ADB's Energy Sector Operations: Anil Terway

March 2011
ADB’s
ENERGY SECTOR
OPERATIONS
Anil Terway
Regional and Sustainable Development Department
Outline
 The Development Agenda: Strategy 2020
 ADB's Energy Policy: The Changing Context
– 2009 Energy Policy - objectives, pillars,
implementation principles
 Sector overview
– Volume, types of assistance
– Greening of energy agenda
 Programs and Approaches
 Role of RSDD
 General business opportunities
The Context:
STRATEGY 2020
 Development Agenda:
– Inclusive economic growth
– Environmentally sustainable growth (key: climate change)
– Regional integration
 Core Areas of Operation:

– Infrastructure (key: energy)
– Environment
– Regional cooperation and integration
– Financial sector development
– Education
ADB's Energy Policy:
The Changing Context
 ADB’s First Energy Policy (1981):

response to the oil crisis
 Second Energy Policy (1995):
infrastructure investment and developing
financially robust and efficient sector
operations
 Energy Policy Review (2000): reducing
poverty, increasing private sector
involvement, addressing environment
impacts, promoting regional cooperation
Context of 2009 Energy Policy
 Energy Security
– Increasing demand for energy
– Volatility in energy prices
 Climate Change
– Significance of global warming and climate change
– Need to promote low carbon emission options and
technologies
 Energy Access
– MDG targets cannot be met without modern energy
services for all
– 2.5 billion people rely on traditional biomass
– Mobilizing financing is challenging
2009 Energy Policy
Objective
 To help DMCs to provide reliable,

adequate, and affordable energy
for inclusive growth in a socially,
economically, and environmentally
sustainable way
2009 Energy Policy
Three Pillars
 Promoting energy efficiency and

renewable energy
 Maximizing access to energy for all
 Promoting energy sector reforms,
capacity building, and
governance
Principles of Policy Implementation (1)
 Prioritize and broaden support for energy efficiency
improvements and renewable energy projects
 Wide-ranging efforts to provide energy services for
inclusive growth
– Accelerate programs to extend energy services
to communities and groups
– Access to energy is essential to reducing
poverty
 Promote effective regional cooperation in the
energy sector to strengthen energy security
 Emphasize promotion of energy sector reforms,
capacity building, and governance
 Encourage private sector participation (and

public–private partnerships) to enhance
efficiency through competition, and to increase
investable resources, but not as the end
objective of reforms
 All energy sector investments will comply with
ADB safeguards policies regarding the
environment, involuntary resettlement, and
indigenous peoples
 Not to finance nuclear power generation
 Not to finance coal mine development except
for captive use by thermal power plants, and
oil field development except for marginal and
already proven oil fields
 Promote superior knowledge management
and dissemination of good practices and
lessons learned; support advocacy and
assistance to DMCs in technology transfer
and deployment
 Collaborate with a range of development

partners
 Identify specific situation in each DMC
while planning and designing
interventions, especially for Pacific DMCs
 Monitor policy implementation using
results framework
Energy Sector
 Volume of assistance to energy sector is increasing
Energy Sector Approvals, 2005-2010
(in US$ million)
Year Public Sector Non-Sovereign Grants Technical
Loans Investments Assistance
2005 636.50 487.30 30.5 15.35
2006 1,019.50 602.60 11.6 20.58
2007 1,166.39 391.02 25.4 36.34
2008 1,363.40 1,484.08 259.9 28.85
2009 1,908.01 545.82 95.3 35.01
2010 1,865.90 906.11 215.95 37.86

Types of Projects,
according to subsector classification
(2005-2009)
Energy efficiency & Energy sector Conventional energy

conservation development 11%
10% 16% Large hydro
10%
Renewable energy
17%
Energy utility
services
6%
Transmission &
distribution
27%
Pipeline
3%
The "greening" of ADB's
energy sector operations
 In a bid to accelerate low-carbon growth
and reduce greenhouse gas emissions in the
region, ADB set the following targets:
– $1 billion annual target of clean energy
investments, from 2008
– $2 billion annual target of clean energy
investments, from 2013
ADB Assistance to the Energy Sector and
Non-Energy Sector with CE Component
(in $million)
$374.30
2010 $3,013.80
$429.37
2009 $2,549.17
$57.22
2008 $3,125.22
Average 2005-2007 $63.92

$1,517.47
$111.12
2007 $1,582.83
2006 $32.11
$1,625.50
$48.50
2005 $1,152.00
$- $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00

Non-Energy Sector
Energy Sector
Renewable energy projects approved by
ADB = increase in installed RE capacity
Average 2005-2007 2008 2009 2010

Programs and Approaches
 Clean Energy
 Continue to catalyze clean energy investments using Clean Energy
Financing Partnership Facility, Climate Change Fund
 Carbon Market Initiative
 Supports the development of clean energy, energy efficiency, and
GHG abatement projects in DMCs that are eligible under the CDM
of the Kyoto Protocol
 Asia Pacific Carbon Fund and Future Carbon FundF
 Energy for All Initiative
 Target: provide energy access to 100 million people by 2015
 Asian Solar Energy Initiative
 3,000 MW of solar electricity generation and associated smart grid
projects over the next 3 years.
 Asia Accelerated Solar Energy Development Fund (AASEDF)
Programs and Approaches
 Quantum Leap in Wind Power
 Install 1.0 GW wind power over the next 5 years
 Aggregate the market for wind to lower cost of
technology and catalyze deployment in the region
 Carbon Capture and Storage
 Partnership with Global Carbon Capture Institute -
comprehensive roadmap for CCS demonstration projects
 Exchange to Transfer Clean Technologies to Asia
and the Pacific
 Establish a marketplace to support willing buyers and sellers of
low-carbon technologies
Role of RSDD
 an anchor for sector and thematic strategic directions in
key areas of ADB's operations
 a linking service to facilitate cross-fertilization of ideas
and experiences between regional departments
 a knowledge center for capturing, consolidating, storing,
and disseminating knowledge obtained through regional
operations and by following international developments
 a reference center for the region on regional and
international trends in sectors and thematic areas
 a center for developing new business areas, and
developing and implementing new business concepts
Business Opportunities
Types
 Investment projects
 Technical assistance
Areas
 Deployment of new clean energy technology
 Projects that lower the barriers to adopting clean
energy technologies
 Projects that increase access to modern forms of
clean and energy efficient energy for the poor
 Technical capacity programs for clean energy
THANK YOU
aterway@adb.org

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March 2011

 Core Areas of Operation:

 ADB’s First Energy Policy (1981):

 To help DMCs to provide reliable,

 Promoting energy efficiency and

 Encourage private sector participation (and

 Collaborate with a range of development

2005 636.50 487.30 30.5 15.35

2006 1,019.50 602.60 11.6 20.58

2007 1,166.39 391.02 25.4 36.34

2008 1,363.40 1,484.08 259.9 28.85

2009 1,908.01 545.82 95.3 35.01

2010 1,865.90 906.11 215.95 37.86

Energy efficiency & Energy sector Conventional energy

Average 2005-2007 $63.92

$- $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00

Average 2005-2007 2008 2009 2010

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