89493 THE WORLD BANK ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM (ASTAE) Annual Status Report #14 July 1, 2005 - June 30, 2006 (FY 2006) ASTAE February 2007 Washington, D.C. THE WORLD BANK ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM (ASTAE) Annual Status Report #14 July 1, 2005 - June 30, 2006 (FY 2006) ASTAE February 2007 Washington, D.C. Copyright © 2007 The International Bank for Reconstruction and Development / The World Bank Group 1818 H Street, NW Washington, DC 20433, USA All rights reserved First printing: February 2007 Manufactured in the United States of America. This document is a product of the staff of the World Bank Group. The find- ings, 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. Contents Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Units of measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Financial Year Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Proof of Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Approval of Projects Supported by ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Funding Mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Successful Transition from the 2004–06 to the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . 12 Reaffirmation of the Central Role of East Asia and the Pacific in Achieving the World Bank Group Bonn Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. Implementation of Business Plan IN FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Projects Approved in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Follow-Up Project to the First Phase of the China Renewable Energy Scale-Up Program (P096158/P087292) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Contents Lao PDR Rural Electrification Phase I of the Rural Electrification APL Program (P075531) . . . . . . . . 19 Achievements under Projects Closed in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 China Energy Conservation (P003606 / P037859) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 India Rajasthan Power Sector Restructuring (P038334) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Projects Added to the Pipeline in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Regional, Sustainable Energy Finance Pacific Project (P098423) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 China, Financing of Two Biomass Projects in Inner Mongolia as Part of the CRESP Project . . . . . . . 23 Fiji Electricity Authority Renewable Power Development (RDP) Project (P099308) . . . . . . . . . . . . . . 24 Indonesia, Energy Efficiency Finance Project (P095746) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Mongolia, Renewable Energy and Rural Electricity Access Project (P099321/P084766) . . . . . . . . . . . 24 China, Energy Efficiency Financing Project (P084874) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Selected Ongoing Non-lending and Knowledge Management Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 China, Jade Electricity: Developing a Green Electricity Scheme for Shanghai . . . . . . . . . . . . . . . . . . . 26 Philippines, Wind Power Training Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 China, Shanghai Energy Resource Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 China, Wind Resource Assessment Handbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 China, Building a Resource Efficient Society Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Outreach and Promotion: ASTAE and REDP Exhibitions at Energy Week 2006 . . . . . . . . . . . . . . . . . 29 3. Progress against ASTAE Business Plan Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Progress against the 2004–06 Business Plan Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Target 1: Households That Received Access to Modern Energy Services . . . . . . . . . . . . . . . . . . . . . . . 31 Target 2: Facilitating Investment in Renewable Energy Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Target 3: Avoiding Additional Fossil Fuel–Based Electricity Generating Capacity through Energy Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Target 4: Avoided Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Other Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ASTAE Annual Status Report #14 3 Overview of the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Specific ASTAE Targets for the 2007–09 Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Indicator 1: Households with New and Improved Access to Modern Energy Services . . . . . . . . . . . . 35 Indicator 2: Facilitate Investments and Generation in Renewable Electricity . . . . . . . . . . . . . . . . . . . 35 Indicator 3: Facilitate Energy Savings as a Result of Efficiency Improvements . . . . . . . . . . . . . . . . . . 35 Indicator 4: Avoided Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Indicator 5: Number of Countries with Projects Supported by ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . 36 4. Utilization of ASTAE Resources in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 5. World Bank Resources for ASTAE-Supported Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 6. ASTAE Funding Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 7. Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Annexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Annex 1: A Brief History of ASTAE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Annex 2: Energy Lending Statistics for FY02–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Annex 3: ASTAE-Supported Investment Projects—East Asia and the Pacific . . . . . . . . . . . . . . . . . . . . . . . . . 49 Annex 4: ASTAE-Supported Investment Projects—South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Contents Annex 5: Publications in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Annex 6: Important ASTAE Funding Events since 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Boxes Box 1: Adding Energy Efficiency to the Energy Equation in China: ASTAE Bridge Support between Energy Conservation Projects I and II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Box 2: Scaling Up Greenhouse Gas Mitigation in Asia: Canada International Development Agency (CIDA) TF050558 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Figures Figure 1: WBG Commitments for Renewable Energy and Energy Efficiency in FY06 . . . . . . . . . . . . . 15 Figure 2: Country Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Figure 3: Allocations by Type of Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Tables Table 1: Changes in FY06 and Status at the End of FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Table 2: ASTAE 2004–06 Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Table 3: ASTAE Indicators 2007–09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Table 4: Activities Supported by ASTAE in FY06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Table 5: Resource Utilization, World Bank and Donors, FY92–06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 4 ASTAE Annual Status Report #14 Acronyms and Abbreviations AFR Africa Region ASTAE Asia Sustainable and Alternative Energy Program BMZ Federal Ministry for Economic Cooperation and Development (Germany) (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung) BNPP Bank-Netherlands Partnership Program CIDA Canadian International Development Agency CO2 Carbon dioxide CRESP China Renewable Energy Scale-Up Program DANIDA Danish International Development Agency DfID Department for International Development (United Kingdom) DGIS Directorate-General for International Cooperation (Netherlands) DSM Demand-side management EAP East Asia and the Pacific Region Acronyms and Abbreviations ECA Europe and Central Asia Region EMC Energy management company ENPOGEN Energy, Poverty, and Gender Project ESCO Energy Services Companies ESMAP Energy Sector Management Assistance Programme FEA Fiji Electricity Authority FINESSE Financing Energy Services for Small-Scale Energy Users (a project) FY Fiscal year FY06 Fiscal year 2006 (July 1, 2005 – June 30, 2006) GEF Global Environment Facility GTZ German Corporation for Technical Cooperation (Deutsche Gesellschaft für Technische Zusammenarbeit) IBRD International Bank for Reconstruction and Development IDA International Development Association IDF International Development Forum IFC International Finance Corporation Lao PDR Lao People’s Democratic Republic LAC Latin America and the Caribbean Region MIGA Multilateral Investment Guarantee Agency PBL Project-based lending ASTAE Annual Status Report #14 5 PDF Project Development Facility (GEF) PHRD Japan Policy and Human Resources Development Fund PLN Perushaan Listrik Negara (Indonesian State Electricity Corporation) PV Photovoltaic REAP Renewable Energy Action Plan (Vietnam) REDP Renewable Energy Development Project (China) SEK Swedish krona SPRE Southern Provinces Rural Electrification (Lao PDR) TA Technical Assistance U.K. United Kingdom UNDP United Nations Development Programme US$ U.S. dollar USAID U.S. Agency for International Development Units of measure USDOE U.S. Department of Energy USTDA U.S. Trade and Development Agency WB World Bank WBG World Bank Group (IBRD, IDA, IFC, MIGA) Units of measure GW Gigawatt (1 billion or 109 watts) see also MW GWh Gigawatt-hour kW Kilowatt (1,000 watts) kWh Kilowatt-hour kWp Kilowatt-peak MW Megawatt (1 million or 106 watts) MWh Megawatt-hour MWhel Megawatt-hour electric equivalent MWhth Megawatt-hour thermal equivalent MWp Megawatt-peak t Ton tce Tons of coal equivalent te Tons equivalent TW Terawatt (1 trillion or 1012 watts); see also MW 6 ASTAE Annual Status Report #14 Foreword Foreword he Asia Sustainable and Alternative Energy Program (ASTAE) was estab- T lished in 1992 to mainstream alternative energy (renewable energy and energy efficiency) in the World Bank’s energy sector lending operations in Asia. At its inception, ASTAE’s strategic objective was to drive renewable energy and energy efficiency investments to become 10 percent of the World Bank’s ener- gy lending in Asia. This initial objective was achieved when alternative energy components and projects reached more than 12 percent of the Bank’s power sec- tor lending in Asia during FY1998–2000, and renewable energy and energy efficiency became an important component of country strategies in the region. At the Bonn International Conference on Renewable Energies in June 2004, the World Bank Group (WBG) committed itself to increasing energy efficiency and renewable energy investments by 20 percent per year over five years (FY05–09). So far, during FY05 and FY06, WBG investment support for alternative energy has exceeded the Bonn commitment. The East Asia and the Pacific Region contributed to this success substantially with an investment of US$232 million in new clean energy in FY06, including US$103 million for new renewable energy, US$72 million for energy efficiency, and US$57 million for hydropower above 10 MW. The successful ramping-up of alternative energy investment projects in Asia would not have been possible without ASTAE. Furthermore, especially during recent years, ASTAE’s role has been much more than just facilitating achievement of the growth in renewable energy and energy efficiency investment projects to the point where they comprise a sizable portion of the investment portfolio. ASTAE has enabled project teams to mobilize world-class expertise to contribute on difficult issues of technical design, institution building, financial engineering, regulatory policy, social development policy, sector planning, and local capacity building. ASTAE Annual Status Report #14 7 This has fostered the development of a series of new, innovative project approaches, far deeper institutional development than is common for most investment projects, broad awareness building on the potential for further clean energy development, and a vibrant cross-exchange of operational experience on alternative energy. This mobilization of expertise and knowledge to develop new ideas, and the subsequent required hands-on assistance to operationalize and implement them, is the key to long-term results in the new, growing business of alternative energy investment projects — and is truly a special contribution of ASTAE. This report focuses on ASTAE’s work during the specific period of FY06, and hence provides only a snapshot of ASTAE’s overall contribution in recent years. Even so, the diversity and breadth of ASTAE’s work is striking. During FY06, ASTAE was not only able to maintain and consolidate strategically important work in China and Vietnam, but it also increased activities in a broader range of countries, including Cambodia, Fiji, Indonesia, Laos, Mongolia, Papua New Guinea, Solomon Islands, and Timor-Leste. Citing only some examples from FY06, work on rural electrification and energy efficiency strategies in Indonesia sought to lay a foundation for possible future operational programs. Further along the project cycle, energy efficiency, institu- Foreword tional development, and renewable energy program components were developed for the Bank’s new two-phase rural electrification Adjustable Program Loan in Lao PDR. ASTAE-supported experts designed the more challenging aspects of the new Mongolia Renewable Energy for Rural Access Project, which was subse- quently approved by the Bank’s Board in late 2006. Even further down the project cycle, ASTAE provided essential assistance for addressing thorny implementation issues in the China Renewable Energy Scale- Up Project (CRESP), which is one of the largest and most ambitious renewable energy scale-up projects ever developed by the Bank. ASTAE provided support to encourage Chinese cities to adopt particularly innovative packages of building energy efficiency investments and heating system reform, associated with the China Heat Reform and Building Energy Efficiency Project. Cross-country work also continued as work on energy, poverty, and gender (ENPOGEN) issues pro- gressed further, and Chinese project counterparts helped project counterparts in Papua New Guinea gain access to new solar photovoltaic (PV) packages suitable for low-cost applications in rural schools. ASTAE’s work in FY07 promises further new innovations and efforts to scale up results. With China’s requests for knowledge, experience, and new ideas to fur- ther improve energy efficiency and more aggressively develop low-carbon energy sources, expertise through ASTAE, combined with increasing Bank and Global Environment Facility (GEF) investments, could make truly remarkable new con- tributions. For example, building on past success in developing a new industry of energy services companies (ESCO), the Bank is developing a new US$200 mil- lion Energy Efficiency Financing Project loan, to launch new energy efficiency lending programs in Chinese banks. In Vietnam, preparation of a new multi- donor investment operation to foster private sector renewable energy development is just being launched, as is a new long-term program to develop energy efficien- 8 ASTAE Annual Status Report #14 cy businesses in the local market. Work in small countries is expanding, too. In Fiji, for example, the Bank, with ASTAE assistance, is supporting the Fiji Electricity Authority to make Fiji the second country in the world (after Norway) to obtain all its electricity from renewable resources on a least-cost basis. With these and other initiatives requested by clients, the importance of ASTAE’s work is expected to increase. The year 2006 also signified the completion of the first business plan period for the new structure of ASTAE. The strategic recommendations from the 2002 Management Review have worked well. In measurable results, the ASTAE Business Plan 2004–06 provided targets for new renewable energy generation capacity and avoided energy generation capacity through energy savings, which, once implemented, would result in a reduction of CO2 emissions of 156 million tons during a 20-year period. The important role played by ASTAE in delivering these results would not have been possible without the generous support received from ASTAE supporters. Junhui Wu Sector Manager East Asia and Pacific Energy and Transport Unit (EASTE) Foreword The World Bank ASTAE Annual Status Report #14 9 1 Executive Summary 1 Executive Summary Background In 1992, the World Bank and its donor partners established the Asia Sustainable and Alternative Energy Program (ASTAE) to support the transition to environmentally sustainable energy use in developing countries in Asia by increasing World Bank lending for energy efficiency and renewable energy project components and projects. The ASTAE mandate was later extended to encompass energy poverty, and its objective became to “scale up the use of sustainable energy options in Asia to reduce energy poverty and protect the environment.” Although ASTAE support to World Bank projects can repre- sent only a small part of the total preparation cost, its timeli- ness to address unforeseen problems is of great importance and in some instances vital. According to many task managers, development of some of the projects supported by ASTAE would not have been possible (such as for the Sri Lanka Energy Service Delivery Project and the China Renewable Energy Development), or they would have taken a much longer time (such as for the China Renewable Energy Scale-Up Program). A history of the ASTAE program is provided for reference in Annex 1. By the end of June 2006, ASTAE had supported the prepara- tion and implementation of 46 World Bank and/or Global Environment Facility (GEF) projects in 17 countries in Asia and the Pacific. Through FY06, 35 of the 46 projects support- ed by ASTAE were approved by the World Bank Board of 10 ASTAE Annual Status Report #14 Executive Directors. These 35 projects will provide access to modern energy sources to about 1.55 million households and improve the electricity services of another 600,000 house- holds, directly avoiding more than 1 GW in electricity generat- ing capacity equivalent as a result of energy efficiency improve- ments (and indirectly an additional 3.5 GW equivalent). The projects will also directly install 860 MW in renewable electric- ity generating capacity (and indirectly an additional 4.9 GW) and directly reduce more than 200 million tons of CO2 in greenhouse gas emissions (and indirectly an additional 1,200 million tons).1 The total investment of the 35 projects is US$2.64 billion, of which US$989 million is provided by the IBRD and IDA and US$244 million by the GEF. This annual report concentrates on the activities that occurred during the financial year 2006, which started July 1, 2005 and ended June 30, 2006. It should be noted that a given financial year may not be representative of the full range of ASTAE-sup- ported activities, which more often than not overlap over sev- 1 eral years. Executive Summary Financial Year Highlights Proof of Concept The important highlight this year is proof of the ASTAE con- cept. ASTAE concluded its first three-year business plan sub- sequent to the Management Review in 2002, which recom- mended a change both in the structure and the focus of ASTAE activities. From an independent unit, ASTAE became an inte- gral part of the East Asia and Pacific Energy Unit. At the same time, ASTAE’s activities started to include a focus on access to modern energy services. This also made it possible for ASTAE to move from general qualitative targets to output-based tar- gets. ASTAE also received funding for its 2007–09 Business Plan from the Government of the Netherlands, which made a com- mitment to provide US$7.4 million in funding for ASTAE II. Last, but not least, ASTAE was again instrumental in the East Asia and the Pacific Region’s achievement of being the second largest contributor to the WBG commitment made in Bonn in 1. Data here are approximations for all 2004 to scale up investments in energy efficiency and renew- the ASTAE-funded projects. For example, approximately 752,500 households have able energy. been or will be connected through projects approved in the period 1992–2003. Another Approval of Projects Supported by ASTAE 797,500 households were connected through projects approved by the World Bank Board In FY06 the World Bank’s Board of Executive Directors of Executive Directors during 2004–06. Similarly, estimates are made for the approved two projects that had received ASTAE support. The Renewable Energy and Energy Efficiency total sustainable energy investment from these projects will be Indicators, with the indicators for 2004–06 reported in detail in the current report. US$168 million, of which US$96 million derives from IBRD ASTAE Annual Status Report #14 11 and/or IDA commitments and US$3.7 million derives from GEF commitments. The projects supported by ASTAE consti- tuted 23 percent of World Bank and GEF total energy lending in East Asia and the Pacific Region (see Annex 2 for further details). The expected outcomes of the two projects are sum- marized as follows: • China Follow-Up to CRESP, Phase 1B is expected to pro- vide for the installation of 128 MW of renewable energy and to displace 6.4 million tons of CO2 over a 20-year period. • The second project approved by the Board, Lao PDR Rural Electrification Phase I of the Rural Electrification APL Program, will provide access to new electric connections for 52,000 households, while saving 15.3 GWh of electricity through efficiency improvements and displacing 0.0443 million tons of CO2 over a 20-year period. Funding Mobilization 1 The Swedish Agency for International Development has indi- cated that it would start to contribute to ASTAE with SEK 15 million for a period of more than three years. Executive Summary The Government of the Netherlands approved ASTAE’s 2007–09 Business Plan and provided a commitment of US$7.4 million for FY06–08. The first disbursement of US$2,598,540 was received. Successful Transition from the 2004–06 to the 2007–09 Business Plan Building on the achievements and even exceeding most targets of the ASTAE 2004–06 Business Plan, the forthcoming ASTAE 2007–09 Business Plan was drafted, discussed, and approved by its principal donors. This new business plan sets forth updated targets and improves on ASTAE’s performance based on the lessons learned during the past three-year plan. In the ASTAE 2004–06 Business Plan, the first four targets provide the core indicators of success for ASTAE’s contribu- tion to the scale-up of sustainable energy and access in Asia. One of the lessons learned is that the World Bank’s activities, particularly in the area of energy savings, are moving more and more from financing direct investments to facilitating invest- ments by the private sector. Such indirect achievement of the expected impacts was not initially anticipated in the 2004–06 Business Plan. In this report, we report on both the expected direct and indirect effects from investments that benefited from ASTAE support. The 2007–09 Business Plan now also contains specific targets for these indirect outcomes. The targets listed below are indicative figures based on the final project appraisal before the project goes to the World 12 ASTAE Annual Status Report #14 Bank Board for approval. The figures listed are, therefore, forward-looking figures that will be confirmed after closing the projects, following the due diligence of the Implemen- tation Completion Report. Households That Received Access to Modern Energy Services The 2004–06 Business Plan target was to provide access for 1 million households. Not only did ASTAE achieve close to 80 percent of this target, but it also contributed to helping more than 600,000 households in Vietnam that previously had limited access (only 2 to 3 hours of electricity per day) obtain more reliable and longer supplies. This means that almost 1.4 million have received or will receive new or improved access — a successful, if different, outcome from the original target. For the period 2007–09, keeping in mind this dual outcome, the targets were set to 500,000 households for new access and 500,000 households for getting improved services. Facilitating Investment in Renewable Energy Capacity 1 In 2003, ASTAE set 1 GW as a target for investments for the Executive Summary period 2004–06. In direct investments, ASTAE facilitated about 25 percent of that target (266 MW). However, through guarantees provided by Bank loans and GEF grants for new renewable investments by the private sector, ASTAE over- achieved this target by nearly five times. More than 4.9 GW of investments in renewable energy generation capacity are expected to be generated. For the period 2007–09, ASTAE not only has a capacity indicator (350 MW directly and 3GW indirectly), but also an actual energy generation indicator with an expected energy generated by the new investments expressed in GWh (1,000 GWh directly and 3,000 GWh indirectly). Avoiding Additional Fossil Fuel–Based Electricity Generation through Energy Savings The target for the reporting period started out as 1 GW. From the start of the reporting period, ASTAE had difficulties in recording the amount of avoided capacity in this unit, since most Bank projects focused on the amount of GWh saved. With this in mind, in the period 2004–06 ASTAE facilitated the saving of 250 MW capacity — only 25 percent of the target of 1 GW. However, through private sector investments facili- tated by Bank and GEF guarantees or other credit-enhancing mechanisms, more than 3.5 GW capacity was avoided — 3.5 times the target. In ASTAE targets for 2007–09, this tar- get is no longer used, but rather is replaced with energy units: direct and indirect amount of GWh saved. The targets set are:1,000 GWh directly and 10,000 GWh indirectly, through private sector investments. ASTAE Annual Status Report #14 13 Avoided Greenhouse Gas Emissions The 2004–06 Business Plan did not have an explicit reduc- tion of CO2 emissions as a target. However, ASTAE translated the renewable energy and energy efficiency targets into a CO2 emission reduction target of 156 million tons over a 20-year period. Again, through direct Bank-financed investments, ASTAE achieved a little more than a third of the 156 million ton target (58 million tons CO2 equivalent). However, if the actually facilitated emission reductions are taken into account, ASTAE will have overachieved its target by nearly 8 times with a projected reduction of 1,240 million tons of CO2 emissions. The target for the 2007–09 period is set for a reduction of 78 millions ton of CO2 through direct investments and 10 times this amount — 780 million tons of CO2 emissions — through indirect Bank support. Other Targets 1 The 2004–06 Business Plan had a number of other targets, including expansion of the number of countries in which ASTAE would provide support and process focused targets. All Executive Summary those targets were achieved and are shown in chapter 2. Now that the new structure of ASTAE is well established, these process-focused targets have not been incorporated in the 2007–09 Business Plan. Reaffirmation of the Central Role of East Asia and the Pacific in Achieving the World Bank Group Bonn Commitment The WBG committed itself to scaling up its support for renew- able energy and energy efficiency in developing countries at the 2004 International Conference on Renewable Energies in Bonn, Germany. In addition to supporting specific programs and policies, the WBG adopted a target of 20 percent average annual growth in energy efficiency and new renewable energy commitments between FY05 and FY09 (the “Bonn target”). For the second year in a row, the WBG has outperformed its Bonn target. In FY06, the WBG’s financial support for renewable energy and energy efficiency was US$860 million. Commitments were shared between US$221 million for new renewable energy, US$447 million for energy efficiency, and US$192 million for hydropower above 10 MW (see Figure 1). East Asia and the Pacific contributed largely to this success and provided US$103 million for new renewable energy, US$72 million for energy efficiency, and US$57 million for hydropower above 10 MW. This placed it as the second-high- est contributing Region this financial year. The Region alone provided 46 percent of the total new renewable energy com- 14 ASTAE Annual Status Report #14 Figure 1: WBG Commitments for Renewable Energy and Energy Efficiency in FY06 1 Executive Summary ASTAE Annual Status Report #14 15 mitments. This was achieved by the simultaneous engagement of three of the four branches of the WBG, as well as the GEF. Taken alone, with US$175 million committed for new renew- able energy and energy efficiency in FY06, the East Asia and Pacific Region has exceeded by 153 percent the theoretical Bonn target of US$70 million, based on a 20 percent growth annually from the US$48 million commitments of FY04. Since FY04, the East Asia and Pacific Region achieved an aver- age annual growth in lending commitment of 90 percent for the Bonn-related targets. 1 Executive Summary 16 ASTAE Annual Status Report #14 2 Implementation of Business Plan in FY06 2 Implementation of Business Plan in FY06 Table 1 summarizes the changes in ASTAE’s portfolio mix during FY06, as well as the situation at year’s end. For a description of all projects, see the ASTAE website at http://www.worldbank.org/astae. The financial details for projects in East Asia are provided in Annex 3 and those for South Asia in Annex 4. Table 1: Changes in FY06 and Status at the End of FY06 This chapter describes the Changes in FY06 South Asia East Asia and the Pacific Total FY06 progress by present- Closed 1 1 2 ing: (a) the two projects Approved 0 2 2 Added to pipeline 0 6 6 approved in FY06; (b) the Dropped from pipeline 0 1 1 Status at end-FY06 South Asia East Asia and the Pacific Total progress achieved under the Total closed 5 9 14 two projects closed during Under implementation 6 16 22 Pipeline 0 10 10 FY06; and (c) the five proj- Total 11 35 46 ects added to the ASTAE pipeline. Each project overview will include information on the project, its sustain- able energy component, and the ASTAE support provided or envisioned, or both. Projects Approved in FY06 In FY06 the World Bank’s Board of Executive Directors approved the following two projects: • Follow-Up Project to the First Phase of the China Renewable Energy Scale-Up Program (CRESP; P096158 / P087292); and • Lao PDR Rural Electrification Phase I Project in support of the Rural Electrification APL Program (P075531). ASTAE Annual Status Report #14 17 Follow-Up Project to the First Phase of the China Renewable Energy Scale-Up Program (P096158/P087292) The World Bank’s Board of Executive Directors approved the Follow-Up Project to the First Phase of the China Renewable Energy Scale-Up Program on January 5, 2006. This project was also known in the FY05 pipeline as CRESP Phase 1, Part B. As indicated by its name, this project provides the funding to support a subcomponent of the CRESP project already approved in June 2005. The objective of this project is to demonstrate early success in the development of large-scale, renewable energy investments while enabling the participation of local developers in two pilot provinces. Such lending is necessary, in addition to the existing CRESP, to fast-track implementation of projects while the investment funds from local sources are still in the 2 process of materializing. To do so, the project supports the establishment of: (a) a 100 MW wind farm at Huitengxile in Inner Mongolia; and (b) 18 small hydropower plants in Implementation of Business Plan in FY06 Zhejiang Province, through the rehabilitation of 11 small hydropower plants that will increase their capacity from 40 to 52 MW, and the construction of 7 new small hydropower plants for a total capacity of 16 MW. The Huitengxile wind farm will generate 4,900 GWh during the lifetime of the proj- ect (20 years), avoiding CO2 emissions of 4.4 million tons equivalent to 1.2 million tons of carbon. The small hydro projects are expected to generate an additional 2,500 GWh during the lifetime of the project, avoiding 2 million tons of CO2 emissions equivalent to 0.56 million tons of carbon. The total project cost is US$132.42 million, of which the IBRD is providing US$86.33 million, local financial intermediaries US$16.01 million, and the government US$30.08 million. The bulk of the funding goes to component 1, the Huitengxile wind farm, with a total of US$101.65 million, including US$67 million from IBRD. The expected closing date of the project is September 30, 2010. ASTAE supported the preparation of this project by providing the wind farm developer, North Long Yuan Wind Power Company in Inner Mongolia, with access to international experience and expertise throughout the early stages of project implementation. It supported the validation of wind data, the confirmation of the site selection, as well as technical specifi- cations, financial evaluations, and the establishment of bid documents. This confirms and complements the critical sup- port already provided by ASTAE at all stages of development of the CRESP. 18 ASTAE Annual Status Report #14 Lao PDR Rural Electrification Phase I of the Rural Electrification APL Program (P075531) The World Bank Board of Executive Directors approved this project, previously called Southern Provinces Rural Electrification II (SPRE II), on March 27, 2006. The project is to be implemented in two phases, with the global objectives of: (a) increasing rural households’ access to electricity in vil- lages in seven southern provinces; and (b) achieving a global sustainability for the development of the power sector. A total of 106,000 rural households are expected to be electrified within the program’s life. The project has two subcomponents, implemented by two agen- cies according to their respective strengths and areas of respon- sibility. With component 1, Electricité du Laos will concentrate on grid extension, loss reduction, demand-side management (DSM), and energy efficiency, and will electrify rural house- holds within reach of the national grid. With component 2, the Ministry of Industry and Handicraft will direct the off-grid 2 investment program and the development of innovative off- Implementation of Business Plan in FY06 grid electrification models to electrify rural households and will develop the energy sector master plan and strategy. An extensive capacity building element is also included in each component. The design of the project has been largely underpinned by the successes of the previous SPRE project, which was closed in FY05 (see Annual Report 13) and which also benefited from ASTAE support. The total proposed project cost is US$72 mil- lion under a two-phase Adaptable Program Loan (APL), for which IDA is expected to provide US$25 million, GEF is expected to provide US$10 million, the Norwegian Agency for Development Cooperation (NORAD) US$10 million, and the remainder, US$27 million, to be provided by the government, Electricité du Laos, and the households. The total committed funding for the ongoing Phase I is US$36.27 million, includ- ing an IDA grant of US$10 million and a GEF grant of US$3.7 5 million. Triggers to move to Phase II are multiple, and include reaching at least 70 percent of the electrification targets of Phase I totaling 42,000 households for Electricité du Laos and 10,000 households for the Ministry of Industry and Handicraft. Throughout the project life, energy savings result- ing from the DSM and energy efficiency elements are estimated to be 76.5 GWh or 40,250 te CO2. The off-grid electrification is also expected to displace 4,050 te CO2, which brings the combined savings to 44,300 te CO2. If Phase II is triggered, the expected closing date of the project will be March 31, 2012. ASTAE provided substantial support during the preparation of this project. In previous years, in addition to providing ASTAE Annual Status Report #14 19 direct technical assistance through its program-based consult- ants, it provided funding to prepare the DSM component of the project, the analysis of the social impact of rural electrifi- cation, a review of the tariff structure, and subsidy policies and a renewable resource assessment and compilation into a data- base. In FY06, ASTAE funded further just-in-time technical assistance to help finalize the innovative design of the rural electrification components through: (a) employment of a management contractor in charge of supporting the Ministry of Industry and Handicraft in the design of its components’ activities; (b) preparation of an off-grid rural electrification master plan and Geographic Information System (GIS) data- base; (c) preparation of a micro-hydro resource assessment; and (d) development of legal, regulatory, and institutional arrangements for the alternative rural electrification models. Achievements under Projects Closed in FY06 2 In FY06, the following two projects that received ASTAE sup- port were closed: • China Energy Conservation (P003606 / P037859); and Implementation of Business Plan in FY06 • India Rajasthan Power Sector Restructuring (P038334). China Energy Conservation (P003606 / P037859) This project was approved on March 26, 1998, and closed on June 30, 2006, although the GEF component was extended for one year. The project comprises three components: (a) demonstration of operation of three energy management com- panies (EMCs); (b) dissemination of information on the con- cept of EMCs; and (c) program management and monitoring of the development of EMCs. The indicators of success includ- ed: (a) the quantity of energy savings and CO2 reduction; (b) the number of energy performance contracts and the variety of companies engaged in these contracts; and (c) the diffusion of information on energy efficiency measures. More precisely, during the eight years of the project period, direct energy sav- ings of 13 million tce and a direct reduction of 9.2 million t CO2 were expected from the investments of the three EMCs. In addition, direct savings of 32 million tce and direct reduc- tion of 24.7 million t CO2 were expected from the investment lifetime, which will exceed the project duration, and indirect savings of 24 million tce and indirect reduction of 18.7 million t CO2 were expected from projects implemented following the energy information programs. By June 2006, the direct targets were achieved with energy sav- ings of 12.8 million tce (98 percent of target) and a reduction of 11.06 million t CO2 (120 percent of target) according to the annual report of the project management office. In all, the 20 ASTAE Annual Status Report #14 three EMCs entered into 475 energy performance contracts with 405 enterprises. Indirect savings, undertaken by entities other than the three project EMCs following the energy infor- mation programs, were not yet available. Total project cost is within the initial budget of US$150.8 mil- lion, including a US$63 million IBRD loan and a GEF grant of US$22 million. It is noteworthy that, with US$54.3 mil- lion, the private and commercial bank portion represented 36 percent of the project total. The outcome of this project is not yet final, since the GEF part is still open, but it is expected to be at least rated satisfactory. ASTAE provided general support to this project, but was more specifically involved in providing a bridge between this project and the start of Phase II, which was approved in June 2003. This contribution is detailed fur- ther in Box 1. Box 1: Adding Energy Efficiency to the Energy Equation in China: ASTAE Bridge Support between Energy Conservation Projects I and II 2 In the early 1990s, the concept of energy efficiency was foreign to China. The low cost to energy users and the relative lack of awareness of the economic, environmental, and health costs meant that the notion of energy conservation and Implementation of Business Plan in FY06 efficiency was absent from the mind-set of energy planners and project developers. The Energy Conservation Project I successfully demonstrated through three pilot EMCs in Beijing, Shandong, and Liaoning that energy performance contracting was feasible in China. It also addressed early implementation issues, in particular the novelty of the approach, and incorporated lessons learned into subsequent EMC activities. In short, the EMCs made money, saved energy, and reduced carbon emissions on commercial terms, and thus the concept was ready for scale-up through the Energy Conservation Project II. As is frequently the case with the adoption of new concepts and the development of best practices around them, it took time to design and develop an appropriate financial model. In particular, attention had to be paid to the chal- lenge for entrepreneurs to mobilize funds in an area unfamiliar to bankers. Attention also had to be paid to the replic- ability of the model and to the model’s robustness in being scaled up when the concept was applied on a broader scale. This is where ASTAE, using funding from the U.K. Department for International Development (DfID), provided a criti- cal bridge between the two Bank phases. The timely ASTAE activities enabled the experience, lessons learned, and expertise gained by the three Phase I pilot EMCs to be documented in training and technical assistance materials, and transferred to a new generation of EMCs. These activities led to the development of scores of new EMCs, many of which successfully obtained financing and developed projects prior to the availability of Phase II loan guarantee financing. In this process, the ASTAE funding contributed to the creation of the EMC Association, an institution with the single objective of developing and sustaining EMCs. The EMC Association is considered an outstanding success. It has assisted 50 EMCs in their development through training and technical assistance. It acted as a portal between the government and the EMC industry, and has been instrumental in the development of government policies that are beneficial to the EMC industry. It counted 85 members in 2005 which, in one year, invested US$170.5 million and saved 13.6 million tce and 9.2 million tons CO2. The EMC industry requires domestic financing to be sustainable. To this end, the major element of Phase II of the China Energy Conservation Project is a loan guarantee mechanism administered by the Chinese National Investment and Guaranty Company, I&G. I&G, however, had limited experience with various project-financing packages. Therefore, technical assistance in customized financial engineering was provided to I&G, local guarantee companies, and commer- cial banks. International and domestic teams worked with I&G to develop “project-based lending” (PBL) packages, which would act as alternatives to the traditional approach, which involves Chinese working capital loans that are secured by assets and counter-guarantees from EMCs. After lengthy work, I&G acknowledged that the use of PBL would improve risk mitigation while increasing business volume, and it started developing a pipeline of EMC projects for the I&G loan guarantee. In 2005 I&G guaranteed projects for US$26.8 million, which saved 1.2 million tce and 800,000 tons CO2. Finally, the considerable amount of material generated may also be valuable to the development of EMCs, EMC asso- ciations, energy performance contracting, and/or project-based lending in other developing countries. ASTAE Annual Status Report #14 21 India Rajasthan Power Sector Restructuring (P038334) This project, which was approved on January 18, 2001, and closed on June 30, 2006, provided support to an ongoing power sector reform process in Rajasthan. It led to higher sec- tor efficiency and financial recovery, and improved the power supply by removing critical bottlenecks from the power trans- mission and distribution system. Key performance indicators were: (a) the establishment of a fully functioning electricity regulatory commission; (b) the satisfactory implementation of the Financial Restructuring Plan, resulting in a financial turn- around of the five successor companies by FY2005; (c) private participation in distribution by having strategic investors in place by end-2002; and (d) investments in the transmission and distribution system, resulting in improved voltage levels, reduced outages and technical losses, and increased energy availability in the service areas affected by investments. Among the indicators relevant to ASTAE, the loan provided financing 2 for 300,000 improved meters for customers and reduced dis- tribution losses by saving 0.447 TWhel. Financing included US$180 million from IBRD and a US$2 million grant from Implementation of Business Plan in FY06 the U.S. Agency for International Development (USAID) to co-finance a DSM technical assistance component, for which ASTAE provided assistance. The outcome of the project is rated moderately satisfactory. Projects Added to the Pipeline in FY06 Six projects were added to the pipeline in FY06, bringing the total to ten projects: • The Regional Sustainable Energy Finance Pacific Project (P098423); • Financing of Two Biomass Projects in Inner Mongolia as part of the CRESP project; • Fiji Electricity Authority (FEA) Renewable Energy Power Project (P099308); • Energy Efficiency Finance Project, Indonesia (P095746); • Renewable Energy and Rural Electricity Access Project, Mongolia (P099321/P084766); and • Energy Efficiency Financing Project, China (P084874). Regional, Sustainable Energy Finance Pacific Project (P098423) In the Pacific Islands, particularly in rural areas, renewable energy (and energy efficiency interventions) offers cheaper options and increased access to modern energy services for households and micro and small enterprises. For households 22 ASTAE Annual Status Report #14 and small and micro enterprises to switch from traditional fuel options (kerosene and dry cell batteries) to renewable energy options (solar PV, pico-hydro, and coconut oil), three impor- tant barriers exist. The relatively high initial investment is a big obstacle. Second, financial institutions in the region have mixed experiences lending to this target group, and they have no experience lending for energy services. Third, the relative- ly simple technical knowledge required to operate and main- tain renewable energy solutions is not readily available. The proposed regional project will remove the above-mentioned three barriers by creating a Trust Fund that would provide for a menu of sustainable financial intermediation solutions, tai- lor-made for target groups in each of the Pacific countries in which the project will operate. The project will also provide technical assistance and training for financial institutions par- ticipating in the project. The renewable energy options to be supported under this project are solar PV, pico-hydro, and locally produced bio fuels (coconut oil) to be used in genera- tor systems. In exceptional circumstances, based on market 2 demand, other solutions might be financed. The project con- Implementation of Business Plan in FY06 sists of four components: (a) sustainable energy finance; (b) creation of a sustainable energy finance fund; (c) local knowl- edge development and mastering of renewable energy and energy efficiency technologies; and (d) incentive- or output- based participant monitoring. The total project cost, based on project activities starting in Fiji, Papua New Guinea, and the Solomon Islands, is estimat- ed to be about US$30 million. GEF is expected to finance US$10 million, with the rest of the funds coming from a vari- ety of sources, including private equity, commercial funds, and other donors, such as the European Union Energy Facility. China, Financing of Two Biomass Projects in Inner Mongolia as Part of the CRESP Project The authorities of the Xin’an Meng, Inner Mongolia, are planning to develop, with the support of the Inner Mongolian government, a biomass-based power generation program to replace small-fired and heavily polluting power plants and sell electricity to the grid. Initial plans call for 10 MW of biomass- fired power generation and cogeneration units of 100 MW to replace all small coal power plants in the short term, and more in the future. This project, financed two of the potential bio- mass plants, follows on an ASTAE-funded activity that provid- ed a scoping study report, including: (a) resource assessment; (b) regional potential for biomass power; (c) regional market evaluation; and (d) project identification, a pre-feasibility study, and other preparation activities. ASTAE Annual Status Report #14 23 Fiji Electricity Authority Renewable Power Development (RDP) Project (P099308) The development objective of this project is to assist the Government of Fiji in meeting the current and future demand for electricity with a continuous and reliable power supply at the lowest possible cost. In particular, the Bank will assist the FEA in diversifying its energy portfolio to reduce its depend- ency on diesel oil. Key indicators include: (a) the energy capacity added to the grid; (b) the amount of actual generation added to the grid (GWh); (c) the resulting reduction in the cost of generating electricity (U.S. dollars per kWh), against a 2006 base price and confirmation by a recent power sector analysis that renewable energy is indeed the least-cost solution; and (d) the reduction in greenhouse gas emissions. Indonesia, Energy Efficiency Finance Project (P095746) 2 Under the Integrated Resource Planning Program, the Indonesian State Electricity Corporation (PLN) started to Implementation of Business Plan in FY06 implement a DSM Program. The DSM program includes the introduction of energy-efficient lamps, energy labeling for household appliances, and some financial incentive schemes for consumers to shift peak demand and/or to improve effi- ciency, as well as energy audit services. It has three subpro- grams, namely, DSM Peduli (DSM for awareness of energy efficiency to household consumers at capacity below 900 VA), DSM PJU (DSM for Public Street Lighting), and DSM Terang (DSM for poor household consumers at capacity up to 450 VA). The implementation of the program went well. A prelim- inary survey, done in 2002, shows that about 78 percent of targeted residential customers under the program have shifted to energy-efficient lamps. PLN has now requested Bank sup- port to focus on improving its energy efficiency in the indus- trial and commercial sector. Mongolia, Renewable Energy and Rural Electricity Access Project (P099321/P084766) This activity stems from an earlier and broader Mongolia proj- ect: Delivery of Infrastructure Services. The development objective of the proposed project is to increase the access to and the reliability of electricity in rural Mongolia, so as to enhance the living standards of rural communities in off-grid soums (villages) and individual herders. This objective will be achieved by: (a) assisting the development of institutions and delivery mechanisms based on a partnership between the public and private sectors for rural electrification; (b) facilitat- 24 ASTAE Annual Status Report #14 ing herders’ investments in solar home systems and small wind turbine systems; and (c) rehabilitating isolated soum center mini- grids by improving their operations and management practices, followed by introducing renewable-diesel hybrid generation sys- tems. The project also will help strengthen the institutional and regulatory capacity at the national level to develop grid-connect- ed and off-grid renewable energy supplies. The key development indicators include: (a) the percentage of the herder population with access to reliable electricity services provided by solar home systems and small wind turbine systems; and (b) the number of off-grid soum centers (and corresponding population) with improved reliability and affordability of elec- tricity services supported by renewable-diesel hybrid systems. ASTAE provided project identification and implementation support to increase access to electricity and improve reliability of electricity service among the herder population and in off-grid soum centers. The project was approved in December 2006. 2 China, Energy Efficiency Financing Project Implementation of Business Plan in FY06 (P084874) This project’s objective is to improve energy efficiency in medi- um- and large-scale Chinese industries by developing lending programs for sustainable, energy efficiency projects in selected banks to support energy-efficiency investments in these indus- tries. The key performance indicators of the project will be energy savings achieved in medium- and large-scale industries, and associated emission reductions of greenhouse gases and other pollutants. Increases in the level of energy-efficiency project lending in participating banks will also be a key output indicator. Five commercial banks and two policy banks have shown strong interest in participating in the project and in becoming financial intermediaries, four of which (two commer- cial banks and two policy banks) have already formally submitted project applications to the government of China. The proposed outcome of the project is to finance a line of credit to the selected domestic banks with an IBRD loan of US$200 million. Under the project, the selected banks will establish their energy-efficiency lending business with the sup- port of the proposed technical assistance (up to US$15 million, including proposed GEF financing), and will utilize their own financial resources in addition to the Bank loan proceeds to increase the impact of the project. A proposed technical assis- tance may also support additional domestic commercial banks that are committed to energy-efficiency financing, but that are not participating in the IBRD on-lending support to further amplify the impact of the proposed project. ASTAE Annual Status Report #14 25 Selected Ongoing Non-lending and Knowledge Management Activities In addition to the support to project and program identifica- tion, development, and implementation, ASTAE provides support to non-lending and knowledge management activities that it believes to be beneficial to meeting its objectives. A description of the most notable activities that took place this year is provided below. China, Jade Electricity: Developing a Green Electricity Scheme for Shanghai The Green Electricity Scheme for Shanghai was started during FY04 as an ASTAE flagship project and was declared “best practice.” Its report describing the project became available in 2006. Green electricity is a product that consumers pay on a voluntary basis, usually at a premium, if part or all of the elec- tricity is produced from renewable resources, such as wind and 2 solar. The program will initially support wind and photovolta- ic electricity only. Green electricity will be available to house- holds, industries, and commercial customers, although initial- Implementation of Business Plan in FY06 ly the focus will be on large non-household consumers. The approach adopted by Shanghai was to start small and to let the scheme develop and grow with increasing demand and increas- ing availability of renewable electricity. This means that the scheme will remain small for some time to come, but that it can become very substantial over time. To qualify as a green electricity user, consumers must buy year- ly blocks of green electricity delivery. The size and number of blocks is set depending on each customer’s total electricity consumption. For example, households must buy blocks of 12 kWh per year with a minimum of 10 blocks, and larger cus- tomers must buy blocks of 6 MWh with a number of blocks depending on their relative sizes. The incremental cost of green electricity has initially been set at Y >0.53/kWh (about 6.5 U.S. cents/kWh in 2005). Shanghai’s annual electricity consumption will soon surpass 100 TWh per year, which can be compared with the current green electricity consumption of 6.54 GWh per year (less than 0.01 percent). This nonetheless covers the entire electricity generated by the existing 3.4 MW Feng Xian wind farm and its 10 kWp grid-connected photo- voltaic system which, until 2005, were the only renewable elec- tricity resources available to the Shanghai municipality. ASTAE took the lead to provide World Bank support, together with the Energy Sector Management Assistance Programme (ESMAP) and later joined by the World Wildlife Fund and the Energy Foundation. Resources were used to provide access to international expertise and experience. International experts 26 ASTAE Annual Status Report #14 provided advice, both hands-on and in the form of project reports on specific issues. A policy study tour to Finland, Germany, and Sweden for senior Shanghai officials provided information on issues and options for designing and intro- ducing a green electricity scheme, and helped them make an informed decision on whether to adopt this approach in Shanghai. Implementation Training in Canada, Finland, and the Netherlands helped with the actual design of the scheme. ASTAE resources were also used to organize the marketing campaign, prepare promotion materials, and establish and operate the Shanghai Green Electricity website. In addition, ASTAE provided overall support through the ASTAE pro- gram-based consultant and a national renewable energy policy expert. Philippines, Wind Power Training Program This program provided local technical, financial, and eco- nomic analysis training for stakeholders in the field of wind power development in the Philippines. The principal recipient 2 was the Philippine National Oil Company — Energy Implementation of Business Plan in FY06 Development Corporation (PNOC-EDC) which has applied for carbon financing from the World Bank for a 40 MW wind farm planned to be established in Burgos, Ilocos Norte, a project that also receives separate support from ASTAE. A group of 15 participants from PNOC-EDC and from other organizations followed a training program designed and deliv- ered by international consultant specialists in the field. The first part of the training of the program provided the funda- mental tools and information for stakeholders who lack basic knowledge in wind power development related to wind turbine techniques, environment assessments, financial analysis, pro- curement and construction issues, and contracting and opera- tion basics. The second part of the training focused on a small- er group of eight players, already involved in wind projects in the Philippines, to improve their capabilities through advanced training modules on technical and financial analysis. China, Shanghai Energy Resource Center The Shanghai Energy Conservation Supervision Center, which also participated in the design of the green electricity scheme described above, will renovate three floors in their building to create a living exhibition on energy improvements that local citizens can make in their houses and offices. ASTAE support- ed the design and plans for the renovation, including an eval- uation of the actual energy savings the proposed modifications will generate. In order to make these energy improvements attractive to the general public, the Shanghai Energy ASTAE Annual Status Report #14 27 Conservation Supervision Center was advised on both energy efficiency measures and on the most efficient communication methods. The center was opened in June 2006 and is attract- ing a large number of visitors everyday. China, Wind Resource Assessment Handbook At the International Conference for Renewable Energy in Bonn, the Chinese government announced a target of 20 GW of wind installed capacity by 2020, and its plan to conduct 30 wind concessions (each of 100 MW), in addition to the two pilot wind concessions that have been done. Wind resource measurement and assessment are important steps for wind concession schemes and for scaling up wind power. Existing Chinese practices for wind measurement and assessment are not yet up to international standards. This ASTAE project provided a translation of the Wind Resource Assessment Handbook written by the U.S. National Renewable Energy Laboratory 2 into Chinese to provide guidelines for international standards on wind resource measurement and assessment in China. Three cases studies were also developed as an illustration using Implementation of Business Plan in FY06 the handbook. This package is now an important sourcebook used by local developers of wind farms in China. China, Building a Resource Efficient Society Conference If the current modes of production and trends in consumption continue, China will face a severe shortage of natural resources, making sustainable development of the economy and society an impossible mission. The government has real- ized this and is determined to transfer the current modality of economic growth and build a resource-efficient society. To achieve this goal, the government has shown strong interest in learning from the successful experiences of both developed and developing countries, and working with international organi- zations and multinational companies to create the right insti- tutional, regulatory, and policy environment for building a resource-efficient society. The objective of the ASTAE activity was to conduct a high-level international conference to facilitate in-depth discussion of the international experiences and practices, and to discuss the policy recommendations for China and the action plans the Chinese government needs to take in order to move toward a resource-efficient society. The main output was the delivery of the conference, with the following outcomes: (a) increased awareness of the Chinese decision makers and general public about the importance and urgency of resource conservation; (b) broadened knowledge on the part of the Chinese decision makers of successful international experiences and practices; 28 ASTAE Annual Status Report #14 (c) a roadmap consisting of principles; (d) the policies and modalities to be applied to build a resource-efficient society in China; and (e) follow-up actions by the government, interna- tional organizations, and business community. Presentations were posted on websites and are available in Chinese language. Outreach and Promotion: ASTAE and REDP Exhibitions at Energy Week 2006 ASTAE and the Renewable Energy Development Project (REDP) had exhibitions at the 2006 edition of Energy Week. The exhibit stands were seen by numerous visitors, including the World Bank President, Paul Wolfowitz, and the Dutch Minister of Development Cooperation, Agnes van Aardenne. The ASTAE stand was organized on the theme of the ASTAE atlas, Sustainable Energy: Less Poverty, More Profits, and offered copies of the atlas, its accompanying video, and a series of ASTAE- funded reports and publications printed for the occasion. The ASTAE stand remains available for future exhibitions. 2 Implementation of Business Plan in FY06 ASTAE Annual Status Report #14 29 3 Progress against ASTAE Business Plan Targets 3 Progress against ASTAE Business Plan Targets Progress against the 2004–06 Business Plan Targets In the ASTAE 2004–06 Business Plan of January 2004, which was revised in March 2005, ASTAE promised its donors to achieve the targets given in Table 2 by December 31, 2006. As was reported in the FY05 annual report, the achievement of the first four targets rests largely on the approval of the three following projects: Vietnam Rural Energy II, the First Phase of the CRESP, and China Heat Reform and Building Energy Table 2: ASTAE 2004–06 Targets Indicator End-2006 target Progress as of end-FY06 1 Provide additional households 1 million New access: 797,500 households with improved energy services Improved services: 600,000 households 2 Install additional renewable 1 GW equivalent Direct: 0.266 GW electricity generating capacity Indirect: 4.9 GW 3 Avoid additional conventional electricity generating 1 GW equivalent Direct: 250 MW equivalent capacity through efficiency improvements Indirect: 3.5 GW equivalent 4 Mitigate CO2 emissions over a 20-year period 156 million tons CO2 Direct: 58.28 million tons CO2 Indirect: 1,240 million tons CO2 5 Successfully complete sustainable energy projects 8 projects 8 projects completed, of which 6 rated satisfactory under implementation and 2 unsatisfactory 6 Approve sustainable energy projects or 10 projects 9 projects approved during the period project components 7 Put in place a strong pipeline of sustainable Not quantified Pipeline end-FY04: 8 projects energy projects Pipeline end-FY05: 7 projects Pipeline end-FY06: 9 projects 8 Develop sustainable energy programs China and Vietnam Sustainable energy programs in China and Vietnam and implement their first phases developed and implementation started 9 Make good progress for developing sustainable 2 countries Programs opening in Fiji, Solomon Islands and in Philippines energy programs in other countries 10 Implement “flagship” projects 2 projects Green Electricity for Shanghai successfully implemented; secondflagship project started and ongoing: Sustainable Finance for Small-Scale Energy Solutions 11 Implement projects in nonenergy sectors 2 projects One project in the water sector in India and one technical assistance project in the water sector in China 30 ASTAE Annual Status Report #14 Efficiency. Counting the indirect benefits in addition to direct benefits is justified by the nature of these programs in that they establish favorable policies and legal and institutional infra- structures to enable other players, such as the private sector, financial institutions or other agencies, and the private sector to develop their own projects that contribute to the targets. These would not take place without such an enabling environ- ment or without the enhanced risk coverage provided by GEF grants or Bank loans. With these caveats, if we take the indirect benefits into account, and for households the improved serv- ices, the targets for the 2004–06 Business Plan have been well achieved. It should be noted that the targets listed below, as well as earli- er business plan targets, are indicative figures based on evalua- tions calculated at the time of appraisal and included in the official Project Appraisal Documents presented to and approved by the Board. The figures listed are therefore forward-looking figures that can only be confirmed after clos- 3 ing of the projects following the due diligence of the Implementation Completion Report. Progress against ASTAE Business Plan Targets Target 1: Households That Received Access to Modern Energy Services The 2004–06 Business Plan target was to provide access for 1 million households. ASTAE achieved 80 percent of this figure, the actual number was 797,500. In addition, more than 600,000 households in Vietnam that had limited access (only 2 to 3 hours of electricity per day) will now be getting more reliable and longer supplies. This means that almost 1.4 mil- lion households received new or improved access — a success- ful, if different, outcome from the original target. Target 2: Facilitating Investment in Renewable Energy Capacity In 2003, ASTAE set 1 GW as a target for investments for the period 2004–06. In direct investments, ASTAE facilitated about 25 percent of that target (266 MW). However, through guarantees provided by Bank loans and GEF grants for new renewable investments by the private sector, ASTAE over- achieved this target by nearly five times. More than 4.9 GW of investments in renewable energy generation capacity are expected to be generated. Target 3: Avoiding Additional Fossil Fuel–Based Electricity Generating Capacity through Energy Savings The target for the reporting period started out as 1 GW. From the start of the reporting period, ASTAE had difficulties in recording the amount of avoided capacity in this unit, since ASTAE Annual Status Report #14 31 most Bank projects focused on the amount of GWh saved. Dividing the amount of GWh by 365days times 24 hours will not always be reliable, because it is not always known what the capacity factor or the operating hours of the electricity-gener- ating units are. Although for consistency reasons, the amount of avoided capacity is reported, this figure needs to be treated with caution. With this in mind, in the period 2004–06 ASTAE facilitated the saving of 250 MW capacity — only 25 percent of the target of 1 GW. However, through private sector investments facilitated by Bank and GEF guarantees or other credit-enhancing mechanisms, more than 3.5 GW capacity was avoided — 3.5 times the target. Target 4: Avoided Greenhouse Gas Emissions The original 2004–06 Business Plan did not have an explicit reduction of CO2 emissions as a target. However, ASTAE received a significant contribution through the Canadian 3 International Development Agency (CIDA) from the Canada Climate Change Development Fund. In recognition of the funds objectives and in dialogue with CIDA officials, ASTAE translat- Progress against ASTAE Business Plan Targets ed the renewable energy and energy efficiency targets into a CO2 emission reduction targets. Like all other agencies, ASTAE also struggled and is still struggling with a uniform methodology for translating the energy units into CO2 emission savings. The combination of the renewable energy and energy efficien- cy targets explained above translated into projected CO2 emis- sions savings of 156 million tons over a 20-year period. This is based on the assumption that the renewable energy will replace energy derived at 40 percent from coal and 60 percent from diesel oil. The data on actual emission savings facilitated is based on the projections, since they are made by Bank staff in their Project Appraisal Documents. Again, through direct Bank-financed investments, ASTAE achieved a little more than a third of the target of 156 million ton (58 million tons CO2 equivalent). However, if the actually facilitated emission reductions are taken into account, ASTAE will have over- achieved its target by nearly eight times with a projected reduc- tion of 1,240 million tons of CO2 emissions. Other Targets Following are some of the other targets that have been achieved: • Target 5: Successful completion of eight sustainable energy projects was achieved in volume; • Targets 6: Nine sustainable energy projects were approved by the end of FY06 and, with another in the summer of 2006, the target of 10 was achieved; 32 ASTAE Annual Status Report #14 • Target 7: A strong pipeline is on track with five more projects entering the pipeline in FY06. The beginning of FY07 has also seen strong growth; • Target 8: Development of sustainable energy programs, and implementation of their first phase in two countries, was achieved; • Target 9: The potential for this target, building programs in two other countries, was achieved with programs opening in Fiji and the Solomon Islands; • Target 10: The target of two flagship projects is well advanced with the Shanghai green electricity scheme finalized, and good progress has been made in the sustainable finance for small-scale energy solutions; and • Target 11: This target proved difficult to undertake, but some synergies were found with the water sector. Overview of the 2007–09 Business Plan 3 In 2006, a new business plan was produced and approved for Progress against ASTAE Business Plan Targets the 2007–09 period. The goal and objectives of scaling up the use of sustainable energy options in Asia to reduce energy poverty and protect the environment remain unchanged, but the strategy has been modi- fied to refocus on operations and implementation support that have been the source of ASTAE prior successes and the set of indicators have been refined (see Table 3). The current five priority areas (detailed in Table 4, next chap- ter) have been restructured to three areas of support: • Development and Implementation Support for Sustainable Energy Projects and Programs in ASTAE Priority Countries in Asia. • Development and Implementation Support for Sustainable Energy Projects and Programs in Other Countries in Asia. • Development and Implementation Support for ASTAE Flagship Activities (such as green electricity and small and medium-size energy service companies). China, India, Indonesia, and Vietnam remain the priority countries, since these are the countries with large sustainable energy potential and populations. In these countries, projects and program identification will be allocated 20 percent of the resources, project/program development 60 percent, and the remaining 20 percent will go to implementation. In non-pri- ority countries, the focus will be on those countries that did not have ASTAE activity in the past. To this end, the approach will continue to include the following: • Early program and project identification work; ASTAE Annual Status Report #14 33 • Quick response to support the urgent needs of task team leaders for project development (identification and prepara- tion assistance) and supervision (troubleshooting); • Project-related capacity building in client countries beyond what can reasonably be expected to be part of normal project preparation; and • Assistance to task team leaders for the mobilization of addi- tional funds. As always, ASTAE funds will not be used to replace the Bank budget for project identification and supervision, but rather will be used only for activities beyond normal project prepara- tion and supervision (incremental costs of investing in renew- able energy and energy efficiency). The standard proposal for- mat for requesting ASTAE assistance is being maintained, which will help evaluate task team leaders’ requests based on the expected contribution in achieving ASTAE targets and pro- 3 gram objectives. Specific ASTAE Targets for the 2007–09 Business Plan Progress against ASTAE Business Plan Targets The indicators and targets for the 2007–09 period have been refined from the previous business plan, as shown in Table 3. In particular, the following have been modified: • Energy savings are Table 3: ASTAE Indicators 2007–09 Indicator Qualification Value addressed with actual ener- 1 Households with new and improved Direct New access 500,000 gy savings in GWh rather access to modern energy services Improved services 500,000 than avoided capacity as was (number of households) Indirect New access 50,000 previously done; Improved services 250,000 2 Facilitate investments and generation Direct Investments 350 • The distinction between in renewable electricity Generation 1,000 direct impact (as result of (capacity in MW and generation in Indirect Investments 3,000 annual GWhel) Generation 10,000 the project) and indirect 3 Facilitate energy savings as a result of Direct Electric 1,000 impact (induced by the efficiency improvements Thermal 3,000 project) is generalized, as (annual thermal savings in GWhth and Indirect Electric 10,000 well as the one between new annual electricity savings in GWhel) Thermal 30,000 4 Avoid CO2 emissions Direct 78 connections (first-time (million tons over 20-year period) Indirect 780 service) and improved serv- 5 Number of countries with projects Total 10 ices with respect to rural supported by ASTAE electrification; and • Since achieving the targets will only be possible by implement- ing projects and programs in the larger countries, indicator 5 has been added to assure that other countries are not left out. Finally, since ASTAE’s impact now extends beyond the World Bank, restricting the indicators to projects and programs approved by the World Bank’s Board no longer covers ASTAE’s full range of activities. Therefore, both projects approved by the World Bank’s Board of Executive Directors and verifi- 34 ASTAE Annual Status Report #14 able contributions by ASTAE to multilateral, bilateral, and indigenous organizations will count toward achieving these indicators. Indicator 1: Households with New and Improved Access to Modern Energy Services For the period 2007–09, expectations were set to provide 500,000 households with new access and 500,000 house- holds with improved services. During the first half of FY07, discussions with task team leaders suggested that ASTAE should also add an indicator for indirect achievements. This would be for private sector investments in access to energy services, which are made possible through guarantees or other credit enhancements provided through GEF grants, IDA grants or credits, or IBRD loans. Indirect numbers for households with access is set at 50,000 for new access and 250,000 for improved services. Indicator 2: Facilitate Investments and Generation in 3 Renewable Electricity Progress against ASTAE Business Plan Targets Although the installed capacity shows a direct relationship with the actual investments made, it is not representative of the amount of energy generated from renewable resources. Small run-of-river hydro installations might only have 30 percent capacity factor, while wind turbines often have a capacity factor ranging between 19 and 25 percent. For the period 2007–09, ASTAE not only has a capacity indicator in MW, but also an actual energy generation indicator with the expected energy generated by the new investments expressed in GWh. Based on expected trends, ASTAE has lowered the indicator for direct investments to 350 MW installed with 1,000 GWh production capacity. However, through credit-enhancing support mecha- nisms, the Bank is expected to facilitate investments in new generating capacity of more than 3 GW installed with 10,000 GWh production capacity. Indicator 3: Facilitate Energy Savings as a Result of Efficiency Improvements For the 2007–09 period, the capacity target has been elimi- nated and replaced with the an energy generation unit: GWh saved either thermal or electric. The targets set are, respective- ly, 1,000 GWh directly and 10,000 GWh indirectly (through private sector investments) for electric GWh; and 1,000 GWh directly and 10,000 GWh indirectly for thermal GWh. Indicator 4: Avoided Greenhouse Gas Emissions As mentioned earlier, the CO2 emissions target was added late in the prior business plan and was calculated as a combination ASTAE Annual Status Report #14 35 of the renewable energy and energy efficiency targets over a 20-year period. The data on actual emission savings facilitated is now based on the projections made by Bank staff in their Project Appraisal Documents. The target for the 2007–09 period is set for a reduction of 78 millions ton of CO2 through direct investments and 10 times this amount: 780 million tons of CO2 emissions through indirect Bank support. Indicator 5: Number of Countries with Projects Supported by ASTAE Meeting the scale-up indicators is only possible by supporting renewable energy, energy efficiency, and rural electrification programs in the larger countries. The indicators can be most effectively met by focusing on only the larger countries. However, this would leave the smaller countries out, which is not desirable from an equity point of view. To avoid this con- flict, an indicator for equitable support to all countries has also 3 been added, requiring that 10 countries receive ASTAE proj- ect support. Progress against ASTAE Business Plan Targets 36 ASTAE Annual Status Report #14 4 Utilization of ASTAE Resources in FY06 4 Utilization of ASTAE Resources in FY06 In FY06, ASTAE funded its activities from two ASTAE Trust Funds, listed below: • Canadian Trust Fund for ASTAE (TF 050558); and • The Netherlands third phase support for ASTAE (Bank- Netherlands Partnership Program (BNPP) TF054670). Total disbursements in FY06 from these Trust Funds were nearly US$2 million (US$1,959,983). Table 4 provides details on the use of resources by activities, and is categorized by the five strategic areas defined in the 2004–06 Business Plan: • Development of sustainable energy programs in ASTAE pri- ority countries; • Development of sustainable energy projects in other coun- tries; • Development of sustainable energy components in non- energy sector projects; • Development of “flagship” projects; and • Outreach and knowledge sharing. In FY06, 59 percent of the ASTAE disbursement went to three of the four priority countries (China, Indonesia, and Vietnam; no activity this fiscal year in India), 24 percent to non-priority countries, and 17 percent to administration, ASTAE staff salaries, the Technical Advisory Group, and simi- lar overhead costs, including publication and outreach (see Annex 5 for a list of papers and reports generated this finan- cial year). ASTAE Annual Status Report #14 37 Bangladesh 1% Vietnam 3% Excluding the administrative costs, the FY06 disbursements can be viewed in Timor Leste terms of recipient country (Figure 2) 9% and of type of activities undertaken Philippines (Figure 3). 7% With regard to disaggregating by coun- Mongolia 7% China try, with 52 percent of disbursement of Laos 52% 1% ASTAE funds (see Figure 2), China remains the main recipient of activities. Cambodia Indonesia 1% 17% This is in large part because of the China orientation of the Canadian Trust Fund, which provided two-thirds of the resource for this financial year (see Box Global 2% 2 for more details). This strong support Figure 2: Country Allocations to China is not surprising as three of the eight projects supported by ASTAE and approved in FY04, FY05 and FY06 4 Carbon Finance 5% were in China. These projects also had, by far, the greatest contribution towards achieving the renewable energy and Utilization of ASTAE Resources in FY06 Economic Work energy efficiency indicators. It is expect- 13% ed that in FY07 strong demand from GEF Grant Indonesia, Vietnam, and the new Pacific Technical Assistance 12% program will provide a good balance. 49% Activity in South Asia was minimal — Knowledge limited to follow-up on a small gender- Products K related project in Bangladesh. 16% The dis-aggregation by type of activity in Figure 3 shows the focus on operational IDA/IBRD Credits 5% activities while also recognizing support to knowledge products or “think Figure 3: Allocations by Type of Activity pieces.” Table 4: Activities Supported by ASTAE in FY06 ASTAE project Type and details of activity FY06 use of funds (US$) I. Develop sustainable energy programs in ASTAE priority countries in Asia (China, India, Indonesia, and Vietnam) China: total disbursed US$832,870 (including activity 20 listed under “flagship” project) 1 Heat Reform and Building Energy TA: Technical Assistance 175,428 Efficiency Program • Development of a methodology for evaluating the cost and benefits of energy efficiency measures; • Preparation of recommendations for energy efficiency designs for demonstration in Tianjin; • Review of national testing, certification and labeling system for energy efficient building materials and products, and dissemination of the study results. 2 Implementation support to the TA: Technical Assistance 161,100 China Renewable Energy Scale-Up • Support North Long Yuan wind power company in the early stages of implementation of Program (CRESP-I) the 100MW wind farm • Validation of wind data and choice of site; • Support to establishment of bid document and assistance in bidding. 3 Biomass resource study in Inner Mongolia TA: Technical Assistance 135,176 • Assess potential for developing a World Bank/GEF project; • Assess availability of biomass resource either as crop residue or energy crop ands technical and feasibility of biomass-fired plants; • Identify project sites, project sponsors and carbon financing. 38 ASTAE Annual Status Report #14 Table 4 (cont.): Activities Supported by ASTAE in FY06 ASTAE project Type and details of activity FY06 use of funds (US$) 4 Building a resource efficient society KP: Knowledge Product 101,954 • High level international conference held in China, targeting government officials and decision makers; • Provided best international practices and experiences; • Established a road map of principles, policies and modalities to build a more efficient development path for China. 5 Shanghai Energy Conservation TA: Technical Assistance 95,046 Supervision Center • Supported the design and plans for the renovation to create a living exhibition on energy improvements. 6 Renewable Scale-Up Program (CRESP) PE: IDA / IBRD Credits 31,565 • Support to the CRESP team. 7 Compiling Wind Resource Assessments KP: Knowledge Product • Compilation and publication of wind assessments in China 31,370 8 Implementation support to Renewable PE: IDA / IBRD Credits 25,974 Energy Development Project (REDP) • Support of the establishment of market competition in the PV market. Setting product standards, for labeling and services. 9 Building Energy Efficiency TA: Technical Assistance 25,689 • Support of the building material markets, regulation, testing and certification. India: No activity Indonesia: total disbursed US$280,713 10 Indonesia Electricity Access and Rural EW: Economic Sector Work 170,560 Transformation project • Analysis of RE situation and recommendations for electrification strategies. “Report Electricity for All” widely distributed; • Study Tour for PNL and Ministry of Energy to view Rural Electrification best practices. 11 PNL Demand Side Management KP: Knowledge Product • Assessment of current ongoing DSM programs; • DSM training courses for PNL staff and industrial customers; 110,153 4 • Industrial energy audit program and monitoring system. Vietnam: total disbursed US$42,927 Utilization of ASTAE Resources in FY06 12 Support for the supervision of GE: GEF Grant 42,927 the Vietnam Rural Energy II • Assistance to the World Bank team to supervise the GEF project. Total for Priority Countries: US$ 1,156,509 II. Develop sustainable energy projects in other countries in Asia 13 Cambodia, implementation support to PE: IDA / IBRD Credits 8,588 Rural Electrification and Transmission • Regulatory capacity building for renewables. 14 Lao PDR, Southern Provinces Rural PE: IDA / IBRD Credits 21,134 Electrification II • General preparation support to World Bank team. 15 Mongolia, support for the preparation of GE: GEF Grant 121,020 Renewable Energy for Rural Access Project • Project identification support to increase access to electricity and improve reliability of electricity service among the herder population and in off-grid soum centers 16 Philippines, support for the supervision of TA: Technical Assistance and GE: GEF Grant 33,576 the Power System Loss Reduction project • Screening of proposed investments by the cooperatives in order to help attract private sector participation, • Provide cooperatives and local authorities capacity building 17 Philippines, PNOC Burgos Wind farm CN: Carbon Finance 81,656 • Support to project preparation, due diligence for carbon finance; • Capacity building of local agencies 18 Timor-Leste, Energy Service Delivery project TA: Technical Assistance 148,991 • Preparation of the Rural Electrification master plan. • Preinvestment study for project preparation Total for other Countries (including activity 19, 21 and 22): US$ 459,765 III. Develop sustainable energy components in nonenergy sector projects in Asia 19 Bangladesh, ENPOGEN II KP: Knowledge Product 10,661 • Poverty and Gender project addressing women’s access to modern energy services • Survey to analyze the structure of demand for energy in women owned enterprise, analyze it and pilot test interventions designed to enhance such access IV. Develop ASTAE “flagship” projects 20 Voluntary Green Electricity Scheme for UE-KP: Knowledge Product 49,207 Shanghai • Support design and implementation green electricity scheme • Support to website, logo creation, and media campaign. V. Outreach and knowledge sharing 21 ASTAE publications KP: Knowledge Product 7,580 • ASTAE Atlas 22 Global Village Energy Program (GVEP) KP: Knowledge Product 26,560 East Asia • Follow-up activities after the 2005 launch. 23 ASTAE Management/administration ASTAE international-hire and local staff; 343,709 • Technical Advisory Group support; • Editing services; and • Administrative support. Grand total US$ 1,959,983 ASTAE Annual Status Report #14 39 5 5 World Bank Resources for ASTAE-Supported Projects World Bank Resources for ASTAE-Supported Projects ASTAE supports alternative energy initiatives at all stages of the project cycle: identification, preparation, implementation, and evaluation. At the identification stage, support can be pro- vided for identification studies or missions, or by supporting energy sector work to assess issues and options with respect to alternative energy. At the Table 5: Resource Utilization, World Bank and Donors, FY92–06 a b project implementation Donors World Bank Total US$ % US$ % US$ % stage, ASTAE can support FY92 108,000 32 226,400 68 334,400 100 troubleshooting of alterna- FY93 827,087 66 419,100 34 1,246,187 100 tive energy components. 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 ASTAE has also supported FY96 2,057,058 56 1,618,924 44 3,675,982 100 project evaluation to draw FY97 1,705,817 59 1,197,128 41 2,902,945 100 out lessons learned and best FY98 1,617,777 59 1,126,683 41 2,744,460 100 practices from completed 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 alternative energy projects or FY01 955,281 46 1,106,035 54 2,061,316 100 project components. The FY02 2,108,541 66 1,106,035 34 3,214,575 100 major part of ASTAE sup- 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 port, however, is devoted to FY05 2,704,306 44 3,450,703 56 6,155,009 100 project preparation through FY06 1,959,983 38 3,169,070 62 5,129,053 100 capacity building and sup- Total 24,382,073 52 22,088,054 48 46,470,127 100 porting studies. a. Includes the Netherlands, Canada International Development Agency (CIDA), U.S. agencies, the The use of donor funds by New Zealand Ministry of Foreign Trade, the German Federal Ministry for Economic Cooperation and Development (BMZ) and the German Corporation for Technical Cooperation (GTZ), the ASTAE totaled US$1.959 European Community, the International Energy Agency, the Danish International Development million in FY06 (see Tables Agency (DANIDA), the Swedish International Development Cooperation Agency (SIDA), the Government of the Swiss Confederation, and in-kind contributions. 4 and 5). The use of World b. Includes World Bank/GEF Annual Discretionary Budget, Office Occupancy, Consultant Trust Bank resources for ASTAE- Funds, Japan Policy and Human Resources Development Fund (PHRD), International Development Forum (IDF), and Project Development Facility (PDF) grants. supported projects, includ- 40 ASTAE Annual Status Report #14 ing GEF Bank Budget, totaled US$3.169 million in FY06 (see Table 5). Total donor funds utilized by ASTAE since FY92 amount to US$24.382 million, an amount which is now close to being matched by the World Bank with a total of to US$22.088 mil- lion over the same period. Table 5 shows the continuation in FY06 of the high levels of spending from the Bank’s own budg- et with an average of US$3.2 million in the last three financial years. This is triple the yearly average amount in the FY92–03 period. The repartition of Box 2: Scaling Up Greenhouse Gas Mitigation in Asia: funding between the Bank Canada International Development Agency (CIDA) TF050558 and ASTAE donors also con- The Canadian Trust Fund was created to support analytical and advisory firms the break in trend since services, capacity building, and training to support the development of FY03, where the World Bank national alternative energy policies and programs, including develop- ment of mechanisms to promote investments, particularly in China. provided in average close to Specifically, the Trust Fund was aimed at funding the following: two-thirds of the funding (62 • Country diagnostic work. percent in FY06). The total • Technical assistance on policy, regulatory, technical, economic, and financial issues related to scaling up alternative energies. budget for alternative energy 5 remains the second highest in • Stakeholder consultations, workshops, and capacity building of client FY06 and double the yearly EWorld Bank Resources for ASTAE-Supported Projects country stakeholders and Bank staff on alternative energy (that is, non- lending technical assistance). average of the FY92–03 peri- • Technical studies related to project identification, such as, but not lim- od, thus confirming the ited to, resource assessment and reconnaissance studies. strong commitment of the • Other activities needed to scale up alternative energy development in client countries. region to the development The Trust Fund has funded 23 activities in 9 countries for a total disburse- and scale-up of alternative ment of US$2,857,225. It has achieved a high level of outputs, both in energies. quantity and quality, and has supported or enabled sizable World Bank One of the resource utiliza- lending related to renewable and energy efficiency investments leading to mitigation of up to 1,292 million tons of greenhouse gas once these tion highlights this year was projects are implemented. It successfully combined this effort with the closure of the Canadian achievement of a major Millennium Development Goal by facilitating Trust Fund, TF050558, on access for over 750,000 households to modern energy sources at the com- pletion of these projects. The level of achievement of the Trust Fund was March 31, 2006. Both the rated Highly Satisfactory in the Implementation Completion Canadian officials and the Memorandum. World Bank task managers The key projects supported by the Trust Fund were described in the pre- were extremely satisfied with vious annual report, but the following ones can be highlighted: the use of the CIDA Trust • China Building Efficiency, which set the stage for the Heat Reform and Building Energy Efficiency Project. Fund, which enabled 23 activ- • The ASTAE video and atlas, which highlighted ASTAE’s achievements in ities in 9 countries. Box 2 renewable energy and energy efficiency. More than 5,000 paper and CD provides further information copies of the atlas was distributed, and it is estimated that the video, from the Implementation shown by BBC and China CCTV, was viewed by more than 240 million people. Completion Memorandum • Green Electricity for Shanghai was an ASTAE flagship activity that pro- relative to this Trust Fund. vided reports, analysis, study tours, and training to the Shanghai Municipality to establish a voluntary green electricity scheme. • Support to the CRESP, which happened both at the preparation and the implementation stage and was aimed at enabling commercial renew- able electricity suppliers to provide energy to the power market effi- ciently, cost-effectively, and on a large scale. ASTAE Annual Status Report #14 41 6 ASTAE Funding Status 6 ASTAE Funding Status In FY06, two Trust Funds provided resources for ASTAE: • Canadian Trust Fund for ASTAE (TF 050558); and • The Netherlands third-phase support for ASTAE (BNPP TF054670). The Canadian Trust Fund for ASTAE was closed on March 31, 2006. All resources from this Trust Fund have been disbursed for a total of US$2,857,225, as described in Box 2. While no new formal commitment was made this financial year, the Netherlands’ commitment for ASTAE II in the amount of US$7.424 millions, funding years 2006–08, was signed into agreement in May 2006. The first tranche of this ASTAE II funding was received in FY07, in July 22, 2006, for an amount of US$2.598 million, thus opening a second Trust Fund avail- able in FY07, TF57088. Securing this latest support from the Netherlands closes the gap of resources for ASTAE from 2006 to 2008 as identified in the 2007–09 Business Plan. Further resources are still required for 2009, and advanced dis- cussions toward a funding commitment have been held with many potential donors throughout the year. These funding negotiations will be continued in FY07, with specific attention to paid to three countries that have shown interest in such future support. The Swedish Agency for International Development has indicated that they would start to contribute to ASTAE with SEK 15 million for a period of three years. For reference, a list of the important ASTAE funding events that have happened since January 2000 is provided in Annex 6. 42 ASTAE Annual Status Report #14 Staffing 7 7 Staffing Ms. Junhui Wu, Sector Manager, East Asia and Pacific Energy and Transport Unit, is the ASTAE Program Manager, and Antonie de Wilde is the ASTAE Coordinator. There were three coterminous field staff members in FY06. Mr. Ximing Peng is located in the World Bank office in Beijing and supports sustainable energy activities in China and Mongolia. Mr. Ky Hong Tran is located in the World Bank office in Vietnam, and covers Vietnam, Lao PDR, and Cambodia. Sustainable energy activities in Indonesia and Timor-Leste are covered by Mr. Eka Zarmen Putra, located in the World Bank office in Indonesia. ASTAE Annual Status Report #14 43 A Annexes Annex 1: A Brief History of ASTAE Annexes ASTAE grew out of the Financing Energy Services for Small- Scale Energy Users (FINESSE) project, initiated by ESMAP and bilateral donors in 1989. Following a joint request from Asian borrowers and donor partners, the Bank acted to imple- ment the FINESSE recommendations by creating the Asia Alternative Energy Unit (ASTAE) as part of the Asia Technical Department in January 1992. ASTAE was originally set up as a three-year pilot program with the objective of “mainstreaming” alternative energy in Asia, which was defined to include energy efficiency and renewable energy. Its original target was to increase the share of alterna- tive energy in Bank power sector lending in Asia to 10 percent of the total. In the initial years, the ASTAE strategy to achieve its objective was opportunistic. ASTAE actively had to market the idea of alternative energy to government agencies in client countries, as well as to Bank task team leaders, country directors, and man- agement. Initially, ASTAE supported those task team leaders with a positive attitude toward alternative energy by carrying out small activities to support projects under preparation wherever there was demand. Activities slowly increased in size and impor- tance, leading to alternative energy components and eventually to stand-alone projects. The energy efficiency activities sup- ported by ASTAE were in general related to DSM and the estab- lishment of EMCs. The renewable energy tasks were performed mainly on electricity projects for connection or reinforcement of grids and rural electrification mostly using PV. 44 ASTAE Annual Status Report #14 The creation of ASTAE coincided with the establishment of the GEF in 1991. Most of the components or stand-alone projects supported by ASTAE received GEF financing. The synergy with the GEF has proved to be one of the success factors for ASTAE. The original objective of ASTAE — to mainstream energy effi- ciency and renewable energy in World Bank operations — has been achieved. The initial target of a 10 percent share of alter- native energy lending in the Asia energy sector was surpassed during FY97–FY2000. With the support of ASTAE, more than US$1 billion of alternative energy projects or project components have been developed, including about US$500 million in World Bank loan and GEF grant. Status Report #10 (April 2003) estimated that the projects supported by ASTAE and approved by the World Bank Board of Executive Directors between FY93 and FY02 provided access to 660,000 house- holds, installed 570 MW of renewable electricity-generating capacity, and avoided 720 MW of conventional electricity-gen- erating capacity as a result of efficiency improvements. The A 2. Seven task managers in East Asia Energy current project portfolio is large and diverse, and 14 task team (EASEG), six task managers in South Asia leaders are now managing energy efficiency and renewable Annexes Energy (SASEI), and one task manager in South Asia Environment (SASES). energy projects or project components.2 Critical to the success of ASTAE was the true partnership between donors and the World Bank. ASTAE provided the resources through Trust Funds that were used to support important activities in a timely and flexible way. Although the ASTAE Trust Funds covered only a small part of project prepa- ration costs, the strategic use of these funds enabled construc- tion of a project pipeline far greater than would have been pos- sible in their absence. Donors to ASTAE have included Canada, Finland, the Netherlands, Switzerland, the United Kingdom, and the United States, of which the Netherlands has been the biggest. In response to the World Summit on Sustainable Development, ASTAE has extended its definition of alternative energy to include technologies addressing energy poverty, in addition to renewable energy and energy efficiency which are generically termed sustainable energy technologies. Including technologies to address energy poverty will enable ASTAE to reach a far greater number of energy-poor households than previously possible. The First Decade of ASTAE (1992–2002) In the first decade, ASTAE succeeded in mainstreaming alter- native energy in the East and South Asia Regions in the World Bank, and developed a large portfolio of alternative energy projects and project components. This conclusion is support- ed by donor, Bank, and external reviews carried out during the last three years. ASTAE Annual Status Report #14 45 With support from ASTAE, the East and South Asia Regions of the Bank have developed 39 stand-alone alternative energy projects or components. Of these, 8 have been closed (4 in East Asia and 4 in South Asia), 15 are under implementation (10 in East Asia and 5 in South Asia), and 16 are under prepa- ration (12 in East Asia and 4 in South Asia).3 The cost of the 3. See ASTAE Status Report #10, April 2003. 23 alternative energy projects or project components under implementation or closed is US$1.4 billion. Alternative ener- gy projects or components in the pipeline are valued at more than US$1 billion. 4. The GEF commitment for alternative ener- At US$55 million, GEF commitments for alternative energy gy projects in FY2000–02 in the East Asia and projects completed and under implementation in the East Asia Pacific Region alone was 51 percent of the total alternative energy commitments for the and Pacific and South Asia Regions are by far the largest for the World Bank and IFC together. World Bank and IFC together.4 ASTAE clearly contributed to increased alternative energy applications to an extent that would not have been possible with A the Bank’s budget alone. It also contributed to tilting the Bank’s lending agenda in Asia toward alternative energy more than might otherwise have occurred, to the point that it has Annexes evolved into one of the main lending themes. New ASTAE Approach (2004–2006) In 2000, ASTAE started to formulate a new strategy for 2000–05. The strategy shifted the focus from mainstreaming within the World Bank to mainstreaming in client countries with the aim of substantially scaling up the impact of alterna- tive energy with respect to the environment and poverty reduc- tion. The new strategy was presented at the ninth donor meet- ing in April 2000, but was not followed through into imple- mentation. The ASTAE Management Review and the World Summit for Sustainable Development, both of which took place in 2002, reactivated the discussion on the strategic direction of ASTAE. The management review was first proposed by the East Asia Energy and Mining Unit (EASEG) following the 2002 meet- ing of the Consultative Group on Energy Trust Funded Programs and initiated after a new Infrastructure Department was established in East Asia and Pacific Region. The objective of the management review was to develop a vision statement and medium-term strategy and business plan, consistent with the Bank’s corporate priorities and budgetary constraints. The main conclusions were that ASTAE still had an important role to play, but that the definition of alternative energy should be extended to include energy poverty. Additionally, the mandate of ASTAE to support only renewable energy had on occasion created an impression of technology push. 46 ASTAE Annual Status Report #14 The World Summit on Sustainable Development, held in Johannesburg in August and September 2002, gave new impe- tus to global action to fight poverty and protect the environ- ment. The agenda for sustainable development was broadened and strengthened to emphasize particularly the linkages between poverty, the environment, and the use of natural resources. Energy was central to the negotiations and out- comes, although in the end, no energy targets were adopted. The important commitments made at the summit related to energy focused on access to energy, renewable energy, energy efficiency, and energy markets. The Consultative Group of the Energy Trust Funded Programs, which met in Berlin in April 2003, suggested that, based on these two developments, a new ASTAE strategy and business plan for the next three years was needed. The new ASTAE strategy supports the implementation in Asia of the WBG commitment made at the International Conference for Renewable Energies in Bonn (June 2004) for at least 20 A percent average growth annually in both our energy efficiency Annexes and renewable energy investments between FY05 and FY09. The commitment applies to the WBG as a whole, including the World Bank (IBRD and IDA), IFC, and MIGA, together with GEF cofinancing in projects executed by the WBG. ASTAE Annual Status Report #14 47 Annexes 48 A Annex 2: Energy Lending Statistics for FY02–06 Lending and GEF support (US$ million) FY 0 2 F Y0 3 FY 0 4 F Y0 5 FY 0 6 World Bank lending 19,519 18,513 20,100 22,307 23,641 East Asia and the Pacific 1,774 2,311 2,613 2,883 3,401 South Asia 3,508 2,919 3,417 4,993 3.797 Asia total 5,282 5,230 6,030 7,876 7,198 ASTAE Annual Status Report #14 Energy lending total 1,975 1,088 966 1,822 3,030 East Asia and the Pacific 315 254 67 359 425 South Asia 505 151 130 84 483 Asia total 820 405 170 443 908 Lending for alternative energy and access to energy services East Asia and the Pacific 17.2 0 26.0 307 96 South Asia 132.9 49.2 30.0 0 0 Asia 150.1 49.2 56.0 307 96 Lending for alternative energy and access (% of energy lending) East Asia and the Pacific 5.5% 0.0% 52.0% 86% 23% South Asia 26.3% 32.6% 25.0% 0% 0% Asia 18.3% 12.1% 32.9% 69% 11% GEF support for alternative energy* East Asia and the Pacific 4.5 31.5 26.8 43 3.7 South Asia 16.0 0.0 0.0 0 0 Asia 20.5 31.5 26.8 43 3.7 Energy investment total (lending + GEF) East Asia and the Pacific 319.5 285.5 76.8 402 428.7 South Asia 521.0 151.0 120.0 84 483 Asia 840.5 436.5 196.8 486 911.7 Alternative energy investment (lending + GEF) East Asia and the Pacific 21.7 31.5 52.8 350 99.7 South Asia 148.9 49.2 30.0 0 0 Asia 170.6 80.7 82.8 350 99.7 Alternative energy investment (% of energy investment) East Asia and the Pacific 6.8% 11.0% 68.8% 87% 23% South Asia 28.6% 32.6% 25.0% 0% 0% Asia 20.3% 18.5% 42.1% 72% 11% * The GEF contribution in this table is limited to the US$3.7 million in support of ASTAE objectives this financial year, irrespective of the total GEF contribution in Asia of US$21.5 million in FY06. Annex 3: ASTAE-Supported Investment Projects—East Asia and the Pacific Cost in million of dollars Total cost Approval alternative (estimated energy (AE) Source of financing Country Projects end date) project cost IBRD/IDA GEF Govt. Private Other Primary project component Closed projects 1 Lao PDR Provincial Grid Integration 10/92–1/00 0.9 0.9 n.a. n.a. n.a. n.a. DSM, institution building 2 Thailand Distribution System and Energy Efficiency 4/93–6/00 59.3 n.a. 8 20.3 n.a. 31 DSM, capacity building 3 Indonesia Second Rural Electrification 2/95–9/00 19.3 13.3 n.a. 6 n.a. n.a. Minihydro, geothermal resource assessment, and TA 4 Vietnam Power Development 2/96–6/00 1.6 0.5 n.a. n.a. n.a. 1.1 Renewable energy capacity building 5 Indonesia Solar Home Systems 1/97–FY04 3.4 0.1 2.3 n.a. 1 n.a. Solar home systems and TA 6 Thailand Metropolitan Distribution Reinforcement 6/97–FY04 4 n.a. n.a. 2.5 n.a. 1.5 DSM management capacity building 7 Lao PDR Southern Provinces Rural Electrification 3/88–FY04 2.2 1 0.7 0.5 n.a. n.a. Solar battery charging and microhydro projects 8 China Passive Solar Heating for Rural Health Clinics 6/01–FY04 1.5 n.a. 0.8 0.8 n.a. n.a. Energy efficient building design 9 China Energy Conservation 3/98–6/06 150.8 63 22 7 54.3 4.5 Energy efficiency and TA Total closed projects 243 78.8 33.8 37.1 55.3 38.1 Projects under implementation 10 Vietnam Transmission, Distribution and Disaster Reconstruction 1/98–FY07 3.3 n.a. n.a. 0.5 n.a. 2.8 DSM capacity building, equipment standards 11 China Renewable Energy Development 6/99–FY07 205.4 13 27 n.a. 165.4 n.a. Wind farms, PV, PV technology improvement 12 Vietnam Rural Energy I 5/00–FY07 2.5 1 n.a. n.a. n.a. 1.5 Renewable energy TA and pilot minihydro 13 China Hebei Urban Environment 6/00–FY07 5 4 n.a. 1 n.a. n.a. Energy efficiency in water utilities 14 Vietnam System Efficiency Improvement, Equitization and Renewables 6/02–FY08 24.5 17.2 4.5 2.8 n.a. n.a. Renewable energy and DSM 15 China Energy Conservation II 10/02–FY10 242.5 n.a. 26 n.a. 216.5 n.a. Energy service company market development 16 Vietnam Demand Side Management 6/03–FY07 18.6 n.a. 5.5 1.2 6.7 5.2 DSM support 17 Philippines Rural Power 12/03–FY10 26.7 10 9 0.2 n.a. 7.5 Renewable energy for rural applications 18 Cambodia Rural Electrification and Transmission 12/03–FY09 32 16 5.8 n.a. n.a. 10.2 Renewable energy for rural applications 19 Philippines Power System Loss Reduction 6/04–FY12 62.3 n.a. 12 0.3 n.a. 50 Rural Electrification 20 Vietnam Rural Energy II 11/04–FY11 329.5 220 5.3 70 n.a. 35 Renewable energy for remote communities 21 China Heat Reform and Building Efficiency 3/05–FY11 52,6 n.a. 18 0.9 33.7 n.a. Energy efficiency 22 China Renewable Energy Scale-Up Program 6/05–FY10 336 87 40.2 142 n.a. 67 Renewable energy and energy efficiency 23 Papua New Guinea Teachers Solar Lighting Project 6/05–FY11 2.9 n.a. 1 0.1 1.7 0.1 Renewable energy (PV) for teachers in rural areas 24 China Renewable Energy Scale-Up Program Phase 1 Part B 1/06–FY11 132.4 86.3 n.a. 30.1 16 n.a. Wind Farm and small hydro 25 Lao PDR Lao PDR Rural Electrification Phase I (SPRE II) 4/06–FY11 36.3 10 3.7 8.2 n.a. 14.3 Renewable energy for rural application Total projects under implementation 1,459.9 464.5 158 257.3 440 193.6 Board Estimated AE WB/GEF/PCF Projects under preparation for the next two fiscal years approval project cost financing Primary project component 26 Mongolia Heating and Building Energy Efficiency FY08 40 8 Energy Savings in District Heating 27 Mongolia Renewable Energy for Rural Access Project FY07 23 7 Renewable Energy and Energy Efficiency 28 Timor Leste Electricity Access for Rural Transformation FY08 10 5 Implementation of Mandated Market Share 29 Philippines Burgos Wind Farm FY07 42 10 Renewable energy partly financed with carbon credits 30 Indonesia Rural Electrification Project FY09 400 200 Rural electrification 31 Pacific Islands The Regional Sustainable Energy Finance Pacific Project FY07 30 10 Financing access to sustainable energy 32 China Financing of two biomass projects in Inner Mongolia FY08 — — Biomass plants 33 Fiji FEA Renewable Energy Power project FY07 48 34 Switch to renewable energy 34 Indonesia Energy Efficiency Finance Project FY09 — — DSM 35 China Energy Efficiency Financing Project FY08 215 215 Private financing of energy efficiency programs Total projects under preparation 808 489 Total projects closed, under implementation, and under preparation 2,510.9 953.57 — Not available. n.a. Not applicable. ASTAE Annual Status Report #14 49 Annexes A Annexes 50 A Annex 4: ASTAE-Supported Investment Projects—South Asia Cost in million of dollars Total cost Approval alternative (estimated energy (AE) Source of financing Country Projects end date) project cost IBRD/IDA GEF Govt. Private Other Primary project component Closed projects 2 India Renewable Resources Development 12/92–6/02 284 115 26 17 72 54 Small hydro, wind farms, photovoltaics, and TA ASTAE Annual Status Report #14 2 Sri Lanka Energy Services Delivery 3/97–5/03 44.6 22.1 5.7 1.9 14.9 Solar home systems, village and microhydro, pilot wind farms, DSM 3 India Orissa State Power Sector Restructuring 5/96–FY04 10 10 n.a. n.a. n.a. n.a. DSM, metering 4 India Andra Pradesh Power Sector Restructuring 2/99–FY04 4.6 n.a. n.a. n.a. n.a. 4.6 Energy efficiency agricultural pump sets 5 India Rajasthan Power Sector Restructuring 1/01–6/06 2 n.a. n.a. n.a. n.a. 2 TA for DSM and energy efficiency for privatized distribution companies Total closed projects 345.3 147.1 31.7 18.9 86.9 60.6 Projects under implementation 6 India Renewable Energy II/Energy Efficiency 6/00–FY07 300 130 5 25 140 Energy efficiency, minihydro, and TA 7 India Uttar Pradesh Water Sector Restructuring 2/02–FY08 40 25 n.a. n.a. n.a. 15 Canal based small hydro 8 Bangladesh Rural Electrification and Renewable Energy Development 6/02–FY08 30.2 16.4 8 5.8 n.a. n.a. Off-grid renewables 9 Sri Lanka Renewable Energy for Rural Economic Development 6/02–FY08 133.7 75 8 0.8 49.9 n.a. Renewable energy in rural areas 10 Nepal Power Development 5/03–FY09 86.8 49.2 n.a. 9.8 24.7 3.1 Mini- and microhydro Total projects under implementation 593.7 298.6 21 41.4 214.6 18.1 Projects under preparation 11 India India Madhya Pradesh Water Sector Restructuring (P073370); 9/04–FY11 3 3 n.a. n.a. n.a. n.a. Energy savings in irrigation Total projects closed, under implementation, and under preparation 939 319.6 n.a. Not applicable. Annex 5: Publications in FY06 The following were papers published by ASTAE or reports prepared through ASTAE-funded ini- tiatives during FY06: Electricity for All. Options for Increasing Access in Indonesia. East Asia Energy and Mining Unit, the World Bank Group. December 2005. Shanghai: Developing a Green Electricity Scheme. Noureddine Berrah, Enno Heijndermans, and Mark D. Crowdis. Final ESMAP and ASTAE Report. September 2006. Energy Efficiency for Water and Wastewater. Hebei Pilot Phase II, June 2003. Consultant report published by ASTAE. March 2006. Assistance to the Government of Indonesia’s Demand-Side Management Program. Consultant report, Econoler International for the World Bank Group. January 2006. Burgos Wind Farm Project. Consultant Technical Review, Philippines, Risø National Laboratory for ASTAE. June 2006. Biomass Energy Development. Scoping Study in Inner Mongolia, China. ASTAE, the World Bank Group. November 2005. Local Production Potential for Segments of Renewable Energy in Fiji. Consultant assessment for ASTAE. March 2006. A Annexes Annex 6: Important ASTAE Funding Events since 2000 Year Month Agency Event Amount (US$) Source 2000 January Netherlands Dutch Partnership Trust Fund Tranche #3 530,000 Neth. Partnership April ASTAE Donors Meeting #9 May U.K. DfID Tranche #1 633,368 U.K. May Netherlands BNPP Tranche #2 1,000,000 B/NPP July Finland Finnish Trust Fund Tranche #2 179,583 Finland October UNDP UNDP Trust Fund Tranche #6 848,806 Neth./UNDP November Finland Finnish Trust Fund Tranche #3 179,583 Finland 2001 April ASTAE Donors Meeting #10 April Netherlands Dutch Partnership Trust Fund (1,250,000) Neth. Partnership August Netherlands Dutch Partnership Trust Fund Tranche #4 1,250,000 Neth. Partnership August U.K. DfID Tranche #2 745,193 U.K. 2002 April ASTAE Donors Meeting #11 April U.K. DfID Tranche #3 469,014 U.K. 2003 January U.K. DfID Tranche #4 117,014 U.K. a March Canada CIDA Climate Change Development Fund Commitment (2,780,000) Canada April Canada CIDA Tranche #1 1.675,141 Canada April ASTAE Donors Meeting #12 May U.K. DfID Tranche #5 378,578 U.K. 2004 March ASTAE Donors Meeting #13 March U.K. DfID Tranche #6 363,351 U.K. March Canada CIDA Tranche #2 563,562 Canada May Netherlands Commitment ASTAE Phase 3 Funding 2004–06 (€3.3) (4,000,000) Netherlands October Canada CIDA Tranche #3 591,871 Canada 2005 January Netherlands Dutch Partnership Trust Fund Phase 3 Tranche #1 1,454,500 BNPP February Canada CIDA Tranche #4 202,544 Canada March ASTAE Donors Meeting #14 May Netherlands Commitment for ASTAE II Funding 2006–08 Netherlands 2006 March ASTAE Donors Meeting #15 May Netherlands BNPP Agreement signed for ASTAE II, 2006–08 (7,424,400)b BNPP July Netherlands BNPP Tranche #1, ASTAE II 2,598,540 BNPP Note: Does not include annual World Bank support. a. To be disbursed in four tranches over a three-year period. b. To be disbursed in six tranches over a three-year period. ASTAE Annual Status Report #14 51