Natural Resources & Energy

There are plans to help fund a system that uses steam generated at factories to produce electric power.

The two key points to consider when providing support in the field of electric power and energy are (1) achieving sustainable economic growth through the stable supply of electric power and (2) promoting rural electrification.

The electric power sector accounts for a high proportion of ODA Loans and Technical Cooperation provided by JICA, and going forward, JICA aims to improve the efficiency of its support programs. For example, JICA can provide support more efficiently and expeditiously by tackling both the research and construction of power plants in an integrated manner.

JICA initiatives have focused on developing infrastructure for power and fostering human resources capable of building, maintaining and managing it. The global trend toward liberalization of the electric power segment, however, has prompted a shift from government-led to private-led management of electric power in developing countries. JICA has started providing assistance aimed at pushing this reform forward as smoothly as possible. In promoting rural electrification, it is necessary to devise plans that consider the views of the local community, the benefactors, from the standpoint of human security, and strengthen the capabilities of government institutions. JICA is increasing assistance in Africa, which is seen as a core region in this field.

The Electric Power Forum for Asia was held at the JICA Research Institute in Tokyo in March 2009. Today, developing countries face a variety of challenges to ensure stable supplies of electric power and meet rapidly growing demand spurred by economic expansion. The forum brought together officials representing the electric power segment in five Asian countries and from private electric power organizations in Japan to report on and discuss the possibility of public-private collaboration and reform of the electric power sector as well as share information on reform initiatives already implemented. This helped deepen the network between Japan and the five Asian nations. For example, negotiations regarding issue resolution progressed more smoothly when Japanese officials visited other countries.

JICA executes various initiatives in the three fields of mining, renewable energies and energy conservation.

(1) Mining (Resources)

JICA develops resource information and master plans for the sustainable development of mineral resources and to boost international competitiveness in developing countries.

(2) Renewable Energies

JICA is conducting studies regarding plans for solar power and small hydroelectric power generation from the perspective of environmental preservation and as independent power sources for rural electrification. In addition, JICA has started power supply initiatives that connect solar power systems with electricity distribution lines using Grant Aid in various countries worldwide. In Kenya, Indonesia and Latin America, JICA is engaging in programs related to geothermal power.

(3) Energy Conservation

JICA trains energy management technicians to support energy conservation efforts using sophisticated Japanese technologies. There have been many positive outcomes from this program. Technicians educated in Thailand, Turkey and Poland can now manage thermal and electric power. Following a series of programs in Turkey, technicians were soon able to operate systems independently. These sites are now used as third country training grounds.

In ODA Loans, JICA is providing Two-Step Loans^[1] in India and Viet Nam focused on energy conservation and renewable energies. Two- Step Loans strengthen financing and the ability to establish energy conservation projects, and increase the effectiveness of support by complementing Technical Cooperation. Through this scheme, it is easier to provide financial support for private-sector activities. JICA also supports initiatives that utilize the advanced technologies of Japanese companies via Special Terms for Economic Partnership (STEP). This provides interest rate benefits for projects employing sophisticated Japanese technology.