fbpx 48435-002: Promoting Sustainable Energy for All in Asia and the Pacific - Renewable Energy Mini-grids and Distributed Power Generation (Subproject A) | Asian Development Bank

Regional: Promoting Sustainable Energy for All in Asia and the Pacific - Renewable Energy Mini-grids and Distributed Power Generation (Subproject A)

Sovereign (Public) Project | 48435-002 Status: Active

Access to modern energy is essential for the provision of reliable and efficient lighting, heating, cooking and telecommunications services, and enables the delivery of clean water, sanitation, and health care. Yet, across Asia and the Pacific, more than 600 million people are without access to electricity and 1.8 billion people rely on the traditional use of biomass for cooking .ADB started the Energy for All initiative in 2008 to develop new methodologies and approaches for scaling up access to energy and to spearhead a regional partnership to provide access to modern forms of energy. ADB is also a lead organization and hosts the secretariat of the regional hub of the global Sustainable Energy for All (SE4ALL), an initiative launched by the UN Secretary General in 2011.

 
Project Name Promoting Sustainable Energy for All in Asia and the Pacific - Renewable Energy Mini-grids and Distributed Power Generation (Subproject A)
Project Number 48435-002
Country Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8944-REG: Promoting Sustainable Energy for All in Asia and the Pacific - Renewable Energy Mini-grids and Distributed Power Generation (Subproject A)
Clean Technology Fund US$ 3.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Access to modern energy is essential for the provision of reliable and efficient lighting, heating, cooking and telecommunications services, and enables the delivery of clean water, sanitation, and health care. Yet, across Asia and the Pacific, more than 600 million people are without access to electricity and 1.8 billion people rely on the traditional use of biomass for cooking .ADB started the Energy for All initiative in 2008 to develop new methodologies and approaches for scaling up access to energy and to spearhead a regional partnership to provide access to modern forms of energy. ADB is also a lead organization and hosts the secretariat of the regional hub of the global Sustainable Energy for All (SE4ALL), an initiative launched by the UN Secretary General in 2011.

The SE4ALL initiative has three targets: (i) ensure universal access to modern energy services; (ii) double the annual global rate of improvement in energy efficiency; and (iii) double the share of renewable energy in the global energy mix, all by 2030. This subproject contributes to the energy access target and is under cluster regional technical assistance (Cluster TA 0017) Promoting Sustainable Energy for All in Asia and the Pacific approved by the Board on 16 July 2015.

The outcome of the subproject will be the increased growth and private sector participation in the renewable energy mini grids and distributed power generation sector. This subproject will address the fundamental challenge of providing access to energy by utilizing combinations of technologies and private sector business models.

Project Rationale and Linkage to Country/Regional Strategy There is a need to address the fundamental challenge of providing access to energy through combinations of technologies and new business models that deliver clean, reliable, and affordable energy to bottom-of-the-pyramid consumers under-served by conventional electricity grids. Achieving sustainable energy for all targets requires overcoming financing barriers and de-risking investments for energy access and off-grid projects by providing concessional finance to a range of early to mid-stage mini-grid and distributed power generation companies; as well as building south-south regional cooperation, and encouraging regulators, policy-makers and other stakeholders to recognize that a healthy enabling environment for private sector developers will be a critical step to achieving universal energy access. There is increasing interest in encouraging private sector involvement in this area due to the limitations of public funds alone in achieving the required replication and scale up.
Impact SE4ALL targets in Asia and the Pacific achieved
Project Outcome
Description of Outcome Increased growth and private sector participation in the renewable energy mini grids and distributed power generation sector
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Pipeline, due diligence and preparation of transactions for ADB financing

Building capacity of local financial institutions and other investment partners

Promotion and knowledge-sharing of successful projects and business models with private companies, governments, electric utilities, and other stakeholders to encourage improvements in the regulatory and investment environment

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

Description of Project Outputs:

" Pipeline, due diligence and preparation of transactions for ADB financing

" Building capacity of local financial institutions and other investment partners

" Promotion and knowledge-sharing of successful projects and business models with private companies, governments, electric utilities, and other stakeholders to encourage improvements in the regulatory and investment environment

Status of Implementation Progress

The TA aims to support a range of services including (i) preparation of the investment pipeline and identification of potential transactions, (ii) due diligence (technical, commercial, financial and legal), financial modeling and valuations of potential investments, and (iii) assistance with ADB transaction processing. The TA also provides business mentoring of companies receiving funding under the program and undertake assessment studies and evaluation of projects to determine success factors and lessons learned, examines why some private sector business models fail to scale-up, and to identify measures on how they can be improved to attract mainstream commercial financing.

While the TA is focused on India, Indonesia and the Philippines, the results of the studies will be shared with developing member countries (DMCs) and general public as part of the TA's knowledge sharing program through the development and sharing of knowledge products to encourage replication and scale up. Regulatory and policy barriers will be addressed through engagement with relevant organizations in the targeted DMCs. Moreover, the TA will help strengthen the focus on private sector involvement in providing greater access to energy in the off-grid sector. Currently, the TA is supporting the due diligence process of prospective ADB Private Sector Operations Department investment transactions and is conducting capacity building measures in mini-grids and distributed power generation.

Completed/Ongoing Activities

Output 1. Pipeline, due diligence, and preparation of transactions for ADB financing.

" The TA provided private sector investment support to ADB's private sector department (PSOD). It helped identify, develop, and prepare feasibility assessments and financial structuring, and provided technical due diligence for candidate investments in Indonesia and the Philippines.

" A technical design study was conducted for the expansion of the Cobrador mini-grid project in Romblon, Philippines to ensure adequate and continuous electricity service in the island.

" A mini-grid mapping was conducted to determine the market potential for mini-grid development in off-grid areas in the Philippines.

Output 2. Building capacity of local financial institutions and investment partners.

" Consultants provided support to the Energy Division, South East Asia Department in addressing key market failures, de-risking financial investments, and building capacity of local financial markets in the Philippines to encourage energy efficiency and cost-effective island electrification by the private financing sector. This involved (i) market scoping to identify key energy efficiency opportunities in target market segments, common organizational and financial needs, and potential financing structures to best meet the needs; and (ii) preparation of a potential client profile compendium of electricity providers, renewable energy developers, and their financial requirements to reach 100% reliable electrification. Outputs were shared with the Development Bank of the Philippines to encourage financing of sustainable electrification solutions and energy efficiency by local banks. This activity will lead to follow-on capacity building workshops with electric cooperatives and private sector investors including financing institutions to match viable projects with financing and facilitate implementation.(see planned activities)

Output 3. Promotion and knowledge sharing of successful projects and business models with private companies, governments, electric utilities, and other stakeholders to encourage improvements in the regulatory and investment environment.

" A number of workshops and events were organized to increase awareness and encourage investments in distributed renewable energy system and smart grids. Among these are (i) workshop among electric distribution cooperatives in the Philippines on developing and implementing innovative mini-grid and off-grid solutions using renewables and energy storage; (ii) workshop to strengthen the knowledge and capacity of officials from Perusahaan Listrik Negara and other relevant government agencies in Indonesia on innovative island smart grid solution with renewables and energy storage; and (iii) deep-dive workshops and conference sessions on accelerating energy access in the Asia and Pacific region conducted during the Asia Clean Energy Forum 2017 2020.

Planned Activities

" As follow-up activity, a selected number of electric cooperatives will receive technical, project, and business mentoring support to help them identify areas under their franchise that have good investment potential for private sector investors. If suitable investment opportunities are identified, they will be presented to private sector investors, local finance institutions, government agencies responsible for rural electrification, and ADB in an investor forum.

" Preparation of final report on the scoping investment opportunities and intervention on energy efficiency and island electrification in the Philippines. This will provide information on government financial institution lenders' approaches to scale up energy efficiency investments and hybrid mini-grids or other sustainable energy investments for energy access.

" Investment forum to present suitable investment projects for private sector partnership and financing.

" Continued management of multimedia content of E4ALL.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will require 148 person-months of international and 72 person-months of national consulting services in the areas of technology evaluation, project development, investment, finance, etc. Individual consultants will be engaged to be flexible and timely fielded. Some international and national consultants as individual consultants will be engaged in long-term support roles. Some resource persons will also be engaged for the capacity building activities. For legal due diligence, external legal counsel for individual transactions will be engaged through OGC in line with existing PSOD processes and paid for from the TA.
Procurement Engagement of experts will follow ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Partnership with other clean energy and energy access centers of excellence will be promoted. Output-based or lump sum contracts will be considered as appropriate where possible to reduce administrative burden and improve efficiency and economy. Disbursements under the TA will be performed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Responsible ADB Officer Nam, Kee-Yung
Responsible ADB Department Sustainable Development and Climate Change Department
Responsible ADB Division SDSC-ENE
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 14 Aug 2015
Last Review Mission -
Last PDS Update 08 Apr 2021

TA 8944-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Aug 2015 - 14 Aug 2015 31 Dec 2020 31 Dec 2021 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 3,500,000.00 0.00 0.00 0.00 0.00 3,500,000.00 14 Aug 2015 1,215,731.71

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

None currently available.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.


The Access to Information Policy (AIP) 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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Clean Energy Technology Specialist Individual - Consulting Closed 26 Jan 2021 01 Feb 2021
Communications Expert Individual - Consulting Closed 06 May 2020 12 May 2020
Senior Clean Energy / Mini-grid Specialist Individual - Consulting Closed 18 Feb 2020 21 Feb 2020
Sustainable Energy Policy and Institutional Expert Individual - Consulting Closed 22 Nov 2019 28 Nov 2019
Ocean Energy Specialist Individual - Consulting Closed 12 Nov 2019 16 Nov 2019
Philippines Energy Efficiency Market Expert Individual - Consulting Closed 16 Oct 2019 25 Oct 2019
Philippines Energy Efficiency Financing Modality Expert Individual - Consulting Closed 16 Oct 2019 25 Oct 2019
Philippines Island Electrification Financing Modality Expert Individual - Consulting Closed 16 Oct 2019 25 Oct 2019
Philippines Island Electrification Market Expert Individual - Consulting Closed 16 Oct 2019 25 Oct 2019
Senior Investment Specialist Individual - Consulting Closed 11 Oct 2019 14 Oct 2019
Communications Expert Individual - Consulting Closed 09 Mar 2019 15 Mar 2019
Project Administrative Assistant Individual - Consulting Closed 21 Jun 2018 27 Jun 2018
Energy Economist Individual - Consulting Closed 26 May 2018 01 Jun 2018
Communications Expert Individual - Consulting Closed 29 Apr 2018 05 May 2018
Energy Access Specialist (Policy and Institutional Expert) Individual - Consulting Closed 27 Feb 2018 05 Mar 2018
Mini-Grid Specialist Individual - Consulting Closed 06 Feb 2018 12 Feb 2018
Energy Access Specialist Individual - Consulting Closed 19 Jan 2018 25 Jan 2018
Smart Grid Technology Handbook Series – Battery Energy Storage System (ESS) Energy Specialist Individual - Consulting Closed 19 Dec 2017 25 Dec 2017
Smart Grid Technology Handbook Series – Battery Energy Storage System (ESS) Energy Economist Individual - Consulting Closed 19 Dec 2017 25 Dec 2017
Senior Energy Access Expert Individual - Consulting Closed 08 Dec 2017 14 Dec 2017
Mini-Grid Specialist Individual - Consulting Closed 10 Aug 2017 16 Aug 2017
Senior Investment Specialist Individual - Consulting Closed 17 Jul 2017 23 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.