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Dams and Development E-paper
Extracts from ADB's Energy Policy related to identifying needs and assessing options:Increasing core poverty interventions:'.. will be achieved by designing projects in such a way that the poor account for a major share of beneficiaries by locating suitable projects in poor areas or provinces and by including specific poverty-related components such as rural electrification. Assistance will also be provided to design special lifeline tariffs for the poor so that they can afford the services provided by such projects. (para 76) Policy-level guidance:'Private sector participation: ADB will strongly encourage private sector participation in energy sector operations in its DMCs..' (para 87(i)) 'Subsidies: ADB will encourage its DMCs to withdraw subsidies in production and use of all energy products. However, recognizing the need of the poor and the possible recessionary impact of price increases, transparent and well-directed subsidies will be considered, when appropriate, over the short and medium term'. (para 77(iv)). 'Efficiency improvement: ADB will assist its DMCs in the design and implementation of measures to improve the efficiency of energy supply and use. This will include assistance for reducing technical and nontechnical power losses'. (para 77(viii)). 'Energy conservation: ADB will assist its DMCs in the design and implementation of measures for energy conservation and demand-side management.' (para 77 (ix)). 'ADB will assist its DMCs in introducing policy reforms, both in the conventional and non-conventional energy sectors, aimed at promoting renewable energy projects and making their financing possible with minimal recourse to subsidies'. (para 81(ii)). At project level:Public power generation: ADB will continue to assist its DMCs when power generation capacity additions (including hydropower capacity), which are beyond the private sector capability or interest, are needed. In the design of such projects, care will be taken to minimize adverse environmental and social impacts and to maximize economic efficiency and support for renewable energy development, where feasible. For new hydropower projects, the approach recommended by the World Commission on Dams will be pursued. (para 80 (iv)) 'ADB will actively promote the development of renewable energy resources in DMCs and support the implementation of measures for the rapid uptake of cost-effective renewable energy technologies. ADB will assist its DMCs in formulating viable renewable energy projects for providing electricity in remote areas and improving the quality of life of the rural poor. ADB will also assist in implementing such projects, preferably with private sector involvement to ensure their sustainable long-term operation. ADB will exploit the potential for leveraging resources from GHG abatement mechanisms'. (para 81 (i)) At regional level:'ADB will assist its DMCs in identifying and implementing energy projects (including hydropower and gas-based power generation projects mainly for export) that promote regional trade with economic gains for all participating countries'…(para 82).
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