Click here for search results

Site Tools

Energy - The Facts

What is the status of the Bank’s energy strategy?

  • A draft energy strategy was submitted to a committee of the Board of Executive Directors of the World Bank in 2011, based on an Approach Paper, and drawing on consultations with over 2,100 participants from government, civil society, the private sector, and academia, among others, in 56 face-to-face meetings held around the world, as well as over 170 written submissions. A summary of the input has been posted on our website. 

What is the energy challenge in developing countries? 

  • Over 1.2 billion people - 20% of the world's population - are still without access to electricity worldwide, almost all of whom live in developing countries. This includes about 550 million in Africa, and over 400 million in India. Access to electricity must be environmentally and socially sustainable.

  • About 2.8 billion people use solid fuels—wood, charcoal, coal and dung—for cooking and heating. Every year fumes and smoke from open cooking fires kill approximately 1.5 million people mostly women and children, from emphysema and other respiratory diseases.

How much would it cost to give everyone access to electricity?

  • To deliver universal access by 2030, new capital investment of about $35-40 billion a year is needed. This is in addition to worldwide annual investments of about $450 billion just to sustain energy services at current levels.

How much is the Bank financing for energy?

  • The World Bank Group committed $8.2 billion to support energy finance in 2012. The Bank Group approved a total of $3.6 billion in financing for renewable energy projects in fiscal year 2012, a record  44% share of its annual energy lending. Looking only at power generation projects approved in 2012, renewables accounted for an even larger share.

Energy Lending 2012

World Bank Group Energy Financing for 2012 | Figures in $US Millions 

What is the World Bank's financing by energy type?

Project Type

2007

2008

2009

2010

2011

2012

Total

Energy Efficiency

753

1,521

1,685

1,802

1,551

1,353

8,666

Renewable Energy

840

1,471

1,678

1,905

2,977

3,615

12,487

New Thermal Generation

364

1,087

987

4,287

290

690

7,705

Other Energy

717

1,015

1,702

2,019

1,783

1,369

8,605

Transmission & Distribution

458

1,605

1,204

2,208

1,397

270

7,142

Upstream Oil, Gas, Coal

729

972

1,076

725

182

880

4,564

WBG Energy Total

3,862

7,670

8,332

12,947

8,181

8,177

49,168

 World Bank Group Energy Financing for 2012 | Figures in $US Millions

How much of this is renewable energy and how much in fossil fuels?

  • The Bank Group’s lending for renewable energy reached 44 percent of all energy financing in fiscal year 2012.

     
  • Since 2007, the Bank Group has invested about $12.5 billion in renewable energy and $8.7 billion in energy efficiency, for a total of $21.2 billion, or 44 percent of energy sector lending. During the same period, fossil fuels totalled $12.3 billion, or 25 percent of energy lending.
     

What happens when people don’t have electricity?

  • The number of people without access to energy in sub-Saharan Africa is projected to rise to 90 to 100 million in 2030. Without access to energy service, the poor will be deprived of the most basic of human rights and of economic opportunities to improve their standard of living. People cannot access modern hospital services without electricity, or feel relief from sweltering heat. Food cannot be refrigerated and businesses cannot function. Children cannot go to school in rainforests where lighting is required during the day. The list of deprivation goes on.

Are Bank energy projects reaching the poor?

  • 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.  The Electricity Network Reinforcement and Expansion Project, approved by the World Bank in May 2012, extends this work by upgrading and extending the grid in order to improve the overall service delivery of the Ethiopian electricity network.  The project is expected to benefit 385,000 people. 

  • Bangladesh. In 2002, 7,000 Bangladeshi households used solar panels. Today, over 1.4 million low-income rural homes in Bangladesh have electricity—delivered by PV panels.  Installations under a World Bank-supported project have doubled in the past two years to more than 40,000 a month.

  • Indonesia. The Bank is working with Pertamina Geothermal Energy (PGE) – a subsidiary of state-owned company Pertamina – to boost Indonesia's geothermal generation capacity in South Sumatra and North Sulawesi. Upon completion of the project in 2015, there will be additional capacity of 150 megawatts, displacing an equivalent capacity of coal-based power generation, and reducing local and global environmental pollution.

  • Mexico. Mexico entered the Guinness Book of Records after distributing almost 23 million energy-saving light bulbs for free. The national program, partially financed by the World Bank, established over 1,100 exchange points at which customers replaced their incandescent bulbs with CFLs.  The energy saving from the program so far is estimated at 1,400 gigawatt hours.

  • Since 2003, for the poorest countries —many of them in Africa — the Bank has helped build, and assure reliable delivery of almost 55 gigawatts (GW) of electricity. These include low-income households and higher-income households.

  • A review of World Bank (IBRD and IDA) energy projects shows that they have connected 24 million people in low-income developing countries to energy for the first time by building 27,000 miles of transmission and distribution networks.




Permanent URL for this page: http://go.worldbank.org/6ITD8WA1A0