Project Name Asia Energy Efficiency Accelerator
Project Number 46241-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8483-REG: Asia Energy Efficiency Accelerator
Clean Energy Fund - Multi-Donor US$ 2.00 million
TA 8483-REG: Asia Energy Efficiency Accelerator (Supplementary)
Department for International Development US$ 200,000.00
ADB Co-financed Assistance Fund US$ 200,000.00
TA 8483-REG: Asia Energy Efficiency Accelerator (Supplementary)
United States Agency for International Development US$ 100,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Energy efficiency and conservation
Gender Equity and Mainstreaming No gender elements
Description

The proposed R-CDTA is consistent with ADB's Strategy 2020 and its 2009 Energy Policy which lists promoting energy efficiency and renewable energy as one of its three key pillars. The R-CDTA will support selected DMCs' own initiatives to improve demand-side (rather than supply-side) energy efficiency for specific projects, enhance energy security, improve productivity and limit environmental impacts, especially carbon emissions that contribute to global warming and climate change.

The proposed R-CDTA will expand ADB's clean energy investments, focusing on DSEE, by establishing systematic energy efficiency strategies and action plans in selected priority DMCs with a view to integrating them into Country Partnership Strategies (CPS) and/or Country Operations Business Plans (COBP). The detailed work of integrating DSEE into the CPS and/or COBP of priority countries, following in-depth consultation with DMC governments, is beyond the scope of this R-CDTA. However, its outputs can be used in support and facilitation of such an outcome. DSEE strategies and action plans will use an assessment of the selected DMC's current activity and capacity to specify key thematic priorities for scaling-up DSEE, as well as the recommended tools and approaches that may best be used to increase DSEE deployment and investment.

Project Rationale and Linkage to Country/Regional Strategy

Given its current strategic focus on clean energy and climate change mitigation, ADB is already a leader in investing in energy efficiency in Asia and in capacity building for successful practices and models. Approximately 45% of ADB's clean energy portfolio is for energy efficiency, though most of this clean energy investment is dominated by supply-side EE, such as transmission and distribution investments (T&D). Further, barriers and institutional contexts for DMCs differ widely, and so DSEE projects have to date been largely ad hoc and opportunistic in nature.

To scale-up ADB's DSEE investment activity, major barriers need to be addressed on both sides of the borrower-financier interaction:

1. Lack of host country capacity and awareness about the demand for EE projects - loans and investments by ADB or other financiers need to be country-led, but in many DMCs, there is a low level of awareness and demand for DSEE projects. In addition, counterpart agencies such as electric utilities are often supply-side oriented and the most commonly requested assistance is for energy supply investments and interventions, because most utilities in the borrowing DMCs are state-owned whose focus is on increasing the electrification ratio rather than energy savings. Although DSEE potential may be recognized within the country, there is often no agency with the appropriate skills, authority and mandate to design and put forward large-scale DSEE projects, nor to negotiate large-scale DSEE investments with agencies such as ADB or commercial banks.

2. Lack of awareness and incentive structures for financiers In general terms, financiers feel uncomfortable on the risks due to non-collateral financing, absence of guarantees, lack of expertise in evaluating EE investments, disincentives to undertake DSEE projects due to relatively small loan amounts, and higher transaction costs associated with overcoming barriers for DSEE projects as compared to large-scale energy supply infrastructure.

Based on the foregoing, there is a strong case for ADB to now take a more systematic approach to DSEE - with emphasis squarely on increasing its DSEE investment through strategic, targeted and replicable aggregated projects, backed up by a more permanent DSEE technical capacity to assist both ADB staff and DMC governments. Establishing this systematic approach for DSEE projects is the subject of the proposed R-CDTA. Over and above existing efforts to improve take-up of energy efficiency, this R-CDTA brings a specific focus to ADB's Clean Energy Program in the area of DSEE as compared to supply-side energy efficiency. Through its proposed outputs, it aims to overcome identified barriers in DSEE project development and investment for DMCs, and assist operations teams on take-up of DSEE. Its approach is new because it offers new dedicated DSEE specialist expertise, data sources, training opportunities and improved access to internal and regional DSEE networks. By doing so, it will also create synergy with and reinforce other existing projects that seek to improve the broader take-up of climate technologies in ADB projects.

The proposed R-CDTA will support ADB's stated goal of significantly scaling-up and improving the effectiveness of its DSEE lending and investment in DMCs, and will increase DSEE investment as a proportion of ADB's energy portfolio. The proposed R-CDTA also builds on completed work under RETA 6501 (Technical Assistance for Expanding the Implementation of the Energy Efficiency Initiative in Developing Member Countries), and adds needed capacity to build on its outcomes. Further, it addresses 2011 report findings of the Independent Evaluation Department that there are a number of steps ADB can take to enhance the effectiveness of its energy efficiency interventions.

Impact Reduced GHG emissions and improved economic productivity through increased adoption of and investment in demand-side energy efficiency in DMCs.
Project Outcome
Description of Outcome Target DMCs, through increased institutional capacity, greater access to information and targeted technical assistance, facilitate increased DSEE investment and deployment and are able to integrate energy efficiency targets, policies, and strategies into their national development plans.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Regional and country-specific DSEE programs/ projects developed and implemented

Replicable DSEE initiatives developed and implemented in key opportunity sectors

Regional EE Networks established/ strengthened

Regional EE information system established/ strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Selected DMCs have expressed interest after consultation with ODs, and this level of receptiveness to increased DSEE investment will be considered as one determinant of where to focus R-CDTA resources.
During Project Implementation
Business Opportunities
Consulting Services A total of 66 person-months international and 72 person-months national individual consultant inputs will be required for the R-CDTA.
Responsible ADB Officer Aiming Zhou
Responsible ADB Department SDCC
Responsible ADB Division SDAS
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 08 Nov 2013
Fact Finding -
MRM -
Approval 10 Oct 2013
Last Review Mission -
Last PDS Update 10 Apr 2013

TA 8483-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Oct 2013 - 10 Oct 2013 30 Sep 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,500,000.00 0.00 0.00 0.00 0.00 2,500,000.00 10 Oct 2013 500,476.63

This project data sheet was generated from http://www.adb.org/projects/46241-001/main on 31 August 2015