ENERGY FOR ALL - d2oc0ihd6a5bt.cloudfront.net · ... e.g. SE4ALL Tracking Report, Mini-grid Report,...
Transcript of ENERGY FOR ALL - d2oc0ihd6a5bt.cloudfront.net · ... e.g. SE4ALL Tracking Report, Mini-grid Report,...
Elmar Elbling
Access to Energy Specialist
Picture: ADB Pilot Project Cobrador Island, Philippines
ENERGY FOR ALL
3.8 Billion
Population in
ADB’s DMCs
People without access to
clean cooking
426 Million People without access to electricity
ENERGY ACCESS SITUATION IN ASIA-PACIFIC
2 Billion
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
• 2009-15: MET TARGET of providing energy access to
100 MILLION people by 2015
• 2015-20: PARTNERSHIP EXTENDED &
GOAL INCREASED TO 200 MILLION by 2020
$1.2 Billion Energy Access
Investment In
2015*
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
ACCOMPLISHMENTS IN ENERGY ACCESS 2015
TRACKING OF OUTPUTS
*Up from $ 400million in 2014
USD 6.4 billion Total ADB investment
in energy access
(2008-2015)
104.5 million Number of people
who will benefit from
ADB’s energy
access investments
ACCOMPLISHMENTS IN ENERGY ACCESS 2008-2015
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2008 2009 2010 2011 2012 2013 2014 2015Imp
rove
d e
ner
gy
acce
ss (
ho
use
ho
lds)
En
erg
y A
cces
s In
vest
men
t (i
n b
illio
n $
)
Year
Number of Households Energy access investment
TRACKING OF OUTPUTS
CHALLENGES TO UNIVERSAL ENERGY ACCESS
*SE4ALL Finance Committee Report 2015
Current Investment
USD 9 Billion
Funding Gap of
USD 40 Billion annually*
NEED FOR UNIVERSAL ENERGY ACCESS GLOBALLY:
USD 49 billion annually*
• 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, 2/3rd can be economically met by
mini-grids and the remaining 1/3rd by off-grid solutions such as SHS
Sources: IEA Estimates – WEO 2011
OFF-GRID INVESTMENT REQUIREMENT FOR
UNIVERSAL ENERGY ACCESS
• More private sector investment
• More investment in off-grid
electrification
To achieve universal access to energy:
OFF-GRID INVESTMENT REQUIREMENT FOR
UNIVERSAL ENERGY ACCESS
E4ALL IMPLEMENTATION APPROACH
Incubate energy access
business models
from start-up to sustainability
&
help to refine start-ups into
bankable investment
opportunities
PROJECT DEVELOPMENT FACILITY (PDF)
• 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, Mini-
grid Report, etc.)
E4ALL IMPLEMENTATION APPROACH Four Pillars
Projects Business Models
Bangladesh: Swarm electrification (SolShare)
Electricity sharing concept where excess energy from solar home systems is diverted to poorer households.
Myanmar: Delivery and installation of Solar Home System in Mandalay Region and Chin State
Clean energy solutions through output-based aid mechanism.
Nepal: Solar mini-grids in rural communities (Gham Power)
Joint investment of private sector company and a community to an energy access project through mini-grid.
Pakistan: GSM-based solar home system Test the design and operation of GSM-based remotely controlled metering systems as basis for pre-paid model
Philippines: RE hybrid system in Romblon (Korea Energy Agency)
Hybridize existing diesel gensets with RE in an isolated island to reduce government subsidy and provide 24/7 electricity service.
Nepal: Dhostekhor Khola Micro Hydropower Pilot
Power supply for income generating activities to support community infrastructure.
Myanmar: Delivery and installation of Mini-Grids
Incentivizing community investment for upgraded energy services
PILOTING OF BUSINESS MODELS
ADB’s RESPONSE: ENERGY FOR ALL
Join the Energy for All Partnership (2015 -2020):
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
FOR MORE INFORMATION:
www.se4all.org
Sustainable Energy for All
– Asia Pacific
@SE4All_AsiaPac
SE4ALL
Website & Social Media
www.energyforall.info
Energy For All Partnership
@energyforall
ADB Energy for All
ADB’s Energy for All
Website & Social Media
14
296
DEALS
CLOSED
35 INVESTMENT
FACILITATION
14 CUSTOMIZED
MENTORING
125 PROJECTS
SOURCED
© Asian Development Bank 2015
14%
7%
43%
14%
21%
Country Distribution of Investment Closures
NEP CAM IND PHI BAN
70 PROJECT
DEVELOPMENT
TOTAL INVESTMENT - USD 22M
PROJECT DEVELOPMENT FACILITY
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
PROJECT DEVELOPMENT + INVESTMENT FACILITATION
PROJECT DEVELOPMENT FACILITY
BUSINESS DEVELOPMENT
WORKSHOPS
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.
Energy for All Business Development
Workshop
Yangon, Myanmar
May 2014
PROJECT DEVELOPMENT FACILITY
A venue where energy access enterprises supported by the Energy for All
Program are showcased to investors, financial institutions and other energy
access stakeholders.
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
PROJECT DEVELOPMENT FACILITY
PROJECT DEVELOPMENT - ENERGY FOR ALL SAMPLE PIPELINE
ENERGY FOR ALL PARTNERSHIP
ADB/Energy for All Project Pipeline
INTERNAL Timeline
Output-Based Aid (OBA) for Promotion of Solar Home System Pilot (MYANMAR) Implemented July
2015
Rural Mini-Grid Project – Gham Power (NEPAL) Inaugurated March
2016
Hybridizing diesel mini-grids with RE - mini-grid Project in Cobrador Island, Romblon
(PHILIPPINES)
Inaugurated March
2016
Pay-as-you-go Solar Home Systems Pilot (PAKISTAN) Implementation underway
Technical assistance/ risk-sharing scheme with OIKO Credit India for issuance of
Working Capital Loans (INDIA)
Implementation underway
Swarm Electrification Pilot Project (BANGLADESH) Implementation
underway
Off-grid Renewable Energy Demonstration Project (MYANMAR) Procurement
underway
Dhostekhor Khola Micro Hydropower Pilot Project (NEPAL) Procurement
underway
Output-Based Aid (OBA) for 100% Energy Access through Promotion of Solar Home
System Pilot (NEPAL)
Procurement
underway
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: 104.5 million reached!
Target achieved and surpassed: 104.5 million reached!
ENERGY FOR ALL PARTNERSHIP
Services offered by the PDF
PHASE 1
Project Sourcing
PHASE 2
Project Development PHASE 3
Investment Facilitation
Market Analysis
Local Management credibility
Regional
Technical due diligence
Industry best practices
Business plan
Financial model
Impact assessment
Investor matchmaking
Advisory services
Investor outreach
Direct investment
PROJECT DEVELOPMENT FACILITY PROJECT DEVELOPMENT + INVESTMENT FACILITATION
Develop renewable energy
utilities and implement
biomass power plants &
solar farms in off-grid areas
that are not easily accessible
Provider of affordable energy
to rural low-income households
& renewable energy solutions Clean energy product provider
with a strong after-sales
service targeted to low-income households in India
ONE RENEWABLE ENERGY
ENTERPRISES (PHILIPPINES)
USD 150,000 Equity Investment
SUN-EEE (CAMBODIA)
USD 1M Equity Investment
USD 50,000 Equity Investment
FRONTIER MARKETS (INDIA)
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)
The PDF featured Simpa Networks
in E4ALL Investor Forum June 2013
E4ALL assisted PSOD in
• due diligence
• valuation process
• preparation of board approval
PROJECT DEVELOPMENT FACILITY
• 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
• Sustainability: Operation & Maintenance - one person residing on-site serving
the 3 villages in case of power supply emergencies
NEPAL
PILOT: Solar Mini-grids in Rural Communities
PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION
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 mini-
grids 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
MINI-GRIDS FOR ELECTRIFICATION
PROJECT DEVELOPMENT PHILIPPINES
• 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
PILOT: Solar Hybrid in Cobrador Island, Romblon
PHILIPPINES PROJECT DEVELOPMENT MINI-GRIDS 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
PREPARATORY STUDY FOR ELECTRIFICATION MYANMAR PROJECT DEVELOPMENT
• Clean Energy: Delivery and installation
of ~1,000 Solar Home Systems
• Innovative Financial Mechanism: ADB
support through output based aid scheme
(OBA)
• 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: end-
consumer financing, rent to own model
• Private sector distribution, maintenance,
and customer service in the selected
districts
Myanmar
Pakistan
SOLAR HOME SYSTEMS FOR ELECTRIFICATION
PROJECT DEVELOPMENT
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.
• 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 agro-
processing appliances
Energy Lending Support
FINANCIAL INNOVATION FOR ELECTRIFICATION
PROJECT DEVELOPMENT FACILITY
INDIA PHILIPPINES
• 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
Clean Technology Fund (CTF)/ADB: Renewable Energy Mini-grid Fund and Distributed Power
Generation Program
PROJECT DEVELOPMENT FACILITY Collaboration with ADB Private Sector Operations Department
A debt facility under the CTF of up to USD 6 million to Simpa Energy India
Private Limited has been approved in December 2015
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)
TECHNICAL STANDARD
WORKSHOP FOR
FIBERGLASS BIODIGESTERS
(Vietnam)
WORKSHOP ON OUTPUT BASED AID (Thailand)
BIOGAS WORKSHOP (Bhutan)
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
KNOWLEDGE MANAGEMENT
COMMUNICATIONS
TWITTER | @energyforall
• 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 | www.energyforall.info
• The E4All website is continuously
undergoing changes to keep up with
the online sphere.
• It features news, events and
publications by E4All and partners.
KNOWLEDGE MANAGEMENT
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.
Universal Energy Access
Energy Efficiency
Renewable Energy
3 GOALS OF SE4ALL:
SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB
Asia-Pacific Regional Hub (AP Hub)
was launched during ACEF 2014
ASIA-PACIFIC REGIONAL HUB ACTIVITIES
• 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.
• The first SE4ALL Investor Forum was
held in June 2014 during the Asia Clean
Energy Forum in Manila.
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-children-
health
Download: http://www.adb.org/publications/se4all-
tracking-progress-asia-pacific-summary-report
• 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-women-
children-health
.
SUSTAINABLE ENERGY FOR ALL
New Partnerships
• 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
ASIA-PACIFIC REGIONAL HUB ACTIVITIES
SUSTAINABLE ENERGY FOR ALL