Skip to Main Navigation
FactsheetMay 31, 2023

IDA Private Sector Window (PSW) and Climate 

The world’s poorest countries are often the most affected by the impacts of the climate crisis. For the World Bank’s International Development Association (IDA), addressing climate change is a key priority. Through innovative tools like the Private Sector Window (PSW), IDA is mobilizing private investment to help finance mitigation and adaptation in the most vulnerable countries. Working with the World Bank’s private sector arms—the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA)—the PSW leverages IDA’s resources to mitigate risks and enable high-impact development projects—many focused on climate action.  

To date, the majority of IDA PSW projects have supported investments in power generation. Investments in solar and wind projects are harnessing abundant, low-cost, and renewable power sources, while supporting economic development and creating jobs.  

  • In Malawi, a country that has some of the lowest rates of electrification in the world, IDA PSW’s support to MIGA is helping the country tap into its tremendous solar power potential. A 60-megawatt solar photovoltaic facility in the Salima province will increase energy supply by 16 percent. A 20-megawatt facility in Golomoti, in the Dedza district, will introduce battery storage for the first time in the country, increase levels of energy access, and reduce more than 45,000 metric tons of carbon dioxide emissions over its life.   

  • In Djibouti, IDA PSW support made it possible for MIGA to offer political risk insurance, for the first time in the country, for a 60-megawatt wind farm. Taking advantage of the highest annual wind speeds in Africa, the Ghoubet Wind Farm will increase electricity generation capacity from a renewable source, reducing the country’s reliance on electricity generated from expensive and polluting fossil fuels and imported from neighboring countries. Once operational, the wind farm is expected to avoid more than 160,000 tons of carbon dioxide equivalent per year.   

  • In Burkina Faso, the construction and operation of five separate solar photovoltaic energy generating facilities—Dedougou Solaire, Kodeni Solar, Société de Production d’Energie Solaire de Ouagadougou, Tile Energie, Zano—will make more energy available at more accessible prices to millions of people. When completed, Urba Solar will have a combined electricity generation capacity of more than 100-megawatts and represent greenhouse gas savings equivalent to the removal of 30,000 gasoline powered vehicles per year.   

  • In Somalia, after decades of conflict, the support of the IDA PSW is making it possible for MIGA to provide a guarantee to Kube Energy for a solar hybrid power plant that will replace existing diesel generation, translating to greenhouse gas emissions savings of 2,804 tons of carbon dioxide equivalent per year (tCO2e).  

Initiatives that encourage clean and efficient cooking reduce the use of solid wood fuels—like charcoal and firewood—that drive deforestation, create hazardous levels of indoor air pollution, and contribute to greenhouse gas emissions.   

  • In Burkina Faso, where wood and charcoal are often used for cooking, IDA PSW support for an IFC investment in Sodigaz is expanding the distribution of liquefied petroleum gas (LPG), reaching 68 percent of the population in urban and rural areas by 2030 and providing a cleaner, safer, and more economical alternative. The project will also provide power from a renewable source to a 1,000-unit affordable housing estate near the capital, Ouagadougou.  

Harnessing hydropower not only provides a consistent and renewable source of energy but can also be an engine for economic growth through increased domestic power supply and regional exports.  

  • In Nepal, a 216-megawatt hydropower plant on the Upper Trishuli River will increase the country’s domestic power supply by approximately 20 percent, generating a sufficient electricity supply for as many as 9 million people. As the first Independent Power Producer (IPP) project in the country, it is providing a model that can be replicated for large-scale, climate adaptation projects in the hydropower sector.   

  • The Solomon Islands, a small island state, is particularly vulnerable to external shocks like natural disasters and climate change. A 15-megawatt hydropower plant on the Tina River is providing a flexible and sustainable power source, substantially increasing access to power for the population, decreasing dependence on imported fossil fuels, and stimulating the growth of new industries, businesses, and jobs.  

Structured debt funds help to make critical capital available for businesses and projects that mitigate or reduce greenhouse gas emissions.  

  • IDA PSW financing supported IFC’s investment in the Afrigreen Debt Impact Fund, which offers financing solutions to support small to medium on-and off-grid solar power plants. These new facilities will make further investments in renewable resources possible, while creating jobs and positively impacting lives.  

  • With the support of the IDA PSW, IFC has invested in the Africa Go Green Fund. This pan-African fund, with a focus on West Africa, provides debt, guarantees, and advisory services to finance private sector energy efficiency and renewable energy solutions, creating 60,000 indirect jobs in the process.    

Last Updated: May 31, 2023