Clean Energy Financing Partnership Facility: Annual Report 2018

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Clean Energy Financing Partnership Facility: Annual Report 2018 ABBREVIATIONS ACEF Asian Clean Energy Fund ACM Annual Consultation Meeting ADB Asian Development Bank CCS carbon capture and storage CCSF Carbon Capture and Storage Fund CCSC Climate Change Steering Committee CEF Clean Energy Fund CEFPF Clean Energy Financing Partnership Facility CEWG Clean Energy Working Group CF Concessional Financing CFPS Canadian Climate Fund for the Private Sector in Asia CO2 carbon dioxide DC direct charge DMC developing member country DMF design and monitoring framework GCI grant component of investment GHG greenhouse gas REG regional TA technical assistance TALL technical assistance linked to loan WEIGHTS AND MEASURES MW megawatt MW Megawatt-hour TWh-eq terawatt-hour equivalent tCO2 tons of carbon dioxide NOTE In this report, “$” refers to US dollars In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. GOVERNANCE OF THE CLEAN ENERGY FINANCING PARTNERSHIP FACILITY Climate Change Woochong Um, Director General concurrently Chief Compliance Officer, Sustainable Development Steering Committee and Climate Change Department (SDCC) Werner E. Liepach, Director General, Central and West Asia Department (CWRD) Amy S.P. Leung, Director General, East Asia Department (EARD) Yasuyuki Sawada, Chief Economist and Director General, Economics and Research Department (ERCD) Ma. Carmela D. Locsin, Director General, Pacific Department (PARD) Michael Barrow, Director General, Private Sector Operations Department (PSOD) Hun Kim, Director General, South Asia Department (SARD) Ramesh Subramaniam, Director General, Southeast Asia Department (SERD) Clean Energy Yongping Zhai, Chief of Energy Sector Group, SDCC – Chair Working Group Ashok Bhargava, Director, Energy Division, CWRD – Co-chair Sohail Hasnie, Principal Energy Specialist, CWRD Teruhisa Oi, Principal Energy Specialist, EARD Anthony Maxwell, Principal Energy Specialist, PARD Daniel Wiedmer, Principal Investment Specialist, PSOD Aiming Zhou, Principal Energy Specialist, SARD Shannon Cowlin, Senior Energy Specialist, SERD Facility Manager / Robert Guild, Chief Sector Officer, Sector Advisory Service Cluster (SDSC) – Facility Manager Secretariat Kee-Yung Nam, Principal Energy Economist, SDSC-ENE – Alternate Facility Manager Maria Dona D. Aliboso, Operations Analyst, SDSC-ENE Cimonette Caguioa, Consultant, SDSC-ENE Daisy Flores-Salgado, Consultant, SDSC-ENE Gervic Laurio, Consultant, SDSC-ENE Office of Kai Preugschat, Head, OCO Cofinancing Jacob Wienberg Sondervang Sorensen, Director, OCO Operations (OCO) Ilaria Caetani, Principal Financing Partnerships Specialist, OCO Stella Tansengco-Schapero, Senior Financing Partnerships Specialist, OCO Takafumi Mafune, Financing Partnerships Specialist, OCO Fiona Bannert, Financing Partnerships Specialist, OCO Contents HIGHLIGHTS AND KEY ACHIEVEMENTS ........................................................................................... 1 RESULTS FRAMEWORK ......................................................................................................................... 3 Progress towards Target Outcome ............................................................................................ 3 Progress towards Target Outputs ............................................................................................... 5 Progress of Supported Projects ................................................................................................ 15 FINANCIAL STATUS ............................................................................................................................... 17 Financing Partner Contributions and Status of Grant ............................................................ 17 Resource Utilization .................................................................................................................... 19 Resource Allocation Structure ................................................................................................... 21 MANAGEMENT OF THE FACILITY...................................................................................................... 23 Steering Committee and Working Group Membership ......................................................... 23 Steering Committee and Working Group Meetings ............................................................... 23 Approval of Procedural Matters ................................................................................................ 23 Audit Compliance, Issues and Actions .................................................................................... 24 Dissemination Activities.............................................................................................................. 24 RELATIONSHIP WITH FINANCING PARTNERS .............................................................................. 24 LESSONS LEARNED, EXPERIENCES GAINED, AND KEY CONSTRAINTS ............................. 25 EXTERNAL FACTORS RELEVANT TO THE FACILITY ................................................................... 26 OVERVIEW OF 2019 ANNUAL WORK PROGRAM .......................................................................... 29 APPENDICES 1 Overview and Governance Structure: Clean Energy Financing Partnership Facility/Climate Change Fund ................................................................................................... 31 2 Clean Energy Funds Design and Monitoring Framework ..................................................... 37 3 Guidelines on Monitoring and Reporting of Results of the Clean Energy Funds .............. 52 4 Contributions Towards Achieving Target Outcomes, as of 31 December 2018 ............... 73 5 Contributions Towards Achieving Target Outputs, as of 31 December 2018 .................... 75 6 Clean Energy Technologies Deployed by CEFPF, as of 31 December 2018 ................... 86 7 CEFPF Activities Against Target Outputs, as of 31 December 2018.................................. 96 8 Completed Direct Charge Projects in 2018 ............................................................................. 98 9 Status of Grants ......................................................................................................................... 102 10 Disbursement Ratios of GCIs, TALLs, and TAs as of 31 December 2018 ...................... 121 11 CEFPF Portfolio Profile: Resource Utilization and Regional Distribution, as of 31 December 2018 ......................................................................................................................... 123 12 CEFPF Allocation by Country, as of 31 December 2018 .................................................... 127 1 HIGHLIGHTS AND KEY ACHIEVEMENTS 1. The Clean Energy Financing Partnership Facility (CEFPF or the Facility) was established by the Asian Development Bank (ADB) in April 2007, to assist developing member countries (DMCs) improve energy security and transit to low-carbon use through cost-effective investments, particularly in technologies that result in greenhouse gas (GHG) mitigation (Appendix 1). CEFPF is composed of the Clean Energy Fund (CEF), the Asian Clean Energy Fund (ACEF), the Carbon Capture and Storage Fund (CCSF) and the Canadian Climate Fund for the Private Sector in Asia (CFPS).1 The Facility contributes to the energy sector in achieving the scaled up ADB’s annual target set in September 2015 - ADB pledged to double its annual climate financing to $6 billion by 2020, with $4 billion for climate mitigation and $2 billion for climate adaptation. The energy sector aims to contribute about $3 billion to climate mitigation. The overall implementation progress and operational results of CEFPF from 1 January to 31 December 2018, measured against the design and monitoring framework (DMF), are provided in this 2018 Annual Report.2 The DMF is attached as Appendix 2. 2. CEFPF Progress towards Targets. The Facility’s progress towards the 2020 targets is encouraging as it continues to provide critical financial support to clean energy projects. In 2018, the Facility financed investment projects and technical assistance to leverage financing in clean energy infrastructures and conduct capacity building. Since the Facility was established, it has allocated $258.4 million to support 187 projects3 covering 37 DMCs and leveraging about $6.7 billion of clean energy investment. The Facility is expected to contribute about 10.3 terawatt-hour equivalent (TWh-eq) per year of energy savings, 1,567.8 megawatt (MW) installed renewable energy capacity, 5.3 TWh per year of renewable energy generation and 23.5 million tons of carbon dioxide (tCO2) emission reduction per year (Figure 1). 3. Deployment of Renewable Energy Technologies. In 2018, the Facility supported the deployment of technologies that would increase the use of renewable energy in the DMCs. The Facility will introduce floating solar photovoltaic (PV) technology in Viet Nam, Afghanistan, Azerbaijan and the Kyrgyz Republic through the projects Viet Nam: Floating Solar Project and Regional: Floating Solar Energy Development Project. The Facility also supported technologies that enable the integration of renewable energy to the grid, such as energy storage system and energy management system, in the project Viet Nam: Battery Energy Storage System and Renewable Energy Forecasting. In line
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