The total project cost, based on project activities starting in Fiji, Papua New Guinea, Solomon Islands, is estimated to be about US$30 million. GEF is expected to financeUS$10 million, with the rest of the funds coming from a variety of sources, including private equity, commercial funds, and other donors, such as the European Union Energy Facility.

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China, Financing of Two Biomass Projects in Inner Mongolia as Part of the CRESP Project
The authorities of the Xin’an Meng, Inner Mongolia, are planning to develop, with the support of the Inner Mongolian government, a biomass-based power generation program to replace small-fired and heavily polluting power plants and sell electricity to the grid. Initial plans call for 10 MW of biomass fired power generation and cogeneration units of 100 MW to replace all small coal power plants in the short term, and more in the future. This project, financed two of the potential biomass plants, follows on an ASTAE-funded activity that provided a scoping study report, including: (a) resource assessment; (b) regional potential for biomass power; (c) regional market evaluation; and (d) project identification, a pre-feasibility study, and other preparation activities. (More on China)

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Fiji Electricity Authority Renewable Power Development (RDP) Project (P099308)
The development objective of this project is to assist the Government of Fiji in meeting the current and future demand for electricity with a continuous and reliable power supply at the lowest possible cost. In particular, the Bank will assist the FEA in diversifying its energy portfolio to reduce its dependency on diesel oil. Key indicators include: (a) the energy capacity added to the grid; (b) the amount of actual generation added to the grid (GWh); (c) the resulting reduction in the cost of generating electricity (U.S. dollars per kWh), against a2006 base price and confirmation by a recent power sector analysis that renewable energy is indeed the least-cost solution; and (d) the reduction in greenhouse gas emissions.(More on Fiji)

Indonesia, Energy Efficiency Finance Project (P095746)
Under the Integrated Resource Planning Program, the Indonesian State Electricity Corporation (PLN) started to implement a DSM Program. The DSM program includes the introduction of energy-efficient lamps, energy labeling for household appliances, and some financial incentive schemes for consumers to shift peak demand and/or to improve efficiency, as well as energy audit services. It has three subprograms, namely, DSM Peduli (DSM for awareness of energy efficiency to household consumers at capacity below 900 VA), DSM PJU (DSM for Public Street Lighting), and DSM Terang (DSM for poor household consumers at capacity up to 450VA). The implementation of the program went well. A preliminary survey, done in 2002, shows that about 78 percent of targeted residential customers under the program have shifted to energy-efficient lamps. PLN has now requested Bank support to focus on improving its energy efficiency in the industrial and commercial sector.
(More on Indonesia)

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Mongolia, Renewable Energy and Rural Electricity Access Project (P099321/P084766)
This activity stems from an earlier and broader Mongolia project: Delivery of Infrastructure Services.

The development objective of the proposed project is to increase the access to and the reliability of electricity in rural Mongolia, so as to enhance the living standards of rural communities in off-grid soums (villages) and individual herders. This objective will be achieved by: (a) assisting the development of institutions and delivery mechanisms based on a partnership between the public and private sectors for rural electrification; (b) facilitating herders’ investments in solar home systems and small wind turbine systems; and (c) rehabilitating isolated soum center minigrids by improving their operations and management practices, followed by introducing renewable-diesel hybrid generation systems. The project also will help strengthen the institutional and regulatory capacity at the national level to develop grid-connected and off-grid renewable energy supplies.

The key development indicators include: (a) the percentage of the herder population with access to reliable electricity services provided by solar home systems and small wind turbine systems; and (b) the number of off-grid soum centers (and corresponding population) with improved reliability and affordability of electricity services supported by renewable-diesel hybrid systems.

ASTAE provided project identification and implementation support to increase access to electricity and improve reliability of electricity service among the herder population and in off-grid soum centers. The project was approved in December 2006. (More on Mongolia)

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China, Energy Efficiency Financing Project(P084874)
This project’s objective is to improve energy efficiency in medium-and large-scale Chinese industries by developing lending programs for sustainable, energy efficiency projects in selected banks to support energy-efficiency investments in these industries. The key performance indicators of the project will be energy savings achieved in medium- and large-scale industries, and associated emission reductions of greenhouse gases and other pollutants. Increases in the level of energy-efficiency project lending in participating banks will also be a key output indicator. Five commercial banks and two policy banks have shown strong interest in participating in the project and in becoming financial intermediaries, four of which (two commercial banks and two policy banks) have already formally submitted project applications to the government of China.

The proposed outcome of the project is to finance a line of credit to the selected domestic banks with an IBRD loan ofUS$200 million. Under the project, the selected banks will establish their energy-efficiency lending business with the support of the proposed technical assistance (up to US$15 million, including proposed GEF financing), and will utilize their own financial resources in addition to the Bank loan proceeds to increase the impact of the project. A proposed technical assistance may also support additional domestic commercial banks that are committed to energy-efficiency financing, but that are not participating in the IBRD on-lending support to further amplify the impact of the proposed project.(More on China)

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To qualify as a green electricity user, consumers must buy yearly blocks of green electricity delivery. The size and number of blocks is set depending on each customer’s total electricity consumption. For example, households must buy blocks of 12kWh per year with a minimum of 10 blocks, and larger customers must buy blocks of 6 MWh with a number of blocks depending on their relative sizes. The incremental cost of green electricity has initially been set at Y >0.53/kWh (about6.5 U.S. cents/kWh in 2005). Shanghai’s annual electricity consumption will soon surpass 100 TWh per year, which can be compared with the current green electricity consumption of6.54 GWh per year (less than 0.01 percent). This nonetheless covers the entire electricity generated by the existing 3.4 MW Feng Xian wind farm and its 10 kWp grid-connected photovoltaic system which, until 2005, were the only renewable electricity resources available to the Shanghai municipality.

ASTAE took the lead to provide World Bank support, together with the Energy Sector Management Assistance Programme (ESMAP) and later joined by the World Wildlife Fund and the Energy Foundation. Resources were used to provide access to international expertise and experience. International experts reports on specific issues. A policy study tour to Finland, Germany, and Sweden for senior Shanghai officials provided information on issues and options for designing and introducing a green electricity scheme, and helped them make an informed decision on whether to adopt this approach in Shanghai. Implementation Training in Canada, Finland, and the Netherlands helped with the actual design of the scheme. ASTAE resources were also used to organize the marketing campaign, prepare promotion materials, and establish and operate the Shanghai Green Electricity website. In addition, ASTAE provided overall support through the ASTAE program-based consultant and a national renewable energy policy expert.(More on China)

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Philippines, Wind Power Training Program
This program provided local technical, financial, and economic analysis training for stakeholders in the field of wind power development in the Philippines. The principal recipient was the Philippine National Oil Company — Energy Development Corporation (PNOC-EDC) which has applied for carbon financing from the World Bank for a 40 MW wind farm planned to be established in Burgos, Ilocos Norte, a project that also receives separate support from ASTAE.

A group of 15 pa Table 1: Changes in FY06 and Status at the End of FY06 other organizations followed a training program designed and delivered by international consultant specialists in the field. The first part of the training of the program provided the fundamental tools and information for stakeholders who lack basic knowledge in wind power development related to wind turbine techniques, environment assessments, financial analysis, procurement and construction issues, and contracting and operation basics. The second part of the training focused on a smaller group of eight players, already involved in wind projects in the Philippines, to improve their capabilities through advanced training modules on technical and financial analysis.(More on Philippines)

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China, Shanghai Energy Resource Center
The Shanghai Energy Conservation Supervision Center, which also participated in the design of the green electricity scheme described above, will renovate three floors in their building to create a living exhibition on energy improvements that local citizens can make in their houses and offices. ASTAE supported the design and plans for the renovation, including an evaluation of the actual energy savings the proposed modifications will generate. In order to make these energy improvements attractive to the general public, the Shanghai EnergyConservation Supervision Center was advised on both energy efficiency measures and on the most efficient communication methods. The center was opened in June 2006 and is attracting a large number of visitors everyday.(More on China)

China, Wind Resource Assessment Handbook
At the International Conference for Renewable Energy in Bonn, the Chinese government announced a target of 20 GW of wind installed capacity by 2020, and its plan to conduct 30 wind concessions (each of 100 MW), in addition to the two pilot wind concessions that have been done. Wind resource measurement and assessment are important steps for wind concession schemes and for scaling up wind power. Existing Chinese practices for wind measurement and assessment are not yet up to international standards. This ASTAE project provided a translation of the Wind Resource Assessment Handbook written by the U.S. National Renewable Energy Laboratory into Chinese to provide guidelines for international standards on wind resource measurement and assessment in China. Three cases studies were also developed as an illustration using the handbook. This package is now an important sourcebook used by local developers of wind farms in China.(More on China)

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China, Building a Resource Efficient Society Conference
If the current modes of production and trends in consumption continue, China will face a severe shortage of natural resources, making sustainable development of the economy and society an impossible mission. The government has realized this and is determined to transfer the current modality of economic growth and build a resource-efficient society. To achieve this goal, the government has shown strong interest in learning from the successful experiences of both developed and developing countries, and working with international organizations and multinational companies to create the right institutional, regulatory, and policy environment for building a resource-efficient society.

The objective of the ASTAE activity was to conduct a high-level international conference to facilitate in-depth discussion of the international experiences and practices, and to discuss the policy recommendations for China and the action plans the Chinese government needs to take in order to move toward a resource-efficient society. The main output was the delivery of the conference, with the following outcomes: (a) increased awareness of the Chinese decision makers and general public about the importance and urgency of resource conservation; (b) broadened knowledge on the part of the Chinese decision makers of successful international experiences and practices; (c) a roadmap consisting of principles; (d) the policies and modalities to be applied to build a resource-efficient society in China; and (e) follow-up actions by the government, international organizations, and business community. Presentations were posted on websites and are available in Chinese language.
(More on China)

Outreach and Promotion: ASTAE and REDP Exhibitions at Energy Week 2006
ASTAE and the Renewable Energy Development Project (REDP) had exhibitions at the 2006 edition of Energy Week. The exhibit stands were seen by numerous visitors, including the World Bank President, Paul Wolfowitz, and the Dutch Minister of Development Cooperation, Agnes van Aardenne. The ASTAE stand was organized on the theme of the ASTAE atlas, Sustainable Energy: Less Poverty, More Profits, and offered copies of the atlas, its accompanying video, and a series of ASTAE funded reports and publications printed for the occasion. The ASTAE stand remains available for future exhibitions.
(More onEnergy Week 2006)

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