fbpx 49413-001: Leapfrogging of Clean Technology in Central Asia Regional Economic Cooperation Countries through Market Transformation | Asian Development Bank

Regional: Leapfrogging of Clean Technology in Central Asia Regional Economic Cooperation Countries through Market Transformation

Sovereign (Public) Project | 49413-001 Status: Active

This proposal will enable faster adoption of new technologies in the CAREC region. The new Strategy and Work Plan (2016 -2020) aims to increase the awareness of decision makers and opinion leaders about global energy trends and recent energy innovations to promote new technologies and remove market barriers. The new technology trainings in 2015, where CAREC -ESCC representatives participated, exhibited recent technological developments and equipment available in the developed countries. As a result, ESCC members requested ADB to finance a RETA to demonstrate a range of new technologies that could be adopted by the energy sector which is a key pillar of 2016 -2020 strategy.

The proposed TA will fast-track technology adoption through a new technology roadmap, credible demonstration of new technology pilots through study tours, capacity development workshops and trainings.

The proposed TA will address the following in support of new technology in the CAREC countries:

Project Details

Project Officer
Hasnie, Sohail Central and West Asia Department Request for information
Country
  • Regional
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name Leapfrogging of Clean Technology in Central Asia Regional Economic Cooperation Countries through Market Transformation
Project Number 49413-001
Country Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9299-REG: Leapfrogging of Clean Technology in Central Asia Regional Economic Cooperation Countries through Market Transformation
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy efficiency and conservation

Gender Equity and Mainstreaming Some gender elements
Description

This proposal will enable faster adoption of new technologies in the CAREC region. The new Strategy and Work Plan (2016 -2020) aims to increase the awareness of decision makers and opinion leaders about global energy trends and recent energy innovations to promote new technologies and remove market barriers. The new technology trainings in 2015, where CAREC -ESCC representatives participated, exhibited recent technological developments and equipment available in the developed countries. As a result, ESCC members requested ADB to finance a RETA to demonstrate a range of new technologies that could be adopted by the energy sector which is a key pillar of 2016 -2020 strategy.

The proposed TA will fast-track technology adoption through a new technology roadmap, credible demonstration of new technology pilots through study tours, capacity development workshops and trainings.

The proposed TA will address the following in support of new technology in the CAREC countries:

(i) Develop understanding of relevant technologies that may be useful within the context of the country through new technology trainings and visit demonstration projects in developed countries.

(ii) Design and develop scalable demonstration projects to establish technology credibility and product standards in local settings.

(iii) Explore specific incentive options and policy support enabling faster adoption of new technology.

(iv) Establish a regulator's network and develop capacity to ensure consistent policy and standards across the region and support for a regional market to fast track technology adoption.

(v) Support capacity building and coordination of the ESCC activities for 2016- 2020.

The objective of the proposed TA is aligned with the core objectives of the ADB''s 2014 Clean Energy Financing Partnership Facility Work Program: (i) increase both demand and supply -side energy efficiency; (ii) promote the use of and adopt renewable energy sources; and (iii) improve access to energy for the poor and remote regions. The proposed TA is aligned with the priorities of the Clean Energy Financing Partnership Facility (CEFPF) where resources target the improvement of energy security through deployment of new clean energy technologies in developing member countries.

The ESCC members developed a New Technology Vision for demonstration and adoption during the Workshop on New Technologies held on July 2015 in Tokyo, Japan. The proposed TA support the new technology ecosystems and the ESCC members agreed to its scope during the ESCC Meeting held on April 2016 in Islamabad, Pakistan.

The proposed list of projects was part of the Strategy and Work Plan (2016 -2020) for Regional Cooperation in the Energy Sector of CAREC countries that the Ministers approved during the CAREC Senior Officials Meeting held on September 2015 in Ulaanbaatar, Mongolia and is linked to Central and West Asia Department''s investment project pipeline.

Project Rationale and Linkage to Country/Regional Strategy

Most of the power infrastructure in CAREC countries is more than 30 years old. Modernization and rehabilitation of the power delivery systems (generation, transmission and distribution network) and end use equipment (public lighting network, electric public transport network, air-conditioners in public facilities and office buildings, metering, and appliances used by end consumers) is a major challenge in this region, especially in the Central Asian countries where the country is fully electrified. Policy makers and financiers want to avoid technology obsolescence and the risk of stranded assets in this environment of rapid technology changes, and plans to build with new, efficient and credible technology that is both financially and technically feasible. The governments of Pakistan and Afghanistan, the two CAREC member countries where large populations do not have access to electricity, plan to build systems with efficient technology solutions that will remain useful in the medium to long term.

In both of these cases, the governments expect to jump from yesterday''s technology to tomorrow''s technology -- leapfrogging the mature technologies of today. In rural Pakistan, Afghanistan and India, large populations jumped from old analog landlines (or no telephones) to smart phones -- leapfrogging digital landlines and analog mobile networks. In capital cities, many assets supporting landline phones became stranded and value of investments diminished as a result.

Leapfrogging of technology as a strategy is difficult to implement. CAREC member countries must determine which technology is relevant in the medium-term from the technology trends of today. The next challenge is to adopt policy and actions that will shorten the lag between the time a technology is available in the developed world and the time this technology reaches their respective countries. The CAREC- Energy Sector Coordinating Committee (ESCC) envisions four disruptive technologies to lead tomorrow''s changes: battery -based energy storage, solar power, electric vehicles, and energy efficient appliances. These disruptive technologies are already available in developed countries. Inferior quality products made out of the same technology are slowly becoming available in the CAREC countries at significantly higher prices as smaller niche markets emerge.

CAREC member countries want to avoid the common 5- 7 year time lag for adoption of new technology and plan to implement technology that is cheaper, more energy efficient and have smaller carbon footprints. CAREC member countries acknowledge that the problem of technology adoption gap is even worse today, as new technologies in the energy sector are developing at a faster pace than before. Despite the obvious benefits, only early adopters from developed countries are benefiting from these technologies as new technology owners and suppliers focus on the higher margins from early adopter's niche markets in the developed countries. People from the developing world are unable to assume technology risks and be early adopters.

CAREC member countries consider this time lag in technology adoption as a market failure. The ESCC identified this _market failure_ phenomenon as a developmental challenge. The adoption and use of new and efficient energy technologies and increased integration of energy markets was included as a key pillar of Strategy and Work Plan (2016 -2020) for Regional Cooperation in the Energy Sector of CAREC countries that was endorsed during the CAREC Senior Officials Meeting in Mongolia on September 2015. The ESCC requested ADB to finance a regional technical assistance (RETA) to support technology leapfrogging which is the basis for this proposal. This RETA will address this market failure and enable CAREC member countries to leapfrog and adopt new technologies faster.

Impact Increased energy security among CAREC countries through the promotion and use of new technologies (Strategy and Work Plan [2016 2020] for Regional Cooperation in the Energy Sector of CAREC Countries)
Project Outcome
Description of Outcome New technology applied to energy systems in CAREC countries
Progress Toward Outcome Growing awareness of new technology in CAREC through capacity building and pilot discussions including (Q4 2017) start of pilot projects in some CAREC countries.
Implementation Progress
Description of Project Outputs

CAREC new technology road map developed

Links among CAREC countries toward a unified regional market for investment and new technologies strengthened

Market adoption potential of new technologies demonstrated

Capacity building on new technologies and electric vehicles developed

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

- Capacity building activities conducted in 2017: Asia Clean Energy Forum ADB HQ in June (electric vehicles strategy presented), ESCC Dushanbe May, Energy Investment Forum Astana July.

The draft High Technology Roadmap was shared with the members in March 2018 in Ashgabat, Turkmenistan.

Capacity building activities conducted in 2018: co-organizing high technology workshop with CAREC Institute in China July-August

- CAREC New Technology Roadmap presented at CAREC senior official meeting in Bangkok in June. All consultants and resource persons have been recruited for the Roadmap. Pilot projects are being finalized.

- Astana, Energy Investment Forum successfully attended by about 300 participants.

- Batumi, Energy Investment Forum successfully attended by 200 participants from 11 CAREC countries and development partners 11-13 September

- Pilot project to be implemented throughout 2018 for demonstration.

Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design During the CAREC ESCC meeting in Ulaanbaatar, Mongolia, senior officials endorsed the overall scope of the TA which will analyze the new technology landscape and develop a technology adoption road map for faster integration of new technology into existing systems in the region. The road map will include analysis of business models, and policy incentives for faster new technology adoption and scale-up. This falls within the framework of the Strategy and Work Plan (2016 -2020) for Regional Cooperation in the Energy Sector of CAREC Countries which aims to promote new technologies and remove market barriers for the adoption of new technology in the region.
During Project Implementation

Close coordination and regular consultations are to be held with the CAREC ESCC member countries to ensure: the completion of the potential pilot project (including size and location) in CAREC countries, complete the design and technical specifications for pilot demonstration projects, implement pilot projects, establish a monitoring and reporting mechanism, and evaluate and assess the scalability of pilot implementation (including social acceptability and financial sustainability).

Broad based social media engagement

Business Opportunities
Consulting Services The project will be supported by individual consultants and a consulting firm. The Asian Development Bank (ADB) will recruit key experts as individual consultants who, as a team, will develop the detailed design of the pilot projects and capacity building programs. The consulting firm will procure equipment and implement the pilot projects and capacity building programs. The project will require 67 person-months of consulting services (28 person-months for international and 39 person-months for national). Consultants will be recruited in accordance with ADB Guidelines on the Use of Consultants.
Procurement Procurement is expected for the pilot projects, and this will be done in accordance with ADB Procurement Guidelines.
Responsible ADB Officer Hasnie, Sohail
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 20 Sep 2016
Fact Finding 19 Feb 2019 to 19 Feb 2019
MRM -
Approval 13 Feb 2017
Last Review Mission -
Last PDS Update 28 Sep 2018

TA 9299-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Feb 2017 - 13 Feb 2017 31 Dec 2018 30 Apr 2020 -
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 13 Feb 2017 1,295,255.07

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Contracts Awarded

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Procurement Plan

None currently available.