The World Bank is approaching the global energy challenge from four angles:
- Increasing our focus on countries with low levels of energy access that have prioritized energy issues in their country strategies with the World Bank
- Helping to mainstream sector-wide approaches for universal energy access in more than 18 countries, like in Myanmar where we recently committed $400 million to bring electricity to over 6 million people by 2021
- Supporting mobilization of sector-level financing through what we call an investment prospectus, working with other development partners and private sector stakeholders
- Working to build global knowledge on energy access through products such as:
- GTF (Global Tracking Framework), new edition launched in April 2017
- MTF (Multi-Tier Framework), new edition to be launched in FY18
- RISE (Regulatory Indicators in Sustainable Energy Report), launched in February 2017
- SEAR (State of Energy Access Report), launched in May 2017
The World Bank also aims to bring in private sector funding for clean energy, with the objective of mobilizing $25 billion of commercial funds over FY16–FY20. That is more than double the amount mobilized over the past five-year period.
We help with the development of energy systems based on lowest-cost options with an emphasis on renewable sources such as solar, hydropower, wind and geothermal, with a keen focus on energy efficiency. Projects support achievement of universal access to electricity and modern household fuels, as well as improved utility performance and governance of the sector.
The World Bank also aids client countries with policy and financial innovations. For example, in the MENA region, the World Bank is supporting the development of a significant concentrated solar power (CSP) initiative with long term storage and development of innovative applications of CSP technology. It is working on large scale deployment of innovative technologies such as floating solar, and wind-solar hybrids in India. And the Global Geothermal Development Plan mobilizes new concessional financing for risky and capital intensive upstream phases of geothermal development to catalyze investment in all other stages of the value chain, unlocking geothermal potential from Indonesia to the Caribbean.
In countries with low energy access, the priority is provide people with affordable and reliable electricity access. Grid, mini-grid, and off-grid solutions are pursued, while engagement in cleaner cooking and heating solutions is expanding. The Bank is supporting countries in their efforts to increase access to cleaner, more efficient cooking and heating solutions, with projects in more than 15 countries, including regional programs in Asia, Africa and Central America.
Countries vary greatly in their ability to transition to sustainable energy sources and in some cases, natural gas is an important bridging or transitional fuel. Gas is often the least-cost means of providing a flexible source of electricity when demand and supply fluctuate. The World Bank is helping countries develop national and regional gas markets and, where it makes economic sense, use natural gas as an alternative to coal and biomass.
We also recognize the global challenge of balancing energy for development with its impact on climate change and strive to help client countries realize affordable alternatives to coal power. There has been no WBG financing for “greenfield” coal-fired power plants since 2010.
The World Bank also supports strategic global partnerships and programs such as the Global Gas Flaring Reduction Partnership (GGFR) and Energy Sector Management Assistance Program (ESMAP). ESMAP is a global knowledge and technical assistance program that supports World Bank development projects and helps shape global energy policy. It focuses on helping countries reach their 2030 energy goals through work in Energy Access, Renewable Energy, Energy Efficiency, Energy Subsidy Reform, and Governance, Markets, and Planning, while emphasizing Gender and Small Island Developing States. It also supports the SEforALL Knowledge Hub to generate the comprehensive data and analytical tools to help governments craft policies that attract investments and track progress toward SDG7. Key initiatives include the Global Geothermal Development Plan and Renewable Energy Resource Mapping and support to Lighting Global and EDGE Buildings. In FY14-16, ESMAP’s analytical work and technical assistance informed $4.8 billion in World Bank IDA and IBRD lending through 250 activities in 130 countries. In turn, these lending projects leveraged a further $4.6 billion from public, private, and other sources.
Last Updated: Sep 29, 2017