TECHNICAL ASSISTANCE COMPLETION REPORT Division: Sustainable Infrastructure Division TA No., Country and Name Amount Approved: $130,000.00 TA 8120-REG: Grid Integration of Renewable Energy Sources and Solar Energy Technologies Revised Amount: N/A Executing Agency: Asian Development Bank Amount Undisbursed: $1.00 TA Approval Date: 23 July 2012 TA Signing Date:23 July 2012 Source of Funding: Spanish Cooperation Fund 1 for Technical Assistance Fielding of First Consultants: 05 October 2012 TA Completion Date Original: 28 February 2013 Account Closing Date Original: 30 June 2014 Amount Utilized: $129,999.00 Actual: 31 December 2013 Actual: 31 January 2014 Description In May 2010, ADB launched the Asia Solar Energy Initiative (ASEI) to catalyze about 3,000 megawatts of solar power generation projects over the next three years. ASEI has three interlinked components, namely knowledge management, project development, and innovative finance. As part of its knowledge management goals, ASEI aims to build institutional capacity in developing member countries (DMCs) to create an enabling environment for the promotion of solar energy. Generally the lack of strategic capacity building and training activities are key obstacles to stimulating catalytic renewable 2 energy development in Asia and the Pacific. The S-CDTA was designed to support these objectives of ASEI. In October 2011, ADB─in collaboration with the Plataforma Solar de Almeria (PSA), a division of the Centre for Energy, Environment and Technology Research (CIEMAT)─organized a training seminar on solar technologies in Spain. Ten participants from selected DMCs were sponsored under the Clean Energy Financing Partnership Facility (CEFPF). After completion of the training, several DMC representatives expressed interest in similar capacity building activities on solar technologies and other renewable energy. Based on this positive feedback, the Government of Spain discussed with ADB’s Energy Community of Practice its willingness to support a similar activity. With funding from the Spanish Cooperation Fund for Technical Assistance, the technical assistance (TA) was designed to build DMC capacity on grid connection of renewable energy sources and technologies, and their prerequisite policy, legal, regulatory environment and incentive mechanisms (e.g., feed-in tariffs and subsidies). The TA aimed to equip 10 DMC technical staff, particularly from the main electric utilities and/or grid operators, with the necessary skills to enable them to design and promote grid-integrated renewable energy projects. Expected Impact, Outcome and Outputs The impact of the TA will be to increase deployment and grid integration of renewable energy technologies in the region within 5 years of the completion of the S-CDTA. The expected outcome is generating increased understanding of grid issues and solutions related to the deployment of renewable energy technologies and enhanced DMC capacity in developing renewable energy projects. Expected deliverables under the TA include (i) organizing an 11-day training workshop for 10 DMC participants on grid integration of renewable energy, and solar photovoltaic (PV), thermal and wind technologies, and (ii) developing training design and materials on issues and best practices on renewable energy technologies applicable to Asia and the Pacific. The 11-day training workshop intended to cover technical sessions on renewable technology, assessment of solar resources, policy and regulatory environment, and financial analysis. Field site visits to solar and wind power plants were incorporated into the training. The training modules and materials will be designed to suit relevant conditions and policy considerations in the participating DMCs. All training materials will be provided on the ADB website as a knowledge product. Delivery of Inputs and Conduct of Activities The work under the TA was carried out by engaging Effergy Energia SL using single source selection method, as the firm (i) possesses the required specialized knowledge and training facilities on renewable technology; and (ii) has a proven track record of successful implementation of similar training programs. Effergy Energia SL is a spin-off company co1 2 Administered by the Asian Development Bank. ADB. April 2011. Asia Solar Energy Initiative: A Primer. Manila. founded by the University of Almeria and researchers of the Plataforma Solar de Almeria (PSA), with a strong relation with the University of Seville. PSA is a division under the Centre for Energy, Environment and Technology Research (CIEMAT), a government organization whose main goals are the development of energy resources, generation, and environmental solutions. Effergy Energia played an important role in the success of the capacity building program. Evaluation of Outputs and Achievement of Outcome The program targeted DMC experts from local electric utilities and grid operators as well as ADB’s operational departments 3 from the Asia Pacific region. A total of 21 participants – 8 of which are from ADB’s operational departments – completed 4 the training workshop held in Spain. Post-workshop evaluation reveals that participants considered the course contents and schedule aligned with their capacity building needs regardless of the heterogeneity of their backgrounds and interests. While the course objective focused on the grid integration problems (such as grid stability), a considerable proportion of the participants were also interested in finding solutions appropriate for isolated and non-grid-connected areas. The off-grid renewable energy case studies were brought to the fore of sessions as much as possible, considering the participation from the Pacific Islands. Participants considered the actual case studies and site visits as highly relevant. Overall Assessment and Rating Overall, the TA is considered highly successful. The envisaged outcome was achieved, and all key target outputs were accomplished as planned. The TA was appropriately designed to achieve the main objectives of gaining a better understanding of renewable energy (RE) technologies, particularly wind and solar energy, and issues related to grid integration; technical knowledge of power grids and renewable energy technologies; and, knowledge of policy, legal, and regulatory requirements to create an enabling environment for capacity addition of RE. Major Lessons The quality and content of the training program were relevant, timely, and excellent. In particular, the field visits were considered invaluable by all participants, as it provided a good balance between the theoretical and actual practice of gridintegrated RE systems. While the course objective focused on the integration problems in grids, a considerable part of participants raised interest regarding isolated, non-grid connected areas, and the possible solutions to address these concerns. The off grid renewable energy case studies were brought to discussion as much as possible having the perception that an extra dedicated effort to this topic would have been of general interests. Recommendations and Follow-Up Actions ADB may now rigorously push for further deployment of renewable energy technologies for sustainable low-carbon growth and improved energy security with increased reliance and quality of the grid. In doing so, ADB needs to take a comprehensive approach by not only focusing on renewable energy generation, but also on the grid system and storage technology, its technical aspects, as well as the country’s legal and regulatory framework. ADB should also continue to work on innovative and flexible financing mechanisms aiming to reduce risk perceptions and lower financing costs. Also, ADB can increase scope of assistance to take up DMC’s interests in off-grid renewable energy solutions. Prepared by: Antonio Lopez Designation: Energy Specialist 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. 3 The use of the staff development budget for sector and thematic training was approved to allow ADB staff to participate in the training program. 4 The TA funded the expenses of only 10 DMC participants. The expenses of additional DMC participants were funded by the relevant ADB regional departments.