Energy Sector Investments

ASIAN DEVELOPMENT BANK

Priyantha Wijayatunga, PhD
Principal Energy Specialist
Energy Sector Group
Asian Development Bank

ADB Business Opportunities Seminar

Tokyo, Japan
31 January 2017
 Outline

ADB Energy Policy

Energy Sector in 2016
Clean Energy Projects
Energy Project Pipeline
Final Remarks
 ADB Strategy 2020
Mid Term Review
Strategic Priorities
Poverty reduction and inclusive economic growth
Environment and climate change
Regional cooperation and integration
Infrastructure development
Middle-income countries
-Adjusting to the requirements

Private sector development and operations

Knowledge solutions

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ADBs Current Energy Policy
BILLION
Prioritizes sustainable energy and low-
carbon development
Three main pillars:
Accelerate clean energy development in all
sectors
Maximizing access to energy for all especially the
rural poor
Policy reform in energy sector to support low-
carbon development
Energy Policy
BILLION
Environment and climate
strategic priorities
General points:
Maintain clean energy investments
at $2 billion a year annually
Emphasize energy efficiency
Prioritize sustainable energy for all
New Targets for Climate Finance
Phase 1: 2016 to 2020
$6 billion annually by 2020
(2x current financing levels)

ADAPTATION
$2 BILLION
$3 BILLION
RENEWABLES
MITIGATION
ENERGY EFFICIENCY
$4 BILLION

$1 BILLION
SUSTAINABLE TRANSPORT
SUSTAINABLE CITIES
ADBs
CORE BUSINESS

Finance and Advice for Guarantees

Development Solutions Equity Investments
Loans Policy Dialogue
Technical Assistance Knowledge and
Grants Partnerships
 TOTAL ASSISTANCE
ADBs
$31.5
2016 OPERATIONS BILLION

17% increase from 2015

$17.5 billion loans and grants, sovereign and
nonsovereign
$14.4 billion non-concessional loans from ADBs
Ordinary Capital Resources
$3.1 billion concessional loans and grants from the
Asian Development Fund
Energy Sector Lending 2016

Multitranche
Financing Facilities
$1.56 billion Sovereign
$2.13
billion

Total $5.2 billion

from OCR and ADF
Grants
$70 million

Non-
sovereign
$1.51
billion
Clean Energy Investments
3.00

2.50

2.00

1.50

1.00

0.50

0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CE Investment Target
 ADB Clean Energy Projects
Solar and Wind
Hydropower
Concentrated solar thermal power
Solar Rooftop
Solar-wind-diesel hybrid
Off-grid prepaid solar PV
Carbon Capture and Storage

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 ADB CE projects.
Generation efficiency improvements
Replacing aging hydroelectric equipment
and controls
Replacing old gas turbine plants with
combined cycle plants
Adding steam turbines to existing gas
turbine plants

12
 ADB CE projects .

Transmission and distribution

improvement
New lines, substations to reduce
overloading
Distribution strengthening for increased
distributed RE evacuation
High temperature low sag conductors to
almost double capacity (Nepal)
Segregation of consumers (India)
HV distribution
13
 ADB CE projects .
Demand side EE
Efficient lighting Households, small
businesses and street lighting
Smart metering for prudent use
Improving policy and regulatory
environment for CE development

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 Salient Projects
Pakistan: Access to Clean Energy Investment Program
Results based loan to expand access to renewable energy, notably
through micro hydro and decentralized solar

Peoples Republic of China: Air Quality Improvement in the

Greater Beijing-Tianjin-Hebei Region
Addresses major pollution sources (industries, transport, utilities,
agricultural waste) with high technology solutions

Solomon Islands: Solar Power Development Project

Grid-connected solar to replace diesel generation across five islands

India: ReNew Clean Energy Project

Loan facility to finance the construction of 398 MW of solar power
and 311 MW of wind power projects across six states
 Salient Projects
Maldives: Knowledge Partnership with Applied Energy
Development of a pilot towards making the Maldives 100%
renewable energy based

India: Solar Rooftop Investment Program

Financing to Punjab National Bank to make loans to developers and
end users for installation of rooftop solar systems

Private Sector: Fluidic Distributed Energy Storage Solutions

Equity co-investment to explore zinc-air battery technology
ENERGY PROJECT PIPELINE

Energy projects
2017-2019 ADF and OCR Operations

Department 2017 2018 2019

CWRD 1,869.76 1,875.00 1,408.80
SARD 1,577.00 1,015.29 1,165.00
EARD 100.00 600.00 500.00
PARD 41.00 155.10 69.00
SERD 1,100.00 500.00 1,913.00
PSOD
TOTAL 4,687.76 4,145.39 5,055.80

GRAND TOTAL 13,888.95

CLEAN ENERGY PROJECT
PIPELINE
Clean energy projects only
2017-2019 ADF and OCR Operations
Department 2017 2018 2019
CWRD 119.76 380.00 645.00
SARD 727.00 515.29 650.00
EARD 100.00 - -
PARD 36.00 47.10 9.00
SERD - - 100.00
PSOD 725 800 875
TOTAL 1,707.76 1,742.39 2,279.00

GRAND TOTAL 5,729.15

 Project Pipeline 2017
AFG MFF Energy Supply Improvement Investment Program (Solar),
Tranche 3
AZE MFF Shah-Deniz II Gas Development Project, Tranche 2
PAK Sustainable Energy Sector Reform Program - Subprogram 4
PAK Power Transmission Enhancement Investment Program 2, Tranche 2
PAK MFF Second Power Distribution Enhancement Investment Program,
Tranche 2
TKM Efficiency Conversion of Derveze and Dashoguz Power Plants
UZB Power Generation Efficiency Improvement Project
UZB Second Solar Project
BAN Khulna 800MW LNG-based Combined Cycle Power Plant
IND Assam Power Sector Investment Program-Tranche 3
IND HP Clean Energy Transmission Investment Program-Tranche 3
 Project Pipeline 2017
Maharashthra Feeder Separation & High Voltage Distribution System
IND Project 1
Mumbai Efficient Transport & Electricity Distribution Improvement
IND Project 1
NEP Power Transmission and Distribution Efficiency Enhancement Project
SRI Wind Power Generation Project
PRC Gansu Jinta Concentrated Solar Thermal
SOL Tina River Hydropower Project (Provincial Renewable Energy Project,
Phase 2)
TON Outer Island Renewable Energy Project (additional financing 2)
VAN Energy Access Project (2016 Tentative)
INO Sustainable and Inclusive Energy Subprogram 2
INO Sustainable Energy Access in Eastern IndonesiaElectricity Grid
Development Program 2
VIE Power Transmission Investment Program (Tranche 4)
 Final Remarks
Energy sector lending increasing
Continues its efforts in clean energy
development
Hand-in-hand with energy access improvement
Provide soft support to create an enabling
environment
Introduce new and high level technologies
Lessons from other countries and regions
Encourage new policies/regulations
South-South cooperation
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