off-grid opportunities the paradigm shift - ips) …...in 2015: •$27.0+ billion, the highest in...

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Off-Grid Opportunities The Paradigm Shift Sohail Hasnie Principal Energy Specialist, Asian Development Bank November 2016

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Page 1: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Off-Grid Opportunities

The Paradigm Shift

Sohail Hasnie Principal Energy Specialist, Asian Development Bank November 2016

Page 2: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

FOUNDED IN 1966

• 67 members;

• 48 in the region

• 40 borrowing members

• Japan and the United

States are the 2 largest members

Page 3: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Manila HQ

OFFICES

31 field offices

3,105 employees, spanning

59 nationalities

Page 4: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

ADB’s CORE BUSINESS

• Finance and Advice for

Development Solutions

• Loans

• Technical Assistance

• Grants

• Guarantees

• Equity Investments

• Policy Dialogue

• Knowledge and

Partnerships

Page 5: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Numbers In 2015:

•$27.0+ billion, the highest in ADB's history

•$16.3 billion in loans and grants

•$10.7 billion in cofinancing

Procurement

• contracts for goods and works: $11.1 billion

• contracts for consulting services: $637 million

Page 6: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing
Page 7: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing
Page 8: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

3+

disruptive technologies

Page 9: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Source: http://www.kotzendes-einhorn.de/blog/2011-06/the-hard-disk-youve-been-waiting-for-na-endlich/

1992

10 MB

about $300 /MB

Page 10: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

16 GB or 16,000 MB

$4.8 million

16,000 MB @$300 per MB

Page 12: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

60-80% Energy Efficiency Everywhere

Disruptive Technology #2

Page 13: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Pacific countries or

Afghanistan

Fossil-Fuel-Free:

by 2020 All by 2025?

It can be the least cost option!

The Paradigm Shift

Page 14: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Where do we start?

The Paradigm Shift

Page 15: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Batteries

Disruptive Technology #3

Page 16: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Cost of storage

Battery Cost $500 per kWh

10,000 cycles 500,00/10,000

5 cents per kWh per charge

Page 17: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Source: http://reneweconomy.com.au/graph-of-the-day-tesla-powerwall-2-way-ahead-of-competition-on-price-62928/

Page 18: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Software

• Decarbonize "people"

• Manage incumbent

• Build mega projects

• Standards through examples

• Communicate

• Innovate procurement

• Bring in young people

Page 19: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Hardware

• Energy Efficiency be the norm

• Technology partnerships

• DC Off-grid solar

• Electric Vehicles

• (boats, cars, trikes and bikes)

• On grid solar and batteries

• Floating Solar

Page 20: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing
Page 21: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Demonstration Project #1

Page 22: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing
Page 23: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Pilot: 500 solar kits: 100 each in Tajikistan, Kyrgyz Republic, Mongolia, Afghanistan and Pakistan 2016-2017: $2 million

Planned Scale up in 2017-2018: 100,000 units in Afghanistan or Pakistan

Estimated cost: $100 million

Page 24: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Second-life car batteries may bring electricity to millions

Page 25: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing
Page 26: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Demonstration Project #2

Page 27: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Floating Solar $0.68 / Wp

Page 28: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Small scale EV Project

Page 29: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Why locally made small EVs?

• Higher income (low operating cost: 7 kWh of electricity or 80 pesos vs 5 liters of gasoline 250 pesos)

• No down payment : payments from daily savings

• 5-year or 80,000 km warranty with after sales service

• Long-life lithium-ion battery with solar charging options

• Modern transport: good looking, no noise, no pollution, safe and comfortable to ride

Page 30: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Regional Battery Factory

Page 31: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

Partnerships • Hydro Tasmania • Argonne National Lab • Australian Energy Regulator

Others? Workshops • 13 February, 2017, Dushanbe, Tajikistan • 5-9 June 2017, Manila, Philippines

Page 32: Off-Grid Opportunities The Paradigm Shift - IPS) …...In 2015: •$27.0+ billion, the highest in ADB's history •$16.3 billion in loans and grants •$10.7 billion in cofinancing

3+

disruptive technologies

Email: [email protected]

shasnie ph.linkedin.com/in/shasnie