69019 The World Bank Asia Sustainable and Alternative Energy Program ASTAE Annual Status Report 19 Fiscal Year 2011 July 1, 2010 – June 30, 2011 © 2012 The International Bank for Reconstruction and Development/The World Bank Group 1818 H Street NW Washington, D.C. 20433 All rights reserved First printing: April 2012 Cover photo: Windmill Park in Kanyakumari, South India Bigstock; Inside front cover photo: Street cooking in Bangkok, Thailand Bigstock; Inside back cover photo: Construction crew upgrading the road between Lai Chau and Lao Cai towns, northern Vietnam. Photo: © Tran Thi Hoa / World Bank. ASTAE thanks Ashden Awards for the complimentary use of their award photos. To visit the Ashden Awards and learn more go to http://www.ashden.org/. This document is a product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the Board of Executive Directors of the World Bank Group or the governments they represent. Design: Marti Betz Design Contents Acronyms, Abbreviations, and Units of Measure i 3. ASTAE Performance Assessment - Fiscal 2007–11 Extended Business Plan 43 Foreword iii ASTAE Disbursements: Leverage and Activites in 2007–11 Period 43 Executive Summary 1 Status of 2007–11 Performance Indicators 48 ASTAE at a Glance 1 ASTAE-Supported Activities in Fiscal 2011 2 4. Outlook for Fiscal 2012 and Beyond 55 Program Outputs and Impacts in the Fiscal 2007–11 Period 2 Staffing and Funding Status in Fiscal 2011 55 ASTAE’s Business Plan for FY2012–15 3 ASTAE Business Plan for Fiscal 2012 and the Future 55 1. Overview of the ASTAE Program 5 Appendixes 60 Why ASTAE? 5 Appendix 1: ASTAE Countries at a Glance: Region Map ASTAE’s Objectives and Delivery Mechanisms 8 and Pillar-Related Statistics 61 Performance and Targets 13 Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2011 64 2. ASTAE-Supported Activities during Fiscal 2011: Appendix 3: ASTAE Donors, Resource Use, and Expenditure and Country Updates 17 Funding Events 68 ASTAE Disbursements and Activities in Fiscal 2011 17 Appendix 4: ASTAE-Supported World Bank Bangladesh 27 Investment Projects in East Asia and the Pacific 70 India 29 Indonesia 33 Solomon Islands 37 Vietnam 39 ASTAE Publications in Fiscal 2011 40 © Bigstock Boxes, Figures, Tables Boxes Tables Box 1-1: An Illustration of ASTAE’s Contribution to Vietnam 9 Table 2-1: Major Disbursement Categories 17 Box 2-1: Replication of ASTAE’s Support for World 21 Table 2-2: Detail of ASTAE Activities and Disbursements, Bank Investment Activities in Southeast Asian Countries FY 2011 22 Box 2-2: ASTAE’s Contribution to the Electrification Table 3-1: Disbursements by Country during the 2007–11 and Renewable Energy Study 31 Business Plan Period 44 Box 2-3: ASTAE’s Contribution to a Proposed Solomon Islands Table 3-2: Cumulative Renewable Energy Capacity Tina River Hydropower Development Project 37 Added, by Country, FY2007–11 Business Plan Period 48 Table 3-3: Cumulative Electricity Savings, by Country, Figures FY2007–11 49 Figure 1-1: Interlinking Objective, Pillars, and Approaches 10 Table 3-4: Households with Access to Modern Energy Figure 1-2: ASTAE Management Structure 12 Services, by Country, 2007–11 Business Plan Period 50 Figure 1-3: ASTAE Influence and Impacts at Different Levels 13 Table 3-5: CO2 Mitigated, by Country, FY2007–11 Figure 2-1: ASTAE Resource Mobilization, by Origin of Funding 18 Business Plan Period 51 Figure 2-2: FY2011 Disbursements by ASTAE Pillar 19 Table 3-6: Summary of 2007–11 Extended Business Figure 2-3: FY2011 Disbursements by ASTAE Approach 19 Plan Targets, Pledged and Achieved 52 Figure 2-4: FY2011 Disbursements by World Bank Activity 19 Table 4-1: Indicative Operational Budget Allocation 58 Figure 2-5: FY2011 Disbursements by Country 20 Table 4-2: Indicative Operational Budget Allocation by Figure 3-1: Evolution of Annual Disbursements and ASTAE Pillar 58 Comparison with Business Plan Budget 43 Table 4-3: Summary of Pledged Indicators for Business Figure 3-2: Disbursements by Country and Financial Year 45 Plan FY2012–15 59 Figure 3-3: Disbursements by ASTAE Pillar, 2007–11 Appendix Table 1-1: Background Data Providing Context to Business Plan Period 46 ASTAE Pillars 62 Figure 3-4: Renewable-Energy Disbursements, by Country, Appendix Table 2-1: Link between Bank Projects and ASTAE 2007–11 Business Plan Period 46 Indicators, FY2011 64 Figure 3-5: Energy-Efficiency Disbursements, by Country, Appendix Table 3-1: Resource Use, World Bank and Donors, 2007–11 Business Plan Period 47 FY1992–2011 68 Figure 3-6: Access to Modern Energy Services Appendix Table 3-2: Principal ASTAE Funding Events Disbursements, by Country, 2007–11 Business since 2004 69 Plan Period 47 Appendix Table 4-1: ASTAE-Supported World Bank Appendix Figure 1-1: ASTAE Presence in the South Asia Investment Projects 70 and the East Asia and Pacific Regions 61 ASTAE ANNUAL STATUS REPORT #18 Acronyms, Abbreviations, and Units of Measure ASTAE Asia Sustainable and Alternative Energy Program MDTF Multi-donor trust fund BETF Bank-executed trust fund MEMR Ministry of Energy and Mineral Resources BNPP Bank-Netherlands Partnership Program MOIT Ministry of Industry and Transportation CIDA Canada International Development Agency MW Megawatt CO2 Carbon dioxide PBS Palli Bidyuit Samity CRESP China Renewable Energy Scale-Up Program PDR (Lao) People’s Democratic Republic CTF Clean Technology Fund PGE Pertamina Geothermal Energy DFID Department for International Development (UK) PLN Perusahaan Listrik Negara DSM Demand-side management PV Photovoltaic(s) EAP East Asia and Pacific Region RE Rural electrification EIA Energy Information Administration REDP (Vietnam) Renewable Energy Development Program EASIN World Bank East Asia and Pacific Infrastructure Unit RETF Recipient-executed trust fund EE Energy efficiency SAR South Asia Region EIA Energy Information Administration Sida Swedish International Development Agency (U.S. Department of Energy) SIEA Solomon Island Electricity Authority ESMAP Energy Sector Management Assistance Program SKr Swedish krona FY Fiscal year SMEs Small and medium enterprises GDP Gross domestic product t Ton (metric) GE Global Environment Facility Grant TA Technical assistance (WB internal abbreviation) TF Trust fund GEF Global Environment Facility TRHDP Tina River Hydropower Development Project GWh Gigawatt-hour TWh Terawatt-hour IBRD International Bank for Reconstruction and Development W Watt i IDA International Development Association IEA International Energy Agency IS Improved services km Kilometer KP Knowledge products (WB internal abbreviation) kWh Kilowatt-hour © ASTAE China the generous funding provided by the Netherlands and Sweden was success- fully disbursed to benefit 14 Asian client countries during the 2007–11 business plan period. ii © Ashden Awards ASTAE ANNUAL STATUS REPORT #19 Foreword This transition period (2011–12) coincided with new and reemerging trends and interests, such as green growth, energy access, regional and cross-sectoral cooperation, and the increasing demand for ASTAE’s support in South Asia. In fiscal 2011, ASTAE focused on completing the activities We are extremely grateful for the support provided by Foreword under the FY2007–11 business plan and on preparing the the Netherlands and Sweden, which assists ASTAE in its FY2012–15 business plan. This transition period coincided efforts toward poverty reduction through the promotion of with new and reemerging trends and interests, such as sustainable and alternative energy in the Asia and Pacific green growth, energy access, regional and cross-sectoral region. We look forward to continuing cooperation with the iii cooperation, and the increasing demand for ASTAE’s support Netherlands and Sweden and would welcome other donors in South Asia. ASTAE is well positioned to accommodate who wish to join us in pursuing our common objective. these trends and interests in its new business plan. The generous funding provided by the Netherlands and Sweden was successfully disbursed to benefit 14 Asian client countries during the 2007–11 business plan period. N.Vijay Jagannathan Each of the targeted indicators ASTAE pledged to meet ASTAE Program Manager/Sector Manager for the business plan period was surpassed. Testimonials Infrastructure Unit from Task Team Leaders for some of the ASTAE-supported activities are found in this annual report. Sustainable Development Department East Asia and Pacific Region The World Bank Philippines iv ASTAE provided funding for 22 activities in 11 countries, ensuring a diverse range of activities and recipient countries. © istockphoto ASTAE ANNUAL STATUS REPORT #19 Executive Summary ASTAE At A Glance Created in 1992, the Asia Sustainable and Alternative Energy Program (ASTAE) has been instrumental in moving the World Bank East Asia and Pacific Region port- folio toward sustainable energy. Embedded in a regional unit to maximize its leverage and operational impact, the program covers East and South Asia client countries. Executive Summary ASTAE works in close cooperation with the ASTAE’s progress is measured by five impact Energy Sector Management Assistance indicators: 1 Program (ESMAP) and other World Bank n new MW and GWh of renewable energy, Trust Funds. n GWh avoided through energy efficiency, The ASTAE program rests on three pillars: n number of household connections to n renewable energy, improved energy sources, n energy efficiency, and n avoided CO2 emissions, and n access to energy. n number of countries in which activities are conducted. ASTAE funds Bank-executed activities and will soon fund recipient-executed activities. Current donor countries are the Netherlands and Sweden. Past donors include Australia, Canada, Finland, Japan, Switzerland, the United Kingdom, and the United States. ASTAE-Supported Activities in Fiscal with 63 percent of its allocations going to Vietnam, Indonesia, 2011 and China. Vietnam received the most funding—US$857 ,887, or 35 percent of total activity-related disbursements. Fiscal year 2011 was the final year of the FY2007–11 business plan period. Therefore, this report reviews both fiscal 2011 Activities in the SAR continued to increase, occurring in two and the entire business plan period that is now drawing to a countries and accounting for 13 percent of total expenditure. close. Most of the 22 ASTAE-supported activities were winding Regional activities that benefit several countries decreased down in fiscal 2011. At the same time, the South Asia Region’s in fiscal 2011 but remained significant at 9 percent of (SAR’s) renewed interest in ASTAE support was reflected in disbursements. Small countries were not overlooked: Pacific the activities undertaken this year and that will continue to Island countries collectively received 11 percent of ASTAE increase in the next business plan period. funds. Details related to disbursements in fiscal 2011 are provided in chapter 2. Overview of ASTAE Program Outputs and Impacts during The Asia Sustainable and Alternative Energy Program (ASTAE) was created in 1992 as a global partnership program. Its the Fiscal 2007–11 Extended Business mandate—then and now—is to scale up the use of sustainable Plan Period energy options in Asia to reduce energy poverty and protect The ASTAE budget for the 2007–11 business plan period was the environment. Achievement of this objective is built on US$9,898,614, composed of the business plan endowments 2 promoting ASTAE’s three pillars for sustainable development: by the governments of the Netherlands and Sweden noted renewable energy, energy efficiency, and access to energy. earlier, and approximately US$0.6 million carried over from the The program has been instrumental in increasing the share of Netherlands endowment to the previous business plan. By the sustainable energy projects in the World Bank energy portfolio end of fiscal 2011, total donor resources disbursed by ASTAE in Asia; it has been especially successful in the East Asia and had reached 99.8 percent of the US$9.9 million budget. A Pacific Region (EAP). Today, ASTAE operates in client countries detailed analysis of the outputs and impacts achieved during in the EAP , and its engagement in the SAR is increasing. ASTAE the business plan period is provided in chapter 3. is focused on downstream and operations-oriented activities that directly support and enhance World Bank lending projects ASTAE-Supported World Bank Projects related to the three ASTAE pillars. During the five years of the FY07–11 business plan period, ASTAE’s objectives, history, delivery mechanism, indicators, the US$9.9 million donor resources disbursed by ASTAE and targets are described in chapter 1. supported 17 projects that had been presented to the World Bank Board of Executive Directors. The total lending related to Overview of Disbursements in Fiscal 2011 these projects amounted to US$2.2 billion, 51 percent of which was sourced from the International Bank for Reconstruction During fiscal 2011, ASTAE disbursed US$2,603,947 , a 28 and Development (IBRD) and the International Development percent increase from the previous year, which enabled the Association (IDA), and the rest from borrowing countries’ final disbursement of 99.8 percent of the budget available governments, other donors, and the private sector. Therefore, under the fiscal 2007–11 business plan period. In fiscal 2011, every dollar allocated by ASTAE leveraged US$223 in World ASTAE provided funding for 22 activities in 11 countries, Bank–related loans or grants to sustainable energy. ensuring a diverse range of activities and recipient countries. ASTAE disbursed US$2,422,600 toward project Indicators and Progress Compared with implementation in fiscal 2011, or 91 percent of its total Business Plan Targets disbursements; the remainder of the disbursed budget covered ASTAE tracks a set of indicators illustrating its impact in administrative and reporting costs. Disbursements reflected a supporting sustainable energy development. The indicators good balance of activities among all three pillars, with slightly were chosen to convey the predominant trend within each more emphasis on renewable energy and access to energy (44 pillar. For each new World Bank project that receives ASTAE percent and 32 percent of disbursements, respectively). support and is presented to the Board of Executive Directors, In fiscal 2011, ASTAE remained focused on priority countries, the impact indicators are accumulated throughout the business ASTAE ANNUAL STATUS REPORT #19 plan period to produce the aggregated indicators summarized needs in Asia and the Pacific region, but the basics of ASTAE’s below. mandate and its pillars will stay the same. Building on lessons learned, ASTAE has forged a new business plan for FY2012–15, Indicator 1: New capacity and increased generation of the third such business plan since ASTAE’s inception. The renewable electricity. By supporting projects that directly details of the business plan are provided in chapter4. facilitate investments, ASTAE activities led to increased capacity and generation from renewable sources, primarily wind power in China and geothermal power in Indonesia. These Specific Objectives of the Third Phase of ASTAE projects, once implemented, are expected to directly install ASTAE’s specific objective in its early days was to mainstream 1,030 MW of renewable energy that will generate 1,579 GWh alternative energy into the World Bank’s lending and grants in every year—158 percent of the original ASTAE target. the EAP . In ASTAE’s second phase, the objective was to scale up its activities, mainly within individual countries. In this Indicator 2: Electricity savings resulting from efficiency Executive Summary third phase, the specific objective is to promote low-carbon, improvements. Annual savings estimates are calculated green growth, and to increase the supply of and access to based on direct savings through World Bank loans. The ASTAE sustainable energy on a regional basis. ASTAE will devote business plan targets for both direct and indirect annual special attention to supporting the promotion of sustainable electricity savings were exceeded. Direct savings will be 1,586 energy as part of a regionwide system to create collaborative GWh annually—150 percent of target. Most results were impacts and promote increased efficiency. The increasing achieved in China and Vietnam. importance of the regional dimensions of ASTAE’s mission is Indicator 3: Households with access to modern energy visible in the demand for ASTAE’s long-standing experience 3 services. Access to electricity remains the major component and capability. of the indicator, but space heating in Mongolia, as well as Promoting low-carbon, green growth calls for cross-sectoral improved cookstoves and biogas in Cambodia and Timor-Leste, work. Priority activities include ecologically and economically were included. The largest contribution was provided by the sustainable cities (which will require the integration of land rural electricity energy project in Vietnam. use planning, transport, buildings, infrastructure services, and Direct targets have been met, with ASTAE-supported World urban agriculture) along with rural development, for which Bank projects financing improved services to 2 million renewable energy, food security, and water management, households (four times the target of 500,000) and new among others, must be coordinated. access to modern energy services to an additional 648,450 Intra- and interregional activities will address specific issues households (130 percent of the target of 500,000). that are best handled at the supranational level. In addition to Indicator 4: Avoided greenhouse gas emissions. This indicator supporting regional projects as defined under IDA guidelines, estimates the quantity of carbon dioxide (CO2) emissions that ASTAE will encourage South-South cooperation and knowledge would be avoided over 20 years (the conventional lifespan of sharing, and will continue to support the regional, cross-border, projects or equipment) through ASTAE-supported World Bank and common (or similar) challenges faced by countries in the projects. The CO2 targets have been met. The direct-impact region. value is estimated to be 114 million tons of CO2, or 163 percent ASTAE seeks to continue its successful work in the EAP of the original target, and the indirect savings are estimated to concurrently with reengaging in the SAR. Consistent with its be 1,097 million tons of CO2, or 141 percent of the target. downstream-project and program-oriented focus, it will add Indicator 5: Countries benefiting from ASTAE support. This recipient-executed trust fund (RETF) activities to the current indicator ensures that ASTAE resources are used in a balanced Bank-executed trust fund (BETF) activities. Intervention at the manner across all ASTAE countries, providing equal funding national level will remain the core intent, but specific attention opportunities to large countries (China, Indonesia, and Vietnam) will be paid to opportunities to scale country practices up to as well as to smaller countries (Pacific Islands). ASTAE financed regional applicability. At the same time, given the growth and activities in 14 countries in addition to many regional activities. importance of cities and urbanization, ASTAE will also provide support at the subnational level. It will continue to seek cross-sectoral synergies whenever relevant to the ASTAE ASTAE’s Business Plan for FY2012–15 pillars, especially when they fit well with the cross-sectoral ASTAE will continue to evolve to accommodate the changing dimensions of low-carbon, green growth. CAMBODIA the projects ASTAE has supported to date will prevent the emission of 360 million tons of CO2 over their 20-year lifetimes. 4 1 © Ashden Awards ASTAE ANNUAL STATUS REPORT #19 1. Overview of the ASTAE Program 1. Overview of the ASTAE Program In 2010, developing countries in Asia were home to more than 3.4 billion people, close to half the world’s population, and generated close to US$10 trillion in GDP, about 15 percent of the global total.1 Although this population-wealth im- balance remains, the exceptional economic growth Asia recorded during the two past decades lifted millions of people out of poverty and confirmed the continent as one of the world’s major economic engines alongside Europe and North America. As a consequence of this growth, fossil fuel consumption in both among and within countries. The access challenge might 5 many countries in the region has accelerated, leading to sub- seem greatest in Africa, but the sheer size of Asia’s population stantial growth in the carbon dioxide (CO2) emissions that make means that it cannot be ignored. The United Nations estimates up the largest share of greenhouse gases. Yet, hundreds of mil- that more than half of the 1.4 billion people still without access lions of people in the region still lack access to modern energy to electricity live in developing Asia, 400 million of them in services and cannot enjoy the related health, social, and eco- India. Similarly, more than 70 percent of the 2.3 billion people nomic benefits that could improve their quality of life. that still rely on biomass for cooking live in developing Asia. The lack of access to modern energies hinders human and economic development opportunities, puts often unsustainable Why Astae? pressure on local natural resources, and contributes to local According to the U.S. Department of Energy’s Energy and global pollution. The human cost is real: the World Health Information Administration (EIA), which tracks world energy Organization estimates that 600,000 premature deaths statistics, CO2 emissions in Asian developing countries from annually are related to cooking using biomass in East Asia consumption of energy increased 125 percent between 2000 alone. The gender dimension of that sobering fact should and 2009—about four and a half times faster than the world also be noted because cooking-related indoor air pollution average. Although other sources of greenhouse gas emissions disproportionately affects women and children. contribute to the total, it is commonly acknowledged that These access and consumption issues have led the world the use of fossil-fuel-based energy remains by far the largest community to engage in expanding the use of renewable source of emissions. With 170 percent growth in emissions energies while promoting more efficient use of energy in during this period, in 2007 China became the world’s largest general, and to call for universal access to modern energies. source of CO2 emissions, and is now well ahead of the United These issues constitute the three pillars upon which ASTAE States. In 2009, it emitted 7 .7 billion tons—25 percent of builds its development work. the world’s total. Today, although absolute greenhouse gas emissions in Bangladesh, India, Indonesia, Pakistan, Thailand, Brief History, Challenges, Beneficiaries, and and Vietnam are still low, their emissions growth rates are Donors much higher than the world average. ASTAE was established in 1992 by international donors as a The growing consumption of energy is not evenly distributed three-year pilot program with the objective of “mainstreaming” among households across the world. Access to and alternative energy in the World Bank’s lending and technical consumption of modern energies remain very concentrated, assistance operations in the South Asia (SAR) and the East Asia and Pacific (EAP) Regions. 1 Detailed economic and energy indicators for each country in which ASTAE is active are provided in appendix 1. ASTAE grew out of the Financing Energy Services for Small core business from alternative energy to sustainable energy Scale Energy Users Project (FINESSE), initiated in 1989 by the by adding a third pillar—access to modern energy services— Energy Sector Management Assistance Program (ESMAP) and designed to address energy poverty and its impact on the bilateral donors, including the U.S. Department of Energy, the environment. Scaling up also meant departing from project-to- Netherlands Directorate-General for International Cooperation, project activities to take a more programmatic approach at the and the United Nations Development Programme. Following sector and country scale. During this transition, ASTAE focused a joint request from Asian borrowers and donor partners, the primarily on the EAP . Bank acted to implement the FINESSE recommendations by As ASTAE’s funding and scope expanded, measuring its reach creating the Asia Alternative Energy Unit (ASTAE), as part of and impact became more challenging, and a broad set of the Asia Technical Department, in January 1992. indicators was designed to assess progress toward fulfilling ASTAE’s original target was to increase the share of alternative its three pillars. These sustainable energy indicators—access energy in Bank lending to the power sector in Asia to 10 to modern energy services, increased use of renewable percent of total power sector lending. This goal was achieved energy, and improved energy efficiency (described later in during the fiscal 1997–2000 business plan period. ASTAE’s this chapter)—track progress made through ASTAE activities, life was extended by mutual agreement among the Bank both as a direct result of related World Bank loans and as an and donor countries. It was restructured as a program in indirect result of ASTAE-funded technical assistance to country 1998, and was merged with the East Asia Energy and Mining stakeholders. Development Sector Unit, while continuing to provide support 6 to South Asia. Achievements and Beneficiaries Since its inception, ASTAE has directly contributed, through Leverage on Bank Operations its leverage of World Bank–funded projects, to installing about ASTAE’s original task of promoting the use of alternative 1,900 MW of renewable energy—nearly the equivalent of the energy encompassed energy efficiency and renewable combined installed capacity of Cambodia, the Lao People’s energy—ASTAE’s two original pillars. To ensure a strong Democratic Republic (Lao PDR), and Mongolia, or that of operational focus, ASTAE was embedded directly into regional Afghanistan and Nepal combined (EIA 2008). It has helped operations. avoid the generation of about 65 TWh of electricity through energy efficiency, a little less than Vietnam’s total generation ASTAE began its work by providing supplemental funding in 2009. It has also contributed to providing new access to to forward-looking World Bank Task Team Leaders eager to modern energy to more than 2.5 million households in Asia, or undertake small peripheral endeavors to address alternative- about the equivalent of the combined population of Lao PDR energy-related issues encountered during the development and Papua New Guinea (13 million people with an average of their projects. This often occurred through the addition household size of five). of an alternative energy–specific component to a broader energy project. As these ASTAE-funded activities increased These quantifiable achievements have resulted in substantial in number and positively affected regional development mitigation of global greenhouse gas emissions, as well as objectives, renewable-energy and energy-efficiency activities significant reductions in local pollutant emissions that directly eventually became stand-alone projects instead of components and adversely affect the health of the local population. of a project. These projects were often supported by Global Estimates indicate that the projects ASTAE has supported to Environment Facility (GEF) financing. ASTAE’s operational date will prevent the emission of 360 million tons of CO2 over success led its donors to replenish the trust fund at the end their 20-year lifetimes, equivalent to the combined emissions of each business plan period. Alternative energy, a fringe of Thailand and Vietnam in 2009. activity when ASTAE was created, has evolved into one of the Furthermore, during the scale-up phase of the past six years, Bank’s main lending themes, exceeding 40 percent of energy ASTAE’s indirect impact through its influence on country commitments in fiscal 2009 and thereafter. stakeholders’ investment decisions has had an even wider reach. ASTAE is only one of many players at the country Scale-Up and Expansion level, but it has contributed to concerted efforts focusing on In 2002, ASTAE started a scale-up phase. In addition to renewable-energy development that have led to an additional continuing its mission of mainstreaming alternative energy, 17,000 MW installed in the region, and additional potential ASTAE expanded its reach from within the World Bank to the energy savings of up to 50 TWh annually. client countries’ stakeholders themselves, and broadened its ASTAE ANNUAL STATUS REPORT #19 INDIA A FOOD CART IN INDIA USES Solar PV equipment TO ILLUMINATE ITS 1. Overview of the ASTAE Program FARE. 7 A BIOGAS LAMP IN- STALLED n vietnam. VIETNAM’S WASTE AND ODOR PROBLEM IS TURNED INTO A SOURCE OF CLEAN ENERGY THROUGH THE © Anne Wheldon/Ashden Awards USE OF BIODIGESTERS ASTAE’s Objectives and Delivery cooking fuels are almost evenly split between the two regions, Mechanisms showing that the scale and importance of the cooking fuel challenge has not yet been perceived by the authorities. The ASTAE’s objective is to scale up the use of sustainable energy consequences are real, however, from the standpoint of health, options in Asia to protect the environment and reduce energy gender, and the environment. Solid cooking fuels contribute to poverty. Three pillars further define and support this objective. premature deaths, especially among women, increased local pollution, and global warming through the emission of black Three Pillars to Support Sustainable carbon. Moreover, population growth can stretch the demand Development for traditional fuels (wood, charcoal, straw) beyond their regeneration capacities. A Trend of Unsustainable Development Asia accounted for a large percentage of the growth in global Countering the Trend demand for energy during the past two decades, with China’s ASTAE has responded to these human and environmental and India’s shares of that percentage continuously expanding. challenges. Its efforts to champion sustainable development in The International Energy Agency (IEA) expects that the region the Asian energy sector are built on three pillars. will account for about 30 percent of global energy demand growth by 2020. First Pillar: Renewable Energy Supporting energy generation growth by means of renewable- In the power sector, coal, with a share of about 75 percent, energy technologies slows the depletion of natural resources, will likely continue to dominate generation, with oil and gas 8 limits global environmental damage, and can contribute to each accounting for about 10 percent of generation. Although the substitution of domestic resources for imported ones. China sets the pace, other countries, such as Bangladesh, Renewable energy resources include hydroelectric, biomass, India, Indonesia, and Vietnam, have rapidly rising, medium- wind, geothermal, and solar energy. Several countries in term needs for additional generation capacity to sustain their the region have set ambitious targets for renewable-energy economic growth. With the dominance of traditional fossil fuels generation, but much remains to be done to reach these as the primary generation option, and numerous obstacles to targets. positioning renewable-energy sources as credible and reliable base-load substitutes, the power sector is expected to remain Second Pillar: Energy Efficiency a large contributor to greenhouse gas emissions. Other energy Given that most energy today is generated from finite fossil subsectors, such as heating, also contribute substantially to fuels, using less energy to reach the same desired outcome local and global environmental issues. is an effective way to contribute to sustainable development. Despite impressive increases in total installed generation Energy intensity per unit of GDP is high in most Asian capacity in Asia (for example, Vietnam increased its installed countries, indicating that room for efficiency improvement capacity by 6,400 MW [69 percent] between 2003 and is present in all sectors of the economy. Energy-efficiency 2008), a large segment of the population, primarily in rural improvements can be achieved through electricity generation, and remote areas, has not benefited from this growth. The energy demand management, central heating, or individual EAP’s proportion of unelectrified households remains about stove use. Efficiency in the energy sector is the primary 12 percent, a low percentage compared with Africa, but still target of this pillar, but ASTAE also reaches across sectors to sizable considering that it affects 170 million people. In the promote this agenda, having worked in the water, buildings, SAR, overall access to electricity remains lower, with about and transport sectors. 40 percent of households across the region unelectrified and nearly 600 million people affected. Third Pillar: Access to Modern Energy Services Access encompasses new access (for example, connecting a When taking into account heating fuels, whether for cooking or previously unelectrified household) and improved access (for space heating, the numbers are an order of magnitude higher. example, construction of a biogas stove to replace charcoal Substantially more than 2.1 billion people in Asia depend for cooking). Access to modern energy can significantly on polluting solid cooking fuels—primarily wood, charcoal, improve the quality of life for end users, providing benefits coal, and dung. Unlike the imbalance between the EAP and such as light, heat, and power for electrical appliances and the SAR for electricity, the numbers of people using solid tools in a much more efficient and less polluting fashion than ASTAE ANNUAL STATUS REPORT #19 the displaced resources, often at a fraction of the cost. In the and on the dissemination of operational experience. ASTAE past decade some countries, such as China and Vietnam, have also cooperates with other World Bank donor trust funds to made dramatic progress in providing electricity access to their ensure optimal use of donor funding. citizens, but others lag far behind. Additionally, most countries in the region have inadequately tackled the negative impacts Organized to Deliver of traditional domestic heating fuels, whether for cooking ASTAE’s overall strategy is to focus on supporting program or space heating, and have been slow to devise strategies development and project implementation in World Bank 1. Overview of the ASTAE Program to transition households to modern fuels or to improve the operations, that is, “downstream” activities. The emphasis on efficiency and cleanliness of traditional fuels. downstream activities reinforces the effectiveness of ASTAE’s three pillars of sustainable development and provides the most To track the contributions and achievements of ASTAE-funded efficient way to achieve substantive results. Box 1-1 provides activities relative to each pillar, pillar-specific indicators have feedback from a Task Team Leader who used ASTAE funding in been defined (detailed later in this chapter). These indicators Vietnam. help monitor annual progress toward specific targets defined for each business plan period. Over time, ASTAE has expanded its monitoring beyond input-based indicators (linking ASTAE funding to World Bank lending) to include output-based indicators (final impacts delivered through ASTAE’s lending, Box 1-1: measured in megawatts, gigawatt-hours, or number of An Illustration of ASTAE’s connections). 9 Contribution to Vietnam Mode of Operation: Approaches, Support “It is fair to say that without the relatively Mechanisms, and Structure small support from ASTAE, it would not have been possible to develop the Vietnam Close Collaboration with Donors Renewable Energy Development Project The key to ASTAE’s success is its dual partnership model— (REDP) in its current form. ASTAE support partnering with World Bank task teams to undertake the enabled, in particular, good documentation. operational aspects of its activities and partnering with its This will be instrumental in disseminating the donors to determine and fund its strategic goals. The resulting financing approach adopted by REDP ” . synergy allows all parties to explore and seize opportunities to achieve the common goal of realizing ASTAE’s mission. Donor countries, including the Netherlands and Sweden, Canada, Finland, Switzerland, the United Kingdom, and the United States, have over the years endowed ASTAE with block grant funding that advances the agreed-upon themes and targets. In turn, ASTAE provides Task Team Leaders with resources that are then used to support important activities in a timely and flexible way, and ultimately help demonstrate the validity and feasibility of integrating sustainable energy into the Bank’s project portfolio. Because ASTAE management is located in the regional operational unit, decisions about which proposed activities to fully fund reflect the country or regional assistance strategy and the priorities of the country or regional assistance program, while at the same time aligning with donors’ Anh Nguyet Pham, Senior overarching priorities. Energy Specialist, Task Team Leader of projects in Vietnam The ASTAE Trust Fund covers only a small portion of the and Indonesia. She is located costs of project preparation or technical assistance to client in Indonesia. countries. However, the strategic use of these funds enables a far greater impact than otherwise would be possible through its influence on which projects enter the World Bank pipeline Three approaches—innovative investment delivery mechanisms, Innovative Financing Delivery Mechanisms improved policy and regulatory frameworks, and effective ASTAE helps introduce innovative financing delivery knowledge sharing—characterize ASTAE’s implementation of mechanisms. Financing was a major approach in ASTAE’s its overall strategy. ASTAE provides a wide range of support work during its initial years because mechanisms designed mechanisms, such as early program and project identification for conventional energy investments did not fit the needs work, quick response and troubleshooting, project-related of ASTAE’s intervention areas and had to be adapted. As capacity building, and funds mobilization. These support sustainable energy projects became more mainstream, related mechanisms are provided by ASTAE staff and World Bank Task markets matured and projects became more complex and Team Leaders. Their constant interaction forms the backbone sophisticated. ASTAE continues to provide innovative financing of ASTAE’s operational structure. Other important elements delivery mechanisms, but this approach has decreased to of the structure include the Consultative Group on World about 15 percent of allocations in the current business plan. Bank Energy Trust Funds, representing donor countries, and This approach is carried out either by supporting the design, a Technical Advisory Group that evaluates ASTAE activities build-up, and testing of new financing mechanisms from the annually and reports to the donor community represented by start, or by introducing existing mechanisms and tailoring them the Consultative Group. to the specific context of a new host country. ASTAE Approaches Recent examples of improved financing delivery mechanisms Financing for sustainable energy is available through many include developing on-lending guidelines for commercial banks avenues, although the complexities of fund allocation and (for an energy-efficiency project in China), structuring on- 10 lending funds (renewable energy in Vietnam), and transferring recipient designation for each financing option make finding the right channel a challenge. ASTAE seeks to provide practical business models among neighboring countries (energy and operational solutions to obstacles created by lack of efficiency from China to Vietnam). Delivery mechanisms can awareness, institutional blockages, or inadequate delivery also apply to organizational, technical, and business models mechanisms. that can facilitate development and scale-up of an activity (for example, a model production facility for cookstoves in Cambodia). Figure 1-1: Interlinking Objective, Pillars, and Improved Policy and Regulatory Frameworks Approaches ASTAE Ojective: ASTAE supports the development of institutional and To scale up the use of sustainable energy options in Asia to protect the regulatory frameworks. Allocations to this approach have environment and reduce poverty. grown steadily since initiation of the scale-up phase, because 3 Pillars Renewable Energy Access to framework development benefits programmatic schemes Energy Efficiency Energy that have the potential for wider applicability. Today, about 3 Approaches 48 percent of ASTAE funding is linked to institutional and Support Innovative Delivery Mechanisms regulatory framework development that primarily supports projects with impacts that are replicable, scalable upward, and Enhance Policy and Regulatory Frameworks sustainable. ASTAE provides an enabling environment through improved policy, financial, and regulatory frameworks, which Build Capacity and Share Knowledge helps attract capital from international financial institutions, export credit agencies, and the private sector. Recent work includes high-level policy dialogue and advisory support (geothermal energy in Indonesia, access in Timor- Leste), pricing policy and regulation (access in Mongolia), The connections among the ASTAE objective, the three design and implementation of standards (energy efficiency in pillars, and the three approaches are shown in figure 1-1. The Thailand and Vietnam), and assessment of the social impacts of approaches described below apply to the business plan period reform (access to electricity in India). that just concluded (FY2007–11). The new business plan (see chapter 4) redefines these approaches for the future. ASTAE ANNUAL STATUS REPORT #19 Knowledge Sharing access delivery need adjustment or improvement. Households’ ASTAE supports capacity building and knowledge sharing. needs, what they can afford, and their readiness to adapt to These activities are at the core of ASTAE’s mission, innovative technologies may be unknown. ASTAE support to underpinning the success and effectiveness of the previous Task Team Leaders and stakeholders is critical to assessing and two approaches. About 37 percent of ASTAE’s allocations in overcoming these barriers. the current business plan are primarily focused on knowledge 2. Program and Project Development and Implementation 1. Overview of the ASTAE Program sharing, and 60 percent of activities include it as a secondary Work dimension. As a result of its positive outcomes in project and For especially complex or innovative projects and programs, program design, implementation, and replication, ASTAE is able ASTAE can provide planned or unplanned support during to draw upon a pool of expertise and consolidate its knowledge identification and implementation. ASTAE support is provided base to provide just-in-time advice to other groups engaging in only when circumstances require budget or expertise above the same activities across the region. The knowledge-sharing and beyond normal project funding. approach can operate as a stand-alone activity or as an integral part of a project if the need for capacity building or knowledge 3. Quick Response and Troubleshooting sharing goes beyond normal project-related expectations. ASTAE provides just-in-time response to support the urgent Recent knowledge-sharing work includes training seminars needs of Task Team Leaders during project development for officials and policy makers (Bangladesh, Indonesia, (for example, responding to stakeholders’ specific issues or Mongolia, and Thailand); workshops to share technical identifying market segments) and supervision (for example, knowledge between countries (China and Vietnam); knowledge troubleshooting unexpected regulatory barriers). ASTAE’s 11 products, technical guides, methodologies, and atlases made flexibility in taking on such issues on short notice has proved available nationally and internationally; dialog facilitation with indispensable in devising and delivering solutions that prevent the nongovernmental organization community; and donor projects from being halted. coordination. 4. Project-Related Capacity Building ASTAE Support Mechanisms When capacity-building needs go beyond the reasonable ASTAE provides depth of knowledge and flexible, just-in-time expectations of normal project preparation or implementation funding to shape the design of new projects and programs (for example, strengthening capacity of new counterparts for success, to help implement them, or to adapt them to resulting from unexpected political changes), ASTAE can rapidly evolving conditions. ASTAE’s presence in most Asian assist with training programs, workshops, consensus-building countries has helped enable cross-fertilization among different conferences, twinning, study tours, and access to subject operations, thus developing a strategic, programmatic matter advisers. approach to broadening the impacts of investment projects. This cross-cutting position, in turn, has helped create enabling 5. Funds Mobilization environments in which ASTAE shares best practices to improve ASTAE assists Task Team Leaders in mobilizing additional institutional, policy, financial, and regulatory frameworks in funds by helping to clarify funding requirements for a given recipient countries. The seven support mechanisms described sustainable energy project. Careful use of a relatively small below are often provided in conjunction with other partners, amount of ASTAE support can persuade new partners to join, trust funds, and donors, so the activity benefits from the leveraging initial financing to magnify its impacts. comparative advantage of each player. 6. Global Knowledge Interface 1. Early Program and Project Identification Work Early barriers to projects that include sustainable energy Best practices and new business models for alternative energy components are often lack of awareness of an alternative and access deployment are still being established; ASTAE option or technology and lack of understanding of how the helps support the development of this global knowledge base. option can be implemented. Providing support to Task Team Renewable energy is now a feasible technology model, but Leaders or stakeholders to raise awareness is the first step best practices for alternative energy deployment are still in the in addressing this barrier. Such support is provided upstream early stages. Large populations in Asia remain without access or midstream during the project cycle—when existing to electricity, indicating that current business models for expertise is made available through ASTAE’s network of subject matter consultants—and downstream when the new Sector Manager also serves as the ASTAE Program Manager information generated by the project or the ASTAE activity is and coordinates with the South Asia Energy Manager when analyzed, monitored, and packaged for dissemination. ASTAE’s needed. The ASTAE Coordinator is a World Bank staff member monitoring and evaluation of project or program impacts is who provides day-to-day operational and administrative becoming an increasingly important task. supervision of the ASTAE program, and supports Task Team Leaders, acts as a liaison with donors, and coordinates with 7. Impact Monitoring and Evaluation local counterparts. ASTAE’s monitoring and evaluation of project and program ASTAE also employs local staff in the Bank’s partner-country impacts are increasingly necessary to ensure that new offices to gain better insight into country-specific challenges information generated by projects or ASTAE activities is and to support project implementation. A part-time budget analyzed and packaged to be imparted to others. Its long administrator supports the ASTAE Coordinator in monitoring experience in supporting sustainable energy projects has financial information. positioned ASTAE to commission ex post studies and analyses of its past projects to capture and share lessons learned that Functional Structure may be of great value to other countries. The efforts of three types of contributor (dark blue boxes in figure 1-2) complement ASTAE’s work within its structure: ASTAE Structure The ASTAE management structure, shown in figure 1-2, • Donors set the agenda for the specific funding includes both functional and hierarchical interactions. This lines made available to ASTAE, and as members of the Donor 12 structure may change following the conclusion of the 2007–11 Consultative Group, help the ASTAE Program Manager guide extended business plan period. the program. They receive support from the Technical Advisory Group, which includes specialists with expertise in each ASTAE Figure 1-2: ASTAE Management Structure pillar. Depending on specific trust funds’ agreements, donors may provide non-objection to ASTAE activities that require allocations above a predefined ceiling. Donors Consultative ASTAE South Asia Energy • Task Team Leaders are World Bank staff who identify Group Manager Sector Manager (EASIN- East Asia) needs for ASTAE funds to support sustainable energy in their Technical spheres of activity, and submit requests for funding. Each Advisory Group proposal is evaluated on its expected contribution to ASTAE ASTAE objectives, the availability of alternate funding, and the novelty Coordinator or complexity of the project. Once an activity is approved, Task Team Leaders are responsible for its timely, cost-effective, and high-quality delivery. ASTAE funds are used to cover the Task Team Leaders ASTAE incremental costs of developing pillar-related activities that go Consultants beyond the standard preparation and supervision costs covered by World Bank budgets. Project Executing • Consultants are hired by Task Team Leaders, using Consultant Client of of BETF RETF ASTAE-allocated funds, to carry out the necessary tasks for Activities Activities implementation of the ASTAE activity. Consultants may be activity-based—that is, hired for a given duration to undertake BETF: Bank-Executed Trust Fund activity-specific assignments for project-related tasks—or RETF: Recipient-Executed Trust Fund program-based. Program-based consultants often provide more direct support to Task Team Leaders for project preparation and implementation, as well as support for the management Hierarchical Structure of ASTAE-related activities. Consultants can be individuals Because ASTAE is embedded within the World Bank East or firms. Standard Bank procurement rules are applied to all Asia and Pacific Infrastructure Unit (EASIN), the Infrastructure ASTAE-funded activities. ASTAE ANNUAL STATUS REPORT #19 Performance and Targets Figure 1-3: ASTAE Influence and Impacts at ASTAE provides funding allocations to Task Team Leaders who Different Levels have substantiated the nature of the incremental activities they will undertake, the related costs, and the expected impacts. The activities are then carried out, yielding outputs that, whenever possible, are recorded and formatted for 1. Overview of the ASTAE Program knowledge sharing. In addition to tracking these outputs, Country Leverage All Stakeholders the progress toward ASTAE program objectives is measured (Sector Investments, against a set of indicators and targets developed to reflect the Indirect Indicators) objectives outlined under the three ASTAE pillars. The collective contribution of all activities to reaching ASTAE targets is measured annually. World Bank Leverage Tools for Leverage (Project Investments, Direct Indicators) Budget, allocations, and outputs are the elements over which ASTAE ASTAE has direct control and with which it measures its (Allocations, Outputs) administrative effectiveness. The smallest ring of influence and impact in figure 1-3 represents this sphere. 13 Leverage indicators and their related targets are beyond Budget, Allocations, and Outputs ASTAE’s direct control, but within its capacity to influence. In ASTAE’s budget is agreed upon with donors on a three- to ASTAE’s early years, leverage of World Bank operations was four-year basis, normally covering one business plan period. the chief indicator monitored. It was measured by tracking ASTAE’s business plan discusses its goals and focal areas, as the dollar amounts of World Bank loans allocated to ASTAE reviewed in this chapter for the 2007–11 business plan period. pillars. Measuring ASTAE’s leverage of Bank operations today ASTAE then comes to an agreement with its donors on the consists of quantifying actual impacts in addition to lending budget necessary to undertake its defined mission and on amounts. The impact on Bank lending is considered direct, a set of indicators to measure its success in leveraging its because the support to Task Team Leaders in project design funding to influence stakeholders’ commitments to the ASTAE and implementation directly results in improved operations pillars. The budget allocated to ASTAE during the original 2007– and, therefore, impacts. These direct impacts are represented 09 business plan period was US$7 .4 million, complemented by by the middle ring in figure 1-3. additional funding that raised the budget to US$9.9 million and Broader leverage, at the sector level in a country, is far more permitted extension of the business plan period into fiscal 2011. difficult to measure; direct attribution to one activity or player ASTAE allocations are provided to Task Team Leaders based on should be made cautiously. However, once a decision to the merits of their proposals to undertake activities supporting acknowledge ASTAE’s contribution is made, some formal ASTAE’s pillars. Activity duration varies according to the nature assessment of related impacts in the field is necessary to and complexity of the tasks involved, but most are completed gauge whether funds have been used efficiently. The impacts in one or two years. In the 2007–11 extended business and indicators used to inform this assessment are derived plan period, ASTAE allocated an average of US$120,000 to from activities and programs that support enabling legislation, each of 68 activities, with most allocations ranging between decrees, or behavior modification of key stakeholders that US$100,000 and US$250,000. could result in large-scale effects on the three ASTAE pillars. This leverage is represented by the larger ring of influence and ASTAE activities deliver outputs in a variety of formats, impact in figure 1-3. depending on the audience targeted. Outputs vary from stakeholder-specific notes (confidential policy notes, country strategies, or draft standards and labels, for instance), to broad public case making (population awareness and project information). Outputs are discussed at stakeholder meetings, workshops, and conferences, and whenever suitable, are also In the business plan that was just finalized, a target was set published, printed, and widely distributed to a broad audience, for the second subindicator only: by the end of the business including through ASTAE’s Web site. plan period, ASTAE-supported projects would have directly contributed to the annual generation of 1,000 GWh and Indicators and Targets indirectly contributed to the annual generation of 10,000 GWh from renewable sources. Five indicators track the impacts of ASTAE-supported activities on advancing the development of sustainable energy. Three Indicator 2: Electricity savings resulting from efficiency indicators are related specifically to the renewable energy, improvements energy efficiency, and access to modern energy services The contributions of ASTAE activities to saving energy through pillars; two indicators cross all pillars. efficiency improvements are also measured. Energy-efficiency improvements can reduce peak load demand (and thus reduce ASTAE Sustainable Energy Indicators or defer investments) and decrease energy consumption ASTAE pledges to achieve specific targets for these indicators (less fuel used for an equivalent level of services or output by the end of each business plan period. Target achievement is provided). The electricity and heat-generation sectors recorded measured both as a direct result of related World Bank loans, the most energy savings. A transformation coefficient is used and as indirect impacts of World Bank and ASTAE technical to convert all savings, including of heat, into equivalent GWh assistance to stakeholders in client countries. of electricity. Efficiency improvements resulting in avoided Most activities contribute to the indicators’ targets. Estimated capacity can provide relief to a constrained system, but a given 14 values for direct indicators are derived directly from World Bank MW of avoided capacity can result in various levels of energy project information documents, project appraisal documents, savings, depending on the type of fuel used and country and formal ASTAE proposals. Because final figures can only conditions. be known years after the end of a project, initial values are More specifically, this indicator is the estimated annual estimates. Although indirect impacts, too, are difficult to quantity of electricity saved (in GWh) resulting from efficiency attribute, ASTAE identifies published sources (such as project improvements. In the 2007–11 business plan, targets were information documents, project appraisal documents, and set so that ASTAE-supported projects would contribute to midterm reviews) that provide information on the indirect continuing annual savings of 1,000 GWh directly and 10,000 benefits of ASTAE-funded activities. GWh indirectly. Indicator 1: New capacity and increased generation of Indicator 3: Households with access to modern energy renewable electricity services The first indicator measures the contribution of ASTAE The third indicator measures the improvement in quality of activities to the increasing use of renewable energy in client life as households transition from traditional fuels (such as countries. New renewable-energy generation capacity is charcoal, wood, and dung) or inadequate modern fuels (such as expressed both in installed capacity, to reflect the actual kerosene for lighting) to modern, clean, and sustainable energy investments made, and in actual energy generated, expressed sources. When switching fuels is not possible or desirable, in gigawatt-hours (GWh), to reflect use of the installed capacity. the indicator measures the improvement in delivery of energy The relationship between a megawatt of renewable capacity services resulting from the project, such as improved quality installed and the GWh generated (and, therefore, the quantity or reliability of an electricity connection (for example, fewer of fossil fuel not used) differs from one project and one country blackouts and brownouts) or improved efficiency of a given to another because capacity factors and dispatch rules vary activity (for example, using improved stoves to decrease wood from one technology or country to another. consumption). More specifically, this indicator integrates two subindicators: More specifically, this indicator comprises four subindicators: (a) new installed capacity in renewable energy (in megawatts, (1) the number of households receiving new access as a direct all technologies included); and (b) estimated annual quantity of result of a Bank project, electricity generated by the added renewable-energy capacity (in GWh). (2) the number of households receiving improved services as a direct result of a Bank project, ASTAE ANNUAL STATUS REPORT #19 (3) the number of households receiving new access as an operations rather than broader national policy programs are indirect result of a Bank project, and still the norm. Although such projects may not add much quantitatively to the first four indicators, they have large (4) the number of households receiving improved services as impacts on the quality of life of local populations. an indirect result of a Bank project. The requirement for this indicator in the fiscal 2007–11 In the current business plan, targets were set so that ASTAE- business plan was that a minimum of 10 countries receive supported projects would contribute to 1. Overview of the ASTAE Program ASTAE support. (1) 500,000 households receiving new access directly, (2) 500,000 households receiving improved services directly, (3) 50,000 households receiving new access indirectly, and (4) 250,000 households receiving improved services indirectly. Indicator 4: Avoided greenhouse gas emissions The indicator for avoided greenhouse gas emissions spans the previous three pillar-specific indicators. Use of renewable energy and implementation of energy-efficiency measures directly decrease greenhouse gas emissions. Access to modern energy services has a more complex effect. 15 In increasing access, some renewable fuels (wood, for example) may be displaced by fossil fuels, thus increasing emissions, but at the same time increasing caloric efficiency or improved sustainability of resources (less deforestation, for instance). The two effects may offset one another. Because of that uncertainty, the indicator for avoided greenhouse gas emissions is based primarily on the indicators for the first two pillars. Impacts measured by this indicator, as well as the energy-efficiency-related indicator, are often achieved through cross-sector work, such as when ASTAE funds projects in the water or transport sectors. More specifically, this indicator estimates the quantity of CO2 emissions avoided over 20 years (the conventional lifespan of projects or equipment) through renewable-energy generation and energy savings registered under indicators 1 and 2. In the 2007–11 business plan, targets were set so that ASTAE- supported projects would contribute to emissions avoidance over 20 years of 70 million tons of CO2 directly and 780 million tons of CO2 indirectly. Indicator 5: Countries benefiting from ASTAE support An indicator for equitable support was added because the four indicators above can be met most simply by concentrating ASTAE interventions in larger countries. However, ignoring small countries is inequitable and prevents regional cooperation and sustainable development in the region as a whole. In addition, in some countries small-scale project Pakistan 16 2 A woman FEEDS A FUEL EFFI- CIENT STOVE. THeSE STOVES BRING WIDER BENEFITS TO WOMEN BECAUSE THEY ARE COOKING IN A SAFER ENVI- RONMENT AND USING LESS TIME TO GATHER FUEL. © Martin Wright/Ashden Awards ASTAE ANNUAL STATUS REPORT #19 2. ASTAE-Supported Activities during Fiscal 2011: Expenditure and Country Updates 2 ASTAE-Supported Activities during FY2011 During fiscal 2011, ASTAE disbursed US$2,603,947, a 28 percent increase over the previous fiscal year, which enabled the final disbursement of 99.8 percent of the budget available for the 2007–11 business plan period. ASTAE Disbursements and Activities in Fiscal 2011 Table 2-1: Major Disbursement Categories 17 In fiscal year 2011 (July 1, 2010, through June 30, 2011), ASTAE Disbursement category Amount (US$) Percent activities were endowed from two trust funds: Project-assigned disbursements n The Government of the Netherlands Trust Fund for ASTAE Country-specific 2,196,836 84 (TF057088) from the Bank-Netherlands Partnership Program Regional projects, knowledge 225,764 9 sharing (BNPP); and Cross-cutting disbursements n The Swedish International Development Agency (Sida) Reporting 79,305 3 Trust Fund for ASTAE (TF091618). Administration 102,043 4 Fiscal 2011 was a significant year for ASTAE disbursements Total 2,603, 947 100 because the two above-mentioned trust funds were closed and made their final disbursements. In this context, all activities financed by these funds were also closed by June 30, 2011. Overview of Disbursements and Budget Consistent with the agreement with its donors, ASTAE funds Leverage are primarily allocated to support activities, with the remainder used for administrative and reporting purposes (table 2-1). During fiscal 2011, ASTAE disbursed US$2,603,947 , a 28 ASTAE disbursed US$2,422,600 for project implementation percent increase over the previous fiscal year, which enabled in fiscal 2011, or 93 percent of its total disbursements; the the final disbursement of 99.8 percent of the budget available remainder of the budget was used to cover administrative and for the 2007–11 business plan period. reporting costs. The next section explains these disbursements Overview of Disbursements in further detail. In fiscal 2011, ASTAE provided funding for 22 activities in Administrative costs, including ASTAE staff costs and 11 countries. Four activities began and completed short- administrative support provided by World Bank employees, term disbursements this year, and three activities (in India, decreased by more than half compared with fiscal 2009, to Indonesia, and Mongolia) received additional funding for US$102,043. The non-activity costs are well below the ceiling subsequent phases to reinforce the successful impacts of agreed to with ASTAE donors; this unusually low level of activities begun the previous year. Two activities in Cambodia administrative costs is mainly due to the closing of the trust and Lao PDR had to be scaled down or cancelled as a result of funds partway through the fiscal year. the trust funds closing. Reporting costs, which include services of the Technical accounted for a larger portion in fiscal 2007 (70 percent) than Advisory Group, annual reporting, Web site management, and it did in fiscal 2011 (33 percent). There were fewer ongoing dissemination of reports, decreased by half to US$79,305. ASTAE-supported activities in fiscal 2007 , and those under These costs had increased in fiscal 2009 to reflect the way had lower funding. Additionally, in fiscal 2010 and 2011, reorganization of reporting outputs, including streamlining several ASTAE activities linked to knowledge sharing and cross- the production and publication of technical reports for activity fertilization did not receive matching funds from the World outputs deemed to be of general interest. Bank’s project-related budget. Since its inception, ASTAE leverage has resulted in doubling, ASTAE Budget-Related Leverage to nearly US$66 million, the budget for identification, When ASTAE funds activities, the World Bank Group also development, and supervision allocated to sustainable energy contributes from its various budgetary sources to help carry by the World Bank in Asia. This successful leveraging highlights out project tasks. This fund matching demonstrates the budget- the value of donor funding that enables World Bank task teams related leverage that donor funding exercises in influencing to undertake challenging activities for which Bank budgets are World Bank projects. normally very limited, but that are nonetheless necessary for In fiscal 2011, US$2,603,947 disbursed from donor trust identifying and preparing future sustainable energy projects or funds was complemented by US$1,301,789 from the World to troubleshoot problems in ongoing projects. Bank, or 67 percent and 33 percent, respectively, of the total US$3,905,736 allocated to developing sustainable energy as Distribution of Disbursements 18 a result of ASTAE-related projects. The respective World Bank and donor contributions since ASTAE’s inception are provided ASTAE allocated US$2,422,600 to project implementation in appendix 3. in fiscal 2011, or 93 percent of its total disbursements. To provide additional analysis of the use of donor funds, ASTAE’s Figure 2-1: ASTAE Resource Mobilization, by project-related disbursements in fiscal 2011 are broken down Origin of Funding according to ASTAE pillars (figure 2-2), ASTAE approaches (figure 2-3), World Bank classification of activities (figure 2-4), and country (figure 2-5). This section focuses on the 7 project-related portion of disbursements; it does not include World Bank contribution 6 administrative and reporting costs. Donor funding 5 Introductory Note to the Figures MILLIONS US$ 4 In figures 2-2, 2-3, and 2-4, the outer ring represents the 3 amount disbursed; the inner ring represents the number 2 of ASTAE activities related to an intervention pillar, ASTAE 1 approach, or World Bank activity classification. In many instances, an ASTAE activity has several components related to 0 various pillars or approaches, for example, a project promoting FY2002 FY2003 FY2004 FY2005 FY2006 FY2006 FY2008 FY2009 FY2010 FY2011 both renewable energy and access. Hence, the sum of activities may exceed the total number of activities supported It should be noted, as shown in figure 2-1 and detailed by ASTAE. However, in this report, to avoid double counting of in appendix 2, that both the absolute value of resource disbursements, the entire amount associated with the activity mobilization and the ratio of World Bank–to-donor contributions is attributed to the primary pillar or approach. vary over the years. Changes over time in the pattern of donor This somewhat distorts the reality because an ASTAE activity contributions and variation in the number of sustainable with a 60 percent renewable-energy component and a 40 energy projects in the World Bank lending pipeline or under percent access to energy component, for example, registers implementation cause these fluctuations. its funding in figure 2-2 as 100 percent renewable. However, For example, the total ASTAE-related budget remained stable this method still illustrates the overall strong alignment with during the fiscal 2007–11 extended business plan period, at ASTAE’s core goals. In fact, the reality of ASTAE’s relative about US$4 million per year, but World Bank budgetary support disbursements according to pillar (or approach) lies somewhere ASTAE ANNUAL STATUS REPORT #19 between the percentages in funding amounts (in which 100 Figure 2-3: FY2011 Disbursements by ASTAE percent is allocated to a given pillar) and the percentages Approach in number of projects (in which each pillar mentioned in a specified activity is given the same weight). US$580,598 US$1,112,207 24% Framework Development 46% 2 ASTAE-Supported Activities during FY2011 This minor imprecision will be eliminated in the upcoming Delivery Mechanism 4; 14% Capacity Building and Knowledge Sharing business plan period, as new and more precise disbursement Inner ring: Number of activities tracking systems are put in place. 10;4 5% Outer ring: Amounts disbursed Project-Related Allocations, by Pillar 11; 39% ASTAE disbursements in fiscal 2011 by pillar (figure 2-2) reflect the higher allocations to renewable-energy-related activities, with 44 percent of the total, than to those in which access or US$728,306 30% energy efficiency are the primary focus. This reflects ASTAE’s continued commitment to promoting alternative energy. At the same time, allocations to each pillar reinforce each other because activities often cut across pillars. This explains why Project-Related Allocations, by World Bank Line of more activities were connected to increasing access to Activity modern sources of energy—this pillar is often incorporated The shift from project- to program-based activities is as a subcomponent to energy-efficiency or renewable-energy also reflected in the breakdown by World Bank type of 19 activities. activity in figure 2-4, albeit under a different label. Technical assistance supporting framework-development or capacity- Figure 2-2: FY2011 Disbursements by ASTAE building approaches, in line with the overall shift in scaling Pillar up delivery by increasing direct involvement with recipient US$574,599 countries’ stakeholders, now accounts for more than half US$1,060,692 24% Renewable Energy 44% of disbursements. At the same time, pure lending-focused Energy Efficiency Access to Energy activities (preparation and supervision of GEF grants and loan 5; 23% Inner ring: Number of activities projects) account for about 20 percent of disbursements. 10; 45% Outer ring: Amounts disbursed Economic and sector work, as well as knowledge products (one-quarter of disbursements), ensure that the relevant 7; 32% technical and operational knowledge generated by or for specific projects is available to partner countries and sufficiently disseminated to other potential beneficiaries. US$785,820 32% Figure 2-4: FY2011 Disbursements by World Project-Related Allocations, by Approach Bank Activity Disbursements by approach (figure 2-3) shows that capacity building and knowledge sharing are well integrated in ASTAE US$392,910 16% Economic and Sector Work activities, even if often as a secondary approach. The approach US$1,258,040 52% GEF Grants related to framework development continued to receive close US$112,748 Knowledge Product 4; 18% 5% to half of all disbursements. Framework development supports Lending Activities the implementation of sustainable, development-friendly Technical Assistance 2; 9% policies and regulations in partner countries through specific 8; 37% Inner circle: Number of projects projects to promote scaled-up efforts with lasting impacts. 4; 18% Outer circle: Amounts allocated The relative allocation confirms ASTAE’s shift in approach away 4; 18% US$273,590 from a project-based delivery mechanism (core to ASTAE’s 11% early work) toward program-focused framework development US$383,824 to align with the scale-up strategy of the two past business 16% plans. Project-Related Allocations, by Country Given the diversity of countries in the South Asia and the East In fiscal 2011, ASTAE continued its active involvement in Asia and Pacific Regions, a map and an at-a-glance country and priority countries (figure 2-5), with 63 percent of its allocations context summary for each of ASTAE’s pillars are provided in to China, Indonesia, and Vietnam. Vietnam received the most appendix 1, including the following for each country: funding—US$857 ,887 , or 35 percent of total activity-related n Basic information: population and GDP disbursements, followed by Indonesia with US$462,929, or 19 percent. China, India, and the Solomon Islands received similar n Renewable energy: capacity, generation, and market share levels of funding and about 9 percent of total disbursements n Energy efficiency: energy intensity in GDP and in power each. The disbursements to Vietnam supported six ongoing generation, measured by CO2 emissions activities, to China three activities, and to Indonesia two n Access: population electrified in number and rate activities. n Greenhouse gas emissions: annual CO2 emissions and Activities in the South Asia Region continued to increase, ranking. occurring in two countries and reaching 13 percent of total expenditure. Activities that benefit several countries in the region, but that are not country-specific, decreased in fiscal 2011 but remained significant with 9 percent of disbursements. (The way in which ASTAE-supported activities are shared and replicated within the region is illustrated by the example in box 20 2-1.) Small countries were not overlooked, with Pacific Island countries collectively receiving 11 percent of ASTAE funds. Figure 2-5: FY2011, Disbursement by Country India Solomon US$229,538 Islands 10% US$198,097 8% China Other Bangladesh US$78,307; 3% US$219,207 US$229,187 9% 10% Lao PDR US$21,066; 1% Regional Projects, Knowledge- Sharing Activities Timor-Leste US$68,547; 3% US$225,764 Cambodia US$11,268: 1% 9% Mongolia US$50,000; 2% Vietnam Indonesia US$857,877 US$462,929 35% 19% ASTAE ANNUAL STATUS REPORT #19 Box 2-1: Replication of ASTAE’s Support for World Bank Investment Activities in 2 ASTAE-Supported Activities during FY2011 Southeast Asian Countries “Over the past years, ASTAE financed the following activities: • promotion of commercialization of efficient cookstoves in Cambodia, • promotion of biodigesters for power generation in Cambodia, • review of lessons and experiences in rural electrification in Lao PDR, and • sharing of knowledge and experience gained through the successful Bank-supported household energy program in China with Lao PDR and Cambodia. 21 “ASTAE provided funding for critical studies, knowledge sharing, Jie Tang and consensus building with the governments and among all major Senior Energy Specialist. stakeholders in Cambodia and Lao PDR on (i) addressing access to Task Team Leader of projects electricity and household energy in a sustainable way and (ii) promoting in Lao PDR, Cambodia, and the use of renewable energy for rural electrification. Vietnam “The cookstoves and biodigester programs have great potential to be scaled up in Cambodia and to be introduced into neighboring countries like Lao PDR. “Similar to rural electrification in Vietnam, the lessons and experiences of rural electrification in Lao PDR have been widely shared within the Bank and have the potential to benefit other developing countries across the world in their rural electrification processes. “With ASTAE support, the knowledge and experiences gained in China for household energy were shared with Lao PDR and Cambodia, holding the promise of significant impacts on the household energy programs in these ” two IDA-eligible countries. Table 2-2 provides an overview of the 22 ASTAE activities for which funds were disbursed in fiscal 2011, as well as a short description of the support mechanisms provided by ASTAE for these activities. A summary of disbursement amounts throughout the 2007–11 extended business plan period is also provided for reference. Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2011 ASTAE Activity Type and details of activity Total disbursements (US$) FY 2011 Period FY 2007-–11* Period Total 2,603,947 9,879,560 Bangladesh 78,307 78,307 1 Rural Electrification PE: IBRD-IDA project 78,307 78,307 Reform Action Plan • Provide technical support to the government to develop a time- bound action plan to meet the target of universal access by 2021 Cambodia 11,268 195,003 2 Biodigester Private Sector TA: Technical Assistance 11,268 108,090 Development Phases I • Define a service-delivery model and licensing procedures for private and II biodigester construction companies, support the emergence of such companies, and create a trade association • Under Phase II, scale up the number of companies formed and ensure their long-term viability 22 China 219,207 1,059,842 3 China Renewable PE: IBRD-IDA project 58,945 58,945 Energy Scale-up Program • Provide support to project implementation unit (CRESP-II) • Provide support to Shanghai low carbon city 4 Urban Transport Climate ESW: Economic and Sector Work 112,198 240,468 Change Strategy • Review energy and carbon footprint of urban transport • Disseminate best practices for energy-efficiency and energy-security concerns in the urban transport sector 5 Energy-Efficiency Financ- TA: Technical Assistance 46,062 95,122 ing Promotion • Draft an operations manual for IBRD loan on-lending to Chinese banks for energy-efficiency projects • Determine eligibility of subprojects for financing, preparation pro- cedures and appraisal, implementation arrangements, and general terms of subloans • Develop a draft monitoring and reporting system Fiji - 111,472 India 229,538 285,417 6 Energy Efficiency in Small GE: GEF grant 34,441 90,320 and Medium Enterprises • Raise awareness and build capacity in energy efficiency in SMEs (SMEs) • Increase capacity of local bank branches to iden- tify and appraise energy-efficiency projects 7 Electrification and Re- TA: Technical Assistance 195,097 195,097 newable Energy Study • Skill gap analysis in renewable energy in the power sector • Guidance note for a national action plan on rural feeder segrega- tion Indonesia 462,929 1,042,355 8 Geothermal Power Sup- TA: Technical Assistance 415,301 916,876 port Program • Assist in review, design, and consensus building for policy reforms in the geothermal sector • Enhance government’s capacity to integrate Clean Development Mechanism in geothermal development • Assist in identifying and preparing geothermal projects to be financed by World Bank loan ASTAE ANNUAL STATUS REPORT #19 Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2011 2 ASTAE-Supported Activities during FY2011 ASTAE Activity Type and details of activity Total disbursements (US$) FY 2011 Period FY 2007-–11* Period Total 2,603,947 9,879,560 9 Thousand Islands Solar PE: IBRD-IDA project 47,629 47,629 Photovoltaic (PV) • Rapid assessment of utility’s capaity to implment the 1,000 islands electrification program • Inform utility of level of data information required to request World Bank support Lao PDR 21,066 77,518 10 Lessons from the Lao KP: Knowledge Product 21,066 77,518 Rural Electrification • Identify factors that contributed to electrification successes Program • Advise government on next steps toward universal access Mongolia 50,000 743,916 11 Energy Sector Project PE: IBRD-IDA project 50,000 297,737 • Efficiency improvement in the electricity distribution system • Greater awareness and capacity among stakeholders 23 Pacific Islands - 125,925 Philippines - 98,380 Solomon Islands 198,097 577,187 12 Tina River Hydropower TA: Technical Assistance 198,097 249,634 Development Project • Provide technical and methodological support to help the Solomon Islands government prepare a proposed hydropower development project Thailand - 321,441 Timor-Leste 68,547 521,655 13 Energy Service Deliv- TA: Technical Assistance 54,435 207,185 ery Project • Preparation of the Rural Electrification Master Plan • Pre-investment study for project preparation 14 Rural Energy Access TA: Technical Assistance 14,112 186,518 and Efficiency • Help prepare an integrated pre-investment package with - Solar PV dissemination options - Candidate micro-hydro sites - Improved stoves models Tonga - 149,717 Vietnam 857,877 1,615,408 15 Documentary on Rural KP: Knowledge Product 11,365 163,752 Electrification • Documentary on rural electrification in Vietnam prepared for television broadcasting 16 Rural Electrification TA: Technical Assistance 49,521 149,799 Impact Studies • Analysis of the impact of rural electrification using data from two field surveys conducted in 2002 and 2005 • Improvement of implementation design of rural electrification projects 17 Renewable Energy TA: Technical Assistance 193,252 609,501 Development Project • Preparation and supervision of the Vietnam Renewable Energy Development Project Table 2-2: Detail of ASTAE Activities and Disbursements, FY 2011 ASTAE Activity Type and details of activity Total disbursements (US$) FY 2011 Period FY 2007–11* Period Total 2,603,947 9,879,560 Vietnam 857,877 1,615,408 18 Support for the Vietnam En- TA: Technical Assistance 363,331 414,915 ergy Efficiency Demand Side • Provide advisory assistance and capacity building to Ministry Management program of Industry • Conduct workshops on business collaboration between Vietnamese and international energy supply companies (ESCOs) • Identify opportunities for expansion of commercial energy- efficiency business 19 Rural Distribution Project PE: IBRD-IDA project 227,251 227,251 • Support the preparation of plans for completing govern- ment of Vietnam’s program for universal electrification • Build capacity of the power companies to act as independent participants in the power market 20 System Efficiency Improve- TA: Technical Assistance 13,157 16,043 24 ment, Equitization and • Policy and regulatory work to enable small hydro investments Renewables Regional Projects, Outreach and Knowledge Sharing 225,764 975,809 21 Regional: Carbon Emission KP: Knowledge Product 166,630 275,015 Mitigation Toolkit for High- • Analyze activities associated with design, construction, and way Construction rehabilitation of highway projects and identify those sensitive to energy consumption and carbon emission • Estimate carbon footprint and provide mitigation options 22 Regional: East Asia Pacific KP: Knowledge Product 59,647 209,616 Flagship Study • Analysis of regional potential of renewable energy sources and energy-efficiency improvements • Review of existing policies, identification of gaps • Recommendations for regional policy development Administration and Reporting Activities 181,348 1,900,208 Reporting Activities • Technical Advisory Group support 79,305 586,378 • Printing and editing services Administration • ASTAE international hires and local staff 102,043 1,313,830 • Administrative and development support * The table lists only activities with significant disbursements in fiscal 2011. Therefore, the total in some countries may be higher than the sum of all projects listed. ASTAE ANNUAL STATUS REPORT #19 TIMOR LESTE 2 ASTAE-Supported Activities during FY2011 25 © Barbara Ratusznik/World Bank BANGLADESH 26 The delivery of access to electricity based on the rural cooperative model has been a success in Bangladesh. © Sarah Butler-Sloss/Ashden Awards ASTAE ANNUAL STATUS REPORT #19 The following sections highlight ASTAE-supported activities that are either new or that recorded significant disbursements in fiscal 2011, as shown in table 2-2. Other activities in table 2-2 were in the final stages of implementation in fiscal 2 ASTAE-Supported Activities during FY2011 2011 and have been reviewed in previous ASTAE annual reports. Bangladesh: Strengthening Rural The consultation process culminated in a workshop attended Electrification Service Delivery by top decision makers and other stakeholders at which it was widely acknowledged that the RE program needed major The delivery of access to electricity based on the rural changes to meet the problems and challenges. However, it was cooperative model has been a success in Bangladesh. The also apparent that the parties disagreed about the course of Rural Electrification Board (REB) and its rural cooperatives, reform. To reach a consensus on the specific action plan for RE called Palli Bidyuit Samity (PBSs), have connected some reform, it was decided that a high-level task force should be 8.5 million customers to the grid. In all efficiency measures 27 formed. (system losses, collection efficiency, and so forth), the PBSs record much better performance than do the state-owned The ASTAE-financed activities supported the government task urban utilities. Still, only 30 percent of the population in rural force with technical expertise to develop a time-bound action areas has access to electricity. If the government’s vision of plan to set the strategic direction so the RE program will universal access by 2021 is to be achieved, the REB and the meet the challenges of Vision 2021. Global best practices in PBSs need to be revamped. organizational structure for rural service delivery were reviewed and their applicability determined in the country context. Despite relatively good performance, over the years, the REB’s Recommendations were made for strengthening human organizational structure has deteriorated. Delays in recruitment resources practices and policies to attract and retain qualified of required manpower, interference in day-to-day management, skills in the RE program. lack of training, and circumvention of the master plan for line construction are just some examples of the organizational The scope of ASTAE’s support was originally conceived to inefficiencies. To meet the challenges of Vision 2021, the comprise technical assistance to the ministerial task force. organizational structure of the REB needs to be reformed and However, support was extended to cover the consultations that corresponding adjustments need to be made in its relationship took place before forming the ministerial task force. with the PBSs. The outcomes included helping to shape the government’s Some of the changes have already begun. An organizational views about the problems and solutions to strengthening effectiveness study was initiated with Bank support RE system delivery in Bangladesh. There is now a growing that identified the problems and challenges in the rural consensus among the policy makers about the problems and electrification (RE) program in Bangladesh. As a follow-up to the need to take corrective actions to address the weaknesses the study, the Bank initiated a unique process of stakeholder in Bangladesh’s RE program. Although an action plan is not yet consultation in which an advisory team had a dialogue with ready, the realization by the policy makers of the urgency of the REB and PBS management and staff and other stakeholders problem has provided impetus for finding the right approach to reach agreement on the actions to be taken for addressing for strengthening RE service delivery. The Bank is continuing the problems and challenges in the RE program. Outdated its dialogue with the government on the appropriate steps to recruitment policies and inadequate incentive packages be taken. The ASTAE activities helped shape the Bank’s policy contributed to a shortage of skilled staff for the program. dialogue with the government. Future World Bank support to Inadequate tariff adjustments resulted in deterioration in the the sector has been made contingent upon a credible and time- financial position of the rural cooperatives. bound action plan for strengthening RE service delivery. india 28 © Anne Wheldon/ Ashden Awards ASTAE ANNUAL STATUS REPORT #19 India: Rural Feeder Separation Study project. Most important, information, including socioeconomic (part of the Electrification and data, needs to be tracked similarly to the way it was done in the ASTAE-supported study. A number of technical issues Renewable Energy Study) were also highlighted, such as overloading and burning out In India today, electricity tariffs for farmers recoup less than 10 2 ASTAE-Supported Activities during FY2011 distribution transformers on the nonfarmer feeders attributable percent of the cost of supply. Power shortages in India have a to very rapid load growth, and the proper approach to significant impact on poor rural consumers, who are invariably measuring socioeconomic impacts. linked with agricultural consumers. Unmetered agricultural Consistent with ASTAE’s objectives, the Rural Feeder connections limit monitoring of the agriculture subsidy and Separation Study focused on rural electrification and how to impede correct estimation of distribution losses. Those who share limited power between paying and nonpaying loads. The gain the most from this subsidy policy are large farmers, Rural Feeder Separation report is turning out to be a crucial whereas most small and marginal farmers lack access to input to the dialogue between the Bank and the Ministry of electricity. Power. Rural electrification in India is being reformed in a number of The opportunity for replicability of this study is very high, states. Farmers pay almost nothing for power, so utilities limit particularly for countries with a federal decision-making their supply to eight hours a day. Therefore, access by nonfarm structure like India’s. rural consumers on so-called mixed feeders, which supply both farm and nonfarm customers, is constrained to the same eight hours a day, limiting their development progress. A number of 29 states have undertaken feeder segregation, whereby farmers are supplied eight hours of “free power, ” and nonfarmers, on a separate feeder, are supplied for 24 hours—but expected to pay full published tariffs. At the request of India’s Ministry of Power, the World Bank undertook a study of the experiences in rural feeder segregation with the objective of generalizing results for implementation of the schemes more broadly. The study focused on (i) analyzing differences in approach to rural feeder segregation across states; (ii) estimating the financial viability of the investment; (iii) evaluating socioeconomic benefits in rural areas through a primary survey; and (iv) developing a guidance note for a national action plan on rural feeder segregation. The study was mainly based on commercial and operational data collection and a desk review of experiences. Support from ASTAE was requested to conduct a consumer survey alongside the rural feeder separation study to confirm its findings and to get a qualitative and quantitative perspective on the experiences of the rural population. The ASTAE-funded activities consisted of a utility-level study in three states in India and a parallel study to assess the socioeconomic development impact on communities that had experience with feeder segregation. The study results have shown that institutional support is crucial to the success of a feeder separation study. No baseline information had been gathered in any of the seven states. No separate department or unit had been created within the distribution company to manage the feeder separation India: Renewable Energy Skill Gaps Study (part of the Electrification and Renewable Energy Study) The government of India has proposed to add more than 100 GW of additional generation capacity in the upcoming 12th five- year plan for 2012–17 , and to significantly increase the share of renewable energy relative to current levels. However, the trained manpower to make this happen is not in place, which is an important cross-sectoral issue that must be addressed if the targets are to be met. The objective of ASTAE support was to finance the skill gaps study to introduce an important missing link into the World Bank’s policy dialogue with the Ministry of Power. The components of the skill gaps study comprised identification of characteristics for leading, lagging, and average states; and selecting a representative state from each category. An analysis of manpower shortages in all aspects 30 of the electricity value chain, especially renewable energy, was conducted. Data were especially difficult to obtain for renewable energy training programs, rates of graduation, and rates of hiring. However, documenting the numerous gaps in the government’s manpower strategy to underpin the forthcoming ambitious growth targets for the sector was useful for launching a dialogue. The study results showed that there are currently National © Anne Wheldon/ Ashden Awards Training Institutes in place, training people to be welders, electricians, crane operators, pipe-fitters, and other blue collar positions in the electricity value chain. However, the need for highly skilled white collar workers and work-streams, such as solar energy technology specialists, wind energy technology specialists, and others, are not being addressed. Several private training institutes have been accredited, and they are looking for public-private partnership opportunities to offset the cost of importing faculty members who will be needed to ” “train the trainers. Through its focus on institutional strengthening in the power sector, and on high-quality and cost-effective outcomes—which cannot be achieved unless adequate numbers of trained people are in place—the skill gaps study meshed well with ASTAE’s pillars. Box 2-2 presents the Task Team Leader’s comments on the value of ASTAE support to the Electrification and Renewable Energy Study, including the India Rural Feeder Separation Study and the Renewable Energy Skill Gaps Study ASTAE ANNUAL STATUS REPORT #19 Box 2-2: ASTAE’s Contribution to the Electrification and Renewable Energy Study 2 ASTAE-Supported Activities during FY2011 “The South Asia Energy Unit of the World Bank (SASDE) has been implementing a program known as the South Asia Region’s Energy Studies Series (SARESS) since 2010. The hallmark of SARESS is flexibility, to provide just-in-time policy analysis, advisory notes, and analytical work, mainly conducted by World Bank staff who are assisted by top-level consultants in the relevant countries. The close involvement of World Bank staff ensures that the activities are demand- driven and directly relevant to the policy dialogue and day-to-day work—otherwise staff could not afford to spend time on these tasks. An additional feature agreed upon at the concept review stage for SARESS was that deliverables and outputs should be relatively short and focused, containing key messages that are easy for World Bank senior Mohua Mukherjee, Senior management to digest, to have the greatest chance to influence policy 31 Energy Specialist, Task Team dialogue and country assistance design. Leader of the Electrification and Renewable Energy Study. She is located in Washington, DC. “ASTAE provided excellent support to SARESS, allowing the team to carry out two extremely important activities in the Indian power sector. First is the prominent work on Rural Feeder Separation in various Indian states that have experimented with this approach to improve the quality of power supply to rural households previously suffering from the consequences of free power to agriculture. Following separation of the feeders, nonagricultural rural consumers had access to power nearly 24 hours a day and paid for it accordingly; agricultural consumers— who do not pay—continued to receive their limited supply of eight hours per day for irrigation purposes. ASTAE support was used both to study the feeder separation experience and to conduct a survey of rural consumers who were receiving better power supply after feeder separation. Second, ASTAE provided excellent support to a similarly important topic through its report ‘Skill Gaps in the Indian Power Sector.’ The findings of this study allowed us to engage in important dialogue, drawing attention to this matter since the power sector is changing in scope and competing with private players. ASTAE plays a very important role in keeping us focused on being creative and innovative in matters related to rural electrification to reduce energy poverty, as well as renewable energy technologies, and energy efficiency improvements. All are key pillars in the SASDE work program and all have benefited from ASTAE support, and we hope that this support will continue. ” INDONESIA 32 © Shutterstock ASTAE ANNUAL STATUS REPORT #19 Indonesia: Geothermal Power national power company on several geothermal developments, Development Program, Additional including the ones financed by the World Bank. And the review of safeguards work related to the impact of hydrogen sulfide Financing has led to a national dialogue to address the issue on a sector- Indonesia has the world’s largest geothermal potential, 2 ASTAE-Supported Activities during FY2011 wide basis. Ultimately, ASTAE assistance to PGE will have a and the government has made it a development priority as transformative impact by improving the prospects for success part of its low-carbon growth strategy. Geothermal power of the company’s attempt to develop more than 1,000 MW of will help Indonesia meet its growing energy demand in an geothermal capacity, which will double Indonesia’s capacity environmentally sustainable manner because it is ideally and account for a 10 percent increase in worldwide geothermal suited to displace coal-based power. Despite its potential, capacity. a number of barriers limit Indonesia’s prospects for scaling up development in the sector. At the government’s request, Implementation Support for Policy and the World Bank is assisting Indonesia to achieve its globally Institutional Reforms: GEF Geothermal Power unprecedented target of developing 4,000 MW of new Generation Development Project capacity by 2014–15. ASTAE has funded critical activities enhancing the technical assistance provided to Indonesia. The government of Indonesia has recognized the need to The Bank’s support is based on three distinct areas, for which address key policy and institutional barriers preventing the additional ASTAE financing during fiscal 2011 covered nearly scaling up of geothermal development in Indonesia. The half of the total. ASTAE’s financing to the Geothermal Power World Bank, through a GEF grant of US$4 million, is helping Development Program during the FY 2007–11 business plan to bring international expertise and experience to help the 33 period covered the following: government address these critical issues, and ASTAE has played an instrumental role in supporting this effort. Initially, this included assistance to the Ministry of Energy and Mineral Preparation of Investment Lending: Geothermal Resources (MEMR), the implementing agency, to procure key Clean Energy Investment Project consultancies to help develop (i) a pricing policy to address The World Bank provided loans totaling US$300 million to incremental costs and risks associated with geothermal Pertamina Geothermal Energy (PGE), a leading geothermal development, and (ii) transaction advisory services to help developer in Indonesia, to develop approximately 150 MW of develop a credible transaction process for tendering new geothermal capacity and kick-start the scale-up. It included geothermal fields for development by the private sector in US$175 million from the IBRD middle-income country a fair and transparent manner. When the consultants were borrowing facility and concessionary financing from the Clean being procured, ASTAE helped the World Bank fill the void Technology Fund (CTF). The loan to PGE was the first CTF by providing direct technical assistance to MEMR for policy operation in East Asia. ASTAE played a critical role, along formulation and institutional strengthening. Once MEMR with complementary grant support directly to the client by secured the services of the consultants, the World Bank, with the government of the Netherlands to help PGE prepare a the support of ASTAE, was able to work closely with MEMR number of investment projects to meet international and and its consultants to provide guidance to the evolving and industry standards. As a first-time client of the World Bank, ongoing policy reforms. Through the use of the experts funded PGE also benefited from the capacity-building efforts made by ASTAE, the World Bank facilitated the completion of six possible by ASTAE support. This support not only enhanced geothermal power purchase agreements with the national preparation of the World Bank–financed project, but improved power company, which will lead to more than 500 MW of new its implementation and positioned PGE for preparation of power generation capacity. The Bank also provided input to the future projects. ASTAE’s assistance enabled the World Bank to evaluation of the tender process for geothermal transactions provide critical input to PGE’s feasibility studies, environmental and its redesign to mobilize investments commensurate and social impact assessments, drilling strategies for its with the needs. In this effort to attract investors to Indonesia, steam fields, and overall capacity building of the implementing ASTAE and the Public-Private Infrastructure Advisory Facility agency. It provided the incremental support necessary to carry jointly supported the government in hosting the World out the due diligence for the World Bank and CTF loans. The Geothermal Congress, a definitive global event in the sector review and guidance provided to PGE on its power purchase that is held every five years. agreements contributed to the ultimate agreement with the Carbon Finance: Technical Assistance to near universal access during 2020–30. Consistent with these Support Efforts to Address Climate Change priorities, and in light of the state power utility PLN’s regional plans and dialogue with the World Bank, the overall contours Geothermal is a clean renewable energy that is an ideal of a World Bank–financed project have been broadly identified substitute for coal-based power generation in Indonesia, for further detailing and preparation. PLN included the project making it a vital element of the government’s low-carbon in the 2012 government budget and requested the World Bank growth strategy. It is also eligible for carbon off-set revenues to assist in preparing the Outer Islands Electrification Program under the Clean Development Mechanism, which can be an during calendar 2011. The Bank is preparing an investment important source of funds to bridge the incremental costs lending operation for Board presentation, potentially during associated with developing the sector. The World Bank helped fiscal year 2012. implement the first public sector geothermal carbon finance transaction with Perusahaan Listrik Negara (PLN). With aid The proposed project scope, design, and implementation from ASTAE, the World Bank was able to assist the entire were anchored around PLN’s large numbers of grid system sector by providing technical assistance to MEMR and other operations, which are the responsibility of PLN’s Eastern stakeholders regarding ways in which they can access scaled- Indonesia Division. A critical underlying strategic driver for the up carbon revenues through emerging mechanisms such project design is the concept of a systematically developed as the Carbon Partnership Facility. The technical assistance and staged programmatic sectorwide framework, and an included training of MEMR staff and other officials, consensus implementation and financing plan for introducing renewable building among stakeholders, development of operational energy technology to reduce the operating costs of existing 34 manuals that could be used to implement carbon off-set diesel-based generation units in PLN’s mini-grid network, and financing schemes, and options for an institutional structure extending the grid network systems in the eastern islands to for a coordinating and managing entity for such a program. improve electricity access. Although there is considerable global uncertainty regarding the ASTAE funding was requested to evaluate the project scope future structure of carbon markets, the assistance provided by through an up-front rapid data assessment so that key ASTAE BNPP has positioned MEMR and the government to sector data and relevant information could be assembled and capitalize on emerging trends and possibilities for accessing reviewed to provide a comprehensive and substantiated factual carbon revenues to enhance the prospects for geothermal basis—in scope and coverage—essential to support the design development. of the project concept by the Bank. A detailed scope of work ASTAE funds provided to the World Bank’s geothermal support was prepared for each consultant, and consultant performance program in Indonesia has had a considerable impact and and outputs were monitored closely to ensure compliance with helped launch the country’s ambitious geothermal program. the activity’s objective leading up to the delivery of the ASTAE- Given the unprecedented scale-up being attempted, there is funded data assessment. considerable further opportunity to consolidate the gains that The ASTAE-funded activity raised PLN’s awareness of the have been achieved thus far, and apply them on a larger scale. stringent data and project-preparation requirements of a proposed Bank-funded activity to support the retrofitting of existing diesel-based generation with renewable diesel hybrid Indonesia: Thousand Islands Solar systems. It also galvanized the client to start compiling and Photovoltaic (PV) monitoring the data in anticipation of project preparation. The As a follow-up to the ongoing implementation of the Java activity also provided PLN with a framework for preparing Bali Power Sector Restructuring and Strengthening project those aspects of the project that it is funding itself. Finally, and other multilateral-financed power projects concentrated PLN, in partnership with the Bank, was able to bring other on strengthening the power systems in Java, Bali, and development partners into the dialogue to jointly finance the other main islands, the government of Indonesia is now project. As a follow-up investment, PLN is funding the first 100 focusing on improving electricity access in the outer islands, locations out of the total 1,000 locations that are included in mainly through the use of renewable energy technology. the Outer Islands Electrification Program. The government has embarked on a program to electrify The stock-taking and data assessment performed with ASTAE the eastern Indonesian islands—referred to as the 1,000 support can be replicated for renewable-energy projects Islands Electrification program—with the aim of achieving in other regions, leading to better project preparation and ASTAE ANNUAL STATUS REPORT #19 subsequent investment lending. In this instance, these preliminary activities led to a well-planned and -orchestrated implementation program for Indonesia’s Eastern islands that includes a least-cost grid extension program. 22 ASTAE-Supported Activities during FY2011 INDONESIA 35 © Ray Witlin / World Bank Solomon Islands 36 © istockphoto ASTAE ANNUAL STATUS REPORT #19 Solomon Islands: Tina River transaction adviser on levels and alternative structures of the Hydropower Development Project, power purchase price and the retail tariffs. ASTAE financed a pricing adviser for phase 1 of the study. In phase 2, the Additional Financing pricing adviser will review and advise on retail tariffs, and it is The government of the Solomon Islands places high priority 2 ASTAE-Supported Activities during FY2011 expected that ASTAE will also support this work. on the Tina River Hydropower Development Project (TRHDP), a power generation scheme that would enable the country to (i) introduce a new renewable energy technology to its power system for the first time; (ii) save on imported diesel oil costs through the use of domestic water resources; (iii) reduce air Box 2-3: pollution in the Honiara area; (iv) mobilize private sector capital for infrastructure development, thereby easing the demand on ASTAE’s Contribution to a Proposed government budgetary resources and freeing resources for Solomon Islands Tina River social sectors; and (v) build domestic capacity in hydropower Hydropower Development Project and public-private sector operations and help catalyze future infrastructure private investments in the country. “ASTAE financing is critical for undertaking a highly challenging project in small island The objective of ASTAE-supported activities was to help the economies such as the Solomon Islands, which Solomon Islands government to prepare the proposed TRHDP . are characterized by very limited capacity; scarce Before FY2012, ASTAE provided financing to hire consultants hydrological, geological, and other necessary 37 with high-premium technical skills who are familiar with the data; and complicated land ownership and low-capacity country environments, but are normally difficult to sensitive socioeconomic cultures. For the provide to clients within the scope of limited Bank budgets. proposed Tina River Hydropower Development In FY2012, ASTAE provided additional support to two key Project, the challenges are compounded by the activities: (i) carrying out additional work required to complete fact that this will be the first hydropower project the feasibility study and (ii) analyzing tariffs and providing of this scale to be developed and connected to strategic advice to the government on the price of power the grid, and the first public-private participation purchases from the project and on the level of retail tariffs in infrastructure. Thus, external skills are required necessary to make the project affordable. See box 2-3. in many areas and the shortage of ecological, social, and hydrological data calls for highly During the stakeholder review of the Phase 1 Feasibility experienced consultants and, therefore, for a Study it became clear that there were no adequate baseline flexible funding source. ASTAE has contributed data in the country to give a complete understanding of the greatly to meeting these needs.” current physical and biological conditions within the affected areas. It was concluded that some preliminary field studies were required to prepare the Screening and Scoping Report Joel Maweni, part of the feasibility study. ASTAE funding was provided to Operations Advisor, carry out ecological and social surveys. In addition, ASTAE Task Team Leader funded an environmental specialist consultant to support the of Solomon Islands Project Office in supervising the surveys and handling other Tina Hydropower environmental and social safeguards work. Development Project. He is located The tariff at which the Solomon Islands Electricity Authority in Washington, DC. (SIEA) will purchase electricity from the developer will have a significant impact on the retail tariff at which consumers will purchase electricity from the SIEA. Similarly, the level and structure of retail tariffs will affect the ability of the SIEA to meet its payment obligations to the developer for electricity purchases. Thus, as part of the project preparation an electricity pricing adviser consulted with the government and the VIETNAM 38 © ASTAE ASTAE ANNUAL STATUS REPORT #19 Vietnam: Demand-Side Management and Vietnam: Rural Distribution Project Energy Efficiency Program The Rural Distribution Project was undertaken by the Bank to Vietnam has enjoyed a period of extraordinary economic improve the reliability and quality of medium voltage service to growth. The Bank’s strategy has focused on meeting demand targeted retail electricity distribution systems. This goal was to 2 ASTAE-Supported Activities during FY2011 for electricity with reliable and cost-efficient power, while be achieved through investment in rehabilitating and increasing strengthening social inclusion by expanding access to the the capacity of existing distribution lines and substations. rural poor, and improving natural resource and environment Technical assistance complemented the physical investment management through increased system efficiency and by supporting the development of the power companies into promotion of the use of renewable energy. In fiscal 2011, the modern power distribution utilities. objectives of ASTAE activities were to (i) provide advisory The ASTAE-supported technical assistance under the Rural assistance and capacity building to the Ministry of Industry Distribution Project focused on building capacity in the power and Trade (MOIT) to successfully implement two pilot companies to act as independent participants in the power programs on energy efficiency (EE); (ii) conduct workshops market as it develops according to the government’s road map on practical experience exchange and business collaboration for reform. It was also to support the preparation of plans for with experienced energy service companies (ESCOs) for completing the government’s universal electrification program. Vietnamese ESCOs; and (iii) conduct a business opportunity ASTAE financed consultant services to assist the power study for expansion of commercial EE business to identify the companies with implementing the technical assistance building blocks for preparation of a Bank-financed follow-up component of the project, provided part of the staff cost for 39 demand side management (DSM)/EE project. managing the technical assistance component, and provided ASTAE allocated US$510,000 of the GEF grant to MOIT to funds for a study tour to China for 40 key persons to exchange implement pilot programs on Promotion of Solar Water Heaters experiences on rural electrification. and on Development of Standards and Labeling for three electrical appliances. An experienced EE expert was hired by ASTAE to work closely with MOIT and local counterparts to provide advice and recommendations for both the preparation and implementation phases of the component project and build the capacity of MOIT staff. ASTAE organized an experience exchange workshop in Hanoi with guest speakers from experienced ESCOs in China and Thailand. Local authorities and other stakeholders from other cities (Ho Chi Minh, Hai Phong, and elsewhere) also attended. A study tour to the Republic of Korea was conducted for a Vietnamese delegation from MOIT. The objective of these activities was to boost the business by addressing local partners’ lack of practical experience through discussion of business opportunities, business models, and creation of collaboration opportunities with Vietnamese counterparts. Finally, ASTAE provided support to the development of a Bank program to encourage a commercial DSM/EE market in Vietnam. ASTAE conducted a study on business opportunities of DSM/EE and developed mid- and long-term strategies for the Bank’s engagement in DSM/EE development. Seven various studies were completed. ASTAE Publications in Fiscal 2011 ASTAE activities produce a number of outputs in various Following is a list of reports and publications produced in fiscal formats, depending on the target audience and the best way 2011: to deliver information to each audience. Most reports are n Cambodia, Supporting Self-Sustaining Commercial byproducts of activities funded by ASTAE, although some are Markets for Improved Cookstoves and Household Biodigesters, the end products. When suitable, the products are published, December 2010 printed, and widely distributed to a broader audience, including through ASTAE’s Web site. The purpose of each publication n Timor-Leste, Key Issues in Rural Energy Policy, December is to share—within and among countries in the region and 2010 beyond—the knowledge and experiences, especially innovative n Vietnam, State and People, Central and Local, Working ones, generated by ASTAE activities. Together: The Rural Electrification Experience, March 2011 In fiscal 2011, ASTAE continued its technical report series of n Regional Transport, Greenhouse Gas Emissions Mitigation peer-reviewed, professionally published, high-quality consultant in Road Construction and Rehabilitation: A Toolkit for reports. These publications are being widely disseminated Developing Countries, June 2011 in print and in electronic form. Many other reports are not n East Asia Region, One Goal, Two Paths: Achieving published, either because their value to the general public is Universal Access to Modern Energy in East Asia and Pacific, limited or because they were confidential outputs delivered to June 2010 partner countries. 40 Philippines ASTAE ANNUAL STATUS REPORT #19 22 ASTAE-Supported Activities during FY2011 41 © Ashden Awards india 42 3 Turning food Waste into cooking gas with a small biogas plant in India. . © David Fulford/Ashden Awards ASTAE ANNUAL STATUS REPORT #19 3. ASTAE Performance Assessment— Fiscal 2007–11 Extended Business Plan Chapter 2 dealt specifically with ASTAE’s activities in fiscal 2011. This chapter re- views the overall performance of ASTAE-funded projects during the five years 3. AstaePerformance Assessment of the just-concluded business plan period, initiated for fiscal 2007–09 and ex- tended into fiscal 2011 to complete the work and finalize the disbursements. ASTAE Disbursements: Leverage and Overview of Disbursements Overview of Activities in THE 2007–11 The ASTAE budget for the 2007–11 business plan period was Extended Business Plan Period US$9,898,614, composed of the business plan endowments by the governments of the Netherlands and Sweden, as well as approximately US$0.6 million carried over from the During the past five fiscal years, ASTAE disbursements Netherlands’ endowment to the previous business plan. totaled US$9,879,650 from two trust funds endowed by the governments of the Netherlands and Sweden with, 43 By the end of fiscal 2011, total donor resources disbursed by respectively, US$7 .4 million and SKr15 million. The pledge from ASTAE had reached 99.8 percent of the US$9.9 million budget. the government of the Netherlands was made in March 2006 As shown in figure 3-1, annual disbursements grew steadily for the fiscal 2007–09 original business plan period, and the from US$1.2 million in fiscal 2007 to US$2.6 million in fiscal pledge from the government of Sweden was made in May 2011, far exceeding the average annual disbursements for the 2007 , allowing the business plan’s reach to be extended into decade. fiscal 2011. Figure 3-1: Evolution of Annual Disbursements and Comparison with Business Plan Budget FY2007 $1.2 Annual Disbursement FY2007–11 Budget FY2008 $1.8 FY2009 $2.2 FY2010 $2.0 FY2011 $2.6 Budget $9.9 0 1 2 3 4 5 6 7 8 9 10 Million US$ Table 3-1: Disbursements by Country during the 2007–11 Business Plan Period Disbursements (in US$) Total Countries FY 2007 FY 2008 FY 2009 FY 2010 FY2011 Period FY2007–11 Bangladesh 0 0 0 0 78,307 78,307 Cambodia 0 43,012 108,459 32,263 11,268 195,003 China 129,628 238,736 288,917 183,355 219,207 1,059,842 Fiji 0 41,987 69,485 0 0 111,472 India 0 0 55,879 0 229,538 285,417 Indonesia 77,850 0 175,253 326,323 462,929 1,042,355 Lao PDR 0 0 0 56,452 21,066 77,518 Mongolia 125,891 290,159 99,618 178,248 50,000 743,916 Pacific Islands 0 29,344 93,543 3,038 0 125,925 Philippines 37,567 1,344 36,132 23,336 0 98,380 Solomon Islands 0 238,936 76,449 63,705 198,097 577,187 44 Thailand 234,736 79,508 7,197 0 0 321,441 Timor-Leste 280,702 0 0 172,406 68,547 521,655 Tonga 0 0 48,867 100,851 0 149,717 Vietnam 51,083 356,067 188,704 161,677 857,877 1,615,408 Regional projects, 6,212 34,765 373,644 335,423 225,764 975,809 Knowledge Sharing Reporting 54,367 129,969 164,011 158,726 79,305 586,378 Administration 218,553 363,930 391,042 238,262 102,043 1,313,830 Total 1,216,589 1,847,757 2,177,200 2,034,066 2,603,947 9,879,560 % increase n.a. 52 18 −7 28 n.a. Not applicable. The details of disbursements by country and fiscal year in table disbursements. Timor-Leste and the Solomon Islands account 3-1 show that total disbursements grew steadily across the for the major portion of disbursements to Pacific Island period. countries (7 percent and 6 percent, respectively, of total disbursements). Figure 3-2 shows that Vietnam, at 20 percent of total expenditure, received a notable amount of financial support Engagement with the South Asia Region continued through from ASTAE. China, Indonesia, and Mongolia also received activities in India and Bangladesh. Although still small (4 regular and significant financial support from ASTAE (13 percent and 1 percent of disbursements, respectively, having percent, 13 percent, and 9 percent of total expenditure, started in the latter half of the business plan period), these respectively). activities laid the path toward more balanced involvement in the two regions. The decision to reach out to smaller Pacific Island countries was put into action by increasing support throughout the The growth in the share of regional knowledge-sharing business plan period; these countries are now a major activities, and in reporting activities (12 percent and 6 percent, part of the ASTAE portfolio, with a collective 17 percent of respectively), reflects ASTAE’s continued commitment to share ASTAE ANNUAL STATUS REPORT #19 Figure 3-2: Disbursements by Country and Financial Year Lao PDR FY2007 Bangladesh FY2008 FY2009 Phillippines 3. AstaePerformance Assessment FY2010 Fiji FY2011 Pacific Tonga Cambodia India Thailand 45 Timor-Leste Solomon Islands Mongolia Regional, Knowledge Sharing Indonesia China Vietnam 0 500 1,000 1,500 US$ thousands good practices both within and across the South and East Asia Investment-Related Leverage regions, and to develop information that has value beyond a The disbursements described above served to leverage single country by supporting regional activities and improving additional investment once ASTAE-supported projects had the means of outreach and external communication. been appraised, approved, and implemented. During the 2007– Abiding by the agreement with ASTAE donors, ASTAE’s 11 business plan period, the US$9.9 million donor resources administrative costs remained well below 20 percent, in fact disbursed by ASTAE supported 17 projects that had been averaging 13.4 percent of total disbursements. presented to the World Bank Board of Executive Directors. The total lending related to these projects amounted to US$2.2 billion, of which 51 percent was sourced from IBRD and IDA, and the rest from borrowing countries’ governments, other Figure 3-3: Disbursements, by ASTAE Pillar, donors, and the private sector. 2007–11 Business Plan Period Therefore, on average, every dollar allocated by ASTAE leveraged US$223 in World Bank–related loans or grants to US$3,763,851 US$2,624,002 sustainable energy. These leveraged amounts vary from year 47% 33% to year, as do ASTAE’s annual disbursements and the number and size of World Bank projects presented to the Board. 28;33% 34: 37% 3;12% 32: 35% Caution must be exercised when referring to such leverage— claiming full ASTAE attribution would be unrealistic and unfair to all those involved in developing the projects, including the governments and the Bank Task Team Leaders. 26: 28% However, such leverage can be seen as a good indicator of ASTAE funding’s reach into Bank operations, thus providing a certain measure of ASTAE influence in channeling funds US$1,591,499 toward sustainable energy. This leverage is especially important 20% in periods of flat budgets, when the institutional appetite Access to energy is decreased for the type of less mainstream, innovative projects—often perceived as riskier and costlier—required Energy efficiency 46 Renewable energy to promote the adoption of sustainable energy solutions. By contrast, availability of ASTAE funds ensures the study will be Inner ring: Number of activities conducted, the consultant hired, or the concept tested that will Outer ring: Amounts disbursed nudge the decision-making process to the finish line. Activity Repartition by Countries and Pillars ASTAE funded 68 activities during the FY07–11 business plan period. Many of these related to several pillars, which explains why the total activities in figure 3-3 is more than 68 (see further details on this in “Introductory Note to Figures” in Figure 3-4: Renewable-Energy Disbursements, chapter 2). by Country, 2007–11 Business Plan Period ASTAE disbursements by pillar, illustrated in figure 3-3, show that although the primary focus of disbursements is on Vietnam renewable energy, ASTAE task teams managed to balance 17% the number of activities among the three pillars in the global Regional portfolio, when taking into consideration both primary and 11% secondary themes of activities. China 12% China The renewable-energy pillar received close to half of all 14% disbursements. Access-related activities received a third of the disbursements, demonstrating the continued importance Tonga 4% of this pillar in the ASTAE strategy. Energy-efficiency-related Vietnam Indonesia activities, which often include cross-sector activities, such as Solomon 14% 24% Islands with the transport sector, received about 20 percent of funding. 15% Thailand Figures 3-4 through 3-6 provide an overview of disbursements 9% Fiji during the business plan period for each pillar, sorted by 3% country, with the full disbursed amount allocated to the India Thailand primary pillar. These figures reveal the attention given by ASTAE 9% 5% to channeling funding toward the pillar requiring the most support for each country. ASTAE ANNUAL STATUS REPORT #19 Figure 3-4 shows a diverse distribution of renewable-energy Figure 3-6: Access to Modern Energy Services funding among countries in the East Asia and Pacific region. Disbursements, by Country, 2007–11 Business Although interest in renewable energy is led by large countries Plan Period with robust domestic carbon-footprint-reduction programs, as in China, Indonesia, Thailand, and Vietnam, it is no longer Bangladesh Phillippines limited to these countries. In fact, ASTAE’s work in the Pacific 3% 4% Lao PDR Indonesia Islands has dramatically increased, representing a fifth of 3% 5% 3. AstaePerformance Assessment Cambodia disbursements in renewable energy for the business plan 7% Regional period. Energy insecurity caused by fluctuations in international 16% fuel prices is driving this concern, along with renewed interest in exploiting indigenous sources of renewable energy. Regional activities were also undertaken—collectively representing Vietnam 11 percent of disbursements—for the production of flagship 22% Mongolia reports as well as the elaboration of practitioners’ tools. 20% Figures 3-5 and 3-6 show that, in comparison with those on renewable energy, the disbursements for the energy-efficiency and access pillars are focused on a different set of countries. Timor-Leste 47 Figure 3-5: Energy-Efficiency Disbursements, 20% by Country , 2007–11 Business Plan Period Mongolia, Timor-Leste, and Vietnam each represent about one- India fifth of disbursements for access to electricity, and illustrate 6% the variety of realities and challenges that countries encounter in their efforts to increase access. In Vietnam, ASTAE provided China Mongolia China 38% support to Bank programs assisting the government’s efforts 13% 17% to deliver access to electricity to the final 10 percent of the population, primarily in remote rural areas. With 95 percent of the population now electrified, a large part of the current work is on improving the quality and the reliability of electricity service. In contrast, access is much lower in Timor-Leste, where only 21 percent of the population has electricity. A different kind of support is provided in Timor-Leste, focusing on basic new connections, increasing customer payments, and increasing the number of hours per day that electricity Regional is available. Finally, Mongolia is in yet a different position, 17% Vietnam 26% relying on an aging network that covers urban and peri-urban populations quite well, but is in disrepair, and needing to provide access to a very dispersed rural population that can be reached only through individual systems. China and Vietnam together account for the predominant share of energy-efficiency disbursements, at two-thirds of the total. Efforts to deliver improved access to energy are not limited ASTAE’s continued involvement in helping those countries’ to electricity. ASTAE plays a leadership role within the World industries realize their energy savings potential, and decrease Bank East Asia energy unit in promoting attention to energy the energy-related impact of their productive sectors, is the used for heating, for both space heating and cooking. The impetus behind this large share. In addition, groundbreaking work in Timor-Leste supported establishment of a rural energy regional work related to energy use in the transport sector and policy with practical recommendations for household energy the related impact of CO2 emissions was undertaken. and the development of biofuels from Jatropha crops. In Mongolia, ASTAE activities provided market-based approaches, and generation from renewable sources. This indicator as well as policy recommendations, for switching to energy- focuses on electricity, thus omitting investments in renewable efficient heating stoves and cleaner fuels in ger households. In sources of heat (such as for cooking or space heating), but is Cambodia, ASTAE supported activities that focused on creating nonetheless considered a good marker for investments in sustainable business models, especially directed toward renewable energy in general. empowering women. These enterprises had strong scale-up Indicator 1: New capacity and increased generation of potential for producing affordable, energy-efficient products renewable electricity for local use. The ASTAE activities included elements to train Table 3-2 provides the renewable electricity capacity added participants in the skills required to participate in planning, during the five years of the business plan period, both directly working in, and managing those enterprises. through World Bank loans and indirectly from investments facilitated by World Bank projects and ASTAE activities. Status of 2007–11 Performance Indicators In addition to reporting on its activity disbursements and Table 3-2: Cumulative Renewable Electricity reporting on World Bank–related investment projects (see Capacity Added, by Country, FY2007–11 appendix 4), ASTAE tracks a set of indicators showing the Business Plan Period trajectory of its impact in supporting sustainable energy development. Renewable electricity generation 48 (capacity installed in MW) Countries with The indicators were chosen to illustrate each pillar. Although ASTAE activity Direct Indirect they may not cover the pillar’s entire spectrum—for example, China 537 4,900 there is more to renewable energy than generating electricity Fiji 5.6 n.a. using renewable sources—the indicators convey the Indonesia 260 6,000 predominant trend. The indicators are usually available from Mongolia 2 n.a. World Bank project documentation and are therefore easily Philippines 40 n.a. referenced from published sources. A project’s achievements are measured as direct when they result from World Bank Solomon Islands 5.6 n.a. loans and grants and as indirect when the impacts are derived Thailand n.a. 1,500 from country stakeholder actions supported by World Bank and Tonga n.a. 10 ASTAE technical assistance. Contributions from all projects Vietnam 180 n.a. during the business plan period were compiled to derive the Regional projects n.a. 30.6 indicators described below. TOTAL 1,030.2 MW 12,440.6 MW Appendix 2 provides a table linking all ASTAE activities n.a. Not applicable. disbursed in fiscal 2011 to the related World Bank projects, and shows their contributions to ASTAE indicators. Most of the direct World Bank–funded renewable-energy When relevant, the aggregate value achieved for each indicator capacity growth during the business plan period was is put in context by comparing it with an equivalent output from wind in China and geothermal in Indonesia. Smaller at the level of a country of the region, using U.S. Energy contributions were made by solar and biofuels in other Information Agency (EIA) 2008 data. Although a little dated, countries such as Mongolia and Tonga. Technical assistance to 2008 is the most recent year for which data comparable among China and Indonesia in policy and sector reforms is expected all ASTAE countries are available. to give rise to a number of private sector projects to scale up renewable energy, leading to the indirect portion of this Renewable-Energy Pillar indicator. The renewable-energy pillar is illustrated by an indicator ASTAE’s targets for renewable-based electricity were not measuring electricity generated using renewable fuel. Through expressed in installed capacity, but rather in annual electricity support to projects that directly facilitated investment in generation (1,000 GWh directly and 10,000 GWh indirectly) renewable energy, ASTAE activities led to increased capacity once projects were fully commissioned. However, most Bank ASTAE ANNUAL STATUS REPORT #19 project documentation does not provide renewable electricity generated, focusing instead on MW installed and then Table 3-3: Cumulative Electricity Savings, by estimating the corresponding GWh. ASTAE follows the same Country, FY2007–11 Business Plan Period process. Electricity savings As shown in the summary at the end of this chapter (table 3-6), (GWh electricity, annually) Countries with these targets were met and exceeded. World Bank projects ASTAE activity Direct Indirect supported by ASTAE during the 2007–11 business plan period 3. AstaePerformance Assessment China n.a. 20,000 are expected to result in installed capacity of 1,030 MW of Fiji 3.3 400 renewable energy that will generate 1,579 GWh annually once Philippines 80 n.a. commissioned. This is equivalent to the combined installed Solomon Islands 3.3 n.a. capacity of Lao PDR and Cambodia in 2008, as well as to the Thailand n.a. 400 sum total of electricity generated in Cambodia in 2009. Vietnam 1,500 n.a. In addition, ASTAE- and World Bank–funded support to Total 1,586.6 26,150 frameworks, regulations, and investment mechanisms n.a.: Not applicable. favorable to renewable-energy development are expected to contribute indirectly to the installation by utilities and private investors of 12,440 MW, which is expected to generate 18,000 One major source of indirect savings (76 percent of total) is an GWh annually once commissioned. ASTAE-supported activity in China that led to banks’ creating 49 new financial products to fund energy-efficiency projects; Energy-Efficiency Pillar another important result came through ASTAE’s contribution The energy-efficiency pillar is evaluated by an indicator of the to the energy-efficiency road map in Thailand that helped focus quantity of electricity saved, or generation capacity avoided, the government on priority sectors with the highest savings by decreasing consumption, reducing waste, or both. It is potential. a measure of the support to projects that limit the need for The summary (table 3-6) shows that the business plan targets electricity generation throughout the year and limit the need for both direct and indirect annual electricity savings have been for additional installed capacity to meet annual peak demand. exceeded. When all projects are operational, direct savings will Because this indicator focuses on electricity, it does not reflect be 1,586 GWh annually and indirect savings will be more than ASTAE’s work in heating, primarily space heating in northeast twice the target, at 26,150 GWh annually. The direct savings Asia, or in cookstove improvements. It is still considered a figure is equivalent to halting electricity generation in Cambodia good marker for investments in energy efficiency. for 2009, while the indirect savings amount to Bangladesh generation for the better part of the same year. Indicator 2: Electricity savings resulting from efficiency improvements Table 3-3 provides a summary of cumulative annual electricity Access to Modern Energy Services Pillar savings that derive from ASTAE-supported World Bank projects The access to energy pillar is measured by the number of once fully implemented. These estimates are calculated based households that received new or improved connections to on direct savings through World Bank loans or on indirect modern energy services, regardless of the type of fuel. Under support by way of investments facilitated by World Bank and this method, an improved wood-burning stove that reduces ASTAE technical support. smoke emissions and decreases consumption of raw wood for the same heat output is equivalent to an improved electricity As noted earlier, ASTAE activities related to improving connection. Although the type of service differs markedly— efficiency in the power sector were concentrated in a few high- cooking and heating on one hand and lighting, information, and impact countries. ASTAE provided significant financial support potentially productive uses on the other—they are treated as to electricity savings in the Vietnam rural electrification project, being of the same value to the beneficiary. which has delivered direct impacts by improving medium- and low-voltage networks and reducing losses dramatically— Distinctions between connection types are based on whether representing 95 percent of total program-wide direct savings. they are new connections or improved ones, and whether ASTAE’s contribution was direct or indirect. Indicator 3: Households with access to modern energy services Table 3-4: Households with Access to Modern Energy Services, by Country, New connections to electricity have life-changing impacts, 2007–11 Business Plan Period whether because of new opportunities opened by access to electricity or improved efficiency in daily tasks made possible Households with access to modern energy by the use of powered tools and appliances. Improved services (number of households) Region and country connections help remove constraints on households, often of activity Direct Indirect by lowering the amount of fuel needed or by improving the Cambodia 17,500 (NA) n.a. reliability of existing services, thereby eliminating the need for China n.a. 300,000 (NA) backup service. For example, improved electricity connections Fiji 22,050 (NA) n.a. in Vietnam helped reduce the need for alternative sources of Indonesia n.a. 200,000 (IS) lighting, such as kerosene lamps or candles, that were needed Lao PDR 37,700 (NA) n.a. when unplanned blackouts were a frequent occurrence. Mongolia 226,000 (NA) 150,000 (NA) It should be noted, however, that the distinction between Solomon Islands 92,200 (NA) n.a. new and improved services is not always as obvious as it Timor-Leste 80,000 (NA) n.a. might appear. A new connection is often, in fact, an improved Tonga n.a. 20,000 (NA) connection to the same service but using a more efficient fuel Vietnam 150,000 (NA) n.a. source. For example, a new connection to electricity displaces 2,000,000 (IS) 50 the use of kerosene for lighting or batteries for radios, and Regional projects 23,000 (NA) n.a. provides a much more efficient and less costly source, but Total 648,450 (NA) 470,000 (NA) does not bring new lighting services or radio use because 2,000,000 (IS 200,000 (IS) these were already in place. Table 3-4 shows that the rural electricity project in Vietnam n.a.: Not applicable. NA: New access IS: Improved services is by far the most important activity for increasing household access under the ASTAE program. This achievement was possible because large numbers of people were not connected to the national grid and because the government took voluntary actions to provide universal access to electricity. also have been well over target had it been set at the same level as the improved services target. Access to electricity remains the major component of the indicator, but space heating in Mongolia and cookstoves and biogas in Cambodia and Timor-Leste contributed, too. Cross-Cutting Indicators Direct targets have been met, with ASTAE-supported World A fourth and a fifth indicator that cut across the three pillars Bank projects financing improved services to 2 million also have been defined. One is dependent on the results from households (four times the target of 500,000) and new the three pillars’ individual indicators, whereas the other is a access to modern energy services to an additional 648,450 more general assessment of ASTAE’s involvement across the households (129 percent of the target of 500,000 households) region. (see table 3.6). The fourth indicator measures reductions in CO2 emissions, Indirect targets were only partly met if new and improved representing the overall impact on greenhouse gas abatement. access to energy are assessed separately, but as an It is an important metric because CO2 emissions are aggregate measurement, ASTAE’s achievement in this considered the main contributor to the greenhouse effect. regard has exceeded the targets. ASTAE-supported projects ASTAE activities have a direct impact on CO2 reduction through fell 20 percent short of meeting the indirect goal of 250,000 World Bank project contributions to renewable energy, energy households with improved services. However, new access that efficiency, and improved access to modern energy services. indirectly resulted was more than nine times the modest target The fifth indicator ensures that financial assistance is provided of 50,000 households, and with 470,000 households, would to all countries in the region and avoids the unintended trap ASTAE ANNUAL STATUS REPORT #19 of focusing on large countries just to meet the earlier four indicators. Table 3-5: CO2 Mitigated, by Country, 2007–11 Business Plan Period Indicator 4: Avoided greenhouse gas emissions This indicator estimates the quantity of CO2 emissions that CO2 mitigated over 20 years would be avoided over 20 years (the conventional lifespan of (million tons) Countries with projects or equipment) through ASTAE-supported World Bank ASTAE activity Direct Indirect 3. AstaePerformance Assessment projects. It determines the CO2 equivalent saved directly and Cambodia 1.52 n.a. indirectly through the replacement of conventional thermal China 61.42 510.00 power plants with renewable energy and realizing the potential Fiji 0.17 2.46 energy savings. India 4.80 n.a. Table 3-5 shows that China accounts for more than half of the Indonesia 21.00 500.00 direct CO2 savings. However, projects in Indonesia and Vietnam Mongolia 0.18 n.a. contribute large shares of avoided CO2 emissions. The table Philippines 2.00 n.a. also confirms that to substantially scale up CO2 emissions Solomon Islands 0.17 n.a. mitigation, support to country programs that encourage Thailand n.a. 82.00 sustainable energy use in energy-intensive economic Timor-Leste 2.20 n.a. sectors has the greatest effect. This is illustrated by the fact Tonga n.a. 0.32 that indirect CO2 mitigation is 10 times greater than direct Vietnam 20.28 n.a. 51 mitigation. The indirect impacts are led by mitigation expected Regional projects n.a. 0.50 from restarting a major investment in geothermal in Indonesia and by continued private sector investment in alternative Total 113.74 1, 085.28 energy in China. n.a.: Not applicable. The CO2 targets have been met (table 3.6). The direct impact value, estimated at 114 million tons, or 162 percent of the target, would be roughly equivalent to all of Vietnam’s energy- related CO2 emissions in 2008. The indirect savings, estimated to be 1,097 million tons, or 140 percent of the target, would be equivalent to the total CO2 emissions of the African continent in 2008. Indicator 5: Countries benefiting from ASTAE support ASTAE provided financial support to activities in 14 countries, as well as to several regional activities, markedly exceeding the target of a minimum of 10 countries. A number of the Pacific Island countries were represented, in addition to the large continental countries. The differences among countries in Asia where ASTAE is active are vast, ranging from China and India, the dominant economies of the region, to the much smaller Tonga and Fiji. All ASTAE activities are designed to adapt to the wide variety of issues throughout the region, as well as to the country context. Table 3-6 provides a summary of all indicators discussed in this chapter. Table 3-6: Summary of 2007–11 Extended Business Plan Targets, Pledged and Achieved Indicators Unit Value pledged for Effectively achieved Achieved or pledged business plan period during business plan ratio (%) period 1. New capacity and increased generation of renewable electricity Direct - Capacity MW n.a. 1,030 n.a. renewable energy - Generation GWh/year 1,000 1,579 158 Indirect - Capacity MW n.a. 12,440 n.a. renewable energy - Generation GWh/year 10,000 18,018 180 2. Electricity savings resulting from efficiency improvements Direct energy savings - Generation GWh/year 1,000 1,586 159 Indirect energy sav- - Generation GWh/year 10,000 26,150 262 ings 3. Households with access to modern energy services Directa new access Household 500,000 648,450 129 Direct improved services Household 500,000 2,000,000 400 52 Indirectb new access Household 50,000 470,000 940 Indirect improved services Household 250,000 200,000 80 4. Avoided greenhouse gas emissions Direct CO2 avoided over 20 years Million tons 70 114 162 Indirect CO2 avoided over 20 years Million tons 780 1,085 4 5. Countries benefiting from ASTAE support Number of Countries Country 10 14 130 n.a.: Not applicable. a. Direct refers to values achieved, or expected to be achieved, in the course of World Bank–funded projects that benefited from ASTAE support. b. Indirect refers to values achieved, or expected to be achieved, following actions engaged in by countries’ energy stakeholders that result from informed decisions to which ASTAE contributed through its funding. ASTAE ANNUAL STATUS REPORT #19 3. AstaePerformance Assessment BUTAN 53 A woman carries wood that will be used for cooking and Heating in her home. © Curt Camemark/World Bank Lao PDR Transmission lines on the Nakai Pla- teau, Lao PDR. 54 4 © World Bank ASTAE ANNUAL STATUS REPORT #19 4. Outlook for Fiscal 2012 and Beyond Fiscal 2011 saw both the completion of the 2007–11 business plan and preparation 4. Outlook for Fiscal 2011 and Beyond for the upcoming one, in parallel with the organization of renewed funding from ASTAE donors. Staffing and Funding Status in Fiscal The Swedish Trust Fund was extended to February 28, 2011, 2011 at which date it was closed and the amounts received were disbursed at 99.9 percent by June 30, 2011. Staffing in Fiscal 2011 ASTAE Business Plan for Fiscal 2012 and The ASTAE team comprised the folowing members in 2011: the Future n Mr. Narasinham Vijay Jagannathan, sector manager for 55 the East Asia Infrastructure Unit (EASIN), has been the ASTAE Lessons Learned and Going Forward program manager since July 2009. Following are key lessons learned from ASTAE operations n Mrs. Natsuko Toba, senior economist in EASIN, has been during the two previous multiyear business plan periods as ASTAE coordinator since May 2010. reflected in the next business plan for FY2012–15. n Mr. Dejan Ostojic, energy practice leader in EASIN, n Indicators were confirmed to be a valuable tool for provides strategic support to the program manager and the tracking ASTAE’s success and influence. However, the coordinator for activities in East Asia and the Pacific. introduction of indirect impacts in 2004 made tracking more n Ms. Sudeshna Banerjee, senior economist, provides difficult. Although both direct and indirect impacts should be strategic support to the program manager and the coordinator tracked, target values should be pledged only for direct impacts for activities in South Asia. because they are within the Bank’s sphere of direct influence. n Mr. Laurent Durix, senior energy consultant, provides n Regional scope. Two key issues with regard to ASTAE’s technical support to the program manager and the coordinator. regional scope emerged during the later years of the previous business plan: reintegration of the South Asia Region (SAR) and strengthening of ASTAE’s regional impacts. ASTAE Funding Status in Fiscal 2011 will need an increased budget to fairly accommodate the In fiscal 2011, ASTAE activities remained endowed by the two increasing joint demand from EAP and SAR. Given the trust funds: importance of regional cooperation and of sharing knowledge n Government of the Netherlands Trust Fund for ASTAE and experience among countries to promote sustainable from the Bank-Netherlands Partnership Program (BNPP) development and green growth, ASTAE has ensured that (TF057088); and single-country projects have regional impacts.2 These impacts are crucial and ASTAE’s ability to effect them should be further n Swedish International Development Agency (Sida) Trust strengthened. Fund for ASTAE (TF091618). n Sectoral scope. As Asian countries have become The Netherlands Trust Fund was extended to December, 31, increasingly interested in promoting low-carbon, green 2010, at which date it was closed and the amounts received growth—harmonizing growth between the economy and the were disbursed at 99.8 percent by April 30, 2011. environment—the cross-sectoral dimensions of the energy 2 For example, ASTAE disseminates lessons learned from projects by producing reports and videos. ASTAE’s support to projects also includes training tours from one country to another (for example, sending Mongolian utility staff for training in the Philippines), and sharing experiences of electrification successes in Vietnam and Lao PDR. ASTAE contrib- utes funding to EAP flagship reports through which EAP energy strategy and project pipelines are built. ASTAE funded a greenhouse gas emission reduction toolkit in the road construction subsector, which will be used for Bank projects. Such regional cooperation extends beyond Asia: ASTAE’s support to light-emitting diode screening methodologies in Africa is one example. sector have received more emphasis. ASTAE has provided size and remoteness, resource endowments, and cultures. such cross-sectoral support in both the transport and the n Urbanization in the more advanced economies in the social sectors. ASTAE is strategically positioned for future region has been occurring much more rapidly than expansion cross-sectoral issues: it is located in the EAP Sustainable of basic infrastructure. A number of these urbanizing Development Department, which includes the environmental, areas require solutions similar to those being undertaken agricultural, infrastructure, and social sectors. And in the SAR, in developed economies, such as low-carbon growth, its energy unit works closely with other units. economically and ecologically sustainable cities, smart grids, n Execution. Recipient-executed trust fund (RETF) activities and the like. have been requested by donors and encouraged by the n Conversely, the less advanced economies suffer from Bank’s recent policy to further strengthen client ownership of very low levels of access to basic infrastructure, limited programs and projects. ASTAE will introduce these activities in capacity to develop and implement even simple projects, and addition to current Bank-executed trust fund (BETF) activities. nonexistent master plans and strategies. For some, the small n Management. Consistent with the Bank’s decentralization size of their economies and their remoteness and isolation policy, Task Team Leaders are increasingly located in the field, underpin these issues. coinciding with increased demand from the SAR for ASTAE n Common to most countries in the region, however, is support. Because this increases the scale of management low access to clean, modern energy, compounded by weak covering SAR and EAP , management procedures need to be governance, including legal, institutional, and regulatory streamlined and governance strengthened. The proper mix of 56 frameworks. clear rules and flexibility will be needed to preserve the balance that has been central to ASTAE’s successes over two decades. n Finally, both the SAR and the EAP are vulnerable to climate change and other environmental impacts. n Funding instrument. A multiplicity of ad hoc trust funds, often with specific restrictions, can lead to high transaction These challenges make it ever more important for ASTAE costs. Hence, a new multidonor trust fund (MDTF) has been to continue to focus on its three existing pillars, to more created as the preferred funding instrument for ASTAE’s new vigorously promote green growth, and to devote greater business plan. However, bilateral arrangements for single attention to regional and cross-sectoral cooperation, both trust funds remain an option under the umbrella of ASTAE’s physically and through the sharing of knowledge and financing facility. In addition to the challenges caused by the experience. management of multiple funding sources, the execution of ASTAE is well positioned to tackle these challenges and the previous business plans has made it obvious that business opportunities based on its track record of success since its plan periods need to be longer. The current three-year business establishment in 1992 as evidenced by the achievement of plans do not permit optimal use of funding: the first year is targets set in previous business plans, favorable reviews often spent setting up funds and the last is spent rushing to by external experts from the Bank, and ASTAE’s impact on disburse funds, including those received in that year, resulting the EAP’s, the SAR’s, and the Bank’s portfolios. Through its in insufficient time for execution. To prevent this situation, each focus on energy, ASTAE can play a crucial role in promoting business plan will now begin the year after ASTAE receives low-carbon, green growth—an emerging worldwide trend, funding and will cover a four-year period, the last year of which especially in Asia. ASTAE has a significant advantage in will be devoted to establishing the next plan. Business plans promoting regional cooperation to scale up a range of will follow fiscal rather than calendar years, consistent with sustainable energy practices from one country to the regional Bank practice. level. Without ASTAE support, the scaling up of sustainable energy practices is likely to slow in the SAR and the EAP, and ASTAE Business Plan for FY2012–15 the EAP may not be able to take leadership and share lessons learned with the SAR and the rest of the World Bank Group. The challenges ahead for ASTAE, based on experience and the characteristics of the region, are numerous: ASTAE engages with client countries from the very early stages of decision making to ensure that investment projects n Both the SAR and the EAP comprise countries with presented to the World Bank Executive Board for approval will widely varying levels of economic development, geographic promote sustainable development and poverty reduction. For ASTAE ANNUAL STATUS REPORT #19 example, ASTAE’s technical assistance contributes to the high Sustainable energy options remain defined through the three quality of client-prepared feasibility studies so that the Bank ASTAE pillars: can better prepare and appraise projects for Board approval. n energy efficiency, ASTAE’s technical assistance to client countries at the earlier stages not only helps to identify issues and sustainable energy n renewable energy, and solutions (potential investment projects), but also can identify n access to modern energy services. 4. Outlook for Fiscal 2011 and Beyond and mobilize potential funding sources. ASTAE is among the most efficient trust fund programs ASTAE operational support will be implemented through four and brings unique competitive advantages. Because key approaches: ASTAE resources are used to fill only critical financial gaps (for example, innovative technologies and activities, and n supporting innovative delivery mechanisms, resolution of difficulties), its leverage of Bank investment n enhancing policy and regulatory frameworks, and grant activities is significant. Valuable taxpayer money n building capacity and sharing knowledge, and is spent effectively as a result of ASTAE’s high leverage of donor funding; for example, during the five years of the n promoting cross-sectoral and regional collaboration for FY07–11 business plan period, every dollar allocated by mitigation of, and adaptation to, climate change. ASTAE leveraged US$223 in World Bank–related loans or Articulation of the fourth approach is new, although ASTAE has grants to sustainable energy. In addition, ASTAE management been implementing this approach for some time. It has been is located in the regional operational unit, ensuring that 57 added to emphasize ASTAE’s increasing commitment to this decision making about providing ASTAE support is better approach. informed. Management knows the projects and the proposed activities—which are demand driven and delivered on the Specific Objectives of the Third Phase of ASTAE ground—and the strategic priorities. Location in the region As noted, ASTAE’s specific objective in its early days was enables ASTAE’s timely support and feedback and its to mainstream alternative energy in lending and grants strong country and regional influence. The information and in the EAP . For ASTAE’s second phase, the objective was publications ASTAE disseminates, even its high-level technical scaling up, mainly on a country basis. In this third phase, the analyses, are practical and applicable to operational realities. specific objective is promoting low-carbon, green growth,3 ASTAE’s information and publications meet the needs of Task and scaling up supply of and access to sustainable energy Team Leaders, other practitioners, policy makers and decision on a regional basis. ASTAE will devote special attention to makers, and academics. supporting the promotion of sustainable energy as part of a regionwide system to create synergistic impacts and Goals, Objectives, Strategy, Budget, and promote increased efficiency. The increasing importance of Approach the regional dimensions of ASTAE’s mission is reflective of external demand and opportunities and ASTAE’s long-standing Goal and Objective experience and capability. Consistent with past business plans, ASTAE’s enduring goal is to contribute to poverty reduction and protection of the Low-carbon, green growth environment, as made operational through its unchanged Promoting low-carbon, green growth calls for cross-sectoral objective, to “scale-up the use of sustainable energy options work. First among the priority activities is ecologically and in Asia to reduce energy poverty and protect the environment. ” economically sustainable cities, which will require integrated ASTAE defines sustainable energy as energy security, land use planning, transport, building, other infrastructure sustainable sources of energy, continuous and reliable flows of services, and urban agriculture. Rural development will remain energy supply, and financially sustainable energy for suppliers an area of focus, and will include creating synergies between and users. renewable energy, food security, and water management. 3 Based on a review of literature from middle- and high-income countries, green growth is defined as sustainable development and growth in harmony with protection of the environment and ecosystem. Protection of the environment and ecosystem is an engine of growth and development rather than an obstacle. Green growth has the following characteristics: • sustains economic growth; • reduces environmental damage, including local pollution and greenhouse gas emissions; • minimizes waste and inefficient use of natural resources; • relies on energy-efficient and low-carbon energy resources and production technologies; • builds sustainable infrastructure, such as compact urban form and public transport; • promotes green technologies and creates new job opportunities; and • educates and increases the awareness of citizens to adopt resource-efficient consumption patterns. Green, low-carbon growth not only improves environmental sustainability, but brings additional benefits for development, such as enhanced energy security, less traffic conges- tion, more livable cities, and greater competitiveness from higher productivity, thus justifying part of its cost and increasing the appeal of green policies. Scaling up supply of and access to sustainable energy on a of cities and urbanization, ASTAE will also provide support at regional basis the subnational level. It will continue to seek cross-sectoral ASTAE’s intra- and interregional activities will continue synergies whenever relevant to the ASTAE pillars, especially to address specific issues that are best handled at the when they fit well with the cross-sectoral dimensions of low- supranational level. In addition to supporting regional projects carbon, green growth. as defined under IDA guidelines,4 ASTAE will encourage The estimated budget required to intensify the work in the South-South cooperation and knowledge sharing, and EAP , to extend ASTAE activities into the SAR, and to support continue to support the regional, cross-border, and common recipient-executed activities is at least US$20 million over (or similar) challenges faced by countries in the region. Past the next four fiscal years. ASTAE will allocate operational ASTAE-supported activities with regional dimensions generally budget resources to intensify downstream activities related to followed four concepts: sustainable energy projects and programs as shown in table n First are regional products, methodologies, and 4-1. instructional frameworks shared by countries in the region. IDA and non-IDA countries are likely to receive comparable Examples include the popular EAP region’s wind atlas, the budget allocations. The IDA countries are more numerous, carbon-emission-mitigation toolkit for road construction, and but have smaller economies, thus requiring less resources the institutional framework for efficient urban transportation. per country. The non-IDA countries generally have larger n Second is replication of specific activities and concepts economies and will require concomitantly higher proportional 58 in neighboring countries. For example, both the cookstove resources. program and the biodigestor program developed in Cambodia were replicated in Lao PDR, with specific adaptions built on Table 4-1: Indicative Operational Budget local Lao traditions. Allocation n Third are training and study tours to neighboring countries as a component of World Bank lending and grant investment IDA countries 40 percent activities. These activities have been crucial for capacity Middle-income countries 30 percent building in client countries and South-South learning, as well Regional work and 20 percent knowledge-sharing activities as for North-South learning. In addition to study tours, regional Selective engagement with India and 10 percent conferences to share lessons learned and exchange knowledge China were held, showcasing experiences from Bank investment activities and sometimes leading to future Bank investment activities. n Fourth is the production of regional strategic studies that The suggested target allocation per pillar is 50 percent for guide future World Bank investments. Among these studies are renewable energy, 25 percent for energy efficiency, and 25 the EAP strategic flagship reports entitled “Winds of Change” percent for access to energy. Cross-sectoral and regional to promote low-carbon, green growth, and “One Goal, Two activities, including green growth, climate change, poverty, Paths” to promote energy access in future Bank investments gender, and other social and environmental issues overlap in the region. among the three pillars (table 4-2). Strategy and Budget ASTAE seeks to continue its successful work in the EAP while Table 4-2: Indicative Operational Budget reengaging in the SAR. Consistent with its downstream-project Allocation by ASTAE Pillar and program-oriented focus, ASTAE will add RETF activities to the current BETF activities. Intervention at the national Renewable energy 50 percent level will remain the core intent, but specific attention will be Energy efficiency 25 percent paid to opportunities to scale country practices up to regional Energy access 25 percent status. At the same time, given the growth and importance 4 Under IDA15 guidelines, regional projects are operations (i) that involve three or more countries, all of which need to participate for the project’s objectives to be achievable; (ii) whose benefits, either economic or social, spill over country boundaries; (iii) where there is clear evidence of country or regional ownership that demonstrates commitment of the majority of participating countries; and (iv) that provide a platform for a high level of policy harmonization between countries, and importantly, that are part of a well-devel- oped and broadly supported regional strategy. Starting with IDA16, the three-country requirement for regional projects was relaxed to allow two countries, of which at least one is a fragile or conflict-affected country, to be eligible for financing for regional IDA projects. The three-country criterion is retained for all other IDA countries. ASTAE ANNUAL STATUS REPORT #19 Table 4-3 summarizes indicators ASTAE pledges to achieve for business plan FY2012–15, based on the lessons learned. Formal indicators are built on the basis of approved projects presented to the Bank’s Board of Directors during the business plan period. Only sustainable energy projects that benefit from ASTAE funding will be counted toward the pledged indicators. 4. Outlook for Fiscal 2011 and Beyond Additional indicators on possible cross-sectoral impacts may be considered. Table 4-3: Summary of Pledged Indicators for Business Plan FY2012–15 Direct indicators Unit Value pledged 1. Total World Bank lending catalyzed by ASTAE activities Project and program lending Million US$ 3,200 2. New capacity and increased generation of renewable electricity Renewable energy, capacity MW 1,500 Renewable energy, generation GWh/year 3,000 3. Electricity savings resulting from efficiency improvements 59 Energy savings, capacity MW equivalent 1,000 Energy savings, generation GWh/year 2,000 4. Households with access to modern energy services Access to electricity (new) Households 2,000,000 Access to electricity (improved) Households 1,000,000 Improved stoves for heating (cooking and space) Households 5,000,000 5. Avoided greenhouse gas emissions Direct CO2 avoided over 20 years Million tons 200 6. Countries benefiting from ASTAE support Number of countries Countries 15 n.a. Not applicable. “Direct“ refers to values achieved, or expected to be achieved, in the course of World Bank–funded projects benefiting from ASTAE support. Nepal AppendiXes 60 A rice huller runNING a hydro mill. © Ashden Awards ASTAE ANNUAL STATUS REPORT #19 Appendixes to Annual Status Report Appendix 1: ASTAE Countries at a Glance: Region Map and Pillar-Related Statistics The map in appendix figure 1-1 shows the partner countries where ASTAE operates in the South Asia and East Asia and Pacific Regions. Appendix Figure 1-1: ASTAE Presence in the South Asia and the East Asia and Pacific Regions Appendix 1 61 Ulaanbaatar M O N G O L I A Beijing Seoul REP. OF Kabul C H I N A KOREA AFGHANISTAN Islamabad P A C I F I C O C E A N PAKISTAN BHUTAN NEPAL Kathmandu Thimphu Dhaka I N D I A MYANMAR Hanoi Naypyidaw LAO BANGLADESH PDR Vientiane Philippine PHILIPPINES Sea THAILAND VIETNAM Manila Bangkok CAMBODIA Phnom- Penh MARSHALL ISLANDS SRI Colombo LANKA Koror Palikir Majuro M A L A Y S I PALAU Male A Kuala Lumpur FEDERATED STATES OF MICRONESIA MALDIVES Tarawa PAPUA KIRIBATI Jakarta I N D O N E S I A NEW GUINEA SOLOMON Funafuti Dili ISLANDS TIMOR-LESTE Port Honiara Moresby TUVALU SAMOA VANUATU Apia INDIAN OCEAN Port-Vila TONGA Suva FIJI Nuku’alofa IBRD 38347 JANUARY 2011 This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. Appendix table 1-1 provides data to illustrate the diversity of South Asia and East Asia and Pacific countries in the context of ASTAE pillars. These data are not updated regularly by any centralized entity, and some were not available for the most recent years. They are primarily sourced from the U.S. Department of Energy’s Energy Information Administration (EIA), internal World Bank data, and the International Energy Agency (IEA). Although the best comparisons could be made if all data were for the same year, data for the most current year are provided whenever possible. The footnotes to the table provide further details. Appendix Table 1-1: Background Data Providing Context to ASTAE Pillars Basic context First pillar: Second pillar: Third pillar: Greenhouse Region and renewable energy energy efficiency access gas emissions countries of Popula- GDP Installed Annual Installed Share of Energy Energy Popula- Electri- Annual energy- Annual per activity tion (WB capacity, electricity capacity, generation inten- Intensity tion fication related CO2 capita energy (WB 2008) electricity genera- renew- using sity in the in power without rate emission and related CO2 2008) (EIA 2008) tion (EIA able renewable economyb produc- electric- (World ranking (EIA emission 2008)a (EIA 2008) (EIA 2008) (EIA tion ity (WB Bank, 2008 and ranking 2008) (IEA 2008) 2010) IEA (2009) 2010) Million Billion MW TWh MW % tCO2 / tCO2 / Million % Million Out ton / Out US$ US$1,000 MWh ton of capita of GDP 189 189 East Asia AND PACIFIC Cambodia 14.7 11.2 386 1.4 18 4 0.48 1.150 11.2 24 4 132 0.28 165 China 1,330.1 5,926.6 797,078 3,221.2 186,820 17 2.21 0.760 13.3 99 7,707 1 5.82 59 Indonesia 228.2 706.6 27,802 141.2 5,801 14 1.16 0.730 79.9 65 415 16 1.73 116 Lao PDR 6.4 7.3 723 4.0 673 92 0.32 — 1.9 70 1 164 0.20 172 Mongolia 3.1 6.2 832 3.9 0 0 2.46 0.540 0.3 90 7 107 2.43 104 62 Papua New 6.4 9.5 699 3.0 271 30 0.81 — 6.0 5 122 0.82 139 Guinea Philippines 99.8 199.6 15,680 57.4 5,283 34 0.68 0.460 16.0 84% 72 45 0.74 144 Thailand 67.4 318.5 40,669 139.0 3,487 8 1.27 0.530 0.7 99 254 25 3.82 79 Vietnam 89.6 106.4 13,850 70.0 5,500 37 1.41 0.430 3.6 96 98 39 1.11 129 South Asia Afghanistan 29.1 17.1 489 0.8 — — 0.08 — 25.3 13 1 171 0.03 189 Bangladesh 156.1 100.2 5,453 32.9 230 4 0.75 0.570 79.6 49 55 55 0.36 158 Bhutan 0.7 1.5 1,505 7.1 1,498 99 0.35 — 0.3 56 — — 0.48 153 India 1,173.1 1,727.1 177,376 785.5 51,363 50 1.40 0.950 398.9 66 1,591 3 1.38 123 Nepal 29.0 12.0 717 3.1 660 99 0.35 0.030 16.5 43 3 134 0.12 179 Pakistan 184.4 176.9 19,769 87.7 6,464 31 1.08 0.430 70.1 62 140 33 0.77 141 Sri Lanka 21.5 49.6 2,645 8.9 1,360 46 0.45 0.380 4.9 77 13 92 0.59 149 Small Island Countries Fiji 0.9 3.5 216 0.9 95 71 0.74 — 0.2 75 2 144 2.56 99 Maldives 0.4 1.9 106 0.3 — — 0.94 — — 99 1 169 2.32 104 Solomon 0.6 0.7 14 0.1 0 0 0.55 — 0.5 18 — — 0.53 150 Islands Samoa 0.2 0.6 41 0.1 12 46 0.36 — — 97 — — 0.77 142 Timor-Leste 1.2 0.7 — — — — 0.98 — 0.9 22 — — 0.27 157 Vanuatu 0.2 0.7 12 0.0 0 0 0.28 — 27 — — 0.53 149 0.1 World index World 6,853.0 63,123.0 4,624,767 19,103.2 1,056,413 19 0.61 0.510 1,302.1 81 30,313 — 4.47 Equiv. 69 ASTAE ANNUAL STATUS REPORT #19 Appendix Table 1-1: Background Data Providing Context to ASTAE Pillars Basic context First pillar: Second pillar: Third pillar: Greenhouse Region and renewable energy energy efficiency access gas emissions countries of Popula- GDP Installed Annual Installed Share of Energy Energy Popula- Electri- Annual energy- Annual per activity tion (WB capacity, electricity capacity, generation intensity Intensity tion fication related CO2 capita energy (WB 2008) electricity genera- renew- using in the in power without rate emission and related CO2 2008) (EIA 2008) tion (EIA able renewable econo- produc- electric- (World ranking (EIA emission 2008)a (EIA 2008) (EIA 2008) myb tion ity (WB Bank, 2008 and ranking (EIA (IEA 2008) 2010) IEA (2009) 2008) 2010) Million Billion MW TWh MW % tCO2 / tCO2 / Million % Million Out ton / Out US$ US$1,000 MWh ton of capita of GDP 189 189 Developing Asia Share of Total Developing 50.2% 14.9% 23.9% 23.9% 25.5% — — — 56.1% — 34.2% — — —- Appendix 1 Asia share EAP share 27.0% 11.6% 19.4% 19.1% 19.7% — — — 10.3% — 28.3% — — — SAR share 23.3% 3.3% 4.5% 4.8% 5.8% — — — 45.7% — 6.0% — — — 63 Sources: • GDP: World Bank 2010 (current US$). • Electrification rate: World Bank and IEA data 2010. • CO2 emissions: EIA 2009. • Ranking of CO2 emissions: ASTAE, using EIA 2009 data. • All other indicators: EIA 2009 (or 2008 when 2009 not available). • Asia share of total: ASTAE calculations using all above-mentioned sources. Note: —Data not available. a. Countries with 2009 generation data available: China 3,446 TWh, India 835 TWh. b. Calculated using 2005 US$ market exchange rates. Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2011 Appendix table 2-1 links all ASTAE activities for which funds were disbursed in fiscal 2011 to the related World Bank projects, and shows their contribution to the global ASTAE indicators discussed in chapter 3. Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2011 ASTAE Activity Type and details of activity Indicators Installed Energy Access CO2 Origin of PERIOD TOTAL new renew- savings households indicator able-energy (elec- generation tric) capacity Bangladesh 1 Strengthenng PE: IBRD-IDA project - - - - - Rural Electrifica- • Provide technical support to the government to develop a time- tion Service bound action plan to meet the target of universal access by 2021 Delivery in Bangladesh Cambodia 2 Biodigester TA: Technical Assistance - - 17,500 (Im- 76,713 t/ ASTAE Private Sector • Define a service-delivery model and licensing procedures for pri- proved) year Proposal Development vate biodigester construction companies, support the emergence and World Phases I and II of such companies, and create a trade association Bank • Under Phase II, scale up the number of companies formed and Project In- ensure their long-term viability formation Document 64 CHINa 3 China Renew- PE: IBRD-IDA project - - - - - able Energy • Provide support to project implementation unit Scale-up Pro- • Provide support to Shanghai low carbon city gram (CRESP-II) 4 Urban Transport ESW: Economic and Sector Wok - - - - - Climate Change • Review energy and carbon footprint of urban transport Strategy • Disseminate best practices on energy-efficiency and energy- security concerns in the urban transport sector 5 Energy Effi- TA: Technical Assistance - - - 10 mil- World ciency Financing • Draft an operations manual for IBRD loan on-lending to Chinese lion tons Bank Promotion banks for energy efficiency projects (direct) Project • Determine eligibility of subprojects for financing, preparation 94 million Appraisal procedures and appraisal, implementation arrangements, and tons Document general terms of subloans (indirect) • Develop a draft monitoring and reporting system Fiji India 6 Energy Efficiency GE: GEF Grant - - - 4.8 million World in Small and Me- • Raise awareness and build capacity in energy efficiency in SMEs tons Bank dium Enterprises • Increase capacity of local bank branches to iden- Project (SMEs) tify and appraise energy-efficiency projects Appraisal Document 7 Electrification TA: Technical Assistance - - - - -- and Renewable • Skill gap analysis in renewable energy in the power Energy Study sector in India • Guidance note for a national action plan on rural feeder segre- gation Indonesia 8 Geothermal TA: Technical Assistance 260 MW - - 21 mil- ASTAE Power Support • Assist in review, design, and consensus building for policy reforms (direct) lion tons Proposal Program in the geothermal sector 6,000 MW (direct) and World • Enhance government’s capacity to integrate Clean (indirect) 500 mil- Bank Development Mechanism in geothermal development lion tons Project In- • Assist in identifying and preparing geothermal projects to be (indirect) formation financed by World Bank loan Document ASTAE ANNUAL STATUS REPORT #19 Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2011 ASTAE Activity Type and details of activity Indicators Installed Energy Access CO2 Origin of PERIOD TOTAL new renew- savings households indicator able-energy (elec- generation tric) capacity Indonesia 9 Thousand is- PE: IBRD-IDA project Not yet - Not yet - - lands solar PV • Rapid assessment of utility’s capacity to implement determined determined 1,000 islands electrification program • Inform utility of level of data information required to request World Bank support Lao PDR Appendix 2 10 Lessons from KP: Knowledge Product - - 37,700 - World the Lao rural • Identify factors that contributed to electrification successes (new, Bank electrification • Advise government on next steps toward universal access direct) Project program Appraisal Document Mongolia 65 11 Energy Sector PE: IBRD-IDA project - - - - - Project • Efficiency improvement in the electricity distribution system • Greater awareness and capacity among stakeholders Pacific Islands Philippines Solomon Islands 12 Tina River TA: Technical Assistance - - - - - Hydropower • Provide technical and methodological support to help the Development Solomon Islands government prepare a proposed hydropower Project development project Thailand Timor-Leste 13 Energy Service TA: Technical Assistance - - - - - Delivery Project •Preparation of the Rural Electrification Master Plan •Pre-investment study for project preparation 14 Rural Energy TA: Technical Assistance Access and Ef- • Help prepare an integrated pre-investment package with ficiency - Solar photovoltaic dissemination options - Candidate micro-hydro sites - Improved stoves models TONGA VIETNAM 15 Documentary on KP: Knowledge Product - - - - - Rural Electrifica- • Documentary on rural electrification in Vietnam prepared for tion television broadcasting Appendix 2: Link between Bank Projects and ASTAE Indicators in Fiscal 2010 Appendix Table 2-1: Link between Bank Projects and ASTAE Indicators, FY2011 ASTAE Activity Type and details of activity Indicators Installed Energy Access CO2 Origin of PERIOD TOTAL new renew- savings households indicator able-energy (electric) generation capacity VIETNAM 16 Rural Electrifica- TA: Technical Assistance - - - - - tion Impact • Analysis of the impact of rural electrification using data Studies from two field surveys conducted in 2002 and 2005 • Improvement of implementation design of rural electrifica- tion projects 17 Renewable TA: Technical Assistance 180 MW - 150,000 8.4 mil- World Bank Energy Develop- • Preparation and supervision of the Vietnam Renewable (Improved) lion tons Project ment Project Energy Development Project Information Document and ASTAE Proposal 66 18 Support for the TA: Technical Assistance - - - - - Vietnam En- • Provide advisory assistance and capacity building to Minis- ergy Efficiency try of Industry Demand Side • Conduct workshops on business collabora- Management tion between Vietnamese and international ESCOs program • Identify opportunities for expansion of commercial energy- efficiency business 19 Rural Distribu- PE: IBRD-IDA project - - - - - tion Project • Support the preparation of plans for completing govern- ment of Vietnam’s program for universal electrification • Build capacity of the power companies to act as indepen- dent participants in the power market 20 System Efficiency TA: Technical Assistance - - - - - Improvement, • Policy and regulatory work to enable small hydro invest- Equitization and ments Renewables Regional Projects, Outreach and Knowledge Sharing 21 Regional: KP: Knowledge Product - - - Up to 200 ASTAE Pro- Carbon Emission • Analyze activities associated with design, construction, and tons/km posal estimate Mitigation Tool- rehabilitation of highway projects and identify those sensi- built and World kit for Highway tive to energy consumption and carbon emissions Bank Project Construction • Estimate carbon footprint and provide mitigation options Information Document 22 Regional: East KP: Knowledge Product - - - - - Asia Pacific Flag- • Analysis of regional potential of renewable-energy sources ship Study and energy-efficiency improvements • Review of existing policies and identification of gaps • Recommendations for regional policy development ASTAE ANNUAL STATUS REPORT #19 INDONESIA Appendix 2 67 © Curt Camemark/ World Bank Appendix 3: ASTAE Donors, Resource Use, and Funding Events ASTAE Donors ASTAE Resource Use ASTAE currently relies on the Netherlands and Sweden as ASTAE used donor funds totaling US$2,603,947 in fiscal 2011. donor countries for its budget, as well as on matching funds Complementary World Bank resources for ASTAE-supported from the World Bank (see the section “ASTAE Resource Use” projects totaled US$1,301,789 in fiscal 2011. below). Previous ASTAE donors include Australia, Canada, ASTAE has used US$34.3 million in donor funds since 1992, Finland, Japan, Switzerland, the United Kingdom, and the an amount matched by the World Bank with US$32.2 million United States. during the same period. Details of resource use by year are in appendix table 3-1. The Netherlands: Ministry of Foreign Affairs (Development Cooperation) ASTAE’s principal funding source is currently the Netherlands, Appendix Table 3-1: Resource Use, World Bank through its Ministry of Foreign Affairs (Development and Donors, FY1992–2011 Cooperation). The Netherlands is a founding donor as well as a core ASTAE donor, and since 1993 has contributed reliably to Donors World Bank Total ASTAE’s capacity to engage in sustained activities. The funding YEAR US$ % US$ % US$ % agreement for the business plan period ending in fiscal 2011 FY92 108,000 32 226,400 68 334,400 100 was signed in 2006 for US$7.4 million. FY93 827,087 66 419,100 34 1,246,187 100 The Web site for the Ministry of Foreign Affairs is http:// FY94 1,399,635 67 688,100 33 2,087,735 100 68 www.minbuza.nl/en. FY95 1,309,063 56 1,046,000 44 2,355,063 100 FY96 2,057,058 56 1,618,924 44 3,675,982 100 Sweden: Swedish International Development Agency FY97 1,705,817 59 1,197,128 41 2,902,945 100 Sweden joined ASTAE donors in 2007 with a grant of SKr 15 FY98 1,617,777 59 1,126,683 41 2,744,460 100 million (US$2.0 million), which enabled the extension of ASTAE FY99 1,782,576 61 1,156,346 39 2,938,922 100 activities under the business plan and to regional and cross- FY00 2,627,480 63 1,524,004 37 4,151,484 100 sector activities. FY01 955,281 46 1,106,035 54 2,061,316 100 The Web site for the Swedish International Development FY02 2,108,541 66 1,106,035 34 3,214,576 100 Agency is http://www.sida.se/English/. FY03 2,205,111 64 1,239,633 36 3,444,744 100 FY04 1,014,358 25 3,013,893 75 4,028,251 100 FY05 2,704,306 44 3,450,703 56 6,155,009 100 FY06 1,959,983 38 3,169,070 62 5,129,053 100 FY07 1,216,589 30 2,827,968 70 4,044,557 100 FY08 1,847,757 45 2,258,369 55 4,106,126 100 FY09 2,177,200 53 1,915,042 47 4,092,242 100 FY10 2,123,893 54 1,820,321 46 3,944,214 100 FY11 2,603,947 67 1,301,789 33 3,905,736 100 TOTAL 34,351,459 52 32,211,543 48 66,563,002 100 ASTAE ANNUAL STATUS REPORT #19 Appendix Table 3-2: Principal ASTAE Funding Events since 2004 Year Month Agency Event Amount (US$) 2004 March ASTAE Donors Meeting # 13 March U.K. DFID Tranche #6 363,351 March Canada CIDA Tranche #2 563,562 May Netherlands Commitment ASTAE Phase 3 Funding 2004-6 (€ 3.3) (4,000,000) October Canada CIDA Tranche #3 591,871 2005 January Netherlands Dutch Partnership Trust Fund Phase 3 Tranche # 1 1,454,500 February Canada CIDA Tranche #4 202,544 March ASTAE Donors Meeting # 14 May Netherlands Commitment for ASTAE II Funding 2006 - 2008 Appendix 3 2006 March ASTAE Donors Meeting # 15 May Netherlands BNPP Agreement signed for ASTAE II, 2006 - 2009 (7,424,400) July Netherlands BNPP Tranche #1, ASTAE II 2,598,540 2007 March Germany ASTAE Donors Meeting# 16 Sweden Commitment by Swedish International Development Agency Commitment (SKr 1,868,725 69 15 million eq. 2,355,000 USD at that date) December Netherlands BNPP Tranche #2 - ASTAE II 1,113,660 2008 February USA ASTAE Donors Meeting # 17 February Sweden First Tranche of Sida Commitment 553,435 June Netherlands BNPP Tranche #3 - ASTAE II 1,856,069 2009 April USA ASTAE Donors Meeting # 18 February Sweden Second Tranche of Sida Commitment 436,620 Australia Commitments to fund projects in Cambodia and Lao PDR, starting in FY10 June Netherlands BNPP Tranche #4 - ASTAE II 1,856,069 2010 April USA ASTAE Donors Meeting # 19 January Sweden Third Tranche of Sida Commitment 389,414 June Sweden Fourth Tranche of Sida Commitment 489,256 December Netherlands ASTAE-II Trust Fund closing 2011 February Sweden ASTAE Sida Trust Fund closing February World Bank ASTAE Multi-Donor Trust Fund (MDTF) created March USA ASTAE Donors Meeting # 20 March Netherlands Ministry of Foreign Affairs commitment to MDTF for $12 million over four years confirmed April Netherlands ASTAE-II Trust Fund end of disbursements June Sweden ASTAE Sida Trust Fund end of disbursements Appendix 4: ASTAE-Supported World Bank Investment Projects in EAP Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Cost ($million) Country Projects Primary Project Component End date Total Source of financing (Est.) cost IBRD/ IDA GEF Govt. Private Other Projects Under Implementation FY02 1 Vietnam System Efficiency Improvement, 06/02–FY12 24.5 17.2 4.5 2.8 Renewable energy and DSM Equitization, and Renewables FY04 2 Philippines Rural Power 12/03-FY12 26.7 10.0 9.0 0.2 7.5 Renewable energy for rural ap- plications 3 Cambodia Rural Electrification and Trans- 12/03-FY12 32.0 16.0 5.8 10.2 Renewable energy for rural ap- mission plications 4 Philippines Power System Loss Reduction 06/04-FY14 62.3 12.0 0.3 50.0 Rural electrification & efficiency FY05 5 Vietnam Rural Energy II 11/04-FY14 329.5 220.0 5.3 70.0 35.0 Renewable energy for remote communities 6 China Heat Reform and Building Ef- 03/05-FY12 52.6 18.0 0.9 33.7 Energy efficiency ficiency FY06 7 China Renewable Energy Scale-Up 01/06-FY12 132.4 86.3 30.1 16.0 Wind farm and small hydro Program Phase 1B 8 Lao PDR Lao PDR Rural Electrification 04/06-FY12 36.3 10.0 3.7 8.2 14.3 Renewable energy for rural Phase I (SPRE II) application FY07 9 Mongolia Renewable Energy and Rural 01/07-FY12 23.0 3.5 3.5 10.0 6.0 Renewable energy and rural Electricity electricity access 70 10 Timor-Leste Gas Seep Harvesting 03/07-FY12 1.5 0.9 0.6 Gas seep for power generation 11 Timor-Leste Energy Service Delivery 06/07-FY12 8.5 4.5 2.0 2.0 Loss reduction, RE development, and community-based access 12 Pacific Sustainable Energy Financing 05/07-FY12 58.5 9.5 20.2 22.1 6.7 Renewable energy scaling up Islands FY08 13 Indonesia Geothermal Power Generation 05/08-FY13 9.0 4.0 5.0 Geothermal power scaling up Development and capacity building 14 China Energy Efficiency Financing 05/08-FY13 593.6 200.0 13.5 6.3 373.8 Energy efficiency for industry 15 China Liaoning Third Medium Cities 05/08-FY13 375.9 191.0 184.9 Improve efficiency of heating Infrastructure and gas services 16 Vietnam Rural Distribution 05/08-FY12 204.2 150.0 54.2 3.0 Electricity network efficiency improvement FY09 17 Solomon Solomon Islands Sustainable 07/08-FY13 4.5 4.0 0.5 Electricity loss reduction and Islands Energy increased access 18 Philippines Additional Financing for Rural 04/09-FY13 48.4 40.0 0.5 7.9 Renewable energy for rural ap- Power plications 19 Vietnam Renewable Energy Development 05/09-FY15 318.0 202.0 64.0 49.7 2.3 Increase RE share in electricity mix, TA and lending 20 China Thermal Power Efficiency 05/09-FY16 109.0 19.7 15.5 73.8 Efficient dispatch and increased thermal plants efficiency 21 Vietnam Rural Energy II - Additional 05/09-FY16 250.6 200.0 38.8 11.8 Improved and new electricity Financing access FY10 22 China Energy Efficiency Financing II 06/10- FY15 101.6 100.8 0.8 Catalyze commercial investments in industrial energy efficiency 23 India Financing Energy Efficiency in 05/10-FY14 57.6 11.3 0.3 46.0 Increased energy efficiency in SMEs small and medium enterprises 24 Lao PDR Rural Electrification II 01/10-FY14 37.6 24.4 1.8 4.0 3.4 4.0 Increase rural households’ access to electricity 25 Vietnam System Efficiency Improvement, 06/10- FY13 3.5 3.5 Renewable energy and demand- Equitization and Renewables, side management additional financing Projects Under Implementation FY11 No ASTAE-supported Bank projects were approved in FY11 Total Current Fiscal Year - - - - - Total Projects under Implementation 2,848 1,484 123 519 620 159 ASTAE ANNUAL STATUS REPORT #19 Appendix table 4-1 lists World Bank projects that have benefited from ASTAE support since its inception. It provides details on ASTAE’s World Bank investment leverage (illustrated in figure 1-2). Appendix Table 4-1: ASTAE-Supported World Bank Investment Projects Approval Sustainable Energy Project Cost ($million) Country Projects Primary Project End date Total Source of financing Component (Est.) cost IBRD/ IDA GEF Govt. Private Other Closed Projects 1 Lao PDR Provincial Grid Integration 10/92–01/00 0.9 0.9 DSM, institution building 2 Thailand Distribution System and 04/93–06/00 59.3 8.0 20.3 31.0 DSM, capacity building Energy Efficiency 3 Indonesia Second Rural Electrification 02/95–09/00 19.3 13.3 6.0 Minihydro, geothermal re- source assessment, and TA 4 Vietnam Power Development 02/96–06/00 1.6 0.5 1.1 Renewable energy capacity building 5 Indonesia Solar Home Systems 01/97–06/04 3.4 0.1 2.3 1.0 Solar home systems and TA 6 Thailand Metropolitan Distribution 06/97–06/04 4.0 2.5 1.5 DSM, capacity building Reinforcement 7 Lao PDR Southern Provinces Rural Elec- 03/98–06/04 2.2 1.0 0.7 0.5 Solar battery charging and Appendix 4 trification microhydro projects 8 China Passive Solar Heating for 06/01–06/04 1.5 0.8 0.8 Energy efficient Rural Health Clinics building design 9 China Energy Conservation 03/98–6/06 150.8 63.0 22.0 7.0 54.3 4.5 Energy efficiency, TA 10 Vietnam Transmission, Distribution, 01/98–06/07 3.3 0.5 2.8 DSM capacity building, and Disaster Reconstruction equipment standards 71 11 China Renewable Energy Develop- 01/98–06/07 205.4 13.0 27.0 165.4 Wind farms, PV, PV technol- ment ogy improvement 12 Vietnam Rural Energy I 05/00–12/06 2.5 1.0 1.5 Renewable energy, TA, & pilot minihydro 13 China Hebei Urban Environment 06/00–06/08 5.0 4.0 1.0 Energy efficiency in water utilities 14 China Energy Conservation II 10/02–06/10 242.5 26.0 216.5 ESCO market development 15 Vietnam Demand-Side Management 06/03–06/10 18.6 5.5 1.2 6.7 5.2 DSM support 16 China Renewable Energy Scale-Up 06/05-09/10 336.0 87.0 40.2 142.0 67.0 Renewable energy and Program energy efficiency 17 Papua New Teachers Solar Lighting 06/05-08/10 2.9 1.0 0.1 1.7 0.1 Renewable energy (PV) for Guinea Project teachers in rural areas Total Closed Projects 720 97 92 40 444 48 VIETNAM A biogas stove fueled with biogas made from biodigested waste. 72 © Ashden Awards ASTAE ANNUAL STATUS REPORT #19 Appendix 4 73 74 © Barefoot Photographers of Titonia The World Bank The World Bank Group Asia Sustainable and Alternative Energy Program 1818 H Street NW Washington, DC 20433 USA www.worldbank.org/astae