Energy Access Program in Developing Asia and a Proposal for Myanmar

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Energy Access Program in Developing Asia and a
Proposal for Myanmar
Pradeep Tharakan, PhD Energy Specialist (Climate
Change) Southeast Asia Energy Division (SEEN),
Asian Development Bank, Manila
June 2013
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• OUTLINE
• ADBs Energy for All Program
• Some recent examples of ongoing energy access
  support programs
• A proposal for technical assistance to Myanmar

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ADBs Response Energy for All Program

• Energy for All program was launched in 2008 to
• Mainstream energy access for the poor in ADBs
  operations
• Increase ADB investment in energy access projects
  and enterprises
• Develop strategic partnerships and alliances with
  other stakeholders.

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ADBs Response Energy for All Partnership

• The Energy for All Partnership was established in
  2009
• Aim is to provide 100 million people with modern
  energy access by 2015

ENERGY FOR ALL PARTNERSHIP
COLLABORATION WITH OTHER PROGRAMS

Source IEA 2012
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Energy for All Donors and Supporters
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Energy for All 4 Priorities

1. Continue efforts to increase ADBs investment in
   energy access.
2. Facilitate the replication and expansion of
   energy access enterprises in Asia and the
   Pacific.
3. Mobilize and channel resources to address
   financial, technical and regulatory barriers in
   the energy access sector.
4. Capture and disseminate best practices and
   sustainable business models in the energy access
   sector.

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Energy for All
Partnership

• Primary actors in the energy access space
• Proponent (energy access enterprises, government,
  private-public partnerships, etc.)
• Enabler (incubators, donor programs, brokers,
  etc.)
• Investor (equity funds, commercial banks,
  financial institutions, etc.)

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Energy for All
Ongoing Activities

• KNOWLEDGE MANAGEMENT
• Energy for All website
• Knowledge hub of best practices and business
  models
• Idea exchange and concept refinement
• Identifying funding opportunities
• Identify credible projects (CTI-PFAN, New
  Ventures)
• Utilizing in-country teams to identify credible
  projects, provide relevant capacity building
  services, and facilitate investment
• CAPACITY BUILDING
• Incubation (SELCO India)
• Incubation models for energy access

Marketing Outreach
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Energy for All
Ongoing Activities

• PROJECT DEVELOPMENT
• Technology Transfer (Inensus, Power Source)
• Technology transfer of mini-grid management
  system
• PROMOTING PARTNERSHIPS
• Web-based investment facilitation (Impact
  Investment Exchange)
• Building an online investment platform for energy
  access enterprises
• Partnerships with investors and financial
  institutions
• Referral of energy access enterprises in the
  investment portfolio

Project Development
Investment Facilitation
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Energy for All
in Action Simpa Networks

• Assistance to Simpa Networks
• Energy for All Investor Forum
• Simpa Networks was one of the finalists selected
  to present in the Energy for All Investor Forum
  last June 2012.
• This opportunity gave Simpa Networks increased
  visibility within ADB, leading to the Private
  Sector Operations Departments (PSOD) interest in
  investing in the company.
• Investment Facilitation
• PSOD is considering to take an equity stake in
  Simpa Networks worth USD 2 million.
• This deal is the first of its kind, considering
  the deal size, the maturity of the company and
  the industry.
• Energy for All seeks to work more closely with
  PSOD and understand how to improve deal
  facilitation.
• Due Diligence
• The Energy for All Team is assisting PSOD to
  conduct feasibility analysis, valuation and
  further due diligence for board approval.

Simpa Networks developed a secure, prepaid
payment platform that makes modern Energy
simple, affordable and investible. This platform
utilizes a combination of hardware and software
technology that is tied together by an SMS and
web-based backbone. It enables energy access
enterprises to sell clean energy solutions such
as solar home systems, solar electric microgrids,
UPS systems and more.
Business Model
Paying the Simpa Way Consumers can purchase SHS
by paying10-20 of the units cost up front. The
balance will be paid through the purchase of
energy credits every month.
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Energy for All
in Action Scaling up Energy Access in Sumba
Island

• Objectives
• Promotion of small scale renewable energy
  deployment in Eastern Indonesia using a case
  study approach in one island.
• Partnership with MEMR, PLN and governments of
  NTT, and Sumba.
• Build on prior and ongoing work (HIVOS, World
  Bank)

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Scope and Approach

• Grants funds of 3.0 million to be used for
  consulting inputs and output based aid programs.
• 3-yr implementation period
• Outputs
• Detailed energy access plan for Sumba developed.
• Priority investment projects to be developed by
  small independent power producers identified and
  prepared.
• Implementation of ongoing and planned energy
  access programs financed by the government
  strengthened.

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Ongoing Activities

• Off grid micro hydro (Hivos)
• Solar home systems (gt30.000 SEHEN)
• Increase hydro for the grid (PLN)
• Wind turbine preparation for the grid (Sewatama)
  and off grid wind (IBEKA)
• Solar pumping pilot (YSS)
• gt 100 biogas digestors in 2012
• More to come (biomass GE, solar PV, ..)

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ADBs Response Investing in Energy Access
ADBs investment in energy access increased to a
cumulative total of USD 2.8 billion from 2008 to
2011, which is expected to raise new connections
to modern energy to nearly 10 million households.
Source Energy for All, 2012
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• Proposed ADB Technical Assistance for Off-grid
  Renewable Energy Access in Myanmar

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• Background
• The Directorate of Industrial Planning, Ministry
  of Industry (MOI) presented a project proposal
  for rural energy development at the Myanmar
  Development Cooperation Forum (MDCF) held in Nay
  Pyi Taw (1920 January 2013)
• MOI chairs the Rural Energy Development
  Supporting Committee
• Ongoing efforts (20112013) to provide energy
  access in 591 remote villages
• Implementation of micro-hydro, solar,
  biogas/biomass gasification, small wind power
  systems in remote, off-grid areas, primarily to
  provide power to schools and other public
  facilities in those areas.
• MOI aims to provide such systems to a further 103
  villages and is seeking funding from bilateral or
  multi-lateral donors to continue with the program
  during 20142018.

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• Key Considerations
• Sustainable approaches that allow for adequate
  OM, and replacement costs.
• Business models that combine capital subsidies
  (viability gap financing) with partial cost
  recovery.
• Draw on domestic manufacturing and fabrication
  expertise rebuild RE equipment supply chains
• Electricity is one of two considerations, what
  about cooking fuels and improved cook stoves ?

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• Suggested Approach?
• Support some pilot installations - not to
  demonstrate technology, but models of public
  procurement, public-private partnerships, and
  viability gap financing models
• Also demonstrate systematic energy access
  planning approaches select 1-2 regions
• Link up with ADBs 12 million grant for
  Enhancing Rural Livelihoods and Incomes Project
  block grants to village tracts to undertake
  priority small scale rural infrastructure and
  livelihood subprojects based on village
  development plans

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• Suggested Approach?
• ADB is mobilizing about 1.5-2.0 million USD to
  carry out this work
• MOI is convening a workshop in Nay Pyi Taw on
  June 4 (Tuesday 8 am 12 noon)
• Purpose of the workshop To develop an
  appropriate implementation approach and to
  identify partners

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ADB GMS Env Operations Center
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GMS Interactive Atlas
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• Thank you
• ptharakan_at_adb.org