Regional: EFFECTIVE DEPLOYMENT OF DISTRIBUTED SMALL WIND POWER SYSTEMS IN ASIAN RURAL AREAS

Sovereign Project | 43458-012 Status: Approved

Summary

The RDTA supports multiple development purposes, including (i) supplying emission-free electricity to poor communities from indigenous renewable energy resources at zero fuel costs; (ii) reducing costs of wind power through transferring appropriate technologies and optimizing manufacturing processes; (iii) innovating financing mechanisms and mobilizing carbon credits to scale up effective deployment of distributed small wind power systems; (iv) encouraging PPP to stimulate investment and research and development activities for clean and renewable energy targeted directly for serving poor communities; (v) mitigating climate change and global warming by displacing combustion of traditional solid biomass and fossil fuels and reducing greenhouse gas emissions; (vi) improving capacities at the national and village levels for planning, implementing, and maintaining decentralized systems for power generation and distribution.

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Project Name EFFECTIVE DEPLOYMENT OF DISTRIBUTED SMALL WIND POWER SYSTEMS IN ASIAN RURAL AREAS
Project Number 43458-012
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7485-REG: EFFECTIVE DEPLOYMENT OF DISTRIBUTED SMALL WIND POWER SYSTEMS IN ASIAN RURAL AREAS
Technical Assistance Special Fund US$ 3.87 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Energy efficiency and conservation - Renewable energy generation - wind

Gender Equity and Mainstreaming
Description The RDTA supports multiple development purposes, including (i) supplying emission-free electricity to poor communities from indigenous renewable energy resources at zero fuel costs; (ii) reducing costs of wind power through transferring appropriate technologies and optimizing manufacturing processes; (iii) innovating financing mechanisms and mobilizing carbon credits to scale up effective deployment of distributed small wind power systems; (iv) encouraging PPP to stimulate investment and research and development activities for clean and renewable energy targeted directly for serving poor communities; (v) mitigating climate change and global warming by displacing combustion of traditional solid biomass and fossil fuels and reducing greenhouse gas emissions; (vi) improving capacities at the national and village levels for planning, implementing, and maintaining decentralized systems for power generation and distribution.
Project Rationale and Linkage to Country/Regional Strategy The overarching goal of Asian Development Bank (ADB) is to eradicate poverty in the Asia Pacific Region. In its 2009 Energy Policy, ADB emphasizes three pillars to achieve inclusive and sustainable development, including (i) promoting energy efficiency and renewable energy; (ii) maximizing access to energy for all; and (iii) promoting energy sector reform, capacity building, and governance. ADB has also committed to reinforce its efforts in facilitating transfer of low-carbon technologies to its developing member countries (DMCs) and to double its financial support to clean energy projects from its 2008 level to $2 billion per year by 2013 to enhance regional energy diversity and security. The RDTA helps implement ADB's energy policy, create opportunities for ADB's public and non-sovereign lending operations, build local capacities, and strengthen regional cooperation on clean energy technology development and deployment.
Impact Improved economic, environmental, and health conditions of poor rural communities in remote windy areas
Project Outcome
Description of Outcome Enhanced access to clean, reliable, and affordable electricity in poor windy villages currently without electricity by effectively deploying small wind power systems
Progress Toward Outcome ADB handed over its pilot project on wind-solar hybrid energy system to Alternative Energy Promotion Centre, Nepal in June 2014. It adopted a country-by-country sequential implementation approach. Activities to implement pilot projects in Bangladesh, Maldives, Pakistan, and Sri Lanka are ongoing. Procurement and supply of various items have commenced. Institutional support in renewable energy policy development and capacity building arebeing provided in Mongolia and Tajikistan
Implementation Progress
Description of Project Outputs

1. Needs assessment for typical windy poor rural communities currently lacking adequate access to electricity

2. Identification and selection of priority locations

3. Analysis of electricity demand patterns and load management requirements

4. Assessment of wind, solar, and biogas resources and load distribution in selected poor communities

5. Technical evaluation of and cost reduction exploration

6. Comparison of different approaches for energy storage and balancing

7. Examination of suitable ways to integrate wind, solar, and biogas resources

8. Environmental impact assessment on uses of conventional batteries

9. Investigation of manufacturing, delivery, and servicing procedures

10. Design of innovative financing mechanisms

11. Assistance in building public private partnerships and build-own-operate-transfer modality

12. Policy recommendations

13. Construction of pilot demonstration projects

14. Dissemination and capacity building activities

Status of Implementation Progress (Outputs, Activities, and Issues)

Nepal Subproject: The pilot subproject in Nepal was completed in May 2014. Wind turbines have been installed and the agreement on transfer of ownership to the implementing agency was signed in June 2014

Maldives: The first subproject, Rakheedoo Solar-Diesel Hybrid Power Project, is in the advanced stage of implementation. Contract was awarded in April 2015. Delivery of all equipment is expected to be completed in October 2015. The award of contract for the second subproject, Dhidhoo Hybrid Power, has been approved on 4 Sep 2015. Contract signing is expected in October.

Sri Lanka: The award of contracts for 3 packages for the first subproject, Eluvaithivu Hybrid Power Project, were approved on 18 June 2015 to three suppliers. Contracts have been signed and delivery of equipment expected in November/December 2015. The second pilot subproject in Nainathivu Island, is in the preliminary stage of processing. The technical designs prepared by the technical consultants will be discussed in the next review mission in Sep 2015.

Bangladesh: The first pilot subproject for Power Development Board High School in Siddhirganj, is moving ahead in the procurement of equipment including training on installation. The contract has been awarded in August 2015 and contract signing has been concluded.

Pakistan: The technical and price proposals of the pilot subproject in Pakistan is currently being evaluated by PRM since they have taken full responsibility for recruitment of consultants, procurement of equipment up to substantiation and liquidation of disbursements made.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The International Energy Agency has been consulted in June 2009 during its world wind roadmap workshop. Several rural communities have expressed their willingness to be the candidates for hosting the pilot projects. Several private sector companies have shown interest in cooperating with ADB to upgrade small wind power technologies.
During Project Implementation Regular communication and consultation are conducted with the governments and TA implementing agencies in the DMCs covered by the TA via fax and emails, as well as during review missions. Consultation meetings are conducted with communities where hybrid renewable energy pilot projects are proposed or being implemented (in particular, Bangladesh, Maldives, Nepal, Pakistan and Sri Lanka) by ADB staff and TA consultants. Workshops are arranged to discussed with stakeholders relating to pilot project design and implementation, mini-grid technologies to be implemented and lessons learned.
Business Opportunities
Consulting Services The services of of four individual consultants (3 international - Renewable Energy Technologies Specialist, Renewable Energy Operational Specialist, Energy Economic and Financial Specialist - for a total of 60 person-months; and 1 national - Procurement and Project Management Specialist - for 15 person-months) are ongoing. A national energy project coordinator (28 person months) has been engaged and currently services ongoing.
Procurement Any equipment and materials to be financed by the TA will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). On the completion of the TA project, the equipment will become the property of the government and participating local institutions and/or communities.
Responsible ADB Officer Liping Zheng
Responsible ADB Department South Asia Department
Responsible ADB Division Office of the Director General, SARD
Executing Agencies
Asian Development Bank
6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 02 Oct 2009
Fact Finding 19 Mar 2009 to 05 Apr 2009
MRM -
Approval 17 Dec 2009
Last Review Mission -
PDS Creation Date 27 Oct 2009
Last PDS Update 16 Sep 2015

TA 7485-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2009 - 17 Dec 2009 30 Jun 2012 30 Sep 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
3,870,000.00 0.00 0.00 0.00 0.00 0.00 3,870,000.00 17 Dec 2009 1,906,724.51

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