Expanding the Use of Clean Energy

Steam from deep within the earth is used to generate electricity at the Lahendong geothermal power plant in Manado, Indonesia. Geothermal power plants have a miniscule carbon footprint.

Asia and the Pacific’s carbon dioxide emissions are set to double by 2035, making up more than half the world’s total output. Fossil fuels will continue to dominate the primary energy mix in the region, increasing their share from 82.4% in 2010 to 83.2% by 2035. The reliance on fossil fuels presents major pricing, energy security, and environmental challenges. A massive shift to clean and efficient energy will be needed for the region to move to a low-carbon path. Energy efficiency measures, advanced generation technologies, and greater use of renewable power could almost halve the projected annual rise in energy demand.

ADB is identifying and promoting cost-effective energy efficiency improvements, expanding the use of renewable energy, facilitating the introduction of new clean energy technologies, and giving incentives for the public and private sectors to invest in these areas.

Reducing emissions

On the demand-side, improving energy efficiency is the most cost-effective way to reduce GHG emissions, freeing up economic resources through lower energy costs. ADB is promoting opportunities to improve efficiency across the industrial, commercial, and municipal sectors.

Expanding renewable energy

On the supply side, ADB is emphasizing the expansion of renewable energy in the power sector. Access to energy, with a focus on helping the poor and protecting the environment, is also a priority for economic growth.

Featured Projects
Dynagreen Waste-to-Energy Project China, People’s Republic ADB is extending $200 million in loans to to help small and medium-sized cities in the People's Republic of China (PRC) turn their solid waste into a sustainable source of renewable energy. Developing waste-to-energy plants for smaller cities will address waste management challenges, and generate a valuable source of renewable energy as well. The ADB loan will help build at least nine plants capable of converting up to 6,300 tons of municipal solid waste daily into electricity. The plants are expected to generate around 610 gigawatt-hours of electricity a year by 2018, using clean technologies. The project was identified and developed by ADB’s public sector operations and financed by private sector operations under its new Public-Private Partnership initiative.
Green Power Development Project Bhutan The project is the first certified cross-border clean development mechanism project in the world. Via a public-private partnership, the 126-megawatt Dagachhu hydropower facility was constructed to deliver carbon-free clean energy to India, replacing electricity produced by fossil fuel-dependent generators. Government royalties from the project will subsidize the development and operation of Bhutan’s rural electrification network, bringing power to about 9,000 households in remote communities where mountainous terrain and small populations make the construction and maintenance of grids too costly. Royalties will also finance solar power systems to electrify rural schools, health clinics, monasteries, and community centers.
Tanahu Hydropower Project Nepal ADB is lending $150 million towards a $500 million project that will build a 140-megawatt hydropower plant in Nepal. The plant will be located around 150 kilometers west of Kathmandu on the Seti River in Tanahu district. To generate and ensure a steady supply of electricity year round, even during the dry winter months of November through April, the plant will be fed from a 7.26 square kilometer reservoir. This makes it Nepal's first major hydropower plant with water storage capacity and a sediment flushing system. The project will also provide at least 17,636 homes in the area of the hydropower plant with direct connections to the national power grid.
Power System Expansion and Efficiency Improvement Investment Program Bangladesh ADB is providing a $700 million loan to dramatically boost Bangladesh’s power supply system, which will reduce outages and shortages. 450,000 households will receive new power connections through the financing of an expansion and upgrade of generation, transmission and distribution facilities. Carbon emissions will also be reduced by almost 2.5 million tons per year. The first $185-million tranche loan will be used to convert a gas-fired power plant in Khulna, the third largest city in the country, into a more efficient, cleaner-burning combined cycle plant. Power system and financial management training will be given to staff in sector institutions, and a pilot project with around 200 solar energy-driven irrigation pumps will be established, benefiting around 4,000 poor farming families.

More Projects
Sustainable Power Sector Development Program Bangladesh ADB expects the program to help the government reform the power sector by financially stabilizing power sector companies and improving governance. The program will expand the capacity of power sector companies to generate clean-fuel power, enhance the reliability and efficiency of transmission networks, and improve the quality of the power supply in Dhaka City and surrounding areas (the major power market).
Green Power Development Project Bhutan The project will promote low-carbon energy sources and foster economic cooperation in promoting cross-border power trade in South Asia. As an outcome, the power sector in Bhutan will improve power distribution and will develop sustainable clean power to expand their exports of electricity.
Second Power Transmission and Distribution Project Cambodia The provision of reliable electricity supply would allow existing diesel generators to be decommissioned, reducing GHG and other air-polluting emissions. The project will provide an adequate and consistent supply of power to industry and commercial consumers, enabling the sustainable development of these sectors and promoting the socioeconomic development of the southern region.
Development of Biomass Power Generation in Rural Areas China, People's Republic of The study assesses the barriers to, and the lessons learned during, the implementation of pilot biomass power plants in PRC; addresses key barriers to the sustainable development of biomass power generation in PRC; prepares a biomass power generation strategy for the province of Heilongjiang, to optimize biomass power utilization; and includes capacity-building and dissemination activities.
Energy Efficiency Multi-Project Financing Program China, People's Republic of The program provides partial credit guarantees that will enable commercial banks to offer energy users access to the necessary funds to retrofit existing buildings with energy-saving improvements and to install energy-efficient products in their buildings. The changes typically lead to energy savings of 20–40%. This potential for energy efficiency in retrofitted and new buildings, which are untapped areas of energy efficiency, could set standards for competitors to follow.
Gansu Rural Clean Energy Development Project China, People's Republic of The study maps clean energy resources and a renewable energy development plan (2008–2012), for Gansu; identifies and provides pre-feasibility studies prioritizing clean energy investment projects for implementation; identifies, prepares, and implements pilot biomass energy projects; prepares capacity assessment and strengthening of provincial and local agencies to plan and manage clean energy; and organizes a publicity campaign to promote awareness of clean energy use and energy conservation in rural areas.
Guangdong Energy Efficiency and Environment Improvement Program China, People's Republic of The investment program, launched in 2008, finances the construction of an efficiency power plant in Guangdong province, equivalent to 107 megawatts, considering only retrofits of proven energy efficiency technologies. The impact of the program will be improved energy security and environmental conditions in Guangdong through improved energy efficiency in the industry and commercial sectors.
Inner Mongolia Autonomous Region Environmental Improvement China, People's Republic of The natural gas pipelines and urban gas distribution networks created under the project will provide cleaner fuel that is 25% more efficient than coal. Overall, the project's gas and central heating supply components are expected to improve energy efficiency by 22%. The improvement will annually conserve energy equivalent to 340,000 tons of standard coal from the central heating supply and 200,000 tons from the gas supply.
Inner Mongolia Wind Power Project China, People's Republic of This project promotes sustainable growth and environmental improvement in the PRC through the construction and operation of 49.5 megawatt wind power generation facilities which will generate an average of 133 gigawatt hours of electricity every year. This will help achieve targets for renewable energy among all power sources, and for wind power generation in particular; mitigating significant GHG emissions and improving the energy security of the country by developing indigenous energy sources.
Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin China, People's Republic of The project will improve quality of life, provide sustainable ecosystem, and enhance biodiversity conservation in Baiyangdian Basin through the development of an innovative integrated ecosystem and water resources management approach. Specifically, it will construct wastewater treatment plants and water supply systems and promote reforestation; implement urban flood management, integrated water management, solid waste management, clean energy development; conserve biodiversity; and provide institutional strengthening.
Integrated Renewable Biomass Energy Development Sector Project China, People's Republic of Approved in 2010, this project will improve the performance of the biogas subsector through the demonstration of an integrated renewable biomass energy system in the poor rural areas of Heilongjiang, Henan, Jiangxi, and Shandong provinces. The project has four components: (i) sustainable development and demonstration of commercial practices of medium and large-scale biogas plants; (ii) effective utilization of biogas sludge in eco-farming; (iii) capacity development for improved sector performance; and (iv) project implementation support. GHG emissions reduced by 1 million tCO2e annually by 201 5; About 70 million cubic meter of biogas produced per year for rural energy use.
Promoting Resource Conservation and Energy Efficiency China, People's Republic of The study promotes energy conservation, energy efficiency improvements, and the efficient use of resources, i.e., raw materials, water, and energy, through the development of a suitable energy conservation evaluation system, which will assist in planning energy reduction programs and monitoring implementation progress, instead of just reporting on these retroactively. Government departments, public institutions (e.g. education, health, transport), enterprises (commercial and industrial) and even nongovernmental organizations will need to report achievement of energy reduction targets.
Tianjin Integrated Gasification Combined Cycle (IGCC) Power Plant China, People's Republic of The project will ultimately improve the environment, reduce GHG emissions, and promote energy efficiency by implementing and operating an IGCC power plant of 250 MW capacity in Harbor Industrial Park in Tanggu district in Tianjin city in PRC. This clean coal technology will use coal to produce synthetic gas that has up to 40% hydrogen fuel, which considerably reduces the GHG emissions. Removal of carbon from the synthetic gas (pre-combustion) and its storage will be a lower cost option in the future when storage technologies are available.
Utilization of Renewable Shallow-Ground Geo-Energy China, People's Republic of The study contributes to the reduction of GHG emissions by promoting shallow-ground geo-energy technologies. Since late 1990s, considerable research and development has been carried out to utilize another form of geothermal energy, one that enables the temperature at depths of 30,200 meters to remain constant during all weather conditions, in the range of 7-13 degrees Celsius depending on the depth.
Renewable Power Sector Development Project Fiji Islands, Republic of the The study covers the following key areas: review and sensitivity analysis of the Fiji Electricity Authority's (FEA's) prioritized least-cost power sector expansion program to meet low-, base-, and high-demand forecasts; review of FEA's engineering feasibility studies of core subprojects; assessment and projection of FEA's financial performance; financial and economic analyses of the investment program, including risk analysis; compliance with ADB's safeguard policies; climate-proofing analysis of the proposed project; and CDM screening of FEA's investment program.
Energy Efficiency Enhancement in the Power Generation Sector India The study addresses several challenges faced by the state utilities planning projects that are potentially CDM eligible, including: that there is an absence of approved methodologies applicable for most of the planned renovation and modernization projects, partly because demonstrating additionality is difficult compared with green field projects; that there are higher transaction costs, if the smaller projects are processed independently; and that the capacities of state utilities need to be further developed.
Assam Power Sector Enhancement Investment Program India The impact of the Investment Program is to promote sustainable provision of electricity in Assam and implement low carbon power sector development. Specifically, the Investment Program strengthens power transmission capacity to deliver reliable and affordable electricity, improves access to electricity in distribution through grid electricity and off-grid renewable and conventional energy-based electricity, enhances energy efficiency and quality of power supply, ensures financial health of the power sector through continued reform, and promotes private sector participation.
Facilitating the Operations of the Energy Conservation Fund "Energy Smart" in Madhya Pradesh India To facilitate the energy efficiency program of Madhya Pradesh, the study will financially support the initial operations of the Energy Conservation Fund (ECF), an accessible and effective funding device for energy efficiency projects. This initiative is expected to encourage commercial banks and financial institutions to overcome barriers to financing energy efficiency projects.
Gujarat Paguthan Wind Energy Financing India To mitigate significant greenhouse gas emissions and to improve the energy security of India by developing indigenous energy sources, ADB is financing two wind power projects, one each in Gujarat and Karnataka. These consist of the Samana Wind Power Project, located in Gujarat, and the Saundatti Wind Power Project, located in Karnataka. Both sites are well connected by roads to a number of mid-sized cities in their respective states.
Integrated Renewable Energy Development Project India To develop the low carbon energy sector by developing renewable energy where government intervention or gap-financing is needed, ADB assists the Ministry of New and Renewable Energy and the state governments in financing a project preparatory study, launched in 2008, to identify and implement three solar energy pilot subprojects that are taking the public-private partnership approach. These include 25 MW solar thermal power plant projects in Rajasthan and other states, and bundled small grid-connected roof-top solar photo-voltaic projects, if possible, with some concessions.
Jammu and Kashmir Clean Power Development India To enhance clean energy and promote private sector participation in Jammu and Kashmir, ADB financed a study in 2007 that supports selected investments in hydropower development and the expansion of associated transmission systems. These would facilitate the sustainability of the energy sector, and promote sector reforms in Jammu and Kashmir with minimum negative environmental and social impacts.
National Power Grid Corporation Transmission Project India The investment program will fund two projects, namely, the improvement of transmission capacity from Uttarakhand, and the construction of transmission systems that will deliver bulk power generated from hydropower stations in the northeastern region to the power-deficit areas of the northern and western regions.
Tata Power Wind Energy Financing Facility India To develop additional renewable energy sources, diversify the country's energy portfolio and mitigate its dependence on conventional fossil fuel-fired thermal capacity, ADB provides financial assistance to The Tata Power Company Limited (TPC) to set up two wind energy projects in Maharashtra. They are expected to reduce GHG gas emissions by approximately 129,000 tons of carbon dioxide (CO2) per year and by approximately 2.6 million tons of CO2 during the minimum project life of 20 years.
Renewable Energy Development and Power Transmission Improvement Sector Project Indonesia The Project is expanding renewable energy use by about 82 MW, displacing energy generated by fossil fuels (about 480 GWh annually) and thereby limiting the emissions of greenhouse gases. These sub-projects will be developed in the outer islands and are part of the country's least cost planning for capacity expansion. This Project is consistent with the country's plan to develop local non-fossil sources of energy and with the ADB's Energy Policy of promoting clean energy development.
Tangguh LNG Project Indonesia To increase the supply of clean energy to importing countries such as the People's Republic of China, which endeavors to reduce the air pollution caused by the overuse of coal and to diversify energy sources while achieving sustainable economic growth, ADB provides assistance to the project to extract natural gas from gas fields in the Berau and Bintuni bay area of Irian, and to liquefy it into LNG for shipping to export markets.
Small and Mini Hydroelectric Development Project Lao People's Democratic Republic The project will provide a reliable and affordable supply of electricity to remote, poor districts by creating a small or mini hydroelectric power plant and associated transmission and distribution facilities. It will contribute to inclusive social development and to a lesser extent to pro-poor growth through productive use of electricity. It will also contribute to environmental sustainability by promoting renewable energy sources.
Community-Based Heating Supply in Rural Remote Areas Mongolia To improve the quality of life during winter in soum centers in Mongolia, the project selects pilot projects for installation of efficient boiler systems, installs heating systems, provides training for community and local government, and upgrades building features for energy efficiency. ADB expects that the project, launched in 2007 and cofinanced through the Japan Fund for Poverty Reduction, will reduce CO2 emissions of at least 40% from current levels.
Energy Conservation and Emissions Reduction from Poor Household Mongolia To decrease coal consumption and CO2 emissions, and increase the savings of people living in the ger area, the project, launched in 2008 and funded by the Japan Fund for Poverty Reduction, provides highly insulated blankets for about 4,000 households in the district in Ulaanbaatar. It also provides training for local blanket manufacturers to improve blanket quality while reducing production costs. The project is expected to reduce fuel emissions from the target ger by 50%, from reduced coal and firewood consumption. The amount of solid waste produced by household will also be reduced by 200 to 600 kg/year.
Renewable Energy Development in Small Towns and Rural Areas Mongolia To promote economic development and the use of low carbon sources, ADB assisted in developing a renewable energy policy which identified options for mainstreaming renewable energy in improving electricity access of poor nomadic families.
Energy Access and Efficiency Improvement Project Nepal The Project, which commenced in 2009, provides increasing access to clean electricity across the country by addressing major infrastructure barriers and investing in the transmission system, generation rehabilitation, distribution system, and efficiency in supply and demand which will increase supply capacity and operational efficiency.
Promoting Energy Efficiency in the Pacific Pacific Islands Commenced in 2008, the study is expected to improve energy security in the participating Pacific island countries and enhance energy efficiency by developing sound models of energy efficiency policy and project implementation that all the island countries can implement. The study will provide direct assistance to develop the required policy, legal, and institutional framework. It will also create a pipeline of energy efficiency assistance projects for ADB, Global Environment Facility, and other sources to fund or cofinance.
Zorlu Enerji Power Project Pakistan Approved in 2010, this private sector project involves the construction, erection, and operation of a 56.4 MW wind power farm in southern Sindh, about 100 km. northeast of Karachi, Pakistan’s commercial and industrial hub. Once completed, the project will be Pakistan’s first privately financed wind power project constructed under the Renewable Energy Policy 2006. The project will supply power to the national grid under a 20-year take-or-pay energy purchase agreement under a tariff approved by the National Electric Power Regulatory Authority, Pakistan’s power sector regulator. The project will reduce greenhouse gas emissions by about 86,024 tons of carbon dioxide (CO2) per year and about 1.72 million tons of CO2 during the 20 years of operation.
Daharki Power Project Pakistan ADB expects the project, launched in 2007, to narrow the gap between the supply of and the demand for electricity by increasing electricity generation capacity by some 171 MW (about 13% of Pakistan's current demand–supply gap). The project also plans to promote higher energy efficiency in Pakistan's electricity generation mix, by commissioning a combined cycle, low-BTU gas fired power plant. Finally, the project will increase public private partnerships for the provision of infrastructure. Overall, the project is developing a 171 MW base-load power plant running on indigenous gas, financed using a guarantee structure that is innovative for Pakistan.
Renewable Energy Development Sector Investment Program Pakistan The program promotes clean energy by developing small- to medium-size hydropower stations and other sources of renewable generation units. The program prepares feasibility studies and other due diligence work on new renewable energy schemes and develops the capacities of staff at federal, provincial, and project levels to promote and maximize clean energy use.
Energy Efficiency Investment Program (formerly Sustainable Energy Efficiency Development Program) Pakistan The program, launched in 2009, will be Pakistan's first tangible step toward a low-carbon growth path. The program is expected to result in major energy savings and cut greenhouse gas emissions by 30% during the 10 years of implementation (2009-2018). It will improve Pakistan's energy security and economic competitiveness by lowering energy intensity and improving energy productivity.
Pasuquin East Wind Farm Development Project Philippines ADB expects the study to enhance the development of low-carbon options, specifically renewable energy. This will happen through the development of a private sector investment of a phased 120 MW wind farm in Ilocos Norte, Philippines. Project implementers will generate detailed technical data, design, and analysis to determine the viability of the commercial operations of wind energy, which may include the generation of carbon credits.
Philippine Energy Efficiency Project Philippines ADB expects the project, launched in 2009, to reduce the cost of power generation, increase energy efficiency, and avoid large amounts of GHG emissions. By doing these things, the project will create carbon credits under the CDM. Specifically, the project will retrofit lighting in selected government buildings; provide 13 million compact fluorescent lamps to consumers; implement energy-efficient public lighting programs, a scheme for energy-efficient buildings, and a communication and social mobilization program; expand testing laboratory capacity and establish a mercury waste management plant for fluorescent lighting; and establish an energy service company.
Sustainable Power Sector Support Project Sri Lanka Approved in 2011, this $120 million project will provide reliable, adequate and affordable power supply for sustainable growth and poverty reduction in Sri Lanka. It has three major components: (i) transmission system strengthening, (ii) expansion of rural electrification and distribution system improvement, and (iii) Energy efficiency and renewable energy. The third component includes rehabilitation and repowering of micro hydros, establishment of appliance testing laboratory, reactive power management and detailed engineering design of 30-MW run-of-river Moragolla hydropower station. The project will avoid CO2-eq emission at the rate of 505,672 tons per year.
Biomass Power Project Thailand The project aims to promote sustainable economic development in Thailand by helping it achieve minimum-share targets for renewable energy in the generation mix. ADB expects the project to mitigate significant amounts of GHG (about 4 million tons of CO2 will be saved during the first 10 years of operation) and improve energy security by developing indigenous energy sources. In addition, the project will improve the air quality by burning agricultural residues, which formerly were left to decay.
Mainstreaming Energy Efficiency Measures in Thai Municipalities Thailand The study, which commenced in 2008, will improve Thailand's energy security and decrease the rate of GHG emissions by promoting energy efficiency initiatives in Thai municipalities. The study will achieve this by strengthening the capacity of the Provincial Electric Authority and municipalities to identify, design, finance, and implement energy efficiency measures and by piloting energy efficiency projects, which include retrofitting municipal buildings and upgrading public street lighting.
Supporting Implementation of the National Energy Efficiency Program Viet Nam The study, which commenced in 2007, is expected to promote energy conservation in the industry sector in Viet Nam, and substantially reduce energy consumption through the establishment of energy-efficient best practices among industries. Specifically, the study is developing and enhancing local capability to manage energy use and to implement profitable energy efficiency and conservation measures in industrial enterprises. ADB expects Viet Nam to achieve a target of 5% reduction in the energy consumption of large industrial enterprises by 2010, and 8% by 2015.
Equity Investment in Asian Clean Energy Private Equity Funds Regional The project is expected to increase the use of clean energy (renewable energy and energy efficiency) in ADB's developing member countries by setting up five clean energy funds that will provide the financing for investment in clean energy projects.
Supporting the Implementation of the Energy Efficiency Initiative in Developing Member Countries Regional The impact of the study is to decrease the rate of climate change by promoting low-carbon options and increasing the use of clean energy. The study, through the Clean Energy Financing Partnership Facility, has allocated $22.3 million for clean energy projects, as of the end of August 2008.