Sharing Business Models and Scaling up

Mini Grids in Asia and Pacific

- Introduction-

Jiwan Acharya Senior Climate Change Specialist (Clean Energy) Sustainable Infrastructure Division Regional and Sustainable Development Department Asian Development Bank

Soaltee Crowne Plaza, Kathmandu, Nepal

6 and 7 February 2013

The pink region indicates

population density. The white

region indicates where

modern energy is accessible.

Energy poverty is a global

problem that demands a

global solution.

Energy Poverty In Asia and the Pacific

4.1 billion total population of

Asia and the Pacific*

*UNESCAP.2010.Statistical Yearbook for Asia and the Pacific 2009.

1.9 billion people in Asia and

the Pacific depend

on burning traditional

biomass for energy*** *

***IEA.2011.World Energy Outlook 2011.

670 million people in developing

Asia have no access

to basic electricity

services**

**IEA.2011.World Energy Outlook 2011.

3

ADB’s response: Energy for All

ADB Energy for All’s goals are drawn from ADB’s 2009

Energy Policy which sets as one of its pillars: “maximize

energy for all, especially for the rural poor.”

• Mainstream access to energy for the poor within ADB’s

operations

• Increase ADB investment in access to energy projects

• Develop strategic partnerships and alliances with other

stakeholders

Energy for All was launched in 2008 to develop and

mainstream approaches for scaling up energy

access to affordable, modern, clean energy among

the region’s poor.

ADB’s investment in energy access increased to a

cumulative total of USD 3.5 billion from 2008 to

2012, which is expected to raise new connections

to modern energy to nearly 11 million HHs

TA size - Around $10 m (supported by

Governments of Japan, Austria, Australia, Norway,

Denmark and Switzerland)

Energy for All Program objectives

Energy for All Partnership Structure

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COOKING LIGHTING ELECTRICITY FOR

ENTERPRISE DEVELOPMENT

SECRETARIAT

ENERGY FOR ALL PARTNERSHIP

COLLABORATION WITH

OTHER PROGRAMS

STEERING COMMITTEE

Providing energy access to 100 million by 2015

Energy for All Partnership

Knowledge

Capacity building

Project development

Linkage

Multi-stakeholder, regional partnership with a goal of connecting

100 million new people to modern energy by 2015

Regional TA on promotion of mini grids under Energy for All

Develop viable business models for scaling up

Pilot Demonstration in 2 – 3 countries

Capacity Development for roll out

Funding support from AusAID (A$ 2 million)

EfA Partnership: Mini grid working group

Mobilizing OBA/results based financing

Replication and scaling up through ADB’s regular lending and leveraging other sources

Supported by

ADB’s Activities on Mini Grids

Objectives of the Workshop [Jointly organized by AEPC and ADB)

• Share best practices of the most promising models for

scaling up Mini Grid systems in selected developing

member countries (DMCs).

• Showcase how Mini Grid barriers can be addressed and

offer a way forward for deploying successful models at

scale.

• Learn about different business models.

• Identifying and detailing the key components of a private

sector led mini-grid program required to achieve an

attractive investment profile for both financiers and EPC,

ESCOs

Topics covered

• Session 1: Identification of barriers and business models

in mini grid system.

• Session 2: Public sector led mini grid programs and

policies.

• Session 3: Investor perspectives on scaling up mini

grids.

• Session 4: Private project developers best practices.

• Session 5: Technological breakthroughs in Mini grid.

• Session 6: Smart grid and Green telecom towers.

• Session 7: Emerging business models.

Expected Outcome

• Increased awareness on ways to mobilise private sector

finance in energy access projects

• Increased awareness on latest developments on mini

grid technologies and applications

• Sharing of existing case studies and best practices of

mini grid systems

• Sharing mini grid business models in Nepal and their

replication in other DMCs

• Highlights of the private and public sector perspectives

on mini grids

Develop “Friends of Mini Grids”

Energy for All

For more information: Jiwan Acharya Senior Climate Change Specialist (Clean Energy) +632 632 6207 jacharya@adb.org http://beta.adb.org/sectors/energy/programs/energy-for-all-initiative

http://www.energyforall.info