance/ risk-sharing scheme with OIKO Credit India for issuance of Working Capital Loans (INDIA) Swarm Electrification Pilot Project (BANGLADESH) Off-grid Renewable Energy Demonstration Project (MYANMAR) Dhostekhor Khola Micro Hydropower Pilot Project (NEPAL) Output-Based Aid (OBA) for 100% Energy Access through Promotion of Solar Home System Pilot (NEPAL) Timeline Implemented July 2015 Inaugurated March 2016 Inaugurated March 2016 Implementation underway Implementation underway Implementation underway Procurement underway Procurement underway Procurement underway

19 ENERGY FOR ALL PARTNERSHIP The Partnership was created in 2009 to address energy poverty at the regional scale TARGET: Provide energy access to 100 million people in Asia Pacific by 2015 Target achieved and surpassed: million reached! Target achieved and surpassed: million reached!

20 PROJECT DEVELOPMENT FACILITY PROJECT DEVELOPMENT + INVESTMENT FACILITATION Services offered by the PDF PHASE 1 Project Sourcing Regional Local PHASE 2 Project Development Market Analysis Management credibility Technical due diligence Industry best practices Business plan Financial model Impact assessment PHASE 3 Investment Facilitation Investor outreach Investor matchmaking Advisory services Direct investment

21 PROJECT DEVELOPMENT FACILITY INVESTMENT FACILITATION SIMPA NETWORKS (INDIA) USD 2M Equity Investment Simpa utilizes an innovative, pay-as-you-go business model using SMS credits to purchase solar home systems Equity Investor: ADB s Private Sector Operations Department (PSOD) FRONTIER MARKETS (INDIA) USD 150,000 Equity Investment Clean energy product provider with a strong after-sales service targeted to low-income households in India ONE RENEWABLE ENERGY ENTERPRISES (PHILIPPINES) USD 50,000 Equity Investment Provider of affordable energy to rural low-income households & renewable energy solutions SUN-EEE (CAMBODIA) USD 1M Equity Investment Develop renewable energy utilities and implement biomass power plants & solar farms in off-grid areas that are not easily accessible The PDF featured Simpa Networks in E4ALL Investor Forum June 2013 E4ALL assisted PSOD in due diligence valuation process preparation of board approval

22 PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION PILOT: Solar Mini-grids in Rural Communities Clean Energy: Installation of 35kW solar power provides 95kWh of electricity/ day Strong Business Model: Private sector/ community participation/ local bank Strong partnership with government: collaboration with Alternative Energy Promotion Centre (AEPC) Aggregation: 3 dispersed remote villages in Khotang and Okhaldhunga district combined in one larger project Economic activity: Power for households and productive uses NEPAL Sustainability: Operation & Maintenance - one person residing on-site serving the 3 villages in case of power supply emergencies

23 PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION PHILIPPINES FEASIBILITY STUDY: Hybridizing Existing Diesel Power Plants Collaboration with NEA and KEMCO 5 sites in remote islands in the Philippines Designing of least cost renewable energy option Hybridization of existing diesel minigrids with renewables to increase efficiency increase reliability reduce fuel costs Proof of financial viability Business model for replication through electric cooperatives/ other private investors and potential scale up through ADB SABTANG, BATANES COBRADOR. ROMBLON LOGBON, ROMBLON STO. NINO, WESTERN SAMAR BANTAYAN ISLAND, CEBU

24 PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION PHILIPPINES PILOT: Solar Hybrid in Cobrador Island, Romblon Clean Energy: 30 kw solar PV plant and hybridizing with existing diesel gensets Strong Business Model: Collaboration with local distribution utility (electric cooperative)/replication of business model Philippines has a large number of isolated grids powered by diesel Strong partnership with government: collaboration with National Electrification Administration/tapping of financial incentive schemes Economic activity: Power for households and productive uses (marble industry, boat making) Sustainability: Operation & maintenance by a electric cooperative

25 PROJECT DEVELOPMENT MYANMAR PREPARATORY STUDY FOR ELECTRIFICATION Scoping Report: Off-grid renewable energy opportunities in Myanmar Field visit to Mandalay Region & Chin State Household & demand surveys Proposes solutions & pilot project for Mandalay Region Solar Home Systems, Mini-grids, Solar lantern charging stations Phase 1 for pilot to replicate & scale up through ADB s South East Asia department in Phase 2

26 Myanmar Clean Energy: Delivery and installation of ~1,000 Solar Home Systems Innovative Financial Mechanism: ADB support through output based aid scheme (OBA) Pakistan PROJECT DEVELOPMENT SOLAR HOME SYSTEMS FOR ELECTRIFICATION Clean Energy: Provision of 1,500 Solar Home Systems in off-grid villages in Western Punjab Technology Innovation: GSM-based remotely controlled metering systems as basis for pre-paid model Innovative Financial Mechanism: endconsumer financing, rent to own model Private sector distribution, maintenance, and customer service in the selected districts

27 PROJECT DEVELOPMENT FACILITY FINANCIAL INNOVATION FOR ELECTRIFICATION INDIA Credit Enhancement Support Collaboration with OIKO Credit India ADB is providing technical assistance and a risk-sharing mechanism to OIKO Credit India to encourage them to issue working capital loans to energy access companies in India. PHILIPPINES Energy Lending Support Collaboration with Microfinance Council of Philippines (MCPI) Technical assistance to 2 microfinance institutions (MFIs) Assessment of feasible energy loan products to incorporate into portfolio Focus on household and agroprocessing appliances

28 PROJECT DEVELOPMENT FACILITY Collaboration with ADB Private Sector Operations Department Clean Technology Fund (CTF)/ADB: Renewable Energy Mini-grid Fund and Distributed Power Generation Program The Program will deploy USD 30 million of investment capital over multiple private sector companies and impact funds to scale-up mini-grid investment in India, Indonesia and Philippines Co-financing facility with ADB Private Sector Operations Department Supported by a USD 3.5 million technical assistance advisory program, administered by ADB s Energy for All Initiative Investment component includes senior debt, subordinated debt, guarantees and equity investments along ADB investment A debt facility under the CTF of up to USD 6 million to Simpa Energy India Private Limited has been approved in December 2015

29 CAPACITY BUILDING WORKSHOPS - Energy for All conducts workshops throughout the year to share its expertise in the energy access space (eg Energy Storage, Business Model, Output-Based Aid, etc.) AFCEF-5 (Thailand) WORKSHOP ON OUTPUT BASED AID (Thailand) BIOGAS WORKSHOP (Bhutan) TECHNICAL STANDARD WORKSHOP FOR FIBERGLASS BIODIGESTERS (Vietnam)

30 KNOWLEDGE MANAGEMENT REPORTS - Energy for All has produced a number of reports, including feasibility studies in small islands in the Philippines and energy access assessment in Pakistan FLYERS & BROCHURES - Energy for All has produced a number of country and thematic flyers to disseminate knowledge and promote E4ALL goals

31 KNOWLEDGE MANAGEMENT COMMUNICATIONS Has 1,200 followers and counting Reaches up to 450,000 people per week FACEBOOK Energy for All Initiative Has 600 likes and counting Reaches up to 2,000 users per week WEBSITE The E4All website is continuously undergoing changes to keep up with the online sphere. It features news, events and publications by E4All and partners.

32 SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB 3 GOALS OF SE4ALL: Universal Energy Access Renewable Energy Energy Efficiency ADB, through Energy for All, acts as the regional hub for efforts that contribute to the global Sustainable Energy for All Initiative (SE4All), alongside UN agencies and development partners.

33 SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB ACTIVITIES Asia-Pacific Regional Hub (AP Hub) was launched during ACEF 2014 The first SE4ALL Investor Forum was held in June 2014 during the Asia Clean Energy Forum in Manila. In October 2014, an SE4ALL Investor Forum was held in Bangladesh, co-organized by ADB, World Bank, US Department of State and the Government of Germany.

34 SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB ACTIVITIES Monitoring of SE4ALL Goals in the Asia-Pacific The Regional Hub is taking the lead in the publication of the SE4ALL Status Report in the Asia-Pacific Region to be released every two years - first report Sept. 2015: focus on nexus energy-women-childrenhealth Download: SE4ALL Consultation Workshop: Monitoring the Status of Asia-Pacific on 14 June 2015 to substantiate empirical data, deepen the analyses of the report and to document practices, projects, and synergistic initiatives, specifically highlighting the nexus energy-womenchildren-health

35 New Partnerships SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB ACTIVITIES ADB partnered with Sustainable Energy Association of Singapore (SEAS) to establish a Center for Excellence on Sustainable Energy and was launched in March 2015 ADB partnered with IRENA to support the rollout of cost-effective renewables to off-grid rural communities in the Asia-Pacific region