Energy

Energy is the lifeline of a modern economy and a foundation for development. Without energy, hospitals can’t operate, businesses can’t grow, and students can’t study after dark. Expanding access to reliable and affordable energy can raise living standards, safeguard essential services, create jobs, drive digitalization, and propel growth. 675 million people are without electricity; 450 million more have unreliable power.

More than a billion people around the world live in energy poverty. That means they don’t have adequate, reliable, and affordable energy for lighting, cooking, heating, and other daily activities. Most of them lack an electrical connection, and millions more suffer frequent power outages, equipment malfunctions, or gaps in their distribution network. The consequences are severe: When people lack access to energy, they are less healthy and are denied opportunities to improve their lives and lift themselves out of poverty; they are also less able to cope with climate change, natural disasters, and extreme weather events. Eight out of 10 people without electricity today live in remote, fragile, or conflict-affected regions.

Ramping up Investments for Affordable, Reliable Energy, While Managing Emissions Responsibly

The challenge today isn’t just about basic access; it’s about scale. Countries need enough power to run industries, support services, and compete globally. By 2035, emerging economies will make up almost two-thirds of global electricity needs. And by 2050, more than 73 million kilometers of power lines need to be added or upgraded in developing countries—that’s more than were built globally over the past 100 years.

To meet this growing demand, annual investment in electricity generation in developing countries needs to more than double by 2035—from $280 billion today to $630 billion. More than half of that must come from the private sector because public financing is limited, and government balance sheets are stretched. But developing countries currently attract just one-fifth of global electricity investment as investors focus on lower-risk energy projects in developed countries.

Governments, businesses, philanthropies, and development banks each play a role in accelerating investments to generate more affordable power, expand connections, and develop cross-regional connections. Governments must drive reforms, the private sector must invest with confidence, and development banks must deliver financing and uphold accountability.

The World Bank Group provides governments with knowledge, analytical, and advisory support to set policy direction, establish regulatory and macroeconomic frameworks, and strengthen institutions—including power utilities, the backbone of the electricity sector. This work enhances the viability of energy projects, creating an enabling environment for businesses to thrive and giving private investors the confidence to drive meaningful impact while generating returns.

Through the World Bank Group's private sector arms —the International Finance Corporation and Multilateral Investment Guarantee Agency—we provide financing, equity, guarantees, and political risk insurance to ensure bankability and market access by lowering the risk for investors.

Our goal is to help countries deliver the energy their people need, while giving them the flexibility to choose the path that best fits their development ambitions, their national context, and their Nationally Determined Contributions. Over the last 10 years, the World Bank Group committed nearly $100 billion to energy. Our current programs provided access to electricity for 171 million people globally in FY24.

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There are more options than ever before to supply electricity. The World Bank Group is scaling up its knowledge and financing to deliver faster and provide cost-efficient energy solutions, meeting growing demand while boosting job creation and growth.

Countries have different needs and resources, which is why our approach prioritizes accessibility and affordability, manages emissions responsibly, and embraces the reality that context matters. In many countries, solar and wind now offer the lowest-cost path to electrification. In others, natural gas or hydropower may play a role. As technologies evolve, nuclear offers new opportunities. That’s why we support countries in finding the energy mix that works best for them.

Our work is organized around three areas: getting more out of the grid, expanding supply, and managing emissions responsibly.

Electricity Grids

Strong electricity grids are at the heart of affordable, accessible electricity, which is why it's important to increase investment in transmission and distribution grids. The World Bank Group will expand the use of digital tools, including AI, to modernize grid operations, manage demand more efficiently, and reduce losses.  We will also deepen our support for regional power trade and cross-border connections.

Expanding Supply

As countries need new generation capacity to meet rising demand, we will support a full range of technologies: solar, wind, hydropower, geothermal, storage, gas, and, eventually, nuclear.

Managing Emissions Responsibly

The World Bank Group has not financed a new coal-fired power plant since 2010. We advise on and finance the retirement or repurposing of coal plants, supporting carbon capture for industry and power generation.  We work with countries to reduce flaring and methane emissions from gas systems, capturing gas that can be used for electricity or industry instead of being wasted. For gas, we will continue to advise on and finance midstream and downstream projects when they represent the least-cost option, align with countries’ Nationally Determined Contributions and national development plans, minimize stranded asset risk, and don’t constrain renewables. We aim to further clarify with our board whether we should pursue upstream gas in exceptional circumstances to boost energy access in the poorest countries.

Nuclear Energy

The World Bank Group is reentering the nuclear energy space. We will advance this work in close partnership with the International Atomic Energy Agency (IAEA)—building capacity and strengthening our ability to advise on non-proliferation safeguards, safety, security, and regulatory frameworks.

Together with the IAEA and other partners, we will support efforts to extend the life of existing reactors in countries, and help support grid upgrades and related infrastructure. We will also work to accelerate the potential of Small Modular Reactors—so they can become a viable option for more countries over time.

Mission 300: A Partnership to Expand Electricity Access to 300 Million People

Mission 300 aims to provide electricity to 300 million people across Africa by 2030. It is led by the World Bank Group and the African Development Bank, with the support of partners. This bold initiative unites governments, the private sector, development institutions, and philanthropies to deliver reliable, affordable power, improve utility efficiency, and attract private investment.

In January 2025, 30 African Heads of State and governments committed to concrete reforms and actions to expand access to reliable and affordable electricity to power economic growth across the continent. By addressing the fundamental challenge of energy access, Mission 300 serves as the cornerstone of our jobs agenda for Africa’s growing youth population and the foundation for future development.  Since July 2023, we have connected nearly 21 million people in Africa to electricity, with projects underway to reach nearly 100 million more in the pipeline.

• In Côte d’Ivoire, the Electricity for All program is helping low-income households and communities afford electrical meters, boosting small businesses and quality of life.  Our support has facilitated access to power for over 2 million low-income Ivoirian households—double the number of connections since its launch in 2014.
• In Tanzania, energy projects over the past 5 years have connected more than eight million people to electricity and expanded the power grid to nearly 100% of villages nationwide.  These achievements have helped Tanzania attain one of Sub-Saharan Africa’s fastest electrification rates.

Scaling Up Off-Grid Solutions

Mission 300 will expand national electricity grids, deploy mini-grids and standalone solar systems where grid expansion isn’t feasible, and deliver electricity to some of the most remote and vulnerable communities.

More than 560 million people benefit from off-grid solar power for their homes, farms, businesses, and public infrastructure. Off-grid solar is set to be the most cost-effective way to provide about half of the electricity access under Mission 300, generating an estimated $5.6 billion in household savings and new income for families and powering two million micro-enterprises.  Deploying off-grid solar technologies will create thousands of new jobs and accelerate the growth and impact of an industry already employing over 65,000 people across the continent and supporting a further 62,000 through informal work.

Off-grid companies targeting the world’s poorest communities often bear significant financial risk. Tailored financial interventions—like concessional capital and local currency financing—can reduce this risk and attract new investors. The World Bank Group, African Development Bank, and Mission 300 partners are expanding investment opportunities through platforms like Zafiri, which aims to mobilize up to $1 billion by providing patient equity to companies that advance distributed renewable energy solutions.

• The World Bank Malawi Electricity Access Project has rapidly scaled up affordable electricity access through off-grid solutions for many households far from the national grid. So far, more than 140,000 households have been connected.

Building More Resilient Communities and Vibrant Economies

Access to electricity boosts the resilience of people who are among the most vulnerable to the impacts of climate change, natural disasters, and extreme weather events. In Africa, where more than two-thirds of the post-harvest food supply is lost, electric pumps, new food processing, and conservation equipment help communities increase and preserve their food supply and diversify their incomes, making them less vulnerable to severe floods or droughts. As temperatures rise and heat waves become more frequent, power fans and cooling devices can help prevent heat-related illnesses and deaths and improve labor productivity.  Electricity also improves health outcomes for women and girls by powering clean cooking technology that reduces exposure to extreme heat and local air pollution.

Investments in distributed renewable energy (DRE) solutions are often the cheapest and easiest way to enhance the resilience of power systems and connect the most remote populations that previous technologies could not reach. DRE solutions are portable, can be quickly deployed or restored after an extreme weather event, and can serve as backup power during outages. In Nigeria, the DARES project will help over 17 million Nigerians access efficient electricity using distributed renewable energy solutions, replacing over 250,000 polluting and expensive diesel generators. It will address immediate energy needs and strengthen Nigerian communities' long-term resilience by reducing vulnerability to power cuts.

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The World Bank Group is scaling up its knowledge and financing to deliver faster and provide cost-efficient energy solutions, meeting growing demand while boosting job creation and growth. Countries have different needs and resources, which is why our approach prioritizes accessibility and affordability, manages emissions responsibly, and embraces the reality that context matters.

Over the last 10 years, the World Bank Group has committed about $100 billion to energy. As of FY24, our current programs provide access to electricity for 171 million people globally.

Mission 300: Powering A Brighter Future for Africa

Across Africa, half the population has no access to electricity, creating significant barriers to healthcare, education, productivity, digital inclusivity, and job creation. The projects below, and many others, are laying the foundation for the Bank Group’s Mission 300, which, in partnership with the African Development Bank, aims to connect 300 million people in Africa to electricity by 2030.

• In Eastern and Southern Africa, we launched the ASCENT Program to provide electricity access to 100 million people in 20 countries.
• Our regional integration approach in the energy sector supports more efficient and resilient regional electricity markets through the West African Power Pool (WAPP) project. This has enabled over 4,000 km of 225-330 kV transmission lines, connecting sub-Saharan countries from Senegal to Nigeria and benefiting over 18 million people .
• We launched a new 25-megawatt solar park with battery storage in the Central African Republic that will supply electricity to 250,000 people in the capital of Bangui, almost doubling the country’s electricity generation capacity. The park will replace over 90 percent of the energy currently produced by diesel fuel while generating more than $4 million annually for the National Electricity Company.
• In Nigeria, more than 17.5 million Nigerians, or 20 percent of the currently unserved population, will benefit from our Nigeria Distributed Access through Renewable Energy Scale-Up Project, which will replace more than 280,000 polluting and expensive fossil-fueled generator sets with standalone solar.
• We are completing the 225-kilovolt transmission line of the Gambia River Basin Development Organization, connecting the Gambia, Guinea, Guinea-Bissau, and Senegal through 15 substations, such as the Tambacounda power station.

Below is a selection of our key investments and results:

Energy access

Between FY20 and FY24, the World Bank (IBRD/IDA) approved about $8.1 billion to support energy access. We are ramping up support and leveraging private investments to deliver impact at scale.

The multiphase West Africa Regional Electricity Market Program will enhance electricity access to households, industries, and medium-sized companies, as well as regional and national power sector institutions.

• In Rwanda, we supported the country in reaching near-universal electricity access. The government has expanded electricity access from 6 percent in 2009 to more than 75 percent as of March 2024 by providing new or improved energy grid access to 230,000 households and off-grid energy access to another 150,000 households. One hundred percent of its health centers and administrative facilities and 84 percent of its schools have been electrified.
• In Tanzania, more than 4.5 million people gained access to electricity. Over the past decade, more than 1,600 healthcare facilities and 6,000 educational institutions added new connections—one of the fastest rates of energy-access expansion in Sub-Saharan Africa. In addition, the Rural Energy Agency (REA) has connected 213 small mining businesses to the grid, reducing their reliance on expensive diesel generators and increasing their productivity.
• A World Bank Group $173.5 million loan will help Azerbaijan Scaling-Up Renewable Energy Project (AZURE) strengthen the country’s power transmission network, diversify its energy mix, and meet growing electricity demand through a more resilient and reliable power grid.

Energy for clean cooking

2.1 billion people lack access to clean cooking solutions. Women bear the brunt and suffer from poor health, insecurity, and lost productivity.

• Between July 2015 and July 2025, the World Bank mobilized about $837 million for clean cooking investments to support 108 million people across 35 countries, with most investments in Sub-Saharan Africa and Asia.
• The Bank established the Clean Cooking Fund through ESMAP with a funding target of $500 million. It aims to leverage $2 billion in public and private investments to help 200 million people gain access to clean cooking.
• The Clean Cooking Fund has supported allocating about $86 million in grants directly to 28 countries and co-financing 12 projects. The current portfolio has leveraged $102 million from IDA/IBRD, $10.81 million from carbon finance, and $279 million from private financing, helping more than 37 million people and 2,772 public institutions access clean cooking solutions.

Energy efficiency

Energy efficiency is always faster and cheaper than building new generation capacity.  Between FY15 and FY24, the World Bank’s lending portfolio on Energy Efficiency reached $6.71 billion, including investments in buildings, industry, public lighting, water pumping, and other sectors, with 206 investment operations and policy operations.

• The Energy Efficiency in Public Buildings Project in Türkiye’s project provided technical training to more than 3,500 people, upskilling the workforce for jobs in energy services and construction.
• In Poland, the national Clean Air Priority Program, which is designed to upgrade heating systems and insulation in around 2.5 million homes, is expected to generate over 100,000 jobs over 10 years.
• IFC’s innovative EDGE, a green building certification program, has trained over 10, 000 experts globally.
• In India, Energy Efficiency Services Ltd created almost 700 direct jobs and thousands of indirect jobs in efficient bulbs, electric vehicles, air conditioners, and other appliance production.
• The new Caribbean Efficient and Green-Energy Buildings Project, will upgrade over 500 buildings in Grenada, Guyana and St. Lucia, supporting specific skills training and employment for women.
• In Brazil, a $53.6 million financing will enhance digital infrastructure, expand broadband access, increase energy efficiency, and modernize public services.
• In Benin, we support energy efficiency by providing 24,670 new households access to improved cooking equipment and 25,000 households access to improved cookstoves. The country has reduced more than 113,000 tons of CO2 emissions due to improved efficiency of lighting and appliances.
• In India, reducing energy demand through measures—ranging from subsidized energy tariffs to deploying 366 million LED bulbs—will save 11,200 GWh of electricity annually.
• In Uzbekistan, where buildings account for 50% of energy consumption, the World Bank supports the country to improve the energy efficiency of public buildings with a $143 million concessional credit.

Energy Storage

The World Bank has mobilized approximately $850 million in concessional finance for energy storage deployment projects, in addition to over $3 billion in IDA/IBRD investments.

• The World Bank financed 6.3 GWh of battery storage capacity in active projects.  The World Bank convened the global Energy Storage Partnership (ESP),  hosted by ESMAP, to foster international collaboration and accelerate the deployment of energy storage globally.
• The Bank’s Energy Storage Program has helped scale up investments and generate global knowledge on storage solutions. The program has investment operations in 35 countries and 3 subregions.

Power Utilities

Electric utilities are the critical link between power generation and electricity distribution to homes and businesses. The World Bank supports countries to improve utilities’ performance through policy, regulatory, institutional, and governance reforms. We also assist utilities in strengthening their operational and financial performance.

In FY20-24, the World Bank (IBRD-IDA) approved about $7.9 billion to improve utility performance.

• In Rwanda, the World Bank has helped increase electricity access from 10 percent in 2010 to 54 percent in 2020 by improving the quality and reliability of electricity supply and the capacity of the sector institutions, such as utilities.
• In 2022, the World Bank launched the Utility Knowledge Exchange Platform to help utilities, energy sector institutions, regulators, system operators, the private sector, and the World Bank identify best practices, improve operational efficiencies, stimulate businesses, and accelerate technological innovation.

Clean Hydrogen

The World Bank supports countries to deploy clean hydrogen across critical sectors such as transport, industry, agriculture, and mining. The Bank launched the Hydrogen for Development Partnershipto catalyze financing for hydrogen investments in developing countries and approved more than $1.5 billion in concessional financing to ramp up clean hydrogen projects in FY2024. This is the largest hydrogen engagement among all Multilateral Development Banks.

• In India, our two development policy operations worth $3 billion will help the country develop a green hydrogen industry to create jobs and boost energy security.
• In Chile, the World Bank approved a $150 million project in 2023 to promote the hydrogen industry, leveraging $1 billion in additional financing.
• Together with other MDBs and DFIs, the Bank is preparing a 10 GW lighthouse initiative to accelerate the Final Investment Decision for the first sizeable projects in EMDCs.

Hydropower

Hydropower is a source of low-cost, low-carbon electricity that can boost development in countries and regions. Over the last decade, in response to country demand, the World Bank Group has provided $17 billion in financing for hydropower. Assessments by the Independent Evaluation Group showed that 57 World Bank-supported hydropower projects during 2000-2017 helped cut a billion tons of carbon emissions, generating nearly $350 billion in global environmental benefits.

• In Cameroon, the Nachtigal Hydropower Plant will increase power generation capacity by 30 percent.
• In Pakistan, World Bank support for Tarbela hydropower provides clean energy to millions of people and has saved the country $2 billion.
• In Vietnam, the World Bank helped develop the Trung Son hydropower plant, which has supplied 1 billion kilowatt-hours (kWh) of low-cost electricity since 2017, improving the livelihoods of 3,400 households and reducing greenhouse gas emissions by 1 million metric tons annually.
• In Nepal, we signed a Memorandum of Understanding with the Asian Development Bank to strengthen the country’s hydropower sector through joint financing and advisory services.
• In Bhutan, our  support will safeguard the hydropower sector—the country’s economic backbone—from natural disasters and risks to increase resilience.
• A $350 million grant from the International Development Association (IDA) will support Malawi’s Mpatamanga Hydropower Storage Project (MHSP), a large infrastructure operation aiming to transform the country’s energy landscape and its economic development.

Methane Reduction

Methane emissions from venting, leaks, and flaring in the oil and gas sector are currently estimated to account for 25% of global human-made methane emissions. Deploying the full potential of methane reduction solutions in the oil and gas sector could avoid 0.1 degrees Celsius of warming by mid-century—equivalent to zeroing out the emissions of every car and truck in the world. The World Bank supports countries' efforts to reduce methane emissions. Learn more.

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• Leveraging Private Sector Solutions in Large Hydropower Projects
• The Critical Link: Empowering Utilities for the Energy Transition
• Scaling Hydrogen Financing for Development
• Methane Management Roadmap for Oil and Gas in ASEAN

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