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.
54th ADB Annual Meeting: Unleashing Venture Capital for a Robust, Green, and Inclusive RecoveryA panel of experts explored how to catalyze venture risk capital investment for a robust, green, and inclusive recovery in Asia and the Pacific.
Implementing a Green Recovery in Southeast AsiaThis brief outlines how Southeast Asia can focus on green growth to successfully and sustainably recover from the coronavirus disease (COVID-19) pandemic.
Office of the Special Project Facilitator’s Lessons Learned: Sri Lanka Clean Energy and Network Efficiency Investment ProjectThis publication discusses issues and resolutions on the clean energy and network efficiency investment project in Sri Lanka as one of the Office of the Special Project Facilitator's Lessons Learned series of case studies on complaint management.
Increasing Access to Clean Cooking in the Philippines: Challenges and ProspectsThis publication analyzes the use of clean and efficient cooking technologies in the Philippines and identifies opportunities and challenges to fast-track their uptake.
Carbon Capture, Utilization, and Storage Game Changers in Asia: 2020 Compendium of Technologies and EnablersThis compendium showcases new and innovative low carbon technologies that have potential to be deployed in Asia and the Pacific. It features 10 technologies for capturing, utilizing, or storing carbon dioxide.
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.
Bhutan and the Asian Development Bank – Partnership for Inclusive Growth: Development Effectiveness BriefThis publication highlights how ADB and Bhutan are working together to achieve more inclusive, sustainable, and resilient growth.
Renewable Energy Tariffs and Incentives in Indonesia: Review and RecommendationsThis report proposes a renewable energy subsidy mechanism for Indonesia to close the gap between the costs of renewable and conventional power generation.
A Study on the Prospect of Hydropower to Hydrogen in NepalThis paper explores the prospect of deploying hydrogen to address shortage of electricity and fuel supply in Nepal. It serves as a baseline for opportunities in countries with abundant renewable resources and facing energy-related challenges.
Energy Storage Option for Accelerating Renewable Energy Penetration: Technical Assistance Consultant’s ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated August 2020 is provided for the ADB project 51282-001 in Mongolia.
Hydropower Development and Economic Growth in NepalThis paper assesses how developing a part of Nepal’s hydropower potential results in stronger economic growth and significantly reduces poverty while delivering environmental benefits and climate change mitigation.
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
New Energy Grid, Transmission Investments are Lighting up Papua New GuineaIncrease access to electricity will help create economic opportunities and support better social outcomes in Papua New Guinea. ADB is supporting the government’s energy program with $238 million of ongoing investments.
The Impact of Nationally Determined Contributions on the Energy Sector: Implications for ADB and Its Developing Member CountriesImplementation of the national determined contributions under the Paris Agreement will significantly reduce dependence on coal in the power mix by replacing it with renewables, nuclear, and gas.
Sustainable Environmental Management of Projects in Central and West Asia – Manual for Monitoring of Environmental Safeguards Implementation: Technical Assistance Consultant's ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated July 2018 is provided for the ADB regional project 48109-001.
Harmonizing Electricity Laws in South AsiaThis country analysis of the energy sector in South Asia enables understanding of the state of the legal and regulatory framework for energy trade and areas of reform.
LED Street Lighting Best PracticesProviding street and public lighting is one of the most expensive responsibilities of a municipality. This report presents lessons from a pilot LED project in Indonesia.
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.
SASEC Vision – MyanmarThis publication identifies regional and subregional opportunities for Myanmar to harness natural and human resources, industrial potential, and infrastructure connectivity as part of the South Asia Subregional Economic Cooperation program.
Greater Mekong Subregion: Twenty-Five Years of PartnershipThis publication tells the success story of the Greater Mekong Subregion in vivid images, data, and narratives.
Strategic Environmental Assessments for Power Sector Planning in the Greater Mekong SubregionThis publication shows how strategic environmental assessments can help the Greater Mekong Subregion (GMS) countries create sustainable national power development plans.
Together We Deliver: Results Achieved, Lives ImprovedThis publication showcases stories of successful partnerships between ADB and its member countries in Asia and the Pacific.
Melaka a model green city - Ramesh SubramaniamIn the last five years, Melaka has made great strides toward building a sustainable, green city.
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.