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Asia Sustainable and Alternative Energy Program. ASTAE. Status Report Consultative Group Meeting April 3, 2009 Washington, D.C. 1. Asia Sustainable and Alternative Energy Program. Outline. Strategic Context ASTAE FY08 - Implementation Highlights Pipeline FY09 Indicators 2008-2009
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Asia Sustainable and Alternative Energy Program ASTAE Status Report Consultative Group Meeting April 3, 2009 Washington, D.C. 1
Asia Sustainable and Alternative Energy Program Outline Strategic Context ASTAE FY08 - Implementation Highlights Pipeline FY09 Indicators 2008-2009 Business Plan 2009-2012 Funding Status & Staffing
Asia Sustainable and Alternative Energy Program • Strategic Context The EAP region has the fastest energy demand growth among all regions in the world Coal to account for nearly half of primary energy environmental impacts Oil imports to rise security concerns Power needs are rising in the EAP, and not only in China Power generation is dominated by coal (~75%); oil (~10%); gas (~10%); rest is renewable energy + nuclear
Asia Sustainable and Alternative Energy Program As a result, several EAP Countries have High and Accelerating Fossil Fuel CO2 Emission Growth
Asia Sustainable and Alternative Energy Program China is the 2nd largest source of global greenhouse gas emissions Indonesia is the 3rd if biomass is considered Global ranks – highest CO2 Emitters Main sources of CO2 emissions in EAP, 2000 Source: WRI, 2007 Note: LULUCF: Land Use, Land Use Change and Forestry; the methodology of estimating emissions from land use is not as widely accepted as from fossil fuels Source: WB, 2007, based on data sources for energy: IEA 2005 (except Indonesia, which uses PIE 2005); agriculture, 2005 data from USEPA 2006; Forestry: Houghton 2006; waste: 2005 data from USEPA 2006
Asia Sustainable and Alternative Energy Program Energy Demand is Growing Dramatically, Especially in China… Installed Generation Capacity, China (GW) Vehicle Population, China (millions) Over 750MW per week Over 20,000 vehicles per day
Asia Sustainable and Alternative Energy Program China’s private car use (share of total transport) grew from 6 to 23.2% (1990-2003) Cars/1000 population in international comparison, 2003
Asia Sustainable and Alternative Energy Program Coal Continues to Dominate Energy Production • Coal dominates power generation (~75%) • Coal consumption growth outpaced total energy growth by 65% • China became coal importer in 2006 • Vietnam’s coal share in total energy mix is expected to increase from 13% in 2005 to 20% in 2010 Total Primary Energy and Coal Consumption Source: BP World Energy Review, 2007
Asia Sustainable and Alternative Energy Program Trends and Projections for CO2 Emissions from Energy
Asia Sustainable and Alternative Energy Program …at the Same Time, Access to Energy is still a Challenge for Many Countries In2005, 223 million people in EAP still did not have access to electricity
Asia Sustainable and Alternative Energy Program Most Effected EAP Countries by Climate-Related Threats
Asia Sustainable and Alternative Energy Program The Bali Roadmap Sets a two-years time frame to strengthen the international response to climate change A central element of the roadmap for developing countries is the focus it places on creating investment opportunities by developing climate friendly technology and finance Several EAP countries have set ambitious targets for renewable energy generation, energy efficiency improvements, and access to electricity – much remains to be done to reach these targets Renewable Energy China has the most ambitious targets for renewable energy and is the most likely country to attain / surpass them.
Asia Sustainable and Alternative Energy Program Energy Efficiency Energy efficiency is low in the EAP region compared to OECD average Access Access levels remain low in Indonesia, Cambodia, Laos, Timor Leste, PNG
Asia Sustainable and Alternative Energy Program Major Issues/Challenges • Manage energy demand growth and increase energy efficiency • Improve the energy sector's ability to attract investment • Mitigate environmental impact of energy sector • Scale up investments for increasing access to modern energy services The Bank Group’s commitments (EAP Region) 2008 Bank Climate Change Lending Portfolio by Regions as of Jan, 2008 • $618.5m active Bank lending portfolio, representing 53% of the Bank’s climate change portfolio • China dominates the EAP climate change portfolio with emphasis on energy efficiency and renewable energy
Asia Sustainable and Alternative Energy Program EAP has the Largest GEF and CF Portfolios among Regions… World Bank GEF Climate Change Portfolio by Regions GEF: $184m GEF grant portfolio, 74% in China Emphasis on energy efficiency, renewable energy, clean technologies, more recently urban transport and adaptation CarbonFinance: 73% of Bank CF portfolio by volume, China alone is 70% Focus on energy efficiency in power and industry, industrial gas emission reduction, waste management, reforestation World Bank Carbon Finance Portfolio by Regions based on volume of emission reductions
Asia Sustainable and Alternative Energy Program 13 EE projects and 5 New RE projects in the EAP region in FY2008 The EAP has the largest World Bank RE and EE Commitments in FY2008
Asia Sustainable and Alternative Energy Program Country focus • China • Renewable energy • Efficiency • Urban heating & gas (multi-sector) • Desulfurization • Coal sector restructuring • Long-term energy sustainability (AAA) • Vietnam • Power generation (hydro, gas, coal) • Power transmission & distribution • Rural electrification • Private participation strategy for power sector (AAA) • Indonesia • Rural electrification • Power transmission & distribution • Risk sharing framework for power generation investments (AAA)
Asia Sustainable and Alternative Energy Program • Cambodia/Lao PDR/Mongolia • Power sector financing strategies • System rehabilitation & commercialization • Rural electrification • GMS (Cam, Lao) • Heat (Mon) • Pacific Islands • Capacity building • System rehabilitation & commercialization • Rural electrification • Hydro • Middle-income • Countries • Regional energy trade • CDM operations • Knowledge broker role
Asia Sustainable and Alternative Energy Program 2. ASTAE FY08 - Implementation Highlights
Asia Sustainable and Alternative Energy Program ASTAE Supported Activities in FY08 East Asia and Pacific Energy Flagship Study Cambodia, China, Indonesia, Lao PDR, Mongolia, Philippines, Thailand, Vietnam Pacific Islands Sustainable Energy Financing Project Fiji, Marshall Islands, Papua New Guinea, Solomon Islands, Vanuatu Vietnam Renewable Energy (REDP) Rural electrification (RE2) Energy Efficiency (SEIER / DSM) China Renewables / REDP and CRESP Efficiency / EE Financing and Heat Reforms
Asia Sustainable and Alternative Energy Program Mongolia Rural electrification / Renewable Energy / Distribution / Electricity Pricing / EE in Power Sector Timor Leste Gas Seep Harvesting Project / Energy Services Delivery project Fiji / Solomon Islands Strategic Master Plan for Biomass Development Sustainable Energy Financing Support to guarantees for Energy Enterprises (SI) Cambodia / Lao PDR / Thailand / Indonesia Rural electrification / Improved Cook stoves / (Cambodia) / Sustainable Energy Polices (Thailand) Philippines Burgos Wind Farm
Asia Sustainable and Alternative Energy Program 3- ASTAE Supported Activities in FY08-FY09 Vietnam Implementation Support to DSM and REDP Projects Impact Studies of Rural Electrification / Documentary and Conference Material Mongolia Energy Efficiency Heating in the periphery of Ulan Bator Pacific Islands Wind Resources Maps for Pacific Islands PNG and Fiji Pro-Poor Sub-5W Solomon Islands Rural Electrification and Renewable Energy Solomon Islands Tina Small Hydro Tonga Renewable Energy Development China Implementation Support to CRESP and REDP Fiscal policies and sector regulations / small coal-fired power plants phase-out Support to heat reform / Tianjin Municipality
Asia Sustainable and Alternative Energy Program Indonesia Preparation Support to WB investment project Carbon Finance concept development Implementation Support GEF project / policy India Energy Efficiency in Small & Medium Enterprise, implemented by the South Asia region ESMAP Regional Block Grant Supported Activities in FY09 Regional Greater Mekong Sub-region Power Trade China Renewable Energy Targets / Assessment China Heat regulations, North East China Power Dispatch Energy Efficiency Improvement Vietnam Gas Master plan II
Asia Sustainable and Alternative Energy Program 4. Indicators 2008-2009 1- Households with New & Improved Energy Access 2- Renewable Electricity Generation 3- Energy Savings as a Result of Efficiency Improvements 4- Avoided Greenhouse Gas Emissions
Asia Sustainable and Alternative Energy Program • Proposed additional indicators: • Energy Poverty / Gender Impacts • Climate Change Adaptation indicators • Impact of regional activities
Asia Sustainable and Alternative Energy Program 5- Business Plan 2009-2012 • Sustainable energy options include: • Energy Efficiency • Renewable Energy • Non-Renewable Energy • Poverty Reduction Options Scaling-up Sustainable Energy Development Efficiency Renewable Energy Access Add Climate Change Mitigation and Energy Poverty ?
Asia Sustainable and Alternative Energy Program CROSS-SECTORAL IMPACTS ASTAE SECTORAL WORK Innovative Investment Delivery Mechanisms Access Development of Institutional and Regulatory Frameworks Energy Efficiency Renewable Energy Training and Knowledge Sharing Clean Development / Mitigation Window?
Asia Sustainable and Alternative Energy Program Innovative Investment Delivery Mechanisms Training and Knowledge Sharing Institutional and Regulatory Frameworks Vietnam: structuring on-lending funds for renewable energy development China: support to developing on-lending guidelines for energy efficiency project financing by Chinese commercial banks Pacific Islands: provision of risk guarantees to leverage private sector investment in renewable energy China: support to the development of the Chinese Renewable Energy Law Thailand: scenarios for sustainable energy policies China/North-East: support to the development of heat pricing policies Mongolia: development of electricity distribution regulations Training seminars for officials and policy makers Regional workshops Knowledge products Technical Guides Atlases Video products
Asia Sustainable and Alternative Energy Program Topics for Discussion Establish ASTAE as a Multi-Donor Trust Fund Strengthen project impact monitoring, social / economic surveys / Develop qualitative - in addition to quantitative - indicators Expand ASTAE Funds to include more Recipient Executed (investment) activities Need to maintain strong activity in China –> identify new funds Re-engage South Asia (one activity financed in India – but Bank execution only)
Asia Sustainable and Alternative Energy Program 6. Funding Status & Staffing During FY08-FY09 the largest part of ASTAE funding came from commitments by the Netherlands, representing a total allocation of US$7.4 million for calendar years 2006 to 2009. The first tranche of a funding commitment of US$ 2 million by the Swedish International Development Agency (SIDA) was received in FY07, the second in FY08. This funding expires in 2010. Additional commitments were made by the Australian Agency for International Development (Aus AID) to fund projects in Cambodia and in Laos, partly through ASTAE, partly through co-financingto set-up a Mekong Energy Fund. Proposed GON funding for 2010-2012 is focused on Renewable Energy. Further resources will be required in 2009 and beyond. New resources to cover increasing demand for ASTAE activities, in Vietnam and China in particular, and to cover needs for energy efficiency development.
Asia Sustainable and Alternative Energy Program ASTAE Manager Sector Manager EASTE ASTAE Coordinator Donor-Funded Bank Staff Sr. Budget Administrator Part-time Bank Staff Local Hire Beijing Based New Staff FY08 Local Hire Sydney Based New Staff FY08 Consultants ASTAE Management Structure TAG International Hire DC-Based New Staff FY08
Asia Sustainable and Alternative Energy Program Additional staff needs for FY10-FY12 DC based: Renewable Energy Specialist / Coordination of Recipient Executed Activities Trust Funds Specialist Communications Specialist Country based: ASTAE funded staff, Indonesia
Asia Sustainable and Alternative Energy Program ASTAE Donor Priorities FY09-FY12 Government of The Netherlands Renewable Energy Fragile states Sweden SIDA Regional Activities Vietnam, China, Indonesia (India) Aus AID Cooperation on Climate Adaptation Funds Mekong Area: Vietnam, Lao, Cambodia Indonesia Timor Leste
Asia Sustainable and Alternative Energy Program Thank you! Frederic Asseline fasseline@worldbank.org