8th ADB Business Opportunities Fair

ENERGY SECTOR GROUP SDCC

Dae Kyeong Kim
Senior Energy Specialist (Smart Grid)

22 March 2017
 OUTLINE
Context
o ADB Strategy 2020
o 2009 Energy Policy

Overview of the Sector

o ESG Priorities and Targets
o Four Strategic Dimensions
o Energy Sector Portfolio
o Share to ADB Portfolio

Programs and Approaches

o Clean Energy
o Energy for All
o Reform and Capacity Development
 ADB Strategy 2020
Development Agendas
Inclusive growth
Environmentally sustainable growth
Regional integration
Drivers for change
Private sector development
Good governance
Gender equity
Capacity development
Partnerships

3
 2009 ENERGY POLICY
Prioritizes sustainable energy and low-
carbon development
Promoting energy efficiency and renewable
energy
Maximizing access to energy
Promoting energy sector reform, capacity
building and good governance
ESG PRIORITIES AND TARGETS

Climate Mitigation
Expand clean energy investment financing to $3 billion by 2020

Deployment of new and advanced technologies

will help to achieve energy access
and climate mitigation finance targets

Energy for All

100% electricity access by 2025-2030
 FOUR STRATEGIC DIMENSIONS
Rooted in the four strategic dimensions:
Sustainable Development Goal 7
(Affordable and Clean Energy)

Countrys NDC ADBs

under the Paris Agreement climate financing targets

ADBs added value

(i) Sustainable energy mix considering cost trend of different sources of energy
(ii) application of new and advance technologies in project design;
(iii) developing innovative business models and financing instruments that
create markets for clean energy.
ENERGY SECTOR PORTFOLIO (2010-2016)
20.0

18.0

1.9
16.0
3.5 2.1
14.0
1.7 2.2 1.3
2.6 1.0
12.0 1.5
1.5 1.5 1.6 1.3
1.7
10.0

8.0
13.4
6.0
10.7 10.9 11.3
10.5 10.4
9.6
4.0

2.0

0.0
2010 2011 2012 2013 2014 2015 2016

Other Energy Sector Projects (OCR & ADF, in $ billion)

Clean Energy Investments in the Energy Sector (OCR &ADF, in $ billion)
Non Energy Projects (OCR & ADF, in $ billion)
SHARE TO ADB PORTFOLIO (2010-2016)
120%

100%
8% 10%
12% 15% 11%
19% 21%
11% 10%
11% 12%
80% 11%
12% 9%

60%

40% 82% 81%

77% 73% 77%
69% 69%

20%

0%
2010 2011 2012 2013 2014 2015 2016

Share of non-energy projects to total ADB lending, in % Share of clean energy investments in the energy sector, in %
Share of other energy sector projects, in %
CLEAN ENERGY
BILLION
ADB responded to Asias high appetite for clean energy
Mature technologies and an improving policy landscape led to
high investments

3.00
2.48 2.54
2.36 2.36 2.43
2.50
2.13

2.00 1.75 1.76 2.0 2.0 2.0 2.0

1.8
1.31 1.6
1.50
1.4
1.2
1.00 0.76 1.0
0.66 0.67

0.50

0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CE Investment Target
 ENERGY FOR ALL
$ 742 million
invested in 2016

$ 7.2 billion total

Improved energy access (households)

Energy Access Investment (in billion $)

25000000 8
ADB investment in
7
20000000
energy access
6 (2008-2016)
5
15000000

4 22 million
10000000
households will
3
have improved
2 energy access
5000000
1
due to ADB
investments since
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016
2008
Year

ADB Investment ($billion) Energy access (houseold)

REFORM AND CAPACITY DEVELOPMENT

ADB continues to provide support in the areas

of capacity development, research and policy
advisory to its DMCs through technical
assistance.

In 2016, total technical assistance reached $ 42

million to support energy sector policy reform,
development of new technologies, scaling up of
renewable energy and project preparation.
 More to follow:
ADBs Lending and
Non-Lending Pipeline by the Regional
Departments
 Contact Person
Dae Kyeong Kim
Senior Energy Specialist (Smart Grid)
dkkim@adb.org