89409 The World Bank Asia Sustainable and Alternative Energy Program ASTAE Annual Status Report FY 2012 The World Bank Asia Sustainable and Alternative Energy Program (ASTAE) Annual Status Report #20 July 1, 2011 – June 30, 2012: FY2012 © 2013 The International Bank for Reconstruction and Development/The World Bank Group 1818 H Street NW Washington, D.C. 20433 All rights reserved First printing: May 2013 This document is a product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the Board of Executive Directors of the World Bank Group or the governments they represent. Photo credits: Cover photo: istockphoto; Inside front and back cover: Ashden; page i Ashden, ASTAE; page ii-iii istockphoto; page iv © Laurent Durix; vi istockphoto, Ashden, © Laurent Durix; page viii © 2007 Niyam Shrestha, Courtesy of Photoshare; page 4 istockphoto; page 16 Flickr Creative Commons; page 26 Flickr Creative Commons; page 27 Ashden; page 28 istockphoto, Ashden: page 29 Courtesy of Photoshare, Kaligandaki ghasa; page 31 Tonga Energy; page 32 Trian Hydro, istockphoto; page 33 Flickr Creative Commons, Courtesy of Photoshare; page 34 Flickr Creative Commons; page 36 Flickr Creative Commons; page 38 Son-pha Hydro; page 39 istockphoto; page 40 Flickr Creative Commons, Ashden; page 41 istockphoto; page 42 istockphoto; page 46 Flickr Creative Commons; page 48 Flickr Creative Commons; page 53 Ashden; page 54 Ashden; 68 Ashden, Flickr Creative Commons. ASTAE thanks Ashden Awards for the complimentary use of their award photos. To visit the Ashden Awards and learn more go to http:// www.ashden.org/. Design: Marti Betz Design ASTAE ANNUAL STATUS REPORT #20 Contents Acronyms, Abbreviations, and Units of Measure iii 3. ASTAE Performance Assessment— Fiscal 2012–15 Business Plan 37 Foreword v ASTAE Leverage on Bank Lending 37 Progress on 2012–15 Performance Indicators 42 ASTAE at a Glance vi 4. Outlook for FY13 and Beyond 49 Executive Summary 1 ASTAE Business Plan for Fiscal 2012–15 49 ASTAE-Supported Activities in FY12 1 Goal and Objective 49 Program Progress toward the Fiscal 2012–15 Business Strategy and Budget 51 Plan Targets 1 ASTAE’s Business Plan for Fiscal 2012–15 3 Appendixes 55 Appendix 1: ASTAE Countries at a Glance: Region Map 1. Overview of the ASTAE Program 5 and Pillar-Related Statistics 56 Why ASTAE? 5 Appendix 2: Link between ASTAE Activities, ASTAE’s Objectives and Delivery Mechanisms 6 Bank Projects, and ASTAE Indicators for Fiscal 2012–15 58 Performance and Targets 11 Appendix 3: ASTAE Donors, Resource Use, and Funding Events 60 2. ASTAE-Supported Activities during FY12: Appendix 4: ASTAE-Supported World Bank Investment ALLOCATIONS, Expenditure, and Country Projects in East Asia and Pacific and South Asia 64 Updates 17 FY12: Starting Activities under the New Business Plan 17 Description of Activities Funded in FY12, by Country 23 iii ASTAE Team and Publications in FY12 34 © Bigstock Figures, Tables Figures Table 4.3: Summary of Pledged Indicators for Business Figure 1-1: Interlinking Objective, Pillars, and Approaches 8 Plan Fiscal 2012–15 52 Figure 1-2: Management Structure 11 Appendix Table 1-1: Background Data Providing Figure 1-3: ASTAE Influence and Impacts at Different Levels 12 Context to ASTAE Pillars 56 Figure 2-1: ASTAE Resource Implementation, by Origin Appendix Table 2-1: Link between ASTAE Activities, of Funding 18 Bank Projects, and ASTAE Fiscal 2012–15 Indicators, Figure 2-2: FY12 Allocations, by ASTAE Pillar 19 as of FY12 58 Figure 2-3: FY12 Allocations, by Country 19 Appendix Table 3-1: Resource Use, World Bank and Donors, Appendix Figure 1-1: ASTAE Presence in the South Asia FY1992–2012 60 and the East Asia and Pacific Regions 55 Appendix Table 3-2: Principal ASTAE Funding Events since 2004 62 Tables Appendix Table 4-1: ASTAE-Supported World Bank Table 2-1: Major Allocations by Funding Categories, FY12 17 Investment Projects 64 Table 2-2: Detail of ASTAE Activities and Allocations by Appendix Table 4-2: Past ASTAE-Supported World Country, FY12 24 Bank Investment Projects 66 Table 3-1: Renewable Electricity Capacity Added, by Country, Fiscal 2012–15 Business Plan Period 43 Table 3-2: Cumulative Electricity Savings, by Country, Fiscal 2012–15 Business Plan Period 44 Table 3-3: Households with Access to Modern iv Energy Services, by Country, 2012–15 Business Plan Period 45 Table 3-4: CO2 Mitigated, by Country, 2012–15 Business Plan Period 46 Table 3-5: Summary of Fiscal 2012–15 Business Plan Targets Pledged and Achieved 47 Table 4.1: Indicative Operational Budget Allocation 51 Table 4.2: Indicative Operational Budget Allocation by ASTAE Pillar 51 ASTAE ANNUAL STATUS REPORT #20 Acronyms, Abbreviations, and Units of Measure ASTAE Asia Sustainable and Alternative Energy Program BETF Bank-executed trust fund Board World Bank Board of Executive Directors CHEEF China, Energy Efficiency Financing CIA Cumulative Impact Assessment CO2 Carbon dioxide CTF Clean Technology Fund EAP East Asia and Pacific Region EASIN World Bank East Asia Infrastructure Unit EIA Energy Information Administration (U.S. Department of Energy) ESCO Energy services company ESMAP Energy Sector Management Assistance Program FY Fiscal year GDP Gross domestic product GEF Global Environment Facility GWh Gigawatt-hour IBRD International Bank for Reconstruction and Development IDA International Development Association IEA International Energy Agency MDTF Multidonor trust fund MOIT (Vietnam) Ministry of Industry and Transportation MW Megawatt v PDR (Lao) People’s Democratic Republic PGE Pertamina Geothermal Energy PM Particulate matter REDP (Vietnam) Renewable Energy Development Program RETF Recipient-executed trust fund SAR South Asia Region SHS Solar home system Sida Swedish International Development Agency TAG Technical Advisory Group © ASTAE vi ASTAE ANNUAL STATUS REPORT #20 Foreword This annual report for fiscal year 2012 (FY12) celebrates This first year of ASTAE-supported activities under the the beginning of a new ASTAE business plan for fiscal ASTAE business plan for fiscal 2012–15 started with a mix 2012–15. The new business plan period marks ASTAE’s of large, medium, and small economies, all of which aspire first multidonor trust fund and welcomes the increased to promote low-carbon, green growth, and address gender participation of colleagues from the South Asia Region and other social and environmental issues whenever in ASTAE. I also wish to express my appreciation to the relevant. A recipient-executed activity was also introduced former ASTAE Program Manager, Vijay Jagannathan, who for the first time. retired from the World Bank in July 2012, for his excellent I very much look forward to working with the clients in the contributions not only to ASTAE but also to the World region, donors, and other partners to increase the value Foreword Bank. I am excited to become the new ASTAE Program added of ASTAE and deliver meaningful and sustainable Manager and to make a positive contribution in this results. highly dynamic region in partnership with ASTAE donors, Last, but not least, I wish to express my appreciation to our client countries, and other partners. the Netherlands and Sweden for their continuing generous vii The challenges ahead for ASTAE, based on experience support and to the United Kingdom for becoming a new and the characteristics of the region, are numerous. The ASTAE donor. East Asia and Pacific and South Asia regions comprise countries with widely varying levels of economic development, geographic size and remoteness, resource endowments, and cultures. The regions are vulnerable to climate change and other environmental impacts. With its strong operational focus on delivering results on the ground, I believe that ASTAE is well positioned to turn these challenges into opportunities for sustainable Charles Feinstein development and inclusive, low-carbon, green growth, devoting greater attention to regional and cross-sectoral ASTAE Program Manager cooperation, both physically and through the sharing Sector Manager, Water and Energy Unit (EASWE) of knowledge and experience. As the Millennium Sustainable Development Department Development Goals (MDGs) target year of 2015 nears, I expect ASTAE to contribute, although indirectly, to East Asia and Pacific Region providing the last boost to the MDGs, especially because The World Bank the new ASTAE business plan spans fiscal 2012–15. ASTAE At A Glance 1 renewable energy viii 2 energy EFFICIENCY 3 access to energy ASTAE ANNUAL STATUS REPORT #20 Created in 1992, the Asia Sustainable and Alternative ASTAE funds Bank-executed activities and has now funded Energy Program (ASTAE) has been instrumental in moving one recipient-executed activity, with more envisioned. the World Bank East Asia and Pacific Region portfolio Donor countries in fiscal year 2012 (FY12) are the toward sustainable energy. Embedded in a regional unit to Netherlands and Sweden, with the United Kingdom joining maximize its leverage and operational impact, the program in early FY13. Past donors comprise Australia, Canada, now covers East and South Asia client countries. Finland, Japan, Switzerland, and the United States. Executive Summary ASTAE works in close cooperation with the Energy Sector Current donors have indicated a particular interest in having Management Assistance Program (ESMAP) and other the following supplementary dimensions incorporated into World Bank Trust Funds. ASTAE activities, as feasible: The ASTAE program rests on three pillars: • Renewable energy • Climate Change Mitigation • Energy efficiency and Adaptation ix • Access to energy • Social Focus - Gender, Human Rights, Poverty ASTAE’s progress is measured by SIX impact indicators: • Regional Integration 1 Total World Bank lending and Cooperation catalyzed by ASTAE activities • Cross-Sectoral Collaboration 2 New capacity (in megawatts) and generation (in gigawatt- • Energy-Water-Food-Security Nexus hours) of renewable energy 3 Electricity savings resulting from efficiency improvements 4 Households with access to modern energy services 5 Avoided greenhouse gas emissions 6 Countries benefiting from ASTAE support x ASTAE ANNUAL STATUS REPORT #20 Executive SUMMARY ASTAE-Supported Activities in FY12 ASTAE allocated US$4,459,000 toward activities in FY12, Fiscal year 2012 (FY12) was a restart year for ASTAE. or 91 percent of its total budget this year; the remaining 9 Having closed its previous business plan in FY11 and percent of the budget covered administrative and reporting disbursed all funds available under its existing single-donor costs. Allocations reflected the proposed balance of trust funds, it set up a new multidonor trust fund (MDTF) activities suggested among all three pillars for the business that became effective in summer 2011 and was funded plan period, with a stronger emphasis on renewable energy Executive Summary during the first half of FY12. ASTAE started calling for (54 percent) and a strong showing on access to energy proposals and allocating funds to activities in fall 2011. (32 percent), and energy efficiency accounting for the remaining 14 percent. Overview of ASTAE In FY12, two-thirds of the funding was allocated to EAP ASTAE was created in 1992 as a global partnership with the remaining third to SAR. Indonesia benefited the program. Its mandate—then and now—is to scale up the most, receiving 30 percent of the allocated ASTAE funding, use of sustainable energy options in Asia to reduce energy followed by Vietnam at 10 percent. Small islands remain 1 poverty and protect the environment. Achievement of well represented, with Tonga and Maldives combining for this objective is built on promoting ASTAE’s three pillars 16 percent of funding. In addition, in conformity with donor for sustainable development: renewable energy, energy requests, no allocations were made to China or India in efficiency, and access to energy. FY12. The program has been instrumental in increasing the share With four activities, regional work represented more than of sustainable energy projects in the World Bank energy a quarter of the amount allocated, continuing its growth portfolio in Asia; it has been especially successful in the trend initiated in the 2007–11 business plan period. Support East Asia and Pacific region (EAP). Today, ASTAE operates to International Development Association countries in client countries in both EAP and the South Asia region accounted for 27 percent of allocations. (SAR), with each region defined in appendix 1. ASTAE is Details related to allocations in FY12 are provided in chapter focused on downstream and operations-oriented activities 2. that directly support and enhance World Bank lending projects related to the three ASTAE pillars. ASTAE’s objectives, history, delivery mechanism, Program Progress toward the Fiscal indicators, and targets are described in chapter 1. 2012–15 Business Plan Targets A detailed analysis of the outputs and impacts for the Overview of Allocations in FY12 2012–15 business plan period is provided in chapter 3. In FY12, ASTAE allocated US$4,459,000 to new activities ASTAE tracks a set of indicators that illustrate its impact and disbursed US$741,930. ASTAE allocated funding to 16 in supporting sustainable energy development. The activities in 9 countries and to 4 regional-level activities. The indicators were chosen to convey the predominant trend relatively low level of disbursements is explained by the within each pillar. For each new World Bank project that usual lag between allocation of funds and disbursements receives ASTAE support and is presented to the Board of that are conditional on advancement and completion of the Executive Directors, the impact indicators are accumulated activity’s tasks. The pace of disbursements is expected to throughout the business plan period to produce the pick up in the coming years. aggregated indicators summarized below. The progress presented in this annual report is very partial, from renewable sources. In FY12, the Geothermal Clean covering only the first year of a four-year business plan. Its Energy Investment Project in Indonesia was approved and unequal distribution among indicators, with some already is expected to result in the direct installation of 150 MW of exceeded and others not yet started, cannot be construed renewable energy to generate 1,208 GWh every year. This as a trend. project will achieve 40 percent of the ASTAE business plan period target for generation from renewable energy. Indicator 1: Total World Bank lending catalyzed by ASTAE activities Indicator 3: Energy efficiency – FY12 was a very active year, with five ASTAE- supported Equivalent capacity and electricity savings Bank projects approved by the Board for a total of resulting from efficiency improvements US$1,301 million. All projects but one were carried over Annual savings estimates are calculated based on direct from the 2007–11 business plan period, meaning that savings through World Bank loans. With three projects ASTAE activities took place under the previous business approved related to energy efficiency, strong progress plan but the related Bank projects were approved in FY12. under this indicator was made. Avoided capacity equivalent The following five ASTAE-supported projects were to 350 MW and direct savings of 2,820 GWh annually (35 2 approved: and 141 percent, respectively, of targets) are expected from the Pakistan Natural Gas Efficiency Project. • July 2011: Vietnam, Clean Production and Energy Efficiency Project Indicator 4: Access to energy - Households • July 2011: Indonesia, Geothermal Clean Energy with access to modern energy services Investment Project This indicator shows the lowest level of progress yet for • September 2011: China, Energy Efficiency the business plan period. Some small-scale progress Financing III Project was made with space heating in Mongolia with 175,000 • April 2012: Mongolia, Ulaanbaatar Clean Air households likely to benefit, but at a mere 3 percent of Project target. No progress has been made on electricity access. • April 2012: Pakistan, Natural Gas Efficiency Project Indicator 5: Avoided greenhouse gas FY12 also marked the return of ASTAE leverage on SAR emissions projects after a long period without much activity in the This indicator estimates the quantity of carbon dioxide region. This influence on South Asia lending is expected to (CO2) emissions that would be avoided over 20 years (the increase as more and more ASTAE activities in the region conventional lifespan of projects or equipment) through receive funding. ASTAE-supported World Bank projects. The CO2 targets have already been met in this first year of the business plan period, simply through support of the Pakistan Natural Gas Indicator 2: Renewable energy - New Efficiency Project. This abnormal impact is due to the very capacity and increased generation of high greenhouse gas coefficient of methane. The achieved renewable electricity value is estimated to be 277 million tons of CO2, or 138 By supporting projects that directly facilitate investment, percent of the target for the business plan period. ASTAE activities led to increased capacity and generation ASTAE ANNUAL STATUS REPORT #20 Indicator 6: Countries benefiting from increase the supply of and access to sustainable energy ASTAE support on a regional basis. ASTAE will devote special attention This indicator ensures that ASTAE resources are used in to the promotion of sustainable energy as part of a a balanced manner across all ASTAE countries, providing region-wide system to create collaborative impacts and equal funding opportunities to large countries (Pakistan, encourage increased efficiency. The growing importance Indonesia, and Vietnam) and to smaller countries (Pacific of the regional dimension of ASTAE’s mission is visible in Islands, Maldives). ASTAE financed activities in 9 countries the demand for ASTAE’s long-standing experience and out of the 15 targeted for the business plan period, in capability. addition to its regional activities. Low-carbon, green growth Executive Summary Promoting low-carbon, green growth calls for cross- ASTAE’s Business Plan For Fiscal sectoral work. Priority activities include ecologically and 2012–15 economically sustainable cities (which will require the ASTAE continues to evolve to accommodate the changing integration of land-use planning, transport, buildings, needs in EAP and SAR, but the basics of ASTAE’s mandate infrastructure services, and urban agriculture) along with and its pillars will stay the same. Building on lessons rural development, for which renewable energy, food learned, ASTAE has forged a new business plan for fiscal 3 security, and water management, among others, must be 2012–15. The business plan was drafted with a funding coordinated. target of US$20 million. The business plan is further detailed in chapter 4. Scaling up supply of and access to ASTAE seeks to continue its successful work in EAP and sustainable energy on a regional basis extend it in SAR. Consistent with its downstream project- Intra- and interregional activities will address specific and program-oriented focus, it added recipient-executed issues that are best handled at the supranational level. In trust fund activities to the current Bank-executed trust addition to supporting regional projects as defined under fund activities. Intervention at the national level will International Development Association guidelines, ASTAE remain the core intent, but specific attention will be paid will encourage South-South cooperation and knowledge to opportunities to scale country practices up to regional sharing, and will continue to support the regional, cross- applicability. At the same time, given the growth and border, and common (or similar) challenges faced by importance of cities and urbanization, ASTAE will also seek countries in the region. to provide support at the subnational level. It will continue to seek cross-sectoral synergies whenever relevant to the ASTAE pillars. Specific Objectives of the Third Phase of ASTAE ASTAE’s specific objective in its early days was to mainstream alternative energy into the World Bank’s lending and grants in EAP. In ASTAE’s second phase, the objective was to scale up its activities, mainly within individual countries. In this third phase, the specific objective is to promote low-carbon, green growth, and to 1 4 ASTAE ANNUAL STATUS REPORT #20 Overview of the ASTAE Program In 2010, developing countries in Asia were home to more The growing consumption of energy is not evenly than 3.4 billion people, close to half the world’s population, distributed among households across the world. Access and generated close to US$10 trillion in GDP, about 15 to and consumption of modern energies remain very percent of the global total.1 Although this population- concentrated, both among and within countries. The access wealth imbalance remains, the exceptional economic challenge might seem greatest in Africa, but the sheer growth Asia recorded during the two past decades lifted size of Asia’s population means that it cannot be ignored. Chapter 1. Overview millions of people out of poverty and confirmed the The United Nations estimates that more than half of the continent as one of the world’s major economic engines, 1.4 billion people still without access to electricity live alongside Europe and North America. in developing Asia, 400 million of them in India. Similarly, more than 70 percent of the 2.3 billion people that still rely As a consequence of this growth, fossil fuel consumption on biomass for cooking live in developing Asia. The lack of in many countries in the region has accelerated, leading to access to modern energies hinders human and economic substantial growth in the carbon dioxide (CO2) emissions development opportunities, puts often unsustainable that make up the largest share of greenhouse gases. Yet, pressure on local natural resources, and contributes to 5 hundreds of millions of people in the region still lack access local and global pollution. The human cost is real: the World to modern energy services and cannot enjoy the related Health Organization estimates that 600,000 premature health, social, and economic benefits that could improve deaths annually are related to cooking using biomass in their quality of life. East Asia alone. The gender dimension of that sobering fact should also be noted given that cooking-related indoor air Why ASTAE? pollution disproportionately affects women and children. According to the U.S. Department of Energy’s Energy These access and consumption issues have led the world Information Administration, which tracks world energy community to engage in expanding the use of renewable statistics, CO2 emissions in Asian developing countries energies while promoting more efficient use of energy from consumption of energy increased 125 percent in general, and to call for universal access to modern between 2000 and 2009—about four and a half times energies. These issues constitute the three pillars upon faster than the world average. Although other sources which ASTAE builds its development work. of greenhouse gas emissions contribute to the total, it is commonly acknowledged that the use of fossil fuel–based Brief History, Challenges, Beneficiaries, energy remains by far the largest source of emissions. and Donors With 170 percent growth in emissions during this period, ASTAE was established in 1992 by international donors in 2007 China became the world’s largest source of CO2 as a three-year pilot program with the objective of emissions, and is now well ahead of the United States. In “mainstreaming” alternative energy in the World Bank’s 2009, it emitted 7.7 billion tons—25 percent of the world’s lending and technical assistance operations in the South total. Today, although absolute greenhouse gas emissions Asia (SAR) and the East Asia and Pacific (EAP) regions. in Bangladesh, India, Indonesia, Pakistan, Thailand, and ASTAE grew out of the Financing Energy Services for Vietnam are still low, their emissions growth rates are Small Scale Energy Users Project (FINESSE), initiated much higher than the world average. in 1989 by the Energy Sector Management Assistance 1 Detailed economic and energy indicators for each country in which ASTAE is active are provided in Appendix 1. Program (ESMAP) and bilateral donors, including the U.S. commitments in fiscal year 2009 (FY09) and thereafter. Department of Energy, the Netherlands Directorate-General for International Cooperation, and the United Nations Scale-Up and Expansion Development Programme. Following a joint request from In 2002, ASTAE started a scale-up phase. In addition Asian borrowers and donor partners, the Bank acted to to continuing its mission of mainstreaming alternative implement the FINESSE recommendations by creating the energy, ASTAE expanded its reach from within the World Asia Alternative Energy Unit (ASTAE), as part of the Asia Bank to the client countries’ stakeholders themselves, Technical Department, in January 1992. and broadened its core business from alternative energy to sustainable energy by adding a third pillar—access to ASTAE’s original target was to increase the share of modern energy services—designed to address energy alternative energy in Bank lending to the power sector poverty and its impact on the environment. Scaling up also in Asia to 10 percent. This goal was achieved during the meant departing from project-to-project activities to take fiscal 1997–2000 business plan period. ASTAE’s life was a more programmatic approach at the sector and country extended by mutual agreement among the Bank and scale. During this transition, ASTAE focused primarily on donor countries. It was restructured as a program in 1998, EAP. and was merged with the East Asia Energy and Mining Development Sector Unit, while continuing to provide As ASTAE’s funding and scope expanded, measuring 6 support to South Asia. its reach and impact became more challenging, and a broad set of indicators was designed to assess progress Leverage of Bank Operations toward fulfilling its three pillars. These sustainable energy ASTAE’s original task of promoting the use of alternative indicators—access to modern energy services, increased energy encompassed energy efficiency and renewable use of renewable energy, and improved energy efficiency energy—ASTAE’s two original pillars. To ensure a strong (described later in this chapter)—track progress made operational focus, ASTAE was embedded directly into through ASTAE activities, both as a direct result of related regional operations. World Bank loans and as an indirect result of ASTAE-funded technical assistance to country stakeholders. ASTAE began its work by providing supplemental funding to forward-looking World Bank Task Team Leaders eager to FY12 and Beyond, a New Structure and Increased undertake small peripheral endeavors to address alternative Funding energy–related issues encountered during the development In 2011, ASTAE started its new four-year business plan of their projects. This often occurred through the addition that reaffirms the emphasis on mainstreaming sustainable of an alternative energy–specific component to a broader energy in the Bank’s portfolio in Asia, and consolidates the energy project. As these ASTAE-funded activities increased focus on its three pillars of activities. This new business in number and positively affected regional development plan increases funding to better cover both subregions objectives, renewable-energy and energy-efficiency of Asia, and to grow the regional dimension as well as to activities eventually became stand-alone projects instead begin recipient-executed activities. The 2012–15 business of components of projects. These stand-alone projects plan is further detailed in chapter 4. were often supported by Global Environment Facility (GEF) financing. ASTAE’s operational success led its donors to replenish the trust fund at the end of each business ASTAE’s Objectives and Delivery plan period. Alternative energy, a fringe activity when Mechanisms ASTAE was created, has evolved into one of the Bank’s ASTAE’s objective is to scale up the use of sustainable main lending themes, exceeding 40 percent of energy energy options in Asia to protect the environment and ASTAE ANNUAL STATUS REPORT #20 reduce energy poverty. Three pillars further define and often at a fraction of the cost. In the past decade some support this objective. countries, such as China, Vietnam, Lao PDR, and Pakistan, have made dramatic progress in providing electricity access Three Pillars to Support Sustainable to their citizens, but others lag far behind. Additionally, Development most countries in the region have inadequately tackled ASTAE efforts to champion sustainable development in the the negative impacts of traditional domestic heating fuels, Asian energy sector are built on three pillars whether for cooking or space heating, and have been slow to devise strategies to transition households to modern First Pillar: Renewable Energy fuels or to improve the efficiency and cleanliness of Chapter 1. Overview Supporting energy generation growth by means of traditional fuels. renewable-energy technologies slows the depletion of To track the contributions and achievements of ASTAE- natural resources, limits global environmental damage, and funded activities relative to each pillar, pillar-specific can contribute to the substitution of domestic resources indicators have been defined (detailed later in this chapter). for imported ones. Renewable energy resources include These indicators help monitor annual progress toward hydroelectric, biomass, wind, geothermal, and solar energy. specific targets defined for each business plan period. Several countries in the region have set ambitious targets Over time, ASTAE has expanded its monitoring beyond 7 for renewable-energy generation, but much remains to be input-based indicators (linking ASTAE funding to World done to reach these targets. Bank lending) to include output-based indicators (final Second Pillar: Energy Efficiency impacts delivered through ASTAE’s lending, measured in Given that most energy today is generated from finite megawatts, gigawatt-hours, or number of connections). fossil fuels, using less energy to reach the same desired outcome is an effective way to contribute to sustainable Mode of Operation: Approaches, Support development. Energy intensity per unit of GDP is high in Mechanisms, and Structure most Asian countries, indicating that room for efficiency Close Collaboration with Donors improvement is present in all sectors of the economy. The key to ASTAE’s success is its dual partnership model— Energy-efficiency improvements can be achieved through partnering with World Bank task teams to undertake electricity generation, energy demand management, the operational aspects of its activities and partnering central heating, or individual stove use. Efficiency in the with its donors to determine and fund its strategic goals. energy sector is the primary target of this pillar, but ASTAE The resulting synergy allows all parties to explore and also reaches across sectors to promote this agenda, having seize opportunities to realize ASTAE’s mission. Donor worked in the water, buildings, and transport sectors. countries, including the Netherlands, Sweden, Canada, Finland, Switzerland, the United Kingdom, and the United Third Pillar: Access to Modern Energy Services States, have over the years endowed ASTAE with block Access encompasses new access (for example, connecting grant funding that advances the agreed-upon themes a previously un-electrified household) and improved and targets. In turn, ASTAE provides Task Team Leaders access (for example, construction of a biogas stove to with resources that are then used to support important replace charcoal for cooking). Access to modern energy activities in a timely and flexible way, and ultimately help can significantly improve the quality of life for end users, demonstrate the validity and feasibility of integrating providing benefits such as light, heat, and power for sustainable energy into the Bank’s project portfolio. electrical appliances and tools in a much more efficient Because ASTAE management is located in the regional and less polluting fashion than the displaced resources, operational unit, decisions about which proposed activities to be funded fully reflect the country or regional assistance avenues, although the complexities of fund allocation and strategy and the priorities of the country or regional recipient designation for each financing option make finding assistance program, while at the same time aligning with the right channel a challenge. ASTAE seeks to provide donors’ overarching priorities. practical and operational solutions to obstacles created by lack of awareness, institutional blockages, or inadequate The ASTAE Trust Fund covers only a small portion of the delivery mechanisms. costs of project preparation or technical assistance to client countries. However, the strategic use of these funds enables a far greater impact than otherwise would Figure 1-1: Interlinking Objective, Pillars, and be possible through its influence on which projects enter Approaches the World Bank pipeline and on the dissemination of ASTAE OBJECTIVE: operational experience. ASTAE also cooperates with other To scale up the use of sustainable energy solutions World Bank donor trust funds to ensure optimal use of in Asia to protect the environment and reduce poverty. donor funding. 3 Pillars Renewable Energy Access to Energy Efficiency Energy Organized to Deliver 3 Existing Approaches Support Innovative Financing ASTAE’s overall strategy is to focus on supporting program and Delivery Mechanisms 8 development and project implementation in World Bank Improve Policy and operations, that is, “downstream” activities. The emphasis Regulatory Frameworks on downstream activities reinforces the effectiveness Build Capacity and Share Knowledge of ASTAE’s three pillars of sustainable development and Additional Approach provides the most efficient way to achieve substantive Promote Regional and results. Cross-Sector Collaboration Four approaches—innovative investment delivery mechanisms, improved policy and regulatory frameworks, effective knowledge sharing, and the newly added The connections among the ASTAE objective, the three support to cross-sector and regional collaboration— pillars, and the four approaches are shown in figure 1-1. characterize ASTAE’s implementation of its overall strategy. The approaches described below are derived from previous ASTAE provides a wide range of support mechanisms, business plans with the addition of one new approach. such as early program and project identification work, Support Innovative Financing and Delivery Mechanisms quick response and troubleshooting, project-related ASTAE helps introduce innovative financing and delivery capacity building, and funds mobilization. These support mechanisms. Financing was a major part of ASTAE’s work mechanisms are provided by ASTAE staff and World Bank during its initial years because mechanisms designed for Task Team Leaders. Their constant interaction forms the conventional energy investments did not fit the needs backbone of ASTAE’s operational structure. Other important of ASTAE’s intervention areas and had to be adapted. As elements of the structure include the Consultative Group sustainable energy projects became more mainstream, on World Bank Energy Trust Funds, representing donor related markets matured and projects became more countries, and a Technical Advisory Group that evaluates complex and sophisticated. This approach is carried out ASTAE activities annually and reports to the donor either by supporting the design, buildup, and testing of new community represented by the Consultative Group. financing mechanisms from the start, or by introducing ASTAE Approaches existing mechanisms and tailoring them to the specific Financing for sustainable energy is available through many context of a new host country. ASTAE ANNUAL STATUS REPORT #20 Recent examples of improved financing delivery mechanisms sharing goes beyond normal project-related expectations. include developing investment prospectuses for private Recent knowledge-sharing work includes training sector investment (assisting the green-diesel-based grid seminars for officials and policy makers (Bangladesh, in Indonesia), structuring on-lending of funds (renewable Indonesia, Mongolia, and Thailand); knowledge products energy in Vietnam), and transferring business models (fundamentals of energy road map for small islands), between neighboring countries (energy efficiency from technical guides (greenhouse gas mitigation in road China to Vietnam). Delivery mechanisms can also apply construction), methodologies (satellite imagery for to organizational, technical, and business models that can monitoring of rural electrification), and atlases made facilitate the development or scale-up of an activity (pro- available nationally and internationally; dialogue facilitation Chapter 1. Overview poor, design-driven innovation in clean energy in Indonesia). with the nongovernmental organization community; and Improve Policy and Regulatory Frameworks donor coordination. ASTAE supports the development of institutional and Promote Cross-Sector and Regional Collaboration regulatory frameworks. Allocations to this approach have Intra- and interregional activities will continue to address grown steadily since initiation of the scale-up phase, specific issues that are best handled at the supranational because framework development benefits programmatic level. In addition to supporting regional projects as schemes that have the potential for wider applicability. 9 defined under International Development Association Institutional and regulatory framework development (IDA) guidelines, (which, among other conditions, primarily supports projects with impacts that are replicable, require involving three or more countries and require scalable, and sustainable. ASTAE provides an enabling that the benefits, either economic or social, spill over environment through improved policy, financial, and country boundaries), ASTAE will encourage South-South regulatory frameworks, which help attract capital from cooperation and knowledge sharing, and continue to international financial institutions, export credit agencies, support the regional, cross-border, and common (or and the private sector. similar) responses to challenges faced by countries in Recent work includes high-level policy dialogue and the region. Cross-sector work is also a key dimension advisory support (clean stove initiative in Indonesia and Lao promoted by ASTAE, in part through its commitment to PDR), pricing policy and regulation (support to regulator in supporting low-carbon, green growth that requires thinking Maldives), and design and implementation of standards beyond traditional sector boundaries. Activities leading (code for third-party access in Papua New Guinea). to ecologically and economically sustainable cities (for example, integrated land-use planning, transport, building, Build Capacity and Share Knowledge other infrastructure services, and urban agriculture) as well ASTAE supports capacity building and knowledge sharing. as rural development are supported. This also includes These activities are at the core of ASTAE’s mission, creating synergy between renewable energy, food security, underpinning the success and effectiveness of the previous and water management. two approaches. As a result of its positive outcomes in project and program design, implementation, and Recent examples of regional work include the development replication, ASTAE is able to draw upon a pool of expertise of a strategy in the household sector for the South Asia and consolidate its knowledge base to provide just-in-time unit, and cross-regional cooperation on developing a means advice to other groups engaging in the same activities for using satellite imagery to monitor the advancement of across the region. The knowledge-sharing approach can rural electrification. Recent examples of cross-sector work operate as a stand-alone activity or as an integral part of include capacity building in energy through the education a project if the need for capacity building or knowledge sector in Indonesia and greenhouse gas mitigation in road construction in Vietnam. ASTAE Support Mechanisms identifying market segments) and supervision (for example, ASTAE provides depth of knowledge and flexible, just- troubleshooting unexpected regulatory barriers). ASTAE’s in-time funding to shape the design of new projects and flexibility in taking on such issues on short notice has programs for success, to help implement them, or to adapt proved indispensable in devising and delivering solutions them to rapidly evolving conditions. ASTAE’s presence in that prevent projects from being halted. most Asian countries has helped enable cross-fertilization 4. Project-Related Capacity Building among different operations, thus developing a strategic, When capacity-building needs go beyond the reasonable programmatic approach to broadening the impacts of expectations of normal project preparation or investment projects. This cross-cutting position, in turn, implementation (for example, to strengthen the capacity has helped create enabling environments in which ASTAE of new counterparts resulting from unexpected political shares best practices to improve institutional, policy, changes), ASTAE can assist with training programs, financial, and regulatory frameworks in recipient countries. workshops, consensus-building conferences, twinning, The seven support mechanisms described below are often study tours, and access to subject matter advisers. provided in conjunction with other partners, trust funds, and donors, so the activity benefits from the comparative 5. Funds Mobilization advantage of each player. ASTAE assists Task Team Leaders in mobilizing additional 10 funds by helping to clarify funding requirements for a given 1. Early Program and Project Identification Work sustainable energy project. Careful use of a relatively small Best practices and new business models for alternative amount of ASTAE support can persuade new partners to energy and access deployment are still being established; join, leveraging initial financing to magnify its impacts. ASTAE helps support the development of this global knowledge base. Renewable energy is now a feasible 6. Global Knowledge Interface technology model, but best practices for alternative energy Early barriers to projects that include sustainable energy deployment are still in the early stages. Large populations components are often lack of awareness of an alternative in Asia remain without access to electricity, indicating option or technology and lack of understanding of how the that current business models for access delivery need option can be implemented. Providing support to Task Team adjustment or improvement. Households’ needs, what Leaders or stakeholders to raise awareness is the first they can afford, and their readiness to adapt to innovative step in addressing this barrier. Such support is provided technologies may be unknown. ASTAE support to Task upstream or midstream during the project cycle—when Team Leaders and stakeholders is critical to assessing and existing expertise is made available through ASTAE’s overcoming these barriers. network of subject matter consultants—and downstream when the new information generated by the project or 2. Program and Project Development and the ASTAE activity is analyzed, monitored, and packaged Implementation Work for dissemination. ASTAE’s monitoring and evaluation of For especially complex or innovative projects and programs, project or program impacts is becoming an increasingly ASTAE can provide planned or unplanned support during important task. identification and implementation. ASTAE support is provided only when circumstances require budget or 7. Impact Monitoring and Evaluation expertise above and beyond normal project funding. ASTAE’s monitoring and evaluation of project and program impacts are increasingly necessary to ensure that new 3. Quick Response and Troubleshooting information generated by projects or ASTAE activities is ASTAE provides just-in-time response to support the urgent analyzed and packaged to be imparted to others. Its long needs of Task Team Leaders during project development experience in supporting sustainable energy projects has (for example, responding to stakeholders’ specific issues or ASTAE ANNUAL STATUS REPORT #20 positioned ASTAE to commission studies and analyses of • Donors set the agenda for the specific funding lines its past projects to capture and share lessons learned that made available to ASTAE, and as members of the Donors may be of great value to other countries. Consultative Group, help the ASTAE Program Manager guide the program. They receive support from the Technical ASTAE Structure Advisory Group, which includes specialists with expertise The ASTAE management structure, shown in figure 1-2, in each ASTAE pillar. Depending on specific trust funds’ includes both functional and hierarchical interactions. agreements, donors may provide non-objection to ASTAE Figure 1-2: Management Structure activities that require allocations above a predefined ceiling. • Task Team Leaders are World Bank staff who identify Chapter 1. Overview needs for ASTAE funds to support sustainable energy in Donors Consultative their spheres of activity and submit requests for funding. ASTAE Operational Advisers: Group Manager (EASIN- East Asia) • South Asia Energy Sector Manager • East Asia Sector Leader Each proposal is evaluated on its expected contribution to Technical Advisory Group ASTAE objectives, the availability of alternate funding, and ASTAE the novelty or complexity of the project. Once an activity is Coordinator approved, the Task Team Leader is responsible for its timely, cost-effective, and high-quality delivery. ASTAE funds are 11 Task Team Leaders ASTAE Consultants used to cover the incremental costs of developing pillar- related activities that go beyond the standard preparation Project Executing and supervision costs covered by World Bank budgets. Consultant Client of of Bank- Executed Recipient- Executed • Consultants are hired by Task Team Leaders, using Activities Activities ASTAE-allocated funds, to carry out the necessary tasks for implementation of the ASTAE activity. Consultants may Hierarchical Structure be activity based—that is, hired for a given duration to undertake activity-specific assignments for project-related Because ASTAE is embedded within the World Bank East tasks—or program based. Program-based consultants Asia and Pacific Water and Energy Unit (EASWE), the often provide more direct support to Task Team Leaders Infrastructure Sector Manager also serves as the ASTAE for project preparation and implementation, as well as Program Manager and coordinates with the South Asia support for the management of ASTAE-related activities. Energy Manager when needed. The ASTAE Coordinator Consultants can be individuals or firms. Standard Bank is a World Bank staff member who provides day-to-day procurement rules are applied to all ASTAE-funded operational and administrative supervision of the ASTAE activities. program, and supports Task Team Leaders, acts as a liaison with donors, and coordinates with local counterparts. ASTAE also employs local staff in the Bank’s partner- Performance and Targets country offices to gain better insight into country-specific ASTAE provides funding allocations to Task Team Leaders challenges and to support project implementation. A part- who have substantiated the nature of the incremental time budget administrator supports the ASTAE Coordinator activities they will undertake, the related costs, and the in monitoring financial information. expected impacts. The activities are then carried out, yielding outputs that, whenever possible, are recorded and Functional Structure formatted for knowledge sharing. In addition to tracking The efforts of three types of contributor (dotted boxes in these outputs, the progress toward ASTAE program figure 1-2) complement ASTAE’s work within its structure: objectives is measured against a set of indicators and more difficult to measure; direct attribution to one activity targets developed to reflect the objectives outlined under or player should be made cautiously. However, once a the three ASTAE pillars. The collective contribution of all decision to acknowledge ASTAE’s contribution is made, activities to reaching ASTAE targets is measured annually. some formal assessment of related impacts in the field is necessary to gauge whether funds have been used Tools for Leverage efficiently. The impacts and indicators used to inform this Budget, allocations, and outputs are the elements over assessment are derived from activities and programs which ASTAE has direct control and with which it measures that support enabling legislation, decrees, or behavior its administrative effectiveness. The smallest ring of modification of key stakeholders that could result in large- influence and impact in figure 1-3 represents this sphere. scale effects on the three ASTAE pillars. This leverage is represented by the larger ring of influence and impact in Leverage indicators and their related targets are beyond figure 1-3. ASTAE’s direct control, but within its capacity to influence. In ASTAE’s early years, leverage of World Bank operations Budget, Allocations, and Outputs was the chief indicator monitored. It was measured by ASTAE’s budget is agreed upon with donors on a now tracking the dollar amounts of World Bank loans allocated four-year basis covering a business plan period. In FY11 12 to ASTAE pillars. Measuring ASTAE’s leverage of Bank ASTAE closed its 2007–11 business plan period and in operations today consists of quantifying actual impacts in FY12 started its new business plan, which is discussed addition to lending amounts. The impact on Bank lending in chapter 3. During its business planning phase, ASTAE is considered direct, because the support to Task Team comes to an agreement with its donors on the budget Leaders in project design and implementation directly necessary to undertake its defined mission and on a set of results in improved operations and, therefore, impacts. indicators to measure its success in leveraging its funding These direct impacts are represented by the middle ring in to influence stakeholders’ commitments to the ASTAE figure 1-3. pillars. The initial budget estimated for the fiscal 2012–15 Broader leverage, at the sector level in a country, is far business plan was US$20 million, a significant increase from its fiscal 2007–11 budget of US$9.9 million. Figure 1-3: ASTAE Influence and Impacts at Different Levels ASTAE allocations are provided to Task Team Leaders based on the merits of their proposals to undertake activities supporting ASTAE’s pillars. Activity duration varies according to the nature and complexity of the tasks involved, but most are completed in one or two years. In the 2007–11 business plan period, ASTAE allocated an Country Leverage All Stakeholders average of US$120,000 to each of 68 activities, with most (SECTOR INVESTMENTS, INDIRECT INDICATORS) allocations ranging between US$100,000 and US$250,000. Although the fiscal 2012–15 business plan is still in its early stages, the allocations in FY12 have increased significantly, to an average of US$300,000 per activity. World Bank Leverage (PROJECT INVESTMENTS, DIRECT INDICATORS) ASTAE activities deliver outputs in a variety of formats, depending on the audience targeted. Outputs vary ASTAE from stakeholder-specific notes (confidential policy (ALLOCATIONS, OUTPUTS) notes, country strategies, or draft standards and labels, ASTAE ANNUAL STATUS REPORT #20 for instance), to broad public case making (population World Bank lending totaling US$3,200 million. awareness and project information). Outputs are discussed at stakeholder meetings, workshops, and conferences, and Indicator 2: New capacity and increased whenever suitable, are also published, printed, and widely generation of renewable electricity distributed to a broad audience, including through ASTAE’s The second indicator measures the contribution of ASTAE website. activities to the increasing use of renewable energy in client countries. New renewable-energy generation Indicators and Targets capacity is expressed both in installed capacity, to reflect the actual investments made, and in actual energy Six indicators track the impacts of ASTAE-supported Chapter 1. Overview generated, expressed in gigawatt-hours (GWh), to reflect activities on advancing the development of sustainable use of the installed capacity. The relationship between a energy. Three indicators are related specifically to the megawatt of renewable capacity installed and the GWh renewable energy, energy efficiency, and access to modern generated (and, therefore, the quantity of fossil fuel not energy services pillars; three indicators cross all pillars. used) differs from one project and one country to another ASTAE pledges to achieve specific targets for these because capacity factors and dispatch rules vary from one indicators by the end of each business plan period. Target technology or country to another. achievement is measured both as a direct result of related 13 More specifically, this indicator integrates two sub- World Bank loans, and as indirect impacts of World Bank indicators: (a) new installed capacity in renewable energy and ASTAE technical assistance to stakeholders in client (in megawatts, all technologies included); and (b) estimated countries. annual quantity of electricity generated by the added Most activities contribute to the indicators’ targets. renewable-energy capacity (in GWh). Estimated values for direct indicators are derived directly ASTAE-supported projects under the fiscal 2012–15 from World Bank project information documents, project business plan are targeted to contribute to the addition appraisal documents, and formal ASTAE proposals. of 1,500 MW of renewable energy and the generation of Because final figures can only be known years after the end 3,000 GWh annually from renewable sources. of a project, initial values are estimates. Indirect impacts are also collected whenever possible, but because they Indicator 3: Electricity savings resulting from are difficult to attribute, ASTAE does not pledge or target efficiency improvements numbers for indirect impacts. The contributions of ASTAE activities to saving energy through efficiency improvements are also measured. Indicator 1: Total World Bank lending catalyzed by Energy-efficiency improvements can reduce peak load ASTAE activities demand (and thus reduce or defer investments) and The first indicator measures the number of Bank projects decrease energy consumption (less fuel used for an that were influenced by ASTAE activities and the related equivalent level of services or output provided). The lending amounts. When these lending amounts are electricity and heat-generation sectors recorded the most compared with the ASTAE disbursements made in a energy savings. A transformation coefficient is used to given period, the resulting number illustrates the leverage convert all savings, including of heat, into equivalent GWh that donor funding had on Bank lending. This leverage of electricity. Efficiency improvements resulting in avoided can be seen as a good indicator of ASTAE funding’s reach capacity can provide relief to a constrained system, but a into Bank operations, thus providing a certain measure of given MW of avoided capacity can result in various levels ASTAE influence in channeling funds toward sustainable of energy savings, depending on the type of fuel used and energy. The fiscal 2012–15 business plan aims to catalyze country conditions. More specifically, this indicator integrates two sub- spans the previous three pillar-specific indicators. Use indicators: (a) avoided energy-production capacity (in of renewable energy and implementation of energy- megawatts) resulting from efficiency improvements; and efficiency measures directly decrease greenhouse gas (b) estimated annual equivalent quantity of electricity (in emissions. Access to modern energy services has a more gigawatt-hours) saved by energy-efficiency measures. complex effect. In increasing access, some renewable fuels (wood, for example) may be displaced by fossil The fiscal 2012–15 business plan targets that ASTAE- fuels, thus increasing emissions, but at the same time supported projects will contribute to avoiding 1,000 MW of increasing caloric efficiency or improved sustainability of new capacity and energy savings equivalent to 3,000 GWh resources (less deforestation, for instance). The two effects of electricity. may offset one another. Because of that uncertainty, the Indicator 4: Households with access to modern indicator for avoided greenhouse gas emissions is based energy services primarily on the indicators for pillars 2 and 3. Impacts The fourth indicator measures the improvement in quality measured by this indicator, as well as the energy-efficiency- of life as households transition from traditional fuels related indicator, are often achieved through cross-sector (such as charcoal, wood, and dung) or inadequate modern work, such as when ASTAE funds projects in the water or fuels (such as kerosene for lighting) to modern, clean, transport sectors. 14 and sustainable energy sources. When switching fuels More specifically, this indicator estimates the quantity of is not possible or desirable, the indicator measures the CO2 emissions avoided over 20 years (the conventional improvement in delivery of energy services resulting lifespan of projects or equipment) through renewable- from the project, such as improved quality or reliability of energy generation and energy savings registered under an electricity connection (for example, fewer blackouts indicators 2 and 3. In the fiscal 2012–15 business plan, and brownouts) or improved efficiency of a given activity targets are set so that ASTAE-supported projects will (for example, using improved stoves to decrease wood contribute to emissions avoidance over 20 years of 200 consumption). Given their different nature and impacts, million tons of CO2. new access to electricity and improved access are tracked separately, as is access to efficient stoves. Indicator 6: Countries benefiting from ASTAE More specifically, this indicator comprises three sub- support An indicator for equitable support was added because indicators: (a) the number of households receiving new the five indicators above can be met most simply by access to electricity, (b) the number of households concentrating ASTAE interventions in larger countries. receiving improved electricity, and (c) the number of However, ignoring small countries is inequitable and households receiving improved access to efficient stoves prevents regional cooperation and sustainable development for heating and cooking. in the region as a whole. In addition, in some countries In the fiscal 2012–15 business plan, targets are set so that small-scale project operations rather than broader national ASTAE-supported projects will contribute to (a) 2 million policy programs are still the norm. Although such projects households receiving new access to electricity, (b) 1 million may not add much quantitatively to the first five indicators, households receiving improved access to electricity, and (c) they have large impacts on the quality of life of local 5 million households receiving improved access to efficient populations. stoves for heating and cooking. The requirement for this indicator in the fiscal 2012–15 Indicator 5: Avoided greenhouse gas emissions business plan is that a minimum of 15 countries receive The indicator for avoided greenhouse gas emissions ASTAE support. ASTAE ANNUAL STATUS REPORT #20 Chapter 1. Overview 15 2 16 ASTAE ANNUAL STATUS REPORT #20 ASTAE-Supported Activities during FY12: Allocations, ExpenditureS, and Country Updates FY12: Starting Activities under the New Chapter 2. ASTAE-Supported Activites Allocations and Initial Disbursements Business Plan In FY12, ASTAE allocated funding to 16 activities in 9 countries At the beginning of FY12, on July 11, 2011, the new and to 4 regional-level activities. ASTAE multidonor trust fund (MDTF) became effective Consistent with the agreement with its donors, ASTAE and replaced single donor trust funds used in the past. funds are primarily allocated to support activities, with the This MDTF provides the implementing tool for the fiscal remainder used for administrative and reporting purposes 2012–15 business plan (see chapter 3) that was prepared by (table 2-1). the ASTAE team in collaboration with the Technical Advisory Group (TAG) and donors interested in providing funding. The Table 2-1: fiscal 2012–15 business plan was presented at the ASTAE Major Allocations by Funding session of the 2011 Donors Consultative Group meeting. Categories, FY12 In FY12, the ASTAE MDTF was endowed by two donors for a total of US$10,905,625: Amounts 17 • Allocation category (US$) Percent The Government of the Netherlands, with a deposit of Activity-related funding US$8,000,000 • The Swedish International Development Agency (Sida) • Country-specific allocations 3,169,000 65 with a deposit of US$2,905,625 • Regional activities, knowledge 1,290,000 26 sharing The Department for International Development of the United Kingdom also joined in FY13. Administration • Fund Administration and 343,000 7 Overview of Allocations and Disburse- reporting ments • Central administration 98,000 2 With its MDTF in place in summer 2011 and funding Total 4,900,00 100 received during the first half of FY12, ASTAE started calling for proposals and allocating funds to activities in fall 2011. In FY12, ASTAE allocated US$4,459,000 to new activities Given that FY12 marks the start of a funding cycle, the and disbursed US$741,930. Allocation levels are as focus of this report is on allocations, which illustrate the targeted for FY12 in the business plan, allowing for a trend and direction of work undertaken using ASTAE funds. rapid ramp-up of activities. The relatively low levels of In accordance with the administration agreement, ASTAE disbursements are explained by the shortened window allocated 91 percent of its funding in FY12 to in-country or for activity in FY12 and the usual lag between allocation regional activities, for a total of US$4,459,000. The next of funds and disbursements that are conditional on section explains these country and regional allocations and advancement and completion of the activity’s tasks. the related initial disbursements in further detail. However, with close to US$4.5 million allocated to activities With only US$960,043 disbursed, and disbursements in FY12, the pace of disbursements is expected to pick up differing significantly from allocations, FY12 is not a in the coming years. representative year, for multiple reasons. First, the one-time central administrative fee of 2 percent is Figure 2-1: ASTAE Resource Implementation, withdrawn by World Bank central services at receipt of by Origin of Funding the donor contribution, and is not based on disbursement levels. The high level of endowment received in FY12 7 mechanically led to a US$218,118 central services fee 6 World Bank contribution (of which only US$98,000 can be allocated to FY12) that 5 Donor funding inflates the FY12 central administrative costs. Second, 4 MILLION with US$232,292 in FY12, ASTAE internal administration 3 and reporting costs might appear high compared with total 2 disbursements but these expenses remain within with the 1 7 percent agreement when compared with allocations to 0 activities (7 percent of US$4.9 million is US$343,000). It FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 is expected that in the coming years, disbursements will increase significantly and will better reflect the share and and both numbers are expected to increase significantly in amounts allocated to activities. the next few years. 18 ASTAE Budget-Related Leverage Since its inception, ASTAE leverage has resulted in When ASTAE funds activities, the World Bank Group also doubling, to more than US$68 million, the budget for contributes from its various budgetary sources to help identification, development, and supervision allocated carry out project tasks. This fund matching demonstrates to sustainable energy by the World Bank in Asia. This the budget-related leverage that donor funding exercises in successful leveraging highlights the value of donor influencing World Bank projects. funding that enables World Bank task teams to undertake challenging activities for which Bank budgets are normally Here again, FY12 is an atypical year, similar to FY04 or very limited, but that are nonetheless necessary for FY07 when the World Bank self-funded a significant portion identifying and preparing future sustainable energy projects of the project-related activities at the start of new business or to troubleshoot problems in ongoing projects. plan periods. The US$960,043 disbursed from the donor trust fund was complemented by US$1,034,339 from the World Bank, or 48 percent and 52 percent, respectively, Distribution of Activity-Specific Allocations of the total US$1,994,382 allocated to developing ASTAE allocated US$4,459,000 to activity implementation sustainable energy as a result of ASTAE-related activities. in FY12. This section focuses on the activity-related portion The respective World Bank and donor contributions since of allocations; it does not include administrative and ASTAE’s inception are provided in appendix table 3.1. reporting costs. To provide an analysis of the use of donor funds, ASTAE’s activity-related allocations are broken down As shown in figure 2-1 and detailed in appendix table 3.1, according to the key funding allocation metrics agreed upon both the absolute value of resource mobilization and the in the business plan. These metrics are ASTAE pillars (figure ratio of World Bank–to-donor contributions vary over the 2-2); ASTAE countries (figure 2-3); type of execution; and years. Changes in the pattern of donor contributions and supplementary themes such as cross-sector application, variation in the number of sustainable energy projects in gender relevance, or early support to project development. the World Bank lending pipeline or under implementation cause these fluctuations. FY12 shows a drop in total Activity-Related Allocations, by Pillar resource implementation, as well as in the ratio of the In figure 2-2, the outer ring represents the amount donor share. This change is due to the new funding cycle, allocated; the inner ring represents the number of ASTAE ASTAE ANNUAL STATUS REPORT #20 activities related to an intervention pillar. An ASTAE activity Activity-Related Allocations, by Country can relate to several pillars, therefore, the sum of activities In FY12, two-thirds of the funding was allocated to the East in the inner ring among all pillars may exceed the total Asia and Pacific region (EAP) with the remaining third to number of activities supported by ASTAE. However, in the South Asia region (SAR). The map in appendix 1 shows Chapter 2. ASTAE-Supported Activites this report, to avoid double counting of fund allocations, which countries are covered by these World Bank–defined allocation amounts in U.S. dollars are allocated among regions. The ratio of activities was nearly equal with a pillars based on the activity task team estimate of the 55–45 split between EAP and SAR. The funding disparity percentage of the work applicable to each pillar. reflects caution on the part of the ASTAE team, given that FY12 donors did not have SAR as their core focus. In addition, the use of ASTAE funds was a relatively new Figure 2-2: FY12 Allocations, by ASTAE Pillar idea to the South Asia team, which called less frequently on ASTAE funds and also called for smaller amounts, $1,413,500 $2,415,500 32% as reflected in figure 2.3. This is expected to change in 54% Access to Energy FY13 with the upcoming availability of UK Department for Energy Efficiency international Development funding that embraces SAR. Renewable Energy 12; 44% 10; 37% Inner Circle: Number of Activities Outer Circle: Amounts Allocated 19 5; 19% Figure 2-3: FY12 Allocations, by Country $630,000 Tonga; Vietnam; $400,000 14% $450,000 9% 10% Maldives; $300,000 7% Nepal; $220,000 ; 5% Regional; Other; ASTAE allocations in FY12 by pillar (figure 2-2) reflect the $1,190,000 $ 774,000 Bangladesh; $205,000 ; 5% 27% 23% higher allocations to renewable-energy-related activities, Papua New Guinea; $180,000 ; 4% with 54 percent of the total funds and 12 activities. This Pakistan; $100,000 ; 2% Mongolia; $69,000 ; 1% is in line with the business plan target to allocate half of the funding to the development of renewable energy. Indonesia; $1,345,000 30% Access to energy is the second area of focus, with close to one-third of funding. Allocations to energy efficiency were below the planned amount. It should be noted that 10 out of 16 activities combine several pillars, with the The average amount allocated to activities has increased combination of energy access and renewable energy being significantly from previous practice, to close to the most frequent combination. US$300,000 from an average of US$120,000. This reflects With regard to country distribution of work by pillar, the increasing complexity of ASTAE-supported activities activities or components relating to renewable energy were as well as the related growing trend toward multiyear present in every country covered in FY12, and energy- implementation. efficiency-related activities were developed in only three With four activities, regional work represented more than countries. Access-related activities stand in between, a quarter of the amount allocated, continuing its growth being the focus or a component of ASTAE activities in six trend initiated in past business plans. Indonesia benefited countries. the most from ASTAE funding, in part as a result of the higher number of funding requests (three) and subsequent support that few other programs can. This would not have activities illustrating a dynamic portfolio. Small islands been possible under Bank execution and may significantly remain well represented, with Tonga and Maldives increase the likelihood of better deployment of renewable combining for 16 percent of funding. energy in the country. With US$1,205,000 and 27 percent of allocations, support However, recipient execution is expected to remain a to International Development Association (IDA) countries small portion of ASTAE funding because transaction costs remains below the targeted 40 percent of funds, in part as are high for the relatively small grants that ASTAE can a result of the high levels of regional work (IDA countries provide. Requirements related to procurement, financial represent 38 percent of allocations if only country- management, or environmental and social safeguards, as specific allocations are taken into account). In addition, in well as the significant Bank supervision that these activities conformity with donor requests, no allocation to China require, will limit the use of such recipient-executed was made in FY12, nor to India except as a minor share of activities to a narrow range of cases for which the gains regional work in SAR. from improved client engagement supersede these costs. Activity-Related Allocations and Type of Execution Activities that Contribute to The fiscal 2012–15 business plan adds a new mode of Supplementary Themes 20 execution for ASTAE activities by allowing for recipient The fiscal 2012–15 business plan formalizes the execution in addition to the standard Bank execution, with contribution to supplementary themes that are now a target of about 15 percent of allocations to be recipient implemented and tracked by ASTAE in addition to its executed. regular indicators. These supplementary themes relate In FY12, the first recipient-executed activity was initiated to the support to and implementation of work that (a) in Tonga, with a budget of US$400,000 or 9 percent of facilitates cross-sector interactions, (b) contributes to the allocations. To minimize transaction costs and ensure integration of the energy-water-food-security nexus, (c) smooth disbursements, this activity will be jointly enhances gender awareness and inclusion in projects, and implemented with a larger US$2.5 million recipient- (d) leverages private sector involvement. executed grant provided by the Australian Agency for Working on and including these supplementary themes International Development (AusAID). The ASTAE-funded is sometimes complex under regular Bank operations, portion focuses on providing technical assistance to and teams that have to focus on time-bound and energy- strengthen the recipient’s implementation capacity. related outputs and impacts have difficulty finding the Adding recipient execution increases the flexibility of time and resources to explore alternative ways to deliver ASTAE support to client countries. For example, in Tonga, beyond their core stakeholders, even when they are ASTAE was initially requested to co-finance US$300,000 interested in trying new approaches. Thus, building on to complement an AusAID grant. However, during the a method that has proved successful in mainstreaming negotiations for this project, the government of Tonga alternative energies, ASTAE will provide funding that can requested that the Bank finance a study to determine be used to add a component or a study related to these the technical and financial feasibility of installing a tidal supplementary themes that will better inform a project. power system in Vava’u to provide a substantial portion of Alternatively, funding can also be used to test a new idea the electricity for the island. ASTAE was able to provide or methodology that does not yet have a project application additional financing of US$100,000 within one day through but that may be mainstreamed later. The latter option efficient communications between Tonga and Washington, provides a chance for teams to take a risk that would not DC, an example of how ASTAE can provide “just-in-time” be possible under tight Bank budgets but that could provide ASTAE ANNUAL STATUS REPORT #20 high rewards in future Bank operations. to other sector teams in the future. ASTAE allocated $450,000 to an activity that enables the Facilitate Cross-Sector Interactions energy sector in Vietnam to better analyze the impacts In FY12, ASTAE funded two cross-sector activities with Chapter 2. ASTAE-Supported Activites of hydro projects on related water, agriculture, and other a combined total allocation of US$800,000. Cross-sector stakeholders. The Cumulative Impact Assessment (CIA) activities are usually activities that relate in one manner activity on small hydropower projects in Vietnam will or another to energy but are handled, supervised, and review all existing or reasonably foreseeable investments, implemented by teams from other sectors or units than the facilities, or activities (“stressors”) under the Renewable energy sector. Energy Development Project that have impacts on the The first activity supported an initiative by the education river flow regime or its water quality in six rivers and will sector that examined the development of innovative conduct a risk ranking of additional cumulative impacts. models to enhance access to renewable energy at the The team will identify the potential receptors of negative grass-roots level rather than through large-scale centralized impacts from the operation of the stressors in the six rivers initiatives. This initiative in Indonesia pilot tested technical considered. This review will include all Valued Ecosystem and business support to small entrepreneurs in clean Components (VECs) that could be significantly adversely energy from the angle of working-adult-focused continuing (or positively) affected. In the project context, VECs 21 education. would be mainly those most vulnerable to hydrological or The second activity supported the continuation of previous water quality changes that affect the flow regime, aquatic work aiming at mitigating greenhouse gas emissions in the and riverine ecosystems, and economic activities and transport sector during construction of highways. Using livelihoods depending on water from the six rivers (for previous ASTAE funding, a toolkit had been produced that example, fisheries, irrigated agriculture). The nature of the helped road construction teams evaluate the different impacts will be described and their scale assessed in a levels of emissions according to different construction qualitative manner. methods. The new funding will enable the toolkit to be River stretches with a combination of VEC and significant field tested in a specific road project in Vietnam to extend effects on either flow regime or water quality will be its use beyond construction to include the service phase evaluated for environmental and social impacts. The use in operations and maintenance, thereby getting closer to a of the river and the aquatic life for ecosystem services and real life-cycle analysis. economic dependency on the rivers by local communities This attention to cross-sector collaboration will continue, will be assessed, including through consultations. and is likely to be extended in the coming years to other Based on the results of the detailed CIA and tests of sectors, such as water or agriculture, with its focus on the mitigation measures, operational rules for each major energy-related dimension of cross-sector work. hydraulic infrastructure scheme will be formulated Energy-Water-Food-Security Nexus to ensure joint use of water resources among key ASTAE will fund activities that enhance the understanding stakeholders, including but not limited to energy, water, and integration of the energy-water-food-security nexus in and agriculture users. The main objective of the proposed Bank programs. Activities under this nexus can be handled operational rules will be to optimize joint management of by energy teams or by teams from other sectors, in which the basin. Existing schemes and agreed-on rules will be case they are also considered to be cross-sector. In FY12, taken into account as much as possible to enable applicable engagement related to this nexus was undertaken with the rules and wide ownership. Vietnam energy team, and efforts will be made to reach out Enhance Gender Awareness and Inclusion in disseminated in Indonesia and globally. The toolkit will Projects include special focus sections on gender issues in human- Systematic engagement with the social teams in EAP was centered design. begun in FY12, with a contribution to the region’s gender Leverage Private Sector Involvement action plan that led to specific gender-related activities The impact of ASTAE-funded activities on private sector in the following fiscal year. In FY12, one activity, with a development and involvement is only partially captured budget of $500,000 had significant gender and pro-poor by the current monitoring system, which focuses on dimensions. leverage of Bank projects that, by definition, are primarily The education sector–led activity targeting innovation implemented with and often by the government or its capacity in clean energy in Indonesia will address gender state-owned utilities. During its lifetime, ASTAE-supported issues in the use of energy-related products and services Bank projects have registered contributions of about by integrating a gender-sensitive approach into both the US$1.2 billion from the private sector; or about 22 percent needs identification (demand) and the design-related of the total US$5.2 billion leveraged, an amount roughly response (supply) phases. Many products and services equivalent to that provided by the governments. However, that are currently in use in rural communities in Indonesia as can be seen in appendix table 4.1, this contribution 22 (and in other developing countries), or are marketed mainly came from large-scale projects in China; therefore, by businesses and nongovernmental organizations, do with ASTAE’s withdrawal of involvement in China, this not consider gender-specific issues. In many cases, leverage of the private sector is likely to greatly diminish. energy products and services are designed with a limited In fact, private sector involvement is expected to be higher understanding of the actual and cultural-specific needs of in middle-income countries with opening markets than in the women who will be using them. All-male research and IDA countries that often do not have the right frameworks design teams often develop only a limited understanding of and policies in place and constitute riskier markets. ASTAE needs as a result of communication barriers with women. will increase its attention to better tracking of the impact of The program will address gender issues by targeting upcoming activities and projects in a qualitative fashion, in energy-related challenges for which women are the lead addition to the hard investment numbers. However, these users. One example being addressed by the program is qualitative appraisals will be undertaken guardedly, given biomass cookstoves for home industries. The program will ” in the that past attempts to measure “indirect leverage, also address these gender issues by including women in absence of a clear metric or methodology, were at times the design team (which will also promote the development impossible to substantiate. of women as green energy design professionals), by Under the fiscal 2012–15 business plan, two qualitative researching the specific needs of women during the examples of ASTAE-financed activity with high potential research stage, by involving women in the co-creation for private sector leverage can be provided. The first is process, by testing market solutions with women, and current ASTAE support to the development of a third-party by assessing the impact of specific market solutions on access code in Papua New Guinea to attract private sector gender issues. Finally, the program will address gender investment and independent power producers in a more issues by targeting support to women entrepreneurs efficient manner. Access to electricity in Papua New Guinea and promoting the inclusion of women in the choice of is very low, at less than 10 percent of the population, and business mentors. essentially limited to major urban areas. Some 87 percent Following the pilot work, a toolkit for pro-poor, clean- of the total population of Papua New Guinea lives in rural energy, human-centered design will be developed and areas where electricity access is scarce. Although urban ASTAE ANNUAL STATUS REPORT #20 areas have access to electricity, supply is characterized • Basic information: population and GDP as unreliable and often unaffordable. Papua New Guinea’s Electricity Industry Policy intends to address the problem • Renewable energy: capacity, generation, and market share by opening up competition in the industry so that Chapter 2. ASTAE-Supported Activites households have better access to a reliable and affordable • Energy efficiency: energy intensity in GDP and in power generation, measured by CO2 emissions supply of electricity with sufficient power generated and distributed to meet future energy requirements. The • Access: population electrified in number and rate development of the third-party access code will establish • Greenhouse gas emissions: annual CO2 emissions a framework for interested investors to access electricity and ranking. transmission and distribution networks, with the objective of introducing further competitive avenues for the supply of electricity within Papua New Guinea. The second example of private sector involvement can be found in the Indonesia Renewable Energy for Electrification project. In this project, ASTAE funding, in addition to providing technology mapping and a least-cost 23 electrification plan for the use of renewable energy, is also aiming to produce a bankable prospectus. The prospectus would be prepared to fund the financing gap through syndication and related capacity strengthening by donors and interested private sector participants. The prospectus would include detailed annexes as appropriate to make a clear, compelling, and credible case to the donors and to the private sector for filling the projected financing gap. In addition, the prospectus will identify, in sufficient detail, the implementation plan and the monitoring and evaluation and oversight mechanisms proposed to track performance, implementation progress, and results on the ground. Description of Activities Funded in FY12, by Country Table 2-2 provides an overview of the16 ASTAE activities for which funds were allocated in FY12, as well as a short description of the support mechanisms provided by ASTAE for these activities. Given the diversity of countries in SAR and EAP, a map and an at-a-glance country and context summary for each of ASTAE’s pillars are provided in appendix 1, including the following for each country: Table 2-2: Detail of ASTAE Activities and Allocations by Country, FY12 FY12 ASTAE Activity Type and details of activity ALLOCATIONS Period ToTAL $4,900,000 Bangladesh $205,000 1 Unleashing the Potential for Renewable Energy • Identify economically viable renewable energy sources for electricity $200,000 supply • Help provide an action plan to implement these sources during 2012–30 2 Showcasing Results of World Bank–Supported • Support the production of a movie highlighting the successes of $5,000 Intervention in Rural Electrification the Bank-funded Solar Home System program in Bangladesh Indonesia $1,345,000 3 Building Innovation Capacity in Clean Energy • Support the emergence of clean energy entrepreneurs $500,000 • Design an identification process that favors pro-poor and gender sensitive clean energy market solutions • Disseminate lessons learned in the process 24 4 Geothermal Power Development Program II • Assist in review, design, and consensus building for policy reforms in the $495,000 geothermal sector • Enhance government capacity to integrate Clean Development Mecha- nism in geothermal development • Assist in identifying and preparing geothermal projects to be financed by World Bank loan 5 Renewable Energy Access Improvement • Support technology mapping and least-cost electrification plan $350,000 • Prepare bankable prospectus for funding the financing gap through syndication Maldives $200,000 6 Clean Energy Development and Regulatory • Support the government for timely achievement of the Clean Energy for $ 200,000 Support Climate Mitigation project • Help design a comprehensive regulatory framework • Build the capacity of the Maldives Energy Authority Mongolia $69,000 7 Enhance Awareness of Electrification of Rural • Raise the awareness in Mongolia of the impact and benefits of the $69,000 Herders through Solar Home Systems 100,000 Solar Ger Electrification Program • Extract lessons of a successful example of applying internationally proven practices in rural electrification Nepal $220,000 8 Sustainable Hydropower Development • Build local technical capacity in hydropower on geotechnical, risk $200,000 management, and environmental issues and sediment management • Provide advisory services to the Bank-financed Rehabilitation of Kali Gandaki A Hydropower Plant PAKISTAN $100,000 9 Natural Gas Loss Reduction • Reduce the physical and commercial losses of gas in the pipeline system of $100,000 one of the country’s two gas transmission and distribution utilities ASTAE ANNUAL STATUS REPORT #20 FY12 ASTAE Activity Type and details of activity ALLOCATIONS Chapter 2. ASTAE-Supported Activites Papua New Guinea $180,000 10 Development of a Third-Party Access Code for • Assess the key elements necessary necessary for a third-party access code $180,000 the Transmission and Distribution Networks • Support the Independent Consumer and Competition Commission in de- veloping a code to facilitate third-party (potential electricity providers entry) access to the existing transmission and distribution network TONGA $400,000 11 Tonga Energy Roadmap Recipient Executed $400,000 • Provide international experts for technical advice to the Tonga Energy Road Map Implementation Unit • Undertake a feasibility study for tidal power system in Vava’u island VIETNAM $450,000 12 Cumulative Impact Assessment of Small • Screen all rivers for potential significant cumulative impacts $450,000 Hydropower Projects on River Cascades • Prepare detailed Cumulative Impact Assessment for selected rivers • Develop joint operation rules for selected river 25 REGIONAL PROJECTS, OUTREACH AND KNOWLEDGE SHARING $1,190,000 13 Greenhouse Gas Emission Mitigation in Road • Extend the existing toolkit (developed by ASTAE) to include the road $300,000 Transport: Toolkit Implementation and Life-Cycle service phase for operations and maintenance Analysis • Field test the toolkit to determine user friendliness and full-scale operation at all phases, including planning, design, and construction or rehabilitation 14 Access to Electricity Solutions in South Asia • Examine the constraining factors to access expansion in lagging states in $300,000 Region India and countries in South Asia • Support the development of the access pillar of the South Asia energy team strategy and link with the Sustainable Energy for All (SE4ALL) program 15 Develop a Household Energy Strategy in South • Develop a strategy and action plan for the World Bank’s South Asia $300,000 Asia Region Energy Unit to support client countries in promoting clean and efficient biomass cookstoves 16 Using Satellite Imagery to Monitor Progress of • Validate technology by reviewing past electrification programs $340,000 Rural Electrification • Develop a monitoring methodology for ongoing or future Bank-supported electrification programs. Administration and Reporting Activities $442,000 Fund Administration and Reporting Activities • ASTAE staff $343,000 • Administrative and business development support • Technical Advisory Group support • Printing and editing services Central Administration • Central Administration Fee $98,000 The following sections highlight ASTAE-supported activities Bangladesh: Showcasing Results in World that received allocation in fiscal 2012, as shown in table 2-2. Bank–Supported Intervention in Rural Elec- trification Bangladesh: Unleashing the Potential for This activity provided just-in-time support to the Renewable Energy Bangladesh country team to showcase the impact on the beneficiaries of the Solar Home Systems (SHS) This activity supports Bangladesh’s nascent Sustainable program in Bangladesh. The SHS program, as part of the Energy Development Agency in its effort to establish the Rural Electrification and Renewable Energy Development country’s economically feasible renewable-energy capac- Project (RERED), contributed directly to increasing access ity. Bangladesh’s renewable-energy policy (2008) aims to targets under the Bank country assistance strategy; meet 10 percent of the country’s energy demand using therefore, RERED was selected to be featured in a short renewable-energy sources. This target is ambitious given video showcasing the life stories of people that benefited that the current share of renewable energy is less than 1 from programs supported by the World Bank. The video percent of total power generation in the country. The study highlighted the gender and poverty dimensions of the SHS is helping identify economically feasible renewable-energy program. It helped document the success stories of the 26 options for electricity supply and will provide SHS program, which will, in turn, help secure an action plan for tapping this renewable- additional funding from development energy potential over the period 2012–30 partners for continuing the scale-up of in support of achieving the target. The the program to achieve the target of study is examining the potential that 2.5 million SHS by 2015. can be economically developed and The Bangladesh SHS program, will specify the activities that need which benefited from ASTAE to be undertaken to better benefit support in 2001 for market from the country’s renewable- assessment and development of energy potential. the program design, successfully provided access to electricity in remote rural areas of Bangladesh to more than a million households, far exceeding the initial target of 50,000 systems in a five-year period. ASTAE ANNUAL STATUS REPORT #20 Indonesia: Leveraging Global Knowledge The grassroots design part of the program calls for ideas Networks for Innovation Capacity in Clean for clean energy challenges to be solved by the pilot Energy program to be collected from communities, nonprofits, and government agencies. Final challenges will be selected Chapter 2. ASTAE-Supported Activites This pilot program, supported by the Green Growth by a review panel on the basis of the potential impact of Knowledge Platform of the World Bank, aims to foster addressing the challenge. Global, human-centered design the creation and growth of high-impact business ventures teams will then be paired with local partners, such as by combining (a) hands-on and advisory support to research institutions and universities, which will be hired entrepreneurs and (b) design solutions for the grassroots as consultants, and enterprises and nonprofits that are clean energy needs of low-income rural communities in ready to invest their time and efforts in the design project. Indonesia that can be implemented by the private sector. Together, they will develop and implement solutions for The advisory part of the program offers support to the selected challenges. Throughout the process, design competitively selected actual and aspiring entrepreneurs. teams will provide training on human-centered design to All support will be provided at no cost to the client. Support local partners and will work with local, national, and global includes advice on business planning, sales and marketing, private sectors to ensure diffusion of the approach at the financing and funding strategy, human resources, program’s end. financial management, accounting, taxes, 27 Throughout the program, the selection of legal and intellectual property, company female entrepreneurs will be strongly registration, product development supported and female mentors will be and marketing, operations and sought to share their gender-specific manufacturing, customer experiences in the traditionally relationship management, and male-dominated business areas. strategic partnerships. The The project aims to have at least project provides practical short- one-quarter of the screened term entrepreneurship learning entrepreneurs be female. programs to entrepreneurs through local sources and from global experts through webinars. New entrepreneurs are paired with business mentors and advisory boards drawn from the entrepreneurs’ communities as well as from other relevant global economies. These mentors and advisory boards provide Indonesian entrepreneurs with the global networks and advice from seasoned global entrepreneurs that they need to grow sustainable high-impact businesses. The program will also provide entrepreneurs with access to technical advisory services from local technology experts and from global technology experts. Indonesia: Geothermal Power Indonesia: Renewable Energy for Development Program II Electrification - Thousand Islands Solar ASTAE is providing ongoing support to help Indonesia Photovoltaic achieve the government’s ambitious target of 4,000 MW of This activity will help the government and the bilateral geothermal power capacity as a part of the government’s and multilateral lending agencies come together to Second 10,000 MW Fast-Track Program. Past ASTAE develop a workable framework for a renewable-energy support contributed to a number of achievements, approach to electrification planning. The planning will use for example, US$300 million in World Bank and Clean technology mapping to develop a least-cost electrification Technology Fund (CTF) loans (the first CTF operation in plan and a sector investment and implementation plan. East Asia) and Pertamina Geothermal Energy (PGE), a The government of Indonesia has announced its desire to leading geothermal developer, to develop about 150 MW reduce carbon emissions by 26 percent by 2020. To achieve of geothermal capacity (about a 10 percent increase in this objective, the government is exploring low-carbon Indonesia’s overall capacity), as a part of the Geothermal development growth options, particularly in the energy Clean Energy Investment Project further described sector. In addition, the government has pledged to achieve in chapter 3. New ASTAE funds will provide critical close to 95 percent electricity access by 2025, from the 74 28 incremental technical assistance to consolidate and build percent in 2012. Therefore, the government has embarked upon the achievements to date that have kick-started upon a 1,000 island electrification program in an effort to development, and will help advance the geothermal improve electricity access in its Eastern Islands region development agenda in Indonesia by using primarily renewable energy technology. ASTAE to the next important phase previously supported background work to identify the with a view to longer- project scope through an up-front rapid data assessment term sustainability that assembled and reviewed of the globally key sector data and relevant unprecedented information to provide a scale-up. comprehensive and substantiated factual basis—in scope and coverage—essential to the design of the project concept by the Bank. ASTAE ANNUAL STATUS REPORT #20 Mongolia: Enhance Awareness of Nepal: Support to Sustainable Hydropower Electrification of Rural Herders through Development Solar Home Systems This activity will assist the World Bank Group’s Chapter 2. ASTAE-Supported Activites This activity through a video and other dissemination ongoing involvement in Nepal’s renewable-energy activities of the Renewable Energy and Rural Electricity sector development through lending and nonlending Access Project (REAP), will raise the awareness in activities, especially in hydropower. Only 46 percent of Mongolia of the impact and benefits of the National the population in Nepal has access to electricity, and 100,000 Solar Ger Electrification Program. The aim of increasing access to reliable electricity is one of the most the project is to provide electricity access using solar significant development challenges facing the country. home systems to 100,000 mobile herders who sparsely Although the total installed capacity is close to 700 MW, populate Mongolia’s vast rural areas. It will also inform the actual available capacity is much lower, especially in the global development community by extracting the the winter because of the precarious seasonal nature of lessons from a successful example of the application of the river flows that dictate power production in Nepal’s internationally proven practices in predominantly run-of-the-river hydropower projects. There rural electrification to fit the is only one storage project in the country (the Kulekhani unique circumstances hydropower project), and additional storage projects, both 29 in Mongolia. ASTAE for meeting the winter shortage and for export in the provided key support wet months, is much desired. The country suffers from a to REAP during its perpetual power shortage; in the worst cases, electricity initial implementation is available only a few hours per day in the winter months. period in FY2007–08. ASTAE will fund technical capacity building for planning and developing sustainable hydropower projects in the country, including technical capacity building in hydropower and advisory services to Bank- financed projects such as the Kabeli “A” hydroelectric project. Pakistan: Natural Gas Loss Reduction Papua New Guinea: Assessing the Key This activity will support the Natural Gas Efficiency Project Elements for the Development of a Third- that will enhance the supply of natural gas in Pakistan Party Access Code for the Transmission and by reducing the physical and commercial losses of gas Distribution Networks in the pipeline system of one of the country’s two gas This activity will help the Independent Consumer and transmission and distribution utilities. Losses are more Competition Commission (ICCC) develop a code to than 9 percent as compared with 1–2 percent in well-run facilitate third-party access to the existing transmission, gas networks. Indications from pilot projects are that at distribution, and retail electricity network of PNG Power least 75 percent is methane leakage to the atmosphere; to address the current reliability problem. The third-party the other large component is gas theft. The project will access code will allow other electricity service providers, bring the utility’s gas losses (unaccounted-for gas) down such as independent power producers or transmission to about 5 percent, thereby reducing methane emissions companies transporting energy from PNG Power or to the atmosphere and improving resource management, independent power producing generators, to connect making natural gas more affordable, and improving service to PNG Power’s existing transmission facilities and delivery. ASTAE will provide assistance to the project compete with PNG Power in the generation of electricity. management office of the subborrower (the gas utility) in The government of Papua New Guinea has approved an 30 the critical start-up phase of the project to ensure thorough Electricity Industry Policy (EIP). Among the key initiatives analysis of and discussions on organizational requirements under this policy is to develop the third-party access code. for successful execution; to provide advice on strategic The government of Papua New Guinea has requested that project execution matters, notably the segmentation of the the ICCC, as the economic and licensing regulator of the network into smaller units; and to support pilot projects electricity industry, develop this third-party access code in with energy-efficient consumer appliances. The consumer early 2012. appliance pilot projects are funded by the International Access to electricity in Papua New Guinea is very low, Bank for Reconstruction and Development (IBRD) and IDA, essentially limited to major urban areas, whereas 87 but scaled up with Global Environment Facility (GEF) funds, percent of the total population of Papua New Guinea and may help unleash further savings of gas resources and lives in rural areas where access to electricity is sparse. emissions. The Pakistan government’s main goal in the Although urban areas have access to electricity, its supply energy sector is to increase the affordability and availability is characterized as unreliable and often unaffordable, of energy, with a priority focus on electricity services and with limited access. The current EIP intends to address an associated focus on reducing dependence on costly oil these problems by opening up the electricity industry to imports. The project is seen as a remedy to some of the competition to facilitate the government’s policy under the problems of the sector because it aims to make more Papua New Guinea Development Strategic Plan 2010–2030 natural gas cost-effectively available for economic use, to ensure that households have better access to a reliable including for thermal power plants, while at the same time and affordable electricity supply with sufficient power to reducing emissions of greenhouse gases. meet future energy requirements. The major outcome of the ASTAE-supported activities will be a framework for third-party access to electricity transmission and distribution networks, with the objective of introducing further competitive avenues for electricity supply within Papua New Guinea, which will, in turn, promote the economically efficient investment in, operation of, and use of networks and generation plants, and allow new electricity services to support such access. ASTAE ANNUAL STATUS REPORT #20 Tonga: Energy Road Map Institutional and Vietnam: Cumulative Impact Assessment Regulatory Framework Strengthening on Small Hydropower Projects on River This is ASTAE’s first recipient-executed activity, cofinanced Cascades with AusAID through the multipartner Pacific Region This ASTAE-funded activity will conduct a Cumulative Chapter 2. ASTAE-Supported Activites Infrastructure Facility and the government of Tonga. This Impact Assessment (CIA) and develop Joint Operational activity will help Tonga implement “Tonga Energy Road Rules for Hydropower Operators on various river cascades Map 2010–2020” (TERM). TERM experience has brought under the Renewable Energy Development Project (REDP) together more than a dozen development partners around in Vietnam. This activity will contribute to mitigating a common agenda, and in so doing has served to recall potential negative impacts on the energy-water-food- and redefine a methodology that has colloquially become security nexus. The activity will screen all socioeconomic known as an innovative “whole-of-sector” approach to impacts of hydropower development on the cascade, energy planning and investment for a small island state. including on irrigation, agriculture, and, indirectly, food. The REDP facility will finance about 30 small hydropower ASTAE will finance renewable-energy and energy-efficiency developments; however, there currently are no provisions experts to help the government of Tonga implement the to carry out CIAs or develop joint operational rules to project and to fund an innovative tidal power feasibility maximize generation output on river cascades while study. ASTAE will provide financing to component 1 of maintaining the minimum environmental flow to mitigate 31 the project on capacity building to strengthen the energy negative impacts. sector framework and structure. Component 2 will help Tonga The study, which will be managed by the Ministry of Power Limited integrate Industry and Trade (MOIT), will build capacity and raise renewable energy into the awareness—at the state, provincial, and municipal levels, grids. and with private developers—of the benefits of conducting CIAs before constructing hydropower plants. The study will highlight the need to develop an appropriate institutional and regulatory setup to ensure CIAs are conducted as part of standard river management and hydropower development planning in Vietnam. Based on the estimated physical cumulative impacts in the river basins, stretches with a combination of valued ecosystem components and significant effects on flow regime or water quality will be assessed in regard to environmental or social impacts. Potential effects on aquatic biodiversity will be estimated based on the existing studies. If necessary, sampling of fish and other aquatic species will be conducted. In situ water quality measurements should be conducted to complement the measurements taken during the screening phase. In parallel, the use of the river and the aquatic life for ecosystem services by local communities will be assessed through consultations. Economic dependence on the rivers and the potential impacts of the simulated physical cumulative impacts under the different development scenarios will be estimated. Vietnam: Cumulative Impact Assessment Regional: Greenhouse Gas Emission on Small Hydropower Projects on River Mitigation in Road Transport: Toolkit Cascades (continued) Implementation and Life-Cycle Analysis As part of the socioeconomic assessment, the study will This activity aims at (a) developing an implementation specifically address the gender impacts of hydropower framework for the integration of Road Emission development under the project. A well-organized start- Optimization (ROADEO, a toolkit produced under ASTAE’s up workshop was held on June 21, 2012, in Hanoi to (a) 2007–11 business plan) into the Vietnam Road Asset introduce the project to all relevant stakeholders and (b) Management Program’s monitoring and evaluation plan and share lessons from international experience in developing (b) extending the existing toolkit to include the road service cumulative impact assessment and joint operational phase for operations and maintenance. rules. The workshop was opened by MOIT and the Through the first objective, this activity will field test the World Bank with more than 50 participants from various existing toolkit in an effort to determine user friendliness ministries and other government and full-scale operation at all phases, including planning, agencies, nongovernmental design, and construction or rehabilitation. Through the organizations, institutes, second objective, this activity intends to leverage funding 32 and other relevant to include all phases of a road’s life-cycle to make the stakeholders. existing toolkit truly comprehensive. Verification using the ROADEO software is expected to eventually come to fruition through widespread usage and international acceptance. Previously, ASTAE supported the emergence and development of the ROADEO toolkit, which attracted considerable interest from World Bank operational teams in several regions. This time, ASTAE will help operationalize the ROADEO toolkit in World Bank lending projects and eventually beyond Bank projects. ASTAE ANNUAL STATUS REPORT #20 Regional: Access to Electricity Solutions in Regional: Household Energy in South Asia South Asia Region This activity will examine the factors that constrain access This activity will help develop a strategy and action plan Chapter 2. ASTAE-Supported Activites expansion in lagging states in India and countries in for the World Bank’s South Asia Energy Unit to support South Asia and propose a way forward to reach universal client countries in promoting clean and efficient biomass access to electricity in 2030, as envisaged under the cookstove with an initial focus on Bangladesh and Nepal. sustainable energy for all (SE4ALL) initiative. Although The ultimate beneficiaries of this work will be poor a number of national and international platforms are households, particularly the focused on the provision of electricity to clientele at the women and bottom of the pyramid, a strong analytic underpinning is children in those required to determine the reasons behind continuing poor households, performance and to suggest implementable solutions who suffer drawing on international best practices. This activity will more heavily support the access pillar of the Bank’s South Asia Energy from the Sector Strategy and builds on the work carried out under smoke from the umbrella India Power Sector traditional 33 Diagnostic Review. This cookstoves. activity will review access-related issues in South Asian countries in general and particularly in India with a view to informing the future operational agenda. Regional: Using Satellite Imagery to ASTAE Team and Publications in FY12 Monitor Progress of Rural Electrification Composition of ASTAE Team This activity aims to replicate the lessons learned in The ASTAE team comprised the following members in Senegal and Mali, where it was demonstrated that fiscal 2012: satellite imagery is a valid and efficient tool for tracking and monitoring the progress of rural electrification projects. • Mr. N. Vijay Jagannathan, sector manager for the The study analyzed in detail the technical conditions and East Asia Infrastructure Unit (EASIN), has been the ASTAE related costs for satellite monitoring and provided an on- program manager since July 2009. He retired in July 2012 the-ground cross-check of results provided by satellite and was replaced by Mr. Charles M. Feinstein. imagery. Building on the proof of concept and feasibility in • Ms. Jyoti Shukla, Sector Manager, South Asia Energy Africa, ASTAE funding will support the operational use of Unit (SASDE) oversaw activities in South Asia. such imagery in Asia with a focus on Vietnam, Indonesia, • Ms. Natsuko Toba, senior economist in EASIN, has Nepal, and Bangladesh. The activity is led by SAR but been ASTAE coordinator since May 2010. implemented jointly in SAR and EAP. • Mr. Dejan Ostojic, energy practice leader in EASIN, The activity will have two major components: (a) an ex provided strategic support to the program manager and the 34 post analysis to glean lessons learned from several national coordinator for activities in East Asia and the Pacific. programs in Asia, such as in Vietnam, that have shown substantial progress in electrification, and (b) forward- • Ms. Sudeshna Banerjee, senior economist, provided looking support for the setup of a monitoring component strategic support to the program manager and the for ongoing or future Bank-supported electrification coordinator for activities in South Asia until December 2011. programs in Asia, such as in Indonesia • Mr. Laurent Durix, senior energy consultant, provided and Nepal. Expected outputs are technical support to the program manager and the a lessons learned report and coordinator and now coordinates activities in South Asia. a methodology toolkit ready • Mr. Sivalingam Milton, procurement assistant, provided to be implemented in the office support. country of focus and to be shared with teams in Ms. Toba and Mr. Durix undertake the majority of the other countries. administration and development tasks and thus are the only staff members to charge such task-related costs to the ASTAE trust fund. ASTAE ANNUAL STATUS REPORT #20 Publications Produced ASTAE activities produce a number of outputs in various formats, depending on the target audience and the best Chapter 2. ASTAE-Supported Activites way to deliver information to each audience. Most reports are by-products of activities funded by ASTAE, although some are the end products. When suitable, the products are published, printed, and widely distributed to a broader audience, including through ASTAE’s website. Many reports are not published, either because their value to the general public is limited or because they are confidential outputs delivered to partner countries. The purpose of each publication is to share—within and among countries in the region and beyond—the knowledge and experiences, especially innovative ones, generated by ASTAE activities. Given the interim nature of FY12, ASTAE published only one report: 35 • Lao PDR, Power to the People: Twenty Years of National Electrification, December 2011 3 36 ASTAE ANNUAL STATUS REPORT #20 ASTAE Performance Assessment—Fiscal 2012–15 Business Plan Chapter 2 dealt specifically with ASTAE’s activities in FY12. from borrowing countries’ governments, other donors, and This chapter reviews the plans for performance of ASTAE- the private sector. funded projects for the four years of the fiscal 2012–15 Chapter 3. ASTAE Performance In contrast to FY11, when no ASTAE-supported project business plan period. came to the Board, FY12 was a very active time. Five ASTAE-supported projects were approved by the Board for a total of US$1,301 million. All projects but one had ASTAE Leverage on Bank Lending benefited from ASTAE support under the 2007–11 business The allocations ASTAE provides to Bank teams to undertake plan period, but are accounted for under the 2012–15 activities leverage additional investment in sustainable business plan because the key marker for allocation of the energy once ASTAE-supported projects have been related indicators to a given fiscal year is the date of Board appraised, approved, and implemented. These leveraged approval. amounts vary from year to year because the number and size of World Bank projects presented to the Board vary The five approved ASTAE-supported projects follow, sorted by approval date: 37 and ASTAE activities sometimes inform Bank projects that come to the Board only years later. Caution must be • July 2011, Vietnam, Clean Production and Energy exercised when referring to such leverage—claiming full Efficiency Project ASTAE attribution would be unrealistic and unfair to all those involved in developing the projects, starting with the • July 2011, Indonesia, Geothermal Clean Energy Investment Project governments and the Bank Task Team Leaders. However, such leverage can be seen as a good indicator of • September 2011, China, Energy Efficiency Financing III Project ASTAE funding’s reach into Bank operations, thus providing a certain measure of ASTAE’s influence in channeling funds • April 2012, Mongolia, Ulaanbaatar Clean Air Project toward sustainable energy. This leverage is especially • April 2012, Pakistan, Natural Gas Efficiency Project important in periods of flat budgets, when the institutional appetite is decreased for the type of less mainstream, Vietnam, Clean Production and Energy innovative projects—often perceived as riskier and Efficiency Project costlier—required to promote the adoption of sustainable energy solutions. By contrast, availability of ASTAE funds The Clean Production and Energy Efficiency Project is ensures the study will be conducted, the consultant hired, a Global Environment Facility– (GEF-) funded project, or the concept tested that will nudge the decision-making with a total cost of US$4.14 million (partially funded by a process to the finish line. GEF grant of US$2.37 million), the objective of which is to strengthen the capacity of the Vietnam government During the 2007–11 business plan period, ASTAE supported and other key stakeholders for the effective delivery of 17 projects that had been presented to the World Bank the national energy-efficiency program in key industrial Board of Executive Directors. The total lending related sectors, thereby improving energy efficiency and reducing to these projects amounted to US$2.2 billion, of which associated greenhouse gas emissions. 51 percent was sourced from the International Bank for Reconstruction and Development (IBRD) and the The energy sector in Vietnam has grown rapidly to International Development Association (IDA), and the rest meet the demands of a developing nation. Final energy consumption grew from 10.8 million tons of oil equivalent The project consists of the following components: in 1998 to 32.5 million tons of oil equivalent in 2008. (a) establishment of energy-efficiency action plans Industrial growth has been one of the key drivers of for key industrial sectors, (b) development of energy Vietnam’s increasing energy intensity. These rapid services providers, and (c) capacity building for program increases in energy consumption and energy intensity management and supervision. of economic growth present the country with triple ASTAE provided technical assistance during the preparation reasons for a robust energy-efficiency program: (a) energy phase of the project to help the team review and provide supply security, (b) competitive economic growth, and (c) technical advice on activities proposed by the Vietnam sustainable environmental development. government under the different components of VNEEP- The Vietnam Energy Efficiency Program (VNEEP) is a II. An experienced energy-efficiency expert was hired to national target program, and the first-ever comprehensive work closely with MOIT and local counterparts to provide plan to institute measures for improving energy efficiency advice and recommendations for both the preparation and and conservation in all sectors of the economy in Vietnam. implementation phases of the component project and to VNEEP Phase I (VNEEP-I), 2006–10, aimed to start up build the capacity of MOIT staff. all components of the program, and VNEEP Phase ASTAE also organized an exchange of experiences 38 II (VNEEP-II), 2011–15, aims to expand each with energy services companies (ESCOs) from component, based on lessons learned from China and Thailand at workshops in Hanoi Phase I. attended by local authorities and other The proposed GEF project is intended stakeholders from other cities (Ho Chi to provide technical assistance to Minh, Haiphong, and elsewhere). A participants in the energy efficiency study tour to the Republic of Korea market (with specific emphasis was conducted for a Vietnamese on the industry sector and energy delegation from MOIT. The objective services providers) as well as to of these activities was to boost the Ministry of Industry and Trade the business by redressing local (MOIT) and to support the government partners’ lack of practical experience in achieving the energy-efficiency targets through discussion of business of the national energy-efficiency program opportunities, business models, and creation through various delivery mechanisms. This will of collaboration opportunities with Vietnamese be a substantial undertaking for the government in the counterparts. next several years because it requires a paradigm shift from growth through investment in new capacity and use of additional resources to growth through better use of existing capacity and resources. This GEF project will also support pre-investment activities such as developing action plans, building capacity, and establishing policy support mechanisms to attract and enable financing programs. Implementation of a national energy-efficiency program involves long-term engagement and approaches for addressing the key issues and gaps that could influence the success of investment projects. ASTAE ANNUAL STATUS REPORT #20 Indonesia, Geothermal Clean Energy but improved its implementation and positioned PGE for Investment Project preparation of future projects. ASTAE’s assistance enabled the World Bank to provide critical input to PGE’s feasibility The approval of this project by the Board in July 2011, for a studies, environmental and social impact assessments, total of US$574.7 million, marked the positive investment drilling strategies for its steam fields, and overall capacity leveraging of long-term ASTAE support to geothermal building of the implementing agency. It provided the Chapter 3. ASTAE Performance development in Indonesia. The objective of the incremental support necessary to carry out project is to increase power generation the due diligence for the World Bank and from renewable geothermal resources CTF loans. The review and guidance by supporting investment in the provided to PGE on its power development and construction of purchase agreements contributed 150 MW of geothermal energy to the ultimate agreement with the that will reduce local and global national power company on several environmental impacts. This will geothermal developments, including be achieved by assisting Pertamina the ones financed by the World Geothermal Energy (PGE), a leading Bank. And the review of safeguards public sector geothermal developer, 39 work related to the impact of hydrogen expand power generation capacity in sulfide has led to a national dialogue to the Ulubelu and Lahendong (Tompaso) address the issue on a sector-wide basis. geothermal fields located in South Sumatra Ultimately, ASTAE assistance to PGE will have and North Sulawesi, respectively. The successful a transformative impact by improving the prospects for realization of new geothermal power generation capacity success of the company’s attempt to develop more than will provide an estimated avoidance of greenhouse gases 1,000 MW of geothermal capacity, which will double (GHGs; for example, CO2) and local air pollutants (SO2, NOx, Indonesia’s capacity and account for a 10 percent increase TSP), when compared with equivalent coal-based power in worldwide geothermal capacity. development. It was estimated that the 150 MW would mitigate 22 million tons of CO2 over a 20-year period. The World Bank provided loans totaling US$300 million to PGE to develop the geothermal capacity and kick-start the scale-up. It included US$175 million from the IBRD middle- income country borrowing facility and concessionary financing from the Clean Technology Fund (CTF). The loan to PGE was the first CTF operation in East Asia. ASTAE played a critical role, along with complementary grant support provided directly to the client by the government of the Netherlands, in helping PGE prepare a number of investment projects to meet international and industry standards. As a first-time client of the World Bank, PGE also benefited from the capacity-building efforts made possible by ASTAE support. This support not only enhanced preparation of the World Bank–financed project, Mongolia, Ulaanbaatar Clean Air Project PM abatement measures in Ulaanbaatar in coordination with development partners. The project Ulaanbaatar, Mongolia’s only international includes the following components: (a) Ger gateway, remains nearly unlivable during Area Particulate Matter Mitigation; (b) certain times in winter as the result of Particulate Matter Mitigation in Central severe air pollution. Particulate matter Ulaanbaatar; and (c) Public Awareness (PM), which in its fine form is inhaled Raising, Program Coordination, and and causes major health damage, is Project Management. severe. Among all measurements taken in a recent World Bank air ASTAE contributed to the Bank pollution study, the worst recorded project by financing the diagnostic annual average concentration was of the situation through its report more than 10 times higher than the “Energy-Efficient and Cleaner Heating Mongolian Air Quality Standard (AQS) for in Peri-urban Areas of ” Ulaanbaatar. PM10 and 25 times higher than the Mongolian The report highlighted the city’s rapidly AQS for PM2.5. deteriorating air quality, and focused on the 40 heating and cooking stoves used by ger residents as Air pollution in Ulaanbaatar is a manifestation of previous among the main culprits. The findings of the ASTAE- insufficient policy responses to a complex set of urban funded activity led to the conclusion that it is possible to development issues exacerbated by an ever-growing peri- develop a program aiming to provide cleaner, affordable urban population. The influx of migrants over many years heating to ger areas in Ulaanbaatar. The report outlined has resulted in the rapid expansion of mainly low-income a program to replace stoves and introduce new fuels. It ger areas, covering hillsides around the city and now identified key actions such as setting technical standards accounting for 60 percent of the city’s population. These and testing compliance with emissions targets, providing migrants live in nomadic tents, called ger, which are self- assistance to Mongolian stove producers and linking them built, poorly insulated, wood or brick detached houses. up to international counterparts, as well as convincing The key contributors to ambient PM concentrations households to switch to better fuel-stove combinations. It in winter are individual household coal-fired heating also recommended organizing a large-scale publicity and appliances (stoves and small furnaces); dust is a year-round awareness campaign and putting a support mechanism contributor. These sources contribute about 62 percent of in place to assist poor households in quickly adopting the the estimated annual average ambient PM10 concentrations measures to clean up the air they breathe. and 65 percent of the PM2.5 concentrations. About 90 Finally, it suggested using a subsidy percent of an estimated 175,000 households use simple, voucher system based on the coal-fired, low-cost steel stoves in their gers, or use stoves output-based aid approach that connected to heating walls. earlier showed promising The government and Ulaanbaatar have focused on practical, results in Ulaanbaatar under short-term measures, and donor resources have been a previous demonstration mobilized; however, gaps remained. The objective of this project. US$21.9 million Bank project is to help plug the gaps of other existing initiatives by enabling consumers in ger areas to access heating appliances that produce fewer PM emissions, and to further develop selected medium-term ASTAE ANNUAL STATUS REPORT #20 China, Energy Efficiency Financing Project and development effectiveness takes into account the III (additional financing) government’s new energy-efficiency policies and priorities, and lessons learned from CHEEF implementation so far, This large-scale China, Energy Efficiency Financing (CHEEF) in particular the success of EXIM Bank in implementing project illustrates the long-term impact of just-in-time the project. The additional financing is the most effective ASTAE financing. ASTAE provided technical assistance to way of achieving the above objectives, especially when Chapter 3. ASTAE Performance kick-start an activity that is now so successful that it is in compared with a new free-standing project. The project its third phase of additional financing. With the additional includes the following improved or expanded features, US$428 million, more than US$1 billion will have compared with the original CHEEF: (a) piloting been leveraged to support energy efficiency in innovative ESCO lending, under which end the industrial sector. users pay for ESCOs’ energy-efficiency The government of China has made services from the demonstrated energy conservation one of the energy savings under performance- highest national priorities, and is based contracts, and broadening aiming to reduce energy intensity the subborrowers from large and by 16 percent during the 12th medium industrial enterprises to Five-Year Plan (2011–15). The 41 energy end users of all sizes and government has also committed ESCOs; (b) expanding the target to reducing the carbon intensity of market segments from the industrial GDP by 40–45 percent from 2005 to the building sector, given the rapid to 2020, and energy conservation will growth in energy demand for buildings, play an essential role in achieving this and the government’s plan to expand target. The use of market-based mechanisms the range of priority energy conservation to promote energy efficiency is expected to increase programs; and (c) increasing the leverage ratio of the during the 12th Five-Year Plan. The State Council issued IBRD loan to EXIM Bank’s contribution from 1:1 in CHEEF new policies to strongly support growth of the ESCO to 1:2 in the additional financing. industry, offering subsidies, awards, and generous tax ASTAE support consisted of helping determine the incentives for ESCOs, and encouraging bank lending to methodology and drafting an operations manual for IBRD ESCOs by allowing banks to use and recognize ESCO loan on-lending to Chinese banks for energy-efficiency project assets, contracts, and revenues as loan security. In projects; determine eligibility criteria and initial selection addition, the government plans to expand the focus of its of subprojects for financing; and preparation of procedures energy conservation efforts from the industry sector to the and support for appraisal, implementation, and general building and transport sectors, given that energy demand terms of subloans. ASTAE funding also helped develop the from buildings and transport will increase rapidly—tripling monitoring and reporting system in use in the CHEEF. for buildings and more than quadrupling for the transport sector—during the next two decades. The additional financing (also called CHEEF-III) supports the government’s commitment to energy efficiency and endeavors to meet the huge needs for energy-efficiency investment in China. The expanded scope for the additional financing for CHEEF to scale up the project’s impact Pakistan, Natural Gas Efficiency Project and emissions. The project is seen as a remedy to some of the problems of the sector because it will cost-effectively The availability of electricity and other energy is considered make more natural gas available for economic use, to be a main constraint to economic activity in Pakistan. including for thermal power plants, while at the same time The power sector faces a large gap between supply and reducing emissions of greenhouse gases. demand, and load shedding is prevalent. Approximately 86 percent of Pakistan’s population has access to electricity, but the quality and reliability of supply is poor. Natural gas Progress on 2012–15 Performance is a vital source of energy supply in Pakistan; in FY10, Indicators Pakistan consumed about 1.5 trillion cubic feet of gas, all In addition to reporting on its activity disbursements and domestically produced and representing 49 percent of reporting on World Bank–related investment projects (see the country‘s total primary energy supply. However, many appendix 4), ASTAE tracks a set of indicators showing the large gas fields are in decline, and at current production trajectory of its impact in supporting sustainable energy forecasts, the country is at or near its peak production. The development. Pakistan government’s main goal in the energy sector is to increase the affordability and availability of energy, with The indicators were chosen to illustrate each pillar. a priority focus on electricity services and an associated Although they may not cover the pillar’s entire spectrum— 42 focus on reducing dependence on costly oil imports. for example, there is more to renewable energy than generating electricity using renewable sources— Losses are more than 9 percent as compared with 1–2 the indicators convey the predominant trend. The percent in well-run gas networks. Indications from pilot indicators are usually available from World Bank project projects are that at least 75 percent is methane leakage to documentation and are therefore easily referenced from the atmosphere; the other large component is gas theft. published sources. Appendix 2 provides a table linking all The project will bring the utility’s gas losses (unaccounted- ASTAE activities disbursed in FY12 to the related World for gas) down to about 5 percent, thereby reducing Bank projects, and shows their contributions to ASTAE methane emissions to the atmosphere and improving indicators. A project’s achievements are measured as resource management, making natural gas more affordable, direct when they result from World Bank loans and grants and improving service delivery. and as indirect when the impacts are derived from country ASTAE will provide assistance to the project management stakeholder actions supported by World Bank and ASTAE office of the subborrower (the gas utility) in the technical assistance. Indirect impacts are tracked critical start-up phase of the project to when relevant, but no pledge is made on ensure thorough analysis and discussion these because little influence may be of organizational requirements for claimed by ASTAE. successful execution; to advise on Contributions from all projects strategic project execution matters, approved during the business notably the segmentation of the plan period are compiled to derive network into smaller units; and to the indicators described below. support pilot projects with energy- Cumulative progress of all indicators efficient consumer appliances, against the business plan target is funded by IBRD/IDA but scaled provided in table 3.5 at the end of this up with GEF funds, which may help chapter. unleash further savings of gas resources ASTAE ANNUAL STATUS REPORT #20 Influence on Bank Lending Table 3-1: Renewable Electricity Capacity Added, Indicator 1: Total World Bank lending catalyzed by by Country, Fiscal 2012–15 Business Plan ASTAE activities Period As mentioned above, five ASTAE-supported projects were approved in FY12 by the Board for a total of US$1,301 Renewable Energy Chapter 3. ASTAE Performance Countries with ASTAE million, most which were linked to activities undertaken in activity in renewable ENERGY Capacity Generation the 2007–11 business plan period. (MW) (GWh) Because FY12 disbursements are not a significant Bangladesh n.a n.a illustration of expected annual disbursements under the 2012–15 business plan period, no leverage ratio is Indonesia - 1,208 calculated for this year. Under the 2007–11 business plan, Maldives n.a. n.a. on average, every dollar allocated by ASTAE leveraged US$223 in World Bank–related loans or grants to Mongolia - - sustainable energy. The target for the 2012–15 business Nepal n.a. n.a. plan is a leverage ratio of 160, to leverage US$3,200 million 43 with an ASTAE budget of US$20 million. The expected Papua New Guinea n.a. n.a. lower leverage ratio compared with the 2007–11 business plan is due to the decision to curtail ASTAE activities in Tonga - - China and India, where relatively larger leverage ratios Vietnam n.a. n.a. could be achieved. Total 0 1,208 Renewable-Energy Pillar N.A.: Not available yet, project to go to Board in subsequent years. The renewable-energy pillar is illustrated by a composite - : Not applicable—activity not expected to contribute to this indicator, or indicator not measurable. indicator measuring the contribution of ASTAE activities to the increasing use of renewable energy in client countries. Support to new renewable energy is expressed both in The only renewable-energy-related project approved in installed capacity, to reflect the actual investments made, FY12 was the geothermal project in Indonesia. Because the and in actual energy generated annually, expressed in added capacity of 150 MW was already accounted for a bit gigawatt-hours (GWh), to reflect the effective use of the prematurely in the 2007–11 business plan, it is not included installed capacity. this time to avoid double counting. However, the resulting Indicator 2: New capacity and increased generation had not been accounted for and is therefore generation of renewable electricity included. Table 3-1 provides the renewable electricity capacity and No progress was made on installed capacity this fiscal generation added during the first year of the fiscal 2012–15 year but the 1,208 GWh that will be produced annually business plan period, both directly through World Bank represents 40 percent of the target under the business loans and indirectly from investments facilitated by World plan. With renewable-energy-related activities that are likely Bank projects and ASTAE activities. Countries listed in to lead to projects going to the Board for approval in five the table are those in which ASTAE supported renewable- countries in the next few years (listed as N.A. in the table), energy activities in FY12, but not all activities have yet it is expected that the business plan target will be met. led to an approved project and progress on the related indicators. Energy-Efficiency Pillar Indicator 3: Electricity savings resulting from efficiency improvements The energy-efficiency pillar is evaluated by a composite Table 3-2 provides a summary of cumulative annual indicator composed of the quantity of electricity saved, electricity savings that derive from ASTAE-supported World and the generation capacity avoided, by decreasing Bank projects once fully implemented. These estimates consumption, reducing waste, or both. It is a measure of are calculated based on direct savings through World the support to projects that limit the need for electricity Bank loans or on indirect support by way of investments generation throughout the year and limit the need for facilitated by World Bank and ASTAE technical support. additional installed capacity to meet annual peak demand. Because this indicator focuses on electricity, it does not As noted earlier, several energy-efficiency projects were reflect ASTAE’s work in heating, primarily space heating approved in FY12 that were linked to ASTAE activities in northeast Asia, or in cookstove improvements. It does funded under the 2007–11 business plan period. These not capture the gains in either coal or oil saved when the projects did not measure energy-efficiency savings in efficiency activity targets industries rather than utilities. electricity-equivalent metrics, so they did not contribute Despite these limitations, it is still considered a relevant formally to the indicator. However, the annual savings marker for investments in energy efficiency. remain significant, with China saving 0.59 million tons 44 of coal equivalent and Vietnam 0.36 million tons of oil Table 3-2: equivalent through support to efficiency in the industrial Cumulative Electricity Savings, by sector. Country, Fiscal 2012–15 Business Plan The main contributor to energy-efficiency indicators is the Period Pakistan gas loss reduction activity that, once operational, Energy Efficiency will save 22 billion cubic feet of gas annually, or the (Avoided electricity) equivalent 2,820 GWh, the generation of a 350 MW plant Countries with ASTAE activity in at a 92 percent power generation factor. This avoided energy efficiency Capacity equivalent loss is significant, representing 141 percent of Generation (MW equivalent) (GWh saved) the generation equivalent target for the entire business plan period. China - - Access to Modern Energy Services Pillar Maldives n.a. n.a. The access to energy pillar is measured by the number of households that received new or improved connections to Pakistan 350 2,820 modern energy services. Because the services provided Papua new Guinea n.a. n.a. by an improved wood-burning stove that reduces smoke emissions and decreases consumption of raw wood for the Vietnam - -. same heat output is not equivalent to the services of an improved electricity connection or even of new access to Regional Work n.a. n.a. electricity, these three types of access are now separated. Total 350 2,850 New connections to electricity have life-changing impacts, N.A.: Not available yet, project to go to Board in future years. whether because of new opportunities opened by access - : Not applicable—activity not expected to contribute to this indicator, or indicator not measurable. to electricity or improved efficiency in daily tasks made possible by the use of powered tools and appliances. ASTAE ANNUAL STATUS REPORT #20 Improved connections help remove constraints on Indicator 4: Households with access to modern households, often by lowering the amount of fuel needed energy services or by improving the reliability of existing services, thereby This indicator comprises three sub-indicators: (a) the eliminating the need for backup service. For example, number of households receiving new access to electricity, improved electricity connections in Vietnam helped (b) the number of households receiving improved reduce the need for alternative sources of lighting, such electricity, (c) the number of households receiving Chapter 3. ASTAE Performance as kerosene lamps or candles that were used when improved access to efficient stoves for heating and unplanned blackouts were a frequent occurrence. cooking. It should be noted, however, that the distinction between Table 3-3 shows that although several activities involve new and improved services is not always as obvious access, the only project that came to the Board in FY12 as it might appear. A new connection is often, in fact, an was a heating project in Mongolia. Although very important improved connection to the same service but using a at the country level, the relatively small population of more efficient fuel source. For example, a new connection Mongolia resulted in very little progress toward this target, to electricity displaces the use of kerosene for lighting or at a mere 3 percent. batteries for radios, and provides a much more efficient and The regional activities—supporting strategy-making and less costly source, but does not bring new lighting services 45 sharing lessons learned—are not expected to contribute or radio use because these were already in place. directly to the indicators. However, several access activities in the pipeline in Bangladesh and Indonesia are expected to Table 3-3: yield significant progress in the coming years. Households with Access to Modern Energy Services, by Country, 2012–15 Business Plan Period Cross-Cutting Indicators A fifth and a sixth indicator that cut across the three pillars also have been defined. One is dependent on the results Households with new or improved Countries with access to modern energy services from the three pillars’ individual indicators, whereas (number of households) ASTAE the other is a more general assessment of ASTAE’s activity in access to involvement across the region. Improved energy New Improved cooking Electricity Electricity and heat- The fifth indicator measures reductions in CO2 emissions, Access Access ing access representing the overall impact on greenhouse gas Bangladesh n.a. n.a. n.a. abatement. It is an important metric because CO2 emissions are considered the main contributor to the Indonesia n.a. n.a. n.a. greenhouse effect. ASTAE activities have a direct impact on CO2 reduction through World Bank project contributions to Mongolia - -. 175,000 renewable energy, energy efficiency, and improved access Regional projects - - -. to modern energy services. Total 0 0 175,000 The sixth indicator ensures that financial assistance is provided to all countries in the region and avoids the N.A.: Not available yet, project to go to Board in future years. - : Not applicable—activity not expected to contribute to this indicator, or unintended trap of focusing on large countries just to meet indicator not measurable. the previous four indicators. Indicator 5: Avoided greenhouse gas emissions Table 3-4 confirms that to scale up CO2 emissions This indicator estimates the quantity of CO2 emissions that mitigation substantially, support to country programs that would be avoided over 20 years (the conventional lifespan focus on wasteful energy use in energy-intensive economic of projects or equipment) through ASTAE-supported sectors has the greatest effect. Here, the highest impact World Bank projects. It determines the CO2 equivalent was achieved by a project in a single country, Pakistan, saved directly and indirectly through the replacement of where reducing leakage in methane-intensive natural conventional thermal power plants with renewable energy gas led to meeting the entire business plan target in one and realizing the potential energy savings. year—a rather atypical result. Indicator 6: Countries benefiting from ASTAE Table 3-4: support CO2 Mitigated, by Country, 2012–15 This indicator ensures that ASTAE resources are used in Business Plan Period a balanced manner across all ASTAE countries, providing CO2 mitigated equal funding opportunities to large countries (for example, Countries with ASTAE activity that may reduce GHG Pakistan, Indonesia, and Vietnam) and to smaller countries (million tons over 20 years) (such as Pacific Islands and 46 Maldives). ASTAE financed Bangladesh n.a. activities in 9 countries China 28.8 out of the 15 targeted, in addition to regional Indonesia - activities. With four Maldives n.a. countries in South Asia and five in East Mongolia n.a. Asia, the progress was roughly equal Nepal n.a. across the two regions Pakistan 240.0 Papua New Guinea n.a. Tonga n.a. Summary of Progress on Indicators Against Business Plan Targets Vietnam 8.3 All ASTAE activities are designed to adapt to the wide Regional projects n.a. variety of issues throughout the region, as well as to the country context. Table 3-5 provides a summary of all Total 277.1 indicators discussed in this chapter. N.A.: Not available yet, project to go to Board in future years. - : Not applicable—activity not expected to contribute to this indicator, or indicator not measurable. ASTAE ANNUAL STATUS REPORT #20 Table 3-5: Summary of FISCAL 2012–15 Business Plan Targets Pledged and Achieved Direct Value Value Progress Unit Indicators Pledged Achieved % 1. Total World Bank lending catalyzed by ASTAE Activities Chapter 3. ASTAE Performance Million Projects and Program lending 3,200 1,301 40 US$ 2. New capacity and increased generation of renewable electricity Renewable energy - Capacity MW 1,500 0 0 Renewable energy - Generation GWh/year 3,000 1,208 40 3. Electricity savings resulting from efficiency improvements Energy savings - Capacity MW eqvt 1,000 350 35 47 Energy savings - Generation GWh/year 2,000 2,820 141 4. Households with access to modern energy services House- Access to electricity (New) 2,000,000 0 - hold House- Access to electricity (Improved) 1,000,000 0 - hold House- Improved stoves for heating (cooking and space) 5,000,000 175,000 3 hold 5. Avoided greenhouse gas emissions Million Direct CO2 avoided over 20 years 200 277 138 tons 6. Countries benefiting from ASTAE support Number of Countries CountRIES 15 9 60 Note: Direct refers to values achieved, or expected to be achieved, in the course of World Bank–funded projects that benefited from ASTAE support. 4 48 ASTAE ANNUAL STATUS REPORT #20 Outlook for FY13 and Beyond ASTAE Business Plan for Fiscal 2012–15 by external experts from the Bank, and ASTAE’s impact on The challenges ahead for ASTAE, based on experience and EAP’s, SAR’s, and the Bank’s portfolios. Through its focus Chapter 4. Outlook for fiscal 2013 the characteristics of the region, are numerous: on energy, ASTAE can play a crucial role in promoting low- carbon, green growth—an emerging worldwide trend, • Both the South Asia region (SAR) and the East Asia especially in Asia. ASTAE has a significant advantage in and Pacific region (EAP) comprise countries with widely promoting regional cooperation to scale up a range of varying levels of economic development, geographic size sustainable energy practices from one country to the and remoteness, resource endowments, and cultures. regional level. • Urbanization in the more advanced economies in ASTAE engages with client countries from the very early the region has been occurring much more rapidly than stages of decision making to ensure that investment expansion of basic infrastructure. A number of these projects presented to the World Bank Executive Board for urbanizing areas require solutions similar to those being approval will promote sustainable development and poverty undertaken in developed economies, such as low-carbon reduction. For example, ASTAE’s technical assistance growth, economically and ecologically sustainable cities, 49 contributes to the high quality of client-prepared feasibility smart grids, and the like. studies so that the Bank can better prepare and appraise • Conversely, the less advanced economies suffer from projects for Board approval. ASTAE’s technical assistance very low levels of access to basic infrastructure, limited to client countries at the earlier stages not only helps to capacity to develop and implement even simple projects, identify issues and sustainable energy solutions (potential and nonexistent master plans and strategies. For some, investment projects), but also can identify and mobilize the small size of their economies and their remoteness and potential funding sources. isolation underpin these issues. • Common to many countries in the region, however, is Goal and Objective low access to clean, modern energy, compounded by weak Consistent with past business plans, ASTAE’s enduring governance, including legal, institutional, and regulatory goal is to contribute to poverty reduction and protection frameworks. of the environment, as made operational through its • Finally, both SAR and EAP are vulnerable to climate unchanged objective, to “scale up the use of sustainable change and other environmental impacts. energy options in Asia to reduce energy poverty and These challenges make it ever more important for ASTAE ” ASTAE defines sustainable protect the environment. to continue to focus on its three existing pillars, to more energy as energy security, sustainable sources of energy, vigorously promote green growth, and to devote greater continuous and reliable flows of energy supply, and attention to regional and cross-sectoral cooperation, both financially sustainable energy for suppliers and users. physically and through the sharing of knowledge and Sustainable energy options remain as defined through the experience. three ASTAE pillars: ASTAE is well positioned to tackle these challenges and • Energy efficiency opportunities based on its track record of success since its • Renewable energy establishment in 1992, as evidenced by the achievement of • Access to modern energy services targets set in previous business plans, favorable reviews ASTAE operational support is implemented through four development will remain an area of focus, and will include key approaches: creating synergies between renewable energy, food security, and water management. • Supporting innovative financing and delivery mechanisms, Scaling up supply of and access to • Enhancing policy and regulatory frameworks sustainable energy on a regional basis • Building capacity and sharing knowledge ASTAE’s intra- and interregional activities will continue to address specific issues that are best handled at the • Promoting cross-sectoral and regional supranational level. In addition to supporting regional collaboration for mitigation of, and adaptation to, projects as defined under International Development climate change Association (IDA) guidelines,3 ASTAE will encourage South- Articulation of the fourth approach is new, although ASTAE South cooperation and knowledge sharing, and continue to has been implementing this approach for some time. It has support the regional, cross-border, and common (or similar) been added to emphasize ASTAE’s increasing commitment challenges faced by countries in the region. Past ASTAE- to this approach. supported activities with regional dimensions generally followed four concepts: 50 Specific Objectives of the Third Phase of ASTAE • First are regional products, methodologies, and instructional frameworks shared by countries in the region. As noted, ASTAE’s specific objective in its early days was Examples include the popular EAP region’s wind atlas, the to mainstream alternative energy in lending and grants in carbon-emission-mitigation toolkit for road construction, EAP. The objective of ASTAE’s second phase was to scale and the institutional framework for efficient urban up, mainly on a country basis. In this third phase, the transportation. specific objective is to promote low-carbon, green growth,2 and to scale up supply of and access to sustainable energy • Second is replication of specific activities and on a regional basis. ASTAE will devote special attention to concepts in neighboring countries. For example, both the supporting the promotion of sustainable energy as part of cookstove program and the biodigestor program developed a region-wide system to create synergistic impacts and in Cambodia were replicated in Laos PDR, with specific promote increased efficiency. The increasing importance adaptations built on local Lao traditions. of the regional dimensions of ASTAE’s mission is reflective • Third are training and study tours to neighboring of external demand and opportunities and ASTAE’s long- countries as a component of World Bank lending and grant standing experience and capabilities. investment activities. These activities have been crucial for capacity building in client countries and South-South Low-carbon, green growth learning, as well as for North-South learning. In addition to Promoting low-carbon, green growth calls for cross-sectoral study tours, regional conferences to share lessons learned work. First among the priority activities is ecologically and exchange knowledge have been held, showcasing and economically sustainable cities, which will require experiences from Bank investment activities and integrated land-use planning, transport, building, other sometimes leading to future Bank investment activities. infrastructure services, and urban agriculture. Rural 2. Based on a review of literature from middle- and high-income countries, green growth is defined as 3. Under IDA15 guidelines, regional projects are operations (a) that involve three or more countries, all sustainable development and growth in harmony with protection of the environment and ecosystem. of which need to participate for the project’s objectives to be achievable; (b) whose benefits, either Protection of the environment and ecosystem is an engine of growth and development rather than an economic or social, spill over country boundaries; (c) for which there is clear evidence of country or obstacle. Green growth has the following characteristics: regional ownership that demonstrates commitment of the majority of participating countries; and (d) that • Sustains economic growth provide a platform for a high level of policy harmonization between countries, and importantly, that are • Reduces environmental damage, including local pollution and greenhouse gas emissions part of a well-developed and broadly supported regional strategy. Starting with IDA16, the three-country • Minimizes waste and inefficient use of natural resources requirement for regional projects was relaxed to allow two countries, of which at least one is a fragile or • Relies on energy-efficient and low-carbon energy resources and production technologies conflict-affected country, to be eligible for financing for regional IDA projects. The three-country criterion • Builds sustainable infrastructure, such as compact urban form and public transport is retained for all other IDA countries. • Promotes green technologies and creates new job opportunities • Educates and increases the awareness of citizens to adopt resource-efficient consumption patterns. Green, low-carbon growth not only improves environmental sustainability, but brings additional benefits for development, such as enhanced energy security, less traffic congestion, more livable cities, and greater competitiveness from higher productivity, thus justifying part of its cost and increasing the appeal of green policies. ASTAE ANNUAL STATUS REPORT #20 • Fourth is the production of regional strategic studies Table 4-1: that guide future World Bank investments. Among these Indicative Operational Budget studies are the EAP strategic flagship reports entitled Allocation Winds of Change: East Asia’s Sustainable Energy Future IDA countries 40 percent to promote low-carbon, green growth, and One Goal, Chapter 4. Outlook for fiscal 2013 Middle-income countries 30 percent Two Paths: Achieving Universal Access to Modern Energy in East Asia and the Pacific to promote energy access in Regional work and knowledge-sharing 20 percent activities future Bank investments in the region. Selective engagement with India and 10 percent China Strategy and Budget ASTAE seeks to continue its successful work in EAP The target allocation per pillar is 50 percent for renewable while reengaging in SAR. Consistent with its downstream energy, 25 percent for energy efficiency, and 25 percent project- and program-oriented focus, ASTAE will add for access to energy. Cross-sectoral and regional activities, recipient-executed trust fund activities to the current Bank- including green growth; climate change; and poverty, executed trust fund activities. Intervention at the national gender, and other social and environmental issues overlap among the three pillars (table 4-2). 51 level will remain the core intent, but specific attention will be paid to opportunities to scale up country practices to regional status. At the same time, given the growth and importance of cities and urbanization, ASTAE will also provide support at the subnational level. It will continue to Table 4-2: seek cross-sectoral synergies whenever relevant to the Indicative Operational Budget ASTAE pillars, especially when they fit well with the cross- Allocation by ASTAE Pillar sectoral dimensions of low-carbon, green growth. Renewable energY 50 percent The estimated budget required to intensify the work in Energy efficiency 25 percent EAP, to extend ASTAE activities into SAR, and to support recipient-executed activities is at least US$20 million over Energy access 25 percent the next four fiscal years. ASTAE will allocate operational budget resources to intensify downstream activities related Table 4-3 summarizes indicators ASTAE pledges to achieve to sustainable energy projects and programs as shown in for the fiscal 2012–15 business plan period, based on table 4-1. lessons learned. Formal indicators are built on the basis IDA and non-IDA countries are likely to receive comparable of approved projects presented to the Bank’s Board of budget allocations. The IDA countries are more numerous, Executive Directors during the business plan period. Only but have smaller economies, thus requiring fewer sustainable energy projects that benefit from ASTAE resources per country. The non-IDA countries generally funding will be counted toward the pledged indicators. have larger economies and will require concomitantly Additional indicators on possible cross-sectoral impacts higher proportional resources. may be considered. Table 4-3: Summary of Pledged Indicators for Business Plan Fiscal 2012–15 Direct Indicators Unit Value Pledged 1. Total World Bank lending catalyzed by ASTAE Activities Projects and Program lending Million US$ 3,200 2. New capacity and increased generation of renewable electricity Renewable energy, Capacity MW 1,500 Renewable energy, Generation GWH/year 3,000 3. Electricity savings resulting from efficiency improvements Energy savings, Capacity MW 1,000 Energy savings, Generation GWH/year 2,000 52 4. Households with access to modern energy services Access to electricity (New) Household 2,000,000 Access to electricity (Improved) Household 1,000,000 Improved stoves for heating (cooking and space) Household 5,000,000 5. Avoided greenhouse gas emissions Direct CO2 avoided over 20 years Million tons 200 6. Countries benefiting from ASTAE support Number of Countries CountrIES 15 Note: Direct refers to values achieved, or expected to be achieved, in the course of World Bank–funded projects benefiting from ASTAE support. ASTAE ANNUAL STATUS REPORT #20 Appendixes 53 54 ASTAE ANNUAL STATUS REPORT #20 Appendixes Appendix 1: ASTAE Countries at a Glance: Region Map and Pillar-Related Statistics The map in appendix figure 1-1shows the partner countries where ASTAE operates in the South Asia (SAR) and East Asia and Pacific (EAP) Regions. In this map, SAR includes all countries to the west of Myanmar, while the other countries, including Myanmar itself, are in the EAP region. Appendix Figure 1-1: ASTAE Presence in the South Asia and the East Asia and Pacific Regions Appendixes Ulaanbaatar M O N G O L I A Beijing Seoul REP. OF 55 Kabul C H I N A KOREA AFGHANISTAN Islamabad P A C I F I C O C E A N PAKISTAN BHUTAN NEPAL Kathmandu Thimphu Dhaka I N D I A MYANMAR Hanoi Naypyidaw LAO BANGLADESH PDR Vientiane Philippine PHILIPPINES Sea THAILAND VIETNAM Manila Bangkok CAMBODIA Phnom- Penh MARSHALL ISLANDS SRI Colombo LANKA Koror Palikir Majuro M A L A Y S I PALAU Male A Kuala Lumpur FEDERATED STATES OF MICRONESIA MALDIVES Tarawa PAPUA KIRIBATI Jakarta I N D O N E S I A NEW GUINEA SOLOMON Funafuti Dili ISLANDS TIMOR-LESTE Port Honiara Moresby TUVALU SAMOA VANUATU Apia INDIAN OCEAN Port-Vila TONGA Suva FIJI Nuku’alofa IBRD 38347 JANUARY 2011 This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. Appendix table 1-1 provides data to illustrate the diversity of SAR and EAP countries in the context of ASTAE pillars. These data are not updated regularly by any centralized entity, and some are not available for the most recent years. They are primarily sourced from the U.S. Department of Energy’s Energy Information Administration (EIA), internal World Bank data, and the International Energy Agency (IEA). Although the best comparisons could be made if all data were for the same year, data for the most current year are provided whenever possible. The footnotes to the table provide further details. Appendix Table 1-1: Background Data Providing Context to ASTAE Pillars Region and BasicContext First Pillar: Second Pillar: Third Pillar: Greenhouse Countries Renewable Energy Energy Efficiency Access Gas Emissions of Activity Popula- GDP Installed Annual Installed Share of Energy Energy Popula- Electri- Annual energy- Annual per tion (WB capacity, electricity capacity, generation inten- Intensity tion fication related CO2 capita energy (EIA 2010) electricity genera- renew- using sity in the in power without rate emissions and related CO2 2010) (EIA 2008) tion able renewable economy produc- electric- (World ranking emissions (EIA 2008) (EIA 2008) (EIA 2008) (EIA 2008) tion ity Bank, (EIA 2009) and ranking (EIA 2008) (WB IEA (EIA 2009) 2010) 2010) Million Billion MW TWh MW % tCO2 / tCO2 / Million % Million Out ton / Out 56 US$ US$1,000 MWh ton of capita of GDP 189 189 East Asia AND PACIFIC Cambodia 14.7 11.2 386 1.4 18 4 0.48 1.150 11.2 24 4 132 0.28 165 China 1,330.1 5,926.6 797,078 3,221.2 186,820 17 2.21 0.760 13.3 99 7,707 1 5.82 59 Indonesia 228.2 706.6 27,802 141.2 5,801 14 1.16 0.730 79.9 65 415 16 1.73 116 Lao PDR 6.4 7.3 723 4.0 673 92 0.32 — 1.9 70 1 164 0.20 172 Mongolia 3.1 6.2 832 3.9 0 0 2.46 0.540 0.3 90 7 107 2.43 104 Papua New 6.4 9.5 699 3.0 271 30 0.81 — 6.0 13 5 122 0.82 139 Guinea Philippines 99.8 199.6 15,680 57.4 5,283 34 0.68 0.460 16.0 84 72 45 0.74 144 Thailand 67.4 318.5 40,669 139.0 3,487 8 1.27 0.530 0.7 99 254 25 3.82 79 Vietnam 89.6 106.4 13,850 70.0 5,500 37 1.41 0.430 3.6 96 98 39 1.11 129 South Asia Afghanistan 29.1 17.1 489 0.8 — — 0.08 — 25.3 13 1 171 0.03 189 Bangladesh 156.1 100.2 5,453 32.9 230 4 0.75 0.570 79.6 49 55 55 0.36 158 Bhutan 0.7 1.5 1,505 7.1 1,498 99 0.35 — 0.3 56 — — 0.48 153 India 1,173.1 1,727.1 177,376 785.5 51,363 50 1.40 0.950 398.9 66 1,591 3 1.38 123 Nepal 29.0 12.0 717 3.1 660 99 0.35 0.030 16.5 43 3 134 0.12 179 Pakistan 184.4 176.9 19,769 87.7 6,464 31 1.08 0.430 70.1 62 140 33 0.77 141 Sri Lanka 21.5 49.6 2,645 8.9 1,360 46 0.45 0.380 4.9 77 13 92 0.59 149 Small Island Countries Fiji 0.9 3.5 216 0.9 95 71 0.74 — 0.2 75 2 144 2.56 99 Maldives 0.4 1.9 106 0.3 — — 0.94 — — 99 1 169 2.32 104 ASTAE ANNUAL STATUS REPORT #20 Region and BasicContext First Pillar: Second Pillar: Third Pillar: Greenhouse Countries Renewable Energy Energy Efficiency Access Gas Emissions of Popula- GDP Installed Annual Installed Share of Energy Energy Popula- Electri- Annual energy- Annual per Appendixes Activity tion (WB capacity, electricity capacity, generation inten- Intensity tion fication related CO2 capita energy (EIA 2010) electricity genera- renew- using sity in the in power without rate emissions and related CO2 2010) (EIA 2008) tion able renewable economy produc- electric- (World ranking emissions (EIA 2008) (EIA 2008) (EIA 2008) (EIA 2008) tion ity Bank, (EIA 2009) and ranking (EIA 2008) (WB IEA (EIA 2009) 2010) 2010) Million Billion MW TWh MW % tCO2 / tCO2 / Million % Million Out ton / Out 57 US$ US$1,000 MWh ton of capita of GDP 189 189 Small Island Countries (cont.) Solomon 0.6 0.7 14 0.1 0 0 0.55 — 0.5 18 — — 0.53 150 Islands Samoa 0.2 0.6 41 0.1 12 46 0.36 — — 97 — — 0.77 142 Timor-Leste 1.2 0.7 — — — — 0.98 — 0.9 22 — — 0.27 157 Vanuatu 0.2 0.7 12 0.0 0 0 0.28 — 27 — — 0.53 149 0.1 World index World 6,853.0 63,123.0 4,624,767 19,103.2 1,056,413 19 0.61 0.510 1,302.1 81 30,313 — 4.47 Equiv. 69 Developing Asia Share of Total Developing 50.2% 14.9% 23.9% 23.9% 25.5% — — — 56.1% — 34.2% — — —- Asia share (%) EAP share 27.0% 11.6% 19.4% 19.1% 19.7% — — — 10.3% — 28.3% — — — (%) SAR share 23.3% 3.3% 4.5% 4.8% 5.8% — — — 45.7% — 6.0% — — — (%) Sources: • GDP: World Bank 2010 (current US$). • Electrification rate: World Bank and IEA data 2010. • CO2 emissions: EIA 2009. • Ranking of CO2 emissions: ASTAE, using EIA 2009 data. • All other indicators: EIA 2009 (or 2008 when 2009 not available). • Asia share of total: ASTAE calculations using all above-mentioned sources. Note: —Data not available. Appendix 2: Link between ASTAE Activities, Bank Projects, and ASTAE Indicators for Fiscal 2012–15 Appendix table 2-1 links the ASTAE activities and the World Bank projects that contributed to the global ASTAE indicators in the fiscal 2012–15 business plan period as discussed in chapter 3. Appendix Table 2-1: Link between ASTAE Activities, Bank Projects, and ASTAE Fiscal 2012–15 Indicators, as of FY12 Indicators World Bank Investment Renewable- Energy Access CO2 Source of ASTAE Activity leverage energy pillar efficiency pillar mitigation indicator Project (fiscal (fiscal year when active) pillar year approved) CHINA Energy Efficiency Financing Promotion (FY09 Energy US$428 - 0.59 million - 28.8 million World Bank 58 and FY11) Efficiency million tons of coal tons over Project • Draft an operations manual for IBRD loan on- Financing III equivalent 20 years Appraisal lending to Chinese banks for energy-efficiency Project – annually Document projects Additional -Annex • Determine eligibility of subprojects for fi- Financing 1-Result nancing, preparation procedures and appraisal, (FY12) Framework implementation, and general terms of subloans • Develop the monitoring and reporting sys- tem INDONESIA Geothermal Power Support Program (FY08–11) Geothermal US$574.7 150 MW and - - 22 million World Bank • Assist in review, design, and consensus build- Clean Energy million 1,208 GWh/y tons over Project ing for policy reforms in the geothermal sector Investment 20 years Appraisal • Enhance government’s capac- Project (FY12) Note: Not Note: MW (direct) Document ity to integrate Clean Development yet counted, already -Annex Mechanism in geothermal development allocated to counted Note: 1-Result • Assist in identifying and preparing geother- fiscal 12–15 under fiscal Already Framework mal projects to be financed by World Bank loan business 2007–11 counted plan business under fiscal plan, but not 2007–11 GWh business plan MONGOLIA Heating in Poor, Peri-Urban Areas of Ulaan- Ulaanbaatar US$21.94 - - 175,000 - World Bank baatar (FY08–09) Clean Air million house- Project • Technical assistance to the government to Project holds Appraisal analyze the sources of air pollution, provide (FY12) with im- Document- information on how to mitigate through cleaner proved Annex stoves, and provide suggestions for an interven- heating 1-Result tion strategy solu- Framework • The ASTAE-published report was instrumen- tions tal in gaining government and stakeholder acceptance of diagnostic and recommendations. ASTAE ANNUAL STATUS REPORT #20 Indicators World Bank IInvestment Renewable- Energy Access CO2 Source of ASTAE Activity Project (fiscal leverage energy pillar efficiency pillar mitigation indicator (fiscal year when active) Appendixes year approved) pillar PAKISTAN Natural Gas Loss Reduction (FY12) Natural Gas US$272 - 22.2 billion 240 million Calculated 59 • Assistance to the gas utility in the start-up Efficiency million cubic feet/ tons due by Task phase to ensure proper analysis and discussions Project year to the ex- Team Lead- on organizational requirements for successful (FY12) (equivalent treme GHG er from execution to what potency of World Bank • Advise on strategic execution matters and would be methane Project notably the segmentation of the network into needed over 20 Appraisal smaller units for a 350 years Document- • Provide support to pilot projects with energy- MW plant Annex efficient consumer appliances to produce 1-Result 2,820 Framework GWh/y at 92% factor) VIETNAM Support for the Energy Efficiency Demand-Side Clean US$4.15 - 0.36 million - 8.3 million World Bank Management Program (FY10–11) Production million tons of oil tons over Project • Advisory assistance and capacity building to and Energy equivalent 20 years Appraisal Ministry of Industry Efficiency per year Document • Workshops on business collaboration Project – Annex between Vietnamese and international energy (FY12) 1-Result services companies Framework • Identify opportunities for expansion of com- mercial energy-efficiency business Note: - = Not applicable. Appendix 3: ASTAE Donors, Resource Use, and Funding Events ASTAE Donors ASTAE Resource Use ASTAE currently relies on the Netherlands and Sweden ASTAE used donor funds totaling US$960,043 in FY12. as donor countries for its budget, as well as on matching Complementary World Bank resources for ASTAE- funds from the World Bank (see the section “ASTAE supported projects totaled US$1,034,339 in FY12. Resource Use” below). Previous ASTAE donors include ASTAE has used US$35.3 million in donor funds since Australia, Canada, Finland, Japan, Switzerland, the United 1992, an amount matched by the World Bank with US$33.2 Kingdom, and the United States. The United Kingdom million during the same period. Details of resource use by joined anew as an ASTAE donor in FY13 year are in appendix table 3-1. The Netherlands: Ministry of Foreign Affairs (Development Cooperation) Appendix Table 3-1: Resource Use, World ASTAE’s principal funding source is currently the Bank and Donors, FY1992–2011 Netherlands, through its Ministry of Foreign Affairs Donors World Bank Total (Development Cooperation). The Netherlands is a founding 60 YEAR US$ % US$ % US$ % donor as well as a core ASTAE donor, and since 1993 has FY92 108,000 32 226,400 68 334,400 100 contributed reliably to ASTAE’s capacity to engage in FY93 827,087 66 419,100 34 1,246,187 100 sustained activities. The funding agreement for the 2012–15 FY94 1,399,635 67 688,100 33 2,087,735 100 business plan period was signed in 2011 for US$12 million. FY95 1,309,063 56 1,046,000 44 2,355,063 100 The website for the Ministry of Foreign Affairs is http:// FY96 2,057,058 56 1,618,924 44 3,675,982 100 www.minbuza.nl/en. FY97 1,705,817 59 1,197,128 41 2,902,945 100 FY98 1,617,777 59 1,126,683 41 2,744,460 100 Sweden: Swedish International Development FY99 1,782,576 61 1,156,346 39 2,938,922 100 Agency FY00 2,627,480 63 1,524,004 37 4,151,484 100 Sweden joined ASTAE donors in 2007 and since then has FY01 955,281 46 1,106,035 54 2,061,316 100 been a regular and welcome contributor to ASTAE. The FY02 2,108,541 66 1,106,035 34 3,214,576 100 funding agreement for the 2012–15 business plan period FY03 2,205,111 64 1,239,633 36 3,444,744 100 was signed in 2011with the Bangkok office in charge of Asia FY04 1,014,358 25 3,013,893 75 4,028,251 100 for the equivalent of US$6 million. FY05 2,704,306 44 3,450,703 56 6,155,009 100 The website for the Swedish International Development FY06 1,959,983 38 3,169,070 62 5,129,053 100 Agency is http://www.sida.se/English/. FY07 1,216,589 30 2,827,968 70 4,044,557 100 FY08 1,847,757 45 2,258,369 55 4,106,126 100 FY09 2,177,200 53 1,915,042 47 4,092,242 100 FY10 2,123,893 54 1,820,321 46 3,944,214 100 FY11 2,603,947 67 1,301,789 33 3,905,736 100 FY12 960,043 48 1,034,339 52 1,994,382 100 TOTAL 35,311,502 52 33,245,882 48 68,557,384 100 ASTAE ANNUAL STATUS REPORT #20 Appendix Table 3-2: Principal ASTAE Funding Events since 2004 Year Month DONOR Event Amount (US$) 2004 March ASTAE Donors Meeting #13 March United Kingdom DFID Tranche #6 363,351 March Canada CIDA Tranche #2 563,562 May Netherlands Commitment ASTAE Phase 3 Funding 2004–06 (€ 3.3 million) October Canada CIDA Tranche #3 591,871 2005 January Netherlands Dutch Partnership Trust Fund Phase 3 Tranche #1 1,454,500 February Canada CIDA Tranche #4 202,544 March ASTAE Donors Meeting #14 May Netherlands Commitment for ASTAE II Funding 2006–08 Foreword 2006 March ASTAE Donors Meeting #15 May Netherlands BNPP Agreement signed for ASTAE II, 2006–09 July Netherlands BNPP Tranche #1, ASTAE II 2,598,540 61 2007 March Germany ASTAE Donors Meeting #16 61 Sweden Commitment by Swedish International Development Agency (SKr 15 million; equivalent to US$2,355,00) December Netherlands BNPP Tranche #2 - ASTAE II 1,113,660 2008 February United States ASTAE Donors Meeting #17 February Sweden First Tranche of Sida Commitment 553,435 June Netherlands BNPP Tranche #3 - ASTAE II 1,856,069 2009 April United States ASTAE Donors Meeting #18 February Sweden Second Tranche of Sida Commitment 436,620 June Netherlands BNPP Tranche #4 - ASTAE II 1,856,069 2010 April United States ASTAE Donors Meeting #19 January Sweden Third Tranche of Sida Commitment 389,414 June Sweden Fourth Tranche of Sida Commitment 489,256 December Netherlands ASTAE-II Trust Fund closing 2011 February Sweden ASTAE Sida Trust Fund closing February World Bank ASTAE Multidonor Trust Fund (MDTF) created March United States ASTAE Donors Meeting #20 March Netherlands Ministry of Foreign Affairs commitment to MDTF for $12 million April Netherlands ASTAE-II Trust Fund end of disbursements June Sweden ASTAE Sida Trust Fund end of disbursements July World Bank ASTAE MDTF Effective August Netherlands Netherlands Tranche #1 8,000,000 December Sweden Sida Commitment for SKr 40 million December Sweden Sida Tranche #1 2,905,625 2012 May United States ASTAE Donors Meeting #21 Note: BNPP = Bank-Netherlands Partnership Program; CIDA = Canada International Development Agency; DFID = U.K. Department for International Development; MDTF = multidonor trust fund; Sida = Swedish International Development Agency; SKr = Swedish kronor. Appendix 4: ASTAE-Supported World Bank Investment Projects in East Asia and Pacific and South Asia Appendix tables 4-1 and 4-2 list World Bank projects that have benefited from ASTAE support since its inception. Table 4-1 covers active projects and table 4-2 closed ones. The two tables provide details about ASTAE’s World Bank investment leverage. Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Sustainable Energy Project Cost (US$ million) Country Projects Approval- Primary Project End date Total Source of financing Component (estimated) cost IBRD/ IDA GEF Govt. Private Other FY12 47 Indonesia Geothermal Clean En- 07/11–FY16 574.7 175.0 274.7 125.0 Investment in geother- ergy Investment Project mal power generation capacity 46 Pakistan Natural Gas Efficiency 04/12–FY18 272.0 200.0 72.0 Reduce physical and Project commercial gas losses 45 Mongolia Ulaanbaatar Clean Air 04/12–FY17 21.9 15.0 6.9 Access to energy-effi- 62 Project cient heating stoves 44 Vietnam Clean Production and 07/11–FY16 4.1 2.3 1.8 Energy efficiency Energy Efficiency Project and energy services companies 43 China Energy Efficiency Financ- 09/11–FY17 428.0 100.0 200.0 128.0 Energy efficiency in ing III Project medium and large industrial enterprises Total FY12 1,301.5 490.0 2.3 555.4 128.0 125.0 FY10 42 Lao PDR Rural Electrification II 01/10–FY14 37.6 24.4 1.8 4.0 3.4 4.0 Increase rural households’ access to electricity 41 India Financing Energy Ef- 05/10–FY14 57.6 0.3 46.0 Increased energy ef- ficiency in SMEs 11.3 ficiency in small and medium enterprises 40 China Energy Efficiency Financ- 06/10–FY15 101.6 100.8 0.8 Catalyze commercial ing II investments in indus- trial energy efficiency 39 Vietnam System Efficiency 06/10–FY13 3.5 3.5 Renewable energy and Improvement, Equitiza- demand-side manage- tion and Renewables, ment additional financing FY09 38 Solomon Solomon Islands Sustain- 07/08–FY13 4.5 4.0 0.5 Electricity loss reduc- Islands able Energy tion and increased access 37 Philippines Additional Financing for 04/09–FY13 48.4 40.0 0.5 7.9 Renewable energy for Rural Power rural applications 36 Vietnam Renewable Energy 05/09–FY15 318.0 202.0 64.0 49.7 2.3 Increased renewable- Development energy share in elec- tricity mix, technical assistance, and lending ASTAE ANNUAL STATUS REPORT #20 Sustainable Energy Project Cost (US$million) Country Projects Approval- Primary Project End date Total Source of financing Component (estimated) cost IBRD/ IDA GEF Govt. Private Other Appendixes FY09 35 China Thermal Power Ef- 05/09–FY16 109.0 19.7 15.5 73.8 Efficient dispatch and ficiency increased thermal plant efficiency 34 Vietnam Rural Energy II - Ad- 05/09–FY16 250.6 200.0 38.8 11.8 Improved and new ditional Financing electricity access FY08 33 Indonesia Geothermal Power Gen- 05/08–FY13 9.0 4.0 5.0 Geothermal power 63 eration Development scaling up, and capac- ity building 32 China Energy Efficiency Financ- 05/08–FY13 593.6 200.0 13.5 6.3 373.8 Energy efficiency for ing industry 31 China Liaoning Third Medium 05/08–FY13 375.9 191.0 184.9 Improved efficiency Cities Infrastructure of heating and gas services 30 Vietnam Rural Distribution 05/08–FY13 204.2 150.0 54.2 3.0 Electricity network ef- ficiency improvement FY07 29 Pacific Sustainable Energy 05/07–FY16 58.5 9.5 20.2 22.1 6.7 Renewable energy Islands Financing scaling up FY06 28 Vietnam Rural Energy II 11/04–FY14 329.5 220.0 5.3 70.0 35.0 Renewable energy for remote communities 27 China Heat Reform and Build- 03/05–FY14 52.6 0.9 33.7 Energy efficiency ing Efficiency 18.0 FY05 26 Philippines Rural Power 12/03–FY13 26.7 10.0 9.0 0.2 7.5 Renewable energy for rural applications 25 Philippines Power System Loss 06/04–FY14 62.3 0.3 50.0 Rural electrification Reduction 12.0 and efficiency FY04 24 Vietnam System Efficiency Im- 06/02–FY13 24.5 17.2 4.5 2.8 Renewable energy and provement, Equitization demand-side manage- and Renewables ment total ALL Projects Under Implementation 3,969 1,853 111 1,024 731 253 Note: GEF = Global Environment Facility; IBRD = International Bank for Reconstruction and Development; IDA = International Development Associa- tion; PDR = People’s Democratic Republic; SME = small and medium enterprises. Appendix Table 4-2: PAST ASTAE-Supported World Bank Investment Projects Sustainable Energy Project Cost (US$million) Country Projects Approval- Primary Project Total Source of financing End date Component cost (estimated) IBRD/ GEF Govt. Private Other IDA Total for Closed Projects 1,292 305 142 232 463 145 Mongolia Renewable Energy and Rural Electric- 01/07–06/12 23.0 3.5 3.5 10.0 6.0 Renewable energy and ity rural electricity access Timor-Leste Gas Seep Harvesting 03/07–12/11 1.5 0.9 0.6 Gas seep for power genera- tion Timor-Leste Energy Service Delivery 06/07–06/12 8.5 4.5 2.0 2.0 Loss reduction, renewable- energy development, and community-based access China Renewable Energy Scale-Up Program 01/06–12/11 132.4 86.3 30.1 16.0 Wind farm and small hydro P1 Lao PDR Lao PDR Rural Electrification (SPRE II) 04/06–03/12 36.3 10.0 3.7 8.2 14.3 Renewable energy for rural application 64 Cambodia Rural Electrification and Transmission 12/03–01/12 32.0 16.0 5.8 10.2 Renewable energy for rural applications Papua New Teachers Solar Lighting Project 06/05–08/10 2.9 1.0 0.1 1.7 0.1 Renewable energy (pho- Guinea tovoltaic) for teachers in rural areas China Renewable Energy Scale-Up Program 06/05–09/10 336.0 87.0 40.2 42.0 67.0 Renewable energy and energy efficiency Vietnam Demand-Side Management 06/03–06/10 18.6 5.5 1.2 6.7 5.2 Demand-side management support China Energy Conservation II 10/02–06/10 242.5 26.0 216.5 Energy services company market development China Hebei Urban Environment 06/00–06/08 5.0 4.0 1.0 Energy efficiency in water utilities Vietnam Rural Energy I 05/00–12/06 2.5 1.0 1.5 Renewable energy, techni- cal assistance, and pilot mini hydro China Renewable Energy Development 01/98–06/07 205.4 13.0 27.0 165.4 Wind farms, photovoltaic, photovoltaic technology improvement Vietnam Transmission, Distribution, and Disas- 01/98–06/07 3.3 0.5 2.8 Demand-side management, ter Reconstruction capacity building, equip- ment standards China Energy Conservation 03/98–06/06 150.8 63.0 22.0 7.0 54.3 4.5 Energy efficiency, technical assistance China Passive Solar Heating for Rural 06/01–06/04 1.5 0.8 0.8 Energy-efficient building Health Clinics design Lao PDR Southern Provinces Rural Electrifica- 03/88–06/04 2.2 1.0 0.7 0.5 Solar battery charging and tion micro hydro projects Thailand Metropolitan Distribution Reinforce- 06/97–06/04 4.0 2.5 1.5 Demand-side management, ment capacity building ASTAE ANNUAL STATUS REPORT #20 Sustainable Energy Project Cost (US$ million) Country Projects Approval- Primary Project Total Source of financing End date Component cost (estimated) IBRD/ GEF Govt. Private Other IDA Indonesia Solar Home Systems 01/97–06/04 3.4 0.1 2.3 1.0 Solar home systems and technical assistance Vietnam Power Development 02/96–06/00 1.6 0.5 1.1 Renewable-energy capacity building Indonesia Second Rural Electrification 02/95–09/00 19.3 13.3 6.0 Mini hydro, geothermal resource assessment Thailand Distribution System and Energy 04/93–06/00 59.3 8.0 20.3 31.0 Demand-side management, Appendixes Efficiency capacity building Lao PDR Provincial Grid Integration 10/92–01/00 0.9 0.9 Demand-side management, institution building Note: GEF = Global Environment Facility; IBRD = International Bank for Reconstruction and Development; IDA = International Development Association; PDR = People’s Democratic Republic. 65 66 ASTAE ANNUAL STATUS REPORT #20 Foreword 67 68 The World Bank The World Bank Group Asia Sustainable and Alternative Energy Program 1818 H Street NW Washington, DC 20433 USA www.worldbank.org/astae