The Government of Bangladesh, with help from the World Bank and other donors, has provided aid to a local agency called Infrastructure Development Company Limited and its partner organizations to devise a credit scheme for marketing solar home system units and making these an affordable alternative to grid electricity for poor people in remote areas.
... See More + This paper uses household survey data to examine the financing scheme behind the dissemination of these solar home systems, in particular the role of the subsidy; the factors that determine the adoption of the systems in rural Bangladesh; and the welfare impacts of such adoption. The paper finds that while the subsidy has been declining over time, the demand for solar home systems has seen phenomenal growth, mostly because of technological developments that have made the systems increasingly more affordable. Households with better physical and educational endowments are more likely to adopt solar home systems than poor households. The price of the system matters in household decision making -- a 10 percent decline in the price of the system increases the overall demand for a solar panel by 2 percent. As for the benefits, adoption of a solar home system improves childrens evening study time, lowers kerosene consumption, and provides health benefits for household members, in particular for women. It is also found to increase women's decision-making ability in certain household affairs. Finally, it is found to increase household consumption expenditure, although at a small scale.
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Policy Research Working Paper WPS6724 DEC 01, 2013
Samad, Hussain A.; Khandk, Shahidur R.; Asaduzzaman, M.; Yunus, Mohammad
The development objective of the Rural Electrification Hybrid System Project for Mali is to expand access to modern energy services in rural areas of the recipient and to increase renewable energy generation in target areas.
... See More + There are three components to the project. The first component of the project is service improvement and extension of existing mini-grids. This component will increase renewable energy generation capacity in existing rural power stations supplying rural mini grids and expand those mini-grids, through: addition of approximately 4.8 MWp of capacity through hybrid systems, including photovoltaic panels, inverters, batteries and control electronics, and mini-grid extension and densification. The second component of the project is development of off-grid lighting markets and energy efficiency. This component aims to: catalyze the markets for off-grid lighting and solar lanterns in targeted rural areas, and improve energy efficiency and promote a rational and efficient use of electricity on targeted mini-grids. The third component of the project is project management support and capacity building. This component supports project management and implementation, capacity building and technical assistance to rural energy sector stakeholders, monitoring and evaluation.
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Today more than half of China's population relies on solid fuels (biomass and coal) for cooking and heating. Each year, household air pollution linked to solid fuel combustion accounts for more than a million premature deaths in China.
... See More + Many residents, mainly in rural areas, are likely to continue using solid fuels in the near future. Scaled-up access to clean-burning, fuel-efficient stoves can mitigate the health risks to households. It is also consistent with China's strategy to promote energy conservation, emissions reduction, and green energy in villages. There is an opportunity to build on earlier efforts to accelerate household access to clean cooking and heating. In the 1980s and 1990s, China had the world's most successful national stoves program, but recent policies and programs have tended to be fragmented. An integrated strategy is provided for strengthening institutional capacity and building an enabling environment, developing a thriving market and household demand, and adopting a results-based financing approach.
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Today more than half of China's population relies on solid fuels (biomass and coal) for cooking and heating. Each year, household air pollution linked to solid fuel combustion accounts for more than a million premature deaths in China.
... See More + Many residents, mainly in rural areas, are likely to continue using solid fuels in the near future. Scaled-up access to clean-burning, fuel-efficient stoves can mitigate the health risks to households. It is also consistent with China's strategy to promote energy conservation, emissions reduction, and green energy in villages. There is an opportunity to build on earlier efforts to accelerate household access to clean cooking and heating. In the 1980s and 1990s, China had the world's most successful national stoves program, but recent policies and programs have tended to be fragmented. An integrated strategy is provided for strengthening institutional capacity and building an enabling environment, developing a thriving market and household demand, and adopting a results-based financing approach.
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This study concerns recent developments in the consumption and production of bioenergy. It examines the main issues and possible economic implications of these developments and assesses their potential impact on land use and the environment, especially with respect to forests.
... See More + The report examines both solid biomass and liquid biofuels, identifying opportunities and challenges at the regional and country levels. The development of bioenergy presents both opportunities and challenges for economic development and the environment. It is likely to have significant impacts on the forest sector, directly, through the use of wood for energy production, and indirectly, as a result of changes in land use. The impact of bioenergy on poverty alleviation in developing countries will depend on the opportunities for agricultural development, including income and employment generation, the potential to increase poor peoples' access to improved types of bioenergy; and the effects on energy and food prices. Five main messages emerge from this report: solid biomass will continue to be a principal source of energy; developments in bioenergy will have major implications for land use; tradeoffs, including those related to poverty, equity, and the environment, must be evaluated when choosing a bioenergy system; there is considerable potential for making greater use of forestry and timber waste as a bioenergy feedstock; and the climate benefits of bioenergy development are uncertain and highly location and feedstock specific.
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The objective of the Increased Access to Modern Energy Project is to improve reliability and efficiency of, and access to, modern energy services in Benin.
... See More + The changes to the project are, as follows: (i) canceling activities that have not advanced and are impossible to implement before the credit closing date and canceling the corresponding financing amounting to (in SDR) the equivalent of US$ 15.5 million; (ii) modifying the components by adding activities that reflect new government priorities; (iii) reallocating credit proceeds in accordance with the revised project description and corresponding procurement plan; (iv) amending the results framework to reflect revised indicators and targets that correspond to the new activities; (v) simplifying and strengthening the implementation arrangements by reducing the number of implementation agencies from four (4) to two (2); and (vi) extending the credit closing date by one year from June 30, 2015 to June 30, 2016 to allow for the completion of activities.
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The China Clean Stove Initiative (CSI), a collaborative effort of the Chinese government and the World Bank, aims to scale up access to clean cooking and heating stoves for poor, primarily rural households, who are likely to continue using solid fuels beyond 2030.
... See More + More than half of China's population still relies on solid fuels (coal and biomass) for cooking and heating; many of these households, located mainly in rural areas, are likely to continue using solid fuels in the near future. Switching to modern energy alternatives would be the most effective way to achieve clean cooking and heating solutions and should be encouraged; yet such fuels are more expensive than solid fuels, requiring more costly stoves and delivery infrastructure. Effective strategies to scale up the dissemination of clean burning, fuel-efficient stoves for household cooking and heating can mitigate the health hazards associated with the burning of solid fuels. It is estimated that Household Air Pollution (HAP) from solid fuel use results in more than a million premature deaths each year in China. Scaled-up access to clean and efficient stoves is consistent with China's strategy to promote energy conservation, reduced carbon emissions, and green energy in villages. The China CSI comprises four phases: 1) initial stocktaking and development of the implementation strategy; 2) institutional strengthening, capacity building, and piloting of the strategy; 3) scaled-up program implementation; and 4) evaluation and dissemination of lessons learned. This report will serve as a knowledge base and roadmap to encourage and engage all interested parties in working together on this important agenda. The initial CSI stocktaking exercise calls for a comprehensive strategy comprising institutional strengthening and building of an enabling policy and regulatory environment, market and business development, and stimulation of household demand, supported by an innovative, results based financing approach.
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Household air pollution is the second leading cause of disease in Madagascar, where more than 99 percent of households rely on solid biomass, such as charcoal, wood, and crop waste, as the main cooking fuel.
... See More + Only a limited number of studies have looked at the emissions and health consequences of cook stoves in Africa. This paper summarizes an initiative to monitor household air pollution in two towns in Madagascar, with a stratified sample of 154 and 184 households. Concentrations of fine particulate matter and carbon monoxide in each kitchen were monitored three times using UCB Particle Monitors and GasBadge Pro Single Gas Monitors. The average concentrations of both pollutants significantly exceeded World Health Organization guidelines for indoor exposure. A fixed-effect panel regression analysis was conducted to investigate the effects of various factors, including fuel (charcoal, wood, and ethanol), stove (traditional and improved ethanol), kitchen size, ventilation, building materials, and ambient environment. Judging by its effect on fine particulate matter and carbon monoxide, ethanol is significantly cleaner than biomass fuels and, for both pollutants, a larger kitchen significantly improves the quality of household air. Compared with traditional charcoal stoves, improved charcoal stoves were found to have no significant impact on air quality, but the improved wood stove with a chimney was effective in reducing concentrations of carbon monoxide in the kitchen, as was ventilation.
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Policy Research Working Paper WPS6627 SEP 01, 2013
Dasgupta, Susmita; Martin, Paul; Samad, Hussain A.
The East Asia and Pacific (EAP) clean stove initiative (CSI) forum is part of the World Bank's EAP CSI regional program, which focuses on achieving access to modern cooking and heating solutions in the EAP region, particularly through the scaled-up access to advanced cooking and heating stoves for poor, primarily rural households, who are likely to continue using solid fuels to meet their cooking and heating needs beyond 2030.
... See More + The objectives of the EAP CSI forum are twofold. The first is to share results from implementing the first phase of the CSI, including reports on initial stocktaking activities in the four participating countries and the intervention strategies. The second is to promote collaboration, learning, and knowledge-sharing as the country initiatives move into their second phase. Market forces and mechanisms are powerful tools for ensuring a sustainable supply of clean cooking stoves and should be harnessed in a way that helps the private sector develop, market, and deliver modern cooking solutions. Thus, the CSI intervention strategy in each country needs to strike the right balance between market-based solutions, including innovative financing mechanisms (for example, results-based financing (RBF), with appropriately targeted subsidies. Government policies are needed to: (i) establish and maintain adequate levels of subsidies; and (ii) design and implement effective subsidy allocation mechanisms to mobilize and sustain private-sector participation in scaling up access to clean stoves. This paper is organized as follows: chapter one is Indonesia: toward universal access to clean cooking, key findings from the CSI; chapter two is Indonesia CSI program: government perspective; chapter three gives CSI implementation activity in Lao People's Democratic Republic (PDR); chapter four is China: toward universal access to clean cooking and heating, key findings from the CSI (phase one); chapter five presents development of clean stoves in China; and chapter six is millennium challenge account: Mongolia energy and environment project (2010 to 2013).
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The China Clean Stove Initiative (CSI), a collaborative effort of the Chinese government and the World Bank, aims to scale up access to clean cooking and heating stoves for poor, primarily rural households, who are likely to continue using solid fuels beyond 2030.
... See More + More than half of China's population still relies on solid fuels (coal and biomass) for cooking and heating; many of these households, located mainly in rural areas, are likely to continue using solid fuels in the near future. Switching to modern energy alternatives would be the most effective way to achieve clean cooking and heating solutions and should be encouraged; yet such fuels are more expensive than solid fuels, requiring more costly stoves and delivery infrastructure. Effective strategies to scale up the dissemination of clean burning, fuel-efficient stoves for household cooking and heating can mitigate the health hazards associated with the burning of solid fuels. It is estimated that Household Air Pollution (HAP) from solid fuel use results in more than a million premature deaths each year in China. Scaled-up access to clean and efficient stoves is consistent with China's strategy to promote energy conservation, reduced carbon emissions, and green energy in villages. The China CSI comprises four phases: 1) initial stocktaking and development of the implementation strategy; 2) institutional strengthening, capacity building, and piloting of the strategy; 3) scaled-up program implementation; and 4) evaluation and dissemination of lessons learned. This report will serve as a knowledge base and roadmap to encourage and engage all interested parties in working together on this important agenda. The initial CSI stocktaking exercise calls for a comprehensive strategy comprising institutional strengthening and building of an enabling policy and regulatory environment, market and business development, and stimulation of household demand, supported by an innovative, results based financing approach.
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Forty percent of Indonesia's more than 60 million households continue to rely heavily on traditional biomass fuels for cooking. Household air pollution from solid fuel combustion is linked to some 165,000 premature deaths in Indonesia each year.
... See More + In rural Indonesia, biomass is renewably harvested and abundant and affordable to the poor. All commercially sold stoves are made by local artisan producers, and profit is the supply chain's major concern. Introducing new models will need to be linked to a higher profit margin and training in business development. Achieving universal access to clean cooking by 2030 will require developing a thriving clean biomass stove market. An integrated approach, using a results-based financing mechanism, is expected to overcome supply and demand side barriers and institutional constraints. This brief discusses the following issues: changing landscape of household cooking fuels; mitigating the health risks of biomass cooking; sustained demand for firewood as cooking fuel; limited biomass stove market and types; learning from successful clean cooking programs; key policy recommendations; results-based financing; scenario analysis results; and the road ahead.
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Forty percent of Indonesia's more than 60 million households continue to rely heavily on traditional biomass fuels for cooking. Household air pollution from solid fuel combustion is linked to some 165,000 premature deaths in Indonesia each year.
... See More + In rural Indonesia, biomass is renewably harvested and abundant and affordable to the poor. All commercially sold stoves are made by local artisan producers, and profit is the supply chain's major concern. Introducing new models will need to be linked to a higher profit margin and training in business development. Achieving universal access to clean cooking by 2030 will require developing a thriving clean biomass stove market. An integrated approach, using a results-based financing mechanism, is expected to overcome supply and demand side barriers and institutional constraints. This brief discusses the following issues: changing landscape of household cooking fuels; mitigating the health risks of biomass cooking; sustained demand for firewood as cooking fuel; limited biomass stove market and types; learning from successful clean cooking programs; key policy recommendations; results-based financing; scenario analysis results; and the road ahead.
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The objective of the Hybrid Solar Thermal Power Plant Project is to demonstrate and encourage replication of Integrated Solar Combined Cycle Systems (ISCCS) power generation technology in Mexico and elsewhere, thereby contributing to the reduction of global Greenhouse gas (GHG) emissions.
... See More + The restructuring seeks to amend the grant agreement, to reflect the reduction in the size of the solar plant and adjust the target values of the outcome and results indicators accordingly. Since the preparation of the project in 2005, the power industry was significantly impacted by an increase in the costs of equipment. The lack of response to the first two biddings launched by the Federal Electricity Commission (CFE) in 2006 and 2007, respectively, led the utility to reduce the requested capacity of the solar field, from 31 MW to the 12-15 MW range, to ensure that the Global Environment Facility (GEF) resources could still be used to finance this component. The amendment will reduce the size of the solar power field from 30MW to 12-15MW. The change in the capacities of the solar field and combined cycle components will affect proportionally the project's outcome and results indicators target values. Even with the reduction in the size of the plant, the project remains economically viable as demonstrated by its inclusion in Mexico's least cost expansion plan. The project will not achieve these revised targets, however, without an extension of its closing date, which the Bank will consider based on the progress in the bidding process for the turbines.
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Ratings for the Electricity Services for Rural Areas Project for Senegal were as follows: outcomes were moderately satisfactory; GEO outcomes were also moderately satisfactory; risk to development outcome was moderate; risk to GEO outcome was also moderate; Bank performance was moderately satisfactory and borrower performance was also moderately satisfactory.
... See More + Some lessons learned includes: leveraging private sector investments for rural electrification is possible if the legal and regulatory framework includes certain incentives. Among the factors that drove interest from international power utilities are fiscal incentives and legal insurance included in the 1998 electricity law (98-29) and the investment code. Implementation of projects with innovative features takes time which should be properly accounted for at the design stage. A longer implementation timeframe should have been provided to account for the high learning curve and potential implementation challenges. Flexibility or pragmatism is needed in certain contexts to achieve results. Having a permanent dialogue/consultation platform is critical in accelerating the implementation of projects with multiple involved stakeholders.
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Implementation Completion and Results Report ICR2699 JUN 21, 2013
The development objective of the Large-scale Renewable Energy Development Project is to assist Mexico in developing initial experience in commercially-based grid-connected renewable energy applications by supporting construction of an approximately 101 MW IPP wind farm, while building institutional capacity to value, acquire, and manage such resources on a replicable basis.
... See More + This change arises from amendments to Mexican laws that prevent the financial agent from making deposits to institutions other than the Tesoreria de la Federacion (the Federal Treasury, TESOFE) or the treasuries of the project executing agency or implementing entity. Through this restructuring, SENERs role as overall coordinator of the project will also be clarified and strengthened. The restructuring will not create any additional environmental or social impacts or trigger any additional safeguard policy. However, it will amend the Project Development Objective (PDO) in the legal documents to make it identical to the PDO in the Project Appraisal Document (PAD). The PDO in the PAD includes the approximate size of the wind farm that will be supported and built, while the one in the legal agreement did not.
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The development objective of the Large-scale Renewable Energy Development Project is to assist Mexico in developing initial experience in commercially-based grid-connected renewable energy applications by supporting construction of an approximately 101 MW IPP wind farm, while building institutional capacity to value, acquire, and manage such resources on a replicable basis.
... See More + This change arises from amendments to Mexican laws that prevent the financial agent from making deposits to institutions other than the Tesoreria de la Federacion (the Federal Treasury, TESOFE) or the treasuries of the project executing agency or implementing entity. Through this restructuring, SENERs role as overall coordinator of the project will also be clarified and strengthened. The restructuring will not create any additional environmental or social impacts or trigger any additional safeguard policy. However, it will amend the Project Development Objective (PDO) in the legal documents to make it identical to the PDO in the Project Appraisal Document (PAD). The PDO in the PAD includes the approximate size of the wind farm that will be supported and built, while the one in the legal agreement did not.
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The objective of the Hybrid Solar Thermal Power Plant Project is to demonstrate and encourage replication of Integrated Solar Combined Cycle Systems (ISCCS) power generation technology in Mexico and elsewhere, thereby contributing to the reduction of global Greenhouse gas (GHG) emissions.
... See More + The restructuring seeks to amend the grant agreement, to reflect the reduction in the size of the solar plant and adjust the target values of the outcome and results indicators accordingly. Since the preparation of the project in 2005, the power industry was significantly impacted by an increase in the costs of equipment. The lack of response to the first two biddings launched by the Federal Electricity Commission (CFE) in 2006 and 2007, respectively, led the utility to reduce the requested capacity of the solar field, from 31 MW to the 12-15 MW range, to ensure that the Global Environment Facility (GEF) resources could still be used to finance this component. The amendment will reduce the size of the solar power field from 30MW to 12-15MW. The change in the capacities of the solar field and combined cycle components will affect proportionally the project's outcome and results indicators target values. Even with the reduction in the size of the plant, the project remains economically viable as demonstrated by its inclusion in Mexico's least cost expansion plan. The project will not achieve these revised targets, however, without an extension of its closing date, which the Bank will consider based on the progress in the bidding process for the turbines.
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Facing a huge fiscal burden due to imports of entire petroleum despite the availability of a surplus of agricultural land to produce biofuels, Zambia, a country in Sub-Saharan Africa, has recently introduced a biofuel mandate.
... See More + But, a number of questions, particularly those related to the economics of biofuels, have not been fully investigated yet. Using an empirical model this study analyzes the economics of meeting the biodiesel mandate through soybean feedstock. The study finds that meeting the biodiesel mandate with biodiesel from soybeans would reduce social welfare because the country's soybean imports would cost more than the expected reduction in petroleum imports. However, if Zambia increases its domestic soybean supply along with its capacity to convert soybean to biodiesel, as well as oil yield, soybean based biodiesel is likely to be welfare-beneficial, even if biodiesel prices are above diesel prices. The study also finds that under current market prices and transportation costs and constraints, the same amount of biodiesel can be produced most cost-effectively with a tax exemption. A blend mandate would be less cost effective, while a biodiesel production subsidy represents the least efficient policy option.
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Policy Research Working Paper WPS6498 JUN 01, 2013
Drabik, Dusan; Timilsina, Govinda R.; de Gorter, Harry
With increased global interest in biofuels, Zambia, a Sub-Saharan African country that entirely depends on imports for its petroleum supply, is planning to implement blending mandates for biofuels.
... See More + But, a large number of issues -- including production costs of biofuels, land requirements to meet the mandates, and environmental benefits -- have not yet been explored. This study aims to contribute in filling this gap. It finds that depending on feedstock type, costs of ethanol production range from US$0.360 a liter to US$0.680 a liter while the costs for biodiesel production range from US$0.612 a liter to US$0.952 a liter. Even if lower energy contents of biofuels are taken into account, the analysis shows that biofuels are cheaper than their petroleum counterparts. Considering the cost advantage of these biofuels over petroleum products and the availability of surplus agricultural land, Zambia is likely to benefit from the development of a biofuel industry. Biofuels is expected to reduce Zambia's petroleum import bill, which currently stands at more than US$700 million, enhance food security by providing incentives to increase yields, and increase affordability and accessibility to modern energy in the country where 77 percent of the population still lacks access to modern energy. It could also stimulate rural employment and development.
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Policy Research Working Paper WPS6499 JUN 01, 2013
Sinkala, Thomson; Timilsina, Govinda R.; Ekanayake, Indira J.