A At a glance
· Over 1.3 billion people—20 percent of the world’s population—are without access to electricity. Another 2.5 billion depend on biomass and charcoal for cooking and heating. These are both results and causes of poverty. Solving them is essential to ending poverty.
· Global temperature rises above two degrees Celsius are likely to cause major social and environmental disruptions, more widespread infection and illness, lower food yields from farming, and more turbulent weather, including droughts and flooding. Shifting to renewable energy and enhanced energy efficiency are the most effective ways to power the future while reducing greenhouse gas emissions.
· The World Bank Group is mobilizing its knowledge and financing to help achieve the goals of the Sustainable Energy for All Initiative: achieve universal access to electricity and clean cooking fuels, double the share of the world’s energy supplied by renewable sources from 15% to 30%, and double the rate of improvement in energy efficiency—all by 2030.
What We Do: World Bank Group Engagement in Energy
· The Bank Group supports developing countries in designing and building energy systems using least-cost renewable sources such as hydropower, wind, solar and geothermal, while also taking advantage of energy efficiency. It provides advice on expanding access to electricity and modern household fuels, as well as incentives to create effective markets for renewable energy technologies, both on and off-grid.
· The Bank Group provides financing and advice to countries on oil and natural gas extraction, production, processing, transmission and distribution, as well as support for electric utilities to expand transmission and distribution, while also reducing losses and increasing collections.
· The Bank Group has provided $41 billion in financing for energy development since 2007. In fiscal year 2011, total Bank Group energy financing was $8.2 billion.
· Even as the Bank seeks to expand energy access among the poor, it has also increased its emphasis on renewable energy and energy efficiency. The Bank Group’s renewable energy portfolio increased from $3.1 billion between fiscal years 2008-09 to $4.9 billion in 2010-11. During the same period, the renewable energy proportion rose from 20 percent to 23 percent.
· The International Finance Corporation (IFC) has increased investment in new renewable energy from $627 million in 2010 to nearly $2 billion in fiscal year 2011. Its current outstanding power sector portfolio totals $4.7 billion.
· The Multilateral Investment Guarantee Agency (MIGA) supports green infrastructure that builds renewable energy capacity, encourages resource conservation and distribution efficiency, improves sanitation and offsets greenhouse gas emissions. Since 1990, MIGA has provided investment guarantees totaling over $2.5 billion for 73 green infrastructure projects worldwide.
· To help countries make the transition to low-carbon development, theBank-administered Energy Sector Management Assistance Program (ESMAP), has supported Brazil, China, India, Indonesia, Mexico, Poland and South Africa assess greenhouse-gas mitigation opportunities as part of their development strategies, and has developed low-carbon planning tools for use by policymakers and practitioners. ESMAP is a knowledge and technical assistance trust fund whose analytical and advisory activities (130 in FY2011) inform the Bank’s energy lending.
· Between 2010 and 2030, urban population growth in developing countries will increase energy demand. ESMAP’s Energy Efficient Cities Initiative has helped planners in Indonesia, Turkey, the Philippines and Vietnam make informed decisions on buildings, transport and power by using TRACE, an urban energy efficiency planning tool.
· The Government of Norway and Australia’s Global Carbon Capture and Storage Institute have financed the Carbon Capture and Storage Trust Fund (CCSTF), which helps developing countries explore CCS potential, as part of low-carbon growth strategies.
· The Global Partnership on Output-Based Aid (GPOBA), a multi-donor results-based financing mechanism, ties disbursement of funding to achievement of specified outputs. Its energy portfolio—Armenia Heating and Gas, Colombia Natural Gas, Bolivia Solar Home System (SHS) Energy, Nepal Biogas, Ghana SHS, Ethiopia Rural Electrification, India Mumbai Slum Electrification, Bangladesh SHS, and Bangladesh Renewable Energy Mini Grid schemes—is valued at $47 million and expected to benefit 3.5 million people.
· Ethiopia. In five years, three IDA credits totaling $440 million helped Ethiopia expand electricity to over half the country’s 8,700 towns and villages, powering streetlights, flour mills, water pumping and irrigation installations, telecommunications, businesses, schools and clinics.
· Morocco. In November 2011, the Bank approved $297 million in loans to help finance Morocco’s 500-megwatt Ouarzazate Concentrated Solar Power Plant Project, a key step in the country’s plan to deploy 2000 MW of solar generation capacity by 2020. The Bank has supported the plan since 2009; this loan co-finances a public-private partnership to develop the first phase for construction of a parabolic trough plant that will produce 160 MW and avoid emitting the equivalent of 240,000 tons of CO2 a year.
· India. Delivering power to India’s nearly 300 million people without electricity requires expanded transmission. Bank financing of over $1 billion has helped increase transmission by 52 billion kilowatt-hours, and expand India’s circuit by 40,000 km to reach 100,000 km, raising inter-regional electric power transfer capacity from 21 to 37 gigawatts, opening service to towns and villages in under-served regions.
World Bank Group Financing for Energy by Type, Fiscal Years 2007-11 (Revised US$ Millions)*
New Thermal Generation
Transmission & Distribution
Upstream Oil, Gas, Coal
WBG Energy Total
Memo Item: Low Carbon2
Memo Item: Access2
Memo Item: Fossil Fuels3
1: This category includes hydropower.
2: These categories are not mutually exclusive; some projects are classified as “Blended Low Carbon and Access”.
3: Sum of New Thermal Generation and Upstream Oil, Gas, Coal categories.
* The numbers in this table were drawn from a review of WBG energy financing undertaken in 2011.
For more information, please see: www.worldbank.org/energy
Contact: Christopher Neal: (202) 473-2049/ Email: firstname.lastname@example.org
Updated October 2012