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The World Bank Energy Program in East Asia and the Pacific Region. Charles Feinstein EAP Sector Manager, Energy and Water PSLO Seminar November 6, 2013. Agenda. Strategy and priorities. Focal areas. Turning strategy into action. I nstitutional capacity building and policy advice
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The World Bank Energy Program in East Asia and the Pacific Region Charles Feinstein EAP Sector Manager, Energy and Water PSLO Seminar November 6, 2013
Strategy and priorities Focal areas Turning strategy into action • Institutional capacity building and policy advice • Introducing new financing mechanisms and market-based approaches including trade in energy saving certificates • Energy efficient cities and green infrastructure • Policy and regulatory framework (feed-in-tariff) • Resource assessment and pre-investment activities • Financing RE (hydropower, wind, geothermal, solar PV) • Supporting T&D projects, regional integration and trade • Regulatory framework for advanced energy solutions • IGCC/CCS, energy storage, electric vehicles, smart grids • Low-carbon energy solutions, conventional and unconventional gas • Capacity building and institutional development • Grid and off-grid rural electrification programs • Access to clean and efficient cooking fuels and facilities • Knowledge sharing, regional initiatives and partnerships • Stable and transparent regulatory regime for PPP • Cost-reflective tariff system and well targeted subsidies for poor and vulnerable consumers • Gradual introduction of environmental externalities in the energy pricing
Global Trends and EAP Flagships Sustainable Energy for All (SE4ALL) EAP Flagship Activities
F1: Scaling-up Renewable Energy and EE Energy efficiency, renewable energy and low-carbon technologies can stabilize CO2 emissions in EAP by 2030 and improve local environment and energy security without compromising economic growth. However, the average annual incremental cost of SD scenario is $ 80 billion or about 0.8% of regional GDP …
F1: Scaling-up Renewable Energy and EE Energy efficiency, renewable energy and low-carbon technologies can stabilize CO2 emissions in EAP by 2030 and improve local environment and energy security without compromising economic growth. However, the average annual incremental cost of SD scenario is $ 80 billion or about 0.8% of regional GDP … Energy Efficiency … major policy and institutional reforms are needed Renewable Energy New Technologies Abatement cost Energy pricing reforms • Regulations and financial incentives • Institutional reform and green financing • Feed-in Tariff or RE Standard • Tax on fossil fuel • R&D and technology transfer • Financing incremental costs
F1: Scaling-up Renewable Energy and EE Energy efficiency, renewable energy and low-carbon technologies can stabilize CO2 emissions in EAP by 2030 and improve local environment and energy security without compromising economic growth. However, the average annual incremental cost of SD scenario is $ 80 billion or about 0.8% of regional GDP …
F2: Universal Access to Modern Energy Baseline in EAP: Despite impressive economic growth, 170 million people lack access to electricity…
F2: Universal Access to Modern Energy ….and every second household in the region still depends on solid fuels for cooking.
Electricity for a Better Life Indonesia: 1000 Islands Electrification Program Renewable Energy based Electricity Access Scale-up & Integration
Indonesia Electrification Rate – Target 90 % by 2019 Source: PLN
Meeting the Indonesia Electrification Challenge In response: • The Government has announced a 1,000 islands electrification program as a means to improve electricity access in its outer islands through renewable energy sources • As part of the strategy to address the high cost of generation: • PLN is converting, where technically and economically feasible and sustainable, its isolated grids from pure diesel-based generation torenewable diesel hybrid systems • investing in new solar-diesel hybrid systems, and • investing in mini-hydros • In parallel, PLN is embarking upon a grid rollout program that would improve electricity access, especially in the outlying communities in remote islands
Integrated Renewable Energy Planning and Investment Program RENEWABLE ENERGY RESOURCE MAPPING MESO SCALE MAPPING GROUND BASED MEASUREMENTS GEOSPATIAL MAPPING - LEAST COST ELECTRIFICATION PLANNING [GIS BASED RAPID SPATIAL PLANNING PLATFORM] ISLAND-BASED ISOLATED GRIDS, GRID EXTENSION, & OFF GRID COMPLEMENT PLANNING PROPOSED LOAN RENEWABLE ENERGY FOR ELECTRIFICATION (1,000 islands) PROJECT FUNDING SOURCES: World Bank, KfW FUNDING AMOUNT: US$ 600 million
F3: Sustainable Urban Energy and Emissions Planning • Cities account for nearly two-thirds of the world’s annual energy consumption and about 70% of the world’s greenhouse gas emissions. • EAP cities have relatively low consumption of energy per capita but the energy consumption and emissions are likely to increase. • Municipal governments in the EAP region would need to formulate and implement long term urban energy and emissions sustainability plans.
F3: Sustainable Urban Energy and Emissions Planning GHG emissions by Fuel Source SUEEP: Maps primary and secondary energy supply and use in a city, as well as efficiency of energy conversion and GHG emissions across municipal sectors; TRACE: Identifies priority areas for further investigation and intervention
F3: Sustainable Urban Energy and Emissions Planning GHG emissions by Fuel Source Energy Flow in Surabaya SUEEP: Maps primary and secondary energy supply and use in a city, as well as efficiency of energy conversion and GHG emissions across municipal sectors; TRACE: Identifies priority areas for further investigation and intervention
F3: Sustainable Urban Energy and Emissions Planning GHG emissions by Fuel Source GHG emissions by End Use Energy Flow in Surabaya SUEEP: Maps primary and secondary energy supply and use in a city, as well as efficiency of energy conversion and GHG emissions across municipal sectors; TRACE: Identifies priority areas for further investigation and intervention
Myanmar: Key Issues • Strategic Vision for Power Sector Development • Optimal fuel mix for secure and cost effective electricity supply in the domestic market • Private sector participation model attractive for investors and affordable for consumers • Reform of Legal and Regulatory Environment • Transparent and stable regulatory regime (adoption of new Electricity Law) • Financially sustainable power industry (cost recovery tariff for efficient power services) • Implementation of Investment Program • Least-Cost Investment Program • Mobilization of long term capital • Institutional Development and Capacity Building • Coordination with National Energy Management Committee • Technical assistance to MOEP and MOE for energy policy • Policy dialog with development partners • Sponsor & Legacy Issues • Particularly relevant to private sector projects (e.g. IPPs with early MOAs)
Myanmar: Primary Energy Supply and Access to Electricity • Biomass accounts for about two-thirds of primary energy consumption • Electricity consumption per capita is one of the lowest in the world (and GMS) • Electrification ratio increased from 16% in 2006 to 27% in 2012 • Large shortages in the gas (50%) and power (20-30%) market
Myanmar: Joint WBG Action Plan • Electric Power Project in MEPE (WB/IDA) • The $140 million CCGT Project presented at the Board on 09/24/2013, includes a sizable TA component ($10 million) • Develop Analytical Basis for Strategic Decisions (WB, IFC and MIGA) • Complete Public Expenditure Review by end-2013 (WB) • Develop National Electrification Program by June 2014 (WB/SEFA) • Assess possible funding sources (IFC and MIGA) • Financial Viability Action Plan and fiscal impact assessment by June 2014 (WB) • Support Government Decision Making and Power Sector Reform and Development Program (WB, IFC and MIGA) – continuous activities • Policy dialog on power market reform options for Myanmar (follow-up on the 2013 Policy Note to NEMC) • Policy briefs and presentations, workshops and outreach activities with other DPs • Electrification workshops (March and June 2014) • Preparation of Potential IFC Engagements • Joint advisory and investment proposal to support YESB • Investment support for emerging private sector projects in power distribution and gas-fired power generation • Exploratory discussions around IFC role in LNG using InfraVentures • Initial scoping of potential opportunities in sustainable hydropower