48642 ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM E N E R G Y C Y 2 0 0 7 ­ F Y 2 0 0 8 1 A N N U A L R E P O R T © 2009 The International Bank for Reconstruction and Development / The World Bank Group Energy Sector Management Assistance Program (ESMAP) 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First Printing: January 2009 The findings, interpretations, and conclusions expressed in this report are entirely those of the authors and should not be attributed in any manner to the World Bank Group (WBG), to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The WBG does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the WBG any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce any portion of this work should be sent to the Energy Sector Management Assistance Program (ESMAP). ESMAP encourages dissemination of its work and will normally grants permission promptly and, when production is for noncommercial purposes, without asking a fee. To obtain copies of this report, you may write directly to ESMAP at the address printed on the back of this report or by sending an electronic message to esmap@worldbank.org. 2 Photo Credits Cover: TaTEDO - Tanzania Traditional Energy Development and Environment Organization. Wining GAPFund Project: Piloting Multifunction Platforms for Productive Uses and Services in Rural Tanzania. Contact Information: Off Shekilango Rd., near Institute of Social Works, Dar Es Salaam, Tanzania 32794. Text: Photographs used throughout the report including the cover belong to the World Bank Group, the World Bank Group Africa Energy Unit (AFTEG), the World Bank Group Africa Environment and Natural Resource Management Unit (AFTEN), the Energy Sector Management Assistance Program (ESMAP), the Lighting Africa initiative, and the National Renewable Energy Laboratory (NREL). The picture of the CFE's (Comisión Federal de Electricidad) La Venta II Wind Farm in Oaxaca, Mexico belongs to Daniel Farchy. Most photos throughout Chapter 3 belong to NGO grant recipients from the ESMAP GAPFund activity promoting small projects on energy poverty. This program involved 20 grants for organizations in 12 countries for projects ranging from microhydro systems to improved biomass stoves. Production Credits Design: Marti Betz Design & Illustration Editorial Support: Susan Boulanger Technical Editor: Douglas Barnes Production Editor: Marjorie K. Araya Printing: Automated Graphic Systems, Inc. ESMAP CY2007-FY2008 ANNUAL REPORT ESMAP's mission is to assist clients from low-income, emerging, and transition economies to secure energy requirements for equitable economic growth and poverty reduction in an environmentally sustainable way. ESMAP is managed by the Energy, Transport and Water Department (ETW) of the World Bank Group and is i governed by a consultative group of donors that meets annually. CONTENTS Foreword iv ESMAP Highlights 2005­2007 vi I. ESMAP at a Glance viii ESMAP's Mission Statement and Governance 1 How ESMAP Pursues Its Mission 1 How ESMAP Delivers Services 1 II. ESMAP's Portfolio in Brief 2 (January 2007­June 2008) III. ESMAP's Portfolio 8 (January 2007­June 2008) Energy Security 9 Energy Efficiency 11 Renewable Energy 13 Energy Poverty 16 Energy SME Program 18 Market Efficiency and Governance 23 IV. Regional Highlights 24 (January 2007­June 2008) Africa 25 East Asia and the Pacific 28 Latin America and the Caribbean 30 Middle East and North Africa 32 South Asia 34 Europe and Central Asia 36 V. Governance and Management 38 The Consultative Group (CG) 39 The Technical Advisory Group (TAG) 39 The ESMAP Unit 40 ESMAP Communication Strategy 42 VI. ESMAP Financial Review 44 ii (January 2007­June 2008) Contributions Received 45 Core (Unrestricted) and Thematic Funding 46 Core (Unrestricted) ESMAP Donor contributions, FY06-08 46 Disbursements 47 ESMAP in the World CY2007-FY2008 48 Annex 1: 50 Proceedings from the Consultative Group Meeting of the World Bank Group Energy Trust-Funded Programs, ESMAP and ASTAE, During Calendar Year 2007 and Fiscal Year January Through June 2008 Annex 2: 56 New, Ongoing and Completed Activities During Calendar Year 2007 and Fiscal Year January Through June 2008, by Region Annex 3: 66 Reports Published During Calendar Year 2007 and Fiscal Year January Through June 2008 Abbreviations and Acronyms 71 ESMAP CY2007-FY2008 ANNUAL REPORT BOXES Box 3.1: Coping with Oil Price Volatility 10 Box 3.2: Dealing with Subcritical Orders for Wind-Power Demonstration Activities 15 Box 3.3: Transformative Power: Meeting the Challenge of Rural Electrification 19 Box 3.4: Haiti: Building a Sustainable Market for Improved Stoves 21 FIGURES Figure 2.1: Snapshots of the ESMAP Portfolio, 2000­2008 5 Figure 2.2: FY2008 Annual Block Grant Allocations by Thematic Area 7 Figure 2.3: ESMAP Portfolio by Thematic Area and Region 7 Figure 4.1: ESMAP Activity P103456: Implementing the Action Plan for Energy Access Scale-Up, a Timeline of Key Events 26 Figure 6.1: ESMAP Receipts by Source 46 TABLES Table 2.1: The Evolution of ESMAP Portfolio from January 1, 2007 to June 30, 2008 4 Table 2.2: FY2008 Annual Block Grant Allocations 6 iii Table 3.1: Key Energy Security Activities, January 2007­June 2008 9 Table 3.2: Key Energy Efficiency Activities, January 2007­June 2008 12 Table 3.3: Key Renewable Energy Activities, January 2007­June 2008 14 Table 3.4: Key Energy and Poverty Activities, January 2007­June 2008 17 Table 3.5: Key Energy Small and Medium Enterprise (SME) Program Activities, January 2007­June 2008 20 Table 3.6: Key Market Efficiency and Governance Activities, January 2007-June 2008 22 Table 5.1: Donors and Members of the Consultative Group, Technical Advisory Group, and the ESMAP Team 41 Table 6.1: ESMAP Receipts , January 2007­June 2008 45 Table 6.2: Receipts by Type of Funding in FY08 46 Table 6.3: ESMAP Disbursements and Expenditures, January 2007-June 2008 47 Foreword iv ESMAP CY2007-FY2008 ANNUAL REPORT Foreword The hallmark of the Energy Sector Management Assistance During the last year, ESMAP also contributed to a forward- Program, or ESMAP, is the promotion and support of looking view of the role of renewable energy and energy innovation and forward thinking in the energy sector. In technology in facing energy challenges. Renewable energy these times, finding new solutions to energy challenges has policies and programs have been strengthened during the become even more important. In 2008, oil prices rose to over last few years, and there is no doubt that during the coming US$150 a barrel before declining again in anticipation of a years, the role of new energy technologies will be at the global recession. Global climate change has taken center forefront of efforts to address a wide variety of energy stage on the international agenda, and serious actions are problems. needed to address it. Hundreds of millions of people still do not have access to modern energy services, depriving many ESMAP today is well placed to deal with these issues, in of tools they need to work their way out of poverty. part because of its own renewal. With its twenty-fifth anniversary celebration now completed, and with the close ESMAP's importance in addressing these issues was of its 2005­2007 Business Plan, ESMAP has evolved from a recognized during the World Bank Group Sustainable central program to one now well integrated into the World Development Week 2008, at which ESMAP celebrated its Bank Group regional energy operations. This means that twenty-fifth anniversary with the participation of speakers the innovative policy work that has been ESMAP's traditional and staff past and present. With standing-room-only sessions strength is now more closely related to actual operations on high oil prices, energy security, renewable energy, energy on the ground. This has resulted in better communications efficiency, biomass energy, and other energy-related topics, and more effective coordination among the energy units the event's programs highlighted both the problems faced of the World Bank Group. To support this work, ESMAP by the energy sector and ESMAP's many contributions over has committed itself to more effective communication of the past years to analyzing and resolving them. results by developing a line of high-quality publications and by making more use of electronic communications. ESMAP's policy and analytical strength were further The future also holds the promise of ongoing development demonstrated through a number of major policy studies and improvement of global outreach and international completed in 2008. For example, a major new study on partnerships. v promoting energy efficiency was supported in part by ESMAP. Financing Energy Efficiency: Lessons from Brazil, ESMAP clearly has been very dynamic in 2007 and early 2008, China, India, and Beyond stressed that energy efficiency and it is in the process of developing a new business plan projects can partly meet new energy demands more for 2008 through 2013 that will lead the program into the cheaply than can development of new supplies, but it also future. This plan will feature some key realignments based noted that undertaking such work requires addressing the on the dramatic recent changes in energy-sector realities weak economic institutions in developing and transitional faced by both developed and developing countries, with a economies. Another book completed in 2008 was The focus on energy as it relates to poverty and climate change. Challenge of Rural Electrification: Strategies for Developing In support of these goals, ESMAP will continue its role in Countries. Through a review of successful programs in 10 such fields as energy efficiency, governance, renewables, countries, the study concluded that major opportunities regional trade, and others. As it has throughout its history exist for increasing the pace and widening the scope of down to FY2008, ESMAP stands ready to address the energy rural electrification in developing countries, which will challenges that have been so clearly manifested in recent in turn enable large numbers of new consumers to enjoy years and that will be with us for many years to come. the benefits of electricity. A related study underscored the enduring impact of ESMAP's work; this critical review of the Jamal Saghir methods used by the World Bank Group Internal Evaluation Director, Energy, Transport and Water Group (IEG) to value the benefits of rural electrification Chair, Energy and Mining Sector Board confirmed the continued validity of a 2002 ESMAP study, leading to a workshop on this topic held jointly by ESMAP Amarquaye Armar and IEG in 2008. Program Manager Energy Sector Management Assistance Program ESMAP's Highlights 2005 vi ESMAP CY2007-FY2008 ANNUAL REPORT ESMAP's Highlights 2005-2007 Regional Block Grants to Support Energy Operations. Initiation of Lighting Africa. Rural areas in Africa have ESMAP moved from a centralized to a more decentralized very low rates of electrification. In May 2008, under program in which regional energy operators set their own Lighting Africa, the Development Marketplace competition priorities for ESMAP funding while remaining consistent selected winners, each of whom will receive grant funding with priority areas. This improved the relevance of projects to implement projects that offer affordable, clean, and safe for regional energy operations. off-grid lighting and that promise to improve access to lighting for people living without electricity in countries such ­2007 ESMAP as a Global Center of Excellence. During 2005­ as Burkina Faso, Cameroon, Ghana, Kenya, Liberia, Namibia, 2007, ESMAP expanded its number of staff to be able to Nigeria, Rwanda, and Tanzania. produce high-quality global studies and to provide support to regional operations in selected areas of specialty, such Clean Energy Investment Framework1 and Renewable as energy poverty, renewable energy, energy efficiency, and Energy. Consistent with the World Bank Group's market reform and governance. commitments from the 2004 Bonn International Conference on Renewable Energy, ESMAP has expanded its commitment Communications, Publications, and Outreach. ESMAP to renewable energy through support of the World Bank changed its publication policies and added new staff to Group Clean Energy Investment Framework and other vii update its communications strategy. Today ESMAP has a relevant regional energy projects. more highly developed electronic outreach program and supports a wide range of publications. Improving Energy Policies for Developing Countries. ESMAP has committed itself to promoting forward-looking Celebration of ESMAP's 25th Anniversary. ESMAP analytical work and has published a wide variety of high- was chosen to lead the energy events at SDN Week 2008. quality books and reports on key topics involving energy During the event, ESMAP held a twenty-fifth anniversary policies in developing countries. Examples include: celebration that drew hundreds of participants, including current and former staff. · People and Power: Electricity Sector Reforms and the Poor in Europe and Central Asia (2007) GAP Fund and the Global Village Energy Partnership · The Challenge of Rural Electrification: Strategies for (GVEP). ESMAP for the first time worked with Developing Countries (2007) nongovernmental organizations (NGOs) and the private · Accelerating Clean Energy Technology Research, sector to provide small grants for energy innovations with Development, and Deployment: Lessons from impact on poor. This program involved 20 grants for Non-energy Sectors (2008) organizations in 12 countries for projects ranging from · Financing Energy Efficiency: Lessons from Brazil, microhydro systems to improved biomass stoves. China, India, and Beyond (2008) · The Urban Household Energy Transition: Social and Energy Small- and Medium-Sized Enterprise Program. Environmental Impacts in the Developing World ESMAP dedicated its resources to support small and (2005) medium enterprise development in developing countries for · Sustainable Energy in China: The Closing Window organizations that would provide energy services in areas of Opportunity (2007) considered unattractive to large service providers. The ESMAP Energy SME initiative supported 13 projects in 12 countries and 1 regional program in Africa. 1. In 2007, the CEIF initiative was superseded by the Strategic Framework for Climate Change and Development (which has recently been renamed: Development and Climate Change: A Strategic Framework for the World Bank Group). I. ESMAP viii ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ESMAP at a Glance The core objective of current and prior business plans is to The Energy Sector Management Assistance Program promote and secure access to energy for poverty reduction (ESMAP), established in 1983, is a global, multidonor and economic growth. The linkages that have formed technical assistance program aimed at promoting ESMAP strategy since its inception--energy and poverty, environmentally sustainable energy solutions for poverty environmentally sustainable development, private-sector reduction and economic growth. ESMAP recognizes that participation, and market efficiency--remain highly relevant. access to affordable, reliable, and sustainable energy services The current business plan, however, adds new activities is indispensable in achieving the Millennium Development focused on energy security and the social dimension of each Goals (MDGs). thematic area, especially the lowest income groups and the gender dimension. at a Glance ESMAP provides policy advice and helps build consensus on ESMAP's mandate and products have evolved over time to environmentally sustainable energy development in devel- meet the changing needs of its clients. ESMAP has operated oping countries and economies in transition. ESMAP also in more than 100 countries through more than 800 activities undertakes cutting-edge analytical work on sector issues, since its inception, and it continues to evolve in response to contributes to the transfer of knowledge among stakehold- changing conditions and client needs. 1 ers and practitioners, and pioneers implementation and fi- nancing mechanisms for delivering environmentally sustain- Starting in 2005, ESMAP operations underwent a major able energy services. transformation as activity implementation was partially de- volved to the World Bank Group's regional operational or- ESMAP Mission Statement and ganizations. ESMAP continues to directly manage global Governance activities, including legacy activities, research on new ideas and concepts, and cross-cutting efforts, such as advanced ESMAP's mission is to assist clients from low-income, emerg- analytical work, knowledge dissemination, and leveraging ing, and transition economies to secure energy requirements of operational activities. for equitable economic growth and poverty reduction in an environmentally sustainable way. ESMAP is managed by How ESMAP Delivers Services the Energy, Transport and Water Department (ETWD) of the ESMAP-financed activities are led by World Bank Group staff World Bank Group and is governed by a consultative group in partnership with international, national, regional, and/or of donors that meets annually. local organizations. International and local consultants are extensively used. Related procurement is governed by World How ESMAP Pursues Its Mission Bank guidelines. More information about procurement ar- ESMAP pursues its mission based on a business plan up- rangements and consultancy opportunities is available on dated every three years. The current ESMAP Business Plan the ESMAP Web site: http://www.esmap.org. 2005­2007, which covers this annual report, has four major thematic areas: · Energysecurity,includingenergyefficiency · Renewableenergy · Energypoverty · Marketefficiencyandgovernance II. ESMAP's (January 2007­June 2008) 2 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Portfolio in Brief ESMAP's Portfolio in Brief This annual report actually covers an 18-month period, as as of June 30, 2008. Table 2.1 summarizes the evolution of ESMAP is shifting its reporting period to align with the fiscal ESMAP's portfolio through June 30, 2008, while Figure 2.1 year periods currently in use by the World Bank Group. As illustrates the historic trend of ESMAP activities. part of its effort to clean up its portfolio in preparation for the ESMAP 2008­2013 Business Plan, ESMAP closed all The following are the factors influencing the evolution of 3 completed legacy activities. For this reporting period, this the ESMAP portfolio during the review period: includes even those activities with pending publications.2 ESMAP also closed nonperforming or slow moving activities Clean Up of the ESMAP Portfolio. Removing long- that have failed to meet agreed-on benchmarks. completed legacy activities with only publications pending and terminating some slow-moving and nonperforming As might be expected, a consequence of closing completed activities has helped ESMAP to provide a more accurate or nonperforming activities and of considering closed some description of its portfolio. This was necessary to prepare projects with pending publications has been the reduction of for the new 2008­2013 ESMAP Business Plan. The cleaned- ESMAP's portfolio. There were 108 activities (worth US$23.5 up portfolio constitutes a new starting point that will serve million) in the ESMAP portfolio as of the end of June 2008, as the baseline for the new business plan and will enable compared with 208 activities (worth US$40.2 million) as of ESMAP to track future trends more effectively. December 31, 2006.3 Likewise, the number of closed ac- tivities far exceeded the number of new activities initiated Annual Block Grants. ESMAP continued to use annual during the review period.4 ESMAP initiated 74 new activities block grants (ABGs) to contract with the World Bank Group's during the 18-month review period. Total new funding was seven energy teams.6 ESMAP allocated US$7.1 million in US$11.4 million, which supported both new and ongoing ABGs to the energy teams for FY2008, marginally up from activities. By contrast, ESMAP closed 154 activities worth US$6.9 million in FY2007. To support the implementation (worth US$25.9 million) during the review period.5 An ad- of the Africa Energy Access Scale-up Action Plan, Africa ditional 20 activities (worth US$2.1 million) were "dropped" received the highest ABG allocations in FY2008. The 2. This is a departure from past ESMAP practice of only closing activities following completion of the publications process. ESMAP will now use separate funds for finalizing publications resulting from its activities. 3. To align the ESMAP 2008­2013 Business Plan cycle with the World Bank Group July 1 to June 30 fiscal year, the six-month period between January 1, 2007, and June 30, 2007, was annexed to the 2005­2007 Business Plan. As a result, the portfolio review in this Annual Report covers the period from January 2007 to June 2008. 4. The decline in the portfolio also partially reflects the addition of six months to the review period (i.e., January 2007 to June 2008), during which no new activities were added to the ESMAP portfolio. 5. Of these, 84 activities (worth US$17.8 million) were closed following the completion of the publication process. The publications of the remaining activities will be completed using separate funds. 6. Six regional energy teams plus the Oil, Gas and Mining Policy Division (COCPO) team. 4 Table 2.1: The Evolution of ESMAP Portfolio from January 1, 2007 to June 30, 2008 Status and Movements Number Value (US$ million) Active portfolio as of January 1, 2007 208 40.2 Activities completed with publications in process 37 9.1 Portfolio under implementation as of January 1, 2007 171 31.1 Total new during January 1, 2007 to June 30, 2008 75 11.4 FY2008 activities 55 11.6 Changes in previous RBGs 19 (0.2) Activities closed during January 1, 2007 to June 2008 (174) (28.0) Completed activities (154) (25.9) Dropped/clawed back (20) (2.1) Active portfolio as of June 30, 2008 108 23.5 Source: ESMAP activity database and annual block grant agreements, June 2008. ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Middle East and North Africa, and Latin America and the Caribbean, and Europe and Central Asia were the other regions to receive high allocations (Table 2.2). From a thematic standpoint, Energy Security (which includes energy efficiency) was allocated the largest share of AGBs, accounting for 38 percent of total FY2008 ABG allocations, followed by Energy Poverty (28 percent), Renewable Energy (23 percent), and Market Efficiency and Governance (11 percent) (Figure 2.2). Energy SME Program and G+5 Low-Carbon Country Case Studies. ESMAP allocations for some global programs, such as the Energy SME program supported by the U.K. Department for International Development (DFID) and G+5 low-carbon country case studies, are not included in the ABG statistics. During the review period, ESMAP allocated an additional US$0.8 million to the Energy SME program. The SME program now comprises support totaling US$4.9 million. Similarly, ESMAP allocated an additional US$1.0 million for the low-carbon case studies being undertaken in G+5 countries. Figure 2.1: Snapshots of the ESMAP Portfolio, 2000­2008 5 Source: ESMAP activity database and annual block grant agreements, June 2008. * Reflects the results of the portfolio-cleaning exercise undertaken in preparation for the ESMAP 2008­2013 Business Plan. 6 Table 2.2: FY2008 Annual Block Grant Allocations7 Region Activities Value (US$ million) Africa (AFR) 12 2.05 Middle East and North Africa (MNA) 9 1.44 Latin American and the Caribbean (LCR) 10 0.93 South Asia 12 0.81 Oil, Gas and Mining Policy Division (COCPO) 5 0.56 East Asia and the Pacific 6 0.40 Europe and Central Asia (ECA) 6 0.90 Total 60 7.09 Source: ESMAP activity database and annual block grant agreements, June 2008. 7. Approximately half of the activities funded under FY2008 ABG are ongoing activities started in previous fiscal years. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ESMAP Portfolio Value Allocations by Thematic Area Figure 2.2: FY2008 Annual Block and Region. For the overall ESMAP portfolio, the value of Grant Allocations by Thematic Area financing allocated to thematic areas was fairly stable, with only very small changes. Energy Poverty continued to be the largest thematic area in terms of project financing, account- ing for 47 percent of the value of the ESMAP portfolio (Fig- ure 2.3). Energy Security (including energy efficiency) and Renewable Energy Renewable Energy gained in importance in the portfolio, in- Energy Poverty 23% 28% creasing in proportion, respectively, from 23 percent and 12 percent of the value of ESMAP portfolio as of end-December 2006 to 25 percent and 17 percent as of end-June 2008. By contrast, the share of Market Efficiency and Governance declined from 13 percent to 11 percent during the same period. From a regional standpoint, Africa had the largest Market Efficiency share (23 percent) by value in the ESMAP portfolio, followed and by Global (22 percent), Latin America and the Caribbean (18 Governance 11% percent), East Asia and the Pacific (15 percent), the Middle East and North Africa (10 percent), South Asia (8 percent), and Europe and Central Asia (6 percent). Energy Security 38% Source: ESMAP activity database and annual block grants, June 2008. Figure 2.3: ESMAP Portfolio by Thematic Area and Region Thematic Areas Region South Asia 14% Renewable Middle East 7 Energy and North Africa 26% Energy Africa 23% Poverty 8% 37% Activities Market Latin Efficiency America and and the East Asia Governance Caribbean and the 6% 15% Pacific 17% Global Energy 17% Europe and Security 31% Central Asia 6% South Asia 7% Renewable Middle East Energy and North Africa 21% Energy 27% Poverty Africa 39% 10% alueV Market Latin Efficiency America and and the East Asia Governance Caribbean and the 12% 13% Pacific 11% Global 25% Energy Europe and Security 28% Central Asia 7% Source: ESMAP activity database and annual block grants, June 2008. III. ESMAP's (January 2007­June 2008) 8 The four ESMAP thematic areas reflect very important concepts in energy development. They include market efficiency and governance, energy poverty, and energy security, including energy efficiency and renewable energy. These priority activity areas derive from the 2005­2007 Business Plan. The activities reported in this chapter include the ESMAP portfolio for January 2007 through June 2008 to reflect the new reporting period. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Energy Security The provision of affordable, reliable energy supplies is a ergy sources, and high and volatile fossil-fuel prices. As necessary precursor to economic development and a key spectacular rises in fossil-fuel prices in recent years have ingredient in alleviating poverty for the world's poor. Over undermined economic growth, energy security issues have the years, ESMAP has been at the forefront of efforts to become increasingly important. This is especially true when help poor countries design both short-term and long-term high prices harm the countries' poorest citizens because policies that encourage economic resiliency and safeguard their fuel expenditures often constitute substantial shares livelihoods, especially for the poor, against energy supply of their income. Energy efficiency issues are considered a dislocations, unreliable supply of electricity and other en- subtheme within energy security. Portfolio Table 3.1: Key Energy Security Activities, January 2007­June 2008 Think Tank · AcceleratingCleanEnergy Technology Research, Development and Deployment (Flagship report, World Bank Working Paper No. 138. This ESMAP report was published by the World Bank Office of the Publisher (EXTOP) under the World Bank Working Paper series (ISBN 978-0-8213-7481-8). · SustainableEnergyinChina:TheClosingWindowofOpportunity. (Flagship report published jointly by ESMAP and DRC under 9 EXTOP's Directions in Development Series, 2007. (ISBN-10: 0-8213-6753-6). · CopingwithOilPriceVolatility(ESMAP Special Report 005/08). · TheImpactofHigherOilPricesonLow-IncomeCountriesandonthePoor(ESMAP Formal Report 299/05). · TheVulnerabilityofAfricanCountriestoOilPriceShocks:MajorFactorsandPolicyOptions (ESMAP Formal Report 308/05). · Best Practices in Mainstreaming Environmental Safeguards into Gas Pipeline Activities. · TheReformoftheHydrocarbonSectorinParaguay(ESMAP Technical Report 122/08, Spanish only). · The East Asia Regional Energy activity (Flagship report produced and disseminated by the Region). · StrategyforCoalBedMethane(CBM)andCoalMineMethane(CMM)DevelopmentandUtilizationinChina(ESMAP Formal Report 326/07). · Turkey'sExperiencewithGreenfieldGasDistributionsince2003 (ESMAP Formal Report 325/07). Knowledge Clearinghouse · The Roundtable on Energy Security enabled the World Bank Group to assemble a group of 12 world experts to discuss in a "Chatham House" setting the issue of energy security from the perspective of developing countries, as part of the World Bank's preparations for the G-8 Summit in St. Petersburg, Russia. · HowAreDevelopingCountriesCopingwithHigherOilPrices? (Knowledge Exchange Series, KES No. 6). · PotentialforBiofuelsforTransportinDevelopingCountries(Knowledge Exchange Series. KES No. 4). · SeveralSDNEnergyWeekEvents,includingkeynotesessiononregionalenergytrade. Operational Leveraging · AnImplementationStrategyforChina'sEnergySecurityObjectivesactivity. · China:PolicyAdviceonImplementationofCleanCoalTechnologyprojects--PhaseIIactivity. · Power System Planning in India: Incorporating Environmental Externality Costs and Benefits (Produced and disseminated by the Region). · ExtendingtheUseofDomesticGasResourcestoInlandProvinces(ESMAP Technical Paper 103/06). · IntegrationStrategyforSouthernConeGasNetworks(ESMAP Technical Paper 113/07). · PotentialandProspectsforRegionalEnergyTradeintheSouthAsiaRegion(ESMAP Formal Report 334/08). Source: ESMAP activity database and annual block grant agreements, June 2008. In 2007, ESMAP-supported activities in the energy security ESMAP work also analyzes the harmful impacts of fossil- field continued to have an impact on global discussion fuel prices on poor countries and on poor people living and country activities. The main ESMAP work on energy within those countries. An ESMAP-supported activity, security covers a number of factors that affect developing Oil Price Volatility (see Box 3.1) builds on previous years' countries' energy security--both positively and negatively. work of analyzing the impacts on countries of high oil Some important energy security studies completed in 2007 prices and providing policy responses to those prices include the following: Sustainable Energy in China: The and impacts. The Oil Price Volatility study is unique in its Closing Window of Opportunity (Flagship Report); Strategy emphasis on the problem of price volatility rather than price for Coal Bed Methane (CBM) and Coal Mine Methane increases, the focus of much previous work. In addition, (CMM) Development and Utilization in China (ESMAP Formal the study examines a number of possible policy responses to Report 326/07); Turkey's Experience with Greenfield Gas volatility--including national hedging, security stocks, and Distribution since 2003 (ESMAP Formal Report 325/07); and price-smoothing schemes--to determine the circumstances Strengthening Energy Security in Uruguay (ESMAP Technical under which each might be appropriate. Report 116/07). An important publication on energy security issues in One activity within the thematic area of energy security the past year was Accelerating Clean Energy Technology was instrumental in providing the analytical background Research, Development, and Deployment.9 This report was for regional energy integration in South America. This the culmination of an ESMAP-supported project analyzing study--producing the publication Integration Strategy for what role the World Bank Group could play in accelerating SouthernConeGasNetworks8 --originated in response to the commercialization of advanced energy technologies for requests from the participating governments. It culminated developing countries. The technologies considered include in a technical and economic evaluation of the merits of gas renewable energy, energy efficiency, and high-efficiency integration in the southern cone. The study, presented at fossil-fuel plants. Recognizing the importance of such a major conference, was published in both Spanish and technologies for developing countries, as well as the cost English and has been distributed to all concerned parties. and reliability obstacles that deter their deployment, this A protocol, now being prepared for ratification by the project examined several nonenergy sectors, including the governments of the countries involved, will cover the basic Consultative Group on International Agricultural Research principles under which gas pipelines should be constructed (CGIAR), the Advance Market Commitment (AM), and The and operated. Human Genome Project (HGP). Based on these cases, the report reached several important conclusions concerning 10 ways energy technical innovation can serve poorer countries. Box 3.1: Coping with Oil Price Volatility In addition to the usual dissemination of ESMAP reports via the internet, the Coping with Oil Price Volatility report was also shared with the Nigerian Minister of State for Energy (Petroleum), who re- quested a copy after having been shown the report by the World Bank country economist. Meanwhile, the World Bank Uganda country team distributed 10 copies of the report to key staff in that country's Ministry of Finance. A presentation on the preliminary findings of the study was also given in February 2008 to the Gov- ernment of Malaysia, which expressed considerable interest, particularly on the chapter on price smoothing. Separately, a local think-tank in Argentina saw the report and invited one of the authors to give a presentation in a session on commodity price volatility at a conference on productivity growth. The session targeted particularly the business community in Argentina. Source:MasamiKojima,LeadEnergySpecialistCOCPO. 8. ESMAP Technical Report 113/07. 9. Accelerating Clean Energy Technology Research, Development, and Deployment: Lessons from Non-energy Sectors. Working Paper No. 138. This ESMAP report was published by EXTOP under the World Bank Working Paper series (ISBN 978-0-8213-7481-8). ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Another major activity launched in 2007 is the East Asia achievement have been energy efficiency program scale- Regional Energy Flagship Study. This activity--to result up and efficiency-related low carbon strategic initiatives. in a flagship product for the World Bank Group's East Asia and the Pacific Region--examines the major themes Even though energy efficiency offers one of the most cost- running across the East Asia client countries, specifically effective options for mitigating global climate change, for energy security, the drive for clean energy, and institutional mostdevelopingcountriesmuchofthepotentialforefficiency effectiveness and efficiency. Through continual consultation improvements remains unexplored. At present, for example, with the country governments, this activity aims to provide the share of energy efficiency goals in the carbon market a new framework by which the Bank and the countries trade has been small compared to their potential effects. themselves can approach the region's major energy issues. With ESMAP's support, it is hoped that the groundwork laid during the last few years will lead more energy efficiency Within the field of regional integration, ESMAP this year projects to take advantage of the clean development launched a global activity, highlighted in last year's SDN mechanism (CDM). Promoting energy efficiency in Week, to examine lessons learned and best practices developing countries will remain a central concern, as it in regional power-sector integration. Governments are facilitates ESMAP's support for economic growth, energy interested in considering regional energy integration as a security, poverty reduction, and environmental sustainability. tool for enhancing energy security. Government sharing of resources might act as a catalyst for new supply infrastructure The objective of energy efficiency scale-up in the developing 11 investments. At present, sufficient experience has world has become a key emphasis of the ESMAP portfolio. accumulated worldwide to warrant a global analysis of the While many countries with high energy intensities and high lessons learned so far. This might include the major obstacles potential for energy efficiency improvements have strong faced in such regional energy integration and suggestions public-sector institutions and an emerging private sector with for ways to overcome them. It is anticipated that a number good technical competencies, many others languish behind of paradigms will emerge for power-sector integration that due to many barriers. Various activities under ESMAP help can be applied to particular regional circumstances. address these institutional, policy, regulatory and technical barriers and have developed good practice solutions for Energy Efficiency converting the enormous cost-effective potential for energy efficiency improvements into large-scale investments. Energy efficiency options form the underlying theme for addressing the problems of energy security, for Key efforts have supported financing and best-practice mitigating the impact of energy vulnerability, for improved initiatives. The findings of the ESMAP activity Developing competitiveness, for contributing to economic growth, and Financial Intermediation Mechanisms for Energy Efficiency for mitigating the potential risks of global climate change. Projects in Brazil, China, and India have been published as Significant opportunities for energy efficiency improvements a flagship report: Financing Energy Efficiency Lessons from exist across different countries and sectors. Activities of Recent Experience with a Focus on Brazil, China, and India.10 ESMAP's energy efficiency thematic area have helped to In China, this activity led to the preparation of energy develop new sector policies, to support the integration efficiency loans through local financial intermediaries; in of these policies and of mitigation instruments in sector- Brazil, it has helped to establish a credit line to guarantee policy dialogues and programs, and to increase investment 80 percent of the credit risks in energy efficiency activities. in energy efficiency and other energy resource portfolio diversification programs. Areas of particular concern and 10. Flagship ESMAP Report published under EXTOP's stand-alone book series (ISBN 978-0-8213-7304-0). 12 Table 3.2: Key Energy Efficiency Activities, January 2007­June 2008 Think Tank · AnAnalyticalCompendiumofInstitutionalFrameworksforEnergyEfficiencyImplementation (ESMAP Formal Report 331/08). · Energy Efficiency Needs and ToolKit Assessment. (The activity contributed to the preparation of the World Bank's Energy Efficiency for Sustainable Development [EEfSD] Scale-Up Action Plan). · The G+5 Countries Energy Efficiency Indicators Project (a joint activity of the World Bank and IEA). · FinancingEnergyEfficiencyLessonsfromRecentExperiencewithaFocusonBrazil,China,andIndia (Flagship report).10 Knowledge Clearinghouse · RoundtableonBridgingtheEnergyEfficiencyDivide:ImplementationModelsandBestPractices(co-organized by the World Bank and the government of Japan, July 19, 2007, Tokyo, Japan. (ESMAP Workshop Proceedings 007/08). · Energy efficiency sessions during energy events of SDN Week 2008. · CombinedCycleGasTurbinesWorkshop2007(sharedexperiencesonoperationandmaintenancecontract(O&M)practices between power companies). Operational Leveraging · China:DevelopmentofPro-PoorNationalHeatPricingandBillingPolicy(ESMAP Formal Report 330/08). · Mongolia--Urban Heat Pricing & Regulation activity. · Ukraine--ThermalPowerPlantRehabilitation:AssessmentofNeeds,Costs,andBenefitsactivity. · OpportunitiesforPooledFinancingFacilitiesinPoland(publication in process). · InnovativeFinancialMechanismtoImplementEnergyEfficiencyActivitiesinMexico(publication in process). · India--Best Practice of Coal-Fired Power Plant Rehabilitation activity. Source: ESMAP activity database and annual block grant agreements, June 2008. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM The report, An Analytical Compendium of Institutional The interventions recommended in the Energy Efficiency Frameworks for Energy Efficiency Implementation (ESMAP for Sustainable Development (EEfSD)­the bank's energy Formal Report 331/08) has examined the potential role efficiency scale up action plan­are an integral part of and structure of alternative public-sector energy efficiency the of the Clean Energy Investment Framework and, institutional models for creating an enabling business subsequently, the Development and Climate Change: A environment for the private sector, utilities, manufacturers, Strategic Framework for the World Bank Group (DSCCF). end-users, energy service companies (ESCOs), and financial The EEfSD strategy includes interventions at three levels: institutions to promote energy efficiency investments. policy and regulatory; sector and subsector; and end-use equipment and appliances. The EEfSD action plan places The findings of this effort have already facilitated the priority on countries with the highest energy intensities, Bank's efforts to support the development of new energy rapid energy-sector growth and high energy consumption. efficiency agencies, for instance, in Morocco. In India and Ukraine, respectively, ESMAP supported a review of best practices for coal-fired power plant rehabilitation and identification of options to maximize the benefits from Another recently completed activity, Scaling-Up existing thermal power plants through improvement of Demand-Side Energy Efficiency Improvements through efficiency, reliability, and competitiveness. In Brazil, ESMAP opportunities under the clean development mechanism supported the development of the Energy Efficiency (CDM), examined synergies between energy efficiency Strategy, focused on the development of private-sector and the carbon market. It identified mechanisms through 13 investment in public-sector energy efficiency improvements. which programmatic CDM can promote implementation of smaller, dispersed, end-use (demand-side) energy The G+5 Countries (Brazil, China, India, Mexico, and South efficiency programs in developing countries. At present, Africa)EnergyEfficiencyIndicatorsprojectisanongoingeffort for example, the share of energy efficiency goals in the involving the World Bank, the Inter-American Development carbon market trade has been small compared to their Bank,andtheInternationalEnergyAgency.Itsaimistoextend potential effects. With ESMAP's support, it is hoped that the experience and practice of the systematic accounting of the groundwork laid during the last few years will lead energy efficiency indicators to the developing countries. The more energy efficiency projects to take advantage of CDM. activity examines the relevance, applicability, and adaptability of current systems of energy efficiency performance Renewable Energy indicators in the Organization for Economic Co-operation and Development (OECD) to the developing countries. ESMAP's work during 2007 and 2008 focused on promoting renewable energy by providing countries The growing emphasis, in both the public and the private with technical assistance on policy analysis, developing sectors, on an expanded role for clean energy initiatives in subsector strategies, and exploring innovative solutions reforming energy sectors throughout the world has been for overcoming barriers to development of renewable driven by the risks of global climate change and air pollution. energy markets. This focus is consistent with World Bank This dimension was highlighted during the last year by commitments obtained from the 2004 Bonn International heightened concerns about the global environment raised Conference on Renewable Energy and the subsequent G-8 in the Intergovernmental Panel on Climate Change (IPCC) debate on climate change at Gleneagles, Scotland to scale Fourth Assessment Reports. As part of the implementation up renewable energy. The intent was to provide developing of recommendations in the Clean Energy Investment countries with a wider range of energy solutions to meet Framework, a review has been conducted of clean their growing needs. Renewable energy has increasingly energy technology acceleration case studies. This report been incorporated as an option in national energy planning, was a focus of a SDN Week session at the World Bank. drawing on the experiences of the most successful countries. Table 3.3: Key Renewable Energy Activities, January 2007­June 2008 Think Tank 14 · ConsideringTradePoliciesforLiquidBiofuelsGlobalPrograms(ESMAP Special Report 004/07). · RiskAssessmentMethodsforPowerUtilityPlanningGlobalPrograms(ESMAP Special Report 001/07). · Accounting for Fuel Price Risk in Power Systems Planning activity (2008). · PotentialforBiofuelsforTransportinDevelopingCountries(ESMAP Formal Report 312/05). · ScalingUpRenewableEnergyinChina:EconomicModelingMethodandApplication(Knowledge Exchange Series Note No. 10). · UnlockingPotential,ReducingRisk:RenewableEnergyPoliciesforNicaragua(ESMAP Special Report 003/07). Knowledge Clearinghouse · HedgingMexico'sElectricityBets:TheCaseforRenewableEnergy,LatinAmericaandtheCaribbean (Knowledge Exchange Series Note No. 9). · SessionsatenergyeventsduringSDNWeek2008. · ProceedingsoftheInternationalGrid-ConnectedRenewableEnergyForum (ESMAP Formal Report 324/06). · WorldBankGroupProgressonRenewableEnergyandEnergyEfficiency. · RenewableEnergyandEnergyEfficiencyFinancingandPolicyNetwork:OptionsStudyandProceedingsoftheInternationalForum (ESMAP Formal Report 303/05). · EuropeanWindEnergyConferenceinMilan,Italy. Operational Leveraging · SupportforWindMeasurementProgramDevelopmentinBosnia-Herzegovina,Kenya,andBoliviaactivity. · Shanghai:DevelopingaGreenElectricityScheme (ESMAP Technical Paper 105/06). · BhutanHydropowerSectorStudy:OpportunitiesandStrategicOptions(ESMAPTechnicalReport119/07). · PrivateSector,Small-scale,Grid-connectedRenewablePowerGenerationinSriLanka:AReviewoftheExperienceofthePast Decade (publication in process). Source: ESMAP activity database and annual block grant agreements, June 2008. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Box 3.2: Dealing with Subcritical Orders for Wind-Power Demonstration Activities An example of operational support provided by ESMAP involved an assessment of problems and solutions of the early demonstration projects for wind-power generation. The prob- lems recently came to light when World Bank projects in Cape Verde and Djibouti stalled because no bidders came forward on tenders for small wind activities. One of the fundamental problems facing small wind-power demonstration activities at present is the short supply situation in the mainstream large wind-turbine industry. This is due to a lack of capacity in key component industries, including generator and gearbox manufacturing. The already tight market situation has been put under additional pressure due to political attention and actual demand for renewable energy in both developed and developing countries. In this seller's market, major turbine manufacturers are consequently focusing their attention on large-scale, profitable, low-risk activities in OECD countries, ba- sically leaving out the smaller, higher-risk orders from developing countries. The problems faced in Cape Verde and Djibouti were investigated by ESMAP through dis- cussions with developers and turbine manufacturers. As a result, recommendations were made that these countries, the Philippines, and Yemen, remove some of the size restrictions on wind turbines and increase activity or order sizes by bundling activities together and re- moving some restrictive tendering requirements. These wind-generation activities are still unlikely to draw major manufacturers; but as reconfigured, they may be better suited to the capabilities of medium-sized manufacturers, particularly providers of smaller turbines, which may have a chance to recover a certain market share in the presently tight market. Recovery of this market segment is clearly in the strategic interests of many of the Bank's 15 15 client countries, because smaller turbines are much easier and less expensive to handle in terms of installation logistics (e.g., transport, craning) and grid integration. Source: Soren Krohn, ESMAP Sr. Energy Specialist. During 2007 and early 2008, ESMAP was instrumental loaninChina,theChinaRenewableEnergyScale-UpProgram. in providing high-quality analytical work on renewable During the past year, ESMAP has also facilitated energy policies in many countries around the world (Table dissemination of knowledge and best practices in renewable 3.3). One example of this work was the study, Policy and energy. In May 2007, ESMAP participated in the European Strategy for Promoting Renewable Energy in Nicaragua Wind Energy Conference in Milan, Italy and shared World (Unlocking Potential, Reducing Risk: Renewable Energy Bank experience in wind energy work, particularly issues Policies for Nicaragua, ESMAP Special Series Report 003/07). relating to cost. ESMAP also established a Renewable Energy This study examined policies inhibiting the growth of Thematic Working Group in June 2007 to disseminate and renewable energy in Nicaragua and made recommendations share knowledge on renewable energy technologies. The on how the government should address the issues moving group has so far held several meetings covering issues such forward. The results of this work were incorporated into as, deep-green global energy scenarios, the world market a new legal framework adopted by the government. In situationforwindpower,andthegeothermalenergyoutlook. addition,workonrenewableenergyinChinawashighlighted in the Knowledge Exchange Series Note No.11: Scaling Up The work of ESMAP also has had significant results for the Renewable Energy in China: Economic Modeling Method World Bank Group's energy operations. In one important and Application. This work investigated least-cost solutions result, Morocco enacted legislation in 2008 on renewable for implementing renewable energy in China by examining energy and energy efficiency, based on technical assistance supply curves for renewable energy and competing energy from ESMAP. ESMAP also supported work to achieve sources. The project on which this work was based was very better results in tendering for wind-power generation important in the development of a major renewable energy equipment in the prevailing tight market (Box 3.2). This resulted in a redesign of procurement procedures, and encourage the use of best practices for alleviating energy as a consequence, projects have made adjustments access problems in developing countries. ESMAP continues better adapted to the sector's recent business practices. to provide useful analytical contributions to these efforts, and it has been able to integrate key findings into country-level ESMAP also worked with World Bank operational units in policy dialogues and World Bank operational activities. This developing and preparing renewable energy activities and theme is of critical importance for ESMAP and has been an evaluating theses investments' development impact. This important feature of the program since its very beginnings in support ranged from projects promoting renewable energy the early 1980s. Over the years, work on energy and poverty strategy for Colombia, a wind program for Jordan, and a has evolved, however, and these changes are also reflected in geothermal strategy for Indonesia. Technical reviews were important ESMAP activities during the past year. Due to the completed for renewable energy legislation for Morocco, for diverse nature of ESMAP funding for Energy and Poverty, this 16 tendering documents for large wind activities in Mexico, and section reviews the main energy and poverty theme, as well as for assessing renewable resources for Yemen. To facilitate the work completed under the ESMAP Energy SME program. International Finance Corporation (IFC) financing of new renewable technology and market development, ESMAP The 2007 achievements on Energy and Poverty include the provided an initial assessment of various wind energy completion of a major study on rural electrification, initiation technologies, procedures, and business opportunities. of a new program on biomass energy, and development of methods for addressing the impact of energy for Renewable energy will only increase in importance for households in developing countries. Major knowledge both developed and developing countries in the coming tasks were also completed, including a pioneering study years. ESMAP will continue to support expansion of on successful rural electrification programs in developing renewable energy development around the world countries, a rural energy strategy for Bangladesh, and a through quality analytical work promoting appropriate methodology for measuring energy poverty (Table 3.4). In renewable energy policies; through dissemination of its addition, during this period, the issue of energy for poor work using high-quality publications and knowledge households in periurban areas was identified as a major new events; and through project implementation via the area for ESMAP concentration. Finally, a successful ESMAP regional energy operations of international organizations. activity for providing grants directly to NGOs promoting small projects on energy poverty was closed. This project Energy Poverty involved both cooperation with the Global Village Energy Partnership (GVEP) and administration of a Development Energy as a means for poverty reduction remains on the Marketplace­style small grants project called the GAPFund. international agenda, although enabling poor people to This report includes many photographs relating to the work gain access to modern energy services remains a challenge completed by the grantees of this program. Last but not around the world. As a consequence, it remains necessary least, during the year, a wide variety of support was provided to examine the relationships between energy and poverty, for pre-investment activities for regional energy operations. to disseminate lessons learned in a timely way, and to ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM The breadth and depth of work under the Energy Poverty (Published by RFF Press and ESMAP) along with a major thematic area has established ESMAP's reputation as a prin- dissemination workshop on the topic held in Washington, ciple source for analytical work and operational support on DC, in October 2007 (Box 3.3). The book explains how energy access issues. Several studies were published during to meet the challenge of providing electricity to rural the past year that will be influential in the field for many years areas through appropriate financial and subsidy policies, to come. In addition, several important workshops and dis- how to achieve clear institutional mandates for dealing semination events have highlighted the efforts of the World with issues as they emerge, and how to deal with both Bank Energy and Poverty Thematic Group. These publica- political and local participation issues. The Challenge of tions and events illustrate the depth of the group's work on Rural Electrification will be very important for the many energy poverty and its commitment to disseminate it widely. countries in the world just now beginning to initiate rural The major Energy and Poverty achievement of the year electrification programs, including many in Africa, where was the publication of its flagship study, The Challenge of rural electrification rates are typically less than 10 percent. Rural Electrification: Strategies for Developing Countries, Table 3.4: Key Energy and Poverty Activities, January 2007-June 2008 Think Tank · Brazil:HowdoPeri-urbanPoorMeettheirEnergyNeeds:ACaseStudyofCajuShantytown,RiodeJaneiro 17 (ESMAP Technical Report 094/06). · CleanerHearths,BetterHomes:ImprovedStovesforIndiaandfortheDevelopingWorld (publication in process). · HouseholdEnergy,IndoorAirPollution,andHealth:AMultisectoralInterventionPrograminRuralChina.(ESMAP Special Series Report 002/07). · Framework for monitoring and evaluation (M&E) of rural electrification activities in Bangladesh, Peru and Vietnam under the activity Impact of Rural Electrification on Development. · Welfare Impacts of Rural Electrification: A Case Study from Bangladesh (to be published by DEC). · TheWelfareImpactofRuralElectrificationinVietnam (draft report funded in part by the Multi-sector survey ESMAP activity and cofinanced by the DIME program in DEC, in process). Knowledge Clearinghouse · TheChallengeofRuralElectrification:StrategiesforDevelopingCountries (Flagship report, RFF Press, Washington, D.C., July 2007, ISBN 978-1-933115-43). · SessiononBiomassEnergy,RuralElectrification,andMicrocreditandsmallenergyserviceproviders,energyeventsofSDNWeek. · WorkshoponGenderandEnergy,tobetterincludegenderinWorldBankenergyoperations,May2008. · JointESMAP-IEGWorkshopontheWelfareImpactofRuralElectrification,June2008. Operational Leveraging · EnergyAccessinAfrica:Scale-UpInitiative,jointlywithAFTEG. · GVEPGAPFundactivity,completedinJanuary2008:morethan20activitiesin10countries,worthintotaloverUS$1million, financed and disbursed. · RestoringBalance:Bangladesh'sRuralEnergyRealities (publication in process). · Haiti:StrategytoAlleviatethePressureofFuelDemandonNationalWoodfuelResources(ESMAP Technical Report 112/07). Source: ESMAP activity database and annual block grant agreements, June 2008. Obtaining high-quality biomass energy is one of the most sophisticated researchers, of evaluating the impacts of single important issues facing the energy poor. We know that interventions. The World Bank Group has felt a pronounced the poor use primarily biomass energy, and yet programs need for greater emphasis on impact evaluation of program to promote its clean and efficient use have been very interventions, especially for infrastructure programs. This difficult to implement for a variety of reasons. ESMAP new initiative addresses that need in two ways. The first is is committed to alleviating biomass energy problems in by examining the development impact of rural electrification developing countries and has recently added a biomass programs in countries with existing monitoring and energy specialist to its staff. In addition, several very evaluation surveys--mainly Vietnam and Bangladesh. The important studies have been published that demonstrate second is by developing, and assisting operational staff new approaches to the problem. Household Energy, Indoor with, prospective projects that include quality monitoring Air Pollution, and Health: A Multisectoral Intervention and evaluation components. The results so far are quite Program in Rural China (ESMAP Special Series Report encouraging. Using techniques for identifying causal factors, 002/07) highlights China's improved stove program and its the impacts of rural electrification on income appear to be in effectiveness in alleviating problems of indoor air pollution. the range of 10 to 20 percent, with an apparent continuing Haiti: Strategy to Alleviate the Pressure of Fuel Demand increase over time. on National Woodfuel Resources (ESMAP Technical Report 112/07) presents a strategy developed by and now being Included in the work on energy poverty are a range of implemented as part of a World Bank technical assistance efforts providing assistance to small and medium enterprises project. Finally, a flagship publication on improved stoves that supply energy services to the poor. These efforts in India--Cleaner Hearths, Better Homes: Improved Stoves are quite important, as most larger-scale energy service for India and for the Developing World--was finalized in businesses such as grid electrification and LPG distributors, June 2008 and makes recommendations on new ways to service mainly wealthier households often in more densely promote stoves in India and other developing countries. populated urban areas. This program is detailed in the next section. During the year, ESMAP also completed its involvement and support of the Global Village Energy Partnership Action Energy SME Program Program Fund (GAPFund) by successfully closing all projects and holding a learning workshop during SDN Week 2008. In most developing countries, efforts to formulate This small grants program promotes energy services for the innovative ways to deliver modern energy services to the poor through nongovernmental organizations and small poor confront formidable institutional and regulatory 18 energy enterprises. In all there were 20 winning projects barriers. The emerging experience is that small and medium from a wide range of countries, including India, Brazil, enterprises (SMEs) are better positioned than central utilities Honduras, Philippines, Tanzania, Cambodia, Guatemala, to deliver decentralized and small-scale energy services. Kenya, Sri Lanka, Vietnam, and Zambia. Virtually all of the projects were successful. One notable project for improving ESMAP's Energy SME Program is unique and perhaps one stoves in Brazil, led by Instituto de Desenvolvimento of the first global initiatives attempting to include SMEs Sustentável e Energias Renováveis (IDER), financed a pilot in the energy agenda in a comprehensive and sustained stove development and reforestation program. The project manner (Table 3.5). In 2007, the ESMAP Energy SME resulted in a new state government commitment to finance initiative supported 13 projects in 12 countries and 1 an additional 4,000 new stoves from IDER and made Brazil's regional program in Africa. The projects continue to national news on a widely popular television magazine demonstrate enormous potential to make significant show. Historically, ESMAP was set up strictly to carry out impact in the relatively neglected area of energy- Bank-implemented work, tapping into and benefiting service delivery to the poor. For example, the program from the diverse pool of Bank talent. The GAPFund supports a variety of stakeholders in Haiti in an effort to opened up new global energy partnership opportunities unblock barriers to an effective SME industry providing for ESMAP through closer engagement with community- energy-efficient and reliable cookstoves (see Box 3.4). based organizations and their projects in the field. The TA for Improved Small-Scale Energy Supply in Nicaragua Amajornewinitiativebeguninearly2008involvesmonitoring was carefully designed to complement that country's Rural and evaluation of rural electrification and development of Electrification Project for Isolated Areas. Two specific pilot techniques to measure an energy poverty line. The well- projects have been developed: (1) a Pico photovoltaic (PV) to known goals of rural electrification programs are to enhance reach the very poor by strengthening new and existing SMEs quality of life and to stimulate economic productivity in rural throughacapacity-buildinginitiativeandanincentivescheme areas. Also, well known are the difficulties even for the most tofacilitateSMEengagement;(2)Picohydropowerandvillage ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Box 3.3: Transformative Power: Meeting the Challenge of Rural Electrification Today only somewhat more than 1.6 billion people--less than 25 percent--of rural populations in developing countries have access to electricity, despite the known ability of rural electrification to transform human lives. Electricity in house- holds allows study and other productive activities during evening hours, operation of electric appliances to reduce house- hold drudgery and eliminate indoor air pollution, and use of electricity-driven irrigation and post-harvest processing to transform subsistence agriculture into profitable enterprises. Despite these proven benefits, many energy policymakers hesitate to invest in rural electrification: the challenge of serving remote rural areas is formidable, and failed subsidies are all too common. Within this context, The Challenge of Rural Electrification: Strategies for Developing Countries (pub- lished by RFF Press and ESMAP) draws on the experience of 10 diverse countries to identify characteristics of effective rural electrification programs. The Challenge of Rural Electrification compiles the best worldwide rural grid-electrification ex- periences in developing countries and focuses on institutional issues, financing, subsidies, and practical implementation. Rural electrification presents a daunting task. Rural populations are often widely dispersed across difficult terrain, raising the cost of per-consumer investment and making service quality difficult to maintain. Poor rural customers often can- not afford the up-front connection costs of grid electrification, and their low consumption levels result in low load fac- tors. Politicians may distort electrification extension and interfere with pricing, bill collection, and disconnection policies. Moreover, the problems of local communities may be overlooked, resulting in disputes over rights of way, and power- sector reform can leave rural people without service. In the face of these challenges, the detailed case studies of successful programs around the world offer hope that acceler- ating the pace of rural electrification in developing countries is possible. The case studies find that well-planned, carefully targeted, and effectively implemented grid-based electrification programs can provide rural people with enormous social and economic benefits. While electrification alone cannot solve all rural development problems, poor people in develop- ing countries cannot take full advantage of other forms of development assistance without access to an electricity supply. Putting the principles derived from these case studies into practice can help to ensure that many more consumers will enjoy the benefits of an electricity supply at acceptable costs without burdening their national governments and power utilities with unsustainable subsidies. 19 Source: Douglas Barnes, ed. (2007), The Challenge of Rural Electrification: Strategies for Developing Countries (Washington, DC: Resources for the Future Press). Table 3.5: Key Energy Small Medium Enterprise Program (SME) Activities, January 2007­ June 2008 Outputs Progress Assessment of the enabling · CasestudiescompletedinCameroonandGuinea,Laos,Cambodia,Peru,Bolivia-IFC,andBurkinaFaso. environment and incentive · Sixteencountry-specificbaselineassessmentsundertaken(LightingAfrica[regional],Laos,Cameroon, framework Cambodia, Peru, Nicaragua, Haiti, Bolivia, Nicaragua, and Guinea). · Projectshelpingtolowerorremoveatleast12barrierstoenergySMEdevelopment(e.g.,accesstodebt finance, import tariffs, capacity, raw material cost, and lack of information). Mobilization of stakeholders and · Twenty-fiveconsensus-buildingconsultationswithstakeholdersin11countries(LightingAfrica[regional], institutional strengthening Cambodia, Cameroon, Mongolia, Peru, Nicaragua, Haiti, Bolivia, Burkina Faso, Tanzania, and Guinea). 20 · Eighteencapacity-buildingexperiencesdocumentedin8countries/projects(LightingAfrica[regional], Cameroon, Mongolia, Haiti, Bolivia-IFC, Burkina Faso, Tanzania, and Guinea), e.g., carbon finance work shop, operational manual development, and various training programs. · FivestrategypaperspreparedandadoptedbylocalgovernmentsinLaos,Cambodia,Cameroon,and Tanzania. Design, development, and · Todate,18pilotprojectsdevelopedandinitiated;e.g.,inBolivia,Cambodia,Mongolia,Laos,Peru,and implementation of pilot projects Haiti. · ActionplanstoscaleupapilotprojectdevelopedinCameroon,Cambodia,Nicaragua,Haiti,andBolivia. Facilitation of financing · Nearly50banksidentifiedinfourcountries(40inCambodia,1inHaiti,5inTanzania,and2inGuinea). mechanism · Financinginstrumentsupply-demandgapsidentifiedin5countries(LightingAfrica[regional],Cambodia, Bolivia-IFC, Tanzania, and Guinea). · NewfinancialinstrumentsmadeaccessibletoSMEenergyserviceprovidersinCambodia,Cameroon, Burkina Faso, and Guinea. · Fourgovernment-ledfundinginitiativessupportingSMEenergyserviceprovidersin4countries(Haiti, Bolivia, Tanzania, and Guinea). Capacity building · Trainingprogramsundertakeninatleast8projects/countries(LightingAfrica[regional],Cambodia, Cameroon, Mongolia, Haiti, Burkina Faso, and Haiti). · Morethan200SMEenergyserviceprovideremployeestrainedthusfarinprogramsinCambodia, Mongolia, Haiti, and Guinea. · Eightprivate-sectorforumsorganizedin6countries(Cambodia,Mongolia,Haiti,Bolivia-IFC,Tanzania,and Guinea). Source: Energy SME Annual Report 2007. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM grids oriented toward community solutions engaging SMEs Building on IFC's Lighting the Bottom of the Pyramid project, in battery-charging programs dispersed around village grids. theEnergySMEProgramsupportstheLightingAfricaactivityto In Peru, the program on Small and Medium Enterprises for accelerate the uptake of modern lightning services by mainly Energy Services Delivery is integrating SMEs into the rural- rural households and enterprises as yet without access and electrification sector to boost the rural energy supply and currently relying on kerosene lanterns and battery lighting. to strengthen off-grid energy supply chains. Specifically, the project is helping to define simplified concession This project leverages resources and knowledge exchange arrangements, including the necessary institutional and from associated programs such as Global Environment legal arrangements for pilot SMEs. The project also creates Facility (GEF), Public-Private Infrastructure Advisory Facility key business development tools for SMEs in the electricity (PPIAF), International Finance Corporation (IFC), and ESMAP. sector (e.g., standardized and simple financial accounting, billing practices, and potential business models) and outlines The Energy SME Program has been instrumental in linking a strategies for navigating legal/regulatory challenges. number of country initiatives. The Lighting Africa initiative is linked, for example, to the Bolivia and Nicaragua Pico To develop the role of SMEs in energy services in Cambodia, PV activities providing support for design, development, the Decentralized Energy Services in Cambodia Program and marketing of improved lighting products by new features several components: (i) improved household and existing SMEs. Specifically, market research in several cookstoves and palm sugar stoves, (ii) biomass gasifiers for African countries is shaping the design of Bolivian and village electrification, (iii) efficient battery charging, and Nicaraguan activities aiming to deliver low-cost modern (iv) LED lanterns. Together, these projects tackle various lighting products to the poorer segments of the population. energy issues facing rural communities, which will benefit by increased and improved access to energy services. Box 3.4: Haiti: Building a Sustainable Market for Improved Stoves In Haiti, the poorest country in the Western Hemisphere, more than 70 percent of the population lives below the poverty line. With rising charcoal prices and rapid deforestation, many Haitians 21 are unable to afford cooking fuels, leaving them able to eat only one cooked meal per day. The ESMAP Energy SME Program assists Haitian SMEs in developing better infrastructure for the production of energy-efficient stoves that reduce the cost of cooking for urban households and improve health conditions. To generate sustainable production of MIRAK* improved stoves, the project facilitates the modernization of the supply distribution chain. Training is helping artisans to develop management and business skills, form small enterprises, and improve their production capacities. To date, over 70 artisans have been trained as potential producers of MIRAK stoves. These artisans are expected to form at least 10 SMEs and to produce more than 50,000 improved stoves in the initial phase. A public awareness campaign has also been launched to educate consumers on the economic, health, and environmental benefits of the stoves. This project is helping to strengthen the country's SME and private sector by improving the business model and production scheme of energy-efficient stoves. Poor households, along with entrepreneurs, directly benefit from the improved stoves program. Source: Energy SME Annual Report 2007. * The MIRAK is a type of stove used in Haiti. Table 3.6: Key Market Efficiency and Governance Activities, January 2007­June 2008 Think Tank · LessonsofPowerSectorReform1988­2004:AReviewofESMAPInterventionsinBolivia,Poland,Ghana,andThailand(published by the Region in September 2007). 22 · PotentialandProspectsforRegionalEnergyTradeintheSouthAsiaRegion(ESMAP Formal Report 334/08). · DesigningStrategiesandInstrumentstoAddressPowerActivitiesStressSituations (publication in process). · The final internal report for the Roundtable: Governance Standards/Code of Conduct/Performance Benchmarks for Electric Power Public-Private Partnerships (PPPs) was completed. Knowledge Clearinghouse · Disseminated the reportsGhanaPovertyandSocialImpactAnalysisofElectricityTariffs(ESMAP Technical Paper 088/05) and Sector ReformsandthePoor:EnergyUseandSupplyinFourCountries:Botswana,Ghana,Honduras,andSenegal(ESMAP Technical Paper 095/06) to the World Bank internal audience and to external interested parties through two brown-bag lunches. · ExperienceswithOilFunds:InstitutionalandFinancialAspects(ESMAP Formal Report 321/06), disseminated in preparation for the Spring 2006 G-8 meeting, highlighting the importance of energy and governance. · Third World Forum on Energy Regulation (attended by 20 regulators from developing countries to further their knowledge of major energy regulatory issues). Operational Leveraging · TheDevelopmentofRegionalPowerActivitiesforWestAfrica,Mekong,CentralAsia,andSouthernEuropeactivity. · The Ghana Energy Policy Economic Sector Work activity produced a series of reports which were disseminated by the Region in 2007. ESMAP funds complemented the regional allocation for energy sector dialogue and project preparation. However, the final report was published as an internal product,GhanaEnergyPolicyEconomicandSectorWorkPapers:TheElectricitySector. · Vietnam:GasMasterPlanReview activity (Report awaiting Government clearance). · DevelopmentofPowerGenerationinSoutheastEurope:ImplicationsforInvestmentsinEnvironmentalProtection(ESMAP Technical Paper 123/08). · Turkey:GasSectorStrategyNote (ESMAP Technical Paper 114/07). · Paraguay:EstrategiaParaelDesarrollodelSectorEléctrico (ESMAP Technical Report 122/08, Spanish only). · RepublicofYemen:ANaturalGasIncentiveFramework(ESMAP Formal Report 327/07). Source: ESMAP activity database and annual block agreements, June 2008. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Market Efficiency and Governance Sector reforms and regulatory development over the past power-sales contract greater credibility with developers decade aimed mainly at attracting international private as well as with local entities, such as the energy ministry, investmenttoconstructlargeenergyactivitiesininterconnected the utilities, and even the public at large. Another example systems. Largely overlooked were access activities to provide involves Turkey, which, with ESMAP support, put in place energy for isolated rural and periurban areas and to utilize capacity certificate schemes to enhance market-capacity local entrepreneurship potential. ESMAP's Market Efficiency operations. This capacity building for market operations and Governance program focuses on creating the conditions represents an important advance in Turkey's regulatory necessary for energy markets to become more competitive structure. Another ESMAP-supported activity in Turkey is the and thus better able to contribute to poverty reduction (Table Strategy to Expand Gas Distribution and Utilization, which 3.6). This thematic area can contribute in several ways to resulted in the publication Turkey:GasSectorStrategy Note energy and development, including developing environments (ESMAP Technical Report 114/07). to support efficient and stable energy markets, private-sector investment, and the poverty reduction agenda. In addition, A activity influencing the World Bank Group's approach market efficiency and governance initiatives can help improve to energy trade within a single country has been the Gas the institutional capacity of policymakers and regulators, Incentive Framework Study in Yemen.11 This work examines 23 particularly for energy-sector revenue management. Finally, different options for developing Yemen's as yet unrealized another important effort is the creation of effective public- domestic gas production. While modest by regional private partnerships, especially those engaging SMEs with an standards, this resource could be a substantial boon for the energy development and delivery focus. Yemeni economy. The report analyzes field development with both export and domestic use in mind. The report The types of projects supported by ESMAP during the last suggests that the benefits of domestic use will likely year included regional power interconnection and energy- outweigh those realizable from export. It cautions, however, market development, focusing on disseminating experience that if the domestic option is selected, both gas transport and drawing conclusions from earlier work on successful and consumption infrastructures will need to be developed, power-systems interconnection and pooling. ESMAP also because current demand is insufficient to consume the supported regional energy trade through the preparation of expected gas production. the political framework agreement for the Mekong region under the Greater Mekong Sub-Region Power Trade Strategy. Many lessons derive from energy market efficiency and This activity culminated in the signing by Cambodia of a governance efforts. First, ESMAP support for knowledge critical intergovernmental agreement. Several new initiatives sharing, institutional development, and capacity development for power-market regional integration were developed, has a catalyzing impact on building the political consensus including technical assistance for establishing the Water- necessary for supporting activities that encourage efficient Energy Consortium in Central Asia, Regional Energy Trade and stable energy markets, private-sector investment, and (South and Central Asia), and the Energy Integration of the the poverty reduction agenda. In addition, commercialization Great Lakes Systems in Africa. of parastatals can be an effective tool for successful reform of poor-performing, state-owned enterprises. Further, public- Responding to the Nigerian regulator, an ESMAP study sector capacity must be enhanced to adequately support provided techniques for supporting the county's initiative reforms in the private sector. Finally, to maximize the benefits to develop tools to improve the regulatory review of power to the poor of sector reform, pro-poor efforts should be purchase agreements. This innovative work will give the embedded in power-sector reforms rather than developed in parallel. 11. ESMAP Formal Report 327/07. IV. Regional (January 2007­June 2008) This section highlights the 24 regional achievements of ESMAP in 2007 and early 2008, in keeping with the new emphasis on regional needs and operational priorities. Note, however, that the review in this chapter is intended to highlight regional issues rather than to describe comprehensively activities in each region. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Regional Highlights Beginning with the 2005­2007 Business Plan, ESMAP has · ESMAP activities have a much bigger influence on substantially modified the review and management of operational World Bank programs. activity proposals. Under the new approach adopted in · ESMAP-supportedactivitiesreceivemoremanagement late 2006, regional activities supported by ESMAP now are attention, because the performance of regional portfolios prioritized and prepared by the regional operational units (in terms of disbursements, quality enhancement, and timely of the World Bank. They are then submitted to ESMAP delivery of outputs) is a factor in the allocation of regional for review and approval. This approach has led to several funding envelopes. improvements, including: This section highlights the regional achievements of ESMAP · Regional activities proposed for ESMAP support in 2007 and early 2008, in keeping with the new emphasis are better coordinated and more reflective of regional on regional needs and operational priorities. Note, however, priorities. that the review in this chapter is intended to highlight regional issues rather than to describe comprehensively activities in each region. Highlights Africa Sub-Saharan Africa faces major infrastructure challenges, sub-activities. One has been to support outreach efforts on 25 the most severe of which are arguably those in the power issues of energy security and investment by Africa's energy sector. Not only is the region's energy infrastructure meager policymakers through the Forum of Energy Ministers in compared with other regions but electricity service is costly Africa (FEMA). Another is pre-feasibility work to identify and unreliable. In recent years more than 30 of the 48 transformative regional generation and transmission countries in the region have suffered acute energy crises. projects. Another is the ongoing activity to develop a sector- Rates of household electrification is proceeding more slowly wide approach (SWAp) in Rwanda and other countries. than in other low-income countries, supply is inadequate, The SWAp approach implies that it is government led, is unreliable and costly. Concerted action is needed on three underpinned by a policy and institutional reform program, strategic priorities: (i) regional scaling-up of generation has stretch targets for improved reliability, connectivity capacity use; (ii) improving the effectiveness and governance and supply, and has a fully costed and funded investment of utilities; and (iii) expanding access through sector-wide program. In this context, the project financed pilot projects engagement. The three are interdependent and must be on the use of Geographic Information Systems (GIS) tools tackled together. The current ESMAP portfolio contains for electrification planning in Kenya and Senegal. These several activities consistent with these priorities, including activities have all produced results relevant to addressing the efforts highlighted below to improve electricity distribution energy needs of Sub-Saharan Africa. efficiency and to increase productive uses of electricity. ESMAP's Africa portfolio comprises 43 activities valued Under the Rural Electrification Activity in Guinea, funded at US$6.4 million. Approximately 60 percent, valued at by by the International Development Association (IDA), US$3.9 million, involve energy and poverty; about 12 percent, ESMAP currently funds and provides technical assistance involving US$0.66; million, address energy security; and similar for building the capacity of the Guinean Rural Electrification or somewhat lower levels of funding support market efficiency Office to support local entrepreneurs in preparing business and renewable energy. plans and developing management information systems. ESMAP's technical assistance has mobilized 33 local, private The ESMAP activity Action Plan for Energy Access Scale- entrepreneurs to invest in the development of small, Up in Africa is an umbrella activity with a number of major decentralized electricity systems in isolated rural areas. The AFRICA Figure 4.1: ESMAP Activity P103456: Implementing the Action Plan for Energy Access Scale-Up, a Timeline of Key Events FEMA Africa Planning 1st Joint AfDB/WB Ministerial Electrification 2nd Joint Joint Planning Conference on using GIS: Work- AfDB/WB Successor Activities on Workshop on Ener- Energy Security shop at Colom- Joint Planning Workshop SWAps, G&T projects Action Plan for gy Access Scale-Up & Sustainability bia Earth Institute June 2008 and AFREA commence Access Scale September 2006 March 2006 June 2007 Up Work on Conceptualization July-October 2008 Gleneagles G8 IMF/World Bank Focus on Africa Singapore Annual 1st Phase and commitment Meeting Endorses Action Fifteenth Session 1st Energy final report on to a doubling of aid Plan for Energy Access of the Sustain- Sector SWAp Catalytic G&T July 2005 (Pillar 1) in Clean Energy able Development signed in Packages Investment Framework (CSD-15) Special Rwanda August 2008 September 2006 Session on Energy July 2008 Access May 2007 Source:AfricaRegionalEnergyUnit(AFTEG). 26 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM firstentrepreneurialprojectshavebeensuccessfullyoperating and South Africa. As a consequence, ESMAP's funding has for a year and, with support from their local communities been complemented by an equal or greater amount of and technical assistance from the Rural Electrification resources from GTZ. Office, they have demonstrated the commercial viability and sustainability of electrification efforts based on the Guinean The Rural Lighting Initiative for Africa (RLIA) addresses a core business model. elementofoneofthetracksofPillar1oftheCleanInvestment Framework: meeting basic needs by equipping households During this past year, as precursor of new work on peri- with affordable, modern lighting. By 2030, the Initiative urban energy, a report was completed on urban energy aims to offer modern, affordable, and reliable lighting in Lagos, Nigeria. Lagos was one of the few cities where services, sustainable over the long term, to 50 percent of the World Bank piloted multisector efforts toward reducing those 500 million people in sub-Saharan Africa now without urban poverty, including a household survey for which access to modern energy services. One of the important ESMAP offered invaluable and timely support. The survey activities sponsored under this Initiative was a "Development generated data that has led to a deeper understanding Marketplace" for lighting solution entrepreneurs. More than of consumer energy affordability, an understanding now 500 participants from countries in Asia, Africa, North and being used by the IDA Energy Team to design Lagos' power South America, Europe, and Australia took part in this first distribution privatization scheme. The survey results will be of a kind global business conference in Accra, Ghana, May 27 a key factor for decisionmakers involved in energy service 6­8, 2008, to focus on off-grid lighting in Africa. Highlights provision, including the private sector. The survey, to be included the release of preliminary market research results repeated every three years under the Lagos Metropolitan on the market potential and lighting needs of African Development and Governance Activity, will provide a consumers and the establishment of strategic partnerships credible household-level impact assessment of energy-sector and business networking opportunities. Participants could interventions in Lagos. The survey is also being used in the also view the latest off-grid lighting innovations, showcased AFR Infrastructure Country Diagnostic Study to assess Lagos' in booths at the industry trade fair and in the Development urban infrastructure situation and to compare it with that in Marketplace. The Development Marketplace selected three other large African cities. grant competition winners who will receive funding to implement projects offering affordable, clean, and safe off- Productive use of electricity is critical for rural electrification grid lighting and promising improved lighting access for programs because it raises incomes and increases sales people living without electricity in countries such as Burkina for service providers. To support productive electricity Faso, Cameroon, Ghana, Kenya, Liberia, Namibia, Nigeria, use in Sub-Saharan Africa, ESMAP is financing a study Rwanda, and Tanzania. The list of winners can be viewed to better understand how best to promote such use in a at the following internet address: http://lightingafrica.org/ typical electrification activity. The intention is to document index.cfm?Page=DM. productive-use approaches that go beyond the technical means of electricity delivery. The goal is to make it easier for Another activity supported by ESMAP is a study with poor people, specifically those involved in microenterprises, the objective of formulating a modern biofuels strategy to improve their incomes, thereby making electricity more in Mozambique and Ethiopia. In addition, ESMAP has affordable to them. This ESMAP work is being implemented supported upstream work that has facilitated the preparation in partnership with the German Agency for Technical of household energy projects in a number of countries, such Cooperation (GTZ). GTZ finances country case studies in as Mali and Senegal, that tackle the safe and sustainable Uganda and Ghana, and ESMAP finances studies in Nigeria supply of cleaner biomass fuels. EAST ASIA AND THE PACIFIC 28 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM East Asia and the Pacific The rapid growth in the use of energy, especially electricity These projects also provided regional energy operations with in the East Asia and the Pacific Region (EAP), have had opportunities to engage in discussions with government implications for most of ESMAP's thematic areas, but most officials and coal mine managers and to work jointly on the importantly for energy security and environmental concerns. possibility of new lending for carbon finance operations to In fact, the current EAP energy business strategy is quite well reduce greenhouse gas emissions. aligned with ESMAP's strategic goals. Of particular relevance, ESMAP has helped finance activities that have laid a solid Energy efficiency is also a key component in reducing the foundation for World Bank policy dialogues and investments growth of energy use in China, along with the accompanying in the region. As exemplified by the accomplishments of tasks adverse environmental impacts of such increased use. As in 2007 and early 2008, ESMAP support has been critical for a consequence, an ESMAP activity, termed China: Energy important energy operations and knowledge dissemination. Efficiency Financing, complements other ongoing work In particular, ESMAP funding has been utilized for energy in the region. Looking at China's most energy-intensive security and clean energy initiatives in China. These are sectors, this project examines ways to improve energy 29 central concerns because of the large potential opportunities efficiency through possible changes in policies, regulations, for reduction of greenhouse gas emissions in China. institutions, and technology use. To discuss these broad issues, a national workshop was held jointly by the Several important tasks approved in 2006 are nearing government and the World Bank, with participation by completion. The first involves China's sustainable coal sector. senior provincial and central Chinese government officials, As part of this work, a local EAP team completed background major Chinese policy agencies, commercial banks, and studies on the environmental damage and cost of coal managers of energy-intensive industries. As a consequence mining in Shanxi Province, China, and an international firm of this work, background reports on the energy sector in the completed a report on environmental management of coal Shanxi and Shandong Provinces are providing the basis for a mining activities. These studies have been combined into the proposed World Bank energy efficiency financing activity. report Steps to a Modern, Safe, and Sustainable Coal Mining Sector in China (soon to be published). This work will be of China has thus far been the main focus of ESMAP regional great assistance to the Government of China and to mining grant funds, but that is changing. Other activities, either officials concerned with the latest ideas and best practices financed or proposed, include the EAP regional energy study: on environmental issues and sustainable coal mining. the Vietnam Gas Master Plan Review and the Philippines Rural Energy Market Reform activity. Although China will Methane has been an issue for coal mining in China for many remain a key focus, it is anticipated that in the coming years, years, and it also is a significant contributor to greenhouse ESMAP will make grants supporting a greater diversity of gases. With ESMAP support, this issue has been addressed activities in more countries. in A Strategy for Coal Bed Methane (CBM) and Coal Mine Methane (CMM) Development and Utilization in China (ESMAP Formal Report 326/07). As a complement to this work, a China Coal Bed Methane Strategy was developed, and the Chinese version was discussed with the government. LATIN AMERICA AND THE CARIBBEAN ESMAP's support has been used to help address the main challenges facing the energy sector in the Latin America and the Caribbean 30 Region (LCR): enhancing energy security, improving access to energy services for the poor, mobilizing the financial resources required to meet power- sector investment needs, improving governance, and reliable energy development. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Latin America and the Caribbean ESMAP's LCR 2007 and early 2008 portfolio builds on its a study on Policy Options for Renewables. Finally, in Peru, previous work on energy-sector strategies and energy the activity Overcoming Barriers to Hydropower Investment trade and places an increasing focus on climate change. will help identify the main bottlenecks to the sustainable Included in the LCR Energy Strategy conducted during development of hydropower resources. the year was an assessment of energy-sector reform. This assessment evaluated energy-sector reform from a variety of ESMAP continued to support the strengthening energy- perspectives, including its achievements, difficulties, lessons service delivery of SMEs through grid-based and off-grid learned, and current status. The LCR Energy Strategy also systems. In Bolivia and Nicaragua, where electricity coverage includes a review of energy-sector future issues, such as is low, the electrification challenge is enormous, requiring investment and financing requirements, constraints and innovative business models and financing mechanisms to challenges to be faced, and the development agencies' roles provide energy services for the large populations without in helping to meet the region's energy needs. This study electricity. In Bolivia, ESMAP funding is used to strengthen provides a solid basis for the formulation of a new World Bank energy strategy for the region. In addition, individual country studies in Ecuador, Honduras, and Uruguay made recommendations on short- and medium-term interventions needed to ensure the sustainability of quality energy services and to enhance the diversification of the energy supply. Following the Honduras sector strategy study, the World Bank is preparing an investment activity to improve the financial and operational efficiency of the country's energy utility. ESMAP supported a pioneering study on benchmarking LCR electricity utilities. The results provide not only historical perspective but permit comparisons of power solar home-system supply chains and to encourage the utility performance among the region's countries. The development of new markets for PV-Pico as part of the initial product of this study has been well received by the Bolivian government's pre-electrification effort. This is to be policymakers, utilities, and regulators, as well as by the done by enhancing the capability of small-scale village-grid Bank operational staff. As a result of this work, additional suppliers and cooperatives. In Peru, a technical assistance 31 activities were launched in 2008 to explore further the activity supported by ESMAP seeks to foster the participation social dimensions in the provision of electricity services of SMEs in the delivery of energy services. and to identify nontraditional mechanisms for providing infrastructure services to the poor. The LCR region is also beginning to examine the problems involved in biomass energy use. Haiti's population is both one Climate change issues have become increasingly important of the poorest in the region and the most heavily dependent in LCR. The main work in this area has been low-carbon on biomass fuels for household energy. Following ESMAP studies conducted in Mexico and Brazil. The goals of these work commissioned to examine this issue, a small activity studies are twofold: first, to identify policies and programs for was devised promoting the use of energy-efficient stoves in reducing greenhouse gas emissions that can best contribute rural households with the goals of improving energy services, to short- and long-term social and economic development; alleviating indoor pollution and related health problems, and and second, to attract domestic and international financing relieving pressure on the scarce biomass resource base. for emission reduction activities through loans, grants, and credits. The studies have received significant support Looking forward, the accumulated knowledge made possible both internally at the World Bank (with more than US$1 by ESMAP work fostering innovation and investment in million of Bank budget support) and externally from the energy infrastructure service provision across the region host governments and other stakeholders in a cooperative contains many valuable lessons. Two specific examples manner (Given the extensive work to be done in the area, stand out. Past work in Argentina examined household the governments have requested further studies to fill the energy consumption patterns and ability to pay. Other work remaining gaps. The final results of these studies will be mapped the region's existing traditional and nontraditional available by the end of 2008). mechanisms for providing infrastructure services to the poor. It is time to reflect on and learn from these and other Several other LCR studies address regional and global activities and to generate insights that will be useful to issues. A study in Mexico looks at electricity subsidies and policymakers, utilities, regulators, government officials, and their implications for the sector. A major study evaluating other influential participants in the region's energy-related biodiesel was carried out in Brazil. Ongoing in Colombia is work. MIDDLE EAST AND NORTH AFRICA 32 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Middle East and North Africa ESMAP plays a very significant role in addressing many of The West Bank and Gaza is one of MNA's most vulnerable the challenges faced by the energy sector in the Middle clients. Compiled with ESMAP assistance, the West Bank- East and North Africa Region (MNA). This support has Gaza: Energy Sector Review has been essential in identifying generated significant results in the past few years as the short- and longer-term measures to improve operational regional allocation of ESMAP resources has increased and and financial performance. Sound policies are needed to the World Bank--as a development partner--has become promote energy security, an increasingly important concern an increasingly important player. ESMAP support to MNA given the sustained conflict affecting the area. Also, spans the four strategic themes, but it has been particularly problems with deteriorating electricity access and quality of prominent in the areas of energy security and renewable supply have significant implications for economic and social energy and energy efficiency. This has been prompted by welfare. high international oil prices, heavy subsidies on electricity tariffs, and the region's abundance of wind and solar resources. The region is diverse, with both energy-rich and energy-poor countries, but high international oil prices and high energy demand affect the entire region. ESMAP support to MNA has resulted in some notable studies in Morocco, Egypt, Yemen, and the West Bank. In particular, energy issues in Morocco, a fuel-important country, align very well with ESMAP's main themes. ESMAP-supported work helped the Government of Morocco to design its reform program, including developing a subsidy framework for liquefied petroleum gas (LPG), a very commonly used household fuel. As of today, a second lending operation to support energy reforms is in the early stages of preparation. These recommended reform programs, based in part on work supported by ESMAP, proved useful for the new, incoming government as background for priority-setting and implementing new programs. Yemen is one of the poorest countries in the region. Given the 33 widespread poverty problems it faces, revenue and foreign ESMAP support helped bring to completion the influential exchange earnings from its natural gas resources--allocated study, Egypt: Economic Cost of Gas. ESMAP responded to transparently--can provide a significant boost to economic increased energy subsidies in Egypt and to pressures from and social development. As a result, the ESMAP-supported international oil and gas companies for exploration and study Yemen: Gas Incentive Framework11 has contributed production activities by financing a study of this situation. to the World Bank Group's continuing support for Yemen's The study estimated the economic value of gas to Egypt, natural gas and, more generally, its energy sectors. which in turn resulted in natural gas price adjustments implemented October 1, 2007. These price increases will Today, work supported by ESMAP continues to focus on help generate greater and more cost-reflective gas revenues, renewable energy and energy efficiency. The context of this which in turn will attract more investment into the sector and work, however, is gradually being reoriented toward climate contribute to greater energy security in Egypt. Also in Egypt, change, general pricing issues, and subsidies, thus bringing ESMAP supported a Demand-Side Management workshop it more in line with the Bank's Clean Energy Strategy and that brought together experts and utilities to learn how to regional priorities. implement such interventions when electricity prices are low. This is important because investment in the Egyptian electricity sector must investment needs to meet electricity demands are on the order of several billion U.S. dollars per year. As a consequence of ESMAP's work, the government was encouraged to design time-of-use tariffs targeting the industrial sector and load-management schemes with industrial users. SOUTH ASIA 34 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM South Asia The South Asia Region (SAR) faces a variety of quite long- during the year, with completion of a study on indoor air lasting and complex energy issues. The upward growth pollution and a new technical assistance program, partially trajectory of South Asian countries, especially India, and the supported by ESMAP, in Bangladesh and a new forthcoming consequent rise in demand for energy, has revived interest flagship publication for India, titled Cleaner Hearths, Better in energy security, regional energy trade, climate change, Homes: Improved Stoves for India and the Developing World. energy efficiency, and demand-side management issues. Recently, one of the first urban household energy surveys in Outside Africa, South Asia has the lowest rate of rural Afghanistan was completed, providing useful results for the electrification in the world. In addition, the power sector in country's electricity planning. most countries, while growing rapidly, still lacks the capacity to provide quality electricity service to most of its large and small consumers. Finally, due to high costs or low access to modern energy sources, a large number of rural households in South Asia continue to rely on traditional forms of energy, such as straw, dung, and wood, for most of their household energy needs. Cooperation between ESMAP and SAR has expanded during the last three years, mainly due to the flexibility of the new regional block grants. Last year ESMAP-supported studies addressed the issues of regional energy trade, energy security, and the development of the region's power sector. Regional and country specific studies have also examined energy efficiency issues. One such study was the Bhutan Hydro Exports/Hydropower Sector Study: Issues & Options (ESMAP Technical Paper 119/07). Another study focused on private renewable power generation for grid-connected renewable energy in Sri Lanka. Both studies have been Future work in South Asia will include a more diverse completed and will be disseminated using ESMAP resources portfolio of projects covering themes relevant to the growing during this fiscal year. The Central Asia­South Asia Regional operational agenda in the subcontinent. Renewed focus 35 Energy Trade study involved cooperation with the ECA will be placed on underrepresented countries in the ESMAP region and may have significant implications for future portfolio, such as Nepal, Bangladesh, Afghanistan, and Sri electricity trade in the region. Finally, methods for lowering Lanka. Themes will range from energy efficiency to energy carbon emissions in India have been addressed in studies poverty in addition to energy security and rural electrification. on Strategies for Low Carbon Growth and on Best Practice Planned studies include enhancing energy efficiency in of Coal-Fired Power Plant Rehabilitation--Energy Efficiency Afghanistan's government buildings; incorporating energy Improvements by O&M Practice Changes. Taken together, efficiency measures in the Nepal Electricity Authority (NEA); this work addresses many of the large-scale energy issues in introducing cleaner, more energy-efficient technologies and South Asia. practices in the brick-making sector in Bangladesh; and assessing the impacts of microhydro installations in Nepal. South Asia also has had a long tradition of utilizing ESMAP Poverty-related studies will be complemented by work on support to deal with issues such as energy efficiency and understanding barriers to hydropower development in Nepal, energy poverty. A recent example is work on Pakistan in improving institutional capacity in electricity transmission in Enhancing Access and Rural Electrification--Costs & Benefits, Maharashtra, and developing environmentally sustainable andWillingnesstoPay(publicationinprocess). Thisinnovative power sources in Sri Lanka. Finally, a series of workshops will study utilized focus discussion groups to assess the benefits disseminate past ESMAP work to ensure that the messages in of rural electrification. As indicated in the section on Energy these studies are widely shared with and feedback received Poverty, a study on rural energy strategy in Bangladesh was from policymakers. recently completed. The report, Bangladesh: Rural Energy Realities, is being published as a Special ESMAP report and will be disseminated in the coming year. Work on improved stoves and their environmental benefits also progressed EUROPE AND CENTRAL ASIA 36 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Europe and Central Asia Regional energy operations and clean energy development requirements, renewable energy must reach the goal of 20 are two key pillars of energy strategy in the Europe and percent of electricity generation by 2020. Other support Central Asia Region (ECA). Both lending and economic for renewable energy and energy efficiency comes from sector work have been growing vigorously in these areas. concerns over environmental protection, climate change, Under ECA's new infrastructure action plan, they will further public health, and energy security. Goals such as these are grow in importance in the coming years. Most of the very ambitious, and the real question is how to reach them in current ESMAP portfolio supports these thematic priorities. an effective manner. There are many hurdles to the adoption For instance, regional energy integration and accelerated of renewable energy in these countries, including lack of development of renewable energy resources have received enabling policies and regulatory frameworks. Among the significant ESMAP support. Fortunately, ECA priorities coincide with ongoing work linked to ESMAP's thematic areas. Accelerating the shift to a low-carbon economy through use of renewable energy fits into the renewable energy theme, and facilitating the build up of regulatory capacity and supporting regional energy cooperation and security falls under market efficiency and governance. One key area of work, the Southeast Europe Gasification Study, focuses on various aspects of increasing gas utilization. The study evaluates the economics of LNG and Caspian and Russian gas, as well as the viability of constructing a regional gas infrastructure. An energy poverty issue being assessed by this study is the economics of the gas distribution network development for households in key urban areas. This would allowcustomers,includinglow-incomehouseholds,toswitch to gas, a cleaner and often cheaper source of energy. The work has recently been extended to include gas storage-- countries facing significant challenges in meeting the 2020 an important part of the regional gas market development renewable energy supply mix deadline are Slovakia and agenda--to manage seasonal and daily demand swings for Bulgaria. ESMAP funding will be critical for assisting in the 37 industrial, commercial, and residential customers as well as development of renewable energy and energy efficiency in to enhance supply security. The study's findings feed directly these countries in the coming years. Key tasks will be the into the regional gas investment activity envisaged by the development of appropriate tariff and support schemes for World Bank. renewable energy suppliers, creation of a green electricity certificate program, improvement of renewable energy By supporting the development agenda of the Central Asia­ regulations, and implementation of public awareness South Asia Regional Electricity Market Project (CASAREM), programs so consumers are fully aware of the reasons ESMAP has enabled the structuring of the Central Asia South behind the switch to renewable energy sources. Another Asia (CASA) 1000 Electricity Transmission Project, which major challenge for sector regulators is the establishment in turn will enable the development of major generation of an appropriate regulatory framework for the introduction projects, including export-oriented large hydroelectric and widespread application of smart (or automated) energy projects. The CASA1000 Electricity Transmission Project metering to foster power-market competition and energy is designed, in its first phase, to create the necessary efficiency. The recently approved ESMAP grant for Hungary, infrastructure in Kyrgyz Republic and Tajikistan in Central with considerable cofinancing from the sector regulator, has Asia (the exporting countries) and Afghanistan and Pakistan a large potential for cross-country replication. in South Asia (the importing countries). In August 2008, the four governments entered into the Intergovernmental These are just some of the highlights of ESMAP support for Agreement for the establishment of CASAREM and the ECA projects. Clearly, ECA countries have benefited from realization of the CASA1000 project. ESMAP's work promoting clean energy sources, such as gas, multicountry electricity trade, and, renewable energy Energy efficiency and renewable energy have moved lately and energy efficiency. ESMAP efforts generally support to the top of the energy agenda in most ECA countries. innovative work that will enhance the long-term energy One reason for this is that, as part of European Union future of the region. V. Governance (January 2007-June 2008) 38 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Governance and Management The Technical Advisory Group ESMAP is located in the Energy, Transport, and Water De- The mission of the Technical Advisory Group (TAG) is to pro- partment (ETWD) of the World Bank Group Sustainable De- vide an informed, independent opinion to the CG of the velopment Network (SDN) Vice Presidency. ESMAP reports ETFPs, which include ESMAP, about the purpose, strategic to the Director of ETWD and is overseen by the Energy and direction, and priorities of the ETFPs. In particular, the TAG Mining Sector Board. ESMAP is governed by a Consultative provides advice and suggestions to the CG in the following Group (CG) made up of representatives of contributing do- areas: nors and chaired by the World Bank Vice President, Sustain- · Currentandemergingglobalissuesintheenergy able Development Network. The CG is common to all energy sector that are likely to have an impact on growth and trust-funded programs (ETFPs) managed by the World Bank. development in low- and middle-income countries. A Technical Advisory Group (TAG) of three international ex- · Strategyandoverallprioritiesandtheirdevelopment perts selected by the CG provides independent advice. A into practical business plans, taking into account the and Management program unit manages day-to-day ESMAP activities in accor- volume of likely donor funding that can be secured dance with the strategy and principles laid out in a business for each trust-funded program in the context of the 39 plan approved by the CG. World Bank Group energy business strategy. · BusinessplansforeachoftheETFPsandtheir The Consultative Group contributions to the implementation of the World Bank Group energy business strategy. As provided by the ESMAP charter, membership in the Con- · Potentialimpactofeachprogramandahigh- sultative Group (CG) is open to all contributing organiza- level assessment of the actual impacts from tions without restrictions. Contributions can be either for implementation, especially on the World Bank Group core funding of ESMAP or for noncore thematic funding, energy business and on the programs and interests of where use is restricted to specific themes, activities, or re- the donors. gions (Table 5.1). ESMAP remains open to receiving contri- · Potentialfortheprogramtoarriveatinnovativeap butions from official donors, International Financial Institu- proaches and new knowledge for improving energy tions (IFIs), official agencies, or private enterprises. The CG service delivery in developing countries. meets annually to review the strategic directions of ESMAP, · Anyotherarea,asrequestedbythechairoftheCG. its achievements, and its use of resources and funding re- · Reviewoftheoverallimpactofimplementingthe quirements. The CG is responsible for: ETFPs. · DefiningESMAPpoliciesandstrategies. · Endorsingthebusinessplanandfinancingplan. · ReviewingESMAPperformanceforthepreviousyear. · OverseeingTAG. 40 The ESMAP Unit The ESMAP Unit is responsible for the day-to-day manage- The key responsibilities of the ESMAP unit include: ment of ESMAP, following the general strategy of its busi- ness plan and annual work program as approved by the di- · DeliveringonESMAP'sannualworkprogramand rector of ETWD and then by the CG. business plan. · Preparingtheannualworkprogramandbudgetand The unit delegates the implementation of certain tasks to the ESMAP business plan for review and approval by World Bank staff outside of ESMAP and relies on the support the CG. of external consultants and their expertise to deliver certain · ReviewingproposalsforESMAPassistance. activities. Consultants and external services are procured fol- · ProvidingsupportservicestotheCGandtheTAG. lowing the Bank guidelines on procurement. · Maintainingrelationshipsandensuringadequate reporting with donors and contributors. · Maintainingrelationshipswithexternal stakeholders, including recipient countries, civil society, academia, and the international energy practice. · MaintainingrelationshipswiththeEnergyandMining Sector Board of the Bank and with the Bank energy staff. · ManagingtheESMAPhumanandfinancialresources in accordance with sound management principles and Bank standard practices. ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Table 5.1: Donors and Members of the Consultative Group, Technical Advisory Group, and ESMAP Team CONSULTATIVE GROUP TECHNICAL ADVISORY GROUP AUSTRALIA Andrew Barnett* AusAid Elizabeth Cecelski AUSTRIA Amitav Rath Ministry of Foreign Affairs Winfried Rijssenbeek Austrian Development Agency ESMAP TEAM CANADA Amarquaye Armar, Manager Canadian International Development Agency Ede Ijjasz-Vasquez, Former Manager** DENMARK Marjorie Araya Royal Ministry of Foreign Affairs Douglas Barnes Ranjan Bose FINLAND Amadou Camara Ministry of Foreign Affairs Rogerio Carneiro de Miranda FRANCE Anne-Marie Coonan Ministry of Foreign Affairs Jonathan Coony Liu Feng GERMANY Soren Krohn Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung Lydia Kruse-Tietz Marlon Lezema ICELAND Alain Ouedraogo Ministry for Foreign Affairs Juliet Pumpuni John Rogers NORWAY Royal Ministry of Foreign Affairs Ashok Sarkar Xiaoyu Shi SWEDEN Sheryl Silverman Swedish International Development Cooperation Agency Bipulendu Singh 41 Jas Singh THE NETHERLANDS Ministry of Foreign Affairs Cindy Suh Mohideen Wakeel UNITED KINGDOM Nyra Wallace-Crawford Department for International Development Christopher Walsh CO-SPONSORING ORGANIZATION REPRESENTATIVE FROM THE WORLD BANK GROUP SPONSORING ORGANIZATION CHAIR OF THE CONSULTATIVE GROUP Jamal Saghir (The World Bank Group) Katherine Sierra Jamal Saghir, Acting Chair * Until March 31, 2007 ** Until March 31, 2008 ESMAP Communications Strategy Active in 6 regions with more than 170 projects, ESMAP relies on strategic, professionally managed communications to get the most impact from its ongoing activities. ESMAP's donors, client governments, and international partners work at the forefront of 42 energy solutions to alleviate poverty around the world, work that is helping map the road toward a more sustainable and equitable energy future. The results of these projects are disseminated in a variety of forms, through several report types, workshops, symposia, and international conferences, all of which benefit from consultation with the ESMAP communications team. This consultation ensures that messages are appropriately framed to reach target audiences and that sometimes complex information is packaged in accessible language, thus increasing the impact and reach of ESMAP projects. Strategic communications also play a role internally, ensuring efficient cross- regional and cross-sector collaboration. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ESMAP Communications Products 2007 Reader Survey The ESMAP Communications Team produces the following As ESMAP continues to evolve, the types of publications print and electronic products to disseminate to internal and and communications it produces for the general public external constituents the lessons learned from its activities: are frequently reevaluated. ESMAP has always found ways to reach ever larger audiences with its wealth of · FlagshipPublicationsare generally books or reports, energy expertise and publications. To further this effort, produced to the highest quality standards, addressing the a survey of ESMAP publication readers was carried out in key global energy issues for today and the next decade. November 2007 to measure preferences among the types of knowledge products and to help tailor research to reach · Special Reports cover high-interest topics and are and serve interested audiences more effectively. The survey prepared at the completion of ESMAP projects; they are findings will help inform ESMAP's communication strategy thoroughly edited, peer-reviewed internally and externally, for FY09 and beyond. and widely disseminated. Following are some of the survey's key findings. The largest · Formal Reports, the mainstay ESMAP publication, proportion of ESMAP readers are from the private sector, are prepared at the completion of ESMAP projects to government, and academia. The majority of ESMAP readers communicate the work's findings to the general public. They have more than 10 years of experience in the energy sector. are thoroughly edited and internally peer-reviewed. ESMAP's most popular communications products are its flagship publications, its technical papers, and its Web site · TechnicalPapers, also prepared at the completion of (www.esmap.org). The thematic areas of greatest interest ESMAP projects, present technical information on the work to readers of ESMAP communications were energy poverty, targeted to small, very specialized audiences. ranked first, followed closely by renewable energy. Survey respondents clearly preferred electronic communications for · WorkshopProceedings summarize ESMAP-sponsored keeping informed about ESMAP's ongoing or new activities. workshops. Periodic e-mail communication ranked first, followed by the ESMAP e-newsletter and, of course, the Web site. As · Activity Completion Reports contain the results of a consequence of this preference, ESMAP plans to keep ESMAP products and are geared toward the ESMAP and abreast of trends in electronic communications to determine World Bank audience. the most relevant means for informing its public about energy and development issues. 43 · KnowledgeExchangeSeries publications are glossy four-page notes summarizing topics of current interest to ESMAP's investment in electronic outreach has been yielding the energy sector; these may be based either on ESMAP benefits that should increase in years to come. ESMAP activities or on other areas of high interest to the energy and has recently hired an experienced Web editor to oversee development community. Web design and strategy to enhance further its electronic outreach. The communications team is focused on providing · ESMAPeNews, an electronic newsletter, summarizes more interesting content on the Web site and on making recent events in ESMAP and communicates information the site more accessible to users. Improvements in the about new publications, workshops, and other activities. site's visual presentation of information will include use of interesting and compelling photographs and graphics. · www.esmap.org, ESMAP's Web site, offers highlights of work in the thematic areas as well as a complete electronic Recent Developments, 2007-2008 inventory of ESMAP publications. The communications team has changed during the recent period. These changes have put ESMAP in a stronger posi- · The ESMAP Annual Report summarizes its financial tion to promote key global and regional energy operation and project highlights for the year. issues and to serve the energy and development commu- nity. To improve the quality of its communications, ESMAP recently hired a new Communications Officer, a Web editor, and a Publishing Associate. VI. ESMAP (January 2007­June 2008) 44 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ESMAP Financial Review Contributions Received ESMAP received a total of US$13.3 million from its donors in FY08; receipts in FY07 were US$17.2 million. This year, 10 donors, including the World Bank, made cash transfers to ESMAP through trust funds. In addition to previous donors, ESMAP received support from two new donor countries, Australia and Austria, which are providing core (unrestrict- ed) funding to the existing multidonor trust fund (MDTF). Table 6.1 and Figure 6.1 show actual receipts from individual donors for the period FY06­08. Financial Review Table 6.1: ESMAP Receipts, January 2007­June 2008 (US$000s) Total Of which 45 Pledge for Receipts core Country 2006 2007 2008 2009 06-08 % 06-08 % Australia -- -- 2,682 -- 2,682 6.5% 2,682 14.5% Austria (ADA;MoF) -- -- 658 219 658 1.6% 658 3.6% Canada -- 465 -- 0.0 % -- 0.0% Denmark 2,455 -- 1,962 1,956 4,417 10.8% -- 0.0% Finland 205 -- -- -- 205 0.5% 205 1.1% France 467 860 1,052 972 2,380 5.8% 2,380 12.9% Germany 3,408 1,771 2,805 4,959 7,984 19.4% -- 0.0% Iceland -- 300 200 300 500 1.2% 500 2.7% Netherlands -- 9,780 -- 3,193 9,780 23.8% 9,780 53.0% Norway 750 750 750 750 2,250 5.5% 1,125 6.1% Sweden 1,551 -- 1,589 -- 3,140 7.6% 188 1.0% United Kindom* 1,228 3,061 1,180 1,178 5,469 13.3% 948 5.1% World Bank** 468 678 450 100 1,596 3.9% -- 0.0% Grand Total 10,531 17,200 13,329 14,093 41,061 100.0% 18,466 100.0% Source: Donor Administrative Agreement and the Systems, Applications, and Products (SAP). *CEIF contribution to the Environment Unit of US$6.7 million (actual receipts and FY09 pledge) is not included. ** Does not include fee income. Core (Unrestricted) and Thematic Core (Unrestricted) ESMAP Donor Funding Contributions, FY06­08 Core contributions totaled US$5.1 in FY08 and accounted As a percentage of total contributions, core (unrestricted) for 38 percent of total contributions. Australia, Austria, funding over the last three years has averaged 46 percent. France, Iceland, the Netherlands, and Norway contributed Annual comparisons are difficult because of timing irregular- to unrestricted funding (Table 6.2). The United Kingdom ities for some substantial contributions. After adjusting for provided thematic funding (Clean Energy Investment Frame- this factor, however, the share of FY08 contributions that work and SMEs). Thematic funding was also provided by were unrestricted came to 52 percent, compared with 46 Denmark (Renewable Energy) and Germany (Renewable percent in FY06 and 58 percent in FY07. Energy and Energy Efficiency). Sweden and Norway pro- vided funding targeted to Africa. The World Bank provided US$0.45 million in FY08. Figure 6.1: ESMAP Receipts by Source World Bank** 4% United Australia Kingdom 7% 13% Austria (ADA;MoF) 2% Denmark 11% Sweden 8% Finland .02% Norway 5% France 6% 46 Netherlands 24% Germany 19% Iceland 1% Source: Donor Administrative Agreement and SAP. ** Does note include fee income. Table 6.2: Receipts by Type of Funding in FY08 TYPE OF FUNDING AMOUNT (US$ million) Core (Global unrestricted) (Australia, Austria, France, Iceland, Netherlands, Norway) 5.10 Thematic (RE/EE, CEIF) Denmark, Germany, United Kingdom 5.90 Regional (Africa) (Norway, Sweden) 1.88 World Bank 0.45 Total 13.33 Source: Donor Administrative Agreement and SAP. ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Disbursements Disbursements in FY08 totaled US$12.4 million, an increase of US$1.8 million over FY07 (Table 6.3). Project expenditure increased by US$0.75 million; knowledge dissemination ex- penditure by US$0.4 million, reflecting the greater emphasis placed on this part of the business process; and program management costs increased by US$0.6 million. Table 6.3: ESMAP Disbursements and Expenditures (US$000s), January 2007­June 2008 FY06 FY07 FY08 Project Cost $7,445.12 89.6% $9,151.82 85.7% $9,907.37 79.8% Africa 776.44 819.85 2,003.16 East Asia and the Pacific 1,528.45 1,472.70 938.34 Europe and Central Asia 354.45 486.27 1,184.40 Latin America and the Caribbean 957.57 1,692.28 1,282.83 Middle East and North Africa 257.54 868.83 1,119.99 South Asia 217.23 463.95 733.47 Non-Regional VPUs 908.80 720.20 780.10 ESMAP owned-managed 2,444.63 2,627.74 1,865.07 Knowledge Dissemination 139.12 1.7% 430.95 4.0% 842.79 6.8% Program Management & Administration * 723.80 8.7% 1,099.07 10.3% 1,667.31 13.4% Total** $8,308.04 100.0% $10,681.84 100.0% $12,417.47 100.0% Of which: Funded by Donors 7,590.54 9,707.66 11,617.07 Funded from the World Bank Budget 467.50 678.18 450.40 47 Funded from Fee Income 250.00 296.00 350.00 Source: World Bank Business Warehouse, 2008. *The definition of Program Management & Administration has been broadened to include work program development, governance, activity supervision, internal staff training, and administrative support. ** Does not include disbursement by the Environment Unit. . only erence ESMAP in the World, CY2007­FY2008 ref orf print, not ESMAP Donors do New Activities gutter Ongoing Activities Completed Activities Canada Poland Czech Republic The World Bank Ukraine Group (WBG) Slovak Republic Washington, D.C. Hungary Slovenia Croatia Romania Mexico Bosnia and Herzegovina Serbia Bulgaria Montenegro FYR Belize Jamaica Haiti Macedonia Albania Guatemala Honduras S El Salvador Nicaragua G 48 Costa Rica Panama R.B. de Guyana Venezuela Suriname Colombia (part of East Asia and Ecuador the Pacific Region) Kiribati LATIN AMERICA AND Peru Brazil Samoa THE CARIBBEAN Regional activities Bolivia Tonga Fiji New activities Completed activities Paraguay . only Uruguay Chile erence Argentina ref orf GLOBAL ACTIVITIES print, New Ongoing Completed not do gutter ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM MIDDLE EAST AND EUROPE AND NORTH AFRICA CENTRAL ASIA Regional activities Regional activities New activities Ongoing activities Completed activities Completed activities Iceland NetherlandsNorway The Sweden Finland Estonia Russian Federation Denmark Russian Latvia Fed. Lithuania United Germany Poland Belarus Kingdom Ukraine France Kazakhstan Mongolia Moldova Romania Bulgaria Georgia Azerbaijan Uzbekistan Kyrgyz See inset Turkey Armenia Dem. People's Turkmenistan Rep. EAST ASIA AND Tajikistan China Rep.of Korea Rep.of THE PACIFIC Syrian A.R. Morocco Tunisia Lebanon Islamic Rep. Afghanistan Korea Iraq of Iran Regional activities Pakistan Algeria Arab Rep. Jordan Kuwait Nepal Bhutan Ongoing activities Libya of Egypt Bahrain Completed activities Saudi Qatar Bangladesh Arabia U.A.E. India Oman Myanmar Lao Cape Mauritania P.D.R. Verde Mali Niger Eritrea Rep. of Yemen Vietnam enegal Chad Thailand The Gambia Burkina Faso Sudan Cambodia uinea- Nigeria Djibouti Philippines Bissau Guinea Benin Federated States of Micronesia Marshall Sierra Leone Côte Ghana Ethiopia Islands 49 Liberiad'Ivoire Central African Sri Lanka Cameroon Republic Togo Malaysia Palau Somalia Equatorial Guinea Uganda Maldives Kenya Congo Rwanda Kiribati São Tomé and Gabon Príncipe Dem.Rep.of Burundi Seychelles Congo Tanzania Indonesia Solomon Comoros Papua New Guinea Islands Timor-Leste Angola Malawi Zambia SOUTH ASIA Vanuatu Fiji Mozambique Zimbabwe Regional activities Madagascar Mauritius Namibia Botswana New activities Swaziland Ongoing activities South Lesotho Africa Completed activities SUB-SAHARAN AFRICA Regional activities New activities Ongoing activities Completed activities IBRD 32795R5 DECEMBER 2008 This map was produced by the Map Design Unit ofTheWorld Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of TheWorld Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. ANNEX 1 50 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Berlin, March 8­9, 2007 The Consultative Group (CG) for the Energy Trust-Funded efficiency in this context were discussed. Other participants Programs (ETFPs) managed by the World Bank met in Berlin, raised the particular problems of energy access in rural areas, Germany, March 8­9, 2007. Mr. Jamal Saghir, Director for emphasizing that needs and solutions may not be the same Energy, Transport, and Water in the Sustainable Develop- for rural as for urban areas. ment Vice Presidency and Chair of the World Bank's Energy and Mining Sector Board, chaired the meeting. This docu- Africa Energy Access Scale-Up Plan. Mr. Vijay Iyer (Energy ment presents a summary of the meeting's proceedings. Sector Manager, Africa Region, World Bank) described the Proceedings from the Consultative Group Meeting of the World Bank Group Energy Trust-Funded Programs, ESMAP and ASTAE, During Calendar Year 2007 and Fiscal Year January Through June 2008 Welcoming all participants, Mr. Saghir outlined the agenda five tracks of the energy access scale-up plan, focused on for the meeting. The first day, open to CG members and providing energy for basic household needs, for achievement observers, included a wide range of presentations relating to of the MDGs, and for economic growth. The presentation the Clean Energy Investment Framework (CEIF). The second reviewed the proposed approach to harmonizing support at day, with participation limited to active donors, focused on the country level for effective planning and implementation. a review of the implementation activities of ESMAP and the The key role of partnerships in this process and their demands Asia Sustainable and Alternative Energy Program (ASTAE) on developing country ownership and donor commitment during 2006 and on the review by the Technical Advisory 51 were discussed. Mr. Iyer outlined the issues and instruments Committee (TAG) of findings on the ETFPs. for achieving these conditions. The presentation concluded with actions being taken by the World Bank and the Federal The meeting opened with welcoming remarks by co-host Mr. Ministry for Economic Cooperation and Development (BMZ) Konukiewitz, Deputy General Director, Federal Ministry for meeting to be held in Maputo at the end of March 2007. Economic Cooperation and Development (BMZ), Germany. While agreeing on the importance of the energy-access Mr. Saghir made a brief presentation on the three pillars of agenda, the discussion identified the critical need to work the CEIF, and in particular its pillars on energy access scale-up with host countries in developing this plan and for donors for Sub-Saharan Africa and clean energy and climate change. to act in harmony in its delivery. Mr. Konukiewitz welcomed all participants and reviewed the discussions on the Africa­EU Energy Partnership Forum, Lighting Africa: Catalyzing Markets for Modern Lighting. which had been held prior to the CG meeting, and the focus Mr. Anil Cabraal (Lead Energy Specialist, World Bank) and on renewable energy by German development agencies. Mr. Russel Sturm (Sustainable Energy Team Leader, IFC) discussed this proposed program to provide modern lighting The floor was then opened to share perspectives on the productstoSub-SaharanAfricahouseholds.Thepresentation forum and general energy and development issues. Mr. explained the difficulties of rapidly expanding the energy Saghir opened the discussion with an overview of World grid and the urgent need for different mechanisms and Bank and ESMAP roles in supporting energy investments products to provide lighting. Fuel-based lighting is common, and policies in developing countries, from the 1980s to although it is the most expensive and a very ineffective the most recent focus on clean energy, energy security, form of lighting. Emerging lighting technologies might hold and access. Special emphasis was given to the distinction the key to finally lighting Africa. The World Bank Group, between the energy needs for large growing economies, including both the IFC and IDA, are developing an initiative, such as China and India, and those of Sub-Saharan Africa. with ESMAP support, to work with the private industry to The challenges of scaling up renewable energy and energy develop an affordable market of lighting services for the poor. The goal of the initiative is to rapidly scale up access on renewable energy and its linkage to the ETFPs. The to clean, reliable, and affordable lighting and basic energy initiative supports economic energy development, with services for 250 million people across Africa by 2030. This emphasis on renewable energy, increased private-sector program is based on two basic premises: (i) lighting services investments, and increased cooperation with the relevant to the poor are profitable if products are priced accordingly; Norwegian institutions. The ETFPs are seen as instruments and (ii) success requires a new business paradigm. with particular competencies and with complementarities to bilateral cooperation, UN agencies, and the World Bank AnUpdateontheGlobalVillageEnergyPartnership. Ms. Group. Ms. Audbjorg Halldorsdottir (Counselor, Ministry of Sarah Adams (acting CEO, GVEP International) presented Foreign Affairs, Iceland) presented the perspectives from a an update on the existing and planned support to the smaller donor on the leverage obtained in participating in partnership by Sweden, the Netherlands, DFID, and Russia the ETFPs, given their increased cooperation in the field of through ESMAP and by the DFID and the Netherlands directly. sustainable use of natural resources with a specific focus This presentation was an update to last year's presentation, on renewable energy; strengthened collaborations with after which donors asked GVEP to review and revamp its international institutions in the field of renewable energy; business model and to provide a transition strategy. The and increased emphasis on development cooperation with new business model includes a focus on making financial small island development states. and technical assistance services available to SMEs providing energy services to the poor, in close coordination with TAG:2006ReportontheETFPs. Mr. Andrew Barnett, TAG country energy policies and partnerships. The governance moderator, led the discussion on the 2006 review of the structure of GVEP has been reviewed and streamlined. The ETFPs. The presentation reviewed positive areas in the 2006 main donor supporters of GVEP confirmed their commitment work program of ESMAP, including the effective support to the program and the need for GVEP International to in the preparation of the Africa Energy Access Scale-Up move forward with its institutional strengthening, on-the- Plan; the implementation of the regional block grants; ground program design and implementation, and legal and improved communications; and the technical leadership program documentation. by the thematic leaders in the ESMAP core team. The TAG highlighted areas for continued management attention, CEIF Pillars 2 and 3. Mr. Ede Ijjasz (Manager, ESMAP) such as the GVEP and SME program, energy gender, and reviewed the development of the CEIF and the salient household energy. The TAG also summarized the analysis features of the CEIF Action Plan recently prepared by the of ASTAE in very positive terms, given the impact on energy World Bank for discussion by the Board of Directors. The programs in East Asia. Overall, the TAG emphasized that the 52 presentation then focused on Pillar 2 (accelerating the group was very satisfied with the performance of the ETFPs transition to a low-carbon economy) and Pillar 3 (adaptation in 2006. to climate change), as Pillar 1 had been discussed earlier in the day. For Pillar 2, the strategy is to support, on demand The donors provided several comments on the TAG report, from client countries, the development and financing of including: (i) the suggestion to invite the EU as an observer country low-carbon energy strategies for diversification of to the next CG meeting and the possibility of expanding energy sources to encompass a wider menu of lower-carbon interaction with other donors, such as Switzerland and the alternatives; the promotion of efficient energy use; and the United States; (ii) the need for the TAG to include clients' assurance of an energy platform that supports growth and perspectives as part of their review in 2007; and (iii) the desire poverty alleviation. The objectives of the action plan for Pillar of donors to learn as early as possible about new activities 3 are to understand the nature and degree of the risks of to be supported by ESMAP to enhance opportunities to climate change, to build capacity to manage those risks, interact and potentially coordinate their country and regional and to invest in adaptive measures to minimize and mitigate activities. risks. The CG members agreed to have in the minutes of the Berlin, Friday, March 9: meeting a mention of appreciation to Mr. Andrew Barnett, ETFP Business Meeting who informed the meeting about his desire to step down After brief introductory remarks by Mr. Saghir, the second as TAG moderator after 10 years on the team. The CG day of the CG meeting started with presentations and members highly appreciate Mr. Barnett's leadership role discussion on business issues of the ETFPs. during his tenure as TAG moderator. It was agreed that for the selection of the next TAG member, three candidates Donor Perspectives on ETFPs. Mr. Morton Svelle (Policy would be selected by a committee of CG members. The Director, The Norwegian Agency for Development proposed candidates would be interviewed and the final Cooperation (NORAD) presented Norway's new initiative selection completed, in accordance with World Bank Group ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM guidelines for selection of consultants, with a target date The Impact of ESMAP in Africa. Mr. Vijay Iyer (Manager, of June 2007. The United Kingdom, the Netherlands, and Energy, Africa, World Bank Group) summarized ESMAP- Denmark agreed to be part of this committee. supported activities in Sub-Saharan Africa being implemented by the regional operational unit under the ESMAP: 2006 Implementation Report. Mr. Ede Ijjasz regional block grant. The presentation highlighted that the (Manager, ESMAP) presented ESMAP's implementation Africa Region energy portfolio covers all the relevant ESMAP report following the four thematic areas of the 2005­2007 thematic areas. The 2007 portfolio is evolving in response to Business Plan: (i) energy security (including energy efficiency); the clients' and overall energy-sector needs. Emerging areas (ii) renewable energy; (iii) energy poverty (including energy of importance for Africa include: (a) collaborating on large gender); and (iv) governance and market efficiency. The and small hydropower programs; (b) conducting wind and presentation for each theme focused on results and renewable energy resource mapping; (c) enhancing Africa's outcomes of ESMAP activities, with emphasis on operational capacity on think-tank functions; and (d) responding rapidly leveraging, think-tank activities, and knowledge generation to emerging needs in client countries. ESMAP intends to and management. Mr. Ijjasz then presented the advances strengthen its capacity in household energy/biomass to in ESMAP's communications functions, including new ensure adequate attention to these topics. products and the revamped Web site. The financial review illustrated donors' increased support of ESMAP, the regional Other Business. The donors discussed new pledges to ESMAP distribution of resources with special emphasis on Africa, and by current contributors and by potential new donors. The the thematic distribution of resources. Mr. Ijjasz presented meeting also put forward suggestions for next year's CG, a report on progress made in implementing the ESMAP- including maintaining the same two-day format but with a WSP efficiency measures. The presentation concluded with smaller number of presentations and more time for strategic a description of the process for preparing the 2008­2010 discussions and exchange of information by participants. Business Plan, the continued support to the CEIF, and the The CG meeting in 2008 will be hosted by the World Bank implementation of TAG recommendations. Donor comments Group. reiterated the themes discussed after the TAG presentation, including the need for increased focus on energy gender, Washington, DC, February 18, 2008 communications with donors, and distribution of regional The Consultative Group (CG) for the Energy Trust-Funded block grant activities when identified. Discussions also Programs (ETFPs), managed by the World Bank Group, highlighted the need for ESMAP to continue to strike a met in Washington, DC, on February 18, 2008. Mr. Jamal balance between its think-tank function and its operational Saghir, Director for Energy, Transport and Water and Chair leveraging function, as the global energy challenges call for 53 of the World Bank Group Energy and Mining Sector Board, expanded analytical work. chaired the meeting. AddressingtheGrowingSustainableEnergyChallengein Welcoming all participants, Mr. Jamal Saghir outlined the Asia with ASTAE. Ms. Junhui Wu (Energy and Transport agenda for the meeting. The 2008 CG meeting included Sector Manager, East Asia and the Pacific Region, the World 6 sessions focusing on World Bank perspectives in the Bank Group) explained the growing challenges and shifting energy sector, the Technical Advisory Group (TAG) report on paradigms in clean energy and climate change, as well as the ETFPs, the ESMAP and ASTAE annual implementation climate change adaptation in the East Asia and the Pacific reports, regional perspectives on Africa, the ESMAP business Region. The presentation illustrated the achievements of plan, and a closing session. The CG meeting was linked to ASTAE in 2006, particularly in terms of influencing World the World Bank Group Sustainable Development Week, Bank Group operations and achieving results on the ground which included specific Energy Day events and celebration in accord with its mandate. Ms. Wu also outlined the of ESMAP's twenty-fifth anniversary. The week concluded new business plan for 2007­9, which included a further with a brainstorming session that provided a platform for CG concentration of downstream sustainable energy and access members to exchange views on Energy Day, a presentation activities and an expansion of staff in the field to cover more on the Africa energy program of the World Bank Group, and countries and operations. an update from GVEP International. The donors supporting ASTAE confirmed their desire for The meeting opened with welcoming remarks from the the TAG to continue conducting its performance review CG Chair, Mr. Saghir, who also made a presentation on the functions. The meeting discussed the need for continued World Bank Group Perspectives on Energy for Development. interaction and leverage of ASTAE and ESMAP to achieve This presentation focused on the energy crisis in Africa, the both programs' objectives in the East Asia and the Pacific linkage between climate change and energy and energy- Region. consuming sectors, and the shift towards sustainable infrastructure, in the context of emerging global challenges, and (iv) energy markets and governance. The presentation such as rising energy prices and urbanization. In addition, discussed some of the results of activities supported by the presentation included an update on the Clean Energy ESMAP, including the dedicated focus on enhancing energy Investment Framework (CEIF) and the World Bank Group's access in Africa and rural areas, partly through SMEs and new Strategic Framework on Climate Change (SFCC). increased concentration on biomass energy and gender; The presentation also highlighted the importance of the the importance of regional integration in promoting energy transport­energy­climate change nexus, and the need for security; and the scaling up of the energy efficiency agenda; acceleration of clean energy technologies. among others. Mr. Ijjasz then presented the advances in ESMAP's communications functions, including the translation CG members exchanged views on the general issues of of key publications into other languages for wider reach. energy, development, and climate change and their linkages The financial review illustrated donors' increased support of to ESMAP's future agenda. While the donor members ESMAP and the growth of core funding since 2005, which generally agreed that climate change should figure in has been critical for the program's effective functioning. ESMAP's agenda, particularly in the context of adaptation, some expressed concern that this may overshadow other The donors were pleased with ESMAP's accomplishments priority issues such as the energy-access gap and poverty in 2007, particularly the increasing focus on gender and reduction. Mr. Saghir emphasized the importance of Africa. The discussions also highlighted the need for ESMAP maintaining a clear focus on the energy access/poverty to enhance its monitoring and evaluation of projects to alleviation agenda while working in parallel on the energy­ show outcomes and impacts on the ground, as well as, to climate change agenda, as access to energy services will not improve ESMAP's visibility. Comments were made regarding be sustained if climate change issues are not addressed. the linkage between renewable energy and energy poverty, as well as expressing strong interest in the SME program, TAGAssessmentsofETFPstoCG. Mr. Amitav Rath, TAG particularly in promoting energy access. The issue of moderator, led the discussion on the 2007 review of the ETFPs partnerships, for example with WHO on energy-health and presented the TAG report to the CG. The presentation linkages, was raised. One CG member highlighted the need reviewed positive areas in ESMAP's 2007 work program, for increased coordination with the EU in further developing including the marked improvement in the quality and and implementing the CEIF, given the recent adoption of the dissemination of publications, the success of regional block Africa-Europe Energy Partnership. There was strong support grants, and the technical leadership shown by the ESMAP to provide even more emphasis on Africa. core team's thematic leaders. Issues highlighted included 54 the need to continue enhancing ESMAP's M&E system Implementation Report on ASTAE. Ms. Junhui Wu (Energy and and expanding its work on gender. The presentation also Transport Sector Manager, East Asia and the Pacific Region, highlighted the need to finalize some elements of the past the World Bank Group) presented the implementation report business plan, such as the energy access portfolio review, on ASTAE. The presentation illustrated ASTAE's achievements periurban energy, and cooking energy. In addition, the TAG in 2007, particularly in terms of influencing World Bank presented its findings from country visits to evaluate the Group operations and achieving results on the ground in impacts of ESMAP's activities in Mali, Senegal, and Thailand. accord with its mandate. Ms. Wu also outlined ASTAE's Overall, the TAG emphasized its great satisfaction with the new business plan going forward, which included further ETFPs' performance in 2007. concentration on downstream sustainable energy and access activities and an expansion of staff in the field to cover more The donors welcomed the positive assessment by TAG and countries and operations. The presentation ended with an generally agreed with their recommendations. The CG update on ASTAE's funding status. It was recommended that members agreed on the good performance of TAG and the ASTAE increase dissemination of the lessons and successes quality of its reports, although their length and executive of its projects. It was confirmed that ASTAE can continue summaries were highlighted as areas for improvement. The its support of activities in China. The CG and ASTAE donors TAG members agreed to meet with CG members during the confirmed that TAG will continue to include ASTAE as part of Sustainable Development Week to further understand their its review functions. The ASTAE donors, TAG, and the ASTAE expectations. program agreed to meet to review the terms of engagement and prepare a follow-up note. Implementation Report on ESMAP. Mr. Ede Ijjasz (Manager, ESMAP) presented ESMAP's implementation report for 2007 Regional Energy Integration in Africa. Mr. Amarquaye following the four thematic areas of the business plan: (i) Armar Lead Energy Specialist, Energy Anchor) delivered a energy poverty (including gender and SMEs); (ii) energy presentation on regional energy integration and energy security (including energy efficiency); (iii) renewable energy; security in Sub-Saharan Africa. Mr. Armar discussed the ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM need to reduce vulnerability to energy-supply disruptions Other Business. The donors discussed new pledges to in Africa and to provide funds to close the "performance ESMAP. During the closed session, Mr. Saghir informed the gap." Regional, bilateral, and multilateral partnerships were CG members of the departure of Mr. Ede Ijjasz as Manager of identified as crucial to achieving this goal by facilitating ESMAP to take up the position of Sustainable Development cross-border energy integration. Mr. Armar presented the Manager for the China and Mongolia department of the West Africa Power Pool (WAPP) as an example of a successful World Bank Group. Mr. Saghir described the competitive regional partnership that could be emulated across the selection process for the new Program Manager and invited continent. CG members to participate in the short-listing and interview committees. ESMAP Annotated Outline of New Business Plan. Mr. Ede Ijjasz (Manager, ESMAP) presented ESMAP's annotated Closing Session. At the end of the Sustainable Development outline of its new business plan (BP), which was well received Week, the CG members met for an open exchange of views as a good first step by the CG members, who appreciated on the week's events. Mr. Vijay Iyer, Sector Manager for the the participatory approach to preparing the BP. Some donors Africa regional energy operational unit, presented the work agreed with the matrix structure of the business plan, program and achievements of the Africa energy team. Sarah including the four pillars of energy for growth, energy for Adams, CEO of GVEP International, presented an update on MDGs, climate change, and energy security, as well as the their work program. cross-cutting focal areas of renewables, energy efficiency, household energy, gender, PPPs and SMEs, and technology. Other participants were of the opinion that climate change could also be seen as a cross-cutting area in the context of ESMAP's mission. In the discussion, it was requested to clarify in the business plan ESMAP's possible role, if any, in accelerating development and commercialization of clean energy technologies. It was reiterated that ESMAP shall keep access and Africa the priorities of business. CG members expressed their interest in the rapid finalization of the business plan. Suggestions included leaving some flexibility in the business plan, laying out partnership and M&E implementation plans, 55 and discussing organizational and staffing issues. The need for stronger linkages with IFC and for support to bilateral programs was mentioned. One of the donor members referred to ESMAP's mission and pointed to the limitations in funding opportunities, for example regarding renewable energy. It was proposed and agreed that the business plan period will be extended to cover five years: 2008 to 2013. It was agreed that CG members could still submit written comments until March 15, 2008. Several donors welcomed the suggestion of an extraordinary and informal CG meeting for discussion of a revised draft of the business plan later in 2008. One donor suggested organizing this back to back with a meeting of the Advisory Group of the EU Energy Initiative (EUEI). ESMAP agreed to consider this proposal. Reporting Cycle. It was agreed that ESMAP and ASTAE will report to donors and produce annual reports on a July to June cycle, replacing the past practice of reporting on a calendar- year basis. This will allow alignment with the World Bank Group fiscal year cycle and facilitate reporting to the CG. However, the CG meeting will maintain the tradition of holding its annual meetings in spring of the calendar year, to combine, when appropriate, with the World Bank Group Energy Week. ANNEX 2 56 ESMAPCY2007-FY2008 ANNUAL REPORT ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM New, Ongoing and Completed Activities During Calendar Year 2007 and Fiscal Year January Through June 2008, by Region NEW ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER AFRICA Fragile States Support Facility Regional Malcolm Cosgrove-Davies Implementation of Priority G&T Projects Regional Robert Schlotterer Electrification Experiences in Africa Regional Dana Rysankova Electricity Utility Support Facility (Benchmarking and TA support Regional Prasad Tallapragada Capacity Building among Small-Scale Off-Grid Energy Suppliers Burkina Faso Koffi Ekouevi Scaling up SME Participation in Rural Electrification in Guinea Guinea Dana Rysankova Fragile States in West Africa: Towards an Integrated Strategy for Electricity Guinea-Bissau Fanny Missfeldt-Ringius Regulating Electricity Exports and Imports in SADC Countries: 57 Roles for National Regulators Regional Wendy Hughes South Africa Low Carbon South Africa Xiaodong Wang Integrating SMEs in Tanzania's Rural Energy Initiatives Tanzania Dana Rysankova Strengthening Small-Scale Offgrid Energy Suppliers Zambia Xiaodong Wang Sub-Saharan Africa Refinery Sector Development Regional Eleodoro O. Mayorga Alba East Asia and the Pacific China Low Carbon China Ranjit Lamech Urban Transport China Shomik Raj Mehndiratta Survey & Knowledge Sharing on Energy Conservation China Robert P. Taylor Assessing Potential for Windfarm Development Timor Leste Frederic Asseline Europe and Central Asia Building Up Regulatory Capacity for Renewable Energy Sources Bulgaria Istvan Dobozi Global Economics of Connecting the Poor to Gas Global Franz Gerner Impact of Rural Electrification on Development Global Shahidur R. Khandker Global Energy Assessment background energy papers Global Amarquaye Armar Public Procurement of Energy Efficiency Global Jas Singh Preparation of Clean Energy Technology Global Gary Stuggins Risk in Power Systems Planning Global Soren Krohn Accelerating Clean Energy Tech (Phase II) Global Jonathan Coony Grid Connected Renewable Energy Policy Reform Global Soren Krohn NEW ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Global continued Dissemination of Findings of Work on Communities Impacted by Coal Global John E. Strongman Accelerating New Clean Energy Technology Global Jonathan Coony Scaling Up Demand Side Energy Efficiency Improvements through Opportunities Under Programmatic CDM Global Ashok Sarkar ESMAP: World Forum on Energy Regulation Global R. Anil Cabraal Roundtable on & Bridging the Energy Efficiency Divide: Implementation Models and Best Practices Global Ashok Sarkar Study on Equipment Prices in the Energy Sector Global Dirk Pauschert Latin America and the Caribbean A Social Policy Framework for Electricity Service in Argentina Argentina Luis Alberto Andres Construction of GHG Abatement Cost Curves for Brazil Brazil Christophe de Gouvello Policy Options for Renewables Colombia Walter Vergara Alternative Energy and Bioenergy Colombia Todd M. Johnson Identifying Traditional and Non-Traditional Mechanisms for Reaching the Poor in Infrastructure Services Regional Luis Alberto Andres Benchmarking Analysis of Electricity Distribution Center Regional Luis Alberto Andres Assessment and Quantification of the Impact of Global Warming in the Power Sector of Peru Peru Walter Vergara Overcoming Barriers to Hydropower Investment in Peru Peru Susan V. Bogach Middle East and North Africa Egypt Energy Pricing Study Egypt Anna Bjerde Egypt Commercial Wind Development Framework Egypt Anna Bjerde Iran Pricing and Reform Iran Vladislav Vucetic Iran Renewable Energy Iran Vladislav Vucetic 58 MNA Regional Energy Efficiency Study Regional Alexander Kremer Ministerial Roundtable on Regional Sustainable Energy in North Africa Regional Pierre Audinet Syrian Electricity Sector Strategy Syria Anna Bjerde South Asia Study on Energy Savings Opportunities in Large Buildings Afghanistan Abdul Wali Ibrahimi The Poverty Impact of Rural Electrification: Evidence from Bangladesh Bangladesh Raihan Elahi Introducing Energy-efficient & Cleaner Technologies and Practices in the Brick-making Sector in Bangladesh Bangladesh Sameer Akbar Capacity Building Initiatives for Maharashtra State Electricity Transmission Company Ltd. India Ashish Khanna Assessing the Social Impacts of Rural Energy Services Nepal Sudeshna Ghosh and Mudassar Imran Energy efficiency Nepal Jeremy Levin Removing Obstacles to Nepal's Hydropower Development Nepal Judith Plummer and Mudassar Imran Support for the Development of a Large-Scale Energy Efficiency Pakistan Ashok Sarkar Dissemination Package Regional Julia Fraser, Waqar Haider, Pedro Sanchez, and Mudassar Imran ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ONGOING ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Africa Utility Performance Regional Prasad Tallapragada Petroleum Access (Part I) (FY06/Oil Security and Logistics Study for Rwanda and Uganda Regional Paivi Koljonen Indicative Generation & Transmission Expansion Regional Samuel A. O'Brien-Kumi Power SIL 4 Uganda Fanny Missfeldt-Ringius Modern Biofuels Assessment Mozambique Boris Enrique Utria Outreach on Africa Energy Access Regional Kyran O'Sullivan ESMAP Productive Uses of Electricity Regional Mohua Mukherjee Lighting Africa - Program Management Regional R. Anil Cabraal Efficiency Study of Downstream Petroleum Markets in Sub-Saharan Africa Regional Mourad Belguedj Lighting Africa - Development Market Regional R. Anil Cabraal Lighting Africa - Part V: Web Regional R. Anil Cabraal Capacity Building among Small-Scale Off-Grid Energy Suppliers Cameroon Koffi Ekouevi Decentralized Energy Services - Cameroon Cameroon Marlon Lezama Decentralized Energy Services - Kenya Kenya Marlon Lezama East Asia and the Pacific China Sustainable Coal Sector Development China Jianping Zhao Municipal Heating Reform and Regulation China Gailius J. Draugelis Rural Energy Project Mongolia Salvador Rivera Mitigating Sector Reform & Tariff Adjustment Mongolia Salvador Rivera Mongolia Urban Heat Pricing & Regulation Mongolia Gailius J. Draugelis China Energy Efficiency Policy, Regulation and Institutional Framework Study China Leiping Wang Energy Efficiency Financing China Leiping Wang East Asia Regional Energy Flagship Study Regional Ranjit Lamech Vietnam: Gas Master Plan Review Vietnam Richard Spencer Biomass Cogeneration Development China Ximing Peng 59 Cleaner and More Efficient Coal Fired Power Generation Knowledge China Ranjit J. Lamech Capacity Building among Small-Scale Off-Grid Energy Suppliers Mongolia Salvador Rivera SMEs in Decentralized Energy Services in Lao PDR Program Laos Jie Tang SMEs in Decentralized Energy Services in Cambodia Program Cambodia Rebecca Sekse Europe and Central Asia Affordable Gas-fired District Heating in Ukraine Ukraine Peter Johansen Thermal Power Plant Rehab: Assessment of Needs, Costs and Benefits Ukraine Dejan Ostojic Supporting Electricity Market Operations Turkey Sameer Shukla Establishing Regulatory Framework for Renewable Energy Slovakia Istvan Dobozi South East Europe Gas Market Development Study Regional Franz Gerner Global G+5 Countries Energy Efficiency Indicators Project Global Ashok Sarkar Regional Power Sector Integration Potential Global Jonathan Coony Improving the Impacts of Oil, Gas and Mining (OGM) Development on Women and Youth Global Adriana Eftimie Energy Efficiency Needs and ToolKit Assessment Global Ashok Sarkar Grid-Connected Renewable Energy Topical Briefs Global R. Anil Cabraal Lighting Africa Part IIIa- Validation of Solar Lantern Technical Performance Specification Global R. Anil Cabraal Decentralized Energy Services for IDA Countries Global Marlon Lezama ESMAP: Decentralized Energy Services for IDA Countries - Global Global Marlon Lezama ONGOING ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Latin America and the Caribbean Peru Small Hydropower Peru Susan V. Bogach Brazil Low Carbon Brazil Christophe de Gouvello Mexico Low Carbon Mexico Todd M. Johnson Strengthening Small-Scale Offgrid Energy Suppliers Bolivia Susan Bogach Dissemination of Improved Cooking Stoves Haiti Christophe de Gouvello TA for Improved Small-Scale Energy Supply Nicaragua Fernando Lecaros Small and Medium Enterprises for Energy Services Delivery Peru Susan Bogach Off-grid Rural Electrification SME Program Bolivia Dana Younger Assessment of Energy Efficiency Brazil Todd M. Johnson Middle East and North Africa Structuring the New Energy Efficiency Agency Morocco Pierre Audinet Design and Application of Time of Use Tariffs and Load Management Egypt Anna Bjerde Review of Energy Management Policy Tunisia Silvia Pariente-David South Asia Renewable Energy Investment Climate India Mikul Bhatia Improving Health of Women and Children through Renewables and Efficient Cookstoves Regional Priti Kumar Improving Rural Electricity Services through Renewable Energy based Distributed Power Generation India Mikul Bhatia Best Practice of Coal fired Power Plant Rehabilitation - Energy Efficiency Improvements by Operations and Maintenance Practice Changes India Mikul Bhatia Improving State Level investment Planning & Regulation to Increase Energy efficiency - India Coal Fired Generation Rehabilitation Project India Mustafa Zakir Hussain India Low Carbon India Kseniya Lvovsky 60 COMPLETED ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Africa Facility for the follow up of Africa Energy-Poverty Workshops Regional Koffi Ekouevi Impact on the Poor of the Electricity Sector Reform in the Kingdom of Lesotho Lesotho Gilberto de Barros Power Sector Reform in Africa: Assessing the Impact on the Poor and Influencing Policy Decisions Africa Ananda Covindassamy Women's Energy Enterprise: Developing a Model for Mainstreaming Gender into Modern Energy Service Delivery Ghana Kofi-Boateng Agyen Development of a Regional Power Market in West Africa Regional Amarquaye Armar Niger Energy-Poverty Action Plan (GVEP) Niger Michel E. Layec Energy-Poverty Action Plan (GVEP) Cameroon Emmanuel Ngankam ESMAP Energy Sector Assessment Mauritius Michel E. Layec Roundtable with Africa Energy Ministers (FEMA) Southern Africa Arun P. Sanghvi Energy Sector Strategy for Poverty Reduction and Growth Djibouti Douglas Barnes Africa Rural and Renewable Energy Initiative (AFRREI) Regional Douglas Barnes Mainstreaming Low-Cost Innovations in Electricity Distribution Networks in Africa Regional Ananda Covindassamy ESMAP Multisector Impact Rural Electrification Senegal Christophe de Gouvello Multisectoral Operational Plan to Maximize Poverty Reduction Impact of Rural Electrification in Senegal Senegal Christophe de Gouvello Energy Sector Strategy Ghana Subramaniam V. Iyer Energy Access Action Plan for Africa Regional Kyran O'Sullivan Energy for Rural Transformation Uganda Malcolm Cosgrove-Davies ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM COMPLETED ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Africa continued Design and Pilot Testing of Capacity Building Product line for SME Utility Service Providers in West Africa Regional Amarquaye Armar Rural and Renewable Energy Regional Malcom Cosgrove-Davies Lagos Strategy for Economic Development and Poverty Nigeria Deepali Tewari Energy Policy Part II (FY06) Ghana Xiaodong Wang Zambia Energy Poverty Action Plan (GVEP) Zambia Xiaodong Wang Lessons from Nigeria Development of LPG Markets in Four Additional Countries Nigeria Mourad Belguedj Tariff Policy Guidance Rwanda Malcolm Cosgrove-Davies Energizing Rural Transformation Tanzania Arun P. Sanghvi Sustainable Water and Hydro Energy for Africa Regional Daryl Fields Infrastructure Services SIM Malawi Paivi Koljonen Promoting Productive Uses of Electricity in Rural Areas Regional Ralph Karhammar Expanding SME Outsourcing Opportunities from Utility Sector Reform - A Survey of Eastern and Southern Africa Regional Amarquaye Armar ESMAP Regulatory Review (FY07) Regional Prasad Tallapragada ESMAP Technical and Financial Review of NPA (FY07) Sierra Leone Paivi Koljonen Lighting Africa Part IIIb: Specification for LED Lighting Systems Regional R. Anil Cabraal East Asia and the Pacific Greater Mekong Sub-region Power Trade Strategy Meeting Regional Mohinder P. Gulati China: Policy Advice on Implementation of Clean Coal Technology projects. Phase II China Masaki Takahashi Scoping Study for Voluntary Green Electricity Schemes in Beijing and Shanghai China Noureddine Berrah Cambodia - Renewable Energy Action Plan Cambodia Rebecca C. Sekse Philippines - Village Power Fund and Incubator for Renewable Energy Enterprises Philippines Selina Wai Sheung Shum Rural Electrification Policy Development and Conceptual Design of Energy Services Delivery Projects to Improve Rural Health and Education Service Delivery Papua New Guinea Antonie De Wilde Vietnam - Policy Dialogue Seminar and New Mining Code Vietnam Charles A. Husband 61 China Coal Bed Methane Strategy China Ashok Sarkar Development of East Asia and the Pacific Energy Business Strategy Regional Tae Yong Jung Sustainable and Efficient Energy Use to Alleviate Indoor Air Pollution in Poor Rural China China Douglas Barnes Development of Pro-poor National Heat Pricing and Billing Policy China Robert P. Taylor Policy Reform for Enhancing Rural Electricity Access Indonesia Migara Jayawardena Infrastructure Services to the Rural Poor Mongolia Salvador Rivera Green Energy IPP (GRIPP) Philippines Sandeep Kohli National Rural Electrification Planning East Timor Leiping Wang Fuel Substitution Analysis Indonesia Migara Jayawardena GEF Rural Electrification & Transmission Cambodia Rebecca C. Sekse Policy Framework for Electrification and Rural Access Indonesia Migara Jayawardena Training for Access to Renewable Energy Regional Antonie De Wilde Indonesia Overall Energy Security Policy Indonesia Leiping Wang Global Village Energy Partnership (GVEP) Asia Initiative Regional Antonie De Wilde Financing for Small Scale Power Supply and Decentralized Systems Cambodia Antonie De Wilde Shanghai Energy Conservation Promotion Project China Ximing Peng China: Enabling Universal Access to Electric Power China Ximing Peng Diesel Pollution Reduction Strategies for Cities Regional Jitendra J. Shah Implementation Strategy for China's Energy Security Objectives China Noureddine Berrah COMPLETED ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Europe and Central Asia Power and Poverty: Lessons from Energy Sector PSIAs in ECA Regional Julian A. Lampietti Introducing the Concepts of ESCOs to Belarus Belarus Maha J. Armaly TA for Establishing a Water-Energy Consortium in Central Asia Regional Nikolay Nikolov Multilateral Energy Sector Assistance to the EU Accession Countries Regional Bjorn Hamso Energy Sector Regulation Poland Rachid Benmessaoud Strategy to Expand Gas Distribution and Utilization in Turkey Turkey Sameer Shukla Provision of Energy Services to the Poor in Tajikistan Tajikistan Raghuveer Y. Sharma Impact Analysis of Policies to Increase Renewable and Low Carbon Energy Use Serbia and Montenegro Varadarajan Atur Development of Power Generation in South East Europe: Implications for Investments in Environmental Protection Regional Istvan Dobozi Innovative Energy Efficiency Financing Mechanism Poland Peter Johansen Women in Mining Chance for Better Life Workshop Poland John E. Strongman Lithuania - Heating Supply to Small Cities/Towns Lithuania Gary Stuggins Natural Gas Sector Restructuring and Regulatory Reform Azerbaijan Alan F. Townsend Global Energy Efficiency Investment Forum Global Ashok Sarkar ESMAP: Development Marketplace Global Ede Jorge Ijjasz-Vasquez Rural Electrification BP Dissemination - Session at Energy Week Unfunded Work Global Douglas Barnes Issues in Energy Security Global Jonathan Coony Road Map for Scaling up Modern Energy Services and Clean Energy Global R. Anil Cabraal ESMAP: Experiences with Oil Funds Global Silvana Tordo Developing a Sectoral Energy Poverty Index Global Arun P. Sanghvi Capacity Building and Policy Assessment in Indoor Air Pollution Global Todd M. Johnson Assessing the Impacts of Energy Sector Reform on the Poor Global Dominique M. Lallement 62 Risk Assessment Methods for Power Utility Planning Global Tae Yong Jung Gender and Energy Resource Center Global A. Waafas Ofosu-Amaah Energy Modules for Multitopic Household Surveys Global Douglas Barnes ESMAP: Review of WB Energy Efficiency activities Global Ashok Sarkar Energy Efficiency Good Practice Note Global Ashok Sarkar G-8 Clean Investment Framework on Energy Efficiency Global Ashok Sarkar Grid Connected Renewable Energy Policy Forum Global Soren Krohn Global Trade of Biofuels Global Masami Kojima Scaling Up Demand Side Energy Efficiency Improvements through Opportunities Under Programmatic CDM Global Jonathan Coony Developing Regional Clean Air Networks Global Tae Yong Jung Connecting the Poor to Natural Gas Global Douglas Barnes Best Practices for Grid Electrification Phase II Global Douglas Barnes Energy Services for the MDGs Global Ede Jorge Ijjasz-Vasquez Meeting the Energy Needs of the Urban Poor: The Case of Electrification (Peri-Urban Electrification Workshop) Global Douglas Barnes Developing Financial Intermediation Mechanisms for Energy Efficiency Projects in Brazil, China and India. Global Chandrasekar Govindarajalu Accelerating New Clean Energy Technology Global Jonathan Coony ESMAP: World Forum on Energy Regulation Global R. Anil Cabraal Corruption issues in the Energy Sector Global Ijjasz-Vasquez Regional Energy Trade Global Raghuveer Y. Sharma Dissemination of Findings of Work on Communities Impacted by Coal Global John E. Strongman Gender and Energy Global Amarquaye Armar ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM COMPLETED ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Global continued Gender in Energy Workprogram Global Douglas Barnes Source Apportionment of Fine Particulates in Developing Countries Global Todd M. Johnson Review of ESMAP's Energy Sector Reform & Market Development Work Global Tae Yong Jung Designing Strategies and Instruments to address Power Projects Stress Situations Global Jonathan Coony Roundtable of Power Investors for Working Group 3: Governance Standards/ Code of Conduct/Performance Benchmarks for Electric Power PPPs Global Amarquaye Armar Building Up on Energy Efficiency Institutional Best Practices Global Ashok Sarkar Oil Price Volatility Global Masami Kojima Roundtable on Bridging the Energy Efficiency Divide: Implementation Models and Best Practices Global Ashok Sarkar Win-Win: Demand Side Management Options in Developing Countries Global Luiz T. A. Maurer GVEP - GAPFund Global Douglas Barnes Clean Investment Framework/OECD Analysis Global Soren Krohn Study on Equipment Prices in the Energy Sector Global Dirk Pauschert Latin America and the Caribbean Improving Energy Security in Uruguay Uruguay Philippe Durand Renewable Energy Systems in Peruvian Amazon Region (RESPAR Project) Peru Xiaodong Wang National Biomass Program Bolivia Philippe Durand Haiti: Scoping Study for Household Energy Strategy Haiti Clemencia Torres Honduras: Petroleum Exploration and Management Honduras Marc L. Heitner Policy & Strategy for the Promotion of Renewable Energy Resources in Nicaragua Nicaragua Clemencia Torres Colombia: Natural Gas: Bases for a Development Strategy of the Sector Colombia Dominique Lallement LCR - Low Income Energy Assistance Regional Quentin T. Wodon LCR Subsidy Review Study Regional Dana Rysankova Honduras: New Approaches for Delivery of Energy Services in Rural Areas (GVEP) Honduras Dana Rysankova Energy Solutions for the Poor Marginalized Communities 63 (in the framework of GVEP follow up) Bolivia Dana Rysankova Village Energy Solutions for Remote Areas of Brazil. Specific Support to the Implementation Strategy of the Universal Access Program and to the National Energy Action Plan (GVEP) Brazil Christophe de Gouvello Energy Strategy Study Ecuador Susan V. Bogach Biodiesel Study Brazil Todd M. Johnson Review of Renewable Energy Policy and Regulatory Framework Colombia Walter Vergara Benchmarking of the Electricity in LCR Regional Luis Alberto Andres Monitoring & Evaluation - Energy Project Regional Susana M. Sanchez Energy, Environment and Population Regional Eleodoro O. Mayorga Alba BR: Energy Sector Strategy Brazil Enrique O. Crousillat Power Sector Strategy Paraguay Lucio Monari Development of Regional Capabilities in Three States of the Republic to Foster Energy Projects for Rural Areas, Focusing on Renewable Energy (GVEP) Mexico Gabriela Elizondo Azuela Peru Rural Electrification Peru Susan V. Bogach Energy Strategy Regional Enrique O. Crousillat Honduras Energy Sector Study Honduras Lucio Monari Southern Cone Gas Integration Regional Eleodoro O. Mayorga Alba Regulatory Issues of Off-Grid Energy Service Delivery as Part of National Rural Electrification Strategies Regional Clemencia Torres Innovative Financing Mechanism for Energy Efficiency in Mexico Mexico Charles M. Feinstein COMPLETED ACTIVITIES ACTIVITY COUNTRY/REGION TASK MANAGER Middle East and North Africa Yemen Gas Incentive Framework Study Yemen Franz Gerner Hydrocarbon Revenue Generation and Management Regional Pierre Audinet Egypt: Natural Gas Distribution in Egypt Egypt Anna Bjerde Combined Cycle Gas Turbines Workshop Egypt Anna Bjerde Oil Products Sector Liberalization Morocco Pierre Audinet Social Safety Net for LPG Subsidy Reduction Morocco Pierre Audinet Energy Efficiency Policy Morocco Pierre Audinet Energy Sector Development/Energy Reform: Social and Environmental Effects on the Poor Morocco Silvia Pariente-David Ministerial Roundtable on Regional Sustainable Energy in North Africa Regional Pierre Audinet Regional Workshop in Sidi Bernoussi Morocco Noureddine Bouzaher Iran Energy Sector (Power Sector Note) Iran Anna Bjerde Renewable Energy Regulation Morocco Pierre Audinet Determination of Gas Pricing for Poor Households in Egypt Egypt Franz Gerner West Bank and Gaza Energy Sector Review Regional Somin Mukherji Demand Management Workshop Egypt Eric Groom South Asia Exploring Opportunities for Improving Rural Energy Access Afghanistan Mudassar Imran Regional Energy Poverty Regional Andrea Ryan Rizvi Clean Investment Framework- India India Soren Krohn Improving Indoor Air Quality for Poor Families: Proposal for a Controlled Experiment in Bangladesh Bangladesh Susmita Dasgupta India Energy Security India Alan F. Townsend Kabul Household Energy Survey (SAR Regional Grant) Afghanistan Michael Haney 64 Towards Formulating a Rural Energy Strategy Bangladesh Douglas Barnes Enhancing Access and Rural Electrification - Costs & benefits, and Willingness to Pay Pakistan Waqar Haider Commercialization of Improved Stoves India Douglas Barnes Bhutan Hydro Exports/Hydropower Sector Study: Issues & Options Bhutan Pedro E. Sanchez Gamarra Energy Trade Regional Vladislav Vucetic Private Renewable Power Generation Studies/Private Sector Small-scale, Grid-connected Renewable Power Generation - Review of Experience Sri Lanka Mudassar Imran Regional Power Trade Regional Vladislav Vucetic Opportunity for Women in Renewable Energy Technology Utilization in Bangladesh (Phase II) Bangladesh M. Iqbal ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM 65 ANNEX 3 66 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Reports Published During Calendar Year 2007 and Fiscal Year January Through June 2008 FLAGSHIP REPORTS Number/ Year Country/Region Report Title Author Date ISBN-0-8213-6633-5 Regional ECA People and Power: Electricity Sector Reforms and the Poor in Europe and Central Asia. Published by ESMAP under EXTOP's Directions in Development series. Lampietti/Sudeshna/ Branczik 07/07 ISBN-978-1-933115-43-6 Global The Challenge of Rural Electrification: Strategies for Developing Countries. Published jointly with RFF. Barnes 11/07 ISBN-978-8213-7304-0 Global Financing Energy Efficiency: Lessons from Brazil, China, India, and Beyond. Published by ESMAP under EXTOP's stand-alone book series. Taylor/Govindarajalu/ Levin/Meyer/Ward 02/08 67 ISBN-978-0-8213-7481-8 Global Accelerating Clean Energy Technology Research, Development and Deployment. Lessons from Non-energy Sectors. Published by ESMAP under EXTOP's World Bank Working Paper series, No. 138. Avato/Coony 05/08 SPECIAL SERIES REPORTS Number/ Year Country/Region Report Title Author Date 001/07 Global Risk Assessment Methods for Power Utility Planning RENEWABLE ENERGY THEME Hertzmark 03/07 002/07 China Sustainable and Efficient Energy Use to Alleviate Indoor Air Pollution in Poor Rural Areas in China ENERGY POVERTY THEME Baris/Ezzati 05/07 003/07 Nicaragua Unlocking Potential, Reducing Risk: Renewable Energy Policies for Nicaragua RENEWABLE ENERGY THEME Mostert 05/07 004/07 Global Considering Trade Policies for Liquid Biofuels RENEWABLE ENERGY THEME Kojima 07/07 FORMAL REPORTS Number/ Year Country/Region Report Title Author Date 325/07 Turkey Turkey's Experience with Greenfield Gas Distribution since 2003. Shukla 05/07 326/07 China China - Coal Bed Methane Strategy. Zhao 07/07 327/07 Yemen Republic of Yemen: A Natural Gas Incentive Framework. Gerner 12/07 328/07 Global Greenfield Gas Distribution: Cross-country Experience. Shukla 12/07 330/08 China China: Development of National Heat Pricing and Billing Policy. Meyer 03/08 332/08 Regional AFR Maximizing the Productive uses of Electricity to Increase the Impact of Rural Electrification Programs. de Govello/Durix 04/08 335/08 Bangladesh Improving Indoor Air Quality for Poor Families: A Controlled Experiment in Bangladesh. Dasgupta/Huq/ Khaliquzzaman/ Wheeler 04/08 TECHNICAL REPORTS Number/ Year Country/Region Report Title Author Date 109/07 Senegal Multisectoral Operational Plan to Maximize Poverty Reduction Impact of Rural Electrification in Senegal. French only. de Gouvello 05/07 110/07 Djibouti Electricity Cost Reduction Assessment and Energy Access Sector Strategy for Djibouti. Hamaide 2/07 111/07 Peru Solar-Diesel Hybrid Options for the Peruvian Amazon: Lessons Learned from Padre Cocha. Wang 04/07 112/07 Haiti Haiti: Strategy to Alleviate the Pressure of Fuel Demand on National Woodfuel Resources. English/French. Torres 04/07 113/07 Regional LCR Integration Strategy for the Southern Cone Gas Networks. Mayorga-Alba 05/07 114/07 Turkey Turkey: Gas Sector Strategy Note. Shukla 05/07 115/07 Bolivia Bolivia National Biomass Program Report on Operational Activities. Durand 05/07 116/07 Uruguay Strengthening Energy Security in Uruguay. Durand 05/07 117/07 Cameroon Plan d'Action National Energie pour la Réduction de la Pauvreté. French only. Ngankam 06/07 68 118/07 Global Meeting the Energy Needs of the Urban Poor: Lessons from Electrification Practitioners. Rojas/Lallement 06/07 119/07 Bhutan Bhutan Hydropower Sector Study. Sanchez 10/07 120/07 Global Scaling Up Demand­Side Energy Efficiency Improvements through Programmatic CDM. Figueres/Philips 11/07 121/07 Global Technical and Economic Assessment of Off-grid, Mini-grid and Grid Electrification Technologies. Energy & Mining Sector Board 12/07 KNOWLEDGE EXCHANGE SERIES Number/ Year Country/Region Report Title Author Date 9 Mexico Hedging Mexico's Electricity Bets: The Case of Renewable Energy Farchy 06/07 11 China Scaling up Renewable Energy in China: Economic Modeling Methods and Application. Spencer/Meier/ Berrah 06/07 ACTIVITY REPORTS* Number/ Year Country/Region Report Title Author Date 011/07 Regional EAP Philippines Village Power Fund and Incubator for Renewable Energy Enterprise. Shum 03/07 012/07 Regional AFR Ghana Energy Policy Economic and Sector Work Papers: The Electricity Sector. Iyer 12/07 * Activity Reports are published for reporting and fiduciary purposes only. They are not available for public distribution or web posting, as some of the contents may be of a confidential nature. ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ADMINISTRATIVE REPORTS Number/ Year Country/Region Report Title Author Date - Global ESMAP 2006 Annual Report ESMAP 09/07 69 70 ESMAP CY2007-FY2008 ANNUAL REPORT ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ABBREVIATIONS AND ACRONYMS ABG annual block grants LNG liquefied natural gas AfDB African Development Bank LPG liquefied petroleum gas AFR Africa Region of the World Bank Group MDG Millennium Development Goal AFTEG The World Bank Group Africa Energy Group MDTF multidonor trust fund AM advance market MNA Middle East and North Africa Region of the ASTAE Asia Sustainable and Alternative Energy World Bank Group Program M&E monitoring and evaluation BMZ Federal Ministry for Economic Cooperation and NGO nongovernmental organization Development, Germany OECD Organization for Economic Co-operation CASAREM Central Asia­South Asia Regional Electricity and Development Market Project O&M operation and maintenance contract CBM coal bed methane PPPs public-private partnerships CDM clean development mechanism PV Photovoltaic CEIF Clean Energy Investment Framework1 RE renewable energy CG Consultative Group RLIA Rural Lighting Initiative for Africa CMM coal mine methane SAR South Asia Region of the World Bank COCPO Oil, Gas and Mining Policy Division Group of the World Bank Group SDN Sustainable Development Network of the DFID U.K. Department for International World Bank Group Development SFCC Strategic Framework on Climate Change EAP East Asia and the Pacific Region of the World SME small and medium enterprise Bank Group SWAp sector wide approach ECA Europe and Central Asia Region of the World TAG Technical Advisory Group Bank Group WBG The World Bank Group 71 EE energy efficiency EEfSD Energy Efficiency for Sustainable Development ESCO energy service company ESMAP Energy Sector Management Assistance Program ETFP energy trust-funded programs ETWD Energy, Transport, and Water Department of the World Bank Group FEMA Forum of Energy Ministers in Africa G&T generation and transmission GAPFund Global Village Energy Partnership Action Program Fund GEF Global Environment Facility GTZ German Agency for Technical Cooperation GVEP Global Village Energy Partnership HGP Human Genome Project IDA International Development Association IDER Instituto de Desenvolvimento Sustentável e Energias Renováveis IEG Internal Evaluation Group of the World Bank Group IFC International Finance Corporation IFI international finance institution IPCC Intergovernmental Panel on Climate Change LCR Latin America and the Caribbean Region of the World Bank Group 72 ESMAP CY2007-FY2008 ANNUAL REPORT Energy Sector Management Assistance Program (ESMAP) Purpose The Energy Sector Management Assistance Program is a global knowledge and technical assistance partnership ad- ministered by the World Bank Group and sponsored by bilateral official donors since 1983. ESMAP's mission is to assist clients from low-income, emerging, and transition economies to secure energy requirements for equitable economic growth and poverty reduction in an environmentally sustainable way. ESMAP follows a three-pronged approach to achieve its mission: think tank/horizon-scanning, operational leveraging, and knowledge clearinghouse (knowledge generation and dissemination, training and learning events, workshops and seminars, conferences and roundtables, website, newsletter, and publications) functions. ESMAP activities are executed by its clients and/or by World Bank Group staff. ESMAP's work focuses on three global thematic energy challenges: · Expandingenergyaccessforpovertyreduction; · Enhancingenergyefficiencyforenergysecureeconomicgrowth,and · Deployingrenewableenergysystemsforalowcarbonglobaleconomy. 73 Governance and Operations ESMAP is governed and funded by a Consultative Group (CG) composed of representatives of Australia, Austria, Denmark, France, Germany, Iceland, the Netherlands, Norway, Sweden, the United Kingdom, and the World Bank Group. The ESMAP CG is chaired by a World Bank Group Vice President and advised by a Technical Advisory Group of independent energy experts that reviews the Program's strategic agenda, work plan, and achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank Group, and from the energy and development community at large, to conduct its activities. Further Information For further information or copies of project reports, please visit www.esmap.org. ESMAP can also be reached by email at esmap@worldbank.org or by mail at: ESMAP c/o Energy, Transport, and Water Department The World Bank Group 1818 H Street, NW Washington, DC 20433, USA Tel.: 202-473-4594; Fax: 202-522-3018 E N E R G Y The World Bank 1818 H Street,NW Washington, DC 20433 USA PHONE: 1.202.458.2321 FAX: 1.202.522.3018 WEB: www.esmap.org E-MAIL: esmap@worldbank.org 25% Cert no. SW-COC-001530