Transcript ADB_MYA_RE_Presentation_31_May2013_FINAL

Energy Access Program in
Developing Asia and a Proposal for
Myanmar
Pradeep Tharakan, PhD
Energy Specialist (Climate Change)
Southeast Asia Energy Division (SEEN),
Asian Development Bank, Manila
June 2013
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OUTLINE
• ADB’s Energy for All Program
• Some recent examples of ongoing energy
access support programs
• A proposal for technical assistance to
Myanmar
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ADB’s Response: Energy for All Program
• Energy for All program was launched in 2008 to
• Mainstream energy access for the poor in ADB’s operations
• Increase ADB investment in energy access projects and
enterprises
• Develop strategic partnerships and alliances with other
stakeholders.
ADB 2009 Energy Policy
“Maximize energy access for all,
especially for the rural poor.”
ADB Strategy 2020
ADB will support three complementary
development agendas: inclusive
economic growth, environmentally
sustainable growth, and regional
integration.
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ADB’s Response: Energy for All Partnership
• The Energy for All Partnership was established in 2009
• Aim is to provide 100 million people with modern energy access by 2015
ENERGY FOR ALL PARTNERSHIP
STEERING COMMITTEE
COLLABORATION WITH
OTHER PROGRAMS
SECRETARIAT
LIGHTING
Source: IEA 2012
COOKING
ELECTRICITY FOR
ENTERPRISE DEVELOPMENT
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Energy for All: Donors and Supporters
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Energy for All: 4 Priorities
1. Continue efforts to increase ADB’s investment in energy
access.
2. Facilitate the replication and expansion of energy access
enterprises in Asia and the Pacific.
3. Mobilize and channel resources to address financial,
technical and regulatory barriers in the energy access
sector.
4. Capture and disseminate best practices and sustainable
business models in the energy access sector.
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Energy for All
Partnership
 Primary actors in the energy access space:
o Proponent (energy access enterprises,
government, private-public partnerships, etc.)
o Enabler (incubators, donor programs, brokers,
etc.)
o Investor (equity funds, commercial banks,
financial institutions, etc.)
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Energy for All
Ongoing Activities
KNOWLEDGE MANAGEMENT
 Energy for All website
o Knowledge hub of best practices and business
models
o Idea exchange and concept refinement
o Identifying funding opportunities
 Identify credible projects (CTI-PFAN, New
Ventures)
o Utilizing in-country teams to identify credible
projects, provide relevant capacity building
services, and facilitate investment
CAPACITY BUILDING
 Incubation (SELCO India)
o Incubation models for energy access
Marketing & Outreach
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Energy for All
Ongoing Activities
PROJECT DEVELOPMENT
 Technology Transfer (Inensus, Power Source)
o Technology transfer of mini-grid
management system
PROMOTING PARTNERSHIPS
 Web-based investment facilitation (Impact
Investment Exchange)
o Building an online investment platform for
energy access enterprises
 Partnerships with investors and financial
institutions
o Referral of energy access enterprises in the
investment portfolio
Project Development
Investment Facilitation
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Energy for All
in Action – Simpa Networks
Simpa Networks developed a secure,
prepaid payment platform that makes modern
Energy simple, affordable and investible. This platform utilizes a
combination of hardware and software technology that is tied together
by an SMS and web-based backbone. It enables energy access
enterprises to sell clean energy solutions such as solar home systems,
solar electric microgrids, UPS systems and more.
Business Model
Assistance to Simpa Networks
Energy for All Investor Forum
o Simpa Networks was one of the finalists selected to present in the
Energy for All Investor Forum last June 2012.
o This opportunity gave Simpa Networks increased visibility within
ADB, leading to the Private Sector Operations Department’s
(PSOD) interest in investing in the company.
Investment Facilitation
o PSOD is considering to take an equity stake in Simpa Networks
worth USD 2 million.
o This deal is the first of its kind, considering the deal size, the
maturity of the company and the industry.
o Energy for All seeks to work more closely with PSOD and
understand how to improve deal facilitation.
Due Diligence
o The Energy for All Team is assisting PSOD to conduct feasibility
analysis, valuation and further due diligence for board approval.
Paying the Simpa Way
Consumers can purchase SHS by
paying10-20% of the unit’s cost up
front. The balance will be paid through
the purchase of energy credits every
month.
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in Action – Scaling up Energy Access in Sumba Island
Objectives:
•
•
•
Promotion of small scale
renewable energy
deployment in Eastern
Indonesia using a case study
approach in one island.
Partnership with MEMR,
PLN and governments of
NTT, and Sumba.
Build on prior and ongoing
work (HIVOS, World Bank)
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Scope and Approach
• Grants funds of $3.0 million to
be used for consulting inputs
and output based aid
programs.
• 3-yr implementation period
• Outputs:
– Detailed energy access plan for
Sumba developed.
– Priority investment projects to be
developed by small independent
power producers identified and
prepared.
– Implementation of ongoing and
planned energy access programs
financed by the government
strengthened.
Ongoing Activities
•
•
•
•
Off grid micro hydro (Hivos)
Solar home systems (>30.000 SEHEN)
Increase hydro for the grid (PLN)
Wind turbine preparation for the grid
(Sewatama) and off grid wind (IBEKA)
• Solar pumping pilot (YSS)
• > 100 biogas digestors in 2012
• More to come… (biomass GE, solar PV, ..)
ADB’s Response: Investing in Energy Access
1200
1000
800
9.0
ADB’s investment in energy
access increased to a cumulative
total of USD 2.8 billion from 2008
to 2011, which is expected to raise
new connections to modern energy
to nearly 10 million households.
8.0
7.0
6.0
5.0
600
4.0
400
3.0
2.0
200
1.0
0
0.0
2008
2009
Energy Access Investment (Million USD)
Source: Energy for All, 2012
2010
2011
Beneficiaries (Million HH)
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Proposed ADB Technical
Assistance for Off-grid Renewable
Energy Access in Myanmar
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Background
• The Directorate of Industrial Planning, Ministry of Industry (MOI)
presented a project proposal for rural energy development at the
Myanmar Development Cooperation Forum (MDCF) held in Nay
Pyi Taw (19–20 January 2013)
• MOI chairs the Rural Energy Development Supporting
Committee
• Ongoing efforts (2011–2013) to provide energy access in 591
remote villages
• Implementation of micro-hydro, solar, biogas/biomass
gasification, small wind power systems in remote, off-grid areas,
primarily to provide power to schools and other public facilities in
those areas.
• MOI aims to provide such systems to a further 103 villages and is
seeking funding from bilateral or multi-lateral donors to continue
with the program during 2014–2018.
Key Considerations
• Sustainable approaches that allow for adequate O&M,
and replacement costs.
• Business models that combine capital subsidies
(viability gap financing) with partial cost recovery.
• Draw on domestic manufacturing and fabrication
expertise – rebuild RE equipment supply chains
• Electricity is one of two considerations, what about
cooking fuels and improved cook stoves ?
Suggested Approach?
• Support some pilot installations - not to demonstrate
technology, but models of public procurement, publicprivate partnerships, and viability gap financing models
• Also demonstrate systematic energy access planning
approaches – select 1-2 regions
• Link up with ADB’s $12 million grant for “Enhancing
Rural Livelihoods and Incomes Project” – block grants to
village tracts to undertake priority small scale rural
infrastructure and livelihood subprojects based on village
development plans
Suggested Approach?
• ADB is mobilizing about 1.5-2.0 million USD to carry out
this work
• MOI is convening a workshop in Nay Pyi Taw on June 4
(Tuesday: 8 am – 12 noon)
• Purpose of the workshop: To develop an appropriate
implementation approach and to identify partners
ADB GMS Env Operations Center
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GMS Interactive Atlas
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Thank you
[email protected]
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