ADB's Work in the Energy Sector
ADB has been providing assistance to its developing member countries in the energy sector for more than 40 years. Its support has been focused on:
- enhancing access to clean and modern energy
- scaling up the deployment of renewable energy
- strengthening electricity transmission and distribution systems to integrate more renewable energy
- improving demand-side energy efficiency in buildings, transport and industries
- promoting power sector reforms governance and regional integration.
ADB Energy Policy
ADB's 2009 Energy Policy aims to help developing member countries provide reliable, adequate, and affordable energy for economic growth in a socially, economically, and environmentally sustainable way. The policy enables ADB energy operations to be aligned with the organization’s overall strategy of emphasizing energy security, facilitating a transition to a low-carbon economy and universal energy access, and for achieving ADB’s vision of a region free of poverty. The energy policy review is in progress to ensure it is aligned with Sustainable Development Agenda and Paris Agreement on climate change.
The 3 Pillars of ADB's Energy Policy
1. Promoting energy efficiency and renewable energy
ADB is working to introduce advanced technologies to increase energy efficiency in the region while also increasing the share of renewable energy in the region’s energy mix.
ADB has integrated clean energy into its project development process and has put in place financing to help decrease the cost of clean energy projects. It has launched initiatives for the rapid deployment of low-carbon technologies in the region.
2. Maximizing access to energy for all
ADB is broadening its support for greater energy access not only financially, but also by identifying innovative solutions and sharing information with partner development institutions, national governments and the private sector.
These innovative solutions include deploying distributed renewable energy, developing appropriate business models that enable and build markets for clean energy, and harnessing multiple benefits from working with other sectors and industries.
3. Promoting energy sector reform, capacity building, and governance
ADB continues to engage governments in policy dialogues to determine needed sector reforms and promote good governance. This involves helping developing member countries implement policies, regulations and incentives that will allow power systems to transition to clean energy, ensure universal access and provide affordable, reliable and sustainable supply.
Energy Issues in Asia and the Pacific
Energy demand is projected to almost double in the Asia and Pacific region by 2030. Widespread energy poverty across Asia has curtailed development. In 2018, developing Asia had about 200 million people without access to electricity, and 1.7 billion without access to clean cooking.1 Innovative ways to generate power in a socially, economically, and environmentally sustainable manner are imperative and urgent.
This section highlights the energy issues and trends that ADB has identified as priorities in developing Asia and the Pacific to achieve access to clean energy for all, and contribute to meeting global climate goals under the Paris Agreement and the UN Sustainable Development Goals (SDG).
Energy efficiency is emerging as one of the key options that can help nations in Asia and the Pacific meet the region's growing energy needs in a clean and effective way.
Increasing the efficiency of energy use and supply yields lower costs and increases availability of energy. It also produces large environmental and economic benefits:
- It eases pressure on fossil fuel demand and energy prices.
- It improves energy security.
- It reduces greenhouse gas emissions.
Technical advancement and market dynamics offer greater opportunities to improve energy efficiency, have increased the viability of new and renewable sources of energy, and have expanded the options for off-grid and community-based electricity supply.
Keynote Speech at the 17th World Wind Conference 2018, Karachi, Pakistan - Xiaohong YangKeynote speech by Xiaohong Yang, ADB Country Director for Pakistan for the 17th World Wind Conference 2018 on 28 November 2018, in Karachi, Pakistan
Plant Technology Upgrade Helps Stabilize Energy Supply in TajikistanThe Nurek hydropower plant is Tajikistan’s main source of power, producing around 60% of the nation’s electricity.
Energy Technology Innovation in South Asia: Implications for Gender Equality and Social InclusionThis working paper addresses how energy systems and services in South Asia can improve women’s economic empowerment and well-being.
South Sumatra's Geothermal Power Project Supports Rural Women's LivelihoodA geothermal power project in South Sumatra is expected to generate more than 90MW of electricity, which will power up to 130,000 homes. The project also supports livelihood improvement of locals, especially rural women.
Hybrid Solar-Wind Energy System Brings Electricity to Pakistan Rural AreasTwo remote villages in Pakistan's Punjab now have electricity thanks to a clean energy system installed with ADB support. Residents were trained to operate and maintain the facility, ensuring its long-term sustainability.
Access to Energy
Access to modern, cleaner energy is essential to sustainable human development. The majority of the world’s energy poor are living in Asia and the Pacific. More than 200 million people in the region have no electricity and about 1.7 billion people have no access to clean cooking.
Energy is crucial in achieving the SDGs, SDG7 in particular that seeks to “ensure access to affordable, reliable, sustainable and modern energy for all.” Access to energy helps alleviate poverty, improve health conditions, and ensure energy security. Sustainable energy for all anchored on clean energy also builds resilience against the adverse impact of climate change.
TA 7548-REG Final Report: Azerbaijan Country Assessment of Environmental Safeguard CapacityConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated November 2014 is provided for the ADB project 43333-012.
TA 7548-REG Final Report: Pakistan Country Assessment of Environmental Safeguard Capacity and Capacity Development PlanConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated November 2014 is provided for the ADB project 43333-012.
News from Nepal: A Quarterly Newsletter of the Nepal Resident Mission of the Asian Development Bank (October 2014)Asian Development Bank’s main focus in its current country partnership strategy (CPS, 2013-2017) has been on making Nepal’s energy sector a key driver of inclusive economic growth.
Energy Security in Asia: Prospects for Regional CooperationThree case studies in this paper illustrate some of the secondary consequences of the search for energy security and its relationship to regional trade and cooperation.
Demand in the Desert: Mongolia’s Water-Energy-Mining NexusWater availability is constraining Mongolia's development as energy facilities, mining operations, agriculture, and urban residents compete for scarce water resources.
Sector Governance and Reform
Policies, capabilities and institutions are just as important as transmission and distribution lines or solar parks. ADB supports its developing member countries in:
- establishing competitive electricity markets, adopting market pricing mechanisms, and regulating monopolies
- encouraging private sector participation, particularly public-private partnerships
- supporting research, legislation, technology development, and regulation
- adopting tariff structures to promote energy conservation
- training in energy planning, demand forecast, financial management, operations and maintenance of assets, and economic assessment
Preparation of Sector Road Maps for Central and West Asia: An Infrastructure Road Map for Uzbekistan - Final ReportConsultant’s reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated November 2012 is provided for the ADB project 44402-012.
Port Moresby Power Grid Development Project: Final ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated November 2012 is provided for the ADB project 43197-012 in Papua New Guinea.
Comparative Analysis and Policy Study on Residential Electricity Bills in Selected ADB Member CountriesElectricity is a public necessity for a modern society, and electricity consumption grows more rapidly than consumption of other types of commercial energy as a society increases in affluence. This working paper intends to make a comprehensive comparison of electrical bills of residential consumers among ADB member countries and uncover what tariff structure and policies ADB member countries adopted to promote renewable energy and energy efficiency among end users.
Assam Power Sector Enhancement Investment Program - Tranche 1: Capacity Development of the Assam Power Sector Utilities Final ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated March 2012 is provided for the ADB project 41614-023 in India.
Developing the Power System Master Plan for Bihar: Final Report (Appendix 8 - Appendix 10)Consultant’s reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated October 2011 is provided for the ADB project 42054-012 in India.
Regional cooperation can play a vital role in ensuring energy security in a sustainable manner. Subregional power trade can help meet energy demand, and maximize scarce natural resources.
Together with regional and subregional networks, ADB can play a pivotal role in promoting effective cooperation on energy among countries in Asia and the Pacific.
Corporatization of Bangladesh Power Development BoardConsultant’s reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated August 2008 is provided for the ADB project 39141-012 in Bangladesh.
Second Meeting of the Planning Working Group (PWG-2) of the Regional Power Trade Coordinator Committee (RPTCC): Summary of DiscussionsThe establishment of the Planning Working Group (PWG) was agreed during the 1st Meeting of the Focal Group held in Hanoi in January 2006, and is the first of the sub-groups to be created to carry out priority activities of the RPTCC.
Waste Coal Utilization StudyConsultant’s reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated September 2006 is provided for the ADB project 36471-012 in the People's Republic of China.
Clean Energy Program
The ADB Clean Energy Program aims to lower energy-related emissions, extend supply of modern energy services to all, and improve economy-wide energy efficiency to effectively reduce the rate of growth of energy demand. All these objectives will help ADB DMCs attain energy security.
Among the activities that ADB is implementing under the program are (i) expansion of clean energy investments in DMCs; (ii) implementation of demand-side clean energy components in ADB-funded projects in water, transport, urban, and agriculture sectors; and (iii) monitoring of the pipeline of clean energy projects and achievements against the outcome indicators of the 2009 Energy Policy.
The Clean Energy Program includes energy efficiency, renewable energy, energy access, carbon financing, climate technology deployment, and policy and regulatory development. All these areas are meant to reinforce each other and propel ADB DMCs to a low-carbon growth paths.