Decentralized biofuel production, or small-scale factories built on degraded or under-used lands, has the potential to provide energy to half a billion people living in poverty in rural Asia, says a report sponsored by the United States Agency for International Development (USAID). The report, entitled Biofuels in Asia: An Analysis of Sustainability Options, stresses that decentralized production offers a promising path to enhance the energy independence of Asian nations in a manner that is also commercially viable and without large subsidies. Furthermore, local production and use of biofuels could significantly benefit rural communities by providing access to energy for the millions currently relying on either expensive fossil fuels or traditional biomass for cooking, lighting and transportation needs.

The report argues that large-scale biofuels production could become less viable in view of the global economic crisis. Even under optimistic assumptions of crop expansion and deployment of second-generation technologies, biofuels will meet not more than 3-14 per cent of the total transport fuel demand in Thailand, Viet Nam, Malaysia, the Philippines, China, India and Indonesia by 2030. Furthermore, biofuels currently supply less than 1 per cent of transport fuel worldwide and approximately 3 per cent in developing Asia. The USAID report encouraged countries going into biofuels production to ensure that producers use non-food feedstock grown on under-utilized land. Biofuels producers must avoid converting forests and peat lands at all costs and instead plant on degraded or under-utilized lands using high-yielding feedstock that require minimal inputs, the report advised.
Source: businessmirror.com.ph

The Renewable Energy and Energy Efficiency Partnership (REEEP), an Austria-based non-governmental organization, reports that piloting innovative finance methods is one of its key priorities in its small-scale project funding designed to have a wide ripple effect. Microfinance facilities offer the rural poor a way to access energy services. REEEP intends to work in Uganda to help microfinance institutions (MFIs) to establish small businesses selling solar, biogas and high-efficiency cook stoves, and to provide loans to 5,000 consumers who buy them. In parallel, another REEEP project will help set up a network of retail outlets to sell energy-efficient CFLs, pressure cookers, stoves and solar lanterns in the villages of Karnataka, India, and structure guarantees with MFIs to provide financing to end users.

Private Financing Advisory Network (PFAN) is a finance coaching and investor matchmaking service that works well in many developing markets, as well as in India and China. A new REEEP project will expand PFAN activities to Uganda and Mozambique, and aims to attract US$ 10-60 million to fund clean energy projects in the two countries during its first year. The Pacific Renewable Energy and Microfinance (PREM) project aims to establish microfinancing systems on the islands of Fiji, Vanuatu and Samoa. It will kick off with a baseline study on renewables and energy efficiency in these countries and later, a set of training tools will be created to assist MFIs develop their own sustainable loan products. In Brazil, REEEP will focus on the agricultural sector in a project combining international and local sources of finance to make solar water pumps for irrigation, solar dryers for drying fruits and biodigesters for agricultural waste.
Source: www.renewableenergyfocus.com

A joint statement released by the Ministry of Finance (MOF) and the Ministry of Housing & Urban-Rural Development of China states that the government will pay subsidies to pilot cities and rural areas for renewable energy projects to help the country save energy and cut emissions. Each of the pilot cities will carry out projects using renewable energy technologies and products, such as solar water heaters and solar radiators, and will receive 50-80 million yuan (US$7.3-11.7 million) in subsidies from the central government.

At the same time, the nations vast rural areas are also encouraged to introduce renewable energy technologies and products. Each pilot county will be able to obtain up to 18 million yuan (US$2.6 million) in subsidies for installing renewable energy facilities in housing complexes, schools and other public buildings. China plans to raise the share of renewable energy to 10 per cent of the nations total energy consumption by 2010 and to 15 per cent by 2020.
Source: www.chinaknowledge.com

International Finance Corp. (IFC), a World Bank unit, is providing a US$15 million risk-sharing facility and project structuring expertise to help evaluate and finance renewable energy projects in Sri Lanka, including small hydropower. IFC will supply the risk-sharing facility to Commercial Bank of Ceylon to help the bank evaluate and finance renewables projects to provide environmental and economic benefits.

IFC stated that the programme is intended to help the private sector mitigate climate change effects, while continuing to meet significant infrastructure gaps in South Asia. IFC will share its financing, project-structuring capability and benchmark data for renewable energy technologies, and help enhance Commercial Banks ability to appraise projects using these technologies. An advisory component funded by the governments of Japan and Ireland and the World Banks Global Environment Facility will help Commercial Bank build the capacity and skills to implement the programme. In April, the Asian Development Bank approved US$160 million in loans to Sri Lanka to improve electricity services, including support for renewable energy that is to add 200 MW of small hydropower to the national grid.
Source: www.hydroworld.com

In Bangladesh, the number of solar-powered homes has doubled to 300,000 within a year. The countrys renewable energy business is now reported to be the fastest growing green industry in the world. About 2.5 million inhabitants now get their power from the Sun. According to energy expert Mr. Shahidul Islam from the Bangladesh University of Engineering and Technology, the rapid expansion of solar energy has brought down the cost of panels. Rahimafrooz, a company that produces storage batteries for solar energy, has tripled its production this year to meet the burgeoning demand.
Source: en.cop15.dk

Offices of a private firm in Islamabad, Pakistan, have become one the first place in the country to be powered by geothermal energy. The Alternative Energy Development Board (AEDB) facilitated Shan Geothermal in setting up a pilot project of geothermal energy in line with the governments policy of promoting the use of renewable energy in the countrys power generation mix. It is an exciting demonstration, a way of making sure Pakistan has another exploitable source of green power, said Mr. Arif Alauddin, CEO of AEDB, during the launch of the pilot project. It is reported that the initial capital cost for the installation of the geothermal energy system was competitive with traditional energy systems.
Source: www.dailytimes.com.pk

According to the Ministry of Knowledge Economy of the Republic of Korea, nine state-run energy companies will invest 3 trillion won (US $2.6 billion) in renewable energy in 2009-2011. These companies have already invested a combined 605.9 billion won (US$525.3 million) in the past three years. Considering the returns on these investments, the nine firms will raise their investments by five times for renewable energy supply. Under the new investment, the state-run companies will supply 1,330 MW of renewable energy facilities including solar, wind and hydropower generation. With the expanded investment, renewable energy output will account for around 1.7 per cent of total power capacity, from less than 1 per cent currently. The nine firms are Korea Electric Power Corp., Korea District Heating Corp., Korea Water Resources Corp. and six power generating companies. The Republic of Korea aims to invest 107 trillion won (US$ 92.77 billion), or 2 per cent of its annual GDP, in environment-related industries over the next five years, but it did not specify how it would fund the investment.
Source: www.reuters.com

In the Philippines, the Department of Energy (DOE) is set to establish a Renewable Energy Trust Fund to support further development of renewable energy projects in the country. The Fund will be used to finance the research and development of renewable energy sources. According to Mr. Mario Marasigan, Energy Assistant Secretary, The Fund is part of the overall framework of the Renewable Energy Act of 2009.

Mr. Marasigan said that, apart from the various government agencies, 1.5 per cent of the proposed fund will be sourced from the revenues of the Philippine Amusement and Gaming Corp. as well as some from the Philippine Charity Sweepstakes Office. DOE will contribute a part of its collection from royalties from other sources (not necessarily from renewable energy). The Philippine National Oil Co. will also contribute to the fund. The fund will be administered by DOE and will be deposited in a government financial institution, Mr. Marasigan stated. To guarantee efficient disbursement of the fund,that task will be supervised by the National Renewable Energy Board.
Source: businessmirror.com.ph

The World Bank and its subsidiary, the International Finance Corp. (IFC), will offer Thailand US$700 million in financial support to help develop renewable energy. The two organizations will finance development projects through the World Banks Clean Technology Fund and IFC. The average interest rate will be 0.25-2.0 per cent, with repayment period of 20-40 years. Mr. Jitendra Shah, country sector coordinator at the World Bank, said Thailand is one of the first 10 countries where we have launched the support programme. The World Bank and IFC will provide technology and support for loan applicants. They will coordinate the markets clean development mechanism or carbon credit trading. The agencies said that the development of projects could cut total annual oil imports by about 3.25 million tonnes and greenhouse gas emissions by 10 million tonnes a year.
Source: www.bangkokpost.com

The World Bank will provide US$ 202 million for Viet Nam to implement a renewable energy development project during 2009-2013. An agreement to this effect was signed between the Governor of the State Bank of Viet Nam (SBV) Mr. Nguyen Van Giau and the World Banks Director in Viet Nam, Ms. Victoria Kwakwa, in Hanoi on 16 June.

Under the agreement, the project, capitalized at US$318 million in total, aims to provide more renewable electricity for the national grid to ensure Viet Nams social development and protect the environment.

Apart from the US$202 million from the International Development Association (IDA), the World Banks concessional lending arm, further investment will come from the governments own budget, local banks and private investors. Ms. Kwakwa said, The aim of the project is to increase the supply of electricity to the national grid from renewable energy, which is important to help Viet Nam expand and diversify its sources of electricity generation and also join Viet Nams efforts to reduce climate change. The project has three components. The first is investment in renewable energy through participating commercial banks, which will provide loans to eligible renewable-based projects not exceeding 30 MW developed by private sponsors. The second and third components will help develop the regulatory framework and capacity of the Ministry of Industry & Trade and relevant agencies, as well as help develop other renewable energy projects in the future.
Source: www.nhandan.com.vn

The Asian Development Bank (ADB) has set a target to double its clean energy investments in the region to US$2 billion yearly beginning 2013, in a bid to accelerate reduction in greenhouse gas (GHG) emissions. The new investment target, which is part of ADBs Energy Efficiency Initiative (EEI), will add to its already significant clean energy investments. EEI was formed by the ADB to help increase energy security and mitigate the regions growing GHG emission. In 2008, ADB met its US$ 1 billion a year investment target set at the outset of EEI four years ago.

ADBs clean energy investments included the energy efficient lighting for low-income households in the Philippines, wind power projects in China, hydropower development in Bhutan and a biomass power plant in Thailand. ADB also supported the improvement and expansion of energy-efficient mass transit systems in several Asian cities under the Sustainable Transport Initiative. In the first quarter of the year, ADB loans to the clean energy sector in the region rose by 1.5 per cent to US$478.6 million from year-ago level of US$471.3 million. ADB approved loans for seven projects during the period in India, China, Viet Nam, the Philippines and Thailand. It plans to distribute 13 million fluorescent globes to households and businesses in exchange for incandescent bulbs.
Source: business.inquirer.net

The Indian government has reduced the basic customs duty to 5 per cent on permanent magnets, a major component for wind power projects, to help promote power generation through renewable sources of energy. According to Finance Minister Mr. Pranab Mukherjee, It is imperative that the contribution of new and renewable energy sources of power is enhanced if we have to successfully combat the phenomena of global warming and climate change. The Ministry of New and Renewable Energy has fixed a target of 10,500 MW wind power during the 11th five-year plan period (2007-2012). In the 10th Plan (2002-2007), India saw the installation of 5,426 MW of wind power generation capacity, as against the target of 2,200 MW.
Source: www.business-standard.com