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.
PLN Green Day Sustainable Financing Framework Launching Ceremony - Ahmed SaeedSpeech by Ahmed M. Saeed, ADB Vice-President, Operations 2, at the PLN Green Day Sustainable Financing Framework Launching Ceremony, 2 November 2020
Green Finance Strategies for Post-COVID-19 Economic Recovery in Southeast Asia: Greening Recoveries for Planet and PeopleThis publication examines innovative finance mechanisms for government recovery strategies that can incentivize green infrastructure investment in developing Asia and support the fight against the coronavirus disease (COVID-19) pandemic.
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.
At ADB Ventures, the bottom line is to help developing Asia meet the SDGsADB Ventures’ vision is to become the region’s largest impact technology platform, crowding in more than $1 billion of risk capital to contribute to the achievement of the SDGs by 2030.
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.
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.
Supporting Implementation of Environment-Related Sustainable Development Goals in Asia and the Pacific: Viet Nam’s Progress towards Implementation of the Environment-Related SDGs– TA Consultant’s ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated February 2020 is provided for the ADB regional project 50158-001.
Supporting Implementation of Environment-Related Sustainable Development Goals in Asia and the Pacific: Philippines Subproject TA Consultant's ReportConsultants' reports describe activities by a consultant or group of consultants related to preparing a technical assistance project. This document dated May 2020 is provided for the ADB regional project 50158-001.
Guidebook for Deploying Distributed Renewable Energy Systems: A Case Study on the Cobrador Hybrid Solar PV Mini-GridThis publication promotes the use of distributed renewable energy systems and presents lessons learned from the Hybrid Solar Photovoltaic Mini-Grid Project in Cobrador Island, Philippines.
Solar District Heating in the People's Republic of China: Status and Development PotentialThis publication discusses the development potential of solar district heating in the People’s Republic of China.
Establishing the Wholesale Electricity Market: 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 May 2019 is provided for the ADB project 48328-001 in Viet Nam.
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
Fossil Fuel Subsidies in Asia: Trends, Impacts, and Reforms – Integrative ReportAnalysis suggests that reduction or removal of subsidies will encourage a shift to alternative fuels, make investment in clean energy attractive, increase energy supply, reduce energy shortages, and cut greenhouse gas emissions.
Southeast Asia and the Economics of Global Climate StabilizationNew analysis suggests that the impacts of climate change in Southeast Asia may be larger than previously estimated, possibly reaching 11% of gross domestic product by 2100.
Promoting Carbon Capture Utilization and Storage through Carbon Dioxide-Enhanced Oil Recovery in the People’s Republic of ChinaDeclining oil productions from matured oil fields in the People’s Republic of China and their amenability to CO2-EOR suggest the urgent need to introduce CO2-EOR in these oil fields to stabilize the oil production and improve their economic viability.
Fossil Fuel Subsidies in Indonesia: Trends, Impacts, and ReformsFossil fuel subsidies are a prominent feature of many Asian economies, however they contribute to fiscal imbalances in many countries and restrict public expenditure on development priorities such as education, health, and infrastructure.
Fossil Fuel Subsidies in Thailand: Trends, Impacts, and ReformsFossil fuel subsidies are a prominent feature of many Asian economies, including Thailand, which has arguably achieved the most success in gas and electricity tariff reform.
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.
Improving Regulatory Environment for a Regional Power Market in South AsiaFor cross-border electricity trade in South Asia to be smooth across the region, policy and regulatory environments governing the power sector need to be harmonized.
Cross-Border Power Trading in South Asia: A Techno Economic RationaleDiversity in primary energy sources in South Asian countries and their electricity demand patterns open up opportunities for greater use of cheaper, cleaner resources for electricity generation, reducing fossil fuel use in the region.
Energy Efficiency Developments and Potential Energy Savings in the Greater Mekong SubregionGreater gains in energy savings are possible from improved energy efficiency and conservation measures, both as a smart business investment, and an imperative for the global community.
Renewable Energy Developments and Potential in the Greater Mekong SubregionRenewable energy is a challenge, but also an opportunity for new industries, employment, and new ways to reduce dependency on fuel imports, provide electricity to poor remote areas, reduce air pollution, and provide a healthier environment.
Asia Bond Monitor - March 2015The Asia Bond Monitor reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. This issue includes a special section on Oil and Gas Companies’ Bonds in Asia.
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.