61148 The World Bank Asia Sustainable and Alternative Energy Program ASTAE Annual Status Report 18 Fiscal Year 2010 July 1, 2009 – June 30, 2010 © 2010 The International Bank for Reconstruction and Development/The World Bank Group 1818 H Street NW Washington, D.C. 20433 All rights reserved First printing: December 2010 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 © ASTAE Photo credits: Cover photo, pages i, iv, 18, 30, 32, 34, 40, 44, 48, 54, 89 iStockphoto; pages 6 Frederic Asseline, 28 Michael Wild, 36 Shawna Fei Li, 38 Shawna Fei Li, 40 Yan Li, 46 and 50 Frederic Asseline, 62, 80 Yan Li, and inside covers Frederic Asseline; pages ii, 52, 76 Hung Tien Van; page 56 Egis; page 42 Tiare Scott, Flickr; page 60 Ricky Qi, Flickr Design: Marti Betz Design Contents Acronyms, Abbreviation, and Units of Measure i 3. ASTAE Performance Assessment - Fiscal 2007-10 Extended Business Plan 62 Foreword iii ASTAE Activities and Disbursements in Business Plan Period 2007–10 63 Executive Summary 1 Status of 2007–10 Performance Indicators 68 ASTAE at a Glance 1 ASTAE-Supported World Bank Operations ASTAE-Supported Activities in Fiscal 2010 2 in Fiscal 2010 73 Program Outputs and Impacts Over the Fiscal 2007-10 Extended Business Plan Period 4 4. Outlook for ASTAE, Fiscal 2011 and Beyond 76 ASTAE Indicative Pipeline for Fiscal 2011 77 1. Overview of the ASTAE Program 6 Staffing and Upcoming Funding Periods 78 Why ASTAE? 7 Objectives and Delivery Mechanisms of ASTAE 10 Appendixes 80 Performance and Targets 14 Appendix 1: ASTAE Countries at a Glance: Region Map and Pillar-Related Statistics 81 2. ASTAE-Supported Activities during Fiscal 2010: Appendix 2: Link between Bank Projects and ASTAE Expenditure and Country Updates 18 Indicators in Fiscal 2010 84 ASTAE Disbursements and Activities in Fiscal 2010 19 Appendix 3: ASTAE Donors, Resource Utilization, and Cambodia 28 Funding Events 90 China 30 Appendix 4: ASTAE-Supported World Bank India 34 Investment Projects in East Asia and the Pacific 94 Indonesia 36 Lao PDR 40 Mongolia 42 Pacific Island Countries 54 Philippines 48 Timor-Leste 50 Vietnam 52 Regional Projects, Outreach and Knowledge- Sharing Activities 56 ASTAE Publications in Fiscal 2010 61 Boxes, Figures, Tables, Appendix Tables Boxes Tables Box 1-1: ASTAE’s Cooperation with Other World Bank Table 2-1: Major Disbursement Categories 17 Trust Funds 9 Table 2-2: Detail of ASTAE Activities and Disbursements, Appendix Box 3-1: Extract from Dutch Development FY2010 23 Cooperation Policy Note, 2007–2011 91 Table 3-1: Disbursements, by Countries over the Business Plan Period 64 Figures Table 3-2: Cumulative Renewable Electricity Capacity Figure 1-1: Interlinking Objective, Pillars, and Approaches 12 Added, by Country, FY2007–10 68 Figure 1-2: Management Structure 14 Table 3-3: Cumulative Electricity Savings, by Country, Figure 1-3: ASTAE Influence and Impacts at Different Levels 15 FY2007–10 69 Figure 2-1: STAE Resource Mobilization, by Origin of Funding 20 Table 3-4: Households with Access to Modern Energy Figure 2-2: FY2010 Disbursements, by ASTAE Pillar 21 Services, by Country, FY2007–10 70 Figure 2-3: FY2010 Disbursements, by ASTAE Approach 22 Table 3-5: CO2 Mitigated, by Country, FY2007–10 71 Figure 2-4: FY2010 Disbursements, by World Bank Activity 22 Table 3-6: Summary of 2007–09 Business Plan Targets, Figure 2-5: FY2010 Disbursements, by Country 26 Pledged and Achieved 72 Figure 2-6:Lao PDR Remarkable Electricity Access Growth 40 Figure 2-7: Policy Tools Need to Be Tailored to Maturity Appendix Tables and Costs of Technologies 58 Appendix Table 1-1: Background Data Providing Context to Figure 3-1: Evolution of Annual Disbursements and ASTAE Pillars 82 Comparison with Business Plan Budget 63 Appendix Table 2-1: Link between Bank Projects and Figure 3-2: Disbursements, by Country and Financial Year 65 ASTAE Indicators, FY2010 84 Figure 3-3: Fiscal 2007–10 Disbursements, by ASTAE Pillar 66 Appendix Table 3-1: Resource Utilization, World Bank Figure 3-4: Renewable Energy Disbursements, by Country 66 and Donors, FY1992–20010 92 Figure 3-5: Energy Efficiency Disbursements, by Country 67 Appendix Table 3-2: Principal ASTAE Funding Events Figure 3-6: Access Disbursements, by Country 67 since 2001 93 Appendix Figure 1-1: Presence in South Asia, East Asia Appendix Table 4-1: ASTAE-Supported World Bank and Pacific Countries 81 Investment Projects 94 ASTAE ANNUAL STATUS REPORT #18 Acronyms, Abbreviation, and Units of Measure AFREA Africa Renewable Energy Access IEA International Energy Agency APL Adaptable Program Loan IS Improved services ASTAE Asia Sustainable and Alternative Energy Program km Kilometer BCC (private) Biodigester Construction Company KP Knowledge products (WB internal abbreviation) BEE Bureau of Energy Efficiency kWh Kilowatt hours BNPP Bank-Netherlands Partnership Program LED Light-emitting diode CDM Clean Development Mechanism PDR (Lao) People’s Democratic Republic CIDA Canada International Development Agency M&E Monitoring and evaluation CO2 Carbon dioxide MDTF Multi-donor trust fund CRESP China Renewable Energy Scale-Up Program MEMR Ministry of Energy and Mineral Resources CTF Clean Technology Fund MSME Micro, small, and medium enterprise DECDG Data Group of Development Economics MW Megawatt DFID Department for International Development (UK) NGO Nongovernmental organization DSM Demand-side management O&M Operations and maintenance EAP East Asia & Pacific Region OECD Organisation for Economic Co-operation and Development EASIN World Bank East Asia and Pacific Infrastructure Unit PIC Pacific Island country EC Electricity cooperative PNG Papua New Guinea EE Energy efficiency PPIAF Public-Private Infrastructure Advisory Facility EdL Électricité du Laos PV Photovoltaic(s) EIA Energy Information Administration RE Renewable energy (U.S. Department of Energy) REDP (Vietnam) Renewable Energy Development Program ESMAP Energy Sector Management Assistance Program SAR South Asia Region FY Fiscal year SEFP Sustainable Energy Finance Project (Pacific Islands) GDP Gross domestic product SIDA Swedish International Development Agency i GE Global Environment Facility Grant (WB internal abbreviation) SIEA Solomon Island Electricity Authority GEF Global Environment Facility SKr, SEK Swedish krona GHG Greenhouse gases SMEs Small and medium enterprises GoC Government of China SNV Netherlands Development Organization GoI Government of India t Ton (metric) GoI Government of Indonesia TA Technical assistance GPOBA Global Partnership on Output-Based Aid TF Trust fund GWh Gigawatt-hour TWh Terawatt-hour IBRD International Bank for Reconstruction and Development W Watt IDA International Development Association WB World Bank ii Over the past four years of the extended business plan period 2007–10, ASTAE supported 17 World Bank projects WITH A total lending in these projects BEING around US$2.2 billion. ASTAE ANNUAL STATUS REPORT #18 Foreword Although AsiaN COUNTRIES have made significant strides in promoting access to electricity and in expanding sustainable energy, many challenges remain at in- dividual country levels, notably in terms of energy access and moving energy policies to low-carbon pathways. In fiscal 2010, ASTAE continued to fulfill its role of operational- ASTAE’s support has been very useful in helping client Foreword izing the energy strategy of the East Asia and Pacific Region. countries begin the process of operationalizing policies to The regional team has recently completed a flagship report, promote low -carbon pathways within the framework of green Winds of Change: East Asia’s Sustainable Energy Future, and growth. These policies center around developing mechanisms is finalizing a second flagship report—Two Paths, One Goal: that enable Asian countries to continue their rapid economic iii Energy Access in East Asia and Pacific. Based on the con- growth while maintaining harmony between economy and sultations conducted during the preparation of the flagship environment. More specifically, the objectives are to promote reports and their findings, six priority areas of focus in the en- economic growth while reducing emissions, minimize ergy sector in the coming years were identified for the region: waste and inefficient use of natural resources, and maintain scaling up renewable energy, improving energy efficiency, biodiversity—all ideas that are fully consistent with ASTAE’s increasing access to energy, introducing new technologies three pillars and cross-cutting themes. and low-carbon energy solutions, promoting regional energy Support from the donor community is of the utmost value in trade and market integration, and advancing sector reforms supporting projects and programs that address the challenges and financial viability. above. We wish to express our great appreciation to the government of the Netherlands and the Swedish International Over the past four years of the extended business plan Development Cooperation Agency, and look forward to their period 2007–10, ASTAE supported 17 World Bank projects continued support to meet the challenges ahead. We also that focused on the above areas. The total lending in these welcome participation of other interested donors in these projects was around US$2.2 billion, which points to a exciting and topical programs, as Asian countries grapple with substantial leveraging ratio for ASTAE funding: every dollar the challenges of how best to implement a low-carbon, green of donor resource provided to ASTAE resulted in US$298 in -growth strategy while also ensuring energy services for their World Bank-related financing. As a result, ASTAE succeeded populations. in substantially exceeding its targeted impact indicators (such as increase in renewable energies, energy saving from improvement of energy efficiency, increased or improved N.Vijay Jagannathan access, greenhouse gas emission reduction, and well diversified support to countries). Although countries of East ASTAE Program Manager/Sector Manager Asia and the Pacific have overall made significant strides in Infrastructure Unit promoting access to electricity and in expanding financially Sustainable Development Department sustainable services, many challenges remain at individual country levels, notably in terms of energy access and East Asia and Pacific Region moving energy policies to low-carbon pathways. The World Bank iv The ASTAE program rests on three pillars—renewable energy, energy efficiency, and access to energy ASTAE ANNUAL STATUS REPORT #18 Executive Summary ASTAE At A Glance Executive Summary n Created in 1992, the Asia Sustainable and n The ASTAE program rests on three pillars— Alternative Energy Program (ASTAE) has been renewable energy, energy efficiency, and instrumental in moving the World Bank East Asia access to energy—with progress measured by and Pacific Region portfolio toward sustainable impact indicators: energy. • New MW and GWh of renewable energy; 1 n Embedded in a regional unit to maximize its • GWh avoided through energy leverage and operational impact, the program efficiency; covers South and East Asia client countries. • Number of household connections to improved energy sources; and n ASTAE works in close cooperation with the • Avoided CO2 emissions. Energy Sector Management Assistance Program (ESMAP) and other World Bank Trust Funds. n ASTAE funds Bank-executed activities and will soon fund recipient-executed activities. n Current donors countries are The Netherlands and Sweden. Past donors include Australia, Canada, Finland, Japan, Switzerland, the United Kingdom, and the United States. Executive Summary ASTAE-Supported Activities in Fiscal 2010 Overview of ASTAE Activities Highlights in Fiscal 2010 The Asia Sustainable and Alternative Energy Program (ASTAE) Of the 21 activities that were funded by ASTAE in fiscal was created in 1992 as a Global Partnership Program (GPP). Its 2010, the following are highlighted to represent the range mandate is to scale up the use of sustainable energy options of activities supported by the program, and to explain the in Asia to reduce energy poverty and protect the environment. relevance of their focus areas that contribute to achieving Achieving this objective rests on promoting ASTAE’s three ASTAE’s overall mission. All activities that registered significant pillars for sustainable development: renewable energy, energy disbursements in fiscal 2010 are described in chapter 2. efficiency, and access to energy. The program has been In Indonesia, the Geothermal Power Support Program activity instrumental in increasing the share of sustainable energy continued to provide support to a World Bank team helping projects in the World Bank energy portfolio in Asia; it has been the government undertake major reforms to enhance the especially successful in the East Asia and Pacific Region (EAP). investment climate in its geothermal sector while helping Today, ASTAE covers client countries in the EAP with renewed stimulate rapid investments by supporting developers that engagement in the South Asia Region (SAR). ASTAE is focused are at an advanced stage of project preparation. This is aimed on downstream and operations-oriented activities that directly at multiplying by six the geothermal power capacity to a support and enhance World Bank lending projects related to 2 total of 6,000 MW by 2020. Following successful support in the three ASTAE pillars. fiscal 2009, ASTAE funding was extended into fiscal 2010 to ASTAE objectives, history, delivery mechanism, indicators, and scale up policy dialogues and the Bank’s advisory support targets are described in chapter 1. to the government, in particular to develop a pricing and compensation policy for geothermal development. ASTAE grants provided follow-up work on carbon finance with training Overview of Disbursements in Fiscal 2010 of ministry staff and consensus building among stakeholders and with drafting of an operations manual. Finally, ASTAE During fiscal 2010, ASTAE disbursed a total of US$2,123,893 — helped support project developers’ capacity to prepare and a result essentially stable from the previous year. This provided undertake geothermal investments that meet industry good funding for 21 activities in 12 countries. practice standards. All of these substantially helped the ASTAE disbursed US$1,726,905 toward project implementation timely delivery of the World Bank project on schedule, which in fiscal 2010, or 81.3 percent of its total disbursements; the increased the likelihood that the government will meet its remainder of the budget was used to cover administrative targets. The ASTAE-supported Geothermal Clean Energy and reporting costs. Disbursements reflected a good balance Investment Project is expected to receive a US$125 million among all three pillars in terms of number of activities, with allocation from the Climate Technology Fund. slightly more emphasis on renewable energy and access to The Regional Carbon Mitigation in Road Construction and energy (around forty percent each). Rehabilitation Toolkit activity focuses on energy efficiency Also in fiscal 2010, ASTAE continued its active involvement in in the transport sector. Over the next decade, developing priority countries, with 39 percent of its allocations to China, countries in Asia will be substantially expanding and restoring Indonesia, and Vietnam (figure 2-5). Indonesia received the their extensive highway networks. Many steps involved in most funding—US$326,323, or 19 percent of total activity- road construction contribute to the production and release related disbursements. of greenhouse gas emissions, which vary with the types and specifications of roads and construction methods. The Toolkit, known as Roadeo, with the support of a User Manual, will guide users through various stages and activities of road ASTAE ANNUAL STATUS REPORT #18 Executive Summary ASTAE-Supported Activities in Fiscal 2010 construction and rehabilitation, help them identify areas dependence on biomass fuels, and second, providing improved sensitive to greenhouse gas emissions, and present various access to modern fuels, particularly electricity, to all segments mitigation options, with cost and benefit implications noted. of the rural population. ASTAE financed an assessment of rural Roadeo lets decision makers, designers, and technicians and renewable energy options, with complete technological and in the highway sector easily compare various alternatives economic analyses of the different options, and identified and in construction, and optimize their practices to maximize prepared the design of practical solutions for implementing its energy efficiency (EE). It focuses on China, Indonesia, and recommendations Vietnam, countries that are undertaking large programs of road In India, the Energy Efficiency in MSMEs activity focuses on the expansion, but is relevant for many countries across Asia. It nearly 3 million micro, small, and medium enterprises (MSMEs), Summary has already garnered a high level of interest from the transport that constitute more than 80 percent of the country’s industrial community, ahead of its expected delivery early in 2011, and enterprises. Many of these are energy intensive, employing will be presented at high-level international symposia. Roadeo Foreword inefficient and outmoded technologies and modalities. The Executive is expected to be used in Bank operations as well as directly by MSME activity supports the preparation of a World Bank client countries. It also will be very relevant in countries with project that addresses the barriers to implementation of EE rapidly growing economies in other regions. measures in those MSMEs. ASTAE funding was used to identify The Regional East Asia Pacific Flagship Study activity, a subgroup of industrial MSME clusters and pilot the selection 3 highlighting the prospective energy-sector challenges in the and implementation modalities to be employed for later project- region and how to meet them, was delivered and disseminated wide replication. This meant identifying pilot clusters, finding a during a wide range of national consultations to academics, focal organization in each selected cluster, providing training to policy researchers, government officials, nongovernmental the focal organizations, supporting project pipeline development, organizations (NGOs), civil society, the private sector, and and establishing local monitoring and evaluation (M&E) systems. donors. The study and consultations contributed to developing This pilot work, which includes cluster mobilization, pilot-unit- and prioritizing project pipelines in the EAP infrastructure level audits, and project report preparation for investments, sector. The study finds that it is within the reach of the resulted in pre-identification of eight projects, representing region’s governments to maintain economic growth, mitigate more than US$2.9 million in energy-efficiency and fuel-switching climate change, and improve energy security. In other words, investment, with payback periods ranging from 5 to 20 months. simultaneous large-scale deployment of EE and low-carbon This helped kick-start project implementation by proceeding technologies can stabilize EAP’s CO2 emissions by 2025, ahead of schedule with detailed specifications analysis with significantly improve the local environment, and enhance vendors and with financing mobilization activities. energy security—without compromising economic growth. The flagship study identified the World Bank EAP energy However, the study also warns that the window of opportunity business strategy focusing on energy efficiency, renewable is closing quickly, as delaying action would lock the region energy, and new technologies. This reaffirms ASTAE’s into a long-lasting high-carbon infrastructure. The study relevance as a major instrument to support increased Bank recommends that the region’s governments take immediate lending and improved policy changes in the region. This aligns action to transform the energy sector toward much higher with the commitment of the World Bank Group (WBG) to energy efficiency and widespread utilization of low-carbon scaling up policy advice, sharing knowledge, and financing technologies. sustainable energy to help client countries make such a shift. In Timor-Leste, the Rural Energy Access and Efficiency activity aimed at helping the government tackle two key rural energy sector challenges: first, addressing the potentially serious health and environmental problems associated with continued heavy Executive Summary Program Outputs and Impacts in Fiscal 2007–10 The original 2007-09 business plan period was extended into The India Financing Energy Efficiency in Micro, Small, and fiscal 2010. By the end of fiscal 2010, the total donor resources Medium-Sized Enterprises Project was presented to the engaged by the ASTAE program during the fiscal 2007–10 Board of Directors in April 2010 as a US$57 .6 million Global extended business plan period reached US$8.5 million, Environment Facility (GEF) project. The project will begin with including disbursed funds and committed expenditures. This technical assistance that will increase awareness of energy represented 92 percent of the US$9.3 million budget provided efficiency on a large scale at cluster and plant level. It will also by ASTAE donors, i.e., the Netherlands and Sweden, under increase the capacity of energy auditors, financial consultants, the extended business plan period. A detailed analysis of the chartered accountants, vendors, service providers, and local outputs and impacts of the 2007-10 extended business plan banks through training programs and other efforts to build period is provided in chapter 3. internal capacities. Finally, it will support the uptake of risk- mitigation instruments, such as guarantees, that are currently available on the Indian market. The project will also provide ASTAE-Supported World Bank Projects grant support to cover the “soft costs” of an initial pipeline in Fiscal 2010 of about 500 projects, including at least 1,000 initial project assessments. Over the four years of the extended business plan period, 17 4 The Lao PDR Rural Electrification Phase II was presented World Bank projects that promoted sustainable energy and that to the Board in January 2010 for a total of US$35.8 million. have benefited from ASTAE support were approved. The total Following key triggers met by 2009, phase two of this lending in these projects amounted to just over US$2.2 billion. Adaptable Program Loan project began with further expansion This lending, focused on developing sustainable energy, was of access to on- and off-grid electricity supply to 106,000 rural enabled or facilitated by ASTAE support and illustrates ASTAE’s households targeted. It will focus on final implementation leverage on World Bank lending. In short, over the four years of the sustainability action plan to achieve its final targets, of the extended business plan period, every dollar of donor that is, scale-up of the alternative generation technologies resource disbursed by ASTAE resulted in US$298 in World and alternative delivery models for both on- and off-grid rural Bank-related loans or grants (details provided in chapter 2). electrification (RE) piloted during phase one; and scale-up Four such ASTAE-supported World Bank projects were of the demand-side management program throughout the approved in fiscal 2010 for a total of US$199 million and will be country. implemented over the next five fiscal years. The Vietnam System Efficiency Improvement, Equitization, The China Energy Efficiency Financing II Project was approved and Renewable Additional Financing was presented in May in June 2010 for a total of US$101.6 million. The project is a 2010, for US$26.1 million, to complete what was targeted financial intermediary lending operation, whereby Bank loans in the original project: system efficiency improvement, will be on-lent by China’s Ministry of Finance, on the same including demand-side management activity; improved rural financial terms and conditions, and with no interest rate energy access; improvement of sub-transmission systems; subsidy, to a participating local financial institution. The project rehabilitation of small hydropower; development of off-grid or will finance only EE rehabilitation subprojects. This will catalyze mini-grid supply using renewable energy; and sector reform EE lending and help the local finance institution develop and and institutional development. The objectives of the additional sustain that business line by building on its sector knowledge financing are to continue enhancing electricity system and client base. Furthermore, a very high average leverage efficiency, help improve power quality in selected rural areas, ratio is expected to lead to US$1 billion allocated to energy and sustain the reform and institutional development of the efficiency over the project period. country’s energy sector. ASTAE #18 ANNUAL STATUS REPORT #17 Executive Summary Program Outputs and Impacts in Fiscal 2007–10 Indicators and Progress against in Cambodia and Timor-Leste. The largest contribution was Business Plan Targets provided by the rural electricity energy project in Vietnam. Direct targets have been met, with ASTAE-supported World ASTAE tracks a set of indicators showing the trajectory of its Bank projects financing improved services to two million impact in supporting sustainable energy development. The households (four times the target of 500,000) and new indicators were chosen to convey the predominant trend within access to modern energy services to an additional 648,450 each pillar. For each new World Bank project that receives households (130 percent of the target of 500,000). ASTAE support and is presented to the Board of Executive Directors, the impact indicators are accumulated over the Indicator 4: Avoided greenhouse gas emissions. This indicator Summary business plan period to produce the aggregated indicators estimates the quantity of CO2 emissions that would be described below. These are discussed further in chapter 3. avoided over 20 years (the conventional lifespan of projects or equipment) through ASTAE-supported World Bank projects. Foreword Indicator 1: New capacity and increased generation of The CO2 targets have been met. The direct impact value is Executive renewable electricity. By supporting projects that directly estimated at 114 million tons of CO2, or 163 percent of the facilitate investments, ASTAE activities led to increased original target, and the indirect savings are estimated to be capacity and generation from renewable sources, primarily 1,097 million tons of CO2, or 141 percent of the target. wind power in China and geothermal power in Indonesia. These 5 projects, once implemented, are expected to directly install Indicator 5: Countries benefiting from ASTAE support. This 1,030 MW of renewable energy that will generate 1,579 GWh indicator ensures that ASTAE resources are used in a balanced every year—158 percent of the original ASTAE target. manner across all ASTAE countries, giving equal funding opportunities to large countries (Indonesia, China, and Vietnam) Indicator 2: Electricity savings resulting from efficiency as well as to smaller countries (Pacific Islands). ASTAE financed improvements. Annual savings estimates are calculated activities in 13 countries and many regional activities. based on direct savings through World Bank loans. The ASTAE business plan’s targets for both direct and indirect annual electricity savings have been exceeded. Direct savings will be 1,586 GWh annually—150 percent of target. Most results are achieved in Vietnam and China. Indicator 3: Households with access to modern energy services. Access to electricity remains the major component of the indicator, but space heating is also represented in Mongolia, as well as improved cooking stoves and biogas 6 1 ASTAE ANNUAL STATUS REPORT #18 1. Overview of the ASTAE Program 1. Overview of the ASTAE Program During the last two decades, Asia recorded exceptional economic growth, lifting millions of people out of poverty and emerging as one of the world’s major eco- nomic engines alongside Europe and North America. As a consequence of this growth, many countries in the 400 million of them in India. Similarly, over 70 percent of region have experienced high and accelerating fossil fuel 2.3 billion people that still rely on biomass for cooking live in consumption. This has led to substantial growth in the carbon developing Asia. The lack of access to modern energies hinders dioxide (CO2) emissions that make up the largest share of human and economic development opportunities, puts an greenhouse gases. Yet at the same time, hundreds of millions often unsustainable pressure on local natural resources, and of people in the region still lack access to modern energy contributes to local and global pollution. The human cost is services and cannot enjoy the related health, social, and real: the World Health Organization estimates that 600,000 7 economic benefits that could improve their quality of life. premature deaths annually are related to cooking using biomass in the East Asia region alone. The gender dimension of that sobering fact should also be noted, as cooking-related Why Astae? indoor air pollution disproportionately affects women and children. According to the U.S. Department of Energy’s Energy Information Administration (EIA), which tracks world energy These access and consumption issues have led the world statistics, the Asia and Pacific region’s CO2 emissions from community to engage in expanding the utilization of renewable consumption of energy increased 68 percent between 2000 energies while promoting a more efficient utilization of energy and 2008—more than two times faster than the world average. in general, and to call for universal access to modern energies. While there are other sources of greenhouse gas emissions, These issues constitute the three pillars on which ASTAE it is commonly acknowledged that the utilization of fossil-fuel- builds its development work. based energy remains by far the largest and central origin of emissions. With 128 percent growth during this period, China Brief History, Challenges, Beneficiaries, and became in 2007 the world’s largest source of CO2 emissions, Donors ahead of the United States. In 2008, it emitted 6.5 billion The Asia Sustainable and Alternative Energy Program (ASTAE) tons—21 percent of the world’s total. Today, while Vietnam, was established in 1992 by international donors as a three- Indonesia, Thailand, and India are still far behind in terms of year pilot program with the objective of “mainstreaming” absolute greenhouse gas emissions, their emissions growth alternative energy in the World Bank’s lending and technical rates are much higher than the world average. assistance operations in the South Asia and East Asia and However, the growing consumption of energy is not evenly Pacific Regions. distributed among households across the world. Accessing ASTAE grew out of the Financing Energy Services for Small and consuming modern energies remain very concentrated Scale Energy Users (FINESSE) Project, initiated in 1989 by the both among and within countries. While the access challenge Energy Sector Management Assistance Programme (ESMAP) might seem greatest in Africa, the sheer size of Asia’s and bilateral donors, including the U.S. Department of population indicates that it cannot be ignored. The United Energy, the Netherlands Directorate General for Development Nations estimates that more than half of 1.4 billion people Corporation (DGIS), and the United Nations Development are still without access to electricity live in developing Asia, Programme (UNDP). ASTAE’s original target was to increase the share of alternative As ASTAE’s funding and scope expanded, measuring its reach energy in Bank lending to the power sector in Asia to 10 and impact became more challenging; a broad set of indicators percent of total power sector lending. This goal was achieved was designed to assess progress toward fulfilling its three during the fiscal 1997–2000 business plan period. ASTAE’s pillars. These sustainable energy indicators—access to modern life was extended by mutual agreement among the Bank and energy services, increased use of renewable energy, and donor countries. It was redefined from a unit to a program improved energy efficiency (described later in this chapter)— in 1998, and has been merged with the East Asia Energy and track progress made through ASTAE activities, both as a direct Mining Development Sector Unit, while continuing to provide result of related World Bank loans and as an indirect result of support to South Asia. ASTAE-funded technical assistance to country stakeholders. Leverage on Bank Operations Achievements and Beneficiaries ASTAE’s original task to promote the utilization of alternative Since its inception, ASTAE has directly contributed, through energy included energy efficiency and renewable energy, its leverage on World Bank-funded projects, to installing about which formed ASTAE’s two original pillars. To ensure a strong 1,900 MW of renewable energy—nearly the equivalent of the operational focus, ASTAE was implanted directly into the combined installed capacity of the Lao People’s Democratic regional operation level rather than at the central level Republic, Mongolia, and Cambodia (EIA 2007). It has helped avoid the generation of about 65 TWh of electricity through ASTAE began its work by providing supplemental funding 8 energy efficiency, the equivalent of Vietnam’s total generation to forward-looking World Bank Task Team Leaders eager to in 2007 . It has also contributed to providing new access to undertake small peripheral tasks to help address alternative modern energy to more than 2.5 million households in Asia, energy-related issues encountered during the development or about the equivalent of the population of Cambodia (13.5 of their projects. This was often done through the addition of million people with an average household size of 5.3). an alternative energy-specific component to a broader energy project. As these ASTAE-funded activities increased in number These quantifiable achievements have resulted in substantial and delivered positive impacts on regional development mitigation of global greenhouse gas emissions, as well as objectives, renewable energy and energy efficiency activities significant decreases in local pollutant emissions that directly eventually became standalone projects as opposed to and adversely affect the health of the local population. components of a project. These projects were often supported Estimates indicate that the projects ASTAE has supported by Global Environment Facility (GEF) financing. ASTAE’s to date will prevent the emission of 360 million tons of CO2 operational success led its donors to replenish the trust fund over the projects’ 20-year lifetimes, equivalent to the 2008 at the end of each business plan period. Alternative energy, a emissions of Thailand and Vietnam combined. fringe activity when ASTAE was created, has evolved into one Furthermore, during the scale-up phase of the last six years, of the Bank’s main lending themes, exceeding 40 percent of ASTAE’s indirect impact, through its influence on country energy commitments in fiscal 2009. stakeholders’ investment decisions, has had an even wider reach. While ASTAE is only one of many players at the country level, it contributed to concerted efforts focusing on renewable Scale-Up and Expansion energy development that led to an additional 17 ,000 MW In 2002, ASTAE started a scale-up phase. Scaling up entailed installed in the region, and additional potential energy savings continuing its mission of mainstreaming alternative energy, as of up to 50 TWh annually—the equivalent, respectively, of the well as expanding its reach from within the World Bank to the Philippines’ total installed capacity and annual generation in client countries’ stakeholders themselves, and broadening its 2007 . core business from alternative energy to sustainable energy by adding a third pillar—access to modern energy services— designed to address energy poverty and its impact on the environment. Scaling up also meant departing from project- to-project activities to a more programmatic approach at the sector or country scale. During this transition, ASTAE focused primarily on the East Asia and Pacific Region. ASTAE ANNUAL STATUS REPORT #18 BOX 1.1 ASTAE’s Active Cooperation with Other World Bank Trust Funds ASTAE actively coordinates with other World Bank trust funds covering Asian countries. It seeks to avoid overlapping efforts, as 1. Overview of the ASTAE Program well as to ensure that funds from donors are coordinated to complement each other and improve aid effectiveness in the energy sector in order to ensure optimal services to the client countries. The Energy Sector Management Assistance Program (ESMAP) is the main trust fund with which ASTAE cooperates on a regular basis. ESMAP funds can provide support to upstream analytical and advisory activities that help determine a client country’s overarching strategy, or identify a specific sector issue for which ASTAE can provide funding to adapt the analysis to operational requirements and support preparation of a corresponding World Bank project. For example, ESMAP will support upstream work, such as broad policy and technical studies, that may not necessarily be linked to a country program, yet may provide knowledge and suggest potential directions for policy dialogue. ASTAE then follows up, relays, and helps operationalize the results of ESMAP’s upstream work. Furthermore, ASTAE supports downstream work and country op- 9 erations such as lending and grant projects. ESMAP and ASTAE sometimes work together to incorporate results and build project pipelines, where ESMAP’s global knowledge and upstream work must be applied to develop and prioritize projects in the country program. Upstream Analytical Work ESMAP Policy Dialogues / Advisory Services / Building Project Pipelines ESMAP ASTAE Downstream Projects Preparation and Operations ASTAE Other important trust funds with which ASTAE cooperates, either directly in cofinancing or in parallel financing, include the GEF, the Public-Private Infrastructure Advisory Facility (PPIAF), the Clean Technology Fund (CTF), and the Global Partnership on Output-Based Aid (GPOBA). Cross-regional ties are also being established with Africa Renewable Energy Access (AFREA), a trust fund similar to ASTAE established in 2009. Objectives and Delivery Mechanisms coal, and dung. Unlike for electricity, the numbers are almost of ASTAE evenly split between East and South Asia, showing that the scale and importance of the cooking fuel challenge has not ASTAE’s stated objective is to scale up the use of sustainable yet been perceived by the authorities. Consequences are real energy options in Asia to protect the environment and reduce however, from health, gender and environmental points of energy poverty. view, including contribution to premature deaths, especially among women, increased local pollution, and contribution to Three Pillars to Support Sustainable global warming through emission of black carbon. Moreover, Development population growth can stretch the demand for traditional fuels (wood, charcoal, straw) beyond their regeneration capacities. A Trend of Unsustainable Development Asia accounted for a large percentage of the growth in global Countering the Trend demand for energy during the last two decades, with China’s and India’s shares of that percentage continuously expanding. ASTAE has responded to these human and environmental The International Energy Agency (IEA) expects that the region challenges. Its efforts to champion sustainable development in will continue to account for about 30 percent of global energy the Asian energy sector reside in three pillars. demand growth until 2020. In the power sector, coal, with a share of about 75 percent, First Pillar: Renewable Energy 10 will likely continue to dominate generation, with oil and Supporting energy generation growth by means of renewable gas at around 10 percent each. While China sets the pace, energy technologies slows the depletion of natural resources, other countries, such as Bangladesh, India, Indonesia, and limits global environmental damage, and can contribute to Vietnam, have rapidly rising, medium-term needs for additional the substitution of domestic resources for imported ones. generation capacity to sustain their economic growth. With the Renewable energy resources include hydroelectric power, dominance of traditional fossil fuels as the primary generation biomass, wind, geothermal, and solar energy. Several countries option, and numerous obstacles to positioning renewable in the region have set ambitious targets for renewable energy energy sources as credible and reliable base-load substitutes, generation, but much remains to be done to reach these the power sector is expected to remain a large contributor to targets. greenhouse gas emissions. Other energy subsectors, such as heating, also contribute substantially to local and global Second Pillar: Energy Efficiency environmental issues. Given that most energy today is generated from finite fossil Despite impressive achievements in Asia to increase total fuels, using less energy to reach the same desired outcome installed generation capacity (for example, Vietnam increased is an effective way to contribute to sustainable development. its installed capacity by 6,400 MW [69 percent] between Energy intensity per unit of GDP produced is high in most 2003 and 2008, a large segment of the population, primarily Asian countries, which indicates that room for efficiency those living in rural and remote areas, have not benefitted improvements exists in all sectors of the economy. Energy- from this growth. East Asia and Pacific Region’s rate of efficiency improvements can be in electricity generation, unelectrified households remains approximately 12 percent, energy demand management, central heating, or individual a low percentage compared with Africa, but still sizable stove use. Efficiency in the energy sector is the primary target, considering that it affects 170 million people. In the South Asia but ASTAE also reaches out across sectors to promote this Region, overall access to electricity remains lower, with about agenda, with examples of work done in water, buildings, and 40 percent of households across the region unelectrified and transport sectors. nearly 600 million people affected. When taking into account heating fuels, whether for cooking Third Pillar: Access to Modern Energy Services or space heating, the numbers are of an order of magnitude Access encompasses new access (for example, connecting a higher, with well over 2.1 billion people in Asia dependent previously unelectrified household) and improved access (for on polluting solid cooking fuels—primarily wood, charcoal, example, construction of a biogas stove to replace charcoal for ASTAE ANNUAL STATUS REPORT #18 cooking). Access to modern energy can significantly improve The ASTAE Trust Fund covers only a small portion of the the quality of life for end users, providing benefits such as light, costs of project preparation or technical assistance to heat, and power for electrical appliances and tools in a much client countries. However, the strategic use of these funds more efficient and less polluting fashion than the displaced enables far greater impact than otherwise would be possible resources, often at a fraction of the cost. While in the past on which projects enter the World Bank pipeline and on decade, some countries, such as China and Vietnam, have the dissemination of operational experience. ASTAE also made dramatic progress in providing electricity access to their cooperates with other World Bank donor trust funds to ensure 1. Overview of the ASTAE Program citizens, others lag far behind. Additionally, most countries optimal use of donor funding. in the region have insufficiently tackled the negative impacts of using the traditional domestic heating fuels, whether for cooking or space heating, and have lagged in devising Organized to Deliver strategies to transition households to modern fuels or to To reinforce the effectiveness of its three pillars promoting improve the efficiency and cleanness of traditional fuels. sustainable development and to achieve substantive results, ASTAE’s overall strategy is to focus on supporting program development and project implementation in World Bank To track the contributions and achievements of ASTAE-funded operations, that is, “downstream” activities. activities relative to each pillar, pillar-specific indicators have been defined (detailed later in this chapter). These help Three approaches—innovative investment delivery monitor annual progress against specific targets defined for mechanisms, improved policy and regulatory frameworks, and each business plan period. Over time, ASTAE has expanded effective knowledge sharing—characterize ASTAE’s operational 11 its monitoring from only input-based indicators (linking ASTAE means of implementing its overall strategy. funding to World Bank lending) to output-based indicators (that ASTAE provides a wide range of support mechanisms, such as is, final impacts delivered through ASTAE’s lending, measured early program and project identification work, quick response in megawatts, gigawatt-hours, or number of connections). and troubleshooting, project-related capacity building, and funds mobilization. Mode of Operation: Approaches, Support These support mechanisms are provided by ASTAE staff and Mechanisms, and Structure World Bank Task Team Leaders. Their constant interaction Close Collaboration with Donors forms the backbone of ASTAE’s operational structure. Other important elements of the structure include the Consultative The key to ASTAE’s success is its dual partnership model— Group on World Bank Energy Trust Funds, representing donor partnering with World Bank task teams to undertake the countries, and a Technical Advisory Group that evaluates operational aspects of its activities and partnering with its ASTAE activities on an annual basis and reports to the donor donors to determine and fund its strategic goals. The resulting community represented in the Consultative Group. synergy allows all parties to explore and seize opportunities to achieve common goals, that is, ASTAE’s mission. Donor countries, including the Netherlands and Sweden, Canada, ASTAE Approaches Finland, Switzerland, the United Kingdom, and the United Financing for sustainable energy is available through many States, have over the years endowed ASTAE with block grant avenues, although the complexities of fund allocation and funding that advances the agreed-upon themes and targets. recipient designation for each financing option make finding In turn, ASTAE provides Task Team Leaders with resources the right channel a challenge. ASTAE seeks to provide practical that are then used to support important activities in a timely and operational solutions to obstacles created by lack of and flexible way, and ultimately help demonstrate the validity awareness, institutional blockages, or inadequate delivery and feasibility of integrating sustainable energy into the mechanisms. Bank’s project portfolio. As ASTAE management is located in the regional operational unit, decisions on which proposed The connections among the ASTAE objective, the three pillars, activities to be funded fully reflect the country or regional and the three approaches are shown in figure 1-1 on the next assistance strategy and the priorities of the country or regional page. assistance program, while at the same time aligning with donors’ overarching priorities. Figure 1-1: Interlinking Objective, Pillars, Improved Policy and Regulatory Frameworks and Approaches ASTAE supports the development of institutional and regulatory frameworks. Allocations to this approach have ASTAE Ojective: grown steadily since initiation of the scale-up phase, because To scale up the use of sustainable energy framework development is well suited to the needs of options in Asia in order to protect the environment and reduce poverty. programmatic schemes that can be scaled up. Today, around 48 percent of ASTAE funding is primarily linked to institutional 3 Pillars Renewable Energy Access to Energy Efficiency Energy and regulatory framework development that primarily supports 3 Approaches specific projects with impacts that are replicable, scalable Support Innovative Delivery Mechanisms upwards, and sustainable. ASTAE provides an enabling environment through improved policy, financial, and regulatory Enhance Policy and Regulatory Frameworks frameworks; this helps attract capital from international financial institutions, export credit agencies, and the private Build Capacity and Share Knowledge sector. Recent work includes high-level policy dialogues and advisory support (geothermal energy in Indonesia, access in Timor- Leste); pricing policy and regulation (access in Mongolia); design and implementation of standards (energy efficiency in 12 Thailand and Vietnam); and assessment of the social impacts of reform (access to electricity in India). Innovative Investment Delivery Mechanisms ASTAE helps introduce innovative financing delivery Knowledge Sharing mechanisms; this was a major approach in ASTAE’s ASTAE supports capacity building and knowledge sharing. work during its initial years, as mechanisms designed for They are at the core of ASTAE’s mission, in the sense that conventional energy investments did not fit the needs of knowledge sharing underpins the success and effectiveness ASTAE’s intervention areas and had to be adapted. As of the other two approaches. Around 37 percent of ASTAE’s sustainable energy projects became more mainstreamed, allocations in the current business plan are primarily focused related markets matured and projects became more complex on knowledge sharing, and 60 percent of activities include this and sophisticated. ASTAE continues to provide innovative dimension as secondary. As a result of its positive outcomes financing delivery mechanisms, but the share of this approach in project and program design, implementation, and replication, has decreased to around 15 percent of allocations in the ASTAE is able to draw upon a pool of expertise and consolidate current business plan. This approach is carried out either by its knowledge base to provide just-in-time advice to other supporting design, build-up, and testing of new mechanisms groups engaging in the same activities across the region. from the start, or by helping to introduce existing mechanisms The knowledge-sharing approach can be run as a stand- and tailoring them to the specific context of a new host alone activity or as an integral part of a project if the need for country. capacity building or knowledge sharing goes beyond normal Recent examples of improved investment delivery project-related expectations. mechanisms include developing on-lending guidelines for Recent work includes training seminars for officials and policy commercial banks (done for an energy-efficiency project in makers (Mongolia, Indonesia, Thailand, and Bangladesh); China), structuring on-lending funds (for example, renewable workshops to share technical knowledge between countries energy in Vietnam), and transferring business models among (China and Vietnam); knowledge products, technical guides, neighboring countries (energy efficiency from China to methodologies, and atlases made available nationally and Vietnam. Delivery mechanisms can also apply to organizational, internationally; dialogue facilitation with the nongovernmental technical, and business models that can facilitate development organization community; and donor coordination. and scale-up of an activity (cookstoves model production facility in Cambodia). ASTAE ANNUAL STATUS REPORT #18 ASTAE Support Mechanisms indispensable in devising and delivering solutions that prevent projects from being halted. ASTAE provides depth of knowledge and flexible, just-in-time funding to successfully shape the design of new projects 4. Project-Related Capacity Building and programs, to help implement them, or to adapt them When capacity-building needs go beyond the reasonable to rapidly evolving conditions. ASTAE’s presence in most expectations of normal project preparation or implementation Asian countries has helped enable cross-fertilization among (for example, strengthening capacity of new counterparts due 1. Overview of the ASTAE Program different operations, to develop a strategic, programmatic to unexpected political changes), ASTAE can provide assistance approach to broadening the impacts of investment projects. with training programs, workshops, consensus-building This cross-cutting position, in turn, has helped create enabling conferences, twinning, study tours, and access to subject environments in which ASTAE shares best practices to improve matter advisors. institutional, policy, financial, and regulatory frameworks in recipient countries. The seven support mechanisms described 5. Funds Mobilization below are often provided in conjunction with other partners, ASTAE provides assistance to Task Team Leaders in mobilizing trust funds, and donors, so the activity benefits from the additional funds by helping to clarify funding requirements for comparative advantage of each player. a given sustainable energy project. Careful use of a relatively small amount of ASTAE support can persuade new partners to 1. Early Program and Project Identification Work join, leveraging initial financing levels to magnify the impacts Best practices and new business models for alternative energy that they would have had in the absence of the additional 13 and access deployment are still being established; ASTAE partners. helps support the development of this global knowledge base. Renewable energy is now a feasible technology model, 6. Global Knowledge Interface but best practices on alternative energy deployment are Early barriers to a project including a sustainable energy among those still being established. Large populations in component are often lack of awareness of an alternative Asia remain without access to electricity. This indicates that option or technology and lack of understanding of how the current business models of delivery still need adjustments option can be implemented. Providing support to Task Team or improvement to serve these populations. Households’ Leaders or stakeholders to raise awareness is the first step needs, what they can afford, and their readiness to adapt to in addressing this barrier. Such support is provided upstream innovative technologies may be unknown. ASTAE support to or midstream during the project cycle—when existing Task Team Leaders and stakeholders is critical in assessing and expertise is made available through ASTAE’s network of overcoming these barriers. subject matter consultants—and downstream when the new information generated by the project or the ASTAE activity is 2. Program and Project Development and Implementation analyzed, monitored, and packaged for dissemination. ASTAE’s Work monitoring and evaluation of project or program impacts is For especially complex or innovative projects and programs, becoming an increasingly important task. ASTAE can provide planned or unplanned support during identification and implementation. ASTAE support is provided 7. Impact Monitoring & Evaluation only when circumstances require additional budget or ASTAE’s monitoring and evaluation of project or program expertise that are above and beyond normal project funding. impacts are increasingly necessary to ensure that new information generated by projects or ASTAE activities is 3. Quick Response and Troubleshooting analyzed and packaged to be imparted to others. Given its long ASTAE provides just-in-time response to support the urgent experience in supporting sustainable energy projects, ASTAE is needs of Task Team Leaders during project development (for well positioned to commission ex post studies and analysis of example, responding to stakeholders’ specific issues and its past projects to capture and share lessons learned that may identifying market segments) and supervision (for example, be of great value to other countries. troubleshooting unexpected regulatory barriers). ASTAE’s flexibility in taking on such issues on short notice has proven ASTAE Structure • Donors set the agenda for the specific funding lines made available to ASTAE, and as members of the Donors The ASTAE management structure, shown in figure 1-2, Consultative Group, help the ASTAE Program Manager guide includes both functional and hierarchical interactions. the program. They receive support from the Technical Advisory Group, which includes specialists with expertise in each ASTAE pillar. Depending on specific trust funds’ agreements, donors Figure 1-2: ASTAE Management Structure may provide non-objection to ASTAE activities that require allocations above a predefined ceiling. Donors Operation Advisors: • Task Team Leaders are World Bank staff who Consultative Group (CG) ASTAE South Asia Energy identify needs for ASTAE funds to support sustainable energy Manager Sector Manager Sector Leader in their spheres of activity and submit requests for funding. Technical (EASIN- East Asia) Advisory East Asia Each proposal is evaluated on its expected contribution to Group (TAG) Sector Leader South Asia ASTAE objectives, the availability of alternate funding, and the ASTAE novelty or complexity of the project to be assisted. Once an Coordinator activity is approved, Task Team Leaders are responsible for its timely, cost-effective, and high-quality delivery. ASTAE funds are used to cover the incremental costs of developing pillar- Task Team Leaders ASTAE Consultants related activities that go beyond the standard preparation and 14 supervision costs covered by World Bank budgets. • Consultants are hired by Task Team Leaders, using Project Executing Consultant Client of ASTAE-allocated funds, to carry out the necessary tasks for of BETF RETF the implementation of the ASTAE activity. Consultants may be Activities Activities activity-based—that is, hired for a given duration to undertake activity-specific assignments for specific project-related tasks—or program-based. Program-based consultants often provide more direct support to Task Team Leaders for project preparation and implementation, as well as support for the Hierarchical Structure management of ASTAE-related activities. Consultants can be individuals or firms. Standard Bank procurement rules are As ASTAE is embedded within the World Bank East Asia and applied to all ASTAE-funded activities. Pacific Infrastructure Unit (EASIN), the Infrastructure Sector Manager also serves as the ASTAE Program Manager and coordinates with the South Asia Manager whenever needed. Performance and Targets The ASTAE Coordinator is a World Bank staff member who provides day-to-day operational and administrative supervision ASTAE provides funding allocations to Task Team Leaders who of the ASTAE program, supports Task Team Leaders, acts as a have substantiated the nature of the incremental activities liaison with donors, and coordinates with local counterparts. they will undertake, the related costs, and the expected ASTAE can also employ local staff in the Bank’s partner-country impacts. The activities are then carried out, yielding outputs offices to gain better insight into country-specific challenges that, whenever possible, are recorded and formatted for and to support project implementation. A part-time budget knowledge sharing. In addition to tracking these outputs, administrator supports the ASTAE coordinator in monitoring the progress toward ASTAE program objectives is measured financial information. against a set of indicators and targets developed to reflect the objectives outlined under the three ASTAE pillars. The collective contribution of all activities to reaching ASTAE targets is Functional Structure measured annually. The contributions of three types of contributor (darker boxes in figure 1-2) complement ASTAE’s efforts within the ASTAE framework: ASTAE ANNUAL STATUS REPORT #18 Tools for Leverage Budget, Allocations, and Outputs Budget, allocations, and outputs are the elements over which ASTAE’s budget is agreed upon with donors on a three- to ASTAE has direct control and with which it measures its four-year basis, normally covering one business plan period. administrative effectiveness. The smallest ring of influence and ASTAE’s business plan discusses its goals and focal areas, impact in figure 1-3 represents this sphere. as exemplified in this chapter for the 2007–09 business plan period. ASTAE then comes to an agreement with its donors Leverage indicators and their related targets are beyond 1. Overview of the ASTAE Program on the budget necessary to undertake its defined mission and ASTAE’s direct control, but within its capacity to influence. In on a set of indicators to measure its success in leveraging its ASTAE’s early years, leverage of World Bank operations was funding to influence stakeholders’ commitments to the ASTAE the chief indicator monitored. It was measured by tracking pillars. The budget allocated to ASTAE during the original 2007– the dollar amounts of World Bank loans allocated to ASTAE 09 business plan period was US$7 .4 million, complemented pillars. Measuring the leverage of Bank operations today by additional funding that raised the budget to US$9.3 million consists of quantifying actual impacts in addition to lending and permitted extension of the business plan period into fiscal amounts. The impact on Bank lending is considered direct, 2010. because the support to Task Team Leaders in project design or implementation directly results in improved operations and, As noted earlier, ASTAE allocations are provided to Task Team therefore, impacts. These direct impacts are represented by Leaders based on the merits of their proposals to undertake the middle ring in figure 1-3. activities supporting ASTAE’s pillars. Activity duration varies according to the nature and complexity of the tasks involved, Broader leverage, at a country’s sector level, is far more 15 but most are completed in one or two years. In the 2007–10 difficult to measure; direct attribution to one activity or player extended business plan period, ASTAE allocated an average should be made cautiously. However, once a decision to of US$90,000 to each of 63 activities, with most allocations acknowledge ASTAE’s contribution is made, some formal ranging between US$50,000 and US$250,000. assessment of related impacts in the field is necessary to gauge whether funds have been used efficiently. The impacts ASTAE activities deliver outputs under multiple formats, and indicators used to inform this assessment are derived depending on the audience targeted. These outputs vary from from activities and programs that support enabling legislation, stakeholder-specific notes (confidential policy notes, country decrees, or behavior modifications by key stakeholders that strategies, or draft standards and labels, for instance), to could result in large-scale effects on the three ASTAE areas of broad public case making (population awareness and project intervention. This leverage is represented by the larger ring of information). Outputs are discussed at stakeholder meetings, influence and impact in figure 1-3. workshops, and conferences, and whenever suitable, are also published, printed, and widely distributed to a broad audience, including through ASTAE’s Web site. Figure 1-3: ASTAE Influence and Impacts at Different Levels Indicators and Targets Five indicators track the impacts of ASTAE-supported activities on advancing the development of sustainable energy. Three indicators are related to the pillars renewable energy, energy Country Leverage efficiency, and access to modern energy services; two cross All Stakeholders all pillars. (Sector Investments, Indirect Indicators) ASTAE pledges to achieve specific targets for these indicators by the end of each business plan period. Target achievement is measured both as a direct result of related World Bank loans World Bank Leverage and as indirect impacts of World Bank and ASTAE technical assistance to stakeholders in client countries. (Project Investments, Direct Indicators) Most activities contribute to the indicators’ targets. Estimated ASTAE values for direct indicators are derived directly from World Bank (Allocations, Outputs) project information documents, project appraisal documents, and formal ASTAE proposals. Because final figures can only capacity can result in different energy savings, depending on be known years after the end of a project, initial values are the type of fuel utilized and country conditions. target estimates. Although indirect impacts, too, are difficult More specifically, this indicator is the estimated annual quantity to attribute, ASTAE identifies published sources (such as of electricity saved (in GWh) resulting from the efficiency project information documents, project appraisal documents, improvements. and midterm reviews) that provide information on the indirect benefits of ASTAE-funded activities. In the 2007–09 business plan, targets were set so that ASTAE- supported projects would contribute to continuing annual savings of 1,000 GWh directly and 10,000 GWh indirectly. Indicator 1: New capacity and increased generation of renewable electricity The first indicator measures the contribution of ASTAE Indicator 3: Households with access to modern energy services activities to increasing utilization of renewable energy in client countries. New renewable energy generation capacity The third indicator measures the improvement in quality of is expressed both in installed capacity, to reflect the actual life as households transition from traditional fuels (such as investments made, and in actual energy generation indicators, charcoal, wood, and dung) or inadequate modern fuels (such as expressed in gigawatt-hours (GWh), to reflect actual utilization kerosene for lighting) to modern, clean, and sustainable energy of the installed capacity. The relationship between a megawatt sources. When switching fuels is not possible or desirable, of renewable capacity installed and the number of GWh the indicator measures the improvement in delivery of energy 16 generated (and, therefore, the quantity of fossil fuel not used) services resulting from the project, such as improved quality differs from one project and one country to another because or reliability of an electricity connection (for example, fewer capacity factors and dispatch rules vary from one technology or blackouts and brownouts) or improved efficiency of a given country to another. activity (for example, using improved stoves to decrease wood consumption). More specifically, this indicator integrates two subindicators: (1) new installed capacity in renewable energy (in megawatts, More specifically, this indicator comprises four subindicators: all technologies included); and (2) estimated quantity of (1) the number of households receiving new access directly electricity generated annually resulting from using the added resulting from a Bank project; (2) the number of households renewable energy capacity (in GWh). receiving improved services directly from a Bank project; (3) the number of households receiving new access indirectly In the 2007–09 business plan, targets were set for the second from a Bank project; and (4) the number of households subindicator only, with a set objective that by the end of the receiving indirect improved services indirectly from a Bank business plan, ASTAE-supported projects would have directly project. contributed to the annual generation of 1,000 GWh and indirectly contributed to the annual generation of 10,000 GWh. In the 2007–09 business plan, targets were set so that ASTAE- supported projects would contribute to (a) 500,000 households receiving new access directly; (b) 500,000 households Indicator 2: Electricity savings resulting from efficiency receiving improved services directly; (c) 50,000 households improvements receiving new access indirectly; and (d) 250,000 households The contributions of ASTAE activities to saving energy receiving improved services indirectly. through efficiency improvements are also measured. Energy- efficiency improvements can result in reduced peak load demand (and thus reduced or deferred investments) and Indicator 4: Avoided greenhouse gas emissions in decreased consumption of energy (less fuel used for an The indicator for avoided greenhouse gas emissions cuts equivalent level of services or output provided). The electricity across the previous three pillar-specific indicators. Utilization and heat-generation sectors record the most energy savings. of renewable energy and implementation of energy-efficiency A transformation coefficient is used to convert all savings, measures directly decrease greenhouse gas emissions. including of heat, into equivalent GWh of electricity. Efficiency Access to modern energy services has a more complex improvements resulting in avoided capacity can provide relief effect. In increasing access, some renewable fuels (wood, to a constrained system, but a given megawatt of avoided for example) may be displaced by fossil fuels, thus increasing ASTAE ANNUAL STATUS REPORT #18 emissions, but at the same time increasing caloric efficiency or improved sustainability of resources (less deforestation, for instance). The two effects may offset one another. As a result of that uncertainty, the indicator for avoided greenhouse gas emissions is based primarily on the first two indicators. This indicator, as well as the energy efficiency-related indicator, 1. Overview of the ASTAE Program is often achieved through cross-sector work, such as when ASTAE funds projects in the water or transport sector. More specifically, this indicator estimates the quantity of CO2 emissions avoided over 20 years (the conventional lifespan of projects or equipment) through renewable energy generation and energy savings registered under indicators 1 and 2. In the 2007–09 business plan, targets were set so that ASTAE- supported projects would contribute to emissions avoidance over 20 years of 70 million tons of CO2 directly and 780 million tons of CO2 indirectly. Indicator 5: Countries benefiting from ASTAE support 17 An indicator for equitable support was added because the four indicators above can be met most simply by concentrating ASTAE interventions in larger countries. However, ignoring small countries is inequitable and prevents regional cooperation and sustainable development in the region as a whole. In addition, in some countries, small-scale project operations rather than broader national policy programs are still the norm. While such projects may not add much quantitatively to the first four indicators, they have a large impact on the quality of life of local populations. The requirement for this indicator in the 2007–09 business plan was that a minimum of 10 countries receive ASTAE support. 18 2 ASTAE ANNUAL STATUS REPORT #18 2. ASTAE-Supported Activities During Fiscal 2010: Expenditure and Country Updates 2 ASTAE-Supported Activities during FY2010 In fiscal 2010, ASTAE provided funding for 21 activities in 12 countries, meeting its commitment to diversifying its activities and recipient countries. ASTAE Disbursements and Activities in Fiscal 2010 Table 2-1: FY2010, Major Disbursement Categories In fiscal 2010, ASTAE activities were endowed from two trust funds: Disbursement category Amount (US$) Percent Project-assigned disbursements n The Government of the Netherlands Trust Fund for ASTAE from the Bank-Netherlands Partnership Program (BNPP) Country-specific 1,391,481 65 19 (TF057088); and Regional projects, knowledge 335,423 16 sharing n The Swedish International Development Agency (SIDA) Cross-cutting disbursements Trust Fund for ASTAE (TF091618). Reporting 158,726 8 Administration 238,262 11 Total 2,123, 893 100 Overview of Disbursements and Budget Leverage During fiscal 2010, ASTAE disbursements reached a total of US$2,123,893; with a mild 2 percent decrease over last year, Administrative costs, including ASTAE staff costs and disbursements were essentially stable. administrative support provided by World Bank assistants, decreased by 39 percent compared to fiscal 2009, to Overview of Disbursements US$238,262. This decrease brings non-activity costs well In fiscal 2010, ASTAE provided funding for 21 activities in 12 below the ceiling agreed with ASTAE donors, while keeping countries, meeting its prior year commitment to diversifying levels of disbursements close to the levels in fiscal 2009. its activities and recipient countries. One-third of these Reporting costs, which include service by the Technical activities began disbursement this year and three activities (in Advisory Group, annual reporting, Web site management, and Cambodia, Lao PDR, and Indonesia) received additional funding dissemination of reports, remained stable at US$158,726. for a subsequent phase to reinforce the successful impacts of These costs, which increased in fiscal 2009, reflect the an activity begun in the prior year. reorganization of reporting outputs, including streamlining the Consistent with the agreement with its donors, ASTAE production and publication of technical reports for activities funds are primarily allocated to support activities, with the outputs deemed to be of general interest. The broader remainder used for administrative and reporting purposes distribution of these technical reports and of the annual status (table 2-1). ASTAE disbursed US$1,726,905 toward project report also contribute to creating a visually distinct identity to implementation in fiscal 2010, or 81.3 percent of its total ASTAE. disbursements; this is explained in further detail in the next section. The remainder of the budget was used to cover administrative and reporting costs. ASTAE Budget-Related Leverage Overall, since its inception, ASTAE budget leverage has resulted in doubling, to nearly US$63 million, the identification, When ASTAE funds activities, the World Bank Group also development, and supervision budget allocated to sustainable contributes from its various budgetary sources to help carry energy by the World Bank in Asia. out project tasks. This fund matching shows the budget-related leverage that donor funding exercises in influencing World This highlights the value of donor funding that enables Bank projects. World Bank task teams to undertake challenging activities for which Bank budgets are normally very limited, but that In fiscal 2010, US$2,123,893 disbursed from donor trust are nonetheless necessary to identify and prepare future funds was complemented by US$1,820,321 from the World sustainable energy projects to include in the pipeline or to Bank, or 54 percent and 46 percent, respectively, of the total troubleshoot problems in ongoing projects to ensure realization US$3,944,214 allocated to developing sustainable energy as a of intended benefits. result of ASTAE-related projects. It should be noted, as shown in figure 2-1 and detailed ASTAE Investment-Related Leverage in appendix 2, that both the absolute value of resource The budget-related leverage mentioned above results in much mobilization and the ratio of World Bank-to-donor contributions greater investment-related leverage once ASTAE-supported vary over the years. The two main reasons for these projects are appraised, approved, and implemented. In fiscal fluctuations are changes over time in the pattern of donor 2010, four projects that had received ASTAE support were contributions and variation in the number of sustainable presented to the World Bank Board of Executive Directors, 20 energy projects in the World Bank lending pipeline or under totaling an investment of US$199 million, of which 65 percent implementation. was sourced from IBRD, IDA, or GEF , and the rest from For example, the total ASTAE-related budget remained stable borrowing countries’ governments and private sectors. during the fiscal 2007–10 extended business plan period, at In fiscal 2010, the US$2.1 million ASTAE disbursements around US$4 million per year, while World Bank budgetary contributed to US$199 million in World Bank projects. In short, support accounted for a larger portion in fiscal 2007 (70 in fiscal 2010 every dollar of donor resource disbursed by percent) than it did in fiscal 2010 (46 percent). This is in part ASTAE resulted in US$95 in World Bank-related loans or grants because there were fewer ongoing ASTAE-supported activities to sustainable energy. This dollar leverage amount vary every in fiscal 2007—and because those underway had lower year, both due to the level of ASTAE disbursements and to funding. Additionally, in fiscal 2010 some ASTAE activities the number and size of World bank projects presented to the linked to knowledge sharing and cross-fertilization did not Board. Over the fiscal 2007-2010 period, with ASTAE related receive matching funds from the World Bank’s project-related projects presented to the Board adding to US$2,202 millions budget. and ASTAE disbursements of US$7 .4 million; the average ASTAE investment-related leverage was US$298. Figure 2-1: ASTAE Resource Mobilization, by Origin of Funding Distribution of Disbursements ASTAE allocated US$1,726,905 to project implementation 7 in fiscal 2010, or 81.3 percent of its total disbursements. In 6 World Bank Contribution order to provide additional analysis of the use of donor funds, Donor Funding ASTAE’s project-related disbursements in fiscal 2010 are 5 broken down below according to ASTAE priorities (figure 2-2) MILLIONS US$ 4 and approaches (figure 2-3), and to World Bank classification 3 of activities (figure 2-4) and countries (figure 2-5). This section focuses only on the project-related portion of disbursements; 2 it does not include administrative and reporting disbursements. 1 0 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 ASTAE ANNUAL STATUS REPORT #18 Introductory Note to the Figures Figure 2-2: FY2010 Disbursements, by In figures 2-2, 2-3, and 2-4, the outer circle represents the ASTAE Pillar amount disbursed; the inner ring represents the number of ASTAE activities related to an intervention area, ASTAE Access US$ 653,788 2 ASTAE-Supported Activities during FY2010 US$ 689,456 38% Efficiency approach, or World Bank activity classification. In many 40% Renewable instances, an ASTAE activity has several components related to 8;31% Inner circle: Number of projects various pillars or approaches, for example, a project promoting 10;38% Outer circle: Amounts allocated both renewable energy and access. Hence, the sum of activities may exceed the total number of activities supported by ASTAE. However, in this report, in order to avoid double 8; 31% counting of disbursements, the entire amount of the activity is US$ 378,485 attributed to the primary pillar or approach. 22% This somewhat distorts the reality, as an ASTAE activity with a 60 percent renewable energy component and a 40 percent access to energy component, for example, is registered Project-Related Allocations, by Approach in figure 2-2 as 100 percent renewable, but it nonetheless Disbursement by approach (figure 2-3) shows that capacity illustrates the overall strong alignment with ASTAE’s core building and knowledge sharing are well integrated in ASTAE goals. In fact, the reality of ASTAE’s relative disbursements activities, even if often as a secondary approach. In terms 21 according to pillars (or approaches) lies somewhere between of funding amounts, the approach related to framework the percentages in funding amounts (where 100 percent is development received close to half of the disbursements in allocated to a given pillar) and the percentages in number of support of setting sustainable, development-friendly policies projects (where each pillar mentioned in a specified activity is and regulations in partner countries through specific projects to given the same weight). For example, in figure 2-2, renewable promote scaled-up and lasting impacts. This confirms ASTAE’s energy represents between 31 and 40 percent of allocations. shift from a project-based delivery mechanism approach This minor imprecision will be eliminated under the upcoming (core to ASTAE’s early work) to program-focused framework new business plan period, as new and more precise development in order to align with the scale-up strategy of the disbursement tracking systems will be put in place. last two business plans. Project-Related Allocations, by Pillar Figure 2-3: FY2010, Disbursements by ASTAE disbursements in fiscal 2010, by pillar (figure 2-2), ASTAE Approach reflect a good balance among all three pillars in terms of number of activities, and slightly more emphasis on renewable US$ 823,927 US$ 646,486 Capacity Building and energy and access to energy. The renewable-related activities 48% 37% Knowledge Sharing tend to have higher allocations than those where access or Delivery Mechanisms energy efficiency are the primary focus, which reflects ASTAE’s Framework Development 8: 26% continued commitment to promoting alternative energy. At Inner circle: Number of projects the same time, allocations to each pillar reinforce each other, Outer circle: Amounts allocated as activities often cut across pillars, such as when increasing 4: 13% 19: 61% access to modern sources of energy is incorporated as a subcomponent in energy-efficiency or renewable activities. US$ 251,315 15% Project-Related Allocations, by World Bank Line of Regional activities that are not country-specific and that benefit Activities several countries in the region remained significant in fiscal 2010, holding steady with 20 percent of disbursements after This shift from project- to program-based activities is their substantial growth in fiscal 2009. also reflected in the breakdown by the World Bank’s type of activities in figure 2-4, albeit under a different label. Small countries were not overlooked, however, with Pacific Technical assistance supporting framework-development Island countries receiving 20 percent of ASTAE funds or capacity-building approaches, in line with the overall shift collectively. Activities in the South Asia Region continued, but in scaling up delivery by increasing direct involvement with remained limited with 5 percent of total expenditure. recipient countries’ stakeholders, now represents over half of disbursements. At the same time, pure lending-focused activities (GEF grants, supervision assistance for lending Figure 2-5: FY2010, Disbursement by projects) represent about 10 percent of disbursements. Country Economic and sector work, as well as knowledge products (one-third of disbursements), ensure that the relevant technical Mongolia and operational knowledge generated from or generated China US$ 183,355 US$ 178,248 India US$ 89,827 10% 11% for specific projects is available to partner countries and Vietnam US$ 161,677 Timor-Leste US$172, 403 sufficiently disseminated to other potential beneficiaries. 9% Philippines US$ 23,336 Other 22 Indonesia US$ 541,879 Solomon Islands US$ 63,705 31% Figure 2-4: FY2010, Disbursements by US$ 326,323 19% Tonga US$100,851 World Bank Activity Regional Projects, Outreach, Cambodia US$ 32,263 and Knowledge- Sharing Activities Lao PDR US$ 56,452 US$ 335,423 US$ 280,949 20% US$ 910,600 Economic and Sector Work 53% 16% GEF Grants US$ 113,163 7% Knowledge Product 3;14% Lending Activities 1;5% Technical Assistance Detail of ASTAE Fiscal 2010 Activities and 10;48% Disbursements 4;19% Inner circle: Number of projects Outer circle: Amounts allocated Table 2-2 provides an overview of all 21 ASTAE activities that 3;14% disbursed in fiscal 2010, as well as a short description of the US$ 357,173 21% support mechanisms provided by ASTAE for these activities. A summary of disbursements throughout the extended business US$ 59,844 3% plan period of fiscal 2007–10 is also provided for reference. Project-Related Allocations, by Country In fiscal 2010, ASTAE continued its active involvement in priority countries, with 39 percent of its allocations to China, Indonesia, and Vietnam (figure 2-5). Indonesia received the most funding—US$326,323, or 19 percent of total activity- related disbursements. China, Mongolia, Timor-Leste, and Vietnam received similar levels of funding and around 10 percent of total disbursements. In China and Mongolia, the disbursements were spread across three projects; Timor-Leste and Indonesia each had only one active project. ASTAE ANNUAL STATUS REPORT #18 Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2010 2 ASTAE-Supported Activities during FY2010 ASTAE Project Type and details of activity Total disbursements FY 2010 Period FY 2007-10* Period Total $ 2,123,893 $ 7,365,439 CHINA and MONGOLIA $ 361,603 $ 1,534,552 China $ 183,355 $ 840,635 1 China: Renewable Energy Scale- PE: Supervision of IDA/IBRD Credits $ 20,523 $ 159,363 Up Program (CRESP) • Provide capacity building and support to RE law • Support provincial resource asessment (biomass, wind) • Build investors’ capacity to enable RE scale-up 2 China: Energy Intensity Strategy ESW: Economic and Sector Work $ 38,109 $ 130,763 Policy notes to support China’s energy intensity reduction 23 • Update cost-benefit analysis of renewable energy targets following changes in energy sector outlook • Improve cement sector energy intensity in three provinces 3 China: Urban Transport Climate ESW: Economic and Sector Work $ 128,270 $ 128,270 Change Strategy • Review energy and car- bon footprint of urban transport • Disseminate best practices on energy efficiency and energy security concerns in the urban transport sector Mongolia $ 178,248 $ 693,916 4 Mongolia: Energy-Efficient Heating TA: Technical Assistance $ 6,432 $ 210,073 in Poor Areas of Ulaanbaatar • Introduce energy-efficient stoves in the poor areas of the periphery of Ulan Bator 5 Mongolia: Energy Sector Project TA: Technical Assistance $ 27,152 $ 247,737 • Improve efficiency in the electricity distribution system • Increase awareness and capacity among stake- holders 6 Mongolia: Documentary Energy KP: Knowledge Product $ 144,664 $ 144,664 Project • Create video on the achievements made under the 2001–10 energy sector project Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2010 ASTAE Project Type and details of activity Total disbursements FY 2010 Period FY 2007-10* Period Total $ 2,123,893 $ 7,365,439 CAMBODIA, LAOS, THaiLAND $ 88,716 $ 561,628 Cambodia $ 32,263 $ 183,735 7 Cambodia: Biodigester Private Sec- TA: Technical Assistance $ 32,263 $ 96,822 tor Development • Define a service delivery model and licensing procedures for private biodigester construction companies • Support to the emergence of such companies, and creation of a trade association 24 Lao PDR $ 56,452 $ 56,452 8 Lao PDR: Lessons from the Lao TA: Technical Assistance $ 56,452 $ 56,452 rural electrification program • Identify factors that contributed to electrification successes • Advise to government on next steps toward universal access INDONESIA $ 326,323 $ 579,426 9 Indonesia: Geothermal Power Sup- TA: Technical Assistance $ 326,323 $ 501,576 port Program • Assist in review, design, and consensus building on policy reforms in the geothermal sector • Enhance GoI capacities to integrate CDM in geothermal development • Assist in identifying and preparing geothermal projects to be financed by WB loan Philippines $ 23,336 $ 98,380 10 Philippines: Power System Loss TA: Technical Assistance and GEF: GEF Grant $ 23,336 $ 82,026 Reduction Project • Screen proposed investments by cooperatives • Build capacity of cooperatives and local authorities vietnam $ 161,677 $ 757,531 11 Vietnam: Documentary on Rural KP: Knowledge Product $ 41,734 $ 152,387 Electrification • Create a documentary on rural electrification in Vietnam for television broadcasting 12 Vietnam: Renewable Energy Devel- TA: Technical Assistance $ 117,057 $ 416,249 opment Project • Prepare and supervise the Vietnam Renewable Energy Development Project ASTAE ANNUAL STATUS REPORT #18 Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2010 2 ASTAE-Supported Activities during FY2010 ASTAE Project Type and details of activity Total disbursements FY 2010 Period FY 2007-10* Period Total $ 2,123,893 $ 7,365,439 PAPUA NEW GUINEA, Timor-Leste, and Pacific Islands $ 340,000 $ 1,219,312 Pacific Islands $ 3,038 $ 125,925 Fiji $ - $ 111,472 Solomon Islands $ 63,705 $ 379,090 13 Solomon Islands: Tina River Hydro- TA: Technical Assistance $ 51,537 $ 51,537 power Development Project • Provide technical and methodological support for procurement procedures and consultations with affected populations 14 Solomon Islands: Sustainable PE: Lending $ 12,168 $ 258,212 25 Energy Project • Preparation support for the sustainable energy lending project Tonga $ 100,851 $ 149,717 15 Tonga: Renewable Energy Devel- TA: Technical Assistance $ 100,851 $ 149,717 opment National energy plan with use of renewable energy options • System and load forecast analysis to assess the suitability of intermittent and firm renewable sources to the system timor—leste $ 172,406 $ 453,108 16 Timor-Leste: Rural Energy Access TA: Technical Assistance $ 172,406 $ 172,406 and Efficiency Help prepare an integrated pre-investment package with • Solar PV dissemination options • Candidate micro-hydro sites • Improved stoves models SOUTH ASIA REGION $ 89,827 $ 145,706 India $ 89,827 $ 145,706 17 India: Energy Efficiency in MSMEs GE: GEF Grant $ 89,827 $ 145,706 Raise energy-efficiency awareness and build energy-efficiency capacity in MSMEs • Increase capacity of local bank branches to identify and appraise EE projects Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2010 ASTAE Project Type and details of activity Total disbursements FY 2010 Period FY 2007-10* Period Total $ 2,123,893 $ 7,365,439 Regional Projects, Outreach and Knowledge Sharing $ 335,423 $ 750,045 18 Regional: Mapping Wind Re- TA: Technical Assistance $ 47,280 $ 175,620 sources in the Pacific and PNG • Produce a Wind Survey for Papua New Guinea, Solomon Islands, Fiji, and Vanuatu, with predicted mean wind speed for 6, 12, and 35 meters above ground and at 1 km grid spacing 19 Regional: Carbon Emission Mitiga- KP: Knowledge Product $ 92,510 $ 108,385 tion Toolkit for Highway Construc- • Analyze activities associated with design, con- tion struction, and rehabilitation of highway projects identify those sensitive to energy consumption and 26 carbon emission • Estimate carbon footprin and provide mitigation options • Carbon Emission Mitigation Toolkit for Highway Construction 20 Africa: LED Light Quick Screening KP: Knowledge Product $ 78,264 $ 78,264 Methodology • Develop a quick screening methodology for LED lights • Pilot-test up to 30 LED systems using the methodology 21 Regional: East Asia Pacific Flagship KP: Knowledge Product $ 114,569 $ 149,969 Study • Analyze regional potential of renewable energy sources and energy efficiency improvements • Review existing policies, identify gaps • Recommend regional policy development Administration and Reporting Activities $ 396,988 $ 1,718,860 Reporting Activities • Technical Advisory Group support $ 158,726 $ 507,073 • Printing, editing services Administration • Administrative support $ 238,262 $ 1,211,787 * The table lists only activities with significant disbursements in fiscal 2010. Therefore, in some countries the total may be higher than the sum of each project listed. ASTAE ANNUAL STATUS REPORT #18 Given the diversity of countries in the South Asia and the East Asia and Pacific Regions, a map and an at-a-glance country- context summary in relation to each of ASTAE’s pillars are provided as a reference in appendix 1, including the following 2 ASTAE-Supported Activities during FY2010 for each country: n Basic information: population and GDP; n Renewable energy: capacity, generation, and market share; n Energy efficiency: power and GDP energy intensity in terms of CO2 emissions; n Access: population electrified in number and rate; and n Greenhouse gas emissions: annual CO2 emissions and ranking. The following sections are dedicated to the countries in which 27 ASTAE-supported activities were active in fiscal 2010. For each country where significant disbursements were recorded in fiscal 2010, as shown in table 2-2, two sets of information are provided: n A simplified country-specific context in which the ASTAE activity is undertaken. This can include country- specific challenges in the energy sector and the World Bank’s involvement in tackling these issues. n An explanation of ASTAE’s activity goals, their contribution to the related World Bank projects, and an update on the progress of these activities over fiscal 2010. 28 Cambodia ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Cambodia whether their work had made a profit or a loss, and therefore considered the biodigester business a risky one. It was Cambodia is one of the poorest countries in the region, with recommended, as the pilot phase was successfully completed, about 35 percent of its population living below the national that development and implementation responsibility be poverty line of less than US$0.60 per day. With a population of 2 ASTAE-Supported Activities during FY2010 removed from the provincial authorities and transferred to 13.4 million in 2008 that was approximately 80 percent rural, its the private sector. Private construction companies would be GDP per capita remains low at about US$650. established and staff trained to be responsible for the entire Electricity access is limited, with 26 percent of households business supply chain: marketing, contracting, construction electrified nationwide in 2008 and only 3.5 percent in rural and installation, quality assurance, maintenance, and after- areas. Cambodia’s annual per capita electricity consumption sales services, including the provision of lamps and other spare is around 106 kWh and, because diesel-based generation parts. predominates, tariffs are very high—in the range of 9–23 USc/ ASTAE provided technical assistance in fiscal 2009 and 2010 kWh, and as high as 30–90 USc/kWh in rural areas. to develop such a service delivery model, from both business The overall energy sector remains very oriented toward and regulatory perspectives, and to implement it in three biomass, with more than 90 percent of energy used for test provinces by establishing and training private biodigester cooking coming from wood and charcoal. This contributes to contracting companies. Support was also provided to create a increased deforestation. Inadequate access to energy services trade association that would share business experiences and has entrenched poverty, slowed improvements in health and standards improvements. education, and contributed to environmental degradation 29 By the end of fiscal 2010, the result was the privatization of and socioeconomic inequalities. In Cambodia, the immediate biodigester services in eight provinces. Twenty-one biodigester emphasis is on improved use of and access to traditional fuels construction companies (BCCs) had been created, well above to decrease waste and losses. initial targets. All used the business model developed by the project, which replicable franchises, mason training, and Continued Support to the Cambodia Support to business mentoring. The replicable micro-franchise business Private Sector Development of Biodigesters model included an operations manual for BCCs, a standardized Anaerobic biodigesters, fed with animal dung and other organic project control folder for installations (quality control checklist), waste, produce methane gas that can be used for both cooking and a three-party franchise agreement among the national and lighting. Rural families with 4 or 5 cows, or around 10 pigs, biodigester program office, the BCCs, and the provincial have sufficient dung to produce enough gas to cook 3 meals biodigester program offices. In parallel, training targeting the a day for a family of 6, as well as sufficient gas for an entire development of business and entrepreneurship capacities for evening of lighting. Biodigesters help reduce deforestation, semiskilled rural laborers included customized training focused eliminate harmful indoor smoke from wood fires, and improve on concrete business outcomes, and business coaching and sanitation in and around the house when connected to a mentoring for BCC owners. latrine. This resulted in a sixfold increase in the number of biodigesters A Cambodia National Biodigester Program was established in installed—to 5,600 by the end of fiscal 2009—and the decision mid-2006 to adapt the existing techniques to the Cambodian to target the installation of 21,800 biodigesters in 12 provinces context and develop a self-sustaining biodigester market. It by 2012. Each biodigester avoids burning about two tons was advised by the Netherlands Development Organization of wood and kerosene annually and is estimated to reduce (SNV) and received donor support from the Dutch government. CO2 emissions by four to six tons, or about the equivalent of By 2008, it had installed 750 biodigesters in 5 provinces removing a U.S. car’s typical annual emissions (5.5 tons per and was targeted to expand its activities dramatically in the year, according to the U.S. Environmental Protection Agency). following years. However, it was found by the Cambodia National Biodigester Program office that training masons to sell, plan, build, and install biodigesters focused on technical aspects, without providing the basic business skills needed to estimate costs and revenue. As a result, masons were unable to calculate 30 China ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in China on sustainable energy has deepened, as 90 percent of World Bank investments in energy have been to support the China’s accelerated growth in the last three decades has development of its renewable energy and accelerate energy- driven a boom in power generation to meet ever-growing efficiency investments. 2 ASTAE-Supported Activities during FY2010 energy demand. The country has sustained its growth during the present financial crisis, and future growth is expected to China, Beijing Urban Transport Climate Change be robust. Under current policies, energy use patterns, and Strategy economic growth, China’s energy consumption is expected to Beijing has announced ambitious plans for improving the double in 20 years. energy efficiency of its urban transport systems. A white China’s energy intensity, defined as energy use per adjusted paper, made public in mid-2009, has announced targets for the GDP , recently began an upward trend after a period of adoption of energy-efficient modes—public transport, cycling, significant decline. Energy elasticity, defined as the change and walking. In a large, built-up metropolis like Beijing, a key in energy consumption per change in GDP growth, soared to challenge to improving the energy efficiency of the transport twice that of ratios observed in the last 20 years and is now system is to improve the performance of existing systems. above 1.0, indicating that energy consumption is growing faster Beijing’s bus system is the largest in the world. With over than GDP . Because of a vast natural endowment, the energy 20,000 buses, it carries more than 13 million passenger on that fuels China’s economy is based on coal. Only a few other an average weekday. While it has greatly expanded in recent countries around the world rely so heavily on coal, although it years in response to a growing, more affluent population is important to note that the power sector consumes only 55 31 traveling more, it has done so without a comprehensive, percent of total coal consumption, whereas the rest goes for scientifically developed plan, and is suffering from other feedstock to industries. external issues: as auto ownership and congestion have Industry-led demand growth was an important driver of this increased, more and more buses are needed to provide observed trend, as the share of secondary industries in the essentially the same net people-moving capacity. economy is much larger than in OECD countries. But another At the same time, declining performance has also meant that emerging driver looming on the horizon is the emergence of bus services are becoming increasingly unattractive as an the middle class, with its demands for more electric appliances alternative to buying and using a personal vehicle. Beijing’s and more comfortable housing in urban areas and increased Metro has and is expanding to meet this challenge. But the transportation needs. bus system will still carry the majority of public transport trips, The Chinese government’s response to these challenges has even after the planned 500-kilometer Metro system, one of included the introduction of major policies and programs in world’s largest, becomes operational in 2015. energy efficiency, including a commitment to reduce energy The Bank has been working with Beijing on a two-pronged intensity by 20 percent by 2020; ambitious renewable energy strategy in this regard: developing incremental solutions targets; increased nuclear capacity; and a greater presence that refine and improve the performance of existing public in the overseas market for oil and gas. It has also promoted transport in key corridors; and developing analytical tools that renewed focus on energy-efficient transportation modes, allow the city to deploy new public transport investments in a such as public transport, cycling, and walking, to counter rapid manner that maximizes their impact. Ongoing work includes growth in car ownership and use. first, training technical officials and senior decision makers Support to energy efficiency and renewable energy on international good practice for incremental improvements, development is at the core of the World Bank’s energy program based on Seoul’s experience; second, extending the current in China. work to detailed design stage; and third, supporting Beijing in planning the integration of the rapidly expanding Metro The Bank’s China Energy Practice has invested US$8.2 billion network with the bus system. ASTAE activity focuses on these in IBRD, IDA, GEF , and carbon financing funds over nearly last two issues. 30 years of partnership with China; the green portfolio of renewables and energy efficiency represents 35 percent of ASTAE finance is to (i) review the Beijing bus route system and this total. Over the last decade, the concentration in China use of multi-criteria analysis to suggest modifications that will China China’s accelerated growth in the last three decades has driven a boom in power generation to meet ever-growing energy demand. 32 ASTAE ANNUAL STATUS REPORT #18 provide an energy-efficient (in terms of direct fuel used and technologies. Another study assessed the social and economic attractiveness to induce modal shift) public transport system; impacts of closing down antiquated cement plants. (ii) conduct a gap analysis of key investments in terminals and integration facilities needed to operationalize bus-rail Continued Support to the China Renewable 2 ASTAE-Supported Activities during FY2010 integration; and (iii) recommend a transition plan to implement Energy Scale-Up Program (CRESP) these changes. Large investments in coal-fired generation have masked The work is expected to lead to potential World Bank China’s achievements in developing renewable energy. With investment components in a new, multisectoral, Beijing the adoption of the Renewable Energy Law in 2006, passing integrated energy efficiency project under discussion that mandatory targets, setting up subsidies, and recently, feed-in could lead to the saving of 20 million tons of CO2. It is also tariffs, China’s wind installed capacity has doubled every year expected that the demonstration effects of a successful bus- since 2005, from 1.3 GW to 25.9 GW in 2009. The country’s route reform project in Beijing that leads to better integration installed wind capacity is now surpassed only by the United with the urban rail system will have significant impact in China States and expected to overtake it in 2010 (confirmed data not and lead to replication across the country. yet available at the time of print). Complementing these large-scale programs, small hydropower Continued Support to Energy-Efficiency and later photovoltaic (PV) solar were promoted by the Intervention Options in the Cement Sector government over the years to electrify rural counties and Fiscal 2010 saw the final disbursements for this activity, remote areas far from the grid. Wind, and to a lesser extent, which was finalized in fiscal 2009. China’s cement industry 33 biomass have begun to boom because of recent policy accounts for nearly half of the world’s total cement production; improvements. In 2008, installed capacity of small hydropower approximately 40 percent of this production is produced by reached 51 GW, the largest in the world, while biomass obsolete plants. Cement production consumes 10 percent of reached 3.1 GW and photovoltaic 140 MWp. These are total domestic coal consumption and 5 percent of electricity remarkable achievements by any standards. used in China. This sector also contributes to more than 10 In fiscal 2010, ASTAE provided limited support to the percent of the country’s CO2 emissions and 40 percent of its implementation of the second phase of the China Renewable industrial particulate emissions. Energy Scale-Up Program, a large operation with investments A study on improving energy efficiency in the cement sector in wind energy, biomass-fired power generation, and small in Shandong Province, the leading producer in China, was hydropower. Building on the success of the first phase, the completed in 2009, jointly funded by ASTAE and the China CRESP-II investment component focuses on large-scale, Sustainable Energy Program of the Energy Foundation. It offshore wind farms; small hydropower and biomass projects covered two important areas of energy-efficiency intervention (likely through financial intermediaries); and low-carbon cities, in China’s cement industry: (1) phasing out of obsolete integrating compact urban design, public transport, and production capacity, and (2) investing in energy-efficiency green buildings. ASTAE supported the offshore wind power improvements in plants with modern rotary-kiln production development dialogue and discussions among the Bank, the National Energy Administration, and investors on preparations for offshore/intertidal wind power projects. 34 INDIA ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in India EE among MSMEs, who are unfamiliar with the benefits of readily available, efficient equipment. It is estimated that by 2030, India will need to increase its available power supply by a factor of five to six times if it is Given these market barriers, the project proposes to adopt to meet its stated annual growth target of 8 percent. This will a programmatic approach to process a large number of 2 ASTAE-Supported Activities during FY2010 in turn increase emissions of greenhouse gases by a factor energy-efficiency investment proposals into clusters. This of four, as most of the demand is expected to be met by oil will aggregate demand for energy-efficiency investments to and coal. The industrial sector is particularly energy intensive, reach bankable size. To ensure sufficient focus and significant consuming more than 35 percent of the country’s total energy. intensification of impact, the project targets five highly energy- Improving the efficiency of energy conversion and use in this intensive MSME clusters: forging, foundry, limekiln, chemicals, sector is therefore a necessity to allow the country to meet its and one mixed industry cluster. energy, climate change, and growth challenges. ASTAE funding in fiscal 2009 and 2010 was used to identify The government of India has initiated and implemented a subgroup of clusters that would be used to pilot the numerous activities to improve energy efficiency, including selection and implementation modalities to be later used the establishment of a Bureau of Energy Efficiency (BEE) as project-wide. It provided consultant support for mobilization a statutory body under the Ministry of Power to facilitate and of the pilot clusters that included: forging in Pune; foundry coordinate energy-efficiency initiatives at the central and state in Kolhapur; mixed engineering in Faridabad; and chemical levels. The primary goal of BEE is to reduce energy intensity and petrochemical in Ankaleshwar. In addition, a lime cluster in the Indian economy, with a target of increasing energy in Thirunalveli has been identified for future initiatives. The preliminary assessment of EE potential led to selection of 35 efficiency by 20 percent by 2017 through interventions across a variety of sectors. clusters for expanding investments through larger projects, with proposed grant funds from the GEF . After identifying Continued Support to India Energy Efficiency in these pilot clusters, the project team found and trained each MSMEs focal organization, supported pipeline development, and established local monitoring and evaluation (M&E) systems. India has nearly 3 million MSMEs (micro, small, and medium ASTAE also funded workshops to present future GEF programs enterprises), which constitute more than 80 percent of the to banks offering EE lending schemes, to enlist new banks, and country’s industrial enterprises. Many are energy intensive, to mobilize lead banks for identified clusters. Finally, ASTAE employing inefficient and outmoded technologies and provided outreach to improve energy auditor capacity, raise operational modalities that threaten their competitiveness and market interest, and prepare for replication of work done in the future growth. Investments in cost-effective energy-efficiency pilot clusters at the program level. measures could improve MSMEs’ productivity and bottom- line profits. However, because of multiple market barriers and As a result of this pilot work, cluster mobilization, pilot-unit- distortions, only a small number of EE projects have actually level audits, and investment-grade project reports prepared in been implemented. Pune, Kolhapur, Ankleshwar, and Faridabad, eight projects were pre-identified, representing more than US$2.9 million in EE and ASTAE provided project preparation support to a World Bank fuel switching investment, with payback periods ranging from 5 project (described in chapter 3) that is expected to address to 20 months. These helped kick-start project implementation the barriers to implementation of energy-efficiency measures. by proceeding early to thorough specifications analysis with These include the barrier that energy auditors and practitioners vendors and by financing mobilization activities. who prepare technical energy-efficiency proposals for MSME clients do not know how to communicate with local banks. A second barrier is that the energy-efficiency components of MSME loans are often limited, and carry higher transaction costs as a percentage of investment than larger loans. A third barrier is lack of information among banking sector stakeholders on the potential market for lending and on the benefits of adding energy efficiency-related projects to their portfolios. Finally, there remains imperfect information about 36 INDONESIA ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Indonesia n the need for large-scale investment to achieve the Blueprint target, Indonesia’s economy has been growing at a rapid 6 percent pace annually in recent years. Exacerbated by insufficient n insufficient policies and regulations to support investment in new power generation capacity, however, implementation of the Geothermal Law, 2 ASTAE-Supported Activities during FY2010 national power demand has begun to outstrip supply. The n inadequate incentives and pricing mechanisms to reflect government of Indonesia responded to this urgent need by geothermal’s environmental benefits and account for upfront devising and implementing a “crash program” to construct risks of developing unexplored geothermal fields, 10,000 MW of coal-based generation capacity by 2011, n limited institutional capability to properly plan geothermal considered an immediately available option for expanding development and sufficiently engage suitable developers, and generation capacity at low cost. n weak domestic capacity in resource exploration and in Indonesia has the world’s largest geothermal power potential, operation and maintenance of geothermal energy facilities. enough to fuel about 27 ,000 MW of generation capacity. Geothermal is a clean and efficient alternative that can diversify Indonesia’s electricity generation mix. This largely Continued Support to the Indonesia untapped resource can be a good substitute for other base- Geothermal Power Support Program load generation technologies such as coal, and it is not subject To support the government’s commitment toward a greener to the intermittency and variability of other renewable energy energy-generation mix and its low-carbon growth strategy sources. As an indigenous and nontradable energy source, it (under development), the World Bank has responded by 37 can also enhance the country’s energy security and serve as developing a strategy with a two-pronged approach. On a natural hedge against the volatility of fossil-based commodity the policy side, the Bank is assisting the government in prices. undertaking major reforms that will progressively enhance the Therefore, a second 10,000 MW “crash program” was investment climate in its geothermal sector. On the financing proposed to expand Indonesia’s national renewable energy side, the Bank is helping to immediately stimulate investments portfolio, thereby diversifying its energy mix. To facilitate this by directly supporting geothermal developers who are at an ambitious goal, the government designated that geothermal advanced stage of project preparation. power will comprise up to nearly 40 percent of the second In fiscal 2009, as part of an overall effort to address regulatory crash program. This midterm goal to scale up geothermal barriers in the geothermal sector, ASTAE provided consultants capacity echoes the 2004 “Blueprint for Geothermal to support the GEF-funded policy-reform project activities by Development in Indonesia, ” developed by the Ministry of providing much-needed expertise to MEMR. With ASTAE’s Energy and Mineral Resources (MEMR) and intended as a support, the Task Team also assisted MEMR in establishing long-term roadmap to progressively develop a total of 6,000 a carbon finance framework as a programmatic approach to MW of geothermal power capacity by 2020. To enhance the Clean Development Mechanism (CDM). The framework the regulatory support and oversight required for this major aims to streamline and simplify geothermal projects for undertaking, MEMR also established a dedicated directorate CDM registration and emission-reduction transactions. CDM for geothermal development to take the lead in coordinating revenues from sales of emission reductions will enhance various stakeholders to implement the geothermal initiative. cash flows for developers, helping meet the incremental cost Despite ambitious geothermal objectives and recent reform of geothermal energy. Finally, the Task Team also used ASTAE initiatives, Indonesia’s present geothermal capacity of funds to identify and begin preparation of an investment approximately 1,000 MW remains far short of the interim project to finance geothermal fields development with target in the Blueprint. Only a handful of current geothermal Pertamina Geothermal Energy (PGE), a leading geothermal fields in Indonesia have been expanded over the past decade, developer in Indonesia. This project obtained GoI endorsement with no new development in unexplored geothermal fields and confirmation of interest for the proposed related loan. that are seen to have greater risks. Major barriers keeping Given the successful achievement of the objectives set out Indonesia from fully realizing its geothermal potential include in fiscal 2009, and the resulting scale-up of the World Bank’s engagement in the sector, ASTAE funding was increased and extended into a second phase in fiscal 2010. Indonesia has the world’s largest geothermal power potential, enough to fuel about 27,000 MW of generation capacity. Geothermal is a clean and efficient alternative that can diversify Indonesia’s INDONESIA electricity generation mix. 38 ASTAE ANNUAL STATUS REPORT #18 The ASTAE grant was primarily used to scale up the policy dialogue with and the advisory support to the government. In particular, it provided critical support to the government’s efforts to develop a pricing and compensation policy for 2 ASTAE-Supported Activities during FY2010 geothermal development. It also helped the government provide intellectual input at the bi-decennial 2010 World Geothermal Congress hosted by Indonesia. This helped cement the government’s resolution to continue on the geothermal development path. The grant was also used to complete considerable follow- up work on carbon finance, such as training MEMR staff, consensus building among stakeholders, drafting of an operations manual, and preparing a design note for a coordinating/managing entity for the carbon finance framework. These have helped ready the government for the due diligence that will be carried out by the World Bank. Finally, the ASTAE grant also helped PGE develop its capacity to prepare and undertake geothermal investments that meet industry good practice standards. As a first-time client of the 39 World Bank, and in the midst of a major scale-up in activities, more support than anticipated was required to support PGE in increasing its overall capacity in preparing for the proposed project. For example, the company experienced delays in selecting consultants to assist with project preparation, prompting the World Bank team to step in to fill some of the void, and ensure that the preparation schedule could be maintained and prevent the project grinding to a halt. The ASTAE-supported Geothermal Clean Energy Investment Project was awarded US$125 million allocation from the Climate Technology Fund (CTF), in addition to the IBRD lending pending presentation to the Board. CTF committee members were highly complimentary of this first EAP Region Bank project presented for CTF funding and regarded it as an example of good practice to be followed by future projects. LAO PDR 40 Figure 2-6: Lao PDR Remarkable Electricity Access Growth 1,000,000 100% 90% 900,000 90% 800,000 80% 69% 700,000 70% Households Electrified 600,000 60% 500,000 50% 400,000 40% 300,000 30% 15% 200,000 20% 100,000 10% 0 0% 1993 1995 1997 1999 2001 2003 2005 2007 2009 2020 Year Households Electrified Rate of Electrification Source: Ministry of Energy and Mines. Lao PDR, and Electricite’ du Laos ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Lao PDR shared lessons learned with the Lao PDR government; and identified future challenges and means to overcome them in Lao PDR is a landlocked country, with thickly forested pursuit of universal access. In fiscal 2011, ASTAE will provide landscape consisting mostly of rugged mountains, steep a documented case study for other developing countries terrain, and narrow river valleys. The Mekong River forms 2 ASTAE-Supported Activities during FY2010 struggling with low electricity access can reference. a large part of the western boundary with Thailand. With a population of 6.2 million in 2008, population density is low The case study assesses and documents the key factors and compared to neighboring countries. Around three-quarters developments in the power sector—grid and off-grid—over of the population live in rural areas, mostly in valleys of the the past two decades, and the drivers that contributed to Mekong River and its tributaries. rapid scale-up in national electrification. Such factors included, but were not limited to, aspects of the sector framework With close to 80 percent of the population living on less than and policies put in place; the institutional structure and the US$2 per day and a 2008 GDP per capita income of US$850, roles and responsibilities of each institution; the commitment Lao PDR remains a poor country, although it has enjoyed and engagement of the government; the financing, tariff strong 6 to 7 percent economic growth rate over the last instruments, mechanisms, and policies in place; the political decade. environment; program planning and prioritizing; and aspects of The country is well endowed with renewable sources of implementation. energy. Close to 90 percent of the installed generation capacity The study complements Bank sector work in Lao PDR in and the electricity produced is hydroelectric; hydropower support of rural infrastructure development, which targets potential is estimated at 18,000 MW. Lao PDR is able to export 41 especially the poor rural population, and promotes sector- electricity to neighboring countries, thus contributing to their wide reforms and institutional capacity building. This support substituting fossil fuels with renewable hydro. will contribute to meeting the GoL National Socio-Economic Over the past two decades, Lao PDR has made remarkable Development Plan’s (NSEDP) goals of poverty reduction and progress in increasing its electrification rate. Currently, over establishment of an enabling environment for growth and 70% of the population has access to electricity, up from 16% development, especially in rural areas. As the grid spreads into in 1995. It has achieved this rapid growth despite being a less densely populated and less accessible areas, the current least-developed country and having a low-density, mostly rural approach to electrification is becoming very expensive. Looking population; all this combines to make the country a rare case in ahead, new demands on and expectations of the sector electrification programs (Figure 2-6). will pose challenges of greater scale and scope than were encountered earlier. To maintain the current rate of progress, Lessons from the Lao PDR Rural Electrification it will not suffice—in both grid and off-grid electrification—to Program merely do more of the same. Since 1987 , the Bank has supported four successive rural The key lessons learned from the study are summarized by the electrification (RE) projects in Lao PDR, including grid six following success features: extension to about 150,000 households and off-grid renewable 1. Sustained government commitment (with strong energy technologies to more than 15,000 households. In donor engagement); addition to investment in grid-extension and off-grid RE programs, these projects have provided a platform for 2. Effective institutions (and an effective utility); continued Bank support to the government of Lao PDR in 3. Quality planning and low-cost solutions; policy dialogue, sector reform, and capacity building in the 4. Ensured financing and operational viability (stable power sector, and are instrumental to the rapid expansion of financing platform); RE and the remarkable improvements in financial performance achieved in the power sector. 5. Focus on consumers and targeting the poor (include gender and equity dimensions); and In fiscal 2010, ASTAE activity identified the key factors contributing to the swift expansion of RE in Lao PDR; 6. Off-grid electrification to complement grid extension. 42 MONGOLIA ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Mongolia develop a program aiming to provide cleaner, affordable heating to ger areas in Ulaanbaatar, but that there remain significant As the world’s largest landlocked country, between the two large technical and financial barriers to an immediate successful rollout. economies of China and Russia, Mongolia is in a unique position These are being addressed through other World Bank project to facilitate regional cooperation in the northeast regional energy 2 ASTAE-Supported Activities during FY2010 activities in collaboration with Mongolian counterparts. market in the areas of trade, mining, and energy services. The national grid that is currently interconnected with the Russian electricity system can import power to meet incremental demand Continued Support to the Mongolia Electricity increases for future expansion in Mongolia’s own electricity Sector Project system, which is under severe financial constraints. In fiscal 2010, ASTAE continued to support the implementation of the Mongolia Energy Sector Project. This project was designed Another pressing energy-sector challenge that the government to reduce power distribution system losses and improve revenue of Mongolia needs to tackle is to provide clean, affordable energy collection in electricity distribution companies throughout for space heating. The winter season in Mongolia lasts about Mongolia. Implementation of the project has resulted in lower three-quarters of the year, and temperatures often dip to 20–40 technical and nontechnical losses, from an average of 31 percent degrees Celsius below zero. At these temperatures, energy to 20 percent in Ulaanbaatar, and timely billing and revenue for heating is not just a matter of comfort; it is vital for survival. collection that significantly increase the financial viability of the Heating is the single largest consumer of energy in Mongolia, utility. Based on these encouraging outcomes, the Mongolian amounting to about 35 percent of the total. A substantial disparity government has requested additional funding to expand the in the quality of heating services and costs exists between urban original scope of the project to further enhance its impact and 43 centers and periurban areas. Although families and businesses development effectiveness. The successes of this project were in urban centers have access to centralized district heating chronicled in the documentary described below. systems, households in the periurban ger (district) rely on coal- or wood-burning stoves for heating and cooking—a major source of outdoor and indoor air pollution. The low chimney stacks of the Mongolia Energy Project Documentary ger stoves, combined with unfavorable air flow conditions, further Mongolia faces the critical challenge of improving the efficiency contribute to severe outdoor air pollution, especially during the performance of existing distribution assets, some of which have long winter months. Furthermore, studies have shown that indoor up to 50 percent electricity losses. The World Bank is supporting air pollution from heating stove and heat-only boiler emissions this effort through the Mongolia Energy Sector Project (US$30 plays a significant role in causing major health problems. million IDA), which focuses its efforts on the capital city’s distribution company (UBEDN) and six additional provincial Continued Support to the Mongolia Energy- utilities. The project is under implementation and has had positive Efficient and Cleaner Heating in Periurban results, with a steady decline of losses from a 50 percent Ulaanbaatar Project maximum in some utilities to 15 percent over a period of two years. To support the government of Mongolia’s objective of improving heating in periurban ger areas, the World Bank Task Team is ASTAE supported the project during both the identification and providing technical assistance to the Mongolian Ministry of implementation stages by procuring services to assess and Mineral Resources and Energy, through a series of activities to supervise proposed technical and commercial loss-reduction assess the air pollution problem in Ulaanbaatar and its periurban programs in selected distribution utilities; then organized and areas and recommend abatement options to improve air quality. coordinated with national and regional stakeholders to develop During fiscal 2010, ASTAE finalized the report on “Energy-Efficient consensus for policy improvements, best practices, and and Cleaner Heating in Periurban Areas of Ulaanbaatar. ” The knowledge dissemination; and finally, provided contingent advice report highlighted the city’s rapidly deteriorating air quality, and on both technical and commercial practices and policies. focused on the heating and cooking stoves used by ger residents ASTAE created a documentary video to showcase project as among the main culprits. It has also been recognized that achievements. The 26-minute, high-resolution, TV-ready piece exposure to airborne pollutants, primarily fine particulates such presents this success story and has been distributed to a wide as PM2.5 and PM10, is a health hazard for all city residents and international audience. It was shown on the national television has a serious negative impact on the economy. The findings of the network and made available as a DVD distributed at international ASTAE-funded activity led to the conclusion that it is possible to conferences and seminars. It is available on the World Bank and ASTAE Web sites and on YouTube. 44 Pacific Islands ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in the Pacific Continued Support to the Tonga: Renewable Island Countries Energy Development The Pacific Island countries (PICs) face similar complex Well over half of Tonga’s energy needs are met by imported development challenges, largely the result of their small, petroleum. Although biomass remains important for cooking 2 ASTAE-Supported Activities during FY2010 sparsely distributed populations and remote locations. and crop drying, it is increasingly being replaced by kerosene Exacerbated in some countries by political instability, the PICs’ and liquefied petroleum gas as the cooking fuel of choice. unique challenges have resulted in weak economic growth. Tonga enjoys a high rate of access, with 89 percent of all Even those countries with positive growth in average per households connected to grid electricity, which accounts for capita income have difficulties translating this into sufficient job over 98 percent of electricity used. All grid-supplied power is creation and poverty reduction. generated using imported diesel fuel. Because of the lack of available options, petroleum imports, such as motor spirits, The PICs have some of the world’s most expensive energy distillates, and liquefied petroleum gas, place a considerable services. High fuel price volatility is compounded by burden on national finances. Oil price volatility is causing fragmented purchasing of relatively small volumes, high severe foreign exchange, balance of payments, and other fiscal transport costs, and expensive storage and distribution challenges to the government; fuel accounts for around 25 charges. Such volatile energy costs contribute to increased percent of all imports and around 10 percent of GDP . poverty, political pressures, and instability. Power utilities in the PICs are the largest national users of imported diesel and are In 2009, Tongan authorities requested urgent support from squeezed by fuel costs, but are unable to increase customer the international donor community to help switch from diesel- 45 prices. Consequently, they are incurring significant losses and based generation to renewable energy, with an ambitious draining public finances. target of 50 percent of grid electricity generated using renewable sources in three years. The World Bank responded The utilities have limited capacity to invest in energy efficiency, by providing technical assistance to develop and reinforce system maintenance (up to 80 percent of required O&M energy policies, strengthen regulatory regimes, integrate costs can end up spent on fuel), and expansion of access to supply-chain management, hedge fuel purchase costs, electricity, which remains low overall in the PICs and varies and develop energy-efficiency and power-system planning, widely—from 7 to 9 percent in Papua New Guinea (PNG) to including a mix of renewable energy- and fossil-fueled about 65 percent in Fiji and 89 percent in Tonga. In addition, generation. affordability on the household level remains a major problem. Reducing electricity’s cost and increasing access are vital to In fiscal 2009, under this technical assistance, ASTAE promoting economic growth and improving the quality of life of sponsored a study that assessed renewable energy potential PIC households. and proposed alternative development scenarios in Tongapatu, Tonga’s main island and home of its capital. In the past, Faced with looming foreign exchange and balance of payments Tongan authorities had proposed a wind farm far in excess of crises, political support is strong in many PICs for urgent the absorptive and dispatch capacity of the main grid’s current action to diversify power supply through an increased use of 13 MW. The study, published on ASTAE’s Web site, included renewable energy sources. Avoiding such crises is critical system and load forecast analysis to assess the suitability of to limiting currency depreciation, and increased costs of both intermittent (such as wind) and firm (such as biomass) servicing foreign-denominated debts, as well as restrictions on renewable sources to the existing grid system. further access to funds and related negative effects on private sector investment. Fortunately, many PICs are blessed with In fiscal 2010, the ASTAE funds contributed to the development rich renewable energy endowments, such as solar, wind, and of a 10-year Tonga Energy Roadmap aiming at reducing hydropower, and considerable energy-efficiency potential to vulnerability to oil price shocks and increasing environmentally further strengthen their power sector and reduce reliance on sustainable access to modern energy services. The first target imported fuels. is to have renewable resources supply 50 percent of electricity generation by 2012. To achieve this goal, the Roadmap presents policy, institutional, legal, regulatory, capacity-strengthening and data-gathering requirements; strategic environmental and social assessments and strategic investments in improved Pacific Islands In fiscal 2010, ASTAE funds contributed to the development of a 10-year 46 Tonga Energy Roadmap which includes the design and launch of a funding mechanism to allow flexibility in the use of grant funds to cover both upfront investment as well as ongoing costs for renewablE. energy projects, including for on-grid solar PV supply and for using coconut oil in some instances to replace diesel fuel. ASTAE ANNUAL STATUS REPORT #18 efficiency of electricity supply; improved network safety; in increased foreign exchange reserves, as fuel imports and improved end-use efficiency. It also includes the design would decrease significantly. Another result would be new or and launch of a funding mechanism to allow flexibility in the increased support for private-sector development by tapping use of grant funds to cover both upfront investment as well the sector to develop, operate, and maintain the system. In 2 ASTAE-Supported Activities during FY2010 as ongoing costs for renewable energy projects, including the medium term, as SIEA becomes more efficient, finances for on-grid solar PV supply and for using coconut oil in some would become available to better maintain and further develop instances to replace diesel fuel. distribution infrastructure and increase access. The Tonga Energy Roadmap was showcased at the Pacific During fiscal 2010, ASTAE funds financed a hydropower Energy Ministers meeting in Brisbane in July 2010 and at specialist for project preparation in designing feasibility studies the International Renewable Energy Association (IRENA) of hydropower system options. The hydropower specialist Administrative Committee meeting in Abu Dhabi in June 2010. advised the Task Team and the government, and participated in monthly progress meetings among International Financing Solomon Islands Tina River Hydropower Institutions through fiscal 2011. Also in fiscal 2010, ASTAE Development Project supported a review of the legal and institutional processes for land acquisition, and advised on a single process for The Solomon Islands are a double chain of 992 islands, of project preparation that would integrate the Solomon Islands’ which one-third are populated. The estimated population of requirements with those of the World Bank. 500,000 lives primarily on six main islands. Ethnic tensions and rioting had a negative effect on the economy in 2003. The Task Team Leader noted that ASTAE was a critical source of funding for the preparation of this flagship operation. 47 The country later enjoyed a strong recovery, but still faces a number of challenges. This has enabled the Bank to undertake comprehensive social safeguards and technical work—essential for project The majority of the population remain involved in subsistence development in this complex social setting, with its different cash crop agriculture, with less than 25 percent involved in and potentially conflicting land ownership arrangements—the paid work. Exports are commodity-based and include timber, scope of which would be difficult to fund within the normal fish, cocoa, and copra. Logging rates are around four times the Bank budget. This work is expected to continue into fiscal 2011. sustainable rate. The energy sector also faces major issues, primarily linked to high costs and unreliable electricity supply, lack of access, and serious inefficiencies within the Solomon Islands Electricity Authority (SIEA), the national utility company. The current national household electrification rate is very low, at an estimated at 20 percent, or about 18,000 households connected, primarily in the capital. This ASTAE activity builds on the hydropower generation component of a sustainable energy project that was restructured in fiscal 2008. ASTAE funded the creation of two handbooks on land use and land access for generation and transmission projects, and on community contribution to environmental impact assessments for infrastructure projects. In fiscal 2009, rather than financing a project executed by the government, the World Bank decided to support the proposed Tina River Hydropower Project as a private sector design-build- operate-maintain-transfer project. The proposed project, also supported by Ausaid and the European Investment Bank, aims to develop a hydropower system (about 10-15 MW) to provide power to Honiara, the capital city. The immediate result would be replacement of current, very expensive, diesel-driven generation, resulting 48 PHILIPINES ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in the Philippines their service territory, are required to meet the same financial efficiency standards; this imposes financial strains on those The Philippines has a diverse population of 90 million. It is subject to unfavorable conditions (poor-performing ECs reasonably well endowed with natural resources. It has limited most often serve small islands or those with law and order commercial reserves of fossil fuel, mainly natural gas and 2 ASTAE-Supported Activities during FY2010 problems, for example). In some cases, regulatory pressure coal. Commercial-scale geothermal energy and hydropower on rates reduces efficiency by making sufficient spending on resources are being harnessed to help meet the country’s maintenance and rehabilitation impossible. It is estimated that power needs. Because of the projected increase in electricity one-third of ECs are not financially viable, given current tariffs, demand, greenhouse gas emissions from the power sector are and many do not meet technical and financial requirements expected to increase dramatically, doubling over the next 10 necessary for recovering costs. years under a business-as-usual scenario. ASTAE funding, approved in fiscal 2006, was intended to The launch of the national Accelerated Barangay Electrification offer access to international expertise and lessons learned, as Program (ABEP) in 1999 has helped substantially increase the well as practical knowledge to support the various subproject population coverage of the power grid in rural areas, raising proposals under the GEF project. However, for a number of the ratio of electrified barangays (administrative divisions reasons, the Electric Cooperative System Loss Reduction equivalent to a district; not to be confused with household Project did not advance as originally planned. Consequently, electrification) from 77 percent to 96 percent in 2008. while some ASTAE-funded work was done in fiscal 2007 , the While the nationwide household electrification rate is quite Task Team soon halted activities that were to be funded by high at 84 percent, there remains substantial work to be ASTAE because of lack of progress in the GEF project. 49 done in rural areas, where these rates leveled off at around In fiscal 2009, ASTAE provided support to the mission by 70 percent and have not substantially progressed since undertaking the project midterm review, which looked for early 2000. Rural power, especially in remote island areas, is ways to restructure the project to avoid cancellation. As a characterized by a high dependence on imported diesel or result, a new road map, involving all key stakeholders, was bunker fuel for generation, resulting in higher carbon intensity agreed upon. ASTAE support was critical in the restructuring than in the rest of the energy sector. and in clarifying the way forward, which calls for increased involvement by the National Electrification Agency in project Continued Support to the Philippines Power implementation. System Loss Reduction Project In fiscal 2010, ASTAE continued to provide support to work The World Bank’s Electric Cooperative System Loss Reduction that promotes the move toward ECs-tailored standards Project was started in fiscal 2005 with a US$12 million grant for distribution losses and reinvestment allowance. These from the GEF to test business models that would provide standards would accommodate the fact that ECs vary widely operating efficiency improvements in electricity cooperatives in size and in the geographical conditions under which they (ECs). The expected outcomes were a more reliable but least- operate. Better performing ECs serve large and progressive cost power supply over the long term, and new capacity to provincial cities while the poor-performing ECs normally serve invest in connecting additional households. Toward these ends, small islands or those with law and order problems. The current the project created a partial credit guarantee program to extend regulatory approach of stipulating common standards for commercial loans aimed at developing financial and contractual distribution losses and reinvestment allowances is ineffective mechanisms to support private-sector involvement in investing, in promoting efficiency, as regulatory pressure on rates can managing, and operating ECs. reduce efficiency by preventing ECs from spending enough on Most of the barangays benefiting from this effort are served maintenance and rehabilitation. by 119 ECs, with customer bases varying widely from about 1,000 to over 130,000 customers each. The financial and operational capacity of the ECs also varies widely, the result of low cost-recovery rates—the result of socially acceptable but economically unsustainable tariffs, poor financial management, a decline in bill collection rates, and increasing political interference. All ECs, regardless of the conditions in 50 TIMOR-LESTE ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Timor-Leste The ASTAE activity assessed various solar PV business models (such as dealer, fee-for-service, market package, Timor-Leste, a new country of just one million citizens, is and concession) and recommended the most adaptable to a picture of contrasts. On the one hand, it is generating and implementing a sustainable, private sector–led PV program accumulating substantial revenues from offshore oil and gas 2 ASTAE-Supported Activities during FY2010 focused on remote, off-grid populations. It also evaluated resources. On the other hand, it is one of the least developed candidate microhydro sites, defined potential investment countries in the world, with much of the population living in projects or pilot projects, evaluated community-based poverty. For the rural energy sector, the key challenges to the management options, and provided subproject design government lie in addressing the potentially serious health concepts. The study also evaluated options for sustainable and environmental problems associated with continued heavy dissemination of improved stoves, including commercial mass dependence on biomass fuels, and providing improved access production and marketing, organized instruction for household- to modern fuels, particularly electricity, to all segments of the made stoves, or a combination of approaches. Finally, it carried rural population. out energy audits of some biomass-using rural industries, and estimated costs of potential energy efficiency measures. Timor-Leste Rural Energy Access and Efficiency The results of these ASTAE activities are expected to catalyze The electrification rate in Timor-Leste is low, at 21 percent action on a project that would fill a crucial gap in current rural nationally and only 5 percent in rural communities. Despite electrification plans and address key biomass energy issues. ongoing efforts, some 60,000 households in remote areas There had been agreement in principle by the World Bank and will remain without access to electricity for the next 20 years GoTL on the need for such a project, but no firm discussion 51 because of their dispersion and associated high connection or decisions for lack of specific discussion material. The ASTAE costs. With regard to overall fuel consumption, biomass activities are expected to rectify this, as the key parties will be energy (fuelwood) exceeds that from all other fuels combined, able to review concrete project details and costs. including hydrocarbons, reflecting the still highly undeveloped and rural nature of the economy. In 2007 , ASTAE supported a household energy study that showed the predominant role of fuelwood in Timor-Leste’s energy mix (98.7 percent all households use it as their main cooking fuel) and the need to address issues of potential deforestation and the adverse health impacts of indoor air pollution on women. Off-grid PV and decentralized microhydropower systems have been identified as least-cost solutions for off-grid electrification. In fiscal 2010, ASTAE financed an assessment of rural and renewable energy options, with complete techno-economical analysis of the different options, and identified and prepared the design of practical solutions for implementing its recommendations. ASTAE also produced a report to help the government with its rural energy policy choices. The focus in particular was to assist the Secretary of State for Energy Policy in developing clear and coherent policies. These would guide planning of the subsequent phases of ongoing programs, initiation of new programs, and prioritization of projects competing for limited funds. 52 VIETNAM ASTAE ANNUAL STATUS REPORT #18 Key Challenges and Focus in Vietnam Continued Support to the Vietnam Renewable Energy Development Project Vietnam’s strong economic development has resulted in rapid In fiscal 2009, ASTAE provided support to the preparation of growth in the demand for electricity. Starting from an originally the REDP in Vietnam, which was presented to the Board in 2 ASTAE-Supported Activities during FY2010 low level (11 TWh in 1994, or 156 kWh per capita), electricity May 2009. This US$318 million project, with US$202 million demand grew at an annual average rate of 15 percent until in IDA financing and US$114 million sourced locally, aims at 2006 and 13 percent thereafter. In 2008, it reached 76 TWh and increasing the supply of electricity to the national grid from 800 kWh per capita. renewable sources. Residential consumption still represents 40 percent of REDP was designed to address three issues that hinder demand, while industry led the recent growth, reaching 45 the development of renewable energy electricity-generating percent of the total as the sector began manufacturing more projects in Vietnam: sophisticated products. According to current plans, hydropower 1. The absence of satisfactory arrangements for selling and natural gas are each expected to contribute about 40 power to the grid at an equitable price; percent of power generation over the next few years, and coal- fired generation the remaining 20 percent. After 2011, most 2. An inhospitable and nontransparent regulatory of the growth in generation is expected from coal-fired power framework, with large numbers of approvals required plants. and no satisfactory means of allocating project sites to those most able to develop them; and This extraordinary growth has influenced the Bank’s strategy 53 in Vietnam’s energy sector: It has focused on meeting demand 3. The lack of available debt financing on terms and with reliable and cost-efficient power, while strengthening with maturities that meet the needs of renewable social inclusion by expanding rural access to the poor, and electricity projects. improving natural resource and environment management To counter this situation, REDP provides regulatory framework through increased system efficiency and promotion of the strengthening, pipeline development, and investment support utilization of renewable energy. to private-sector, renewables-based subprojects not exceeding ASTAE has been deeply involved in all aspects of the Bank’s 30 MW. The core component of the project is making a intervention except conventional generation and transmission, refinancing facility available to participating commercial banks and continues to provide support to the RE agenda in that provide loans to eligible subprojects. The facility can Vietnam. In addition to its past support to the design and refinance up to 80 percent of the loans made by commercial implementation of Rural Electrification Projects I and II, which banks. It is estimated that up to 25 subprojects, principally provided new or improved access to 2.5 million households, small hydropower, but also wind or biomass, will be supported ASTAE provides knowledge sharing and dissemination by the refinancing facility. Subproject size is expected to of lessons learned from this exercise. “The Last Mile” average 10–11 MW and cost an average of about US$12 documentary was produced with ASTAE support in fiscal million. 2008 to explain and illustrate Vietnam’s accomplishments The financial intermediary makes wholesale finance available in increasing access to electricity from less than 50 percent to leverage local capacity to sponsor, appraise, finance, to more than 95 percent of the population in 15 years. This procure, and construct individual subprojects. This allows rapid experience was shared with other countries at a major World implementation of individual projects while creating the basis Bank conference on best RE practices in Mozambique in for a sustainable private renewable energy supply industry. June 2009, and a companion book to the documentary was prepared in fiscal 2010. This book aimed to further share ASTAE provided support in fiscal 2009 to build capacity within lessons learned from the Vietnamese case study and to the Ministry of Industry and Trade in charge of developing provide a stock-taking of the last 5 percent of the population REDP , and to prepare frameworks and guidelines applicable to that requires access, an effort likely to include substantial off- eligible subprojects with respect to environmental safeguards, grid and renewables-based options. dam safety, resettlements, and ethnic minority policies. In the same year, ASTAE funding also provided support to the World Bank team for project preparation and appraisal. 54 VIETNAM ASTAE ANNUAL STATUS REPORT #18 In fiscal 2010, following Board approval of the project, ASTAE shifted support to the implementation phase of the REDP , in the form of much-needed capacity building of the project’s management board and administrative units, including by 2 ASTAE-Supported Activities during FY2010 facilitating knowledge sharing with China, where ASTAE has supported a similar initiative, on policy establishment and implementation methods. With ASTAE support, the government drafted CDM documents that were submitted to the UNFCCC in December 2009 as planned. Also in fiscal 2010, ASTAE financed the training of projects sponsors to help them identify and build a pipeline of potential subprojects. ASTAE also provided training to Vietnamese banks, which have limited experience with renewable energy projects and with commercially oriented project appraisal, to ensure they can follow international best practices. Specific emphasis was put on improving participating banks’ and project developers’ knowledge of environmental safeguard frameworks and procedures. Finally, ASTAE funding also contributed to a life-cycle cost 55 optimization study initiated to analyze the trade-off between initial capital investment and lifetime operation and maintenance (O&M) costs in small hydropower project development in Vietnam. This is intended to help design appropriate strategies and technical specifications in procuring equipment for these plants to ensure the least life-cycle costs. The study will extend into fiscal 2011. 56 REGIONAL PROJECTS ASTAE ANNUAL STATUS REPORT #18 Regional Projects, Outreach and The work began in fiscal 2009, to be completed following an Knowledge-Sharing Activities eight-tasks program. By the end of fiscal 2010, the first five tasks were completed: assessment and literature review; analysis of construction practices in focus countries and Continued Support to the Regional Carbon 2 ASTAE-Supported Activities during FY2010 detailed cases studies; greenhouse gas emission calculations; Mitigation in Road Construction and and identification of gaps between best practices from Rehabilitation Toolkit developed countries and focus countries; and practices and In the energy sector, ASTAE is supporting multiple projects that propositions to remediate these. ASTAE, after consultation reduce CO2 emissions. The transport sector consumes energy with the Task Team, decided to focus the case studies on in the form of fuel, so it is closely linked to energy sector China, Indonesia, and Vietnam, countries that are undertaking challenges. Transport contributes significantly to greenhouse large programs of road expansion. gases—cars are responsible for more than 60 percent of road Upcoming work in fiscal 2011 is expected to assess costs and transport emissions. However, another contributor, less known, benefits of each alternative practice proposed, and to develop goes hand-in-hand with the development of road transport in the final version of Roadeo for wide dissemination. The current developing countries: road construction. It is anticipated that Roadeo iteration has already garnered a high level of interest over the next several years, developing countries in East Asia from the transport community; the final product is expected will substantially expand and restore their extensive highway in early 2011, and will be presented at high-level international networks. One result of these activities will be increased symposia and at several national stakeholders meetings. greenhouse gas emissions. Reducing these emissions will significantly decrease the negative impacts related to these 57 infrastructure works. Continued Support to the East Asia Pacific Energy Flagship Study There are several steps involved in road construction, each contributing to the production and release of greenhouse In fiscal 2010, the East Asia Pacific energy flagship study, gas emissions: site clearing, preparation of the sub-grade, entitled Winds of Change, highlighting prospective energy production of construction materials (granular sub-base, sector challenges and how to meet them, was delivered and base course, surfacing), site delivery, construction, ongoing disseminated. ASTAE support was combined with funds from supervision, maintenance activities, and so on. The aggregate Australia, Japan, ESMAP , the Bank, and PPIAF to deliver the greenhouse gas emissions for each project (phase, section, product. This broad-based funding source reflects the nature alignment) can be calculated based on equipment, local of this study, involving upstream and downstream work, as conditions, and standard practice in a country. global knowledge and policies work are required to develop a regional strategy and future priority project pipelines based The Greenhouse Gas Emission Mitigation Toolkit for Highway on the study. A wide range of national consultations were held Construction and Rehabilitation (Roadeo) is being prepared to to discuss the flagship’s draft findings; participants included identify and quantify greenhouse gas emissions from current academics, policy researchers, government officials, NGOs practices, and to develop a strategy for better planning, design, and civil society, the private sector, and donors. Following and construction of roads in order to minimize these emissions. these consultations, the East Asia energy team extensively Roadeo, with the support of a User Manual, will guide users disseminated the results and associated strategy to national through various stages and activities of road construction and and international stakeholders. rehabilitation, help them identify areas sensitive to greenhouse The study focused on six countries in the region: Indonesia, gas emissions, and provide mitigation options, taking costs Malaysia, the Philippines, Thailand, Vietnam, and China. China and benefits into account. Decision makers, designers, and was treated separately, as it accounts alone for 85 percent of technicians in the highway sector can use Roadeo to easily regional energy consumption and CO2 emissions. compare various alternatives in construction, and optimize their practices to minimize greenhouse gas emissions and maximize The study finds that it is within the reach of the region’s energy efficiency. It is envisioned that the Roadeot Toolkit will governments to maintain economic growth, mitigate climate be used in both new and existing projects. change, and improve energy security. Simultaneous large-scale deployment of energy-efficiency and low-carbon technologies A major hurdle is in mobilizing financing for the net additional can stabilize EAP’s CO2 emissions by 2025, significantly investment of $80 billion per year needed to achieve this improve the local environment, and enhance energy security, sustainable energy path over the next two decades, as without compromising economic growth—in fact, benefiting estimated in the study. The study estimated that approximately from sustainable environmental practices and conservation as $25 billion per year would be required as concessional an engine of economic growth. financing to cover the incremental costs and risks of energy efficiency and renewable energy. In addition, substantial However, the study warns that the window of opportunity is grants are also needed to build capacity of local stakeholders. closing fast, as delaying action would lock the region into a The technical and policy means exist for such transformational long-lasting high-carbon infrastructure. The study recommends changes, but only strong political will and unprecedented that governments should take immediate action to transform international cooperation will make them happen. the energy sector toward much greater energy efficiency and widespread utilization of low-carbon technologies. While The World Bank Group is committed to scaling up policy many EAP countries are actively taking steps in this direction, advice, knowledge sharing, and financing for sustainable accelerating the speed and scaling up the efforts are needed to energy to help the region’s governments make such a shift. move onto a sustainable energy path. The study suggests that the Bank needs to increase efforts and keep focusing in EAP on EE, renewable energy, and new This shift to a clean energy revolution requires major domestic technologies. This reaffirms the relevance of ASTAE as a major policy reforms and transfer of financing and technologies instrument to support increased Bank lending and improved from developed countries. Fully realizing the huge energy 58 policy changes in the region. efficiency potentials in the region depends on policy and institutional reforms to overcome market failures and barriers. Figure 2-7: Policy Tools Need to Be Tailored to Maturity and Costs of Technologies Abatement Cost New Technologies Energy Efficiency Renewable Energy Abatement Potential Energy Pricing Reforms Policy Tools • Regulations and • Feed-in-Tariff or • Support For R&D Financial Incentives Renewable Portfolio Standard • Financing Incremental • Financing Mechanisms Cost • Institutional Reform • Tax On Fossil Fuel • Transfer Technologies ASTAE ANNUAL STATUS REPORT #18 Continued Support to Regional Wind Resources Cross-Support to Africa LED Light Quick Mapping for the Pacific Islands Screening Methodology Disbursements under this activity in fiscal 2010 are a payment LED lighting is a possible entry point for electricity access for spillover from fiscal 2009, under which the Pacific Islands over 1 billion people in developing countries, with the potential 2 ASTAE-Supported Activities during FY2010 Wind Mapping Atlas was delivered. Following requests from to substantially reduce the amounts that poor households Fiji, Papua New Guinea, Solomon Islands, and Vanuatu, ASTAE currently spend on inefficient kerosene lighting. funded and published this atlas of wind resources in the Rechargeable white LED lighting products consume as little as Pacific Islands, which provides necessary information on wind 0.5W of power, and may require solar panels as small as 1W. availability to foster the development of wind energy, both To date, however, solar projects in developing countries have for utility-scale generation and for community-based power focused primarily on systems requiring 30W panels or larger. generation, including off-grid applications. Some projects have worked with as little as 10-15W, but these Potential users of the Atlas include government officials, panels generally cost US$200 or more, with batteries and solar international aid agencies, development institutions, and controllers often adding an additional US$10-20. private developers. Because of the absence of existing reliable However, LED products best suited for household use off- local wind data, the study was requested and carried out using grid mostly start in the 1-5W range, and there are currently the Wind Survey system, an advanced wind mapping system no product specifications available to ensure acceptable that operates without the need for existing surface wind levels of quality. There are, more specifically, two key areas data. The Wind Survey tool had already been used in 2001 where there is a knowledge gap—LED lifetimes and proper 59 for ASTAE’s Wind Energy Resource Atlas of Southeast Asia, specifications for battery protection. Indeed, there is very which was made available to the public on CD-ROM and via little information available on lifetime LED lighting efficiency ASTAE’s Web site, and which remains in high demand today. and lumen degradation. In addition, because of the much The system simulates important meteorological phenomena lower cost of systems under 5W, the price of standard solar often not captured by other models (such as down-slope controller systems (US$10-20) is disproportional to the value mountain winds, channeling through mountain passes, lake of the batteries they protect (US$2-5 range). Simplified battery and sea breezes, low-level jets, temperature inversions, and protection specifications are therefore required to guide surface roughness effects). It also directly simulates long-term development of solar controllers in the U$1-2 range. wind conditions, eliminating the need for uncertain climatic adjustments using correlations between short- and long-term Low-wattage LED systems have great potential to be used surface measurements. as an initial source of electricity for household lighting in the Pacific as well as in some ASTAE countries with low access Both atlases characterize wind resources in their respective (Cambodia, Papua New Guinea, and others) while waiting for regions by recreating actual weather and wind conditions for a more traditional source of electricity (SHS, minigrid, or grid) 365 days that are randomly sampled from a 15-year historical to reach these households. In these low-access countries, the record. Its inputs provide a snapshot of atmospheric conditions issue at hand is similar to one in many African countries, for at regular time intervals throughout the world over the past which the Lighting Africa initiative was created. Lighting Africa several decades. For each day, the wind speed and direction, is a World Bank Group initiative that supports the private sector the temperature, pressure, precipitation, cloud cover, and other in developing, accelerating, and sustaining the market for meteorological variables at multiple levels above the surface modern, off-grid lighting technologies tailored to the needs of were simulated and stored at hourly intervals. When the runs African consumers. were finished, the data were compiled and summarized to produce maps of mean wind speed and wind power density, In fiscal 2010, ASTAE teamed with Lighting Africa, in as well as databases containing wind speed and direction cooperation with ESMAP and the Bank’s Africa Region (AFR), distributions. to finance an activity to develop a quick screening methodology for LED lighting. The activity handled by Lighting Africa on ASTAE receives regular requests for the Pacific Islands Wind behalf of ASTAE reviewed current product specifications Mapping Atlas from government officials, universities, and and testing procedures; developed a screening method; and practitioners in the field. While the Atlas is available on the provided a test report for about 30 LED lights. ASTAE website, these requests are often for data in CD-ROM format, as bandwidth is limited in the Pacific Islands. LED lighting is a possible entry point for electricity access for over 1 billion people in developing countries. 60 ASTAE ANNUAL STATUS REPORT #18 Following the methodology report, test procedures are being transferred to testing centers in selected Sub-Saharan Africa countries so that testing can be undertaken there. The technology transfer includes the methodology, training, and 2 ASTAE-Supported Activities during FY2010 essential test equipment. This project is expected to improve the ability of consumers and project implementation agencies to select high-quality white LED products that can provide efficient, clean, and cost-effective lighting in off-grid facilities, thus benefiting households in both the Africa and Asia regions. ASTAE Publications in Fiscal 2010 ASTAE activities produce multiple outputs under various formats, depending on the audience(s) targeted and the best way(s) to deliver information to them. Most report outputs are byproducts of an activity funded by ASTAE, though some are the end products of such activity. Whenever suitable, they are published, printed, and widely distributed to a broad audience, including through ASTAE’s Web site. The purpose of 61 the publications is to share the knowledge and experiences, especially innovative ones, generated from ASTAE activities within and among countries in the region and beyond. In fiscal 2010, ASTAE continued its technical report series of peer-reviewed, professionally published, high-quality consultant reports. These publications are being widely disseminated in printed and electronic form. Many other reports are not published, either because their value to the general public is limited or because they were confidential outputs delivered to partner countries. Following is a list of reports and publications produced in fiscal 2010. n Vietnam, Expanding Opportunities in Energy Efficiency, June 2010 n China, Strategic Guidance to Meet the Challenges of Offshore and Large-Scale Wind Power, April 2010 n East Asia Region, Winds of Change: East Asia’s Sustainable Energy Future, May 2010 n Cambodia, Improved Energy Technologies, February 2010 n China, Regulatory Review of Offshore Wind in Five European Countries, January 2010 n Tonga, Electric Supply System Forecast, February 2010 n Mongolia, The Next Steppe - Mongolia’s Energy Future, Dissemination Video, March 2010 62 3 ASTAE ANNUAL STATUS REPORT #18 3. ASTAE Performance Assessment— Fiscal 2007–10 Extended Business Plan Chapter 2 dealt specifically with ASTAE’s activities in fiscal 2010. This chapter re- views the overall performance of ASTAE-funded projects during the four years 3. AstaePerformance Assessment of the current business plan period, initiated for fiscal 2007–09 and extended into FY10 to complete disbursements. ASTAE Activities and Disbursements in Figure 3-1: Evolution of Annual EXTENDED Business Plan Period 2007–10 Disbursements and Comparison with Business Plan Budget During the last four fiscal years, ASTAE disbursements totaled US$7 ,365,439 from two trust funds provided by the government of the Netherlands and the government of $ 9.3 9 Sweden. This is equivalent to 99 percent of the US$7 .4 million $ 1.1 budget that was initially requested for the fiscal 2007–09 8 $ 2.1 original business plan period and was covered by the pledge by 7 the government of the Netherlands in March 2006. 6 In addition, the government of Sweden pledged SKr15 million $ 2.2 in May 2007 , which became available in 2008 and allowed 5 extension of the business plan’s reach for an additional year MILLIONS US$ $ 7.4 into fiscal 2010. 4 $ 1.8 3 Overview of Disbursements 2 As shown in figure 3-1, annual disbursements grew from $ 1.2 US$1.2 million in fiscal 2007 to the current annual rate of over 1 US$2 million, which exceeds the average disbursement in the 0 last decade. FY2007 FY2008 FY2009 FY2010 FY2007-10 BUDGET By the end of fiscal 2010, total donor resources disbursed by Annual Disbursement ASTAE had reached 99 percent of the US$7 .4 million budget allocated under the 2007–09 original business plan period. FY2007-10 Budget When combining these disbursements with the commitments Committed made at the end of fiscal 2010, as shown in figure 3-1, the total figure of US$8.5 million represented 92 percent of the combined budget available from both donors. This high level of commitments and disbursements led to the decision to extend the two trust funds into fiscal 2011 to ensure maximum disbursements before starting into a new business plan. The details of disbursements by country and fiscal year in table 3-1 show that total disbursements grew steadily during the first three years and leveled in fiscal 2010. Table 3-1: Disbursements, by Countries over the Business Plan Period Disbursements (in US$) Total Countries FY 2007 FY 2008 FY 2009 FY 2010 Period FY2007-10 China and Mongolia 21% China 129,628 238,736 288,917 183,355 $ 840,635 Mongolia 125,891 290,159 99,618 178,248 $ 693,916 Cambodia, Lao PDR, Thailand 7% Cambodia 0 43,012 108,459 32,263 $ 183,735 Lao PDR 0 0 0 56,452 $ 56,452 Thailand 234,736 79,508 7,197 0 $ 321,441 Indonesia 8% Indonesia 77,850 0 175,253 326,323 $ 579,426 Philippines 1% 64 Philippines 37,567 1,344 36,132 23,336 $ 98,380 Vietnam 10% Vietnam 51,083 356,067 188,704 161,677 $ 757,531 Papua New Guinea, Timor, and Pacific Islands Countries 17% Pacific 0 29,344 93,543 3,038 $ 125,925 Fiji 0 41,987 69,485 0 $ 111,472 Solomon Islands 0 238,936 76,449 63,705 $ 379,090 Tonga 0 0 48,867 100,851 $ 149,717 Timor-Leste 280,702 0 0 172,406 $ 453,108 South Asia Region 2% India 0 0 55,879 89,827 $ 145,706 Regional Projects, Outreach, and Knowledge-Sharing 10% Regional, KS 6,212 34,765 373,644 335,423 $ 750,045 Administration and Reporting Activities 23% Reporting 54,367 129,969 164,011 158,726 $ 507,073 Administration 218,553 363,930 391,042 238,262 $ 1,211,787 Total 1,216,589 1,847,757 2,177,200 2,123,893 7,365,439 % increase - 52% 18% -2% n.a. Not applicable. ASTAE ANNUAL STATUS REPORT #18 Figure 3-2: Disbursements, by Country and Financial Year Philippines FY2007 South Asia Region FY2008 3. AstaePerformance Assessment Indonesia FY2009 Cambodia, Laos and Thailand FY2010 Regional A ctivities, Knowledge-Sharing Vietnam PNG, Timor-Leste, and Pacific Island Countires China and Mongolia 0 500 1,000 1,500 Thousands US$ 65 Figure 3-2 shows that China, Vietnam, and Mongolia received Activity Repartition by Countries and Pillars regular and significant ASTAE financial support (11, 10, and 9 ASTAE funded 63 activities during the last four years. Many of percent of total expenditure, respectively). Indonesia also these covered several pillars, which explains why the total of saw recent growth in disbursements that put it on par with activities in figure 3-3 is more than 63 (see further details on other countries at 8 percent of total disbursements. Only the this in “Introductory Note to Figures” in chapter 2). Philippines and South Asia lagged behind in disbursements. ASTAE disbursements by pillar, shown in figure 3-3, The effort to reach out to smaller Pacific Islands countries demonstrate a strong position in the renewable energy sector, increased over the business plan period; these countries are which is the primary focus of nearly half of the activities now a major part of the ASTAE portfolio, with 17 percent of supported, with 28 of 63 activities receiving more than half the last four years’ disbursements. Timor-Leste and Solomon of the funding. Access activities were the core focus of 16 Islands represent the major portion of disbursements (6 and 5 activities, and were part of another 12 as a secondary theme; percent, respectively). There has been no activity in Papua New this explains the lower funding amount shown. Finally, energy- Guinea. efficiency related activities were core in 19 activities and The growth in the share of regional and knowledge-sharing secondary in an additional 6. It should be noted that cross- activities, and in reporting activities (10 and 7 percent, sector activities, such as with the transport sector, are often respectively), reflect ASTAE’s new commitment to share linked to energy efficiency. good practices within the region and develop information that is of value beyond a single country by supporting regional activities and improving the means of outreach and external communication. Abiding by the agreement with ASTAE donors, ASTAE’s administrative costs remained below 20 percent, in fact decreasing to 16 percent of total disbursements. Figure 3-3: Fiscal 2007–10 Disbursements, by ASTAE Pillar US$1,288,599 23% Access to energy Energy efficiency Renewable energy 28;33% 3;12% 28: 33% 31: 37% 25: 30% US$ 1,365.695 Inner circle: Number of projects 24% Outer circle: Amounts allocated US$ 2,987,108 53% 66 Overall, while the primary focus of disbursements is on Figure 3-4: Renewable Energy renewable energies, ASTAE task teams managed to keep a Disbursements, by Country good balance among the three pillars in the global portfolio in terms of number of activities, when taking into consideration both primary and secondary themes of activities. Indonesia 17% Figures 3-4 to 3-6 provide an overview of disbursements for Cambodia 2% each pillar, sorted by country, with the full disbursed amount allocated to the pillar of primary focus. These figures reveal the Thailand attention paid by ASTAE to channel funding in supporting the China China 11% pillar that requires the most support for each country. 14% 14% Pacific Islands Figure 3-4 shows a well-spread distribution of renewable Fiji 4% energy funding among countries in the East Asia and Pacific 4% Region. This indicates that while interest in renewable energy Vietnam Vietnam 14% 14% Regional is led by the efforts of large countries with robust domestic 19% programs to reduce their carbon footprint, it is no longer limited Solomon to these countries. In fact, ASTAE’s work in the Pacific Islands 13% Tonga has dramatically increased, and now represents about a quarter 2% of disbursements in renewable energy. This is driven by energy insecurity caused by fluctuations in international fuel prices and by the renewed interest in exploiting indigenous sources of renewable energy. Some significant regional activities were also undertaken—collectively representing 19 percent of disbursements—for the production of flagship reports as well as practitioners’ tools. ASTAE ANNUAL STATUS REPORT #18 Figure 3-5: Energy-Efficiency In energy efficiency, China and Mongolia represent more Disbursements, by Country than 60 percent of total disbursements. This is the result of ASTAE’s continued involvement in helping China’s industries realize their energy savings potential, and follows a series of Vietnam 4% activities devoted to addressing heating-related issues in Mongolia. Promising activities have also begun and in South Asia, as has ground-breaking regional work related to energy 3. AstaePerformance Assessment China 17% in the transport sector. While the disbursements are the lowest Timor-Leste China in Vietnam, the activity that began has a very high impact 11% 30% potential. South Asia In access to electricity, Timor-Leste, Vietnam, and Mongolia 11% each represent over one-fifth of disbursements, and illustrate the variety of the realities and challenges that countries Philippines 6% encounter in their efforts to increase access. In Vietnam, Mongolia ASTAE provided assistance to the government’s work to Regional 31% improve the quality of service and to deliver access to 7% electricity to the final 10 percent of population, primarily in remote rural areas. In contrast, access is much lower in Timor- Leste, where only 21 percent of the population have electricity; 67 therefore, the support provided is of a different nature, Figures 3-5 and 3-6 show that the disbursements relative to focusing on basic new connections, increasing customer the energy efficiency and access to modern energy services payments, and increasing the number of hours electricity is pillars are more narrowly focused on a smaller set of countries. available daily. Finally, Mongolia is in a different position, with an aging network that covers urban and peri-urban populations quite well, but is in disrepair, and with a very dispersed rural Figure 3-6: Access Disbursements, by population that can be reached only through individual systems. Country Efforts to deliver improved access to energy are not limited to electricity. ASTAE plays a leadership role within the World Bank Tonga Regional East Asia energy unit in promoting attention to energy used for 8% 7% Lao PDR Indonesia heating, for both space heating and cooking. The work in Timor- 4% 6% Leste supported the establishment of a rural energy policy with Cambodia practical recommendations in the areas of household energy 9% and the development of biofuels from Jatropha crops. In Mongolia, ASTAE activities provided market-based approaches, as well as policy recommendations, for switching to energy- Vietnam efficient heating stoves and cleaner fuels in ger households. 22% In Cambodia, ASTAE supported activities that focused on Mongolia 21% creating sustainable businesses models, especially focused on empowering women, with strong scale-up potential for Timor-Leste enterprises that produce affordable, energy-efficient products 23% for local utilization, with provisions to train participants in the skills they require to participate in planning, working in, and managing those enterprises. Status of 2007–10 Performance Indicators Table 3-2: Cumulative Renewable Electricity Capacity Added, by Country, In addition to the ASTAE activities disbursements just FY2007–10 described and to World Bank–related investment projects (covered at the end of this chapter), ASTAE tracks a set of Renewable electricity generation indicators showing the trajectory of its impact in supporting (capacity installed in MW) sustainable energy development. Countries with ASTAE activity Direct Indirect The indicators were chosen to illustrate each pillar. Although China 537 4,900 they may not cover the pillar’s entire spectrum—for example, Mongolia 2 n.a. renewable energy can be used to indicate more than Thailand n.a. 1,500 generating electricity—they convey the predominant trend Indonesia 260 6,000 within each. They are usually available from World Bank Philippines 40 n.a. project documentation and are therefore easily referenced Vietnam 180 n.a. from published sources. Achievements are measured as Fiji 5,6 n.a. both a direct result of related World Bank loans and as the Solomon Islands 5,6 n.a. indirect impacts derived from World Bank and ASTAE technical Tonga n.a. 10 assistance to country stakeholders. Whenever relevant, the 68 Regional projects n.a. 30.6 aggregate value achieved for each indicator is put in context by comparing it to an equivalent output at the level of a country TOTAL 1,030.6 MW 12,413 MW of the region, using U.S. Energy Information Agency (EIA) 2008 n.a. Not applicable. data. Appendix 2 provides a table linking all ASTAE activities disbursed in fiscal 2010 to the related World Bank projects, and shows their contributions to ASTAE indicators. The contribution of each project is cumulative over the business plan period to This indicator is unchanged from fiscal 2009, as no major derive the indicators described below. new projects related to renewable energy were presented to the Board of Directors in fiscal 2010. Most of the World Renewable Energy Pillar Bank-funded renewable energy capacity growth over prior years was from wind in China and geothermal in Indonesia. The renewable energy pillar is illustrated by an indicator for Smaller contributions were added through solar or biofuels electricity generated using renewable fuel. Through support to in other countries such as Mongolia and Tonga. Indirect projects that directly facilitate investments, ASTAE activities capacity addition was also found in these two countries, led to increased capacity and generation from renewable where technical assistance to the governments in policy and sources. As this indicator focuses on electricity, it precludes sector reforms is expected to attract substantial private sector investments in renewable sources of heat (such as for cooking projects to scale up renewable energy. or space heating), but is nonetheless considered a good marker for investments in renewable energy in general. ASTAE’s targets for renewable–based electricity were not expressed in installed capacity, but rather in annual electricity Indicator 1: New capacity and increased generation of generation of 1,000 GWh directly and 10,000 GWh indirectly renewable electricity once projects were fully commissioned. However, as most Table 3-2 provides the renewable electricity capacity added Bank projects do not provide renewable electricity generated, during the four years of the business plan period, both directly but rather provide the number of MW installed and estimate through subsequent World Bank loans and indirectly from the corresponding GWh, ASTAE follows the same process. investments facilitated by World Bank projects and ASTAE As shown in the summary table 3-6 (following), these targets activities. were met and exceeded during the business plan period. ASTAE ANNUAL STATUS REPORT #18 World Bank projects supported by ASTAE during fiscal 2007–10 are expected to install 1,030 MW of renewable energy that Table 3-3: Cumulative Electricity Savings, will generate 1,579 GWh annually once commissioned. This by Country, FY2007–10 is equivalent to the total installed capacity of Lao PDR and Cambodia in 2008 and all electricity generated in Cambodia in Electricity savings 2008. (GWh electricity, annually) Countries with ASTAE activity In addition, ASTAE- and World Bank-funded support to 3. AstaePerformance Assessment Direct Indirect frameworks, regulations, and investment mechanisms China — 20,000 favorable to renewable energy development are expected to Thailand — 5,750 contribute indirectly to 12,400 MW being installed by utilities Philippines 80 — and private investors, which is expected to generate 18,000 Vietnam 1,500 — GWh annually once commissioned. Fiji 3.3 400 Solomon Islands 3.3 — Energy-Efficiency Pillar Total 1,586.6 26,150 The energy-efficiency pillar is represented by an indicator of — Not applicable. the quantity of electricity saved, or generation avoided, by decreasing consumption, reducing waste, or both. It illustrates the support to projects that limit the need for electricity 69 generation throughout the year and limit the need for additional the result of ASTAE-supported activity in China that led to installed capacity to meet annual peak demand. Because banks creating new financial products to fund energy-efficiency this indicator focuses on electricity, it does not reflect the projects; another important result came through ASTAE investments in heating, primarily space heating in northeast contribution to the energy-efficiency roadmap in Thailand that Asia, or in cookstove improvements. It is nonetheless helped focus the government on priority sectors with the considered a good marker for investments in energy efficiency. highest savings potential. Indicator 2: Electricity savings resulting from efficiency The summary table 3-6 shows that the business plan targets improvements for both direct and indirect annual electricity savings will be Table 3-3 provides a summary of cumulative annual electricity exceeded. When all projects are operational, direct savings will savings that derive from ASTAE-supported World Bank projects be 1,586 GWh annually and indirect savings will be more than once fully implemented. These estimates are calculated based twice the target, at 26,150 GWh annually. The latter figure is on direct savings through World Bank loans or on indirect equivalent to what would have been saved by halting electricity support by way of investments facilitated by World Bank and generation in the Philippines for six months in 2008. ASTAE technical support. As noted earlier, ASTAE activities related to improving Access to Modern Energy Services Pillar efficiency in the power sector took place in fewer countries. The access to energy pillar is measured in terms of number This indicator also remains unchanged from the level reached of households that received new or improved connections in fiscal 2009, because while several projects presented to to modern energy services, regardless of the type of fuel the Board in fiscal 2010 were related to energy efficiency, their used. Under this measurement method, an improved wood- impact was measured in decreased CO2 emissions rather than burning stove that reduces smoke emissions and decreases GWh saved. consumption of raw wood for the same heat output counts the ASTAE provided significant financial support to electricity same as an improved electricity connection. Although the type savings in the Vietnam rural electrification project, which has of service differs amply—cooking and heating on one hand and delivered direct impact, improving medium- and low-voltage lighting, information, and (sometimes) productive uses on the networks and reducing losses dramatically—representing 95 other—they are treated here as being of the same value to the percent of total program-wide direct savings. As for indirect beneficiary. savings, one major source of impact (76 percent of total) was Distinctions made to differentiate connection types are based on whether they are new connections or improved ones, and Table 3-4: Households with Access to whether they are direct or indirect connections. Modern Energy Services, by Country, FY2007–09 Indicator 3: Households with access to modern energy services Households with access to modern energy New connections to electricity services have a life-changing services impact, whether because of new opportunities opened by Region and country (number of households) of activity access to electricity or improved efficiency in daily tasks made Direct Indirect possible by the use of powered tools and appliances. Improved China — 300,000 (NA) connections also help remove constraints on households, Mongolia 226,000 (NA) 150,000 (NA) often by lowering the amount of fuel needed or improving the Cambodia 17,500 (NA) — reliability of existing services, thereby eliminating the need for Lao PDR 37,700 (NA) backup service. For example, improved electricity connections Indonesia — 200,000 (IS) in Vietnam helped reduce the need for alternative sources of Vietnam 150,000 (NA) — lighting, such as kerosene lamps or candles, that were needed 2,000,000 (IS) when unplanned blackouts were a frequent occurrence. Fji 22,050 (NA) — It should be noted, however, that the distinction between new Solomon Islands 92,200 (NA) — and improved services is not always as obvious as it might 70 Tonga — 20,000 (NA) appear, as a new connections is often in fact an improved Timor-Leste 80,000 (NA) — connection to the same service using a more efficient fuel Regional projects 23,000 (NA) — source. For example, a new connection to electricity displaces Total 648,450 (NA) 470,000 (NA) the use of kerosene for lighting or batteries for radios, and provides a much more efficient and less costly source, but 2,000,000 (IS) 200,000 (IS) does not bring new access to lighting services or radio use, as NA: New access IS: Improved services these were already in place. Table 3-4 shows that the rural electricity energy project in Vietnam is by far the most important achievement in increasing household access under the ASTAE program in the East Asia exceeded the targets. ASTAE-supported projects fell 20 and Pacific Region. This is because large numbers of people percent short of meeting the goal of 250,000 households were not connected to the national grid and because the with indirect improved services. However, the new access government took voluntary actions to provide universal access that resulted was more than nine times the modest target of to electricity. 50,000 households, and with 470,000 households, would also Access to electricity remains the major component of the have been well over target had it been set at the same level as indicator, but space heating is also represented in Mongolia, the improved services target. as well as cooking stoves and biogas in Cambodia and In sum, ASTAE’s commitment to include access to energy as a Timor-Leste. In fiscal 2010, ASTAE activities in Lao PDR new pillar, in addition to its historic pillars of renewable energy contributed to a rural electricity project that will add 37,700 new and energy efficiency, has been followed by bold action and households to the grid. impressive results. Direct targets have been met, with ASTAE-supported World Bank projects financing improved services to 2 million households (four times the target of 500,000) and new access to modern energy services to an additional 648,450 households (129 percent of the target of 500,000 households). Indirect targets were partly met when assessing new and improved access to energy separately, but as an aggregate measurement, ASTAE’s achievement in this regard has ASTAE ANNUAL STATUS REPORT #18 Cross-Cutting Indicators Table 3-5: CO2 Mitigated, by Country, A fourth and a fifth indicator that cut across the other three FY2007–10 pillars also have been defined. One is dependent on the results from the three pillars’ individual indicators, while the other is a CO2 mitigated over 20 years more generic assessment of ASTAE’s overall footprint across (million tons) the region. Region and country of activity Direct Indirect 3. AstaePerformance Assessment The fourth indicator measures reductions in CO2 emissions, China 61.42 510.00 representing the overall impact on greenhouse gas abatement. Mongolia 0.18 — It is an important metric to track because CO2 emissions are Cambodia 1.52 — considered the main contributor to the greenhouse effect. Thailand — 82.00 ASTAE activities have a direct impact on CO2 reduction through Indonesia 21.00 500.00 World Bank project contributions to renewable energy, energy Philippines 2.00 — efficiency, and improved access to modern energy services. Vietnam 20.28 — The fifth indicator ensures that financial assistance is given Fiji 0.17 2.46 to all countries in the region and avoids the unintended trap Solomon Islands 0.17 — of focusing on large countries just to meet the earlier four Tonga — 0.32 indicators. Timor-Leste 2.20 — India 4.80 — 71 Indicator 4: Avoided greenhouse gas emissions This indicator estimates the quantity of CO2 emissions that Regional projects — 0.50 would be avoided over 20 years (the conventional lifespan of Total 113.74 (direct) 1,097.25 (indirect) projects or equipment) through ASTAE-supported World Bank — Not applicable. projects. It determines the CO2 equivalent saved directly and indirectly by replacing conventional thermal power plants with renewable energy and realizing the potential energy savings. Indicator 5: Countries benefiting from ASTAE support Table 3-5 shows that China brings in more than half of the ASTAE provided financial support to activities in 13 countries, direct CO2 savings. However, projects in Indonesia and Vietnam as well as to several regional activities, well exceeding the contribute large shares of avoided CO2 emissions. The table target of a minimum of 10 countries. Many of the Pacific also confirms that to substantially scale up CO2 emission Islands countries were well represented, in addition to the mitigation, support to country programs that encourage large continental countries. The differences among countries sustainable energy use in energy-intensive economic sectors in the East Asia and Pacific Region where ASTAE is active has the greatest effect. This is illustrated by the fact that are vast, ranging from China, the dominant economy of the indirect CO2 savings overall are 10 times greater than direct Region, to the much smaller Tonga. All ASTAE activities are savings. The indirect savings are led by savings expected from designed to adapt to the wide variety of issues throughout the restarting a major investment in geothermal in Indonesia and region, as well as to the country context. Table 3-6 provides a by continued private sector investment in alternative energy in summary of all indicators discussed in this chapter. China. The CO2 targets have been met. The direct impact value, estimated at 114 million tons, or 162 percent of the target, would be roughly equivalent to all of Vietnam’s CO2 emissions in 2008. The indirect savings, estimated to be 1,097 million tons, or 140 percent of the target, would be equivalent to the total CO2 emissions of the African continent in 2008. Table 3-6: Summary of 2007–10 Extended Business Plan Targets, Pledged and Achieved Indicators Unit Value pledged Effectively Achieved or for business plan achieved pledged ratio period during business (%) plan period 1. New capacity and increased generation of renewable electricity Direct - Capacity MW n.a. 1,030 n.a. renewable energy - Generation GWh/year 1,000 1,579 158 Indirect - Capacity MW n.a. 12,413 n.a. renewable energy - Generation GWh/year 10,000 18,018 180 2. Electricity savings resulting from efficiency improvements Direct energy sav- - Generation GWh/year 1,000 1,586 159 ings Indirect energy - Generation GWh/year 10,000 26,150 262 72 savings 3. Households with access to modern energy services Directa new access (DNA) Household 500,000 648,450 129 Direct improved services (DIS) Household 500,000 2,000,000 400 Indirectb new access (INA) Household 50,000 470,000 940 Indirect improved services (IIS) Household 250,000 200,000 80 4. Avoided greenhouse gas emissions Direct C02 avoided over 20 years Million tons 70 114 162 Indirect C02 avoided over 20 years Million tons 780 1,097 140 5. Countries benefiting from ASTAE support Number of Countries Country 10 13 130 n.a.Not applicable. a. Direct refers to values achieved, or expected to be achieved, in the course of World Bank-funded projects that benefited from ASTAE support. b. Indirect refers to values achieved, or expected to be achieved, following actions engaged by countries’ energy stakeholders that result from informed decisions to which ASTAE contributed through its funding. ASTAE ANNUAL STATUS REPORT #18 ASTAE-Supported World Bank China Minsheng Banking Corporation, Ltd. (Minsheng). Operations in Fiscal 2010 The project will finance only energy efficiency rehabilitation subprojects. Major types of subproject eligible for financing Over the fiscal 2007–10 extended business plan period, 17 include World Bank projects that promoted sustainable energy and n replacement of inefficient industrial technologies with that have benefited from ASTAE support were presented to energy saving technologies, for example, more efficient the Board. The total lending in these projects amounted to just industrial boilers, kilns, and heat exchange systems, 3. AstaePerformance Assessment over US$2.2 billion with about US$1.2 billion in IBRD-IDA-GEF grants and lending. A list of ASTAE-related projects presented n recovery and utilization of byproduct gas, waste heat and and their financing details is provided in appendix 4. pressure, This lending, focused on developing sustainable energy, was n installation of efficient mechanical and electrical enabled or facilitated by ASTAE support and illustrates ASTAE’s equipment, including motors, pumps, heating and ventilation leverage on World Bank lending. This leverage is reinforced equipments, when its role in the successful delivery of Bank projects leads n industrial system optimization to reduce energy use, and to second-phase or additional financing that further scales up n other energy efficiency projects agreed to between the the impacts of the initial project. Bank and GOC. Four such ASTAE-supported World Bank projects (described The project also includes a technical assistance component briefly below) were presented to the Board of Directors in to Minsheng. It will catalyze energy efficiency lending and 73 fiscal 2010 for a total of US$199 million. The other 13 are help Minsheng develop and sustain the business line by described in prior annual reports. The four recent projects will building on its sector knowledge and client base. Furthermore, be implemented over the next five fiscal years. a very high average leverage ratio of 1:10 of Bank funds is expected. Therefore, the US$100 million Bank funding would China - Energy Efficiency Financing II be complemented by US$500 million in debt financing by This project, presented to the World Bank’s Board of Directors Minsheng, and with US$400 million from borrowers (that are in June 2010 for a total of US$101.6 million, follows up an required to provide at least 40 percent of subproject costs earlier project, begun in 2008, that helped launch energy- in equity), this will lead to US$1 billion allocated to energy efficiency lending business lines in China, in both a public efficiency over the project period. bank and a commercial bank, through the operation of a line of credit. India - Financing Energy Efficiency in Micro, Though the first project is advancing successfully, the energy Small, and Medium-Sized Enterprises efficiency portfolios of Chinese banks remain small compared This US$57 .6 million Global Environment Facility (GEF) project, to their total lending volumes and abundant liquidity, especially directed toward Indian MSMEs facing high and rising energy in light of the potential size of the energy efficiency market. costs, was presented to the Bank’s Board of Directors in Furthermore, a review of commercial banks’ portfolios found April 2010. Unlike sectors of the economy such as agriculture that most of their energy efficiency investments are in fact that benefit from subsidized energy prices, export-oriented in capacity expansion driven by advanced technologies, Indian—MSMEs in particular are facing increased global rather than focused on the demand side, or on energy- competition. Many are energy-intensive, employing inefficient efficient rehabilitation of existing assets. This is because the and outmoded technologies and operational modalities perceived high risk of demand side industrial energy efficiency that endanger their competitiveness and future growth. lending remains a common barrier among Chinese banks—a Investments in cost-effective energy efficiency measures perception reinforced by the risk-adverse position banks took should improve their productivity and bottom-line profits. during the global financial crisis. Given India’s current market barriers, a need was recognized The new project is a financial intermediary lending operation, to support development of numerous energy efficiency whereby the Bank loan will be on-lent by the Ministry of investment proposals, with an aim to a) aggregating demand Finance on the same financial terms and conditions, with no for such investments in MSME industrial clusters and b) interest rate subsidy, to the participating financial institution, creating a sustainable mechanism to locally identify, prepare, and finance these proposals. This particular project builds n to provide a sound planning basis for electrification, and on the success of the recently completed World Bank n to increase the efficiency of electricity delivery and global technical assistance project “Developing Financial consumption. . Intermediation Mechanisms in China, India and Brazil” The project will begin with technical assistance that will Phase one focused on increase awareness of energy efficiency at the cluster and n implementation of the sustainability action plan, which plant level on a large scale. It will also increase the capacity of includes a tariff reform program, settlement of past-due energy auditors, financial consultants, chartered accountants, electricity bills, establishment of a rural electrification (RE) vendors, service providers, and local banks through training fund, and enhancement of utility operation efficiency, programs and other efforts to build internal capacities. Finally, n capacity building in rural electrification master planning it will support the uptake of risk mitigation instruments, such and implementation, and safeguards management, as guarantees, that are currently available in the Indian market. n development and piloting of sustainable sector financing The project will also provide grant support to cover the “soft strategy, alternative power generation technologies, and costs” of an initial pipeline of about 500 projects, including alternative delivery models for both on and off-grid RE, and at least 1,000 initial project assessments. Funding will also be available for incentives for demonstration projects and for n creation of awareness of demand-side management and early adopters of appropriate energy-efficient technologies. piloting a demand-side management program. The average investment envisaged in individual MSME units is With key triggers met by 2009, phase two of the project 74 in the range of Rs 2 million to Rs 4.2 million (~US$44,000 to began with further expansion of access to on- and off-grid 93,000) with a simple payback period of less than 2 years. electricity supply by rural households. It will focus on final The project supports the global environmental agenda of implementation of the sustainability action plan to achieve its stabilizing atmospheric concentrations of greenhouse gases final targets: scale-up of the alternative generation technologies (GHG) through an increase in EE investments and resulting and alternative delivery models for both on- and off-grid RE energy savings. The key indicator will be CO2 emission piloted during phase one; and scale-up of the demand-side reductions resulting from energy savings in the designated management program throughout the country. MSME clusters. It is anticipated that the project will support EE investments that will reduce global emissions of CO2 by 4.8 Reaching project targets would bring about two key million tons over the lifetime of the equipment installed. environmental outcomes: n Substantial adoption of off-grid renewable energy in the Lao PDR - Rural Electrification Phase II rural electrification program, with the share of newly electrified households growing from a 7 percent baseline to a 20 percent This project, presented to the Bank’s Board of Directors in share under this project; and January 2010 for a total of US$35.8 million, is phase two of an Adaptable Program Loan (APL) presented in June 2007 . Under n increased efficiency of energy supply by EdL and of an APL, an overall program is financed in two or more phases consumption by customers, resulting in increased exports of with specific triggers set up to move (or not) from one phase hydropower to Thailand and reduced use of thermal power. to another. Vietnam - System Efficiency Improvement, The Lao PDR Program’s aims were Equitization, and Renewable Additional n to provide access to electricity to some 106,000 rural Financing households, This project, presented in May 2010, provides additional n to achieve financial sustainability of Électricité du Laos financing of US$26.1 million to the original project in order to (EdL), complete what had been started. The original project, for an International Development Agency (IDA) amount of US$220 n to promote development of legal, regulatory, and million, consisted of three components: system efficiency institutional frameworks, improvement, focusing particularly on transmission systems n to encourage new participants in sector development, and demand-side management activity; improving rural energy ASTAE ANNUAL STATUS REPORT #18 access, sub-transmission systems, rehabilitation of small hydropower and development of off-grid or mini-grid supply using renewable energy; and sector reform and institutional development. The electricity sector has met the challenge well. Since the start of the original project, GDP has grown over 7 percent annually; increasing and meeting overall demand will enable 3. AstaePerformance Assessment continued growth. Between 1995 and 2009, household access increased from 50 percent to around 95 percent; annual per capita consumption increased from 156 kilowatt hours (kWh) to about 800 kWh. Losses (technical and nontechnical) fell to an estimated 10.5 percent in 2009, down from over 20 percent 10 years earlier. The government of Vietnam passed a market-oriented electricity law in November, 2004, followed by the establishment of the Electricity Regulatory Authority of Vietnam in 2005. The government is implementing a roadmap for reform, the first step of which was scheduled to be completed in 2010. In recent years, a supply shortage has become more visible, though it narrowed in 2008 as growth in 75 demand declined during the economic downturn. The objectives of the additional financing are to continue enhancing electricity system efficiency, help improve power quality in selected rural areas, and sustain reform and institutional development of the country’s energy sector. In addition, the financing has a global objective—to contribute to reduced greenhouse gas emissions by promoting use of renewable resources to produce energy. 76 4 ASTAE ANNUAL STATUS REPORT #18 4. Outlook for Fiscal 2011 and Beyond ASTAE trust funds were extended for one last year of disbursement into fiscal 4. Outlook for Fiscal 2011 and Beyond 2011 to ensure full use of the funds provided by donors under the current busi- ness plan. ASTAE Indicative Pipeline for Fiscal 2011 The objectives of the ASTAE activity are to provide technical expertise to the government task force created to reach Preparing for this last year of disbursements, ASTAE will a consensus on the action plan for RE reforms and to assist approve new activity proposals and provide additional funds for the task force in developing a time-bound action plan for some current activities. In fiscal 2011, ASTAE will also act on its those reforms. Subject to the government’s timely design decision to reengage in the South Asia region by approving two and adoption of the plan, the World Bank is expected to new activities in Bangladesh and in India. provide support to its implementation through the next rural 77 The next paragraphs provide an overview of the ASTAE electrification lending operation, expected in early fiscal 2012. activities expected to start in fiscal 2011. India - Development Impact of Load Partition in Bangladesh - Strengthening Rural Rural Areas Electrification Service Delivery In India today, electricity tariffs for agricultural use amount Rural electrification service delivery in Bangladesh, based on to less than 10 percent of the cost of supply, while power the rural cooperative model, has been a success story. The shortages, due to insufficient investments in generation and Rural Electrification Board (REB) and its rural cooperatives transmission networks, routinely impact rural consumers. This (PBSs) have connected some 8.5 million customers to the situation is in large part the result of a policy of unmetered grid. In all efficiency measures (systems losses, collection agriculture connections that mainly benefit large farmers, while efficiency, and so on), the performance of the PBSs has been most small and micro-farmers lack basic electricity connection. much stronger than that of the state-owned urban utilities. The lack of agriculture metering prevents cross-subsidy Still, access to electricity in rural areas is only 30 percent; if monitoring and limits effective estimations of distribution the government’s vision of 100 percent access by 2021 is to losses. This problem is being addressed by identifying the be achieved, a serious look needs to be taken at the efficiency demand and partitioning the load as either agricultural, for of the organizational structure of the REB, and corresponding irrigation, or rural, for nonagricultural domestic consumption. adjustments need to be made in its relationship with the PBSs. This allows separate monitoring of paid and nonpaid loads, which helps limit the subsidized power supplied for irrigation. An organizational effectiveness study was initiated in 2009 with This approach has been tried on an ad hoc basis in several Bank support that identified the problems/challenges in the Indian states. There is now a need for a national framework of rural electrification (RE) program in Bangladesh. It was followed methodologies, rules, and regulations on managing rural and by a unique stakeholder consultation process that culminated agricultural supply in a high-level workshop, attended by top decision makers and other stakeholders, where it was widely acknowledged that The World Bank is already funding a study of various the RE program needed major changes. It was also apparent, methodologies to segregate rural and agricultural loads as however, that there was widespread disagreement over the well as a companion study analyzing the impact of rural load course reforms should take. segregation on utilities. Absent in the companion study, however, is an analysis of the impact of such load partition on rural customers, knowledge of which is key to successful rollout of a load partition policy. The proposed ASTAE activity will fund a consumer survey to but required for Bank engagement. It will provide operational confirm the technical findings of the companion study and to input in the concept note, including project background and provide qualitative/quantitative perspective on how the rural rationale; project objectives; investment and TA scope and population experiences load partition. The survey will focus on components; implementation arrangements; technical issues domestic and commercial customers who are given access and considerations; economic rationale; and staging strategy after rural/agricultural segregation to identify any linkages for achieving grid- and off-grid-based scale-up and delivery in a between customer satisfaction and the technical performance complementary and cost-effective manner, and consistent with indicators done in the companion study. government coverage targets and timeline. The ASTAE study will also provide insight into how customers use their improved power, whether for household benefits only, Staffing and Upcoming Funding or in new income generating activities such as investing in small appliances and tools to increase productivity. PERIODS Indonesia - Thousand Islands Solar PV Fiscal 2010 was a Transition Year Staring from a very low base of 2 percent national electricity Fiscal 2010 was a year of transition, with changes in the ASTAE access in the late 1970s, Indonesia’ national electricity company, team and discussions on renewed funding with donors. PLN, set a scorching pace for electrification, especially in the 10- year period starting in late 1980s, exceeding 1 million rural area Substantial Staffing Changes in Fiscal 2010 78 connections annually and achieving a national access level of The ASTAE team saw these changes in its composition over over 65 percent by 1999. The rapid progress of the grid-based FY2010: electrification rollout program was abruptly and unexpectedly n Mr. Vijay Jagannathan, sector manager for the East Asia interrupted by the onset of the East Asian financial crisis which Infrastructure Unit (EASIN), has been the ASTAE program led to the “lost decade”—national electricity access coverage is manager since July 2009 projected to have stalled around 65–67 percent, and likely even decreased on a percentage basis in many regions because of n Ms. Natsuko Toba became ASTAE Coordinator in May population growth. Today, as a result, nearly 80 million people 2010, replacing Mr. Frederic Asseline, who joined the World still lack access to electricity in Indonesia. Bank team in China. The government of Indonesia aims to achieve near-universal n Mr. Dejan Ostojic became sector leader for energy in access during 2020–30 and has included the Eastern Islands EASIN in early fiscal 2010. He provides strategic support to the electrification program (referred to as the 1,000 Islands program manager and the coordinator. electrification program)—in its sector priorities. The Bank is n At the end of fiscal 2010, Mr. Song Yanquin and Mr. Tendai preparing an investment and TA project lending operation Gregan, ASTAE energy specialists based in China and Australia, supporting this program. The proposed project will be anchored respectively, left the program to join their respective World around PLN’s large number of operational grid systems and Bank teams. will be focused on a spatial least-cost grid rollout framework to provide the analytical and operational basis to rationalize Funding Status in Fiscal 2011 and map the locations and scope of the complementary In fiscal 2011, ASTAE activities remain endowed from the two grid and off-grid “spaces. ” In the context of recent Bank re- trust funds that existed in fiscal 2010: engagement in this rural electrification subsector in Indonesia, ASTAE will support a subsector assessment to document the n Government of the Netherlands Trust Fund for ASTAE from WB project concept note, by characterizing the current and the Bank-Netherlands Partnership Program (BNPP) (TF057088); future opportunities and potential, over the medium term, for and scaling up service delivery in both PLN’s grid systems and in n Swedish International Development Agency (SIDA) Trust off-grid areas in eastern Indonesian Islands. ASTAE support will Fund for ASTAE (TF091618). assemble and review key sector data and relevant information to generate the comprehensive and substantiated factual knowledge—in scope and coverage—that is still missing, ASTAE ANNUAL STATUS REPORT #18 The Netherlands Trust Fund was extended to the end of business plan for fiscal 2012–15 that will serve as a fundraising calendar year 2010 in order to enable full disbursement of platform. Based on recent World Bank analytical work, the plan the remaining budgets that were committed, or yet to be will describe how ASTAE will help World Bank teams respond committed, in fiscal 2010. to new challenges in the South Asia and East Asia and Pacific Regions in ASTAE intervention areas. It will also encompass The Sweden Trust Fund was also extended throughout fiscal World Bank client countries in these Regions, and provide 2010 into fiscal 2011, with an expected closing at the end of 4. Outlook for Fiscal 2011 and Beyond prioritization by pillar and approaches. As ASTAE is operates February 2011. programmatically, the plan will outline, but not define in detail, ASTAE is discussing throughout fiscal 2011 the modalities the type of activities to be funded for both Bank and recipient of an additional commitment from the governments of the execution, and suggest how ASTAE will finance activities at Netherlands and Sweden that would allow both Bank- and regional, multicountry, national, and subnational levels. It will recipient-executed activities and support activities in World also delineate how activities will be selected in the energy Bank client countries in East and South Asia. Additional sector, as well as how to determine relevant energy-related resources will be needed in fiscal 2012 and beyond; activities in other sectors. Finally, it will define the monitoring discussions are ongoing with several potential donors. and evaluation mechanisms, including the redefinition of indicators. Preparation of a New Funding Period for Fiscal 2012–15 In fiscal 2011, the ASTAE team will introduce a multi-donor 79 trust fund (MDTF) to streamline the incorporation of new donors and modify its governance structure to allow for increased efficiency in disbursement and for implementation of recipient-executed activities. The MDTF will provide an efficient multi-year funding instrument, and will be the preferred financing tool to achieve ASTAE’s goal of scaling up the use of sustainable energy solutions in Asia to reduce energy poverty and protect the environment. The MDTF will finance all activities eligible under the ASTAE program, with specific focus determined by the upcoming business plan. Activities to be financed under Bank or recipient execution by the programmatic MDTF should positively affect one or more ASTAE pillars (renewable energies, energy efficiency, and energy access) through the five operational approaches (innovative delivery mechanisms; policy and regulatory frameworks; capacity building and knowledge sharing; new technologies; and cross-sector collaboration). The two latter approaches were already implicitly included in ASTAE activities but will become formal approaches. The new technologies approach relates to the introduction of technologies, both new and proven, which promote access, use of renewables, or increased efficiency, but are unavailable or inaccessible in ASTAE countries or markets. The cross- sector collaboration approach promotes such collaboration in developing energy-related activities that support mitigation of and adaptation to climate change. Upon completion of the MDTF and approval by the Donors Consultative Group, the ASTAE team will prepare a new Appendices 80 ASTAE ANNUAL STATUS REPORT #18 Appendices to Annual Status Report Appendix 1: ASTAE Countries at a Glance: Region Map and Pillar-Related Statistics The map below shows the partner countries where ASTAE operates in the South Asia and East Asia and Pacific Regions. Appendix Figure 1-1: ASTAE Presence in South Asia, East Asia and Pacific Regions Appendix 1 81 Ulaanbaatar M O N G O L I A Beijing Seoul REP. OF 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 1: ASTAE Countries at a Glance: Region Map and Pillar-Related Statistics Appendix table 1-1 provides data to illustrate the diversity of South Asia and East Asia and Pacific countries in the context of ASTAE pillars. Appendix Table 1-1: Background Data Providing Context to ASTAE Pillars Basic context First pillar: Region and renewable energy countries of Population GDP Installed Annual Installed Share of activity (WB 2008) (WB 2008) capacity electricity capacity generation electricity generation (EIA renewable using (EIA 2008) 2008) (EIA 2008) renewable (EIA 2008) Million Billion US$ MW TWh MW % East Asia Cambodia 14.7 9.6 386 1.38 18 4% 82 China 1,325.6 4,326.2 797,078 3,221.18 186,820 17% Indonesia 228.2 514.4 27,802 141.19 5,801 14% Lao PDR 6.2 5.2 723 3.98 673 92% Mongolia 2.6 5.3 832 3.90 0 0% Philippines 90.3 166.9 15,680 57.39 5,283 34% Papua New Guinea 6.4 8.2 699 2.97 271 30% Thailand 67.4 260.7 40,669 138.99 3,487 8% Vietnam 86.2 90.7 13,850 69.97 5,500 37% South Asia Bangladesh 154.0 79.5 5,453 32.93 230 4% India 1140.6 1,214.20 177,376 785.53 51,363 50% Nepal 28.2 12.0 717 3.1 660 99% Pakistan 171.9 163.9 19,769 87.74 6,464 31% Sri Lanka 21.1 40.7 2,645 8.89 1,360 46% World index World 6,692 60,587 4,624,767 19,103.20 1,056,413 19% Pacific Islands Fiji 0.8 3.5 216 0.93 95 71% Solomon Islands 0.5 0.6 14 0.08 0 0% Samoa 0.2 0.5 41 0.11 12 46% Timor-Leste 1.1 0.5 - - - - Vanuatu 0.2 0.6 12 0.04 0 0% Sources: Population & GDP, World Bank 2008 Data Group of Development Economics (DECDG). Electrification rate: World Bank EAP unit for East Asia, EIA for other. Ranking CO2 emissions: ASTAE, using EIA 2008 data. Economic Intensity: Calculated by EIA using year 2005 US$ market exchange rates. All other indicators, US Department of Energy, Energy Information Administration, 2008. ASTAE ANNUAL STATUS REPORT #18 These data are not updated regularly by any centralized entity and therefore may not even be available for the most recent years. They are primarily sourced from the U.S. Department of Energy’s Energy Information Administration (EIA), as well as from the International Energy Agency (IEA), and are dated from 2008 unless otherwise noted. The footnotes provide further details. Second pillar: Third pillar: Greenhouse energy efficiency access gas emissions Economy in- Power Population Electrifica- Annual energy-related C02 Annual per capita energy tensity intensity without tion rate emission and ranking (EIA related C02 emission (EIA 2008) (IEA 2008) electricity (Word Bank, 2008 and ranking (2008) (2008) IEA 2009) Appendix 1 tCO2 /US$1,000 tCO2 / MWh Million % Million ton Out of 189 ton / capital Out of 189 GDP 0.49 1.15 11.2 24% 3.9 130 0.27 164 2.12 0.76 13.3 99% 6,553.5 1 4.94 71 83 1.42 0.73 79.9 65% 434.1 16 1.90 113 0.35 - 1.9 70% 1.3 162 0.20 170 2.91 0.54 0.3 90% 7.2 110 2.77 101 0.68 0.46 9.0 90% 79.8 45 0.88 138 0.85 - 6.0 7% 4.9 123 0.77 139 1.27 0.53 0.7 99% 254.0 25 3.77 84 1.42 0.43 1.7 98% 93.7 42 1.09 129 0.70 0.57 90.9 41% 48.7 63 0.32 158 1.45 0.95 387.8 66% 1,494.9 4 1.31 123 0.40 0.03 16.1 43% 3.2 133 0.11 177 1.13 0.43 65.3 62% 147.7 34 0.86 136 0.45 0.38 4.9 77% 13.4 92 0.64 145 - 0.51 - 79% 30,377.3 - 4.54 Eq 76 0.94 - - - 2.7 144 3.43 97 0.64 - - - 0.2 - 0.42 140 0.41 - - - 0.2 - 0.84 153 0.85 - 0.9 22% 0.3 - 0.27 157 0.39 - - - 0.1 - 0.53 149 Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2010 Appendix table 2-1 links all ASTAE activities that disbursed in fiscal 2010 to the related World Bank projects and shows their contribution to the global ASTAE indicators discussed in chapter 3. Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2010 ASTAE Project Type and details of activity INDICATORS PERIOD TOTAL Access Installed Energy C02 Origin of households new savings indicator re-genera- (electric) tion capacity china and mongolia China 1 China Renewable PE: Supervision of IDA / IBRD - - - - - Energy Scale-up Credits Program (CRESP) • Provide capacity building and sup- 84 port to RE law • Support provincial resource assessment (biomass, wind) • Build investors’ capacity to enable RE scale-up 2 China: Energy Intensity ESW: Economic and Sector - - - Up to 30 World Bank Strategy Work—Policy notes to support t / GWh Project China’s energy-intensity reduction produced Information • Update cost-benefit analysis of (Indirect) Document renewable energy targets following changes in energy sector outlook • Improve cement sector energy intensity in three provinces 3 China: Urban ESW: Economic and Sector Work - - - - - Transport Climate • Review energy and carbon Change Strategy footprint of urban transport • Disseminate best practice on en- ergy efficiency and energy security concerns in the urban transport sector X China: Energy Efficiency TA: Technical Assistance - - - 10 million World Bank Financing Promotion Draft an on-lending operations tons (direct) Project manual for IBRD loan on-lending 94 million Appraisal operation for Chinese banks on tons Document energy efficiency (indirect) • Determine eligibility of sub- projects for financing, prepara- tion procedures and appraisal, implementation arrangements, and general terms of sub-loans • Develop a draft monitoring and reporting system ASTAE ANNUAL STATUS REPORT #18 Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2010 ASTAE Project Type and details of activity INDICATORS PERIOD TOTAL Access Installed Energy C02 Origin of house- new savings indicator holds re-genera- (electric) tion capacity MONGOLIA Appendix 2 4 Mongolia: Energy-Effi- TA: Technical Assistance 226,000 (D) 2 MW - 9,000 t/year ASTAE Proposal cient Heating in • Introduce energy-efficient stoves / World Bank Poor Areas of Ulan Bator in the poor areas of the Project Appraisal periphery of Ulan Bator Document 85 5 Mongolia: Energy Sector TA: Technical Assistance - - - - - Project • Improve efficiency in the electric- ity distribution system • Increase awareness and capacity among stakeholders 6 Mongolia: Documentary KP: Knowledge Product - - - - - Energy Project • Create video on the achievements made under the 2001–10 energy sector project Cambodia, Laos, Thailand CAMBODIA 7 Cambodia: Biodigester TA: Technical Assistance 17,500 - - 76,713 t per ASTAE Proposal Private Sector Develop- (Improved) year / World Bank ment Project Informa- tion Document INDONESIA INDONESIA 9 Lao PDR: Lessons from TA: Technical Assistance - 260 MW - 21 million ASTAE Proposal the Lao Rural Electrifica- • Identify factors that contrib- (Direct) tons (direct) / World Bank tion Program uted to electrification successes 6,000 MW 500 million Project Informa- • Advise government on next steps (indirect) tons (indi- tion Document towards universal access rect) Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2010 Appendix table 2-1 links all ASTAE activities that disbursed in fiscal 2010 to the related World Bank projects and shows their contribution to the global ASTAE indicators discussed in chapter 3. Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2010 ASTAE Project Type and details of activity INDICATORS PERIOD TOTAL Access Installed Energy C02 Origin of house- new savings indicator holds re-genera- (electric) tion capacity PHILIPINES PHILIPINES 10 Philippines: Power TA: Technical Assistance and GEF - - 80 GWh/yr 40,000 t/yr ASTAE Proposal System Loss Reduction Grant Project • Screen proposed investments by 86 cooperatives • Provide cooperatives and local authorities capacity building VIETNAM VIETNAM 11 Vietnam: Documentary KP: Knowledge Product - - - - - on • Prepare documentary on rural Rural Electrification electrification in Vietnam for television broadcasting 12 Vietnam: Documentary KP: Knowledge Product 150,000 (I) 180 MW - 8.4 million World Bank on • Prepare documentary on rural tons of CO2 Project Informa- Rural Electrification electrification in over the 20 tion Document / Vietnam for television broadcasting years ASTAE Proposal Papua New Guinea, Timor-Leste, and Pacific Islands Countries Pacific Islands FIJI SOLOMON Islands 13 Solomon Islands: Tina TA: Technical Assistance - - - - - River Hydropower Devel- • Provide technical and method- opment Project ological support for procurement procedures and consultations with affected populations ASTAE ANNUAL STATUS REPORT #18 Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2010 ASTAE Project Type and details of activity INDICATORS PERIOD TOTAL Access Installed Energy C02 Origin of house- new savings indicator holds re-genera- (electric) tion capacity SOLOMON Islands Appendix 2 14 Solomon Islands: Sus- PE: Lending 22,200 (D) 5,600 kW 3,285,000 8,325 t/year World Bank tainable • Provide preparation support for kWh Project Energy Project the sustainable Information energy lending project Document 87 TONGA 15 Tonga: Renewable TA: Technical Assistance 20,000 10 MW - - World Bank Energy Development National energy plan with utiliza- Project tion of renewable energy options Information • Analyze system and load forecast Document / Task to assess the suitability of intermit- Team Leader tent and firm renewable sources to the system TIMOR-LESTE 16 Timor-Leste: Rural TA: Technical Assistance - - - - - Energy Access and Ef- Help prepare an integrated pre- ficiency investment package with • Solar PV dissemination options • Candidate microhydro sites • Improved stove models South Asia Region India 17 India: Energy Efficiency GE: GEF Grant - - - 4.8 million t World Bank in SMEs • Raise awareness and build capac- Project Appraisal ity in energy efficiency in MSMEs Document • Increase capacity of local bank branches to identify and appraise EE projects Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2010 Appendix table 2-1 links all ASTAE activities that disbursed in fiscal 2010 to the related World Bank projects and shows their contribution to the global ASTAE indicators discussed in chapter 3. Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2010 ASTAE Project Type and details of activity INDICATORS PERIOD TOTAL Access Installed Energy C02 Origin of house- new savings indicator holds re-genera- (electric) tion capacity REGIONAL PROJECTS, OUTREACH, AND KNOWLEDGE SHARING 18 Regional: Mapping TA: Technical Assistance - 25 MW (Indi- - - ASTAE Proposal Wind Resources in the • Produce a wind survey for Papua rect) Pacific Islands and PNG New Guinea, Solomon Islands, Fiji, and Vanuatu, with predicted mean 88 wind speed at 6, 12, and 35 meters above ground and at 1 km grid spacing 19 Regional: Carbon Emis- KP: Knowledge Product - - - Up to 200t / ASTAE Proposal sion • Analyze activities associated with km built estimate / World Mitigation Toolkit for design, construction, and rehabilita- Bank Project Highway Construction tion of highway projects; identify Information those sensitive to energy consump- Document tion and carbon emission • Estimate carbon footprint and provide mitigation options • Create a Mitigation Toolkit 20 Africa: LED Light Quick KP: Knowledge Product - - - - - Screening Methodology • Develop a quick screening meth- odology for LED lights • Pilot-test up to 30 LED systems using the methodology 21 Regional: East Asia KP: Knowledge Product - - - - - Pacific Flagship Study • Analyze regional potential of re- newable energy sources and energy efficiency improvements • Review of existing policies, identi- fication of gaps • Recommend regional policy development ASTAE ANNUAL STATUS REPORT #18 Appendix 2 89 Appendix 3: ASTAE Donors, Resource Utilization, and Funding Events ASTAE Donors Sweden: Swedish International Development Agency ASTAE currently relies on the Netherlands and Sweden as donor countries for its budget, as well as on matching funds Sweden joined ASTAE donors in 2007 with a grant of SKr 15 from the World Bank (see the section “ASTAE Resource million (US$2.0 million) to be disbursed over a three-year Utilization” below). Previous ASTAE donors included Australia, period. The overall goal of Swedish development cooperation in Canada, Finland, Japan, Switzerland, the United Kingdom, and 2007 was to “contribute to an environment supportive of poor the United States. ” people’s own efforts to improve their quality of life. This support was provided as part of the Strategy for The Netherlands: Ministry of Foreign Affairs Development Cooperation with South-East Asia, covering the (Development Cooperation) 2005–09 period, under which the Swedish government had ASTAE’s principal funding source is currently the Netherlands, defined the following subgoals for development cooperation through its Ministry of Foreign Affairs (Development with the East Asia region: Cooperation). The Netherlands has been a founding donor as n To promote democracy and respect for human rights; well as a core ASTAE donor, and since 1993 has contributed reliably to providing ASTAE with the capacity to engage in n To help reduce damage to the environment; sustained activities. The most recent funding agreement was n To help improve the region’s ability to manage signed in 2006 for an amount of US$7 .4 million to be disbursed transboundary problems; over a four-year period. 90 n To help reduce the risk of conflict and promote conflict In June 1998, the Ministry of Foreign Affairs created the Bank- management; and Netherlands Partnership Program (BNPP) to strengthen the development and institutional effectiveness of the World Bank n To promote cooperation within the region, and between by financing knowledge- and capacity-development activities at the region and the European Union and/or Sweden. the global, regional, and cross-country levels. More specifically, ASTAE activities fall within the “environment ASTAE is funded through the BNPP and falls under two of its and sustainable use of natural resources” window. The strategic priorities: priorities of this window are implemented with multilateral and regional support, as well as with bilateral cooperation, for n Environment. The environmental priority encourages which country-specific substrategies are defined. In the 2007 government policy dialogue on environmental damage and policy, environmental cooperation in Southeast Asia has three conservation of natural resources. Grant-funded activities are aims: designed to raise the awareness of government policy makers and the general population on environmental assessment 1. Environment and institutional capacity. To strengthen and good practices. They also suggest alternative methods the capacity of institutions to handle natural resource issues of energy use and build strategies for improving water and effectively and to prevent environmental problems in a regional sanitation services. context. The aim is to help improve the ability of the region’s countries to comply with international conventions on the n Energy and Water. This priority aims to provide clean, safe environment and other adopted environment-related regional water and energy to every person. The rural poor are especially agreements and action plans. Support may be provided for disadvantaged because they often live in remote areas that are capacity building, transfer of knowledge, strengthening of not served by public water and energy utilities. They also face institutions and civil society, and regional networking. greater health risks because of poor sanitation and the use of unsafe biofuels. The main areas of concern are reforming water 2. Urban development and the environment. To promote and sanitation utilities, switching to cleaner, modern fuels, and cooperation through regional forums to strengthen the capacity increasing electricity access to all citizens. of countries and cities to mainstream environmental concerns in urban planning, thereby ensuring better living conditions The Ministry of Foreign Affairs is considering providing new for the poorer sections of the urban population, as well as funding to ASTAE, subject to the directions of the new policy health and environmental protection. Cooperation may include that is being drawn in 2011. sustainable water and sanitation systems, initiatives relating to air quality and climate change, waste management and disposal, urban transport, and traffic safety. ASTAE ANNUAL STATUS REPORT #18 BOX 3.1 Extract from The Netherlands Development Cooperation Policy Note, 2007–2011 The rise in greenhouse gas levels in the atmosphere is largely a result of energy consumption in the Organisation for Economic Co- operation and Development countries, although rapid growth in the largest developing countries is also increasingly contributing to emissions, even though their per capita emissions remain well below those of developed countries. Those countries, including the Netherlands, must therefore take the first steps to reduce emissions. The European Union has shown more willingness to do so than other industrial countries. The government will make a strong plea over the coming years for intensive international climate diplomacy to call countries with high energy consumption, including rapidly growing economies, to Appendix 3 account. It has also reserved extra resources for sustainable energy. It is vital that rich countries and rapidly growing developing countries reduce their greenhouse gas emissions (mitigation). This will not be enough in itself, however. Mitigation is a matter for all countries, under the principle of “common but differentiated responsibilities.” According to the “polluter pays” principle, the obvious course is for Western countries to help pay the high costs 91 that poor countries face in adapting to climate change. Little is known at this stage about the precise nature and scale of these costs, however. So before the “polluter pays” principle can be applied, the damage caused needs to be identified. n The costs of adaptation must be made clear. The Netherlands, the United Kingdom, and the World Bank have initiated a multidonor study of the costs and benefits of measures countries might take to make climate risks manageable. The Netherlands is focusing specifically on developing countries. n The Netherlands supports innovative forms of financing and statutory instruments needed to tackle climate change (miti- gation and adaptation). n The trade in emission rights with poor countries, under the Clean Development Mechanism (CDM), for example, could be extended to more countries, so as to include Sub-Saharan Africa. The Netherlands supports capacity building for poor countries to enable them to make better use of the benefits of emissions trading systems like the CDM. n The Netherlands will work through the World Bank, the United Nations, and OECD to ensure that rich countries consider the risks of climate change and live up to their responsibility to find solutions. The Netherlands will also support developing coun- tries in integrating the risks of climate change into their own policies, and help them build their capacity to adapt in such vulnerable sectors as land use, food production, water, and health. The adaptation strategies that these countries and poor population groups already use will form the basis. No new recipes will be imposed by outsiders. The Netherlands will commend this strategy in ap- propriate forums. Source: “Policy Note, Dutch Development Cooperation 2007–2011.” Sustainable Energy section. Ministry of Foreign Affairs, October 2007. Appendix 3: ASTAE Donors, Resource Utilization, and Funding Events 3. Natural resource issues and environmental protection in ASTAE Resource Utilization the Mekong countries. To foster environmental cooperation The use of donor funds by ASTAE totaled US$2,123,893 among the Mekong countries on their transboundary in fiscal 2010. The use of World Bank resources for ASTAE- ecosystems. supported projects, including the GEF Bank Budget, totaled The Swedish government is considering providing new funding US$1,820,321 in fiscal 2010. to ASTAE under the specific directions of its new policy that Total donor funds utilized by ASTAE since fiscal 1992 amount was adopted in September 2010. to US$31.7 million, an amount matched by the World Bank with US$30.9 million over the same period. Details of resource utilization by year are in appendix table 3-1. Appendix Table 3-1: Resource Utilization, World Bank and Donors, FY1992–2010 YEAR US$ % US$ % US$ % FY92 108,000 32 226,400 68 334,400 100 FY93 827,087 66 419,100 34 1,246,187 100 92 FY94 1,399,635 67 688,100 33 2,087,735 100 FY95 1,309,063 56 1,046,000 44 2,355,063 100 FY96 2,057,058 56 1,618,924 44 3,675,982 100 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 FY99 1,782,576 61 1,156,346 39 2,938,922 100 FY00 2,627,480 63 1,524,004 37 4,151,484 100 FY01 955,281 46 1,106,035 54 2,061,316 100 FY02 2,108,541 66 1,106,035 34 3,214,576 100 FY03 2,205,111 64 1,239,633 36 3,444,744 100 FY04 1,014,358 25 3,013,893 75 4,028,251 100 FY05 2,704,306 44 3,450,703 56 6,155,009 100 FY06 1,959,983 38 3,169,070 62 5,129,053 100 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 TOTAL 31,747,512 51 30,909,754 49 62,657,266 100 ASTAE ANNUAL STATUS REPORT #18 Funding Events Appendix Table 3-2: Principal ASTAE Funding Events since 2001 Year Month Agency Event Amount (US$) 2001 April ASTAE Donors Meeting # 10 April Netherlands Dutch Partnership Trust Fund -1,250,000 August Netherlands Dutch Partnership Trust Fund Tranche # 4 1,250,000 August U.K. DFID Tranche # 2 745,193 2002 April ASTAE Donors Meeting # 11 April U.K. DFID Tranche # 3 469,014 2003 January U.K. DFID Tranche # 4 117,014 March Canada CIDA Climate Change Development Fund Commitment -2,780,000 Appendix 3 April Canada CIDA Tranche # 1 1.675,141 April ASTAE Donors Meeting # 12 May U.K. DFID Tranche # 5 378,578 2004 March ASTAE Donors Meeting # 13 93 March U.K. DFID Tranche #6 363,351 March Canada CIDA Tranche #2 563,562 May Netherlands Commitment ASTAE Phase 3 Funding 2004-6 (€ 3.3) -4,000,000 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 - 2008 2006 March ASTAE Donors Meeting # 15 May Netherlands BNPP Agreement signed for ASTAE II, 2006 - 2009 (7,424,400)a July Netherlands BNPP Tranche #1, ASTAE II 2,598,540 2007 March Germany ASTAE Donors Meeting# 16 Sweden Commitment by Swedish International Development Agency Commitment (SKr 15 million eq. 2,355,000 USD at that date) Australia Discussion to fund projects in Cambodia and Lao PDR December Netherlands BNPP Tranche #2 - ASTAE II 1,113,660 2008 February USA ASTAE Donor Meeting # 17 February Sweden First Tranche of SIDA Commitment 553,435 June Netherlands BNPP Tranche #3 - ASTAE II 1,856,069 2009 April USA ASTAE Donor Meeting # 18 February Sweden Second Tranche of SIDA Commitment 436,620 Australia Commitments to fund projects in Cambodia and Lao PDR, starting in FY10 June Netherlands BNPP Tranche #4 - ASTAE II 1,856,069 2010 April USA ASTAE Donor Meeting # 19 January Sweden Third Tranche of SIDA Commitment 389,414 June Sweden Fourth Tranche of SIDA Commitment 489,256 Appendix 4: ASTAE-Supported World Bank Investment Projects in East Asia and the Pacific Appendix table 4-1 lists World Bank projects that have benefited from ASTAE support since its inception. It provides details on ASTAE’s World Bank investment leverage (illustrated in figure 1-2). Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Country Projects Cost ($million) Primary Project End date Total Source of financing Component (Est.) cost IBRD/ GEF Govt. Private Other IDA Closed Projects 1 Lao PDR Provincial Grid Integra- 10/92– 0.9 DSM, institution build- tion 01/00 0.9 ing 2 Thailand Distribution System 04/93– 8.0 20.3 31.0 DSM, capacity building and Energy Efficiency 06/00 59.3 3 Indonesia Second Rural Electrifi- 02/95– 13.3 6.0 Minihydro, geothermal cation 09/00 19.3 resource assessment, and TA 4 Vietnam Power Development 02/96– 0.5 1.1 Renewable energy 06/00 1.6 capacity building 94 5 Indonesia Solar Home Systems 01/97– 0.1 2.3 1.0 Solar home systems 06/04 3.4 and TA 6 Thailand Metropolitan Distribu- 06/97– 2.5 1.5 DSM capacity building tion Reinforcement 06/04 4.0 7 Lao PDR Southern Provinces 03/88– 1.0 0.7 0.5 Solar battery charging Rural Electrification 06/04 2.2 and microhydro projects 8 China Passive Solar Heating 06/01– 0.8 0.8 Energy efficient for Rural Health Clinics 06/04 1.5 building design 9 China Energy Conservation 03/98–6/06 63.0 22.0 7.0 54.3 4.5 Energy efficiency, TA 150.8 10 Vietnam Transmission, Distribu- 01/98– 0.5 2.8 DSM capacity building, tion, and Disaster 06/07 3.3 equipment standards Reconstruction 11 China Renewable Energy 01/98– 13.0 27.0 165.4 Wind farms, PV, PV Development 06/07 205.4 technology improve- ment 12 Vietnam Rural Energy I 05/00– 1.0 1.5 Renewable energy TA & 12/06 2.5 pilot minihydro 13 China Hebei Urban Environ- 06/00– 4.0 1.0 Energy efficiency in ment 06/08 5.0 water utilities 15 China Energy Conservation II 10/02– 26.0 216.5 ESCO market 06/10 242.5 development 16 Vietnam Demand-Side Manage- 06/03– 5.5 1.2 6.7 5.2 DSM support ment 06/10 18.6 Total Closed Projects 720 97 92 40 444 48 ASTAE ANNUAL STATUS REPORT #18 Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Country Projects Cost ($million) Primary Project End date Total Source of financing Component (Est.) cost IBRD/ GEF Govt. Private Other IDA Projects Under Implementation FY02 14 Vietnam System Efficiency Im- 06/02–FY12 24.5 4.5 2.8 Renewable energy provement, Equitiza- 17.2 and DSM tion, and Renewables FY04 17 Philip- Rural Power 12/03-FY12 26.7 9.0 0.2 7.5 Renewable energy pines 10.0 for rural applica- Appendix 4 tions 18 Cambo- Rural Electrification 12/03-FY12 32.0 5.8 10.2 Renewable energy dia and Transmission 16.0 for rural applica- tions 19 Philip- Power System Loss 06/04-FY12 62.3 12.0 0.3 50.0 Rural electrifica- 95 pines Reduction tion & efficiency FY05 20 Vietnam Rural Energy II 11/04-FY11 329.5 5.3 70.0 35.0 Renewable energy 220.0 for remote com- munities 21 China Heat Reform and 03/05-FY11 52,6 18.0 0.9 33.7 Energy efficiency Building Efficiency 22 China Renewable Energy 06/05-FY11 336.0 40.2 142.0 67.0 Renewable energy Scale-Up Program 87.0 and energy ef- ficiency 23 PNG Teachers' Solar Light- 06/05-FY11 2.9 1.0 0.1 1.7 0.1 Renewable energy ing Project (PV) for teachers in rural areas FY06 24 China Renewable Energy 01/06-FY11 132.4 30.1 16.0 Wind farm and Scale-Up Program 86.3 small hydro Phase 1B 25 Lao PDR Lao PDR Rural Electrifi- 01/98–06/07 205.4 27.0 165.4 Wind farms, PV, cation Phase I 13.0 PV technology improvement FY07 26 Mongolia Renewable Energy and 01/07-FY11 23.0 3.5 10.0 6.0 Renewable energy Rural Electricity 3.5 and rural electric- ity access Appendix 4: ASTAE-Supported World Bank Investment Projects in East Asia and the Pacific Appendix table 4-1 lists World Bank projects that have benefited from ASTAE support since its inception. It provides details on ASTAE’s World Bank investment leverage (illustrated in figure 1-2). Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Country Projects Cost ($million) Primary Project End date Total Source of financing Component (Est.) cost IBRD/ GEF Govt. Private Other IDA Projects Under Implementation FY07 27 Timor-Leste Gas Seep Harvest- 03/07-FY12 0.6 Gas seep for power ing 1.5 0.9 generation 28 Timor-Leste Energy Service 06/07-FY11 2.0 2.0 Loss reduction, RE Delivery 8.5 4.5 development and community-based access 29 Pacific Sustainable Energy 05/07-FY16 9.5 20.2 22.1 6.7 Renewable energy Islands Financing 58.5 scaling up FY08 30 Indonesia Geothermal Power 05/08-FY11 4.0 5.0 Geothermal power 96 Generation Devel- 9.0 scaling up and opment capacity building 31 China Energy Efficiency 05/08-FY13 13.5 6.3 373.8 Energy efficiency Financing 593.6 200.0 financing 32 China Liaoning Third 05/08-FY13 184.9 Improve efficiency Medium Cities 375.9 191.0 of heating and gas Infrastructure services FY09 34 Solomon Solomon Islands 07/08-FY13 0.5 Electricity losses Islands Sustainable Energy 4.5 4.0 reduction and increased access 35 Philippines Additional Financ- 04/09-FY11 0.5 7.9 Renewable energy ing for Rural Power 48.4 40.0 for rural applica- tions 36 Vietnam Renewable Energy 05/09-FY15 64.0 49.7 2.3 Increase RE share in Development 318.0 202.0 electricity mix, TA and lending 37 China Thermal Power 05/09-FY16 19.7 15.5 73.8 Efficient dispatch Efficiency 109.0 and increase thermal plants ef- ficiency 38 Vietnam Rural Energy 05/09-FY16 38.8 11.8 Improved and new II - Additional 250.6 200.0 electricity access Financing ASTAE ANNUAL STATUS REPORT #18 Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Country Projects Cost ($million) Primary Project End date Total Source of financing Component (Est.) cost IBRD/ GEF Govt. Private Other IDA Projects Under Implementation FY10 39 China Energy Efficiency 06/10- 101.6 100.8 0.8 Catalyze commer- Financing II FY15 cial investments in industrial energy efficiency 40 India Financing Energy 05/10- 57.6 11.3 0.3 46.0 Increase energy Appendix 4 Efficiency in FY14 efficiency in micro, MSMES small, and me- dium enterprises 41 Lao PDR Rural Electrifica- 01/10- 35.8 24.4 4.0 3.4 4.0 Increase rural tion II FY14 households 97 access to electricity 42 Vietnam System Efficiency 06/10- 3.5 3.5 Renewable Improvement, FY13 energy and DSM Equitization, and Renewables - Ad- ditional Financing Total Current Fiscal Year 199 129 11 5 49 4 Total Projects Under Implementation 3,186 1,571 162 661 622 226 98 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