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Anthony Jude

Chair, Energy CommitteeSenior Advisor and Practice Leader (Energy)

Regional and Sustainable Development DepartmentMarch 2014

ADBsENERGY SECTOR OPERATIONS

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Outline

Contexto The Development Agenda: Strategy 2020o ADB Energy Policy in the Evolving Environment

Overview of the Energy Sectoro Volume by Type of Assistanceo Greening Evolution of Energy Agenda

Programs and Approaches

Role of RSDD

General Business Opportunities

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Development Agendao Inclusive Economic Growtho Environmentally Sustainable Growth (key: Climate Change)o

Regional Integration

Core Areas of Operation o Infrastructure (key: energy)o Environmento Regional Cooperation and Integrationo Financial Sector Developmento Education

STRATEGY 2020

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Strategy 2020 remains valid and relevant

Vision of an Asia-Pacific free of poverty stays

But a sharpening and realigning of operational focus required inlight of emerging challenges of the transforming region

ADBs capacity also needs strengthening to respond to DMCsneeds and demands

Disaster Risk Management/ Disaster Risk Financing

Mid-Term Review of Strategy 2020

Key Messages

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ADB Energy Policy:In the evolving environment

ADBs First Energy Policy (1981): response tothe oil crisis

Second Energy Policy (1995): infrastructureinvestment and developing financially robust andefficient sector operations

Energy Policy Review (2000): reducing poverty,increasing private sector involvement, addressingenvironment impacts, promoting regionalcooperation

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Energy Policy 2009

Energy Security Increasing demand for energy Volatility in energy prices

Climate Change Significance of global warming and climate change Need to promote low carbon emission options and

technologies

Energy Access MDG targets cannot be met without modern energy for all 2.5 billion people rely on traditional biomass Mobilizing financing is challenging

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To help DMCs to provide reli le , dequ te ,and fford le energy for inclusive growth

in a socially , economically , and

environmentally sustainable way

2009 Energy Policy Objective

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1. Promoting energy efficiency andrenewable energy

2. Maximizing access to energy for all

3.Promoting energy sector reforms,capacity building, and governance

2009 Energy PolicyThree Pillars

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Encourage private sector participation (and public private partnerships) to enhance efficiency throughcompetition, and to increase investable resources, butnot as the end objective of reforms

All energy sector investments will comply with ADBsafeguards policies regarding the environment,involuntary resettlement, and indigenous peoples

Promote superior knowledge management anddissemination of good practices and lessons learned;support advocacy and assistance to DMCs intechnology transfer and deployment

ADB Energy Policy: Yes (2)

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Collaborate with a range of development partners

Identify specific situation in each DMC while planningand designing interventions, especially for PacificDMCs

Monitor policy implementation using results framework

ADB Energy Policy: Yes (3)

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No involvment of financing nuclear power generation

No involvment of financing coal mine developmentexcept for captive use by thermal power plants,

No involvment of financing oil field developmentexcept for marginal and already proven oil fields

ADB Energy Policy: No

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Energy Sector Approvals, 2007-2013(in US$ million)

Year Public SectorLoans

Non-SovereignInvestments

Grants Technical Assistance

2007 1,166.39 391.02 25.4 20.80

2008 1,363.40 1,259.08 259.9 16.50

2009 1,908.01 469.07 95.3 32.91

2010 1,865.90 848.11 215.95 37.26

2011 2,896.69 1,461.61 125.70 51.10

2012 1,943.19 757.74 258.50 29.38

2013 2,879.44 679.00 459.37 43.37

Volume of assistance to energy sector is increasing

Energy Sector

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Energy Sector Assistance, 2007-2013

1,166.39 1,363.401,908.01 1,865.90

2,896.69

1,943.19

2,879.44391.02

1,259.08469.07

848.11

1,461.61

757.74

679.00

25.40

259.90

95.30

215.95

125.70

258.50

459.57

20.80

16.50

32.91

37.26

51.10

29.38

43.37

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

5,000.00

2007 2008 2009 2010 2011 2012 2013

Technical Assistance

Grants

Non-Sovereign Investments

Public Sector Loans

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Projects by subsector (2001-2013)

Conventional energy, 20%

Electricity transmissionand distribution, 39%

Energy efficiency andconservation, 6%

Energy sectordevelopment, 8%

Energy utility services, 3%

Large hydropower, 8%

Pipelines, 2%Renewable energy, 13%

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The Greening" of ADB's EnergySector Operations

To accelerate low-carbon growth and reducegreenhouse gas emissions in the region,

ADB set the following targets:o $1 billion annual target of clean energy

investments, from 2008o $2 billion annual target of clean energy

investments, from 2013

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ADB Assistance to CE Investment( $million)

1,456.93

2,882.33

2,472.38

2,929.96

4,484.00

2,959.43

4,018.01

695.35

1,787.08

1,312.63

1,756.49

2,132.97

2,358.42

2,356.74

63.92

90.22

429.37

374.30

1,731.00

700.94

475.80

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00

Average 2005-2007

2008

2009

2010

2011

2012

2013

Clean Energy Invesment in Non-EnergySectors

Total Clean Energy Investment

Total Energy Sector Loans

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Installed RE Power GenerationCapacity (MW), 2008-2013

683

1,481

1,871

875

1,2561,391

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2008 2009 2010 2011 2012 2013

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Progress Toward ADBs$2 Billion Clean Energy Target

226306

757657 668

1750

1313

1756

2133

2358 2357

1000

1200

1400

1600

1800

2000

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$ M i l l i o n s

CE Investment CE Investment target

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Role of RSDD

An anchor for sector and thematic strategic directions inkey areas of ADB's operations

A linking service to facilitate cross-fertilization of ideasand experiences between regional departments

A knowledge center for capturing, consolidating, storing,and disseminating knowledge obtained through regionaloperations and by following international developments

A reference center for the region on regional and

international trends in sectors and thematic areas A center for developing new business areas, anddeveloping and implementing new business concepts

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Business Opportunities

TypesInvestment projects

Technical assistance

AreasDeployment of new clean energy technology

Projects that lower the barriers to adopting clean energytechnologies

Projects that increase access to modern forms of clean andenergy efficient energy for the poor

Technical capacity programs for clean energy

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THANK YOU