The World Bank is approaching the energy challenge from four angles:
- We are increasing our focus on low access countries that have prioritized energy issues in their country strategies with the Bank
- We are 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
- We are supporting mobilization of sector-level financing through what we call an investment prospectus, working with other development partners and private sector stakeholders
- We are 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 launching later this year
- RISE (Regulatory Indicators in Sustainable Energy Report), launched in February 2017
- SEAR (State of Energy Access Report), launching in May 2017
The World Bank Group is carrying out long-term system planning to identify and accelerate the implementation of the most economic low-carbon options in client countries, and support with lending and assistance as appropriate, to help client countries deliver affordable and reliable energy services in a manner that is consistent with their NDCs, the global climate goals, and the WBG’s Energy Sector Directions Paper.
The World Bank is focusing on crowding in private sector funding for clean energy, with the objective of mobilizing $25 billion of commercial funds over FY16–FY20, more than double the amount mobilized over the past five-year period. Crowding in this funding and expanding access to renewables will require a significant volume of concessional finance.
The WBG supports development of energy systems based on lowest-cost options with an emphasis on renewable sources such as hydropower, wind, solar and geothermal, while also promoting energy efficiency. Projects support achievement of universal access to electricity and modern household fuels, as well as improved utility performance and sector governance.
The World Bank supports client countries with policy and financial innovations. This includes helping governments create the right policy, regulatory, and contractual frameworks. Bank’s Global Geothermal Development Plan mobilizes new concessional financing for the risky and capital intensive upstream phases of geothermal development to catalyze investment in all other stages of the geothermal value chain, unlocking geothermal potential from Indonesia to Caribbean Islands. In the MENA region, the World Bank is supporting development of the largest in the world concentrated solar power (CSP) with long term storage as well as development of innovative applications of CSP technology. It also works on large scale deployment of innovative technologies such as floating solar in Pakistan and India, electric storage-solar, and wind-solar hybrids in India.
In countries with low energy access, the priority is providing affordable and reliable energy. Grid, mini-grid, and off-grid solutions are pursued, while engagement in cleaner cooking and heating solutions is expanding.
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 technical assistance initiatives through global partnerships and trust funds such as the Energy Sector Management Assistance Program (ESMAP) and the Global Gas Flaring Reduction Partnership (GGFR). These initiatives include the SEforAll Technical Assistance Program to help countries reach the 2030 goal of universal energy access, the Global Geothermal Development Plan, Lighting Africa, Lighting Asia, Renewable Energy Resource Mapping, Energy Efficiency Guidance Notes and the Energy Subsidy Reform Technical Assistance and Delivery Facility.
Last Updated: Apr 10, 2017