They need to make major advances on education, energy production, electricity access, health, infrastructure and nutrition just to make up for losses in recent years. Climate costs require significant additional resources, as does the increase in the cost of debt service and repayment.
Tag Archives: Energy
Solutions to Finance the Energy Transition in Developing Countries
Low- and middle-income countries need to transform their power sector infrastructure at an unprecedented scale and pace to meet climate and development goals. The World Bank’s new framework “Scaling Up to Phase Down” maps out a 6-step virtuous cycle to help these countries overcome critical barriers that are paralyzing their energy transition and catalyze investments.
Despite accounting for two-thirds of the global population, developing countries receive only one-fifth of global energy investment. They need affordable financing, especially at the start of their energy transitions, to improve sector conditions and attract growing volumes of private capital.
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Scaling Up to Phase Down: Financing Energy Transitions in the Power Sector
To meet climate and development goals, low- and middle-income countries need to transform their power sector infrastructure at a scale and pace that is unprecedented. The World Bank framework “Scaling Up to Phase Down” maps out steps to support developing countries, with the help of development partners, to scale up affordable, secure, and reliable clean energy and phase down coal-fired electricity generation.
Africa will remain poor unless it uses more energy
Greenhouse-gas emissions south of the Sahara are tiny
A window seat in a helicopter flying south-west from Windhoek, Namibia’s capital, offers an otherworldly diorama. The landscape shifts from earthly desert to Mars-red dunes, then to moonscape as the chopper nears Luderitz. In the early 1900s this tiny port was the hub for a diamond boom that brought the art-nouveau mansions that perch on the town’s slopes. More than a century on, Namibia hopes that the area will again bring riches, this time from sun, wind and land, by hosting one of Africa’s largest renewable-energy projects.
Success Story: Development Finance International Inc. (DFI)
Bridging Business and Development with Netherlands’ Partners
Among DFI’s proudest accomplishments are our long-term partnerships with Dutch organizations to address development needs and support sustainable business in emerging markets globally.
Since DFI’s inception 30 years ago, and continuing through this day, DFI has worked closely with several Dutch corporate clients, The Netherlands Embassy in Washington, DC (and around the globe) and international funders such as the World Bank, the Inter-American Development Bank and other public, private and Civil Society Organizations (CSOs) to tackle the most pressing challenges in critical areas including food security and sustainability, healthcare, climate change, and science and technology, among others.
What IPCC climate projections mean for World Bank energy projects in Africa
We already knew climate change would be a major threat to development gains in Africa, but a recent report by the UN’s Intergovernmental Panel on Climate Change (IPCC) reveals the impacts could be significantly worse. Across the continent, research indicates with greater precision and certainty the future increases in flooding severity and extreme weather events over the coming decades. Among the findings: In West Africa, the number of potentially lethal heat days reaches 50–150 per year at 1.6°C global warming and 100–250 per year at 2.5°C global warming, with the highest increases in coastal regions; In Southern Africa, heavy rainfall events would become more frequent and intense at all levels of global warming, increasing exposure to flooding; and, at 2°C global warming, unprecedented extreme droughts are projected to emerge. These are alarming projections given that the continent is the least responsible for climate change but most vulnerable to its consequences.
Communities still live without reliable and affordable electricity needed to deliver social services and to be more resilient, better prepared, and more responsive when disasters hit.
“Yet even as the climate crisis accelerates, Africa needs to close its huge energy access gap and achieve its development goals.
Leveraging the Power of Energy to Light Up Africa
- West Africa has made great strides in electrification, but there is still a long way to go to connect the entire population and provide everyone with reliable and affordable energy.
- While several countries in the subregion have significant renewable energy sources, they lack the conditions to develop them.
- To accelerate Africa’s energy transformation, the World Bank is supporting the West Africa Power Pool (WAPP) through financing for interconnection infrastructure and reforms aimed at developing a regional electricity market.
ABOMEY-CALAVI, July 22, 2021—In a corn mill in Zoundja, a district in Abomey-Calavi, a northern suburb of Cotonou, Benin, about twenty pots and pans compete for space amidst a deafening noise that can be heard all over the neighborhood. At the control of his machine, Antoine K has the privilege of serving the households of the district by grinding their corn into flour. The only problem is that not everyone can afford his services in this urbanized area where rich and poor live side by side. “I grind a kilo of corn for CFAF 75 (1.5 cents), which is too expensive for some women, but I have no choice if I want to be able to pay the electricity bill and keep the mill running,” says the miller.
In 25 years of service, Antoine, now in his 50s, has seen a lot of improvement in access to electricity. Neighborhoods have been progressively electrified and today power outages are less and less frequent.
But he has also seen the cost of services rise as electricity rates in Benin have increased. The last bill he received from the Beninese power company was for more than CFAF 100,000 (about $180), including taxes—too much for his CFAF 200,000 ($365) monthly income. The increase in electricity rates has a domino effect on the cost of his services.
In Benin, as is the case everywhere in West and Central Africa, the mill occupies a central place in the life of households that consume corn or other grain-based foods on a daily basis. But the price of electricity represents an exorbitant cost for these small businesses, whose clientele is made up essentially of poor households.
Still a long way to go despite significant progress
With an electrification rate of 53% in 2019 against only 34% in 2000, West Africa has made significant progress, but challenges remain, and nearly half the population still lacks electricity.
The story of the electrification of Rosalie Zongo’s village in Burkina Faso illustrates this progress and also shows the need to address persistent challenges, develop the potential of diverse energy resources, and strengthen interconnections.
Toward an efficient regional power market in West Africa
A regional solution that goes beyond the efforts made at the national level is imperative to ensure a sustainable energy future in Africa. “Our region has immense electrical energy resources, which are capable of meeting demand for many years. But they are concentrated in a few countries that sometimes lack the means to develop them. Through interconnection, we are making power available to countries,” says Apollinaire Siengui Ki, Secretary General of the West Africa Power Pool (WAPP). “Connectivity makes it possible to supply the amount of energy needed at a lower cost.”
Created in 1999, WAPP brings together 14 countries. Its mission is to promote and develop infrastructure for the production and transmission of electrical energy and to ensure the coordination of power exchanges between the member states of the Economic Community of West African States (ECOWAS).
With the support of its partners, including the World Bank, WAPP has mobilized approximately $5 billion to complete nine cross border interconnections and aims to interconnect all 14 countries by 2024. This has improved access in several countries of the region, some of which, such as Côte d’Ivoire, are now able to sell excess electricity to other countries that need it.
Trust: an essential component of any successful commercial venture
For such a regional market to work, significant reforms are required at the country level to enable market stakeholders to effectively and efficiently play their roles as reliable buyers and reliable suppliers of electricity.
To help Burkina Faso, Côte d’Ivoire, Guinea, Liberia, Mali, and Sierra Leone implement the sectoral reforms needed to successfully create this regional electricity market, the World Bank provided $300 million in financing approved in July 2020. The goal: to support the implementation of the December 2018 ECOWAS directive on securing cross border trade in electricity, which is based on three main pillars: increasing confidence in the application of electricity trade agreements by supporting mechanisms to improve payments and the supply of electricity; implementing least-cost supply decisions for electricity that take into account regional options and promote competition; and promoting transparency by addressing the issue of the solvency of national electricity companies and keeping the market informed of key investment decisions that may impact supply and demand.
“The World Bank has consistently prioritized the development of interconnections and regional electricity trade in order to reduce the costs of electricity and therefore to limit the sector’s fiscal burden and to lower costs for businesses and consumers,” says Ousmane Diagana, World Bank Vice President for West and Central Africa. “Pooling the region’s diverse green resources, such as hydropower in Guinea and Liberia and solar energy in the Sahel, will help build a more resilient system that will be better able to adapt in the long run to the various shocks that the region faces.”
Banking on green energy and powering the digital revolution
By 2030, regional electricity consumption is expected to increase by 100%. Meeting this exponential growth in demand by expanding the existing electricity mix would increase carbon emissions by an estimated 102%. But closer regional cooperation will make it possible to adopt cleaner technologies and reduce the carbon intensity in power generation by 32%. Regional trade will thus enable the development of renewable energy projects that are too large to be accommodated by a single country’s power system. Also noteworthy is the approval of $465 million of new financing in June 2021, which will help increase renewable energy integration and improve the operation of the regional power grid through battery energy storage—an innovative initiative that will boost investment in renewable energy.
“We want to move out of the hydrocarbon era and into green energy,” says Gesler Murray, Liberia’s Minister of Mines and Energy. “Liberia is in a region that is rich in solar energy, and we also have many rivers on which various types of hydroelectric systems could be installed.”
The COVID-19 pandemic has prompted rapid growth in the use of digital platforms and applications in all sectors and at all levels. But digital transformation cannot be achieved in the region without better access to electricity.
The time has come to optimize the management of energy resources in West Africa in order to improve the daily lives of the region’s inhabitants and enhance the productivity of its economies. From Antoine’s mill in Benin, to Rosalie’s family in Burkina Faso, to the major industries of the subregion, Africa is being transformed by the driving power of energy.
eC2: Vietnam: Technical Support for Energy Sector
Deadline: 03-May-2021 at 11:59:59 PM (Eastern Time – Washington D.C.)
The assignment objective is to provide technical capacity support to the World Bank providing technical specifications for state-of-the-art SCADA system to be implemented in Vietnam, battery storage and HVDC lines to inform the World Bank due diligence in a new investment in Vietnam.
We can end routine gas flaring by 2030. Here’s how
We are now less than a decade away from the goal of Zero Routine Flaring by 2030, an ambition that sits at the nexus of climate change mitigation and energy policy. Developed by the World Bank and launched in 2015 by the UN, World Bank and several governments, along with oil companies and development institutions, the Zero Routine Flaring initiative is designed to end an oil industry practice that has existed since oil production first began more than 150 years ago.
eC2: PROBLUE Project Coordinator for Cabo Verde
Deadline: 08-Mar-2021 at 11:59:59 PM (Eastern Time – Washington D.C.)
Task 1: Support the WBG team on the development and coordination of the PROBLUE project. The consultant should provide on-the-ground support, project coordination, and logistics for the WB team. This should cover elements related but not limited to organization of meetings, outreach, communication with stakeholders, as well as providing with local knowledge. Specifically, the consultant will: Serve as the WBG main focal point vis-à-vis the Ministry the Tourism and Transport and the private sector.
Act as a liaison to help set up meetings and ensure smooth conduct of meetings (
Ensure flow of information and documents between counterparts.