Regional: Quantum Leap in Wind Power Development in Asia and the Pacific

Sovereign Project | 44489-012

Summary

Participating DMC governments are expected to achieve their targets for installed wind power capacity through the formulation of road maps, improved knowledge and capacity, better quantification of wind resource potential, and the identification of viable wind projects. The TA will (i) draw up wind energy development road maps for better planning and facilitating public private partnership, (ii) assess wind resources in four countries (Mongolia, the Philippines, Sri Lanka, and Viet Nam) to reduce start-up time and manage resource risk, (iii) manage regional knowledge and build capacity to facilitate the transfer of knowledge and regional cooperation, (iv) prepare pre-feasibility studies, and (v) develop business and financing models to make wind projects in participating countries more bankable.

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Project Name Quantum Leap in Wind Power Development in Asia and the Pacific
Project Number 44489-012
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7990-REG: Quantum Leap in Wind Power Development in Asia and the Pacific
Clean Energy Facility - Asian Clean Energy Fund US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Energy - Renewable energy generation - wind

Gender Equity and Mainstreaming No gender elements
Description Participating DMC governments are expected to achieve their targets for installed wind power capacity through the formulation of road maps, improved knowledge and capacity, better quantification of wind resource potential, and the identification of viable wind projects. The TA will (i) draw up wind energy development road maps for better planning and facilitating public private partnership, (ii) assess wind resources in four countries (Mongolia, the Philippines, Sri Lanka, and Viet Nam) to reduce start-up time and manage resource risk, (iii) manage regional knowledge and build capacity to facilitate the transfer of knowledge and regional cooperation, (iv) prepare pre-feasibility studies, and (v) develop business and financing models to make wind projects in participating countries more bankable. TA activities will be coordinated with the ongoing Asia Solar Energy Initiative, the Clean Energy and Network Efficiency Improvement Project for Sri Lanka, the proposed Transfer and Diffusion of Low-Carbon Technologies cluster TA, and other related ADB projects.
Project Rationale and Linkage to Country/Regional Strategy

Global recognition of the climate crisis, concerns over energy security, and improvements in technology and costs are making the use of clean and renewable energy increasingly important. Wind energy is expanding worldwide and expected to meet up to 10% of global electricity demand by 2020. Wind energy has emerged as a mature, efficient, and reliable global business. The cost of energy generated by wind power has fallen dramatically, bringing it close to conventional energy costs. Wind energy potential in Asia is estimated to be 2 million megawatts (MW), and the region is the fastest growing wind power market in the world. However, most developing member countries (DMCs) of the Asian Development Bank (ADB) are not yet part of the wind power boom.

The proposed technical assistance (TA) for supporting Quantum Leap in Wind Power Development in Asia and Pacific is in line with ADB's Strategy 2020 and energy policy 2009. It supports key country partnership strategies by promoting environmentally sustainable green growth, responding to climate change by helping DMCs to follow low-carbon growth paths, increasing renewable energy development, raising awareness and promoting policy and regulatory incentives, and sharing knowledge across regions.

The proposed activities of the TA are critical to overcome technical, policy, market and financing barriers to scale up wind energy use in Asia that have been identified (IEA 2009, World Bank 2009). There is a need to demonstrate that scaled up wind power in Asia is doable, in a shorter time-frame (e.g. by 2015 instead of 2020), and can be beneficial financially and environmentally. The TA will contribute to an understanding by all stakeholders of the potential for wind energy in the region.

Impact Increased knowledge and use of wind energy, improving energy security in participating DMCs and Asia and the Pacific
Project Outcome
Description of Outcome Improved capacity in participating DMC governments to achieve wind power targets through road maps and faster wind power development facilitated through accurate wind resource data, feasibility studies, and business models
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Wind resource assessments conducted

Knowledge management and capacity building workshops conducted

Pre-feasibility and special studies prepared

Business and financial models developed

Wind energy road map for each country developed

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 Two international consultation workshops were conducted in 2010 and 2011 to present the development of wind power in Asia and discuss the challenges and lessons from mature markets. Findings from both workshops confirmed the need for the proposed TA. The governments of four selected DMCs Mongolia, the Philippines, Sri Lanka, and Viet Nam have been consulted. In 2010, the Philippine Department of Energy formally requested ADB's support for developing a wind power program, and further consultations ensued on possible activities under the proposed TA. Similarly, consultations with the governments of Sri Lanka and Mongolia yielded positive results, as both have indicated their willingness to participate in the TA. Preparing the TA included preparing draft wind power road maps for Mongolia, the Philippines, and Sri Lanka.
During Project Implementation Several in-country, regional, and international workshops, including in the Pacific, to share lessons and examples of successful wind energy strategies and associated policies are planned. The results will be shared online and at the future Asia Clean Energy Forum and other international events where private companies and government agencies in Asia and from around the world will be invited to disseminate best practices.
Business Opportunities
Consulting Services

The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (April 2010, as amended from time to time).

International Consultant - Renewable and Wind Energy Specialist, 24 person-months

National Consultant Philippines - Technical Assistant Coordinator and Research Associate, 24 person-months

International Consultant - International Wind Resource Determination Specialist, 20 person-months

National Consultant other selected countries - Technical Coordinator and Expert, 30 person-months

Responsible ADB Officer Bo An
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 28 Feb 2011
Fact Finding 04 Oct 2010 to 11 Oct 2010
MRM -
Approval 09 Dec 2011
Last Review Mission -
Last PDS Update 07 Nov 2011

TA 7990-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2011 - 09 Dec 2011 31 Dec 2014 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 09 Dec 2011 777,843.43

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The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Activities

Regional QLW

QLW at the ADB-IEA Energy Training and How2Guide Workshops for Smart Grids (22 – 25 October, 2012)

QLW supported the Training and How2Guide workshops for Smart Grids in Distribution Networks and Wind Energy that was organized by ADB and the International Energy Agency (IEA) and held at ADB Headquarters on 22 - 25 October, 2012.

On the final day of the training program, QLW project officer Jitendra Shah presented the Asian Regional Outlook for Wind Energy. He opened with an introduction to the TA's objectives and its five (5) components, and followed this with a discussion of wind energy status in five case study areas (Sri lanka, Mongolia, Thailand, Philippines, and Pakistan). He also described several wind energy updates from 12 countries; namely, Mongolia, Philippines, Sri Lanka, Vietnam, Bangladesh, Thailand, Pakistan, Timor-Leste, Fiji, Afghanistan, India, and China and identified key "take-away lessons" from experiences in these countries.

View and download the presentation in full.

Brownbag: Wind energy development lessons from countries with successful RE policies? (12 October, 2012)

Why does wind energy development policy fail? What are lessons to learn from countries with successful wind energy policies?

Wind energy policy has a thirty year history starting from early 1980s in US and EU; early 90s in India and China; early this century in Brazil, and South-east Asia. The QLW-sponsored brownbag on October 12, 2012 at ADB Headquarters elaborated on the evolution of various types of policies—Feed-in Tariff, Quota-based policies and other market-based policies. None of the countries covered got the policy right in the first iteration. Based on experiences in different countries, there is no recipe for a perfect policy or a perfect combination of policies. This presentation by Dr. Pramod Jain, President, Innovative Wind Energy, Inc. and ADB's international consultant on Wind Energy QLW TA addressed the lessons learned from 30 years of wind-related policies around the World.

View the presentation.

Center for Wind Energy Technology (CWET) Ninth International Training Course(5 – 27 September, 2012)

Six representatives from three QLW focal countries (Sri Lanka, Mongolia, and the Philippines) participated in the 3-week intensive training on wind turbine technology and applications held in Chennai, India. All of the participants are active practitioners in the nascent wind industry in their respective countries, and were invited and selected by the QLW team in consultation with local counterparts. One of the participants, Mr. Altain Erdenebaatar, Chief Engineer of the National Renewable Energy Center in Mongolia, described the CWET program as the best detailed technical training delivered by experienced practitioners.

QLW in Mongolia

First Wind Turbine in Salkhit Wind Farm
First Wind Turbine in Salkhit Wind Farm

QLW Implementation Mission and Renewable Energy International Workshop in Ulaanbaatar, Mongolia – 1 – 5 October, 2012

Representatives of the QLW Project Team visited Ulaanbaatar, Mongolia, from 1-5 October, 2012 to carry out the following activities (i) technical assistance and training for the Energy Regulatory Commission (ERC); (ii) guidance on vision and the role of wind for the Ministry of Energy; (iii) carry discussionson how to collaborate with the Mongolian Wind Energy Association (MWEA);(iv) resource assessment with the National Renewable Energy Center (NREC); (v) National Wind Energy Stakeholder dialogue on how to develop the wind energy roadmap;(vi) sharing of QLW Mongolia consultant Mr. Erdenebaatar's experiences from the Center for Wind Energy & Technology (CWET) training in India; and, (vii) Site Visit to Salkhit wind farm.

Read Mission overview.
View and download Training Program presentations.
View photos from Salkhit Wind Farm.

QLW in the Philippines

Philippine Wind Energy Stakeholders Meeting – 27 November, 2012

Participants of the Philippine wind energy stakeholders meeting visit the ADB solar rooftop.
Participants of the Philippine wind energy stakeholders meeting visit the ADB solar rooftop.

Quantum Leap in Wind hosted the latest Philippine Wind Energy Stakeholders Meeting on November 27 2012 at ADB Headquarters.

The meeting was well-attended, with more than 20 public and private sector participants actively contributing to the discussions which covered the process of updating the Philippine Wind Energy Roadmap, updates on the Feed-in-Tariff eligibility guidelines, and other wind energy concerns.

Mr. Rommel Reyes of the National Grid Corporation of the Philippines also shared his experiences from the September 2012 technical training on wind power development at the Centre for Wind Energy Technology (CWET) in Chennai, India.

The main takeaways from the meeting were: (i) there is a need to correct the public impression that there is a 1:1 ancillary requirement for every unit of installed renewable energy capacity; (ii) a steering committee has to be created for the wind roadmap updating; and, (iii) the feed-in-tariff eligibility guidelines have been endorsed for approval to the Department of Energy (DOE) Secretary.

View presentations and highlights.

Mission to the Philippine Provinces of Ilocos Norte and Cagayan as Potential Areas for Wind Resource Assessment Campaign (18 October, 2012)

Bangui Wind Farm, Ilocos Norte
Bangui Wind Farm, Ilocos Norte

The mission to the provinces of Ilocos Norte and Cagayan in northern Luzon was undertaken to assess the suitability of these areas as potential wind resource assessment campaign sites under the QLW TA. Bangui in Ilocos Norte is the site of the largest wind farm installation in the Philippines, the 33 MW Bangui Wind Farm operated by Northwind Power Corporation. The coastal area of Cagayan province, on the other hand, hosts ten pre-development wind resource service contracts awarded by the Philippine Department of Energy (DOE) because of the good wind power potential based on the 2001 NREL wind resource map.

The mission was organized in coordination with the Wind Energy Developer Association of the Philippines (WEDAP), Northwind Power Development Corporation, and Alternergy Philippine Holdings Corporation. Alternergy is a wind developer that, based on DOE records, has been awarded three wind service contracts in Ilocos Norte and Cagayan. The mission included visits to sites where Alternergy had installed a met-mast (Sta. Prexedes, Cagayan & Pagudpud wind power project) and are still undertaking wind resource assessment (Appari Wind project in Ballesteros, Cagayan).

Training for the Wind Energy Development Association of the Philippines (WEDAP) (17 October, 2012)

QLW's international consultant, Dr. Pramod Jain, conducted a one-day training on October 17, 2012 for members of the Wind Energy Development Association of the Philippines (WEDAP). Participants of the training had the opportunity to discuss Bankable Wind Resource Assessment and increase their understanding of the role of wind resource assessment (WRA), the three levels of WRA, factors that influence wind energy production, losses in energy production, and the uncertainty associated with WRA. The importance of securing and presenting high-quality wind resource assessment data to be able to secure debt financing from lending institutions was stressed during the training.

The training also covered the input parameters, results and an excel demonstration of a financial analysis model for wind projects.

View presentations.

Third General Wind Stakeholders meeting – 11 October, 2012

QLW sponsored the third general Philippine Wind Stakeholders meeting on October 11, 2012 at ADB Headquarters. The meeting was attended by representatives of the DOE and other concerned government agencies, private wind energy project developers, and academic institutions, among others. Items on the agenda for this meeting were: (i) Use of Wind Data; (ii) Site selection for the reference met-masts; (iii) The institution for managing long-term wind data & roles of the different stakeholders; (iv) various implementation Issues and Concerns; and, (v) finalization of the next meeting's agenda.

View presentations and highlights.

Second General Wind Stakeholders meeting – 6 September, 2012

The stakeholders' meeting was organized by the QLW team and DOE, and was held at DOE Headquarters in Taguig City. Discussions during the meeting covered configuration (height and type) of the project's reference met-masts based the set of criteria and cost estimates developed by the QLW team; procedures and criteria to identify the locations of the met-masts; options for institutions that will handle data management, particularly after closing of the QLW technical assistance; and data sharing by stakeholders for the updating of the Philippine wind resource map.

See highlights of the meeting.

Training Seminar/Workshop on Wind Energy Project Development – 5 September, 2012

The TA supported the Training Seminar on Wind Energy Project Development which was held at the UP National Engineering Center, Diliman, Quezon City, Philippines.

Topics included an overview of the National Renewable Energy Program & RE Law of the Philippines by Atty. Pete Maniego of the Philippines National Renewable Energy Board; Case Study of the Puerto Galera 16 Wind Project by Felix Ople; "Wind Resource Assessment Theory vs. Practice and lessons learned" by Felix Ople; Wind Turbine Generator Technology by Carlos Carrion from GAMESA; Wind-Diesel Hybrid Power Systems by Felix Ople; and, Wind project siting, interconnection, transmission and connectivity by Othello Baronia of the National Grid Corporation of the Philippines (NGCP). Mr. Carlo Borlaza, QLW national consultant for the Philippines, represented the project during the event.

Read an overview of the event.