Elmar Elbling

Access to Energy Specialist

Picture: ADB Pilot Project Cobrador Island, Philippines

ENERGY FOR ALL

3.8 Billion

Population in

ADB’s DMCs

People without access to

clean cooking

426 Million People without access to electricity

ENERGY ACCESS SITUATION IN ASIA-PACIFIC

2 Billion

ADB’s RESPONSE: ENERGY FOR ALL (E4ALL)

Energy for All Initiative established 2008

INTERNAL goal: Increase ADB’s investment in energy

access projects and enterprises to scale up access to

affordable, modern and clean energy among the regions

poor using renewable energy technologies

EXTERNAL goal: Energy for All Partnership to develop

strategic partnerships and alliances with other stakeholders

• 2009-15: MET TARGET of providing energy access to

100 MILLION people by 2015

• 2015-20: PARTNERSHIP EXTENDED &

GOAL INCREASED TO 200 MILLION by 2020

$1.2 Billion Energy Access

Investment In

2015*

New connections to

electricity for 300,000

households

Improved electricity

service to about

3 million households

Improved gas or

heating for over 40,000

households

ACCOMPLISHMENTS IN ENERGY ACCESS 2015

TRACKING OF OUTPUTS

*Up from $ 400million in 2014

USD 6.4 billion Total ADB investment

in energy access

(2008-2015)

104.5 million Number of people

who will benefit from

ADB’s energy

access investments

ACCOMPLISHMENTS IN ENERGY ACCESS 2008-2015

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2008 2009 2010 2011 2012 2013 2014 2015Imp

rove

d e

ner

gy

acce

ss (

ho

use

ho

lds)

En

erg

y A

cces

s In

vest

men

t (i

n b

illio

n $

)

Year

Number of Households Energy access investment

TRACKING OF OUTPUTS

CHALLENGES TO UNIVERSAL ENERGY ACCESS

*SE4ALL Finance Committee Report 2015

Current Investment

USD 9 Billion

Funding Gap of

USD 40 Billion annually*

NEED FOR UNIVERSAL ENERGY ACCESS GLOBALLY:

USD 49 billion annually*

• According to IEA estimates in 2011, only about 30% of rural electrification needs

are economically met by on-grid electrification

• Out of the remaining 70% of rural electrification, 2/3rd can be economically met by

mini-grids and the remaining 1/3rd by off-grid solutions such as SHS

Sources: IEA Estimates – WEO 2011

OFF-GRID INVESTMENT REQUIREMENT FOR

UNIVERSAL ENERGY ACCESS

• More private sector investment

• More investment in off-grid

electrification

To achieve universal access to energy:

OFF-GRID INVESTMENT REQUIREMENT FOR

UNIVERSAL ENERGY ACCESS

E4ALL IMPLEMENTATION APPROACH

Incubate energy access

business models

from start-up to sustainability

&

help to refine start-ups into

bankable investment

opportunities

PROJECT DEVELOPMENT FACILITY (PDF)

• Capacity Building • Services to Energy Access Stakeholders, e.g. Business Model Workshop for Entrepreneurs, RE for Bankers, RE Finance Workshop

• Project Development • Piloting/ Testing of Business Models

• Structuring of Pilot Transactions

• Investment Facilitation • Services to Energy Access

• Entrepreneurs, e.g. Customized mentoring, investor

matching)

• Investors, e.g. Credit enhancement, Investment referrals

Due Diligence support)

• Knowledge Management • Publication of reports, e.g. SE4ALL Tracking Report, Mini-

grid Report, etc.)

E4ALL IMPLEMENTATION APPROACH Four Pillars

Projects Business Models

Bangladesh: Swarm electrification (SolShare)

Electricity sharing concept where excess energy from solar home systems is diverted to poorer households.

Myanmar: Delivery and installation of Solar Home System in Mandalay Region and Chin State

Clean energy solutions through output-based aid mechanism.

Nepal: Solar mini-grids in rural communities (Gham Power)

Joint investment of private sector company and a community to an energy access project through mini-grid.

Pakistan: GSM-based solar home system Test the design and operation of GSM-based remotely controlled metering systems as basis for pre-paid model

Philippines: RE hybrid system in Romblon (Korea Energy Agency)

Hybridize existing diesel gensets with RE in an isolated island to reduce government subsidy and provide 24/7 electricity service.

Nepal: Dhostekhor Khola Micro Hydropower Pilot

Power supply for income generating activities to support community infrastructure.

Myanmar: Delivery and installation of Mini-Grids

Incentivizing community investment for upgraded energy services

PILOTING OF BUSINESS MODELS

ADB’s RESPONSE: ENERGY FOR ALL

Join the Energy for All Partnership (2015 -2020):

TARGET:

PROVIDE 200 MILLION PEOPLE with MODERN ENERGY

Requested to submit the number of households/people that your organization has

provided with access to energy (yearly)

• Benefits offered to regular members: • Can be invited as participant/speaker in ADB-conducted or sponsored

events

• Avail of early stage project development support

• Access to network of partners (incl. investors, technology suppliers,

financing institutions)

• Avail of knowledge sharing of technical innovations, financing

mechanisms, etc.

• Expand coordination, exchange of best practice approaches and

strategies for scaling up access to energy

FOR MORE INFORMATION:

www.se4all.org

Sustainable Energy for All

– Asia Pacific

@SE4All_AsiaPac

SE4ALL

Website & Social Media

www.energyforall.info

Energy For All Partnership

@energyforall

ADB Energy for All

ADB’s Energy for All

Website & Social Media

secretariat@energyforall.info

14

296

DEALS

CLOSED

35 INVESTMENT

FACILITATION

14 CUSTOMIZED

MENTORING

125 PROJECTS

SOURCED

© Asian Development Bank 2015

14%

7%

43%

14%

21%

Country Distribution of Investment Closures

NEP CAM IND PHI BAN

70 PROJECT

DEVELOPMENT

TOTAL INVESTMENT - USD 22M

PROJECT DEVELOPMENT FACILITY

Project Development Facility (PDF)

• To increase private sector

participation in delivering modern

energy to the poor

• Offers services to clean energy

access entrepreneurs like

• Customized mentoring

• Credit enhancement

• Investor matching

• Offers services to investors like

• Investment referrals

• Due Diligence support

• Risk Sharing Facility

The PDF incubates business models from

start-up to sustainability and helps to refine

start-ups into bankable investment

opportunities

PROJECT DEVELOPMENT + INVESTMENT FACILITATION

PROJECT DEVELOPMENT FACILITY

BUSINESS DEVELOPMENT

WORKSHOPS

ADB organizes Business

Development Workshops to help

clean energy access entrepreneurs

articulate their business model and

develop an investment pitch to attract

funding for their project.

Business development workshops

have been conducted in countries

including Nepal, Myanmar and India.

Energy for All Business Development

Workshop

Yangon, Myanmar

May 2014

PROJECT DEVELOPMENT FACILITY

A venue where energy access enterprises supported by the Energy for All

Program are showcased to investors, financial institutions and other energy

access stakeholders.

ENERGY FOR ALL INVESTOR FORUM

• Held annually in June in Manila during the Asia Clean Energy Forum

• Since recently also in-country events held with first forums in Nepal and Myanmar

PROJECT DEVELOPMENT FACILITY

PROJECT DEVELOPMENT - ENERGY FOR ALL SAMPLE PIPELINE

ENERGY FOR ALL PARTNERSHIP

ADB/Energy for All Project Pipeline

INTERNAL Timeline

Output-Based Aid (OBA) for Promotion of Solar Home System Pilot (MYANMAR) Implemented July

2015

Rural Mini-Grid Project – Gham Power (NEPAL) Inaugurated March

2016

Hybridizing diesel mini-grids with RE - mini-grid Project in Cobrador Island, Romblon

(PHILIPPINES)

Inaugurated March

2016

Pay-as-you-go Solar Home Systems Pilot (PAKISTAN) Implementation underway

Technical assistance/ risk-sharing scheme with OIKO Credit India for issuance of

Working Capital Loans (INDIA)

Implementation underway

Swarm Electrification Pilot Project (BANGLADESH) Implementation

underway

Off-grid Renewable Energy Demonstration Project (MYANMAR) Procurement

underway

Dhostekhor Khola Micro Hydropower Pilot Project (NEPAL) Procurement

underway

Output-Based Aid (OBA) for 100% Energy Access through Promotion of Solar Home

System Pilot (NEPAL)

Procurement

underway

The Partnership was created in 2009 to address energy poverty at the regional scale

TARGET: Provide energy access to 100 million people in Asia Pacific by 2015

Target achieved and surpassed: 104.5 million reached!

Target achieved and surpassed: 104.5 million reached!

ENERGY FOR ALL PARTNERSHIP

Services offered by the PDF

PHASE 1

Project Sourcing

PHASE 2

Project Development PHASE 3

Investment Facilitation

Market Analysis

Local Management credibility

Regional

Technical due diligence

Industry best practices

Business plan

Financial model

Impact assessment

Investor matchmaking

Advisory services

Investor outreach

Direct investment

PROJECT DEVELOPMENT FACILITY PROJECT DEVELOPMENT + INVESTMENT FACILITATION

Develop renewable energy

utilities and implement

biomass power plants &

solar farms in off-grid areas

that are not easily accessible

Provider of affordable energy

to rural low-income households

& renewable energy solutions Clean energy product provider

with a strong after-sales

service targeted to low-income households in India

ONE RENEWABLE ENERGY

ENTERPRISES (PHILIPPINES)

USD 150,000 Equity Investment

SUN-EEE (CAMBODIA)

USD 1M Equity Investment

USD 50,000 Equity Investment

FRONTIER MARKETS (INDIA)

INVESTMENT FACILITATION

SIMPA NETWORKS (INDIA)

USD 2M Equity Investment

Simpa utilizes an innovative,

pay-as-you-go business model

using SMS credits to purchase

solar home systems

Equity Investor:

ADB’s

Private Sector Operations

Department (PSOD)

The PDF featured Simpa Networks

in E4ALL Investor Forum June 2013

E4ALL assisted PSOD in

• due diligence

• valuation process

• preparation of board approval

PROJECT DEVELOPMENT FACILITY

• Clean Energy: Installation of 35kW solar power provides 95kWh of electricity/ day

• Strong Business Model: Private sector/ community participation/ local bank

• Strong partnership with government: collaboration with Alternative Energy

Promotion Centre (AEPC)

• Aggregation: 3 dispersed remote villages in Khotang and Okhaldhunga district

combined in one larger project

• Economic activity: Power for households and productive uses

• Sustainability: Operation & Maintenance - one person residing on-site serving

the 3 villages in case of power supply emergencies

NEPAL

PILOT: Solar Mini-grids in Rural Communities

PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION

FEASIBILITY STUDY: Hybridizing Existing Diesel Power Plants

• Collaboration with NEA and KEMCO

• 5 sites in remote islands in the

Philippines

• Designing of least cost renewable

energy option

• Hybridization of existing diesel mini-

grids with renewables to • increase efficiency

• increase reliability

• reduce fuel costs

• Proof of financial viability

• Business model for replication through

electric cooperatives/ other private

investors and potential scale up

through ADB

SABTANG, BATANES

COBRADOR. ROMBLON

LOGBON, ROMBLON

STO. NINO, WESTERN SAMAR

BANTAYAN ISLAND, CEBU

MINI-GRIDS FOR ELECTRIFICATION

PROJECT DEVELOPMENT PHILIPPINES

• Clean Energy: 30 kW solar PV plant and

hybridizing with existing diesel gensets

• Strong Business Model: Collaboration with

local distribution utility (electric

cooperative)/replication of business model –

Philippines has a large number of isolated grids

powered by diesel

• Strong partnership with government:

collaboration with National Electrification

Administration/tapping of financial incentive

schemes

• Economic activity: Power for households and

productive uses (marble industry, boat making)

• Sustainability: Operation & maintenance by a

electric cooperative

PILOT: Solar Hybrid in Cobrador Island, Romblon

PHILIPPINES PROJECT DEVELOPMENT MINI-GRIDS FOR ELECTRIFICATION

Scoping Report: Off-grid renewable energy opportunities in

Myanmar

• Field visit to Mandalay Region & Chin

State

• Household & demand surveys

• Proposes solutions & pilot project for

Mandalay Region

• Solar Home Systems, Mini-grids, Solar

lantern charging stations

• Phase 1 for pilot to replicate & scale up

through ADB’s South East Asia

department in Phase 2

PREPARATORY STUDY FOR ELECTRIFICATION MYANMAR PROJECT DEVELOPMENT

• Clean Energy: Delivery and installation

of ~1,000 Solar Home Systems

• Innovative Financial Mechanism: ADB

support through output based aid scheme

(OBA)

• Clean Energy: Provision of 1,500 Solar

Home Systems in off-grid villages in

Western Punjab

• Technology Innovation: GSM-based

remotely controlled metering systems as

basis for pre-paid model

• Innovative Financial Mechanism: end-

consumer financing, rent to own model

• Private sector distribution, maintenance,

and customer service in the selected

districts

Myanmar

Pakistan

SOLAR HOME SYSTEMS FOR ELECTRIFICATION

PROJECT DEVELOPMENT

Credit Enhancement Support

• Collaboration with OIKO Credit

India

• ADB is providing technical

assistance and a risk-sharing

mechanism to OIKO Credit India

to encourage them to issue

working capital loans to energy

access companies in India.

• Collaboration with Microfinance

Council of Philippines (MCPI)

• Technical assistance to 2

microfinance institutions (MFIs)

• Assessment of feasible energy

loan products to incorporate into

portfolio

• Focus on household and agro-

processing appliances

Energy Lending Support

FINANCIAL INNOVATION FOR ELECTRIFICATION

PROJECT DEVELOPMENT FACILITY

INDIA PHILIPPINES

• The Program will deploy USD 30 million of investment capital over multiple

private sector companies and impact funds to scale-up mini-grid investment in

India, Indonesia and Philippines

• Co-financing facility with ADB Private Sector Operations Department

• Supported by a USD 3.5 million technical assistance advisory program,

administered by ADB’s Energy for All Initiative

• Investment component includes senior debt, subordinated debt, guarantees

and equity investments along ADB investment

Clean Technology Fund (CTF)/ADB: Renewable Energy Mini-grid Fund and Distributed Power

Generation Program

PROJECT DEVELOPMENT FACILITY Collaboration with ADB Private Sector Operations Department

A debt facility under the CTF of up to USD 6 million to Simpa Energy India

Private Limited has been approved in December 2015

CAPACITY BUILDING

WORKSHOPS

- Energy for All conducts workshops

throughout the year to share its expertise

in the energy access space (eg Energy

Storage, Business Model, Output-Based

Aid, etc.) AFCEF-5 (Thailand)

TECHNICAL STANDARD

WORKSHOP FOR

FIBERGLASS BIODIGESTERS

(Vietnam)

WORKSHOP ON OUTPUT BASED AID (Thailand)

BIOGAS WORKSHOP (Bhutan)

REPORTS

- Energy for All has produced a number of

reports, including feasibility studies in

small islands in the Philippines and

energy access assessment in Pakistan

FLYERS & BROCHURES

- Energy for All has produced a number of

country and thematic flyers to

disseminate knowledge and promote

E4ALL goals

KNOWLEDGE MANAGEMENT

COMMUNICATIONS

TWITTER | @energyforall

• Has 1,200 followers and counting

• Reaches up to 450,000 people per

week

FACEBOOK | Energy for All Initiative

• Has 600 likes and counting

• Reaches up to 2,000 users per

week

WEBSITE | www.energyforall.info

• The E4All website is continuously

undergoing changes to keep up with

the online sphere.

• It features news, events and

publications by E4All and partners.

KNOWLEDGE MANAGEMENT

ADB, through Energy for All, acts as the regional hub for efforts that

contribute to the global Sustainable Energy for All Initiative (SE4All),

alongside UN agencies and development partners.

Universal Energy Access

Energy Efficiency

Renewable Energy

3 GOALS OF SE4ALL:

SUSTAINABLE ENERGY FOR ALL ASIA-PACIFIC REGIONAL HUB

Asia-Pacific Regional Hub (AP Hub)

was launched during ACEF 2014

ASIA-PACIFIC REGIONAL HUB ACTIVITIES

• In October 2014, an SE4ALL Investor Forum was

held in Bangladesh, co-organized by ADB, World

Bank, US Department of State and the Government

of Germany.

• The first SE4ALL Investor Forum was

held in June 2014 during the Asia Clean

Energy Forum in Manila.

SUSTAINABLE ENERGY FOR ALL

ASIA-PACIFIC REGIONAL HUB ACTIVITIES

Monitoring of SE4ALL Goals in the Asia-Pacific

• The Regional Hub is taking the lead in the

publication of the SE4ALL Status Report

in the Asia-Pacific Region to be released

every two years - first report Sept. 2015:

focus on nexus energy-women-children-

health

Download: http://www.adb.org/publications/se4all-

tracking-progress-asia-pacific-summary-report

• SE4ALL Consultation Workshop:

Monitoring the Status of Asia-Pacific on

14 June 2015 to substantiate empirical

data, deepen the analyses of the report and

to document practices, projects, and

synergistic initiatives, specifically

highlighting the nexus energy-women-

children-health

.

SUSTAINABLE ENERGY FOR ALL

New Partnerships

• ADB partnered with Sustainable

Energy Association of Singapore

(SEAS) to establish a Center for

Excellence on Sustainable Energy

and was launched in March 2015

• ADB partnered with IRENA to

support the rollout of cost-effective

renewables to off-grid rural

communities in the Asia-Pacific

region

ASIA-PACIFIC REGIONAL HUB ACTIVITIES

SUSTAINABLE ENERGY FOR ALL