ADB and IEA Discuss Scaling up Collaboration in Energy Segment

ADB President Masatsugu Asakawa and Executive Director of IEA Fatih Birol recently discussed scaling up collaboration and renewing the MOU between the two organizations.

Asian Development Bank (ADB) President Masatsugu Asakawa and Executive Director of the International Energy Agency (IEA) Fatih Birol recently held a video conference meeting to discuss scaling up collaboration and renewing the memorandum of understanding (MOU) between the two organizations.

The two leaders discussed areas of potential collaboration, including how to boost the resilience of energy systems in Asia and the Pacific to better cope with extreme weather as a result of climate change or pandemic-induced supply interruptions, and the use of new technologies such as green hydrogen.

“We appreciate the collaboration with the IEA in recent years,” said Asakawa. “There is great synergy between the analytical capabilities of the IEA and ADB’s ‘on the ground’ knowledge in Asia. The energy sector is an important part of the post-COVID-19 pandemic stimulus packages for our developing members and we look forward to future collaboration with IEA in this vital area.”

ADB first signed the MOU with IEA in March 2017 to facilitate knowledge and analytical work to advance clean energy development in ADB’s developing member countries. As part of this, ADB worked with IEA to study power system flexibility in India to integrate more solar and wind energy in the grids.

The lending institution has invested more than USD 23 billion in clean energy from 2008 to 2019. Last year alone, the banks’ climate financing reached a record USD 6.56 billion, meeting its target of doubling its annual climate investments from 2014—one year ahead of schedule. Under Strategy 2030, it is targeting USD 80 billion in cumulative climate financing from its own resources by 2030 and for at least 75 percent of its country operations to feature climate adaptation and mitigation initiatives.

In April, we had reported that the bank had approved a USD 346 million loan to India to help provide an efficient and reliable power connection to rural agriculture customers in the state of Maharashtra. The first ADB-financed results-based lending (RBL) program in South Asia’s energy sector will help in the early construction and installation of metered HVDS through the installation of about 46,800 kilometers of 11 kilovolt (kV) grid extension lines, construction and upgrading of 121 33/11 kV distribution substations. The program will also build institutional capacity in the Maharashtra State Electricity Distribution Company Limited (MSEDCL) on HVDS.