Jiwan Acharya, Asian Development Bank

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)

4.2 Billion

Population in Asia People without access to clean cooking

615 MillionPeople without access to electricity

1.8 Billion

STATUS OF ENERGY ACCESS

Asia-Pacific

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

INT

ER

NA

L G

OA

LE

XT

ER

NA

L GO

AL

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

$400 MillionEnergy 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

USD 5.2 billionTotal ADB investment

in energy access (2008-2014)

86.4 millionNumber 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

Imp

rove

d e

ner

gy

acce

ss (h

ou

seh

old

s)

En

erg

y A

cces

s In

vest

men

t (in

bill

ion

$)

Year

Impact of ADB's investments on enegy access (2008-2014 Cumulative)

Investment Household

PROGRESS REPORT

2008 – 2014 Accomplishments

• 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

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

ENERGY FOR ALL PROGRAM

Project Development Facility

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


Barriers to Energy Access Enterprsies

Project DevelopmentP2IdeationP1 Startup

OperationsP3 Expansion and ReplicationP4 Market

DominanceP5


Phases of Development



DominanceP5



154

BusinessDevelopmentWorkshop



DominanceP5



154

93

InvestorForum

CustomizedMentoring




DominanceP5



154

93

11

InvestorForum

CustomizedMentoring




DominanceP5



154

93

11 3

InvestorForum

CustomizedMentoring




DominanceP5



InvestorForum

CustomizedMentoring




DominanceP5



Investment Demand Curve

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


Barriers to Investors



DominanceP5


Types of Investors



DominanceP5


Types of Investors

Grants and DonationsGovernment GrantsPrivate R&DCrowd Funding



DominanceP5


Types of Investors


Private EquityVenture CapitalImpact Investment



DominanceP5


Types of Investors


Non-Bank Finance CompaniesMicrofinance Institutions




DominanceP5


Types of Investors

Commercial Banks






DominanceP5


Types of Investors

Commercial Banks




Capital MarketsPublic StocksBonds



DominanceP5


Types of Investors



DominanceP5


Types of Investors

Investment Supply Curve



DominanceP5


Types of Investors

Investment Supply Curve

Investment Demand Curve



DominanceP5


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 .



DominanceP5


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 .



DominanceP5


Types of Investors

One way to meet the investment deficit of USD 36

billion is to increase investment supply …



DominanceP5


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 toinvestors who are serious about energy access.



DominanceP5


Types of Investors

…and improve investment demand .



DominanceP5


Types of Investors

…and improve investment demand .

The PDF does this by providing customized mentoring support andcredit enhancement schemes to energy access enterprises.



DominanceP5


Types of Investors



DominanceP5


Types of Investors

11++

11DEALSCLOSED

32INVESTMENTFACILITATION

09CUSTOMIZEDMENTORING

93BUSINESSDEVELOPMENT


IND; 58

NEP; 43

INO; 8

PHI; 10

CAM; 5

TIM; 1THA; 1

PAK; 1

BAN; 7

TON; 1LAO; 1 SIN; 1

MYA; 17

Geographic Distribution of Projects

PROGRESS REPORT

Energy for All Project Development Facility


ENERGY FOR ALL

Key Donors

Jiwan AcharyaSenior Climate Change Specialist (Clean Energy)

Office: +632 632 6207Email: [email protected]: http://www.energyforall.info

CONTACT US!

Jiwan Acharya, Asian Development Bank

Presentations & Public Speaking

Transcript of Jiwan Acharya, Asian Development Bank