priyantha wijayatunga - policies for clean energy development in south asia

7/31/2019 Priyantha Wijayatunga - Policies for Clean Energy Development in South Asia

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Policies for Clean Energy

Development in South AsiaPriyantha D C Wijayatunga, PhD

Senior Energy Specialist

Asian Development Bank

7th Asia Clean Energy Forum

8 June 2012


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Outline

Introduction

Current Status

Way forward

Final Remarks

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Energy a key

contributorAn essential input to maintain and improve living

standards Poor and vulnerable

To develop socioeconomic Infrastructure Over 50% of the population rely on traditional

biomass for cooking in South Asia No electricity access to about 700million

Household electrification varying from 50-100% Barrier to industrialization Poverty trap

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Economic Growth

South Asia Region had a growth of 5.75%

4

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

India

Bhutan

Bangladesh

SriLanka

Nepal

Maldives

AverageGrowthRate(%

)


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Energy and Economy

Economic growth stronglycoupled with energy sectorgrowth

Energy demand will continue

to increase with 90% of theincrease coming fromdeveloping world

Even with environmentalsustainability kept in mind,incremental power supply Continue with Coal and Gas

domination About 50% from renewable

energy

South Asia needs to fall inline with this reality

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Justification for RE .

Energy Security

SA a net importer of fossil fuels

Price volatility of fossil fuels

Significant portion of import bill

Increasing trend of price

Burden on the national budget

Less adverse local environmental impacts

High portion of local value addition

Increased opportunities for local investors

Closer to rural communities

Increased opportunities for ruralelectrification

Ability for rural communities to participate

Less technical losses


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Viability ..

Hidden subsidies for fossil fuels Fossil fuel subsidies took $409 billion in

2010

Renewable energy took only $66 billion in

2010

Environmental and social costs notinternalized

To create a level playing field for RE

Policy and regulatoryinterventions

Subsidies

Other incentives

RE subsidies will increase to$ 250 billion by 2035

About 50% in developingcountries


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Current Policies

Renewable Energy Polices and Targets

Bhutan Renewable Energy Policy 2011 Long termobjectives

enhance energy security and broaden the energyportfolio;

conserve the environment and reduce GHG emissions;

enhance socio-economic development

Deals with a range of measures such as institutionalarrangements, allocation of resources, water charges,royalty, ownership, investment arrangements etc

20MW by 2020 (Solar, Wind, Biomass and other)


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Current Policies .

Bangladesh Renewable energy policy 2008

Harness RE in across the country and promote appropriate REtechnologies

Encourage public and private sector investment Develop sustainable RE supplies to substitute indigenous non-

renewable energy supplies

Scale up contributions of renewable energy to electricityproduction;

Capacity building in RE use

Create enabling environment and legal support to encourage theuse of renewable energy.

Promote development of local technology in the field of renewableenergy

5% of the total power demand by 2015 and 10% by 2020.


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Current Policies .

India

Electricity Act 2003

Created enabling environment for RE development

encouraging optimal use of RE resources promotion of RE through appropriate tariff regulations in line with

the National Electricity Policy (2005) and Tariff Policy (2006)

National Action Plan on Climate Change (2008)

RE to be 5% of generation in 2010 and increased by 1%

each year States may go for even a higher percentage

National Solar Mission (2010) 1-2GW of grid-connected solar projects by 2013, 4-10GW by 2013-

2017 and 20GW by 2020


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Current Policies .

CERC Regulations Regulations for Preferential Tariff for RE (2009)

Renewable Energy Certificate Mechanism (2010)

SERC Regulations Preferential RE Tariff Orders by SERCs (2002

onwards)


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Current Policies .

Nepal

Long history of developing RE

community involvement, delivery through private sector and use ofmicro financing

RE development continues to be a high priority

least cost solution to remote, sparsely populated areas unviable for gridextension,

GoN's goal for the next 20 years

increase the share of renewable energy from less than 1% to 10% of

the total energy supply and to increase the access to electricity from alternative energy sources

from 10% to 30%


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Current Policies .

GoN to mobilise investments amounting to $ 1 billion by 2020

support for hydro power, solar PV and biogas technologies

Three Year Plan (2010-2013)

15 MW of mini/micro hydro power

225,000 solar home systems

90,000 domestic, 50 community and 75 institutional biogas plants

1 MW of wind power

4,500 improved water mills

Enabling measures include

establishment of national, district, and community rural energy funds

Tax and duty concessions

Exemption of mini, micro and pico hydro projects from royalties andlicensing requirements

Standard PPAs (flat tariff) for micro-hydropower up to 25MW


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Current Policies .

Maldives

Energy Action Plan (2009-2013)

to become Carbon neutral by 2020

Promote energy conservation and energy efficiency toreduce costs

Increase national energy security by diversifying energysources

Promote renewable energy technologies


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Current Policies .

National Energy Policy

Become carbon neutral in energy sector by 2020

Invest in advanced energy technologies to enable carbon

neutrality and improve energy efficiency

50% of the electricity is supplied from renewable sources by2015

50% reduction in energy sector GHG emissions by 2015(compared to 2000 levels)

Reach a saving of 7.5% on the final energy consumptionover 10 years until 2020


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Current Policies .

Sri Lanka

Since 1997 to 2006 ad hoc policy

To promote small hydro (less than 10MW)

Encourage private sector Energy policy (2006/07) covering NCRE

Economically viable, environmentally friendly, NCRE to bepromoted

Incentives for other non-economic NCRE

A separate facilitation centre for NCRE (SEA)

Support for research and development on adopting newtechnologies


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Current Policies .

10% of generation by 2015 and 20% by 2020

Feed-in-tarifffrom 1998

For avoided cost based tariffs up to 2006

Cost based tariffs since 2007

Net-metering

Off-grid plants exempted from licensing


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Outcome

Exponential development of RE in India

Wind, small hydropower, Solar

12% of generation capacity (170GW) by 2011

Substantial progress in Sri Lanka

Small hydropower, wind, biomass

About 10% of generation capacity and 6.8% of energy

Significant progress in expanding off-grid supplies in Nepal andBangladesh

Mini-micro hydropower, solar and biogas in Nepal Solar PV in Bangladesh

Increased emphasis in RE in Bhutan and Maldives throughongoing programs


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Outcome .

ADB has been facilitating

Investment support in RE projects

Power evacuation infrastructure Facilitate development of RE projects by private

sector

Credit lines Pilot projects


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More action needed .

Tax credits/incentives

Appropriate Feed-in-tariffs (FIT)

To cover costs and a reasonable RORAdjusted as needed

Utilities compensated

Government subsidies

Extend fossil fuel subsidies to RE Green tariffs

FIT passed on to the consumer

Will not have serious impact to the final tariff

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More action needed .

Wheeling allowed

Green consumers

Renewable energy certificates Establishing (where needed) and enabling the

regulators

Advise on and enforce RPS and FIT

Ensure transparency and cost recovery Consumers looked after


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Final Remarks

Extend fossil fuel subsidies to RE

Can finance additional cost of FITs with minimumtariff impacts

From economic regulation to

Regulation for sustainable development

Technology transfer can catalyze increased penetration

South-South cooperation with adapted technologies willfurther boost these efforts

Leapfrog in technology and environmental sustainability

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Thank youe-mail: [email protected]

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priyantha wijayatunga - policies for clean energy development in south asia

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