priyantha wijayatunga - policies for clean energy development in south asia
TRANSCRIPT
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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%
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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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