fbpx 52079-001: Floating Solar Energy Development | Asian Development Bank

Regional: Floating Solar Energy Development

Sovereign (Public) Project | 52079-001 Status: Active

Central and West Asian countries are heavily reliant on either fossil fuels, hydropower, or imported fuels and power, which make them carbon-intensive, energy-insecure, and vulnerable to climate and external supply shocks. The proposed knowledge and support technical assistance (TA) aims to pilot test and build expertise on the emerging floating solar photovoltaic (FPV) technology to diversify the energy mix, increase energy security, and reduce greenhouse gas (GHG) emissions. Afghanistan, Azerbaijan, and the Kyrgyz Republic represent these critical vulnerabilities of Central and West Asian countries and are the targeted beneficiaries.

Project Details

Project Officer
David Elzinga Central and West Asia Department Request for information
Country
  • Regional
Sector
  • Energy
 
Project Name Floating Solar Energy Development
Project Number 52079-001
Country Regional
Afghanistan
Azerbaijan
Kyrgyz Republic
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9564-REG: Floating Solar Energy Development
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 3.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming No gender elements
Description

Central and West Asian countries are heavily reliant on either fossil fuels, hydropower, or imported fuels and power, which make them carbon-intensive, energy-insecure, and vulnerable to climate and external supply shocks. The proposed knowledge and support technical assistance (TA) aims to pilot test and build expertise on the emerging floating solar photovoltaic (FPV) technology to diversify the energy mix, increase energy security, and reduce greenhouse gas (GHG) emissions. Afghanistan, Azerbaijan, and the Kyrgyz Republic represent these critical vulnerabilities of Central and West Asian countries and are the targeted beneficiaries.

The TA is aligned with the Energy Policy 2009; the energy sector group work plan, 2018 -2019; and the Central Asia Regional Economic Cooperation (CAREC) Strategy 2030 and Work Plan, 2016- 2020. The TA outcome will contribute to the Asian Development Bank (ADB) target of providing at least $6 billion in climate financing annually from 2020. The countries requested the TA and agreed with the scope during reconnaissance missions in November 2017 and January 2018. All member countries concurred with the TA concept at the CAREC Energy Sector Coordinating Committee (ESCC) meeting in Ashgabat, Turkmenistan in March 2018. The TA is not included in ADB''s country operations business plans and regional cooperation operations business plan. The concept clearance was obtained on 6 June 2018.

Project Rationale and Linkage to Country/Regional Strategy

Power supply in Afghanistan is 80% imported, while 85% of power in Azerbaijan is supplied from fossil fuel-based plants. In the Kyrgyz Republic, 90% of power is from hydropower plants. All countries have little or no installed solar capacity despite rapid cost reductions in the last 5 years and supporting policies. This is due to lack of awareness, and insufficient technical skills and knowledge on the costs, benefits, and financing options.

The availability, suitability, and cost of land for solar energy are additional constraints to its development. Land with competing uses, such as agriculture and housing, is expensive, and hilly terrains are costly to develop and prepare for land-based solar projects. However, the countries have large lakes and reservoirs with perennially sunlit surfaces. The installation of FPV on these water bodies optimizes the use of water and solar resources, diversifies the energy mix, enhances energy security, and avoids emissions. The total installed generation capacity of the region is only a fraction of the potential FPV capacity on the region''s hydropower reservoirs alone. With the existing grid infrastructure for hydropower, the cost of installing FPV is reduced while the power density in megawatts (MW) per flooded area is significantly increased. The FPV output also allows time-shifting of hydropower output, creating a virtual pumped storage capability. Moreover, FPV installed in reservoirs used for drinking water, fishing, irrigation, and hydropower has added environmental benefits. It reduces evaporative losses (water conservation) and algal growth, increasing water clarity and resulting in plant growth, increased oxygen, and fish growth.

Solar energy is inexhaustible and available year-round, and photovoltaic cost-effectiveness is proven globally. Land-based and floating photovoltaic are sustainable options, given that (i) the countries have adequate solar resources, (ii) photovoltaic is becoming even more cost-effective, (iii) photovoltaic is quick to install, and (iv) photovoltaic mitigates climate change while enhancing energy security. Photovoltaic development also supports the countries' nationally determined contributions targets to reduce GHG emissions by 2030.

The TA will pilot test high technology, enabling the countries to leapfrog in knowledge and capacity and increase readiness for private sector participation in large-scale, land-based, and floating solar development. The TA will also address critical challenges and vulnerabilities such as (i) insufficient technical and institutional capacity, (ii) limited financial resources, (iii) tariffs below cost recovery, and (iv) energy insecurity due to reliance on a single type of energy source.

Afghanistan remains in the lowest 5% of electricity use globally, with only 30% of the population connected to the grid. Domestic capacity is only 520 megawatts (MW); and imports from Iran, Tajikistan, Turkmenistan, and Uzbekistan account for 80% of the power supply. Unreliable supply and lack of grid connection have caused reliance on expensive (about $0.50 per kilowatt-hour) and carbon-intensive diesel generation. The country aims to diversify into renewable energy and encourage private sector participation, but its inaccessible and insecure land, and limited baseload generation and grid capacity, have hindered solar development.

In Azerbaijan, oil and gas supply over 90% of power while hydro accounts for 7%. The government aims to diversify its energy mix and improve sector efficiency, but the low user tariffs hinder investments in renewable energy. A 2016 Presidential decree mandated reforms to develop non-oil sectors, increase the use of domestic resources to free up oil and gas for additional export revenues, and incentivize private sector entry into renewable energy. The high-cost, limited availability, and competing uses of land have stalled photovoltaic development.

The Kyrgyz Republic relies heavily on hydropower, which represents 80% of capacity and 90% of supply. It is a net electricity exporter, but a net importer of fossil fuels to feed cogeneration plants in winter when reservoir water is low. Excess water is spilled without generating electricity in the summer, while coal-based plants supply the winter electricity shortage. The country needs to diversify to clean year-round power generation sources as the seasonality of hydropower threatens its energy security and increases emissions. The country''s rugged terrain and low user tariffs have contributed to the lack of investments in solar and other clean technologies.

While FPV requires stricter standards, given the exposure to water, it has advantages over land-based photovoltaic, as it (i) frees up land for other uses and saves on land acquisition and preparation costs, (ii) allows higher yields because of the cooling effect of water, (iii) conserves water through reduced evaporation, (iv) has readily available water for module cleaning, and (v) is quick to install. FPV systems have been largely installed on lakes, irrigation ponds, and reservoirs. Some plants have been built and tested in marine environments, and pile- or stilt-mounted plants have been installed over aquaculture farms, canals, and wetlands.

Impact

Selected countries' energy security enhanced (CAREC Energy Strategy and Work Plan, 2016 2020)

Greenhouse gas emissions reduced (United Nations Framework Convention on Climate Change)

Project Outcome
Description of Outcome Utility-scale floating solar projects in selected countries initiated
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Pilot-scale floating solar plants installed and scaled up plants assessed in selected countries

Business models with private sector participation developed

Institutional capacity in designing, constructing, and operating FSP systems enhanced

Status of Implementation Progress (Outputs, Activities, and Issues) Consulting firm mobilized on 18 September 2018. Inception mission scheduled in early November 2018.
Geographical Location Afghanistan - Nation-wide, Qarghah; Azerbaijan - Nation-wide, Lake Boyukshor; Kyrgyz Republic - Nation-wide, Toktogul
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 An international consulting firm is selected through the quality- and cost-based selection (QCBS) method using full technical proposal. The ratio of quality against cost will be 90:10 given the relatively new technology. Individual consultants recruited as resource persons or presenters/trainers will be recruited as needed to which lump sum and/or output based contracts will be considered.
Procurement Three (3) Design-Build-Operate (DBO) contracts for the pilot projects are to be procured by the TA Consultant on behalf of ADB using shopping method. Each of the contract is estimated at $300,000 on which procurement will commence in Q4 2019, with contract award expected by Q1 2020.
Responsible ADB Officer David Elzinga
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
Da Afghanistan Breshna Sherkat
Chaman Houzouri, Kabul, Islamic Republic
of Afghanistan
OJSC Electric Power Plants
326 Jibek Jolu Prospect,
Bishkek
Kyrgyz Republic
The Ministry of Energy of the Republic of Azerbaijan
Haydar Aliyev Avenue 152, Chinar Plaza
Timetable
Concept Clearance 06 Jun 2018
Fact Finding -
MRM -
Approval 17 Aug 2018
Last Review Mission -
Last PDS Update 28 Sep 2018

TA 9564-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Aug 2018 - 17 Aug 2018 31 Mar 2021 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 3,000,000.00 0.00 0.00 0.00 0.00 3,000,000.00 17 Aug 2018 263,372.60

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.

Title Document Type Document Date
Floating Solar Energy Development: Technical Assistance Report Technical Assistance Reports Sep 2018

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.

Related Publications

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
(Communications and Media Expert) Individual - Consulting Closed 19 Feb 2019 25 Feb 2019
Floating Solar Energy Development Firm - Consulting Closed 22 Mar 2018 26 Apr 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9564 17 Sep 2018 EQO-NIXUS, Advisory, Mgmt. & Training Svcs, S.L.U.(SPAIN) Av. de les Garrigues 46, Parc Mas Blau I EL PRAT DE LLOBREGAT, BARCELONA, SPAIN Asian Development Bank Consulting Services 2,897,250.00
Capacity Development Technical Assistance 9564 17 Sep 2018 EQO-NIXUS, Advisory, Mgmt. & Training Svcs, S.L.U.(SPAIN) Av. de les Garrigues 46, Parc Mas Blau I EL PRAT DE LLOBREGAT, BARCELONA, SPAIN Asian Development Bank Consulting Services 2,897,250.00

Procurement Plan

None currently available.