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THE WORLD BANK

ASIA SUSTAINABLE
AND ALTERNATIVE
ENERGY PROGRAM
(ASTAE)

Annual
Status
Report
#14
July 1, 2005 - June 30, 2006
(FY 2006)

ASTAE

February 2007
Washington, D.C.
THE WORLD BANK
ASIA SUSTAINABLE
AND ALTERNATIVE
ENERGY PROGRAM
(ASTAE)

Annual
Status
Report
#14
July 1, 2005 - June 30, 2006
(FY 2006)

ASTAE

February 2007
Washington, D.C.
Copyright © 2007

The International Bank for Reconstruction and Development /


The World Bank Group
1818 H Street, NW
Washington, DC 20433, USA

All rights reserved

First printing: February 2007

Manufactured in the United States of America.

This document is a product of the staff of the World Bank Group. The find-
ings, interpretations, and conclusions expressed herein do not necessarily
reflect the views of the Board of Executive Directors of the World Bank
Group or the governments they represent.
Contents
Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Units of measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Financial Year Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Proof of Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Approval of Projects Supported by ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Funding Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Successful Transition from the 2004–06 to the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . 12
Reaffirmation of the Central Role of East Asia and the Pacific in Achieving the World Bank Group
Bonn Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2. Implementation of Business Plan IN FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Projects Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Follow-Up Project to the First Phase of the China Renewable Energy Scale-Up Program
(P096158/P087292) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Contents
Lao PDR Rural Electrification Phase I of the Rural Electrification APL Program (P075531) . . . . . . . . 19
Achievements under Projects Closed in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
China Energy Conservation (P003606 / P037859) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
India Rajasthan Power Sector Restructuring (P038334) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Projects Added to the Pipeline in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Regional, Sustainable Energy Finance Pacific Project (P098423) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
China, Financing of Two Biomass Projects in Inner Mongolia as Part of the CRESP Project . . . . . . . 23
Fiji Electricity Authority Renewable Power Development (RDP) Project (P099308) . . . . . . . . . . . . . . 24
Indonesia, Energy Efficiency Finance Project (P095746) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Mongolia, Renewable Energy and Rural Electricity Access Project (P099321/P084766) . . . . . . . . . . . 24
China, Energy Efficiency Financing Project (P084874) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Selected Ongoing Non-lending and Knowledge Management Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
China, Jade Electricity: Developing a Green Electricity Scheme for Shanghai . . . . . . . . . . . . . . . . . . . 26
Philippines, Wind Power Training Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
China, Shanghai Energy Resource Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
China, Wind Resource Assessment Handbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
China, Building a Resource Efficient Society Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Outreach and Promotion: ASTAE and REDP Exhibitions at Energy Week 2006 . . . . . . . . . . . . . . . . . 29
3. Progress against ASTAE Business Plan Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Progress against the 2004–06 Business Plan Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Target 1: Households That Received Access to Modern Energy Services . . . . . . . . . . . . . . . . . . . . . . . 31
Target 2: Facilitating Investment in Renewable Energy Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Target 3: Avoiding Additional Fossil Fuel–Based Electricity Generating Capacity through Energy
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Target 4: Avoided Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Other Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

ASTAE Annual Status Report #14 3


Overview of the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Specific ASTAE Targets for the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Indicator 1: Households with New and Improved Access to Modern Energy Services . . . . . . . . . . . . 35
Indicator 2: Facilitate Investments and Generation in Renewable Electricity . . . . . . . . . . . . . . . . . . . 35
Indicator 3: Facilitate Energy Savings as a Result of Efficiency Improvements . . . . . . . . . . . . . . . . . . 35
Indicator 4: Avoided Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Indicator 5: Number of Countries with Projects Supported by ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . 36
4. Utilization of ASTAE Resources in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5. World Bank Resources for ASTAE-Supported Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
6. ASTAE Funding Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
7. Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Annexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Annex 1: A Brief History of ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Annex 2: Energy Lending Statistics for FY02–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Annex 3: ASTAE-Supported Investment Projects—East Asia and the Pacific . . . . . . . . . . . . . . . . . . . . . . . . . 49
Annex 4: ASTAE-Supported Investment Projects—South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Contents

Annex 5: Publications in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50


Annex 6: Important ASTAE Funding Events since 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Boxes Box 1: Adding Energy Efficiency to the Energy Equation in China: ASTAE Bridge Support
between Energy Conservation Projects I and II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Box 2: Scaling Up Greenhouse Gas Mitigation in Asia: Canada International Development
Agency (CIDA) TF050558 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Figures Figure 1: WBG Commitments for Renewable Energy and Energy Efficiency in FY06 . . . . . . . . . . . . . 15
Figure 2: Country Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Figure 3: Allocations by Type of Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Tables Table 1: Changes in FY06 and Status at the End of FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Table 2: ASTAE 2004–06 Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Table 3: ASTAE Indicators 2007–09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table 4: Activities Supported by ASTAE in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Table 5: Resource Utilization, World Bank and Donors, FY92–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

4 ASTAE Annual Status Report #14


Acronyms and Abbreviations
AFR Africa Region
ASTAE Asia Sustainable and Alternative Energy Program
BMZ Federal Ministry for Economic Cooperation
and Development (Germany) (Bundesministerium
für wirtschaftliche Zusammenarbeit und Entwicklung)
BNPP Bank-Netherlands Partnership Program
CIDA Canadian International Development Agency
CO2 Carbon dioxide
CRESP China Renewable Energy Scale-Up Program
DANIDA Danish International Development Agency
DfID Department for International Development
(United Kingdom)
DGIS Directorate-General for International
Cooperation (Netherlands)
DSM Demand-side management
EAP East Asia and the Pacific Region

Acronyms and Abbreviations


ECA Europe and Central Asia Region
EMC Energy management company
ENPOGEN Energy, Poverty, and Gender Project
ESCO Energy Services Companies
ESMAP Energy Sector Management Assistance
Programme
FEA Fiji Electricity Authority
FINESSE Financing Energy Services for Small-Scale
Energy Users (a project)
FY Fiscal year
FY06 Fiscal year 2006 (July 1, 2005 – June 30, 2006)
GEF Global Environment Facility
GTZ German Corporation for Technical
Cooperation
(Deutsche Gesellschaft für Technische Zusammenarbeit)
IBRD International Bank for Reconstruction and
Development
IDA International Development Association
IDF International Development Forum
IFC International Finance Corporation
Lao PDR Lao People’s Democratic Republic
LAC Latin America and the Caribbean Region
MIGA Multilateral Investment Guarantee Agency
PBL Project-based lending

ASTAE Annual Status Report #14 5


PDF Project Development Facility (GEF)
PHRD Japan Policy and Human Resources
Development Fund
PLN Perushaan Listrik Negara (Indonesian State
Electricity Corporation)
PV Photovoltaic
REAP Renewable Energy Action Plan (Vietnam)
REDP Renewable Energy Development Project (China)
SEK Swedish krona
SPRE Southern Provinces Rural Electrification (Lao
PDR)
TA Technical Assistance
U.K. United Kingdom
UNDP United Nations Development Programme
US$ U.S. dollar
USAID U.S. Agency for International Development
Units of measure

USDOE U.S. Department of Energy


USTDA U.S. Trade and Development Agency
WB World Bank
WBG World Bank Group (IBRD, IDA, IFC, MIGA)

Units of measure
GW Gigawatt (1 billion or 109 watts) see also MW
GWh Gigawatt-hour
kW Kilowatt (1,000 watts)
kWh Kilowatt-hour
kWp Kilowatt-peak
MW Megawatt (1 million or 106 watts)
MWh Megawatt-hour
MWhel Megawatt-hour electric equivalent
MWhth Megawatt-hour thermal equivalent
MWp Megawatt-peak
t Ton
tce Tons of coal equivalent
te Tons equivalent
TW Terawatt (1 trillion or 1012 watts); see also MW

6 ASTAE Annual Status Report #14


Foreword

Foreword
he Asia Sustainable and Alternative Energy Program (ASTAE) was estab-

T lished in 1992 to mainstream alternative energy (renewable energy and


energy efficiency) in the World Bank’s energy sector lending operations in
Asia. At its inception, ASTAE’s strategic objective was to drive renewable energy
and energy efficiency investments to become 10 percent of the World Bank’s ener-
gy lending in Asia. This initial objective was achieved when alternative energy
components and projects reached more than 12 percent of the Bank’s power sec-
tor lending in Asia during FY1998–2000, and renewable energy and energy
efficiency became an important component of country strategies in the region.
At the Bonn International Conference on Renewable Energies in June 2004, the
World Bank Group (WBG) committed itself to increasing energy efficiency and
renewable energy investments by 20 percent per year over five years
(FY05–09). So far, during FY05 and FY06, WBG investment support for
alternative energy has exceeded the Bonn commitment. The East Asia and the
Pacific Region contributed to this success substantially with an investment of
US$232 million in new clean energy in FY06, including US$103 million for
new renewable energy, US$72 million for energy efficiency, and US$57 million
for hydropower above 10 MW.
The successful ramping-up of alternative energy investment projects in Asia would
not have been possible without ASTAE. Furthermore, especially during recent
years, ASTAE’s role has been much more than just facilitating achievement of the
growth in renewable energy and energy efficiency investment projects to the point
where they comprise a sizable portion of the investment portfolio. ASTAE has
enabled project teams to mobilize world-class expertise to contribute on difficult
issues of technical design, institution building, financial engineering, regulatory
policy, social development policy, sector planning, and local capacity building.

ASTAE Annual Status Report #14 7


This has fostered the development of a series of new, innovative project
approaches, far deeper institutional development than is common for most
investment projects, broad awareness building on the potential for further clean
energy development, and a vibrant cross-exchange of operational experience on
alternative energy. This mobilization of expertise and knowledge to develop new
ideas, and the subsequent required hands-on assistance to operationalize and
implement them, is the key to long-term results in the new, growing business of
alternative energy investment projects — and is truly a special contribution of
ASTAE.
This report focuses on ASTAE’s work during the specific period of FY06, and
hence provides only a snapshot of ASTAE’s overall contribution in recent years.
Even so, the diversity and breadth of ASTAE’s work is striking. During FY06,
ASTAE was not only able to maintain and consolidate strategically important
work in China and Vietnam, but it also increased activities in a broader range of
countries, including Cambodia, Fiji, Indonesia, Laos, Mongolia, Papua New
Guinea, Solomon Islands, and Timor-Leste.
Citing only some examples from FY06, work on rural electrification and energy
efficiency strategies in Indonesia sought to lay a foundation for possible future
operational programs. Further along the project cycle, energy efficiency, institu-
Foreword

tional development, and renewable energy program components were developed


for the Bank’s new two-phase rural electrification Adjustable Program Loan in
Lao PDR. ASTAE-supported experts designed the more challenging aspects of the
new Mongolia Renewable Energy for Rural Access Project, which was subse-
quently approved by the Bank’s Board in late 2006.
Even further down the project cycle, ASTAE provided essential assistance for
addressing thorny implementation issues in the China Renewable Energy Scale-
Up Project (CRESP), which is one of the largest and most ambitious renewable
energy scale-up projects ever developed by the Bank. ASTAE provided support to
encourage Chinese cities to adopt particularly innovative packages of building
energy efficiency investments and heating system reform, associated with the
China Heat Reform and Building Energy Efficiency Project. Cross-country work
also continued as work on energy, poverty, and gender (ENPOGEN) issues pro-
gressed further, and Chinese project counterparts helped project counterparts in
Papua New Guinea gain access to new solar photovoltaic (PV) packages suitable
for low-cost applications in rural schools.
ASTAE’s work in FY07 promises further new innovations and efforts to scale up
results. With China’s requests for knowledge, experience, and new ideas to fur-
ther improve energy efficiency and more aggressively develop low-carbon energy
sources, expertise through ASTAE, combined with increasing Bank and Global
Environment Facility (GEF) investments, could make truly remarkable new con-
tributions. For example, building on past success in developing a new industry of
energy services companies (ESCO), the Bank is developing a new US$200 mil-
lion Energy Efficiency Financing Project loan, to launch new energy efficiency
lending programs in Chinese banks. In Vietnam, preparation of a new multi-
donor investment operation to foster private sector renewable energy development
is just being launched, as is a new long-term program to develop energy efficien-

8 ASTAE Annual Status Report #14


cy businesses in the local market. Work in small countries is expanding, too. In Fiji,
for example, the Bank, with ASTAE assistance, is supporting the Fiji Electricity
Authority to make Fiji the second country in the world (after Norway) to obtain
all its electricity from renewable resources on a least-cost basis. With these and
other initiatives requested by clients, the importance of ASTAE’s work is expected
to increase.
The year 2006 also signified the completion of the first business plan period for
the new structure of ASTAE. The strategic recommendations from the 2002
Management Review have worked well. In measurable results, the ASTAE
Business Plan 2004–06 provided targets for new renewable energy generation
capacity and avoided energy generation capacity through energy savings, which,
once implemented, would result in a reduction of CO2 emissions of 156 million
tons during a 20-year period. The important role played by ASTAE in delivering
these results would not have been possible without the generous support received
from ASTAE supporters.

Junhui Wu
Sector Manager
East Asia and Pacific Energy and Transport Unit (EASTE)

Foreword
The World Bank

ASTAE Annual Status Report #14 9


1
Executive Summary
1
Executive Summary

Background
In 1992, the World Bank and its donor partners established the
Asia Sustainable and Alternative Energy Program (ASTAE) to
support the transition to environmentally sustainable energy
use in developing countries in Asia by increasing World Bank
lending for energy efficiency and renewable energy project
components and projects. The ASTAE mandate was later
extended to encompass energy poverty, and its objective
became to “scale up the use of sustainable energy options in
Asia to reduce energy poverty and protect the environment.”
Although ASTAE support to World Bank projects can repre-
sent only a small part of the total preparation cost, its timeli-
ness to address unforeseen problems is of great importance
and in some instances vital. According to many task managers,
development of some of the projects supported by ASTAE
would not have been possible (such as for the Sri Lanka Energy
Service Delivery Project and the China Renewable Energy
Development), or they would have taken a much longer time
(such as for the China Renewable Energy Scale-Up Program).
A history of the ASTAE program is provided for reference in
Annex 1.
By the end of June 2006, ASTAE had supported the prepara-
tion and implementation of 46 World Bank and/or Global
Environment Facility (GEF) projects in 17 countries in Asia
and the Pacific. Through FY06, 35 of the 46 projects support-
ed by ASTAE were approved by the World Bank Board of

10 ASTAE Annual Status Report #14


Executive Directors. These 35 projects will provide access to
modern energy sources to about 1.55 million households and
improve the electricity services of another 600,000 house-
holds, directly avoiding more than 1 GW in electricity generat-
ing capacity equivalent as a result of energy efficiency improve-
ments (and indirectly an additional 3.5 GW equivalent). The
projects will also directly install 860 MW in renewable electric-
ity generating capacity (and indirectly an additional 4.9 GW)
and directly reduce more than 200 million tons of CO2 in
greenhouse gas emissions (and indirectly an additional 1,200
million tons).1 The total investment of the 35 projects is
US$2.64 billion, of which US$989 million is provided by the
IBRD and IDA and US$244 million by the GEF.
This annual report concentrates on the activities that occurred
during the financial year 2006, which started July 1, 2005 and
ended June 30, 2006. It should be noted that a given financial
year may not be representative of the full range of ASTAE-sup-
ported activities, which more often than not overlap over sev- 1
eral years.

Executive Summary
Financial Year Highlights
Proof of Concept
The important highlight this year is proof of the ASTAE con-
cept. ASTAE concluded its first three-year business plan sub-
sequent to the Management Review in 2002, which recom-
mended a change both in the structure and the focus of ASTAE
activities. From an independent unit, ASTAE became an inte-
gral part of the East Asia and Pacific Energy Unit. At the same
time, ASTAE’s activities started to include a focus on access to
modern energy services. This also made it possible for ASTAE
to move from general qualitative targets to output-based tar-
gets.
ASTAE also received funding for its 2007–09 Business Plan
from the Government of the Netherlands, which made a com-
mitment to provide US$7.4 million in funding for ASTAE II.
Last, but not least, ASTAE was again instrumental in the East
Asia and the Pacific Region’s achievement of being the second
largest contributor to the WBG commitment made in Bonn in
1. Data here are approximations for all 2004 to scale up investments in energy efficiency and renew-
the ASTAE-funded projects. For example,
approximately 752,500 households have able energy.
been or will be connected through projects
approved in the period 1992–2003. Another Approval of Projects Supported by ASTAE
797,500 households were connected through
projects approved by the World Bank Board In FY06 the World Bank’s Board of Executive Directors
of Executive Directors during 2004–06.
Similarly, estimates are made for the approved two projects that had received ASTAE support. The
Renewable Energy and Energy Efficiency total sustainable energy investment from these projects will be
Indicators, with the indicators for 2004–06
reported in detail in the current report. US$168 million, of which US$96 million derives from IBRD

ASTAE Annual Status Report #14 11


and/or IDA commitments and US$3.7 million derives from
GEF commitments. The projects supported by ASTAE consti-
tuted 23 percent of World Bank and GEF total energy lending
in East Asia and the Pacific Region (see Annex 2 for further
details). The expected outcomes of the two projects are sum-
marized as follows:
• China Follow-Up to CRESP, Phase 1B is expected to pro-
vide for the installation of 128 MW of renewable energy and
to displace 6.4 million tons of CO2 over a 20-year period.
• The second project approved by the Board, Lao PDR Rural
Electrification Phase I of the Rural Electrification APL
Program, will provide access to new electric connections for
52,000 households, while saving 15.3 GWh of electricity
through efficiency improvements and displacing 0.0443
million tons of CO2 over a 20-year period.
Funding Mobilization
1 The Swedish Agency for International Development has indi-
cated that it would start to contribute to ASTAE with SEK
15 million for a period of more than three years.
Executive Summary

The Government of the Netherlands approved ASTAE’s


2007–09 Business Plan and provided a commitment of
US$7.4 million for FY06–08. The first disbursement of
US$2,598,540 was received.
Successful Transition from the 2004–06 to the 2007–09
Business Plan
Building on the achievements and even exceeding most targets
of the ASTAE 2004–06 Business Plan, the forthcoming
ASTAE 2007–09 Business Plan was drafted, discussed, and
approved by its principal donors. This new business plan sets
forth updated targets and improves on ASTAE’s performance
based on the lessons learned during the past three-year plan.
In the ASTAE 2004–06 Business Plan, the first four targets
provide the core indicators of success for ASTAE’s contribu-
tion to the scale-up of sustainable energy and access in Asia.
One of the lessons learned is that the World Bank’s activities,
particularly in the area of energy savings, are moving more and
more from financing direct investments to facilitating invest-
ments by the private sector. Such indirect achievement of the
expected impacts was not initially anticipated in the 2004–06
Business Plan. In this report, we report on both the expected
direct and indirect effects from investments that benefited
from ASTAE support. The 2007–09 Business Plan now also
contains specific targets for these indirect outcomes.
The targets listed below are indicative figures based on the
final project appraisal before the project goes to the World

12 ASTAE Annual Status Report #14


Bank Board for approval. The figures listed are, therefore,
forward-looking figures that will be confirmed after closing
the projects, following the due diligence of the Implemen-
tation Completion Report.
Households That Received Access to Modern Energy Services
The 2004–06 Business Plan target was to provide access for
1 million households. Not only did ASTAE achieve close to
80 percent of this target, but it also contributed to helping
more than 600,000 households in Vietnam that previously
had limited access (only 2 to 3 hours of electricity per day)
obtain more reliable and longer supplies. This means that
almost 1.4 million have received or will receive new or
improved access — a successful, if different, outcome from the
original target. For the period 2007–09, keeping in mind this
dual outcome, the targets were set to 500,000 households for
new access and 500,000 households for getting improved
services.
Facilitating Investment in Renewable Energy Capacity
1
In 2003, ASTAE set 1 GW as a target for investments for the

Executive Summary
period 2004–06. In direct investments, ASTAE facilitated
about 25 percent of that target (266 MW). However, through
guarantees provided by Bank loans and GEF grants for new
renewable investments by the private sector, ASTAE over-
achieved this target by nearly five times. More than 4.9 GW of
investments in renewable energy generation capacity are
expected to be generated. For the period 2007–09, ASTAE
not only has a capacity indicator (350 MW directly and 3GW
indirectly), but also an actual energy generation indicator with
an expected energy generated by the new investments expressed
in GWh (1,000 GWh directly and 3,000 GWh indirectly).
Avoiding Additional Fossil Fuel–Based Electricity Generation
through Energy Savings
The target for the reporting period started out as 1 GW. From
the start of the reporting period, ASTAE had difficulties in
recording the amount of avoided capacity in this unit, since
most Bank projects focused on the amount of GWh saved.
With this in mind, in the period 2004–06 ASTAE facilitated
the saving of 250 MW capacity — only 25 percent of the target
of 1 GW. However, through private sector investments facili-
tated by Bank and GEF guarantees or other credit-enhancing
mechanisms, more than 3.5 GW capacity was avoided —
3.5 times the target. In ASTAE targets for 2007–09, this tar-
get is no longer used, but rather is replaced with energy units:
direct and indirect amount of GWh saved. The targets set
are:1,000 GWh directly and 10,000 GWh indirectly, through
private sector investments.

ASTAE Annual Status Report #14 13


Avoided Greenhouse Gas Emissions
The 2004–06 Business Plan did not have an explicit reduc-
tion of CO2 emissions as a target. However, ASTAE translated
the renewable energy and energy efficiency targets into a CO2
emission reduction target of 156 million tons over a 20-year
period. Again, through direct Bank-financed investments,
ASTAE achieved a little more than a third of the 156 million
ton target (58 million tons CO2 equivalent). However, if the
actually facilitated emission reductions are taken into account,
ASTAE will have overachieved its target by nearly 8 times with a
projected reduction of 1,240 million tons of CO2 emissions.
The target for the 2007–09 period is set for a reduction of
78 millions ton of CO2 through direct investments and 10
times this amount — 780 million tons of CO2 emissions —
through indirect Bank support.
Other Targets
1 The 2004–06 Business Plan had a number of other targets,
including expansion of the number of countries in which
ASTAE would provide support and process focused targets. All
Executive Summary

those targets were achieved and are shown in chapter 2. Now


that the new structure of ASTAE is well established, these
process-focused targets have not been incorporated in the
2007–09 Business Plan.
Reaffirmation of the Central Role of East Asia and
the Pacific in Achieving the World Bank Group
Bonn Commitment
The WBG committed itself to scaling up its support for renew-
able energy and energy efficiency in developing countries at
the 2004 International Conference on Renewable Energies in
Bonn, Germany. In addition to supporting specific programs
and policies, the WBG adopted a target of 20 percent average
annual growth in energy efficiency and new renewable energy
commitments between FY05 and FY09 (the “Bonn target”).
For the second year in a row, the WBG has outperformed its
Bonn target. In FY06, the WBG’s financial support for
renewable energy and energy efficiency was US$860 million.
Commitments were shared between US$221 million for new
renewable energy, US$447 million for energy efficiency, and
US$192 million for hydropower above 10 MW (see Figure 1).
East Asia and the Pacific contributed largely to this success
and provided US$103 million for new renewable energy,
US$72 million for energy efficiency, and US$57 million for
hydropower above 10 MW. This placed it as the second-high-
est contributing Region this financial year. The Region alone
provided 46 percent of the total new renewable energy com-

14 ASTAE Annual Status Report #14


Figure 1: WBG Commitments for Renewable Energy and
Energy Efficiency in FY06

Executive Summary

ASTAE Annual Status Report #14 15


mitments. This was achieved by the simultaneous engagement
of three of the four branches of the WBG, as well as the GEF.
Taken alone, with US$175 million committed for new renew-
able energy and energy efficiency in FY06, the East Asia and
Pacific Region has exceeded by 153 percent the theoretical
Bonn target of US$70 million, based on a 20 percent growth
annually from the US$48 million commitments of FY04.
Since FY04, the East Asia and Pacific Region achieved an aver-
age annual growth in lending commitment of 90 percent for
the Bonn-related targets.

1
Executive Summary

16 ASTAE Annual Status Report #14


2
Implementation of Business Plan in FY06
2

Implementation of Business Plan in FY06


Table 1 summarizes the changes in ASTAE’s portfolio mix
during FY06, as well as the situation at year’s end. For a
description of all projects, see the ASTAE website at
http://www.worldbank.org/astae. The financial details for
projects in East Asia are provided in Annex 3 and those for
South Asia in Annex 4.
Table 1: Changes in FY06 and Status at the End of FY06 This chapter describes the
Changes in FY06 South Asia East Asia and the Pacific Total FY06 progress by present-
Closed 1 1 2 ing: (a) the two projects
Approved 0 2 2
Added to pipeline 0 6 6 approved in FY06; (b) the
Dropped from pipeline 0 1 1
Status at end-FY06 South Asia East Asia and the Pacific Total
progress achieved under the
Total closed 5 9 14 two projects closed during
Under implementation 6 16 22
Pipeline 0 10 10
FY06; and (c) the five proj-
Total 11 35 46 ects added to the ASTAE
pipeline. Each project
overview will include information on the project, its sustain-
able energy component, and the ASTAE support provided or
envisioned, or both.
Projects Approved in FY06
In FY06 the World Bank’s Board of Executive Directors
approved the following two projects:
• Follow-Up Project to the First Phase of the China Renewable
Energy Scale-Up Program (CRESP; P096158 / P087292);
and
• Lao PDR Rural Electrification Phase I Project in support of
the Rural Electrification APL Program (P075531).

ASTAE Annual Status Report #14 17


Follow-Up Project to the First Phase of
the China Renewable Energy Scale-Up Program
(P096158/P087292)
The World Bank’s Board of Executive Directors approved the
Follow-Up Project to the First Phase of the China Renewable
Energy Scale-Up Program on January 5, 2006. This project
was also known in the FY05 pipeline as CRESP Phase 1, Part
B. As indicated by its name, this project provides the funding
to support a subcomponent of the CRESP project already
approved in June 2005.
The objective of this project is to demonstrate early success in
the development of large-scale, renewable energy investments
while enabling the participation of local developers in two
pilot provinces. Such lending is necessary, in addition to the
existing CRESP, to fast-track implementation of projects
while the investment funds from local sources are still in the
2 process of materializing. To do so, the project supports the
establishment of: (a) a 100 MW wind farm at Huitengxile in
Inner Mongolia; and (b) 18 small hydropower plants in
Implementation of Business Plan in FY06

Zhejiang Province, through the rehabilitation of 11 small


hydropower plants that will increase their capacity from 40 to
52 MW, and the construction of 7 new small hydropower
plants for a total capacity of 16 MW. The Huitengxile wind
farm will generate 4,900 GWh during the lifetime of the proj-
ect (20 years), avoiding CO2 emissions of 4.4 million tons
equivalent to 1.2 million tons of carbon. The small hydro
projects are expected to generate an additional 2,500 GWh
during the lifetime of the project, avoiding 2 million tons of
CO2 emissions equivalent to 0.56 million tons of carbon. The
total project cost is US$132.42 million, of which the IBRD is
providing US$86.33 million, local financial intermediaries
US$16.01 million, and the government US$30.08 million.
The bulk of the funding goes to component 1, the Huitengxile
wind farm, with a total of US$101.65 million, including
US$67 million from IBRD. The expected closing date of the
project is September 30, 2010.
ASTAE supported the preparation of this project by providing
the wind farm developer, North Long Yuan Wind Power
Company in Inner Mongolia, with access to international
experience and expertise throughout the early stages of project
implementation. It supported the validation of wind data, the
confirmation of the site selection, as well as technical specifi-
cations, financial evaluations, and the establishment of bid
documents. This confirms and complements the critical sup-
port already provided by ASTAE at all stages of development of
the CRESP.

18 ASTAE Annual Status Report #14


Lao PDR Rural Electrification Phase I of the Rural
Electrification APL Program (P075531)
The World Bank Board of Executive Directors approved this
project, previously called Southern Provinces Rural
Electrification II (SPRE II), on March 27, 2006. The project
is to be implemented in two phases, with the global objectives
of: (a) increasing rural households’ access to electricity in vil-
lages in seven southern provinces; and (b) achieving a global
sustainability for the development of the power sector. A total
of 106,000 rural households are expected to be electrified
within the program’s life.
The project has two subcomponents, implemented by two agen-
cies according to their respective strengths and areas of respon-
sibility. With component 1, Electricité du Laos will concentrate
on grid extension, loss reduction, demand-side management
(DSM), and energy efficiency, and will electrify rural house-
holds within reach of the national grid. With component 2, the
Ministry of Industry and Handicraft will direct the off-grid
2
investment program and the development of innovative off-

Implementation of Business Plan in FY06


grid electrification models to electrify rural households and will
develop the energy sector master plan and strategy. An extensive
capacity building element is also included in each component.
The design of the project has been largely underpinned by the
successes of the previous SPRE project, which was closed in
FY05 (see Annual Report 13) and which also benefited from
ASTAE support. The total proposed project cost is US$72 mil-
lion under a two-phase Adaptable Program Loan (APL), for
which IDA is expected to provide US$25 million, GEF is
expected to provide US$10 million, the Norwegian Agency for
Development Cooperation (NORAD) US$10 million, and the
remainder, US$27 million, to be provided by the government,
Electricité du Laos, and the households. The total committed
funding for the ongoing Phase I is US$36.27 million, includ-
ing an IDA grant of US$10 million and a GEF grant of US$3.7
5 million. Triggers to move to Phase II are multiple, and
include reaching at least 70 percent of the electrification targets
of Phase I totaling 42,000 households for Electricité du Laos
and 10,000 households for the Ministry of Industry and
Handicraft. Throughout the project life, energy savings result-
ing from the DSM and energy efficiency elements are estimated
to be 76.5 GWh or 40,250 te CO2. The off-grid electrification
is also expected to displace 4,050 te CO2, which brings the
combined savings to 44,300 te CO2. If Phase II is triggered, the
expected closing date of the project will be March 31, 2012.
ASTAE provided substantial support during the preparation
of this project. In previous years, in addition to providing

ASTAE Annual Status Report #14 19


direct technical assistance through its program-based consult-
ants, it provided funding to prepare the DSM component of
the project, the analysis of the social impact of rural electrifi-
cation, a review of the tariff structure, and subsidy policies and
a renewable resource assessment and compilation into a data-
base. In FY06, ASTAE funded further just-in-time technical
assistance to help finalize the innovative design of the rural
electrification components through: (a) employment of a
management contractor in charge of supporting the Ministry
of Industry and Handicraft in the design of its components’
activities; (b) preparation of an off-grid rural electrification
master plan and Geographic Information System (GIS) data-
base; (c) preparation of a micro-hydro resource assessment;
and (d) development of legal, regulatory, and institutional
arrangements for the alternative rural electrification models.
Achievements under Projects Closed in FY06
2 In FY06, the following two projects that received ASTAE sup-
port were closed:
• China Energy Conservation (P003606 / P037859); and
Implementation of Business Plan in FY06

• India Rajasthan Power Sector Restructuring (P038334).


China Energy Conservation (P003606 / P037859)
This project was approved on March 26, 1998, and closed on
June 30, 2006, although the GEF component was extended
for one year. The project comprises three components: (a)
demonstration of operation of three energy management com-
panies (EMCs); (b) dissemination of information on the con-
cept of EMCs; and (c) program management and monitoring
of the development of EMCs. The indicators of success includ-
ed: (a) the quantity of energy savings and CO2 reduction; (b)
the number of energy performance contracts and the variety of
companies engaged in these contracts; and (c) the diffusion of
information on energy efficiency measures. More precisely,
during the eight years of the project period, direct energy sav-
ings of 13 million tce and a direct reduction of 9.2 million t
CO2 were expected from the investments of the three EMCs.
In addition, direct savings of 32 million tce and direct reduc-
tion of 24.7 million t CO2 were expected from the investment
lifetime, which will exceed the project duration, and indirect
savings of 24 million tce and indirect reduction of 18.7 million
t CO2 were expected from projects implemented following the
energy information programs.
By June 2006, the direct targets were achieved with energy sav-
ings of 12.8 million tce (98 percent of target) and a reduction
of 11.06 million t CO2 (120 percent of target) according to the
annual report of the project management office. In all, the

20 ASTAE Annual Status Report #14


three EMCs entered into 475 energy performance contracts
with 405 enterprises. Indirect savings, undertaken by entities
other than the three project EMCs following the energy infor-
mation programs, were not yet available.
Total project cost is within the initial budget of US$150.8 mil-
lion, including a US$63 million IBRD loan and a GEF grant
of US$22 million. It is noteworthy that, with US$54.3 mil-
lion, the private and commercial bank portion represented 36
percent of the project total. The outcome of this project is not
yet final, since the GEF part is still open, but it is expected to
be at least rated satisfactory. ASTAE provided general support
to this project, but was more specifically involved in providing
a bridge between this project and the start of Phase II, which
was approved in June 2003. This contribution is detailed fur-
ther in Box 1.

Box 1: Adding Energy Efficiency to the Energy Equation in China: ASTAE Bridge Support
between Energy Conservation Projects I and II 2
In the early 1990s, the concept of energy efficiency was foreign to China. The low cost to energy users and the relative
lack of awareness of the economic, environmental, and health costs meant that the notion of energy conservation and

Implementation of Business Plan in FY06


efficiency was absent from the mind-set of energy planners and project developers.
The Energy Conservation Project I successfully demonstrated through three pilot EMCs in Beijing, Shandong, and
Liaoning that energy performance contracting was feasible in China. It also addressed early implementation issues, in
particular the novelty of the approach, and incorporated lessons learned into subsequent EMC activities. In short, the
EMCs made money, saved energy, and reduced carbon emissions on commercial terms, and thus the concept was ready
for scale-up through the Energy Conservation Project II.
As is frequently the case with the adoption of new concepts and the development of best practices around them,
it took time to design and develop an appropriate financial model. In particular, attention had to be paid to the chal-
lenge for entrepreneurs to mobilize funds in an area unfamiliar to bankers. Attention also had to be paid to the replic-
ability of the model and to the model’s robustness in being scaled up when the concept was applied on a broader scale.
This is where ASTAE, using funding from the U.K. Department for International Development (DfID), provided a criti-
cal bridge between the two Bank phases. The timely ASTAE activities enabled the experience, lessons learned, and
expertise gained by the three Phase I pilot EMCs to be documented in training and technical assistance materials, and
transferred to a new generation of EMCs. These activities led to the development of scores of new EMCs, many of which
successfully obtained financing and developed projects prior to the availability of Phase II loan guarantee financing.
In this process, the ASTAE funding contributed to the creation of the EMC Association, an institution with the single
objective of developing and sustaining EMCs. The EMC Association is considered an outstanding success. It has assisted
50 EMCs in their development through training and technical assistance. It acted as a portal between the government
and the EMC industry, and has been instrumental in the development of government policies that are beneficial to the
EMC industry. It counted 85 members in 2005 which, in one year, invested US$170.5 million and saved 13.6 million tce
and 9.2 million tons CO2.
The EMC industry requires domestic financing to be sustainable. To this end, the major element of Phase II of the China
Energy Conservation Project is a loan guarantee mechanism administered by the Chinese National Investment and
Guaranty Company, I&G. I&G, however, had limited experience with various project-financing packages. Therefore,
technical assistance in customized financial engineering was provided to I&G, local guarantee companies, and commer-
cial banks. International and domestic teams worked with I&G to develop “project-based lending” (PBL) packages,
which would act as alternatives to the traditional approach, which involves Chinese working capital loans that are
secured by assets and counter-guarantees from EMCs. After lengthy work, I&G acknowledged that the use of PBL would
improve risk mitigation while increasing business volume, and it started developing a pipeline of EMC projects for the
I&G loan guarantee. In 2005 I&G guaranteed projects for US$26.8 million, which saved 1.2 million tce and 800,000 tons
CO2.
Finally, the considerable amount of material generated may also be valuable to the development of EMCs, EMC asso-
ciations, energy performance contracting, and/or project-based lending in other developing countries.

ASTAE Annual Status Report #14 21


India Rajasthan Power Sector Restructuring (P038334)
This project, which was approved on January 18, 2001, and
closed on June 30, 2006, provided support to an ongoing
power sector reform process in Rajasthan. It led to higher sec-
tor efficiency and financial recovery, and improved the power
supply by removing critical bottlenecks from the power trans-
mission and distribution system. Key performance indicators
were: (a) the establishment of a fully functioning electricity
regulatory commission; (b) the satisfactory implementation of
the Financial Restructuring Plan, resulting in a financial turn-
around of the five successor companies by FY2005; (c) private
participation in distribution by having strategic investors in
place by end-2002; and (d) investments in the transmission
and distribution system, resulting in improved voltage levels,
reduced outages and technical losses, and increased energy
availability in the service areas affected by investments. Among
the indicators relevant to ASTAE, the loan provided financing
2 for 300,000 improved meters for customers and reduced dis-
tribution losses by saving 0.447 TWhel. Financing included
US$180 million from IBRD and a US$2 million grant from
Implementation of Business Plan in FY06

the U.S. Agency for International Development (USAID) to


co-finance a DSM technical assistance component, for which
ASTAE provided assistance. The outcome of the project is
rated moderately satisfactory.

Projects Added to the Pipeline in FY06


Six projects were added to the pipeline in FY06, bringing the
total to ten projects:
• The Regional Sustainable Energy Finance Pacific Project
(P098423);
• Financing of Two Biomass Projects in Inner Mongolia as part
of the CRESP project;
• Fiji Electricity Authority (FEA) Renewable Energy Power
Project (P099308);
• Energy Efficiency Finance Project, Indonesia (P095746);
• Renewable Energy and Rural Electricity Access Project,
Mongolia (P099321/P084766); and
• Energy Efficiency Financing Project, China (P084874).
Regional, Sustainable Energy Finance Pacific Project
(P098423)
In the Pacific Islands, particularly in rural areas, renewable
energy (and energy efficiency interventions) offers cheaper
options and increased access to modern energy services for
households and micro and small enterprises. For households

22 ASTAE Annual Status Report #14


and small and micro enterprises to switch from traditional fuel
options (kerosene and dry cell batteries) to renewable energy
options (solar PV, pico-hydro, and coconut oil), three impor-
tant barriers exist. The relatively high initial investment is a big
obstacle. Second, financial institutions in the region have
mixed experiences lending to this target group, and they have
no experience lending for energy services. Third, the relative-
ly simple technical knowledge required to operate and main-
tain renewable energy solutions is not readily available. The
proposed regional project will remove the above-mentioned
three barriers by creating a Trust Fund that would provide for
a menu of sustainable financial intermediation solutions, tai-
lor-made for target groups in each of the Pacific countries in
which the project will operate. The project will also provide
technical assistance and training for financial institutions par-
ticipating in the project. The renewable energy options to be
supported under this project are solar PV, pico-hydro, and
locally produced bio fuels (coconut oil) to be used in genera-
tor systems. In exceptional circumstances, based on market
2
demand, other solutions might be financed. The project con-

Implementation of Business Plan in FY06


sists of four components: (a) sustainable energy finance; (b)
creation of a sustainable energy finance fund; (c) local knowl-
edge development and mastering of renewable energy and
energy efficiency technologies; and (d) incentive- or output-
based participant monitoring.
The total project cost, based on project activities starting in
Fiji, Papua New Guinea, and the Solomon Islands, is estimat-
ed to be about US$30 million. GEF is expected to finance
US$10 million, with the rest of the funds coming from a vari-
ety of sources, including private equity, commercial funds, and
other donors, such as the European Union Energy Facility.
China, Financing of Two Biomass Projects in Inner
Mongolia as Part of the CRESP Project
The authorities of the Xin’an Meng, Inner Mongolia, are
planning to develop, with the support of the Inner Mongolian
government, a biomass-based power generation program to
replace small-fired and heavily polluting power plants and sell
electricity to the grid. Initial plans call for 10 MW of biomass-
fired power generation and cogeneration units of 100 MW to
replace all small coal power plants in the short term, and more
in the future. This project, financed two of the potential bio-
mass plants, follows on an ASTAE-funded activity that provid-
ed a scoping study report, including: (a) resource assessment;
(b) regional potential for biomass power; (c) regional market
evaluation; and (d) project identification, a pre-feasibility
study, and other preparation activities.

ASTAE Annual Status Report #14 23


Fiji Electricity Authority Renewable Power Development
(RDP) Project (P099308)
The development objective of this project is to assist the
Government of Fiji in meeting the current and future demand
for electricity with a continuous and reliable power supply at
the lowest possible cost. In particular, the Bank will assist the
FEA in diversifying its energy portfolio to reduce its depend-
ency on diesel oil. Key indicators include: (a) the energy
capacity added to the grid; (b) the amount of actual generation
added to the grid (GWh); (c) the resulting reduction in the
cost of generating electricity (U.S. dollars per kWh), against a
2006 base price and confirmation by a recent power sector
analysis that renewable energy is indeed the least-cost solution;
and (d) the reduction in greenhouse gas emissions.

Indonesia, Energy Efficiency Finance Project


(P095746)
2 Under the Integrated Resource Planning Program, the
Indonesian State Electricity Corporation (PLN) started to
Implementation of Business Plan in FY06

implement a DSM Program. The DSM program includes the


introduction of energy-efficient lamps, energy labeling for
household appliances, and some financial incentive schemes
for consumers to shift peak demand and/or to improve effi-
ciency, as well as energy audit services. It has three subpro-
grams, namely, DSM Peduli (DSM for awareness of energy
efficiency to household consumers at capacity below 900 VA),
DSM PJU (DSM for Public Street Lighting), and DSM Terang
(DSM for poor household consumers at capacity up to 450
VA). The implementation of the program went well. A prelim-
inary survey, done in 2002, shows that about 78 percent of
targeted residential customers under the program have shifted
to energy-efficient lamps. PLN has now requested Bank sup-
port to focus on improving its energy efficiency in the indus-
trial and commercial sector.

Mongolia, Renewable Energy and Rural Electricity Access


Project (P099321/P084766)
This activity stems from an earlier and broader Mongolia proj-
ect: Delivery of Infrastructure Services.
The development objective of the proposed project is to increase
the access to and the reliability of electricity in rural Mongolia,
so as to enhance the living standards of rural communities in
off-grid soums (villages) and individual herders. This objective
will be achieved by: (a) assisting the development of institutions
and delivery mechanisms based on a partnership between the
public and private sectors for rural electrification; (b) facilitat-

24 ASTAE Annual Status Report #14


ing herders’ investments in solar home systems and small wind
turbine systems; and (c) rehabilitating isolated soum center mini-
grids by improving their operations and management practices,
followed by introducing renewable-diesel hybrid generation sys-
tems. The project also will help strengthen the institutional and
regulatory capacity at the national level to develop grid-connect-
ed and off-grid renewable energy supplies.
The key development indicators include: (a) the percentage of
the herder population with access to reliable electricity services
provided by solar home systems and small wind turbine systems;
and (b) the number of off-grid soum centers (and corresponding
population) with improved reliability and affordability of elec-
tricity services supported by renewable-diesel hybrid systems.
ASTAE provided project identification and implementation
support to increase access to electricity and improve reliability of
electricity service among the herder population and in off-grid
soum centers. The project was approved in December 2006.
2
China, Energy Efficiency Financing Project

Implementation of Business Plan in FY06


(P084874)
This project’s objective is to improve energy efficiency in medi-
um- and large-scale Chinese industries by developing lending
programs for sustainable, energy efficiency projects in selected
banks to support energy-efficiency investments in these indus-
tries. The key performance indicators of the project will be
energy savings achieved in medium- and large-scale industries,
and associated emission reductions of greenhouse gases and
other pollutants. Increases in the level of energy-efficiency
project lending in participating banks will also be a key output
indicator. Five commercial banks and two policy banks have
shown strong interest in participating in the project and in
becoming financial intermediaries, four of which (two commer-
cial banks and two policy banks) have already formally submitted
project applications to the government of China.
The proposed outcome of the project is to finance a line of
credit to the selected domestic banks with an IBRD loan of
US$200 million. Under the project, the selected banks will
establish their energy-efficiency lending business with the sup-
port of the proposed technical assistance (up to US$15 million,
including proposed GEF financing), and will utilize their own
financial resources in addition to the Bank loan proceeds to
increase the impact of the project. A proposed technical assis-
tance may also support additional domestic commercial banks
that are committed to energy-efficiency financing, but that are
not participating in the IBRD on-lending support to further
amplify the impact of the proposed project.

ASTAE Annual Status Report #14 25


Selected Ongoing Non-lending and Knowledge Management Activities
In addition to the support to project and program identifica-
tion, development, and implementation, ASTAE provides
support to non-lending and knowledge management activities
that it believes to be beneficial to meeting its objectives. A
description of the most notable activities that took place this
year is provided below.

China, Jade Electricity: Developing a Green Electricity


Scheme for Shanghai
The Green Electricity Scheme for Shanghai was started during
FY04 as an ASTAE flagship project and was declared “best
practice.” Its report describing the project became available in
2006. Green electricity is a product that consumers pay on a
voluntary basis, usually at a premium, if part or all of the elec-
tricity is produced from renewable resources, such as wind and
2 solar. The program will initially support wind and photovolta-
ic electricity only. Green electricity will be available to house-
holds, industries, and commercial customers, although initial-
Implementation of Business Plan in FY06

ly the focus will be on large non-household consumers. The


approach adopted by Shanghai was to start small and to let the
scheme develop and grow with increasing demand and increas-
ing availability of renewable electricity. This means that the
scheme will remain small for some time to come, but that it can
become very substantial over time.
To qualify as a green electricity user, consumers must buy year-
ly blocks of green electricity delivery. The size and number of
blocks is set depending on each customer’s total electricity
consumption. For example, households must buy blocks of 12
kWh per year with a minimum of 10 blocks, and larger cus-
tomers must buy blocks of 6 MWh with a number of blocks
depending on their relative sizes. The incremental cost of
green electricity has initially been set at Y >0.53/kWh (about
6.5 U.S. cents/kWh in 2005). Shanghai’s annual electricity
consumption will soon surpass 100 TWh per year, which can be
compared with the current green electricity consumption of
6.54 GWh per year (less than 0.01 percent). This nonetheless
covers the entire electricity generated by the existing 3.4 MW
Feng Xian wind farm and its 10 kWp grid-connected photo-
voltaic system which, until 2005, were the only renewable elec-
tricity resources available to the Shanghai municipality.
ASTAE took the lead to provide World Bank support, together
with the Energy Sector Management Assistance Programme
(ESMAP) and later joined by the World Wildlife Fund and the
Energy Foundation. Resources were used to provide access to
international expertise and experience. International experts

26 ASTAE Annual Status Report #14


provided advice, both hands-on and in the form of project
reports on specific issues. A policy study tour to Finland,
Germany, and Sweden for senior Shanghai officials provided
information on issues and options for designing and intro-
ducing a green electricity scheme, and helped them make an
informed decision on whether to adopt this approach in
Shanghai. Implementation Training in Canada, Finland, and
the Netherlands helped with the actual design of the scheme.
ASTAE resources were also used to organize the marketing
campaign, prepare promotion materials, and establish and
operate the Shanghai Green Electricity website. In addition,
ASTAE provided overall support through the ASTAE pro-
gram-based consultant and a national renewable energy policy
expert.
Philippines, Wind Power Training Program
This program provided local technical, financial, and eco-
nomic analysis training for stakeholders in the field of wind
power development in the Philippines. The principal recipient
2
was the Philippine National Oil Company — Energy

Implementation of Business Plan in FY06


Development Corporation (PNOC-EDC) which has applied
for carbon financing from the World Bank for a 40 MW wind
farm planned to be established in Burgos, Ilocos Norte, a
project that also receives separate support from ASTAE.
A group of 15 participants from PNOC-EDC and from other
organizations followed a training program designed and deliv-
ered by international consultant specialists in the field. The
first part of the training of the program provided the funda-
mental tools and information for stakeholders who lack basic
knowledge in wind power development related to wind turbine
techniques, environment assessments, financial analysis, pro-
curement and construction issues, and contracting and opera-
tion basics. The second part of the training focused on a small-
er group of eight players, already involved in wind projects in
the Philippines, to improve their capabilities through
advanced training modules on technical and financial analysis.
China, Shanghai Energy Resource Center
The Shanghai Energy Conservation Supervision Center, which
also participated in the design of the green electricity scheme
described above, will renovate three floors in their building to
create a living exhibition on energy improvements that local
citizens can make in their houses and offices. ASTAE support-
ed the design and plans for the renovation, including an eval-
uation of the actual energy savings the proposed modifications
will generate. In order to make these energy improvements
attractive to the general public, the Shanghai Energy

ASTAE Annual Status Report #14 27


Conservation Supervision Center was advised on both energy
efficiency measures and on the most efficient communication
methods. The center was opened in June 2006 and is attract-
ing a large number of visitors everyday.
China, Wind Resource Assessment Handbook
At the International Conference for Renewable Energy in
Bonn, the Chinese government announced a target of 20 GW
of wind installed capacity by 2020, and its plan to conduct 30
wind concessions (each of 100 MW), in addition to the two
pilot wind concessions that have been done. Wind resource
measurement and assessment are important steps for wind
concession schemes and for scaling up wind power. Existing
Chinese practices for wind measurement and assessment are
not yet up to international standards. This ASTAE project
provided a translation of the Wind Resource Assessment Handbook
written by the U.S. National Renewable Energy Laboratory
2 into Chinese to provide guidelines for international standards
on wind resource measurement and assessment in China.
Three cases studies were also developed as an illustration using
Implementation of Business Plan in FY06

the handbook. This package is now an important sourcebook


used by local developers of wind farms in China.
China, Building a Resource Efficient Society Conference
If the current modes of production and trends in consumption
continue, China will face a severe shortage of natural
resources, making sustainable development of the economy
and society an impossible mission. The government has real-
ized this and is determined to transfer the current modality of
economic growth and build a resource-efficient society. To
achieve this goal, the government has shown strong interest in
learning from the successful experiences of both developed and
developing countries, and working with international organi-
zations and multinational companies to create the right insti-
tutional, regulatory, and policy environment for building a
resource-efficient society.
The objective of the ASTAE activity was to conduct a high-level
international conference to facilitate in-depth discussion of
the international experiences and practices, and to discuss the
policy recommendations for China and the action plans the
Chinese government needs to take in order to move toward a
resource-efficient society. The main output was the delivery of
the conference, with the following outcomes: (a) increased
awareness of the Chinese decision makers and general public
about the importance and urgency of resource conservation;
(b) broadened knowledge on the part of the Chinese decision
makers of successful international experiences and practices;

28 ASTAE Annual Status Report #14


(c) a roadmap consisting of principles; (d) the policies and
modalities to be applied to build a resource-efficient society in
China; and (e) follow-up actions by the government, interna-
tional organizations, and business community. Presentations
were posted on websites and are available in Chinese language.
Outreach and Promotion: ASTAE and REDP Exhibitions at
Energy Week 2006
ASTAE and the Renewable Energy Development Project
(REDP) had exhibitions at the 2006 edition of Energy Week.
The exhibit stands were seen by numerous visitors, including
the World Bank President, Paul Wolfowitz, and the Dutch
Minister of Development Cooperation, Agnes van Aardenne.
The ASTAE stand was organized on the theme of the ASTAE
atlas, Sustainable Energy: Less Poverty, More Profits, and offered copies
of the atlas, its accompanying video, and a series of ASTAE-
funded reports and publications printed for the occasion. The
ASTAE stand remains available for future exhibitions.
2

Implementation of Business Plan in FY06

ASTAE Annual Status Report #14 29


3
Progress against ASTAE Business Plan Targets
3
Progress against ASTAE Business Plan Targets

Progress against the 2004–06 Business Plan Targets


In the ASTAE 2004–06 Business Plan of January 2004, which
was revised in March 2005, ASTAE promised its donors to
achieve the targets given in Table 2 by December 31, 2006.
As was reported in the FY05 annual report, the achievement of
the first four targets rests largely on the approval of the three
following projects: Vietnam Rural Energy II, the First Phase of
the CRESP, and China Heat Reform and Building Energy
Table 2: ASTAE 2004–06 Targets
Indicator End-2006 target Progress as of end-FY06
1 Provide additional households 1 million New access: 797,500 households
with improved energy services Improved services: 600,000 households
2 Install additional renewable 1 GW equivalent Direct: 0.266 GW
electricity generating capacity Indirect: 4.9 GW
3 Avoid additional conventional electricity generating 1 GW equivalent Direct: 250 MW equivalent
capacity through efficiency improvements Indirect: 3.5 GW equivalent
4 Mitigate CO2 emissions over a 20-year period 156 million tons CO2 Direct: 58.28 million tons CO2
Indirect: 1,240 million tons CO2
5 Successfully complete sustainable energy projects 8 projects 8 projects completed, of which 6 rated satisfactory
under implementation and 2 unsatisfactory
6 Approve sustainable energy projects or 10 projects 9 projects approved during the period
project components
7 Put in place a strong pipeline of sustainable Not quantified Pipeline end-FY04: 8 projects
energy projects Pipeline end-FY05: 7 projects
Pipeline end-FY06: 9 projects
8 Develop sustainable energy programs China and Vietnam Sustainable energy programs in China and Vietnam
and implement their first phases developed and implementation started
9 Make good progress for developing sustainable 2 countries Programs opening in Fiji, Solomon Islands and in Philippines
energy programs in other countries
10 Implement “flagship” projects 2 projects Green Electricity for Shanghai successfully implemented;
secondflagship project started and ongoing: Sustainable
Finance for Small-Scale Energy Solutions
11 Implement projects in nonenergy sectors 2 projects One project in the water sector in India and one technical
assistance project in the water sector in China

30 ASTAE Annual Status Report #14


Efficiency. Counting the indirect benefits in addition to direct
benefits is justified by the nature of these programs in that they
establish favorable policies and legal and institutional infra-
structures to enable other players, such as the private sector,
financial institutions or other agencies, and the private sector
to develop their own projects that contribute to the targets.
These would not take place without such an enabling environ-
ment or without the enhanced risk coverage provided by GEF
grants or Bank loans. With these caveats, if we take the indirect
benefits into account, and for households the improved serv-
ices, the targets for the 2004–06 Business Plan have been well
achieved.
It should be noted that the targets listed below, as well as earli-
er business plan targets, are indicative figures based on evalua-
tions calculated at the time of appraisal and included in the
official Project Appraisal Documents presented to and
approved by the Board. The figures listed are therefore
forward-looking figures that can only be confirmed after clos- 3
ing of the projects following the due diligence of the
Implementation Completion Report.

Progress against ASTAE Business Plan Targets


Target 1: Households That Received Access to Modern
Energy Services
The 2004–06 Business Plan target was to provide access for 1
million households. ASTAE achieved 80 percent of this figure,
the actual number was 797,500. In addition, more than
600,000 households in Vietnam that had limited access (only
2 to 3 hours of electricity per day) will now be getting more
reliable and longer supplies. This means that almost 1.4 mil-
lion households received new or improved access — a success-
ful, if different, outcome from the original target.
Target 2: Facilitating Investment in Renewable Energy
Capacity
In 2003, ASTAE set 1 GW as a target for investments for the
period 2004–06. In direct investments, ASTAE facilitated
about 25 percent of that target (266 MW). However, through
guarantees provided by Bank loans and GEF grants for new
renewable investments by the private sector, ASTAE over-
achieved this target by nearly five times. More than 4.9 GW of
investments in renewable energy generation capacity are
expected to be generated.
Target 3: Avoiding Additional Fossil Fuel–Based Electricity
Generating Capacity through Energy Savings
The target for the reporting period started out as 1 GW. From
the start of the reporting period, ASTAE had difficulties in
recording the amount of avoided capacity in this unit, since

ASTAE Annual Status Report #14 31


most Bank projects focused on the amount of GWh saved.
Dividing the amount of GWh by 365days times 24 hours will
not always be reliable, because it is not always known what the
capacity factor or the operating hours of the electricity-gener-
ating units are. Although for consistency reasons, the amount
of avoided capacity is reported, this figure needs to be treated
with caution. With this in mind, in the period 2004–06
ASTAE facilitated the saving of 250 MW capacity — only 25
percent of the target of 1 GW. However, through private sector
investments facilitated by Bank and GEF guarantees or other
credit-enhancing mechanisms, more than 3.5 GW capacity was
avoided — 3.5 times the target.
Target 4: Avoided Greenhouse Gas Emissions
The original 2004–06 Business Plan did not have an explicit
reduction of CO2 emissions as a target. However, ASTAE
received a significant contribution through the Canadian
3 International Development Agency (CIDA) from the Canada
Climate Change Development Fund. In recognition of the funds
objectives and in dialogue with CIDA officials, ASTAE translat-
Progress against ASTAE Business Plan Targets

ed the renewable energy and energy efficiency targets into a CO2


emission reduction targets. Like all other agencies, ASTAE also
struggled and is still struggling with a uniform methodology for
translating the energy units into CO2 emission savings.
The combination of the renewable energy and energy efficien-
cy targets explained above translated into projected CO2 emis-
sions savings of 156 million tons over a 20-year period. This is
based on the assumption that the renewable energy will replace
energy derived at 40 percent from coal and 60 percent from
diesel oil. The data on actual emission savings facilitated is
based on the projections, since they are made by Bank staff in
their Project Appraisal Documents. Again, through direct
Bank-financed investments, ASTAE achieved a little more than
a third of the target of 156 million ton (58 million tons CO2
equivalent). However, if the actually facilitated emission
reductions are taken into account, ASTAE will have over-
achieved its target by nearly eight times with a projected reduc-
tion of 1,240 million tons of CO2 emissions.
Other Targets
Following are some of the other targets that have been
achieved:
• Target 5: Successful completion of eight sustainable energy
projects was achieved in volume;
• Targets 6: Nine sustainable energy projects were approved by
the end of FY06 and, with another in the summer of 2006,
the target of 10 was achieved;

32 ASTAE Annual Status Report #14


• Target 7: A strong pipeline is on track with five more projects
entering the pipeline in FY06. The beginning of FY07 has
also seen strong growth;
• Target 8: Development of sustainable energy programs, and
implementation of their first phase in two countries, was
achieved;
• Target 9: The potential for this target, building programs in
two other countries, was achieved with programs opening in
Fiji and the Solomon Islands;
• Target 10: The target of two flagship projects is well advanced
with the Shanghai green electricity scheme finalized, and
good progress has been made in the sustainable finance for
small-scale energy solutions; and
• Target 11: This target proved difficult to undertake, but some
synergies were found with the water sector.

Overview of the 2007–09 Business Plan 3


In 2006, a new business plan was produced and approved for

Progress against ASTAE Business Plan Targets


the 2007–09 period. The goal and objectives of scaling up the use
of sustainable energy options in Asia to reduce energy poverty and protect the
environment remain unchanged, but the strategy has been modi-
fied to refocus on operations and implementation support that
have been the source of ASTAE prior successes and the set of
indicators have been refined (see Table 3).
The current five priority areas (detailed in Table 4, next chap-
ter) have been restructured to three areas of support:
• Development and Implementation Support for Sustainable
Energy Projects and Programs in ASTAE Priority Countries
in Asia.
• Development and Implementation Support for Sustainable
Energy Projects and Programs in Other Countries in Asia.
• Development and Implementation Support for ASTAE
Flagship Activities (such as green electricity and small and
medium-size energy service companies).
China, India, Indonesia, and Vietnam remain the priority
countries, since these are the countries with large sustainable
energy potential and populations. In these countries, projects
and program identification will be allocated 20 percent of the
resources, project/program development 60 percent, and the
remaining 20 percent will go to implementation. In non-pri-
ority countries, the focus will be on those countries that did
not have ASTAE activity in the past.
To this end, the approach will continue to include the following:
• Early program and project identification work;

ASTAE Annual Status Report #14 33


• Quick response to support the urgent needs of task team
leaders for project development (identification and prepara-
tion assistance) and supervision (troubleshooting);
• Project-related capacity building in client countries beyond
what can reasonably be expected to be part of normal project
preparation; and
• Assistance to task team leaders for the mobilization of addi-
tional funds.
As always, ASTAE funds will not be used to replace the Bank
budget for project identification and supervision, but rather
will be used only for activities beyond normal project prepara-
tion and supervision (incremental costs of investing in renew-
able energy and energy efficiency). The standard proposal for-
mat for requesting ASTAE assistance is being maintained,
which will help evaluate task team leaders’ requests based on the
expected contribution in achieving ASTAE targets and pro-
3 gram objectives.

Specific ASTAE Targets for the 2007–09 Business Plan


Progress against ASTAE Business Plan Targets

The indicators and targets for the 2007–09 period have been
refined from the previous business plan, as shown in Table 3.
In particular, the following have been modified:
• Energy savings are
Table 3: ASTAE Indicators 2007–09
Indicator Qualification Value
addressed with actual ener-
1 Households with new and improved Direct New access 500,000 gy savings in GWh rather
access to modern energy services Improved services 500,000 than avoided capacity as was
(number of households) Indirect New access 50,000
previously done;
Improved services 250,000
2 Facilitate investments and generation Direct Investments 350 • The distinction between
in renewable electricity Generation 1,000 direct impact (as result of
(capacity in MW and generation in Indirect Investments 3,000
annual GWhel) Generation 10,000
the project) and indirect
3 Facilitate energy savings as a result of Direct Electric 1,000 impact (induced by the
efficiency improvements Thermal 3,000 project) is generalized, as
(annual thermal savings in GWhth and Indirect Electric 10,000
well as the one between new
annual electricity savings in GWhel) Thermal 30,000
4 Avoid CO2 emissions Direct 78
connections (first-time
(million tons over 20-year period) Indirect 780 service) and improved serv-
5 Number of countries with projects Total 10 ices with respect to rural
supported by ASTAE
electrification; and
• Since achieving the targets will only be possible by implement-
ing projects and programs in the larger countries, indicator 5
has been added to assure that other countries are not left out.
Finally, since ASTAE’s impact now extends beyond the World
Bank, restricting the indicators to projects and programs
approved by the World Bank’s Board no longer covers ASTAE’s
full range of activities. Therefore, both projects approved
by the World Bank’s Board of Executive Directors and verifi-

34 ASTAE Annual Status Report #14


able contributions by ASTAE to multilateral, bilateral, and
indigenous organizations will count toward achieving these
indicators.
Indicator 1: Households with New and Improved Access
to Modern Energy Services
For the period 2007–09, expectations were set to provide
500,000 households with new access and 500,000 house-
holds with improved services. During the first half of FY07,
discussions with task team leaders suggested that ASTAE should
also add an indicator for indirect achievements. This would be
for private sector investments in access to energy services,
which are made possible through guarantees or other credit
enhancements provided through GEF grants, IDA grants or
credits, or IBRD loans. Indirect numbers for households with
access is set at 50,000 for new access and 250,000 for
improved services.
Indicator 2: Facilitate Investments and Generation in 3
Renewable Electricity

Progress against ASTAE Business Plan Targets


Although the installed capacity shows a direct relationship with
the actual investments made, it is not representative of the
amount of energy generated from renewable resources. Small
run-of-river hydro installations might only have 30 percent
capacity factor, while wind turbines often have a capacity factor
ranging between 19 and 25 percent. For the period 2007–09,
ASTAE not only has a capacity indicator in MW, but also an
actual energy generation indicator with the expected energy
generated by the new investments expressed in GWh. Based on
expected trends, ASTAE has lowered the indicator for direct
investments to 350 MW installed with 1,000 GWh production
capacity. However, through credit-enhancing support mecha-
nisms, the Bank is expected to facilitate investments in new
generating capacity of more than 3 GW installed with 10,000
GWh production capacity.
Indicator 3: Facilitate Energy Savings as a Result of
Efficiency Improvements
For the 2007–09 period, the capacity target has been elimi-
nated and replaced with the an energy generation unit: GWh
saved either thermal or electric. The targets set are, respective-
ly, 1,000 GWh directly and 10,000 GWh indirectly (through
private sector investments) for electric GWh; and 1,000 GWh
directly and 10,000 GWh indirectly for thermal GWh.
Indicator 4: Avoided Greenhouse Gas Emissions
As mentioned earlier, the CO2 emissions target was added late
in the prior business plan and was calculated as a combination

ASTAE Annual Status Report #14 35


of the renewable energy and energy efficiency targets over a
20-year period. The data on actual emission savings facilitated
is now based on the projections made by Bank staff in their
Project Appraisal Documents. The target for the 2007–09
period is set for a reduction of 78 millions ton of CO2 through
direct investments and 10 times this amount: 780 million tons
of CO2 emissions through indirect Bank support.
Indicator 5: Number of Countries with Projects Supported
by ASTAE
Meeting the scale-up indicators is only possible by supporting
renewable energy, energy efficiency, and rural electrification
programs in the larger countries. The indicators can be most
effectively met by focusing on only the larger countries.
However, this would leave the smaller countries out, which is
not desirable from an equity point of view. To avoid this con-
flict, an indicator for equitable support to all countries has also
3 been added, requiring that 10 countries receive ASTAE proj-
ect support.
Progress against ASTAE Business Plan Targets

36 ASTAE Annual Status Report #14


4
Utilization of ASTAE Resources in FY06
4

Utilization of ASTAE Resources in FY06


In FY06, ASTAE funded its activities from two ASTAE Trust
Funds, listed below:
• Canadian Trust Fund for ASTAE (TF 050558); and
• The Netherlands third phase support for ASTAE (Bank-
Netherlands Partnership Program (BNPP) TF054670).
Total disbursements in FY06 from these Trust Funds were
nearly US$2 million (US$1,959,983). Table 4 provides details
on the use of resources by activities, and is categorized by the
five strategic areas defined in the 2004–06 Business Plan:
• Development of sustainable energy programs in ASTAE pri-
ority countries;
• Development of sustainable energy projects in other coun-
tries;
• Development of sustainable energy components in non-
energy sector projects;
• Development of “flagship” projects; and
• Outreach and knowledge sharing.
In FY06, 59 percent of the ASTAE disbursement went to three
of the four priority countries (China, Indonesia, and
Vietnam; no activity this fiscal year in India), 24 percent to
non-priority countries, and 17 percent to administration,
ASTAE staff salaries, the Technical Advisory Group, and simi-
lar overhead costs, including publication and outreach (see
Annex 5 for a list of papers and reports generated this finan-
cial year).

ASTAE Annual Status Report #14 37


Bangladesh 1% Vietnam 3% Excluding the administrative costs, the
FY06 disbursements can be viewed in
Timor
Leste terms of recipient country (Figure 2)
9% and of type of activities undertaken
Philippines (Figure 3).
7%
With regard to disaggregating by coun-
Mongolia 7% China try, with 52 percent of disbursement of
Laos 52%
1%
ASTAE funds (see Figure 2), China
remains the main recipient of activities.
Cambodia Indonesia
1% 17% This is in large part because of the China
orientation of the Canadian Trust
Fund, which provided two-thirds of the
resource for this financial year (see Box
Global 2%
2 for more details). This strong support
Figure 2: Country Allocations to China is not surprising as three of the
eight projects supported by ASTAE and
approved in FY04, FY05 and FY06
4 Carbon Finance 5%
were in China. These projects also had,
by far, the greatest contribution towards
achieving the renewable energy and
Utilization of ASTAE Resources in FY06

Economic
Work energy efficiency indicators. It is expect-
13%
ed that in FY07 strong demand from
GEF Grant
Indonesia, Vietnam, and the new Pacific
Technical
Assistance 12% program will provide a good balance.
49% Activity in South Asia was minimal —
Knowledge
limited to follow-up on a small gender-
Products
K
related project in Bangladesh.
16%
The dis-aggregation by type of activity in
Figure 3 shows the focus on operational
IDA/IBRD Credits 5%
activities while also recognizing support
to knowledge products or “think
Figure 3: Allocations by Type of Activity pieces.”

Table 4: Activities Supported by ASTAE in FY06


ASTAE project Type and details of activity FY06 use of funds (US$)
I. Develop sustainable energy programs in ASTAE priority countries in Asia (China, India, Indonesia, and Vietnam)
China: total disbursed US$832,870 (including activity 20 listed under “flagship” project)
1 Heat Reform and Building Energy TA: Technical Assistance 175,428
Efficiency Program • Development of a methodology for evaluating the cost and benefits of
energy efficiency measures;
• Preparation of recommendations for energy efficiency designs for demonstration in Tianjin;
• Review of national testing, certification and labeling system for energy efficient
building materials and products, and dissemination of the study results.
2 Implementation support to the TA: Technical Assistance 161,100
China Renewable Energy Scale-Up • Support North Long Yuan wind power company in the early stages of implementation of
Program (CRESP-I) the 100MW wind farm
• Validation of wind data and choice of site;
• Support to establishment of bid document and assistance in bidding.
3 Biomass resource study in Inner Mongolia TA: Technical Assistance 135,176
• Assess potential for developing a World Bank/GEF project;
• Assess availability of biomass resource either as crop residue or energy crop ands
technical and feasibility of biomass-fired plants;
• Identify project sites, project sponsors and carbon financing.

38 ASTAE Annual Status Report #14


Table 4 (cont.): Activities Supported by ASTAE in FY06
ASTAE project Type and details of activity FY06 use of funds (US$)
4 Building a resource efficient society KP: Knowledge Product 101,954
• High level international conference held in China, targeting government officials and decision makers;
• Provided best international practices and experiences;
• Established a road map of principles, policies and modalities to build a more efficient
development path for China.
5 Shanghai Energy Conservation TA: Technical Assistance 95,046
Supervision Center • Supported the design and plans for the renovation to create a living exhibition
on energy improvements.
6 Renewable Scale-Up Program (CRESP) PE: IDA / IBRD Credits 31,565
• Support to the CRESP team.
7 Compiling Wind Resource Assessments KP: Knowledge Product
• Compilation and publication of wind assessments in China 31,370
8 Implementation support to Renewable PE: IDA / IBRD Credits 25,974
Energy Development Project (REDP) • Support of the establishment of market competition in the PV market.
Setting product standards, for labeling and services.
9 Building Energy Efficiency TA: Technical Assistance 25,689
• Support of the building material markets, regulation, testing and certification.
India: No activity
Indonesia: total disbursed US$280,713
10 Indonesia Electricity Access and Rural EW: Economic Sector Work 170,560
Transformation project • Analysis of RE situation and recommendations for electrification strategies.
“Report Electricity for All” widely distributed;
• Study Tour for PNL and Ministry of Energy to view Rural Electrification best practices.
11 PNL Demand Side Management KP: Knowledge Product
• Assessment of current ongoing DSM programs;
• DSM training courses for PNL staff and industrial customers;
110,153
4
• Industrial energy audit program and monitoring system.
Vietnam: total disbursed US$42,927

Utilization of ASTAE Resources in FY06


12 Support for the supervision of GE: GEF Grant 42,927
the Vietnam Rural Energy II • Assistance to the World Bank team to supervise the GEF project.
Total for Priority Countries: US$ 1,156,509
II. Develop sustainable energy projects in other countries in Asia
13 Cambodia, implementation support to PE: IDA / IBRD Credits 8,588
Rural Electrification and Transmission • Regulatory capacity building for renewables.
14 Lao PDR, Southern Provinces Rural PE: IDA / IBRD Credits 21,134
Electrification II • General preparation support to World Bank team.
15 Mongolia, support for the preparation of GE: GEF Grant 121,020
Renewable Energy for Rural Access Project • Project identification support to increase access to electricity and improve reliability of
electricity service among the herder population and in off-grid soum centers
16 Philippines, support for the supervision of TA: Technical Assistance and GE: GEF Grant 33,576
the Power System Loss Reduction project • Screening of proposed investments by the cooperatives in order to help attract
private sector participation,
• Provide cooperatives and local authorities capacity building
17 Philippines, PNOC Burgos Wind farm CN: Carbon Finance 81,656
• Support to project preparation, due diligence for carbon finance;
• Capacity building of local agencies
18 Timor-Leste, Energy Service Delivery project TA: Technical Assistance 148,991
• Preparation of the Rural Electrification master plan.
• Preinvestment study for project preparation
Total for other Countries (including activity 19, 21 and 22): US$ 459,765
III. Develop sustainable energy components in nonenergy sector projects in Asia
19 Bangladesh, ENPOGEN II KP: Knowledge Product 10,661
• Poverty and Gender project addressing women’s access to modern energy services
• Survey to analyze the structure of demand for energy in women owned enterprise,
analyze it and pilot test interventions designed to enhance such access
IV. Develop ASTAE “flagship” projects
20 Voluntary Green Electricity Scheme for UE-KP: Knowledge Product 49,207
Shanghai • Support design and implementation green electricity scheme
• Support to website, logo creation, and media campaign.
V. Outreach and knowledge sharing
21 ASTAE publications KP: Knowledge Product 7,580
• ASTAE Atlas
22 Global Village Energy Program (GVEP) KP: Knowledge Product 26,560
East Asia • Follow-up activities after the 2005 launch.
23 ASTAE Management/administration ASTAE international-hire and local staff; 343,709
• Technical Advisory Group support;
• Editing services; and
• Administrative support.
Grand total US$ 1,959,983

ASTAE Annual Status Report #14 39


5
5
World Bank Resources for ASTAE-Supported Projects
World Bank Resources for ASTAE-Supported Projects

ASTAE supports alternative energy initiatives at all stages of the


project cycle: identification, preparation, implementation,
and evaluation. At the identification stage, support can be pro-
vided for identification studies or missions, or by supporting
energy sector work to assess issues and options with respect to
alternative energy. At the
Table 5: Resource Utilization, World Bank and Donors, FY92–06
a b
project implementation
Donors World Bank Total
US$ % US$ % US$ %
stage, ASTAE can support
FY92 108,000 32 226,400 68 334,400 100 troubleshooting of alterna-
FY93 827,087 66 419,100 34 1,246,187 100 tive energy components.
FY94 1,399,635 67 688,100 33 2,087,735 100
FY95 1,309,063 56 1,046,000 44 2,355,063 100
ASTAE has also supported
FY96 2,057,058 56 1,618,924 44 3,675,982 100 project evaluation to draw
FY97 1,705,817 59 1,197,128 41 2,902,945 100 out lessons learned and best
FY98 1,617,777 59 1,126,683 41 2,744,460 100
practices from completed
FY99 1,782,576 61 1,156,346 39 2,938,922 100
FY00 2,627,480 63 1,524,004 37 4,151,484 100
alternative energy projects or
FY01 955,281 46 1,106,035 54 2,061,316 100 project components. The
FY02 2,108,541 66 1,106,035 34 3,214,575 100 major part of ASTAE sup-
FY03 2,205,111 64 1,239,633 36 3,444,744 100
FY04 1,014,358 25 3,013,893 75 4,028,251 100
port, however, is devoted to
FY05 2,704,306 44 3,450,703 56 6,155,009 100 project preparation through
FY06 1,959,983 38 3,169,070 62 5,129,053 100 capacity building and sup-
Total 24,382,073 52 22,088,054 48 46,470,127 100
porting studies.
a. Includes the Netherlands, Canada International Development Agency (CIDA), U.S. agencies, the The use of donor funds by
New Zealand Ministry of Foreign Trade, the German Federal Ministry for Economic Cooperation
and Development (BMZ) and the German Corporation for Technical Cooperation (GTZ), the ASTAE totaled US$1.959
European Community, the International Energy Agency, the Danish International Development million in FY06 (see Tables
Agency (DANIDA), the Swedish International Development Cooperation Agency (SIDA), the
Government of the Swiss Confederation, and in-kind contributions. 4 and 5). The use of World
b. Includes World Bank/GEF Annual Discretionary Budget, Office Occupancy, Consultant Trust Bank resources for ASTAE-
Funds, Japan Policy and Human Resources Development Fund (PHRD), International Development
Forum (IDF), and Project Development Facility (PDF) grants. supported projects, includ-

40 ASTAE Annual Status Report #14


ing GEF Bank Budget, totaled US$3.169 million in FY06 (see
Table 5).
Total donor funds utilized by ASTAE since FY92 amount to
US$24.382 million, an amount which is now close to being
matched by the World Bank with a total of to US$22.088 mil-
lion over the same period. Table 5 shows the continuation in
FY06 of the high levels of spending from the Bank’s own budg-
et with an average of US$3.2 million in the last three financial
years. This is triple the yearly average amount in the FY92–03
period. The repartition of
Box 2: Scaling Up Greenhouse Gas Mitigation in Asia: funding between the Bank
Canada International Development Agency (CIDA) TF050558
and ASTAE donors also con-
The Canadian Trust Fund was created to support analytical and advisory firms the break in trend since
services, capacity building, and training to support the development of FY03, where the World Bank
national alternative energy policies and programs, including develop-
ment of mechanisms to promote investments, particularly in China.
provided in average close to
Specifically, the Trust Fund was aimed at funding the following: two-thirds of the funding (62
• Country diagnostic work. percent in FY06). The total
• Technical assistance on policy, regulatory, technical, economic, and
financial issues related to scaling up alternative energies.
budget for alternative energy 5
remains the second highest in
• Stakeholder consultations, workshops, and capacity building of client
FY06 and double the yearly

EWorld Bank Resources for ASTAE-Supported Projects


country stakeholders and Bank staff on alternative energy (that is, non-
lending technical assistance). average of the FY92–03 peri-
• Technical studies related to project identification, such as, but not lim- od, thus confirming the
ited to, resource assessment and reconnaissance studies. strong commitment of the
• Other activities needed to scale up alternative energy development in
client countries.
region to the development
The Trust Fund has funded 23 activities in 9 countries for a total disburse-
and scale-up of alternative
ment of US$2,857,225. It has achieved a high level of outputs, both in energies.
quantity and quality, and has supported or enabled sizable World Bank
One of the resource utiliza-
lending related to renewable and energy efficiency investments leading
to mitigation of up to 1,292 million tons of greenhouse gas once these tion highlights this year was
projects are implemented. It successfully combined this effort with the closure of the Canadian
achievement of a major Millennium Development Goal by facilitating Trust Fund, TF050558, on
access for over 750,000 households to modern energy sources at the com-
pletion of these projects. The level of achievement of the Trust Fund was
March 31, 2006. Both the
rated Highly Satisfactory in the Implementation Completion Canadian officials and the
Memorandum. World Bank task managers
The key projects supported by the Trust Fund were described in the pre- were extremely satisfied with
vious annual report, but the following ones can be highlighted:
the use of the CIDA Trust
• China Building Efficiency, which set the stage for the Heat Reform and
Building Energy Efficiency Project.
Fund, which enabled 23 activ-
• The ASTAE video and atlas, which highlighted ASTAE’s achievements in ities in 9 countries. Box 2
renewable energy and energy efficiency. More than 5,000 paper and CD provides further information
copies of the atlas was distributed, and it is estimated that the video, from the Implementation
shown by BBC and China CCTV, was viewed by more than 240 million
people.
Completion Memorandum
• Green Electricity for Shanghai was an ASTAE flagship activity that pro- relative to this Trust Fund.
vided reports, analysis, study tours, and training to the Shanghai
Municipality to establish a voluntary green electricity scheme.
• Support to the CRESP, which happened both at the preparation and the
implementation stage and was aimed at enabling commercial renew-
able electricity suppliers to provide energy to the power market effi-
ciently, cost-effectively, and on a large scale.

ASTAE Annual Status Report #14 41


6
ASTAE Funding Status
6
ASTAE Funding Status

In FY06, two Trust Funds provided resources for ASTAE:


• Canadian Trust Fund for ASTAE (TF 050558); and
• The Netherlands third-phase support for ASTAE (BNPP
TF054670).
The Canadian Trust Fund for ASTAE was closed on March 31,
2006. All resources from this Trust Fund have been disbursed
for a total of US$2,857,225, as described in Box 2.
While no new formal commitment was made this financial year,
the Netherlands’ commitment for ASTAE II in the amount of
US$7.424 millions, funding years 2006–08, was signed into
agreement in May 2006. The first tranche of this ASTAE II
funding was received in FY07, in July 22, 2006, for an amount
of US$2.598 million, thus opening a second Trust Fund avail-
able in FY07, TF57088. Securing this latest support from the
Netherlands closes the gap of resources for ASTAE from 2006
to 2008 as identified in the 2007–09 Business Plan.
Further resources are still required for 2009, and advanced dis-
cussions toward a funding commitment have been held with
many potential donors throughout the year. These funding
negotiations will be continued in FY07, with specific attention
to paid to three countries that have shown interest in such future
support. The Swedish Agency for International Development
has indicated that they would start to contribute to ASTAE with
SEK 15 million for a period of three years.
For reference, a list of the important ASTAE funding events that
have happened since January 2000 is provided in Annex 6.

42 ASTAE Annual Status Report #14


Staffing
7 7

Staffing
Ms. Junhui Wu, Sector Manager, East Asia and Pacific Energy
and Transport Unit, is the ASTAE Program Manager, and
Antonie de Wilde is the ASTAE Coordinator.
There were three coterminous field staff members in FY06.
Mr. Ximing Peng is located in the World Bank office in Beijing
and supports sustainable energy activities in China and
Mongolia. Mr. Ky Hong Tran is located in the World Bank
office in Vietnam, and covers Vietnam, Lao PDR, and
Cambodia. Sustainable energy activities in Indonesia and
Timor-Leste are covered by Mr. Eka Zarmen Putra, located in
the World Bank office in Indonesia.

ASTAE Annual Status Report #14 43


A
Annexes
Annex 1: A Brief History of ASTAE
Annexes

ASTAE grew out of the Financing Energy Services for Small-


Scale Energy Users (FINESSE) project, initiated by ESMAP
and bilateral donors in 1989. Following a joint request from
Asian borrowers and donor partners, the Bank acted to imple-
ment the FINESSE recommendations by creating the Asia
Alternative Energy Unit (ASTAE) as part of the Asia Technical
Department in January 1992.
ASTAE was originally set up as a three-year pilot program with
the objective of “mainstreaming” alternative energy in Asia,
which was defined to include energy efficiency and renewable
energy. Its original target was to increase the share of alterna-
tive energy in Bank power sector lending in Asia to 10 percent
of the total.
In the initial years, the ASTAE strategy to achieve its objective
was opportunistic. ASTAE actively had to market the idea of
alternative energy to government agencies in client countries, as
well as to Bank task team leaders, country directors, and man-
agement. Initially, ASTAE supported those task team leaders
with a positive attitude toward alternative energy by carrying out
small activities to support projects under preparation wherever
there was demand. Activities slowly increased in size and impor-
tance, leading to alternative energy components and eventually
to stand-alone projects. The energy efficiency activities sup-
ported by ASTAE were in general related to DSM and the estab-
lishment of EMCs. The renewable energy tasks were performed
mainly on electricity projects for connection or reinforcement
of grids and rural electrification mostly using PV.

44 ASTAE Annual Status Report #14


The creation of ASTAE coincided with the establishment of the
GEF in 1991. Most of the components or stand-alone projects
supported by ASTAE received GEF financing. The synergy with
the GEF has proved to be one of the success factors for ASTAE.
The original objective of ASTAE — to mainstream energy effi-
ciency and renewable energy in World Bank operations — has
been achieved. The initial target of a 10 percent share of alter-
native energy lending in the Asia energy sector was surpassed
during FY97–FY2000. With the support of ASTAE, more
than US$1 billion of alternative energy projects or project
components have been developed, including about US$500
million in World Bank loan and GEF grant. Status Report #10
(April 2003) estimated that the projects supported by ASTAE
and approved by the World Bank Board of Executive Directors
between FY93 and FY02 provided access to 660,000 house-
holds, installed 570 MW of renewable electricity-generating
capacity, and avoided 720 MW of conventional electricity-gen-
erating capacity as a result of efficiency improvements. The A
2. Seven task managers in East Asia Energy current project portfolio is large and diverse, and 14 task team
(EASEG), six task managers in South Asia
leaders are now managing energy efficiency and renewable

Annexes
Energy (SASEI), and one task manager in
South Asia Environment (SASES). energy projects or project components.2
Critical to the success of ASTAE was the true partnership
between donors and the World Bank. ASTAE provided the
resources through Trust Funds that were used to support
important activities in a timely and flexible way. Although the
ASTAE Trust Funds covered only a small part of project prepa-
ration costs, the strategic use of these funds enabled construc-
tion of a project pipeline far greater than would have been pos-
sible in their absence. Donors to ASTAE have included
Canada, Finland, the Netherlands, Switzerland, the United
Kingdom, and the United States, of which the Netherlands has
been the biggest.
In response to the World Summit on Sustainable Development,
ASTAE has extended its definition of alternative energy to
include technologies addressing energy poverty, in addition to
renewable energy and energy efficiency which are generically
termed sustainable energy technologies. Including technologies
to address energy poverty will enable ASTAE to reach a far greater
number of energy-poor households than previously possible.
The First Decade of ASTAE (1992–2002)
In the first decade, ASTAE succeeded in mainstreaming alter-
native energy in the East and South Asia Regions in the World
Bank, and developed a large portfolio of alternative energy
projects and project components. This conclusion is support-
ed by donor, Bank, and external reviews carried out during the
last three years.

ASTAE Annual Status Report #14 45


With support from ASTAE, the East and South Asia Regions of
the Bank have developed 39 stand-alone alternative energy
projects or components. Of these, 8 have been closed (4 in
East Asia and 4 in South Asia), 15 are under implementation
(10 in East Asia and 5 in South Asia), and 16 are under prepa-
ration (12 in East Asia and 4 in South Asia).3 The cost of the
3. See ASTAE Status Report #10, April 2003. 23 alternative energy projects or project components under
implementation or closed is US$1.4 billion. Alternative ener-
gy projects or components in the pipeline are valued at more
than US$1 billion.
4. The GEF commitment for alternative ener- At US$55 million, GEF commitments for alternative energy
gy projects in FY2000–02 in the East Asia and projects completed and under implementation in the East Asia
Pacific Region alone was 51 percent of the
total alternative energy commitments for the and Pacific and South Asia Regions are by far the largest for the
World Bank and IFC together. World Bank and IFC together.4
ASTAE clearly contributed to increased alternative energy
applications to an extent that would not have been possible with
A the Bank’s budget alone. It also contributed to tilting the
Bank’s lending agenda in Asia toward alternative energy more
than might otherwise have occurred, to the point that it has
Annexes

evolved into one of the main lending themes.

New ASTAE Approach (2004–2006)


In 2000, ASTAE started to formulate a new strategy for
2000–05. The strategy shifted the focus from mainstreaming
within the World Bank to mainstreaming in client countries
with the aim of substantially scaling up the impact of alterna-
tive energy with respect to the environment and poverty reduc-
tion. The new strategy was presented at the ninth donor meet-
ing in April 2000, but was not followed through into imple-
mentation. The ASTAE Management Review and the World
Summit for Sustainable Development, both of which took
place in 2002, reactivated the discussion on the strategic
direction of ASTAE.
The management review was first proposed by the East Asia
Energy and Mining Unit (EASEG) following the 2002 meet-
ing of the Consultative Group on Energy Trust Funded
Programs and initiated after a new Infrastructure Department
was established in East Asia and Pacific Region. The objective
of the management review was to develop a vision statement
and medium-term strategy and business plan, consistent with
the Bank’s corporate priorities and budgetary constraints. The
main conclusions were that ASTAE still had an important role
to play, but that the definition of alternative energy should be
extended to include energy poverty. Additionally, the mandate
of ASTAE to support only renewable energy had on occasion
created an impression of technology push.

46 ASTAE Annual Status Report #14


The World Summit on Sustainable Development, held in
Johannesburg in August and September 2002, gave new impe-
tus to global action to fight poverty and protect the environ-
ment. The agenda for sustainable development was broadened
and strengthened to emphasize particularly the linkages
between poverty, the environment, and the use of natural
resources. Energy was central to the negotiations and out-
comes, although in the end, no energy targets were adopted.
The important commitments made at the summit related to
energy focused on access to energy, renewable energy, energy
efficiency, and energy markets.
The Consultative Group of the Energy Trust Funded
Programs, which met in Berlin in April 2003, suggested that,
based on these two developments, a new ASTAE strategy and
business plan for the next three years was needed.
The new ASTAE strategy supports the implementation in Asia of
the WBG commitment made at the International Conference
for Renewable Energies in Bonn (June 2004) for at least 20 A
percent average growth annually in both our energy efficiency

Annexes
and renewable energy investments between FY05 and FY09.
The commitment applies to the WBG as a whole, including the
World Bank (IBRD and IDA), IFC, and MIGA, together with
GEF cofinancing in projects executed by the WBG.

ASTAE Annual Status Report #14 47


Annexes

48
A
Annex 2: Energy Lending Statistics for FY02–06
Lending and GEF support (US$ million)
FY 0 2 F Y0 3 FY 0 4 F Y0 5 FY 0 6
World Bank lending 19,519 18,513 20,100 22,307 23,641
East Asia and the Pacific 1,774 2,311 2,613 2,883 3,401
South Asia 3,508 2,919 3,417 4,993 3.797
Asia total 5,282 5,230 6,030 7,876 7,198

ASTAE Annual Status Report #14


Energy lending total 1,975 1,088 966 1,822 3,030
East Asia and the Pacific 315 254 67 359 425
South Asia 505 151 130 84 483
Asia total 820 405 170 443 908
Lending for alternative energy and access to energy services East Asia and the Pacific 17.2 0 26.0 307 96
South Asia 132.9 49.2 30.0 0 0
Asia 150.1 49.2 56.0 307 96
Lending for alternative energy and access (% of energy lending) East Asia and the Pacific 5.5% 0.0% 52.0% 86% 23%
South Asia 26.3% 32.6% 25.0% 0% 0%
Asia 18.3% 12.1% 32.9% 69% 11%
GEF support for alternative energy* East Asia and the Pacific 4.5 31.5 26.8 43 3.7
South Asia 16.0 0.0 0.0 0 0
Asia 20.5 31.5 26.8 43 3.7
Energy investment total (lending + GEF) East Asia and the Pacific 319.5 285.5 76.8 402 428.7
South Asia 521.0 151.0 120.0 84 483
Asia 840.5 436.5 196.8 486 911.7
Alternative energy investment (lending + GEF) East Asia and the Pacific 21.7 31.5 52.8 350 99.7
South Asia 148.9 49.2 30.0 0 0
Asia 170.6 80.7 82.8 350 99.7
Alternative energy investment (% of energy investment) East Asia and the Pacific 6.8% 11.0% 68.8% 87% 23%
South Asia 28.6% 32.6% 25.0% 0% 0%
Asia 20.3% 18.5% 42.1% 72% 11%

* The GEF contribution in this table is limited


to the US$3.7 million in support of ASTAE
objectives this financial year, irrespective of
the total GEF contribution in Asia of US$21.5
million in FY06.
Annex 3: ASTAE-Supported Investment Projects—East Asia and the Pacific
Cost in million of dollars
Total cost
Approval alternative
(estimated energy (AE) Source of financing
Country Projects end date) project cost IBRD/IDA GEF Govt. Private Other Primary project component
Closed projects
1 Lao PDR Provincial Grid Integration 10/92–1/00 0.9 0.9 n.a. n.a. n.a. n.a. DSM, institution building
2 Thailand Distribution System and Energy Efficiency 4/93–6/00 59.3 n.a. 8 20.3 n.a. 31 DSM, capacity building
3 Indonesia Second Rural Electrification 2/95–9/00 19.3 13.3 n.a. 6 n.a. n.a. Minihydro, geothermal resource assessment, and TA
4 Vietnam Power Development 2/96–6/00 1.6 0.5 n.a. n.a. n.a. 1.1 Renewable energy capacity building
5 Indonesia Solar Home Systems 1/97–FY04 3.4 0.1 2.3 n.a. 1 n.a. Solar home systems and TA
6 Thailand Metropolitan Distribution Reinforcement 6/97–FY04 4 n.a. n.a. 2.5 n.a. 1.5 DSM management capacity building
7 Lao PDR Southern Provinces Rural Electrification 3/88–FY04 2.2 1 0.7 0.5 n.a. n.a. Solar battery charging and microhydro projects
8 China Passive Solar Heating for Rural Health Clinics 6/01–FY04 1.5 n.a. 0.8 0.8 n.a. n.a. Energy efficient building design
9 China Energy Conservation 3/98–6/06 150.8 63 22 7 54.3 4.5 Energy efficiency and TA
Total closed projects 243 78.8 33.8 37.1 55.3 38.1
Projects under implementation
10 Vietnam Transmission, Distribution and Disaster Reconstruction 1/98–FY07 3.3 n.a. n.a. 0.5 n.a. 2.8 DSM capacity building, equipment standards
11 China Renewable Energy Development 6/99–FY07 205.4 13 27 n.a. 165.4 n.a. Wind farms, PV, PV technology improvement
12 Vietnam Rural Energy I 5/00–FY07 2.5 1 n.a. n.a. n.a. 1.5 Renewable energy TA and pilot minihydro
13 China Hebei Urban Environment 6/00–FY07 5 4 n.a. 1 n.a. n.a. Energy efficiency in water utilities
14 Vietnam System Efficiency Improvement, Equitization and Renewables 6/02–FY08 24.5 17.2 4.5 2.8 n.a. n.a. Renewable energy and DSM
15 China Energy Conservation II 10/02–FY10 242.5 n.a. 26 n.a. 216.5 n.a. Energy service company market development
16 Vietnam Demand Side Management 6/03–FY07 18.6 n.a. 5.5 1.2 6.7 5.2 DSM support
17 Philippines Rural Power 12/03–FY10 26.7 10 9 0.2 n.a. 7.5 Renewable energy for rural applications
18 Cambodia Rural Electrification and Transmission 12/03–FY09 32 16 5.8 n.a. n.a. 10.2 Renewable energy for rural applications
19 Philippines Power System Loss Reduction 6/04–FY12 62.3 n.a. 12 0.3 n.a. 50 Rural Electrification
20 Vietnam Rural Energy II 11/04–FY11 329.5 220 5.3 70 n.a. 35 Renewable energy for remote communities
21 China Heat Reform and Building Efficiency 3/05–FY11 52,6 n.a. 18 0.9 33.7 n.a. Energy efficiency
22 China Renewable Energy Scale-Up Program 6/05–FY10 336 87 40.2 142 n.a. 67 Renewable energy and energy efficiency
23 Papua New Guinea Teachers Solar Lighting Project 6/05–FY11 2.9 n.a. 1 0.1 1.7 0.1 Renewable energy (PV) for teachers in rural areas
24 China Renewable Energy Scale-Up Program Phase 1 Part B 1/06–FY11 132.4 86.3 n.a. 30.1 16 n.a. Wind Farm and small hydro
25 Lao PDR Lao PDR Rural Electrification Phase I (SPRE II) 4/06–FY11 36.3 10 3.7 8.2 n.a. 14.3 Renewable energy for rural application
Total projects under implementation 1,459.9 464.5 158 257.3 440 193.6
Board Estimated AE WB/GEF/PCF
Projects under preparation for the next two fiscal years approval project cost financing Primary project component
26 Mongolia Heating and Building Energy Efficiency FY08 40 8 Energy Savings in District Heating
27 Mongolia Renewable Energy for Rural Access Project FY07 23 7 Renewable Energy and Energy Efficiency
28 Timor Leste Electricity Access for Rural Transformation FY08 10 5 Implementation of Mandated Market Share
29 Philippines Burgos Wind Farm FY07 42 10 Renewable energy partly financed with carbon credits
30 Indonesia Rural Electrification Project FY09 400 200 Rural electrification
31 Pacific Islands The Regional Sustainable Energy Finance Pacific Project FY07 30 10 Financing access to sustainable energy
32 China Financing of two biomass projects in Inner Mongolia FY08 — — Biomass plants
33 Fiji FEA Renewable Energy Power project FY07 48 34 Switch to renewable energy
34 Indonesia Energy Efficiency Finance Project FY09 — — DSM
35 China Energy Efficiency Financing Project FY08 215 215 Private financing of energy efficiency programs
Total projects under preparation 808 489
Total projects closed, under implementation, and under preparation 2,510.9 953.57
— Not available. n.a. Not applicable.

ASTAE Annual Status Report #14


49
Annexes
A
Annexes

50
A
Annex 4: ASTAE-Supported Investment Projects—South Asia
Cost in million of dollars
Total cost
Approval alternative
(estimated energy (AE) Source of financing
Country Projects end date) project cost IBRD/IDA GEF Govt. Private Other Primary project component
Closed projects
2 India Renewable Resources Development 12/92–6/02 284 115 26 17 72 54 Small hydro, wind farms, photovoltaics, and TA

ASTAE Annual Status Report #14


2 Sri Lanka Energy Services Delivery 3/97–5/03 44.6 22.1 5.7 1.9 14.9 Solar home systems, village and microhydro,
pilot wind farms, DSM
3 India Orissa State Power Sector Restructuring 5/96–FY04 10 10 n.a. n.a. n.a. n.a. DSM, metering
4 India Andra Pradesh Power Sector Restructuring 2/99–FY04 4.6 n.a. n.a. n.a. n.a. 4.6 Energy efficiency agricultural pump sets
5 India Rajasthan Power Sector Restructuring 1/01–6/06 2 n.a. n.a. n.a. n.a. 2 TA for DSM and energy efficiency for privatized
distribution companies
Total closed projects 345.3 147.1 31.7 18.9 86.9 60.6
Projects under implementation
6 India Renewable Energy II/Energy Efficiency 6/00–FY07 300 130 5 25 140 Energy efficiency, minihydro, and TA
7 India Uttar Pradesh Water Sector Restructuring 2/02–FY08 40 25 n.a. n.a. n.a. 15 Canal based small hydro
8 Bangladesh Rural Electrification and Renewable Energy Development 6/02–FY08 30.2 16.4 8 5.8 n.a. n.a. Off-grid renewables
9 Sri Lanka Renewable Energy for Rural Economic Development 6/02–FY08 133.7 75 8 0.8 49.9 n.a. Renewable energy in rural areas
10 Nepal Power Development 5/03–FY09 86.8 49.2 n.a. 9.8 24.7 3.1 Mini- and microhydro
Total projects under implementation 593.7 298.6 21 41.4 214.6 18.1
Projects under preparation
11 India India Madhya Pradesh Water Sector Restructuring (P073370); 9/04–FY11 3 3 n.a. n.a. n.a. n.a. Energy savings in irrigation
Total projects closed, under implementation, and under preparation 939 319.6 n.a. Not applicable.
Annex 5: Publications in FY06
The following were papers published by ASTAE or reports prepared through ASTAE-funded ini-
tiatives during FY06:
Electricity for All. Options for Increasing Access in Indonesia. East Asia Energy and Mining Unit,
the World Bank Group. December 2005.
Shanghai: Developing a Green Electricity Scheme. Noureddine Berrah, Enno Heijndermans,
and Mark D. Crowdis. Final ESMAP and ASTAE Report. September 2006.
Energy Efficiency for Water and Wastewater. Hebei Pilot Phase II, June 2003. Consultant report
published by ASTAE. March 2006.
Assistance to the Government of Indonesia’s Demand-Side Management Program. Consultant report,
Econoler International for the World Bank Group. January 2006.
Burgos Wind Farm Project. Consultant Technical Review, Philippines, Risø National
Laboratory for ASTAE. June 2006.
Biomass Energy Development. Scoping Study in Inner Mongolia, China. ASTAE, the World Bank
Group. November 2005.
Local Production Potential for Segments of Renewable Energy in Fiji. Consultant assessment for
ASTAE. March 2006. A

Annexes
Annex 6: Important ASTAE Funding Events since 2000
Year Month Agency Event Amount (US$) Source
2000 January Netherlands Dutch Partnership Trust Fund Tranche #3 530,000 Neth. Partnership
April ASTAE Donors Meeting #9
May U.K. DfID Tranche #1 633,368 U.K.
May Netherlands BNPP Tranche #2 1,000,000 B/NPP
July Finland Finnish Trust Fund Tranche #2 179,583 Finland
October UNDP UNDP Trust Fund Tranche #6 848,806 Neth./UNDP
November Finland Finnish Trust Fund Tranche #3 179,583 Finland
2001 April ASTAE Donors Meeting #10
April Netherlands Dutch Partnership Trust Fund (1,250,000) Neth. Partnership
August Netherlands Dutch Partnership Trust Fund Tranche #4 1,250,000 Neth. Partnership
August U.K. DfID Tranche #2 745,193 U.K.
2002 April ASTAE Donors Meeting #11
April U.K. DfID Tranche #3 469,014 U.K.
2003 January U.K. DfID Tranche #4 117,014 U.K.
a
March Canada CIDA Climate Change Development Fund Commitment (2,780,000) Canada
April Canada CIDA Tranche #1 1.675,141 Canada
April ASTAE Donors Meeting #12
May U.K. DfID Tranche #5 378,578 U.K.
2004 March ASTAE Donors Meeting #13
March U.K. DfID Tranche #6 363,351 U.K.
March Canada CIDA Tranche #2 563,562 Canada
May Netherlands Commitment ASTAE Phase 3 Funding 2004–06 (€3.3) (4,000,000) Netherlands
October Canada CIDA Tranche #3 591,871 Canada
2005 January Netherlands Dutch Partnership Trust Fund Phase 3 Tranche #1 1,454,500 BNPP
February Canada CIDA Tranche #4 202,544 Canada
March ASTAE Donors Meeting #14
May Netherlands Commitment for ASTAE II Funding 2006–08 Netherlands
2006 March ASTAE Donors Meeting #15
May Netherlands BNPP Agreement signed for ASTAE II, 2006–08 (7,424,400)b BNPP
July Netherlands BNPP Tranche #1, ASTAE II 2,598,540 BNPP
Note: Does not include annual World Bank support.
a. To be disbursed in four tranches over a three-year period.
b. To be disbursed in six tranches over a three-year period.

ASTAE Annual Status Report #14 51