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FPF and Cooperation Funds ACM 2012 Manila, Philippines 12 March 2012
The most suitable regions for utility-scale projects are deserts or otherwise degraded lands with little alternate use
Grid accessibility and transmission issues Steep up-front costs of solar technology during transition stage High borrowing cost and lack of access to long-term capital Distorted risk perception of financiers Lack of enabling environment (e.g., clear regulatory signals, FIT and/or PPA regimes, creditworthy off-taker) Weak institutional capacity (e.g., lack of strategic capacity-building, training activities, and parallel R&D programs) Inadequate knowledge sharing leading to information and perception gaps
Some factors in distorted risk perceptions include lack of exposure to solar power generation projects among financiers, very few project-finance solar projects in the region, high dependence on subsidies, and inadequate insolation levels
Asia Solar Energy Initiative: bridging the gap with 3 GW in 3 YR ASEI overall objective:
Create a virtuous cycle of solar energy investments in Asia and the Pacific toward achieving grid parity for DMCs to benefit from a clean, renewable energy source
Strategic interventions:
Intervention Knowledge management Solar project identification and development Innovative financing (+ longterm debt financing) Flagship activity Asia Solar Energy Forum 3 GW solar power capacity by 2013 Asia Accelerated Solar Energy Development Fund (AASEDF) (+ ADB + other donor funds)
ASEI flagship: Asia Solar Energy Forum (ASEF) ASEF overall objective:
Help address barriers to, and accelerate the development of, solar energy in Asia and the Pacific through sharing and processing knowledge on technology, standards, experiences, policies, incentives, risk mitigation, long-term financing, and approaches to exploit economies of scale
Strategic interventions:
Knowledge sharing and consultations Policy and regulatory framework development Capacity development for local stakeholders
1st Meeting, Manila, 5-6 Jul 2010: over 200 participants from 34 countries / territories 2nd Meeting, Tokyo, 1-3 Dec 2010: Over 300 participants from 38 countries / territories 3rd Meeting, Bangkok, 30-31 May 2011: 375 participants from 34 countries / territories 4th Meeting, Jodhpur, upcoming 24-25 April 2012 14 members (+ ADB) of the Preparatory Committee; 6 of 14 serve as interim Governing Board 80 membership applications received, comprising 45 regular and 35 associate members Founding Meeting concluded; charter and other legal documents signed; Certificate of Approval received from Tokyo Metropolitan Government ASEF Information Portal prototype developed
The decision to constitute the ASEF as a non-profit institution was arrived at during its inaugural meeting in Manila on 5-6 July 2010
MW
5.0 1.8 4.0 6.0 20.0 10.7 40.0 500.0 130.0
Description
Solar PV Wind-solar hybrid Solar home systems CSP Solar PV BIPV Solar PV Solar transmission Various solar investments Solar home systems Mini-grids Solar PV rooftop generation Solar PV
Total MW
10.8
Source: ADB estimates. BIPV = building integrated photovoltaic, CSP = concentrating solar power, DMC = developing member country, MW = megawatt, PV = photovoltaic
36.7
670.0
5.5
0.6 117.5
5.5
0.6 117.5 841.1
567-kW capacity rooftop solar power plant atop ADB headquarters in Manila, Philippines
ADB signed the loan for the construction of two solar power plants (9.43 MW and 34.5 MW) in Ayutthaya, Thailand, shouldering the back-end risk of the commercial bank facility through an innovative risk participation structure
Installation of 6.5 MW of solar panels at the railway station of the Shanghai Hongqiao airport, PRC
Notes: AASEDF = Asia Accelerated Solar Energy Development Fund ACEF = Asia Clean Energy Fund CCSF = Carbon Capture and Storage Fund CEF = Clean Energy Fund
Framework Agreements
Investments / financing frameworks
Risk-sharing arrangements
e.g. credit guarantees with first loss coverage
Delivery Modality
Grant Component of Investments Technical assistance linked to loan Technical assistance Direct Charges Loans** Risk-transfer products** Guarantees**
* Coverage limited to capital grants for goods and services **For non-grant use of funds
* Coverage limited to capital grants for goods and services **For non-grant use of funds
Thank You
Seethapathy Chander Chair, Energy Committee and Co-Chair, Energy Community of Practice Asian Development Bank <schander@adb.org>
FPF and Cooperation Funds ACM 2012 Manila, Philippines 12 March 2012