Regional: Smart Grid Capacity Development

Sovereign Project | 45124-001

Summary

In facing the challenges of energy security and climate change, some developing member countries (DMCs) have taken the lead in promoting renewable energy. At the same time, expectations are raised for smart grid technology out of concern that unstable output of renewable energy will adversely affect the power systems which the power from renewable energy will be fed into. In this context, during the second meeting of the Asia Solar Energy Forum in Tokyo, Japan, in December 2010, several South Asia DMCs asked the Asian Development Bank (ADB) to provide capacity development technical assistance (TA) for developing the smart grid. The concept paper was approved on 20 May 2011 and further discussed during the Workshop for Solar Energy and Smart Grid in Jodhpur, India, in September 2011.

Latest Project Documents

Title Document Date
Smart Grid Capacity Development Dec 2011

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Project Name Smart Grid Capacity Development
Project Number 45124-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7950-REG: Smart Grid Capacity Development
Japan Fund for Poverty Reduction US$ 1.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Energy - Energy efficiency and conservation - Renewable energy generation - solar
Gender Equity and Mainstreaming No gender elements
Description In facing the challenges of energy security and climate change, some developing member countries (DMCs) have taken the lead in promoting renewable energy. At the same time, expectations are raised for smart grid technology out of concern that unstable output of renewable energy will adversely affect the power systems which the power from renewable energy will be fed into. In this context, during the second meeting of the Asia Solar Energy Forum in Tokyo, Japan, in December 2010, several South Asia DMCs asked the Asian Development Bank (ADB) to provide capacity development technical assistance (TA) for developing the smart grid. The concept paper was approved on 20 May 2011 and further discussed during the Workshop for Solar Energy and Smart Grid in Jodhpur, India, in September 2011.
Project Rationale and Linkage to Country/Regional Strategy

Promoting the availability and use of clean energy is one of ADB's highest priorities. In 2010, ADB funded nearly $1.76 billion worth of projects with clean energy components, exceeding its $1 billion target for the third year in a row. From 2013, ADB will raise the target for clean energy to $2 billion a year. The Asia and Pacific region, where demand for energy is projected to almost double by 2030, could substantially increase the use of clean power from sustainable solar energy and other renewable sources within the next 3 years. For example, the Government of India launched the Jawaharlal Nehru National Solar Mission in 2010 to (i) create an enabling policy framework for deployment of 20,000 megawatts (MW) of solar power by 2022; and (ii) ramp up the capacity of grid-connected solar power generation to 1,000 MW within 3 years, with an additional 3,000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff.

Several South Asian DMCs requested TA for applying smart grid technology to their power systems. The smart grid is expected to increase the connectivity, automation, and coordination among suppliers, consumers, and networks that perform either wide-area bulk transmission or local distribution tasks. With the development of a smart grid, the concept of a centralized network shifts toward decentralization of the electricity system, as businesses and homes begin generating more wind and solar electricity, enabling them to sell surplus energy back to their utilities. The modernization of networks is necessary for energy efficiency, real-time management of power flows, and to provide the two-way metering needed to compensate local producers of power. Although transmission networks are already controlled on a real-time basis, most are unable to handle challenges such as those posed by the intermittent nature of alternative electricity generation because of its susceptibleness to the weather.

Impact Smart grid development for renewable energy development and energy efficiency enhancement to ensure environmentally sound energy supply in South Asia DMCs.
Project Outcome
Description of Outcome Improved greater institutional capacity of South Asian DMCs for smart grid development
Progress Toward Outcome Feasibility studies on smart grid development, and knowledge dissemination are currently being undertaken.
Implementation Progress
Description of Project Outputs

1. Feasibility studies of the pilot projects for smart grid development conducted.

2. Knowledge management programs formulated.

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

A consulting firm, to conduct a feasibility study on smart grid development for transmission, distribution, and mini-grid systems, has been recruited and services has commenced in July 2012.

The following activities were undertaken: (i) Technical Training Workshop on Solar Energy held in Male, Maldives in April 2012, aimed to develop capacity in Maldivian utilities regarding integration of solar power in diesel powered island grids; and (ii) Training Program on Green Innovation held at the ADB Headquarters, Manila, Philippines in July 2012, which was designed to conduct series of round table meetings by the public and private sector agencies on specific topis in their respective South Asian countries.

Additional studies on smart grids in transmission and distribution have been identified and would be carried out.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with stakeholders - governments and private sector.
During Project Implementation Continuous consultation with stakeholders to conduct feasibility studies of pilot projects for smart grid development, and knowledge dissemination to achieve the desired outputs.
Business Opportunities
Consulting Services

ADB will hire a consulting firm to conduct a feasibility study on smart grid development for transmission, distribution, and mini-grid systems. The consulting work will comprise about 15 person-months of international consulting and 22 person-months of national consulting to provide (i) technical support for identification of the necessary smart grid components for transmission (e.g., a renewable energy operation center), for distribution (e.g., HVDS and smart meter), and for the mini-grid (e.g., an integrated control system for a combination of photovoltaic and conventional thermal power; (ii) capacity development for implementing agencies to formulate technical specifications for smart grid components; and (iii) monitoring of and reporting on TA activities and output. The national consultants will work with the international consultants to provide information on local power systems.

ADB will also hire an individual international consultant as a PPP specialist for 5 person-months and two national consultants as PPP coordinators for 4 person-months each, who will (i) coordinate domestic and foreign private sector and government agencies to assist smart grid development; (ii) coordinate the TA with the partners, e.g., ISGAN and GSEP; and (ii) execute knowledge management programs such as organizing international workshops and supporting publication of the reports of the feasibility study on the pilot projects of the TA.

Two individual international consultants will be hired for 3 person-months each to conduct financial analyses and environmental and social safeguard assessments for pilot projects.

The selection of consultants will be conducted in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time) and disbursement under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). The consulting firm will be chosen using the quality- and cost-based selection method at the standard quality cost ratio of 80:20. All equipment procured under the TA will be turned over to the implementing agencies after TA completion. Advance contracting will be used to expedite the mobilization of the consultants.

Responsible ADB Officer Len V. George
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 20 May 2011
Fact Finding -
MRM -
Approval 07 Dec 2011
Last Review Mission -
Last PDS Update 27 Mar 2015

TA 7950-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2011 - 07 Dec 2011 31 Dec 2014 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,400,000.00 0.00 0.00 0.00 0.00 1,400,000.00 07 Dec 2011 507,166.86
Title Document Type Document Date
Smart Grid Capacity Development Technical Assistance Reports Dec 2011

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