On December 12, 2022, the World Bank Group’s Energy Sector Management Assistance Program (ESMAP) with support from the Japan-World Bank Program for Mainstreaming Disaster Risk Management in Developing Countries (the Japan Program) and the Global Facility for Disaster Risk Reduction (GFDRR) gathered to launch the ESMAP Technical Report “Economic Analysis of Power Projects: Integration of Climate Change and Disaster Resilience”.
Power sector infrastructure is facing the impacts of greater frequency and intensity of natural hazards because of climate change, and the need to increase the resilience of energy infrastructure is clear. However, it remains difficult to evaluate different degrees of resilience and to assess their impact on economic returns. This report addresses these challenges and proposes a framework on how to incorporate resilience into the economic analysis of power projects.
With support from the Japan Program, the Tokyo Electric Power Company (TEPCO) with extensive experience incorporating resilience into their power projects presented at the report launch to share their experiences. As the World Bank strives to promote resilience in the energy sector, cross collaboration among GFDRR, ESMAP and leading Japanese institutions will be paramount to revolutionize power projects to address the urgent climate action agenda.