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Jiwan Acharya, Asian Development Bank

ADB's Energy for All Projects Development Facility

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Jiwan Acharya, Asian Development Bank

  1. 1. BRIDGING THE INVESTMENT GAP A Programmatic Approach To Mobilizing The Private Sector To Achieve The 2030 Goals JIWAN ACHARYA Senior Climate Change Specialist (Clean Energy)
  2. 2. 4.2 Billion Population in Asia People without access to clean cooking 615 Million People without access to electricity 1.8 Billion STATUS OF ENERGY ACCESS Asia-Pacific
  3. 3. ENERGY FOR ALL PROGRAM EST. 2008 Increase ADB’s investment in energy access projects and enterprises Scale up access to affordable, modern and clean energy among the regions poor using RE technologies INTERNALGOAL EXTERNALGOAL Develop strategic partnerships and alliances with other stakeholders The Energy for All Partnership was created in 2009, with a target of providing energy access to 100 million people by 2015. ADB’s RESPONSE: Energy for All Program
  4. 4. $400 Million Energy Access Investment In 2014 New connections to electricity for 1.62 million households Improved electricity service to about 600,000 households The switchover of 270,000 households to improved cookstoves PROGRESS REPORT 2014 Accomplishments
  5. 5. USD 5.2 billion Total ADB investment in energy access (2008-2014) 86.4 million Number of people who will benefit from ADB’s energy access investments 0,00 1,00 2,00 3,00 4,00 5,00 6,00 0 2.000.000 4.000.000 6.000.000 8.000.000 10.000.000 12.000.000 14.000.000 16.000.000 18.000.000 20.000.000 2008 2009 2010 2011 2012 2013 2014 Improvedenergyaccess(households) EnergyAccessInvestment(inbillion$) Year Impact of ADB's investments on enegy access (2008-2014 Cumulative) Investment Household PROGRESS REPORT 2008 – 2014 Accomplishments
  6. 6. • The Partnership was created in 2009 to address energy poverty at the regional scale • TARGET: Provide energy access to 100 million people in Asia Pacific by 2015 • 99% of target achieved by end 2014! ENERGY FOR ALL PARTNERSHIP
  7. 7. FINANCING ENERGY ACCESS Barriers to Multilateral Development Agencies Current tools & mechanisms not designed for small transactions Energy access deals are too small, with high transaction cost Value and high impact of small scale transactions not always appreciated Requires buy-in and strong backing of governments for publicly financed energy access projects MULTILATERAL DEVELOPMENT BANKS ENERGY STARTUPS Financing at market rates too expensive for commercial viability
  8. 8. ENERGY FOR ALL PROGRAM Project Development Facility
  9. 9. ENERGY FOR ALL PROGRAM Project Development Facility
  10. 10. Lack funds for project preparation No track record of successful pilots Weak balance sheet No strong collateral for loans No working capital loans No access to network of financiers/ early stage investors ENERGY STARTUPS HOUSEHOLDS WHO NEED ENERGY FINANCING ENERGY ACCESS Barriers to Energy Access Enterprsies
  11. 11. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development
  12. 12. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development 154 Business Development Workshop
  13. 13. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development 154 93 Investor Forum Customized Mentoring Business Development Workshop
  14. 14. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development 154 93 11 Investor Forum Customized Mentoring Business Development Workshop
  15. 15. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development 154 93 11 3 Investor Forum Customized Mentoring Business Development Workshop
  16. 16. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development Investor Forum Customized Mentoring Business Development Workshop
  17. 17. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development Investment Demand Curve
  18. 18. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Phases of Development Investment Demand Curve
  19. 19. © Asian Development Bank 2015 FINANCING ENERGY ACCESS Phases of Development
  20. 20. Do not finance at prohibitive rates No experience in clean energy technologies/ energy access projects No financing for end consumers to acquire clean energy appliances No track record of early stage companies LOCAL BANKS / FINANCE INSTITUTIONS Revenue stream from bottom of pyramid too risky for project finance ENERGY STARTUPS FINANCING ENERGY ACCESS Barriers to Investors
  21. 21. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors
  22. 22. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Grants and Donations Government Grants Private R&D Crowd Funding
  23. 23. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Grants and Donations Government Grants Private R&D Crowd Funding Private Equity Venture Capital Impact Investment
  24. 24. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Grants and Donations Government Grants Private R&D Crowd Funding Non-Bank Finance Companies Microfinance Institutions Private Equity Venture Capital Impact Investment
  25. 25. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Commercial Banks Grants and Donations Government Grants Private R&D Crowd Funding Non-Bank Finance Companies Microfinance Institutions Private Equity Venture Capital Impact Investment
  26. 26. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Commercial Banks Grants and Donations Government Grants Private R&D Crowd Funding Non-Bank Finance Companies Microfinance Institutions Private Equity Venture Capital Impact Investment Capital Markets Public Stocks Bonds
  27. 27. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors
  28. 28. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Investment Supply Curve
  29. 29. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Investment Supply Curve
  30. 30. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Investment Supply Curve Investment Demand Curve
  31. 31. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors Deal closure happens a when a company at the right stage of maturity meets an investor with the right appetite for risk.
  32. 32. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors 11 Deal closure happens a when a company at the right stage of maturity meets an investor with the right appetite for risk.
  33. 33. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors One way to meet the investment deficit of USD 36 billion is to increase investment supply…
  34. 34. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors One way to meet the investment deficit of USD 36 billion is to increase investment supply… The PDF does this by providing risk sharing mechanisms to investors who are serious about energy access.
  35. 35. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors …and improve investment demand.
  36. 36. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors …and improve investment demand. The PDF does this by providing customized mentoring support and credit enhancement schemes to energy access enterprises.
  37. 37. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors
  38. 38. Project DevelopmentP2IdeationP1 Startup OperationsP3 Expansion and ReplicationP4 Market DominanceP5 FINANCING ENERGY ACCESS Types of Investors 11++
  39. 39. 11 DEALS CLOSED 32 INVESTMENT FACILITATION 09 CUSTOMIZED MENTORING 93 BUSINESS DEVELOPMENT © Asian Development Bank 2015 IND; 58 NEP; 43 INO; 8 PHI; 10 CAM; 5 TIM; 1 THA; 1 PAK; 1 BAN; 7 TON; 1 LAO; 1 SIN; 1 MYA; 17 Geographic Distribution of Projects PROGRESS REPORT Energy for All Project Development Facility
  40. 40. © Asian Development Bank 2015 ENERGY FOR ALL Key Donors
  41. 41. Jiwan Acharya Senior Climate Change Specialist (Clean Energy) Office: +632 632 6207 Email: jacharya@adb.org Website: http://www.energyforall.info CONTACT US!

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