Action Plan

During FY05, we began laying the foundation upon which the scale up strategy would be launched (please see FY05 Status Report). During this coming year we will deepen and extend support for renewable energy by improving existing tools for mobilizing financing, enhancing cooperation with financing bodies, and by implementing many of tasks outlined in the work program below.

Work Program Plan for FY06

Action 1: Project development support to meet the 20 percent per annum growth target for Renewable Energy and Energy Efficiency

The goal of this task is to contribute to building the renewable energy and energy efficiency project pipeline for lending to ensure that the 20% growth target can be met. To support this work, the Energy Anchor along with the Energy Sector Assistance Management Programme (ESMAP) has been able to mobilize funding from various donors. The ESMAP will open a new Renewable Energy window. These funds as well as services of Energy Anchor and ESMAP staff will be made available to regional operations teams to support RE scale-up sector work.

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Action 2: Improve instruments to mobilize financing

This activity will work to improve instruments to mobilize financing to meet the World Bank Group’s own commitment to increase investments in renewable energy by 20 percent per annum, as well as support the global commitment for scaling up renewable energy in developing countries.  Our efforts will focus on developing more effective means for collaborating with GEF and Carbon Finance operations, and greater engagement of the private sector. 

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Action 3: Enhance international cooperation.

Recently, the 2005 G8 meeting in Gleneagles produced a communiqué wherein the G8 invited the World Bank and other multilateral development banks (MDBs) to increase dialogue with borrowers on energy issues and put forward specific proposals at their annual meetings to:

1. make the best use of existing resources and financing instruments and develop a framework for energy investment to accelerate the adoption of technologies which enable cleaner, more efficient energy production and use;
2. explore opportunities within their existing and new lending portfolios to increase the volume of investments made on RE and EE technologies consistent with the MDBs’ core mission of poverty reduction;
3. work with interested borrower countries with significant energy requirements to identify less greenhouse gas intensive growth options which meet their priorities, and ensure that such options are integrated into Country Assistance Strategies;
4. develop local commercial capacity to develop and finance cost-effective projects that promote energy efficiency and low-carbon energy sources.

This builds on the G8 member’s commitment to, inter alia:

1. support a market-led approach to encouraging energy efficiency and accelerating investment and the deployment of cleaner technologies which will help transition to a low-emission future;
2. adopt, where appropriate market-based policy frameworks which:
   • Support re-investment in capital stock turnover;
   • Remove barriers to direct investment

To respond to the G8 requests, the WB has established four working groups: Enhancing Country Dialogue, Technology Assessment, Financial Products, and Adaptation. The Bank also has begun consultations with private banks, the clean energy industry, reinsurance companies and IFIs, among others.

Earlier this year, a study begun in FY05 on a Financing and Policy Network for Scaling Up Renewable Energy and Efficiency in Developing Countries concluded in April 2005 with an International Forum held in Washington. The forum agreed with study findings that the creation of a new network was unnecessary.  Instead, the Forum was able to reach agreement for follow-up of key activities with agencies and organizations committed to work towards scaling up activities.

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Action 4: Improve knowledge, learning and analytics.

This activity comprises several knowledge products:

• Renewable Energy Handbook/Toolkit for Bank Staff (REToolKit). The REToolKit provides essential tools to assist Bank task managers and country counterparts in improving their design and implementation of renewable energy products. This is a Flagship Product for the Energy Unit and the work is a joint EWDEN/ESMAP product. In addition, ESMAP will support the updating and maintenance of the REToolkit.
• Renewable Energy Business Handbook. Based on the surveys with the renewable energy industry and financial institutions, as well as the Renewable Energy Toolkit for Bank task managers developed in FY05, this Renewable Energy Business Handbook will expand the audience to external renewable energy industry to provide the necessary tools and information for them to conduct renewable energy business in developing countries.
• Technology Assessment Report. In addition to the RE toolkit and handbook, the WBG conducted several technology studies last year which provide sector-specific information to better engage stakeholders on trends on specific technologies. These products include parallel studies on RE and EE technologies and development of knowledge-based seminars and websites that contribute to enhancing renewable energy knowledge. The findings of the study were presented at Energy Week 2005.

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Action 5: Communications

Communications Strategy Implementation. The WBG recognizes the importance of getting its message out to a wide variety of interested parties. This will include publishing a newsletter, as well as papers, op-ed pieces and other articles in selected journals and newspapers on the Bank’s RE and EE efforts. We will also issue an annual progress report on World Bank renewable RE support during FY05. This will update the report World Bank Group Progress on Renewable Energy and Energy Efficiency: 1990-2004 issued in March 2005. The World Bank website on renewable energy will also be updated regularly.

External Boards. Jamal Saghir is on the Board of the Global Village Energy Partnership (GVEP). In addition, other Energy Anchor staff will continue to serve on the boards of the Photovoltaics Global Approval Program, the Triodos Renewable Energy for Development Fund and the UNEP/Sustainable Energy Financing Initiative.

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