93688 2014 ANNUAL REPORT MISSION The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and technical assistance program administered by the World Bank. It provides analytical and advisory services to low- and middle- income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Denmark, Finland, France, Germany, Iceland, Japan, Lithuania, Norway, Sweden, the Netherlands, and the United Kingdom, as well as the World Bank. CONTENTS 1 | COMPLEX CHALLENGES, DYNAMIC OPPORTUNITIES . . . 1 Leverage and Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Support to Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 New Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 WBG Energy Sector Directions Paper . . . . . . . . . . . . . . . . . . . . . . 6 Working with Development Partners . . . . . . . . . . . . . . . . . . . . . . 8 Reaching Out to Other Sectors . . . . . . . . . . . . . . . . . . . . . . . . . 10 2 | ACCELERATING THE TRANSITION TO CLEAN ENERGY AND LOW CARBON DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . 13 Building the Global Commitment to Geothermal . . . . . . . . . . . . 14 Mapping the Renewable Future . . . . . . . . . . . . . . . . . . . . . . . . . 15 Applying Clean Energy Knowledge to Policy . . . . . . . . . . . . . . . 16 2A | WORKING TOWARDS A SUSTAINABLE ENERGY FUTURE FOR SMALL ISLAND STATES . . . . . . . . . . . . . . . . . . 20 3 | CREATING PATHWAYS TO SUSTAINABLE ENERGY ACCESS FOR ALL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Supporting New Ways to Measure Energy Access . . . . . . . . . . . . 26 Scaling-Up National Energy Access Programs . . . . . . . . . . . . . . 27 Reaching the Urban Poor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 3A | AFRICA RENEWABLE ENERGY AND ACCESS PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Lighting Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Africa Clean Cooking Energy Solutions . . . . . . . . . . . . . . . . . . . 30 Africa Electrification Initiative . . . . . . . . . . . . . . . . . . . . . . . . . 31 AFREA Gender and Energy Program . . . . . . . . . . . . . . . . . . . . . 32 New Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3B | GENDER AND SOCIAL INCLUSION IN THE ENERGY SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 4 | FOSTERING ENERGY EFFICIENT CITIES . . . . . . . . . . . . . . 37 Building the Foundation for More Energy Efficient Cities. . . . . . . . . 38 Pinpointing Energy Efficiency Improvements in Urban Sectors. . 40 Training Leaders to Take on Urban Transport Challenges . . . . . . 41 i  Building a Global Knowledge Community on Urban Energy Efficiency . . . . . . . . . . . . . . . . . . . 41 Helping Western Balkan Countries Ease Reliance on Imported Fossil Fuels . . . . . . . . . . . . . . . . 45 5 | DEVELOPING EFFECTIVE ENERGY SECTOR POLICIES AND INSTITUTIONS . . . . . . . . . . 47 Building Partnerships around Energy Subsidy Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 More Power to India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Open Access to Power Grids: Global Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Power Generation Options: Improving Decision-Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Country-Level Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 5A | RESULTS-BASED APPROACHES TO ENERGY SECTOR DEVELOPMENT . . . . . . . . . . . . . 54 6 | ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM . . . . . . . . . . . . . . . . . . . . 57 FY2014: HIGHLIGHTS AND ACHIEVEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Catalyzing Markets for Clean Cookstoves in Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Sharing Best Practices for Regional Scale up of Clean Cookstoves . . . . . . . . . . . . . . . . . . 60 Developing a Renewable Energy Market in the Philippines . . . . . . . . . . . . . . . . . . . . . . . 61 Building Capacity for Nepal’s First Large-Scale Solar Power Development . . . . . . . . . . . . 61 Assessing Environmental Impacts of WB-IFC Hydropower Scheme in Nepal . . . . . . . . . . 62 Promoting Private Sector Investment in Papua New Guinea’s Power Sector . . . . . . . . . . . 62 Exploring Mitigation Options for Short-Lived Climate Pollutants in South Asia . . . . . . . . 62 ASTAE Knowledge Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 New Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 7 | FINANCIAL REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 For the ESMAP-ASTAE 2014 Annual Report annexes, please go to: http://www.esmap.org/node/55386 ANNEX I | PROCEEDINGS OF CONSULTATIVE GROUP MEETING FOR ENERGY TRUST- FUNDED PROGRAMS ESMAP RESULTS, FY2014: OUTCOMES, OUTPUTS, AND WORLD BANK ANNEX II |  OPERATIONS INFLUENCED ASTAE RESULTS, FY2014: INDICATORS ACHIEVED AND WORLD BANK GROUP ANNEX III |  OPERATIONS INFLUENCED ANNEX IV | COMPLETED, NEW, AND ONGOING ACTIVITIES, FY2014 ANNEX V | PUBLICATIONS, FY2014  ii  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM COMPLEX CHAPTER 1 CHALLENGES, DYNAMIC OPPORTUNITIES T he developing world is presently undergoing an energy transition as fundamental as that of the late 1970s and early 1980s, when the Energy Sec- tor Management Assistance Program (ESMAP) was founded to help countries navigate through the oil crises of the period. This present transition, however, is characterized more by opportunity than by crisis. Countries face a wide range of choices when it comes to planning the future of their energy sectors. In some regions, renewable energy has become cost competitive with other sources and increasingly can provide utility-scale power to national grids. New possi- bilities for large-scale energy efficiency are being found in cities and industries. Smart grids, mini-grids, and new models for transmission and distribution hold out the prom- ise of more reliable and affordable power and expanded access to energy, even in poorer regions of the world. As it has for over 30 years, ESMAP works with its clients as a trusted partner, helping countries make informed choices and develop energy sectors that will be sustainable into the future. In recent years, ESMAP has devoted considerable resources to strategic global initiatives that could help spur 1  transformational impacts for the energy sectors Starting with this FY2014 annual report, ESMAP of many countries. These include the Global Geo- and ASTAE will publish a joint annual report that thermal Development Plan (Chapter 2), Renew- includes information on budgets, outputs, and able Energy Resource Mapping (Chapter 2), the results. For more on ASTAE, see Chapter 6. Sustainable Energy for All Technical Assistance Program for universal energy access (Chapter 3), the City Energy Efficiency Transformation Ini- LEVERAGE AND IMPACT tiative (Chapter 4), and the Energy Subsidy Reform and Delivery Technical Assistance Facil- One of ESMAP’s key strengths continues to be its ity (Chapter 5). unique role in the “upstream” analytical work criti- cal to the World Bank’s policy dialogue with clients ESMAP has organized its work into four main and energy sector lending. For the period of ESMAP’s focus areas: last business plan—FY2009 through FY2013—ESMAP activities are estimated to have informed $14.7 bil- • Clean Energy (Chapter 2) lion of World Bank Group (WBG) lending. In FY2014, • Energy Access (Chapter 3) ESMAP activities contributed to the identification and • Energy Efficient Cities (Chapter 4) design of $1.83 billion in WBG energy financing. • Energy Assessments and Strategies (Chapter 5) A number of ESMAP activities in FY2014 directly ESMAP has in recent years also instituted special contributed to follow-on WBG lending operations, work programs that address particular areas of as well as to new policies and programs in client interest to clients and partners. These include the countries. These include: SIDS DOCK Support Program focused on the energy transition in small island developing states • In Ukraine, an ESMAP study of energy ef- (Section 2A), the Africa Renewable Energy and ficiency in the district heating sector informed Access Program (AFREA; Section 3A), Gender and a new WBG operation—the $382 million Social Inclusion in the Energy Sector (Section 3B), District Heating Ukraine Project, which will and Results-Based Approaches to energy sector help 10 municipal heating utilities across the development (Section 5A). country implement energy efficiency im- provements to enhance service and cut pro- Starting in FY2015, the program management and duction costs and emissions. administrative functions of the Asia Sustainable • In China, a capacity building activity on and Alternative Energy Program (ASTAE)— smart grids informed a new regulation by the another longstanding World Bank-managed State Electricity Regulatory Commission to energy trust fund—are being merged with ESMAP. apply smart grid technology to improve the Focusing on renewable energy, energy efficiency, integration of wind power into the North and energy access, ASTAE’s mandate is to scale China Power Grid. up the use of sustainable energy in Asia to reduce • In the Kyrgyz Republic, a comprehensive energy poverty and protect the environment. ESMAP power sector note has been used to 2  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM FIGURE 1.1 FIGURE 1.3 Outcomes, ESMAPESMAP FY2014 FY2014 Outcomes Policy Policy & Strategy & Strategy Informed Informed and and Client Client Increased, Capacity FY2014FY2014, Capacity Increased, by Outcomes (outcomes) Development Financing 20 20 Informed (operations) 2 8 Bank, Country, or Sector Strategy Informed/Influenced Government Policy/Strategy Informed Policy & Strategy Informed and 3131 Client Capacity Increased Public Debate Stimulated/Initiated Design Capacity Strengthened 3 17 Implementation Capacity Strengthened Knowledge Increased and 1 15 15 Innovative Approaches Generated inform the government’s medium term tariff ESMAP counted a total of 66 outcomes from its policy. activities in FY2014. This included development • In Kenya, the ESMAP Energy Access for the financing informed, client capacity increased, pol- Urban Poor initiative contributed to Kenya icies informed, and knowledge increased. A break- Power’s expansion of electricity connections down of these outcomes by categories is shown in slum areas as part of the $5 million WBG/ in Figures 1.1 through 1.4. For full details, please GPOBA-financed Slum Electrification project. see Annex II. FIGURE 1.2 FIGURE 1.4 FinancingInformed, DevelopmentFinancing Development FY2014 Informed, FY2014 Knowledge Increased and Innovative (# of Operations) Knowledge Increased and Innovative Approaches Generated, (# of Operations) Approaches Generated, FY2014, by Outcomes FY2014 (outcomes) 2 Non-Bank 3 Resources Mobilized, Best Practices Disseminated 4 2 Facilitated Exchange of Best Practices with Clients New Innovative Approach Developed World Bank New Innovative Approach Fostered Operations, 16 8 Complex Challenges, Dynamic Opportunities 3  SUPPORT TO REGIONS leading to unchecked demand for fuel and elec- tricity, and poor incentives for energy efficiency. The bulk of ESMAP’s work continues to be ESMAP-supported activities in the region include regional- and country-level technical assistance helping to develop a social accountability frame- activities in response to targeted client needs, work for the power sector in Egypt, assessment delivered through the regional energy units of the of the wind power potential of Lebanon, devel- World Bank. While many countries are working opment of power sector reforms in Yemen, and to respond to the opportunities presented by the quantification of energy efficiency opportunities global energy transition, regional needs and pri- in Iraq, along with region-wide work on energy orities vary widely. subsidy reform (see Chapter 5). With the lowest rate of access to electricity of any The South Asia region is host to a significant region, and the lowest electricity use per capita, share of the world’s people without access to the energy needs of Sub-Saharan Africa are huge. modern energy services. Even for those that have Very large investments in generation capacity, connections to electricity, there are challenges transmission, and distribution will be required to with reliability and quality of supply. Poor energy meet growing demand and power economic supply and inefficiencies translate into substan- growth. Of particular need is work on regulatory tial economic losses for the region. Among the reforms, improving the performance of utilities, activities ESMAP is supporting in the region are and innovative financing—including guarantees— a framework for power sector planning amid to facilitate private investment. A number of recent high uncertainty in Afghanistan, a study of scale ESMAP-supported activities have targeted emerg- up of mini-grids in Bangladesh, and a wide vari- ing priorities in Africa, including work on electric- ety of sector governance activities in India, ity interconnections in East Africa, the role of min- including institutional strengthening in poor ing companies as anchor customers to facilitate states and spurring innovation in energy effi- electricity expansion, and harnessing natural gas ciency and low carbon technology (see Chapters resources to help meet increased demand for 2, 3, and 5). power. These activities are in addition to work done under AFREA (Section 3A), which supports The Europe and Central Asia region includes innovative approaches to improving energy ser- some of the most energy inefficient countries in vices across Africa. the world. Nearly 80 percent of generation capi- tal equipment and about 50 percent of the trans- The Middle East and North Africa region is mission infrastructure in the region is over 30 approximately 60 percent more energy intensive years old. Energy affordability is a growing con- than developed countries, but electricity con- cern—average households in 13 countries spend sumption is still relatively low. Power cuts are more than 10 percent of their budget on energy. frequent in some countries, leading to citizen To address these challenges, the World Bank has dissatisfaction. Energy underpricing is pervasive undertaken policy dialogue and analytical stud- across the region, with large fuel subsidies ies supported by ESMAP that have focused on 4  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM optimizing the energy supply mix to provide and integrating it into electricity grids; increasing affordable, reliable, and sustainable energy ser- access to modern energy services for underserved vices. Work in the Kyrgyz Republic has helped to populations; and promoting new energy innova- establish a transparent tariff-setting methodology tions and market reforms. About half of the aimed at ensuring adequate service quality, while ESMAP-supported analytical work in the region in Belarus, analysis was conducted to mitigate focuses on energy efficiency, particularly on the impact of a proposed heating tariff reform by energy efficient cities and greener urban infra- improving energy efficiency and developing a structure. Other work has focused on renewable more targeted subsidy delivery mechanism. energy scale-up, including support to Indonesia’s ESMAP-funded studies in the Western Balkans, geothermal development and renewable energy Uzbekistan, and Turkey have helped to assess governance in the Philippines. Other activities energy efficiency measures for the urban build- have supported sector-wide development, such ing sector to improve provision of heating ser- as support for national electrification plans in vices and address winter power shortages. Myanmar and Papua New Guinea. Latin America and the Caribbean is a diverse region with both low- and middle-income countries NEW BUSINESS PLAN at different stages of energy development. While energy access is still a challenge in a few countries, FY2014 was the first year of ESMAP’s new three- others are more focused on meeting growing energy year business plan, agreed to by ESMAP’s Con- supply needs sustainably. Increasing energy effi- sultative Group of donors and developed with the ciency and developing market mechanisms for low advice of the Technical Advisory Group (Box 1.1) carbon growth are priorities across a large swathe in 2013. This business plan established three over- of the region. Regionally, electricity demand is all objectives for ESMAP for the FY2014-16 period: expected to double in the next 20 years, requiring $3 trillion in new generation, transmission, and • Enhance Development Financing. ESMAP power systems investments. ESMAP support focuses will provide client countries with technical on upstream studies aimed at increasing integration assistance for pre-investment activities neces- of renewable energy in the energy generation mix; sary to resolve program design issues and integrating lessons learned from comparison of offer additional options. energy sector approaches in different countries, • Influence Policy and Strategy and Increase including on pricing and subsidy issues; and assess- Client Capacity. ESMAP will seek to increase ments demonstrating the potential of energy effi- institutional capacity of client countries to ciency measures and interventions. plan, manage, and regulate the implementa- tion of policies, strategies, and programs that Strategic priorities in the East Asia and Pacific deliver reliable and affordable energy services region include scaling up energy efficiency as required by their citizens for poverty reduc- countries urban areas, expand industries and tion and environmentally sustainable eco- energy infrastructure; scaling up renewable energy nomic growth. Complex Challenges, Dynamic Opportunities 5  BOX 1.1 ABOUT ESMAP ESMAP is a global technical assistance program administered by the World Bank and situated in the World Bank’s Energy and Extractives Global Practice in Washington, DC. ESMAP’s program includes both regional and country-focused activities implemented primarily by regional energy teams at the World Bank, and global initiatives managed by the ESMAP program unit. The ESMAP core unit of about 25 staff is responsible for the day-to-day management of the program, following the strategy detailed in ESMAP’s Business Plan. The unit comprises teams working on energy access, clean energy, energy efficient cities, energy assessments and strategy, results-based approaches for energy sector development, gender, small island developing states, communications, and monitoring and evaluation. The ESMAP unit is also responsible for the management and administration of the ASTAE and SIDS DOCK Multi-Donor Trust Funds (MDTFs). Consultative Group ESMAP is governed by a Consultative Group (CG) made up of representatives from contributing donors and chaired by the Senior Director of the World Bank’s Energy and Extractives Global Practice. The CG meets annually to review the strategic direction of ESMAP, its achievements, use of resources, and funding requirements. ESMAP’s donors in FY2014 were: Australia Department of Foreign Affairs and Trade Austria Federal Ministry of Finance of Austria Denmark Royal Danish Ministry of Foreign Affairs (ESMAP and SIDS DOCK MDTFs) Finland Ministry for Foreign Affairs of Finland France Agence Française de Développement Germany Federal Ministry for Economic Cooperation and Development; Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety Iceland Ministry of Foreign Affairs Japan Ministry of Finance (SIDS DOCK MDTF only) Lithuania Ministry of Foreign Affairs; Ministry of the Environment The Netherlands Ministry of Foreign Affairs (ESMAP and ASTAE MDTFs) Norway Ministry of Foreign Affairs Sweden  Swedish International Development Cooperation Agency (ESMAP and ASTAE MDTFs) United Kingdom Department for International Development (ESMAP and ASTAE MDTFs) The World Bank Group Technical Advisory Group A Technical Advisory Group (TAG) of international experts appointed by the CG provides informed, independent opinions to the CG about the purpose, strategic direction, and priorities of ESMAP. The TAG also provides advice and suggestions to the CG on current and emerging global energy sector issues likely to impact ESMAP’s client counties. 6  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 1.2 ESMAP KEY ACHIEVEMENTS FY2014 • Through the Global Geothermal Development Plan, mobilization of $235 million from the Clean Technology Fund in investment funding for exploratory test drilling in developing countries— the riskiest and costly stage of geothermal development • Launch of the City Energy Efficiency Transformation Initiative, a three-year, $9 million pro- gram to help cities identify, develop, and mobilize financing for transformational investment programs in urban energy efficiency • Development of the Multi-Tier Framework for Measuring Energy Access, which goes beyond binary metrics to look at the quality, affordability, and reliability of energy supply • Publication of the More Power to India report, the result of a multi-year, comprehensive study of the Indian power sector, with specific recommendations to improve the efficiency and sol- vency of electricity distribution • In Mexico, application of two energy diagnostics using ESMAP’s Tool for Rapid Assessment of City Energy (TRACE) as the template for a nationwide program to improve energy efficiency in the country’s cities • Launch of the Thirsty Energy initiative, which looks at water constraints on energy sector de- velopment at the global level and through country case studies • Expansion of the Renewable Energy Resource Mapping program to 12 countries, with initial mapping activities and client engagement underway in 9 countries • Support for publication of From the Bottom Up, on how small power producers and mini-grid operators can deliver electrification in rural Africa, which has become the fifth most request- ed title in the World Bank’s Directions in Development series • Deepen Knowledge and Generate Innova- two other trust funds: ASTAE and the SIDS DOCK tive Solutions. ESMAP-supported research Support Program, with total paid-in contributions and analyses will aim to strengthen the sec- of $24 million and $16 million since FY2010, tor’s knowledge and evidence base to deliver respectively. The business planning process for all increased energy access, energy efficiency, three trust funds established the parameters for and sustainable energy services in developing the activities undertaken in FY2014 along with countries. results frameworks for assessing program performance. The new business plan represents a significant program expansion at ESMAP. The previous busi- ness plan had a projected budget of $55 million WBG ENERGY SECTOR for the ESMAP work program for the five years DIRECTIONS PAPER between FY2009 and FY2013. The present busi- ness plan calls for a budget of $149 million over In July 2013, the World Bank issued a paper, three years. Additionally, ESMAP now administers Towards a Sustainable Energy Future for All, Complex Challenges, Dynamic Opportunities 7  which sets the direction for the WBG’s work and WORKING WITH DEVELOPMENT investments in the energy sector. The paper PARTNERS pledges that the Bank will support clients in deliv- ering the affordable, reliable, and sustainable ESMAP collaborates closely with a wide range of energy needed to achieve the WBG’s twin goals development partners, including international of eliminating extreme poverty and promoting non-government organizations, bilateral develop- shared prosperity. ment agencies (including ESMAP’s donor agen- cies), other multilateral institutions, and local and The paper directs the World Bank’s engagements global think tanks. Such collaboration takes place in the energy sector towards: at three levels—through global strategic initia- tives, through joint analytical work, and by • supplying universal access to reliable modern informing and feeding into follow-on work done energy services, by partners at the country level. • accelerating gains in energy efficiency, • expanding renewable energy, Examples of such country-level collaboration • creating an enabling environment, and include: • intensifying global advocacy. • In Egypt, an ESMAP activity worked to build ESMAP’s Business Plan is aligned with these the capacity of the national gas regulator to World Bank areas and ESMAP will play a signif- improve development and implementation icant role in the implementation of these com- of regulations on natural gas. This in turn mitments. Focus areas under the paper include: has informed and supported a project to long-term system-wide planning; regional energy expand natural gas connections to house- integration; assistance on pricing and tariff holds, jointly financed by Agence Française reform; urban energy efficiency; promotion of de Développement (AFD) and the World new technologies such as smart grids and con- Bank. centrated solar power (CSP); clean cooking and • In the Philippines, ESMAP co-financed an heating solutions; and empowering women in activity to help the Energy Regulatory Com- the energy sector. mission (ERC) review key regulatory param- eters to make its processes more efficient. Overall the Bank’s strategic directions are aligned This effort has helped inform work funded with the targets of the global Sustainable Energy by JICA to clear the ERC’s substantial backlog for All (SE4ALL) initiative—universal energy of regulatory cases, as well as a proposed access, doubling the rate of improvement in European Union-funded operation to help energy efficiency, and doubling the share of redesign the ERC’s systems. renewable energy in the global energy mix—to • In Tanzania, ESMAP’s mapping of small hy- be achieved by 2030. ESMAP continues to play a dropower resources has been used in the central role in the World Bank’s engagement in DFID-supported capacity building of the Tan- SE4ALL (Box 1.3). zania Meteorological Agency by the UK Met 8  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 1.3 CONTINUING SUPPORT FOR SUSTAINABLE ENERGY FOR ALL Since 2012, ESMAP has played a key role in the WBG’s support for the global SE4ALL initiative. That support has expanded in FY2014 to encompass a wide range of activities undertaken by ESMAP, other WBG energy teams, and World Bank partners. One of the largest ongoing programs is the SE4ALL Technical Assistance Program (Chapter 3), which works to help countries achieve the goal of universal energy access by 2030. Complementing this program, ESMAP and the World Bank’s Sustainable Energy Department established an SE4ALL Global Knowledge Hub in FY2014. The Global Knowledge Hub, one of a number of regional and thematic hubs established by SE4ALL, is designed to facilitate the creation, enhancement, and exchange of knowledge for the overall initia- tive. As part of the work under this hub, ESMAP has developed a new “multi-tier” approach to measuring energy access, and is starting work on a comprehensive global report that will review the current status and emerging trends in energy access (Chapter 3). Also under the Hub is a new program—Readiness for Investment in Sustainable Energy. This program will develop a suite of policy indicators to measure a country’s readiness for sustainable energy access and clean energy technologies. These indicators will provide a global reference for policymakers to find best practices in institutional, regulatory, and legislative systems. These indicators will also serve as an objective comparison of the investment climate in different countries over time. ESMAP is also supporting the development of the second edition of the SE4ALL Global Tracking Framework. The first edition, published in May 2013, established global benchmarks for the three overall SE4ALL goals of universal energy access, doubling the rate of improvement in energy effi- ciency, and doubling the share of renewable energy in the global energy mix (see ESMAP 2013 Annual Report). The next edition will update global data to 2012. A special chapter will look at “nexus” issues where energy intersects with water, food security, health, and gender. This chapter will look at possible future indicators for tracking nexus areas, and at how these issues could impact the SE4ALL goals. Office, which includes digitization of stream • In India, the ESMAP study More Power to data. India identified capacity and resource con- • In Indonesia, ESMAP supported the capacity straints on utilities as a major challenge for development of staff at Perusahaan Listrik the efficiency and viability of the power sec- Negara (PLN), the national electricity utility, tor. To address this, the World Bank—with in renewable energy system design and op- DFID support—engaged consultants to pro- timization, as part of a joint World Bank-KfW vide project implementation support to power partnership on renewable energy and energy distribution utilities in Bihar, which was access in Indonesia. identified as one of the states with the Complex Challenges, Dynamic Opportunities 9  greatest need. In addition, a DFID-supported Management, Communications, and Climate pilot project in Bihar is implementing the Change recommendations of another ESMAP/ASTAE • The new Gender and Social Inclusion in the study, on the experience of rural load segre- Energy Sector program (Section 3A), which gation schemes in India. goes beyond the traditional focus on gender • In Macedonia, ESMAP’s EFFECT model was in regards to household energy to look at used to produce results for a low carbon gender and energy in relation to issues such growth support program supported by the as infrastructure Government of Norway and Sweden’s SIDA, • The Thirsty Energy initiative (Chapter 5), with a particular focus on energy efficiency focused on water constraints on energy sup- and building retrofits. ply, development, and infrastructure • In Vietnam, wind mapping as part of the • An upcoming ESMAP-World Health Organi- ESMAP renewable energy resource mapping zation paper on how to improve access to program has drawn data from the 10 wind modern energy services for health facilities masts funded by GIZ. Outputs of the program in developing countries, particularly in re- will be used to inform ongoing wind power mote, rural, and poorer areas (Chapter 3) work being done by GIZ and KfW in Vietnam. As of the beginning of FY2015, the World Bank has reorganized its operational and knowledge REACHING OUT TO OTHER work into 19 Global Practices and Cross-Cutting SECTORS Solution Areas. The new structure has potentially positive implications for ESMAP, ASTAE, and SIDS Increasingly, ESMAP is involved in cross-sectoral DOCK due to the increased emphasis on global work that looks at the intersection between energy knowledge flow within the Bank. Additionally, and other development sectors such as water, because energy is now part of the same Global transport, and health. Such work has expanded Practices Vice Presidency as other practices such considerably in FY2014. Examples include: as environment, social protection, poverty, trans- port, urban, gender and water—and emphasis is • Programs that focus on improving the energy being placed on cross-practice collaboration— efficiency of urban transport, and that lever- ESMAP will have a strong platform for cross- age knowledge from other disciplines such sectoral initiatives (e.g., energy subsidy reform as information technology and urban plan- and clean cooking). Finally, with the establish- ning (Chapter 4) ment of the global energy practice, there is a move • The new Energy Subsidy Reform and Delivery towards consolidating energy trust funds, espe- Technical Assistance Facility (Chapter 5), cially their management and administration. This which is informed by the work of, and brings will ensure more efficiency in their management together teams from a wide range of World and better coordination across trust-funded Bank practice areas, including Poverty, Social programs. The new structure has potentially pos- Protection, Macroeconomics and Fiscal itive implications for ESMAP, ASTAE, and SIDS 10  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM DOCK due to the increased emphasis on global cross-sectoral initiatives (e.g., energy subsidy knowledge flow within the Bank. Additionally, reform and clean cooking). Finally, with the estab- because energy is now part of the same Global lishment of the global energy practice, there is a Practices Vice Presidency as other practices such move towards consolidating energy trust funds, as environment, social protection, poverty, trans- especially their management and administration. port, urban, gender and water—and emphasis is This will ensure more efficiency in their manage- being placed on cross-practice collaboration— ment and better coordination across trust-funded ESMAP will have a strong platform for programs. Complex Challenges, Dynamic Opportunities 11  ACCELERATING CHAPTER 2 THE TRANSITION TO CLEAN ENERGY AND LOW CARBON DEVELOPMENT 13  BUILDING THE GLOBAL COMMITMENT TO GEOTHERMAL KEY CLEAN ENERGY ACHIEVEMENTS, FY2014 ESMAP’s Global Geothermal Development Plan , a $7.5 million, three-year effort, is • Under the Global Geothermal Develop- designed to mobilize international donors to ment Plan, mobilization of $235 million from the Clean Technology Fund in invest- support geothermal exploratory drilling in ments for exploratory test drilling in de- developing countries. Exploratory drilling is veloping countries—the riskiest stage of necessary to validate geothermal resources, but geothermal development it is risky, costly, and time consuming. Histor- • Expansion of the Renewable Energy Re- ically, there has been very little public or pri- source Mapping program to 12 countries, vate equity capital available in low-income with initial mapping activities and client countries for this stage of geothermal develop- engagement underway in 9 countries • Launch of the Renewable Energy Project ment, and no commercial capital. By the end Resource Center, in collaboration with En- of FY2014, ESMAP had identified 36 geother- ergypedia, designed to facilitate renewable mal fields in 16 countries where surface explo- energy project development by governments, ration has now been completed and additional development partners, and the private financing is needed to confirm the commercial sector by bringing together project-level viability of geothermal deposits. resources in a single online library • Support to South-South knowledge ex- As of July 2014, this ESMAP-led initiative had changes that bring together client coun- tries to share experience on topics of mu- mobilized $235 million in funding for test drill- tual interest, including events on ing investment projects through the newly ded- concentrated solar power (Morocco) and icated Private Sector Program window of the integration of renewable energy into grids Clean Technology Fund (CTF—part of the Cli- (Mexico) mate Investment Funds). ESMAP is supporting project identification, preparation, and devel- opment activities in Armenia, Chile, Djibouti, Dominica, Ethiopia, Indonesia, Kenya, Nicara- gua, St. Lucia, Tanzania, and Turkey. The com- participants from developing countries were mitments by the CTF mean that the Global Geo- joined by investors, technical experts, and multi- thermal Development Plan has mobilized almost lateral and bilateral development partners to share half of its ambitious $500 million target in its knowledge, best practices, and information on first year alone. scaling-up geothermal energy investments. The roundtable took stock of potential and ongoing The first Roundtable of the Global Geothermal projects to prioritize next steps. Sessions were Development Plan was held in The Hague, Neth- also held on financing, and design and supervi- erlands, on November 19 - 20, 2013. Around 70 sion of drilling programs. 14  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM MAPPING THE RENEWABLE initiative is designed to give countries detailed FUTURE data, at a national scale, about their wind, solar, biomass, and/or small hydropower potential— ESMAP’s $22.5 million Renewable Energy bringing together satellite data and supplement- Resource Mapping initiative also has grown in ing it with ground-based measurements to pro- size and scope since its launch in FY2013, scal- duce high quality maps and the accompanying ing up from 9 countries to 12 in FY2014, with datasets that have a long shelf life. The goal is new funding available for expanded work in to help governments establish appropriate frame- many of these countries (Table 2.1). This works for renewable energy development, and TABLE 2.1 Renewable Energy Resource Mapping Activities COUNTRY BIOMASS SMALL SOLAR WIND HYDROPOWER Ethiopia, Lesotho, Nepal, ✓ Papua New Guinea Indonesia ✓ ✓ Madagascar ✓ Malawi, Maldives, Zambia ✓ ✓ Tanzania ✓ ✓ ✓ Pakistan ✓ ✓ ✓ Vietnam ✓ ✓ Accelerating the Transition to Clean Energy and Low Carbon Development 15  to provide open access to mapping data to stim- practitioners and policymakers from Egypt, India, ulate commercial development. Morocco, and South Africa. This event followed up on World Bank- and ESMAP-supported work For example, in Vietnam, initial wind maps were on CSP in the Africa, Middle East, and South presented to the government, and locations iden- Asia regions (see ESMAP 2011 and 2012 Annual tified where further wind measurements are Reports) to ensure that countries are learning needed to produce a nationwide wind atlas. Ini- from each other as they implement this relatively tial outputs are expected for all participating coun- new technology. tries during the course of 2015. In Mexico, ESMAP supported an International As part of this program, ESMAP has partnered with Renewable Energy Forum organized by Mexico’s the International Renewable Energy Agency Ministry of Energy that brought together policy- (IRENA) so that mapping outputs from participat- makers from across Latin America, the United ing countries are available through the IRENA States, and India. The Forum, held in May 2014, Global Atlas. ESMAP is also working closely with covered emerging technologies, financing, and the US National Renewable Energy Agency (NREL) social impacts of renewable energy develop- and the European Space Agency (ESA) in this field. ment—with a particular focus on new models of At the country level, partnerships are being initi- integrating renewable energy into national grids. ated with local institutes of energy, meteorological departments, and universities to build a growing Online, a major milestone was reached in March and representative community of practice around 2014 with the launch of the Renewable Energy renewable energy resource mapping. Project Resource Center, which is designed to help governments and developers by making available actionable, project-level documents such APPLYING CLEAN ENERGY as sample terms of reference, that are otherwise KNOWLEDGE TO POLICY hard to find (Box 2.1). ESMAP is also developing an online platform for low carbon planning tools, Demand for clean energy analytical and advi- which brings together ESMAP tools such as sory services has grown in scope and complex- TRACE, META, MACTool, and EFFECT, in a wiki ity, and ESMAP is developing new ways to deliver environment that allows users to modify, improve, the latest knowledge to clients. One emphasis is and collaborate on these and other tools. on knowledge exchange—particularly “South- South” exchanges—that allow client countries ESMAP continues to provide comprehensive renew- to exchange experiences and best practices in able energy training for WBG energy staff, clients, policymaking, regulation, and institutional and development partners. The latest training was development. held in Bangkok in April 2014 for staff in the East Asia and South Asia regions, with experts present- In October 2013, ESMAP helped organize a ing the latest global thinking on the relationship knowledge exchange in Morocco on concentrated between renewables and regional power markets, solar power (CSP), bringing together new models for distributed generation, and 16  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 2.1 KNOWLEDGE RESOURCES TO HELP SCALE UP RENEWABLE ENERGY Renewable energy in developing countries reached $112 billion in 2012, representing 46 percent of total global investment. Yet, even with this growth, governments and private investors still operate in an information vacuum when it comes to finding practical resources to support the design and implementation of projects. In response, ESMAP launched the Renewable Energy Project Resource Center, in partnership with Energypedia, an independent non-profit energy information resource. The Project Resource Center complements other tools available by focusing on working-level project documents such as sample terms of reference, sample procurement documents, surveys and ques- tionnaires, examples of economic and financial analyses, and case studies with lessons learned. Having such documents readily available can reduce transaction costs associated with having to create, for example, new contract templates from scratch. The Project Resource Center is hosted on Energypedia’s open wiki-based platform, allowing anyone to easily locate documents through browse and search functions, and to add new ones, thus contrib- uting to a shared body of knowledge. The platform also allows for facilitated interactions through dedicated spaces for discussion and private messages to other users. Other partners include the Public-Private Partnership Infrastructure Resource Center (PPPIRC), the Renewable Energy and Energy Efficiency Partnership (REEEP), and OpenEI.org. Documents are tagged to specific technologies (e.g., hydroelectricity, wind, geothermal, storage), connection types (e.g., grid connected, off-grid, small island systems), language, and region/country. As the document library grows, additional categories can be added to better filter the global knowl- edge available. The Renewable Energy Project Resource Centre is accessible via: https://energypedia.info/wiki/ Renewable_Energy_Project_Resource_Center. successful national examples of renewable energy impacts of hydropower has been disseminated scale up. across ministries and is being considered by the government for implications for the current legal At the country level, ESMAP-supported analytical system. In Vietnam, a report on the country’s work is targeted to meet the needs of clients as options for low carbon growth focused on oppor- they face sometimes unforeseen challenges and tunities for energy efficiency improvements and access opportunities in expanding renewable investments in clean technologies. The report has energy. In India, an ESMAP report looked at the informed the preparation and implementation of benefits involved in developing local supply chains the government’s Green Growth Strategy, as well to support CSP (Box 2.2). In Turkey, a ground- as the World Bank’s climate change development breaking ESMAP-supported report on cumulative policy operations series for Vietnam. Accelerating the Transition to Clean Energy and Low Carbon Development 17  BOX 2.2 POWER AND JOBS: THE POTENTIAL OF CONCENTRATED SOLAR POWER IN INDIA Concentrated solar power (CSP) holds out the promise of stable, clean, and locally sourced power for countries with abundant sunlight. CSP has the added advantage of being able to dispatch a size- able amount of power to the national grid as needed. The major drawback has been cost. In contrast to widespread solar photovoltaic (PV) technology, CSP still does not have the economies of scale to deliver electricity at competitive prices in most countries. However, an ESMAP report published in October 2013 argued that this situation could be turned around in at least one sunny country with a very large market: India. The study, Development of Local Supply Chain: A Critical Link for Concentrated Solar Power in India, argues that India has great potential to manufacture its own components for CSP, given the right policy incentives, public support for demonstration CSP plants, and increased investment in research and development. This could give birth to a new industry, serving domestic and interna- tional markets. It could lower the costs of some components by up to 40 percent and it could create thousands of new jobs. The study supported work being done under the Government of India’s Jawaharlal Nehru National Solar Mission (JNNSM), launched in early 2010, with a goal of building out 20 GW of grid-connected solar power by 2022. Achieving that goal, by itself, would add 20 percent to currently installed worldwide solar capacity. Another goal of the government program is to reduce the price of solar- generated power to grid parity levels through policy changes, research and development, and domestic production of materials. To achieve these goals, the study recommends that India needs to build domestic capacity to supply its own CSP components rather than import most of them, as is now the case. In addition to its energy benefits, such local manufacturing would also boost India’s economic growth. 18  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 2.3 HIGHLIGHTS OF NEW ESMAP-SUPPORTED CLEAN ENERGY ACTIVITIES BY THE WORLD BANK’S REGIONAL UNITS, FY2014 Deploying New Solar Technologies for Isolated Rural Areas in Bolivia. Although Bolivia has been able to reduce both poverty and inequality, poverty remains high, particularly in rural areas, and varies widely across regions. Even with electricity coverage in the country at 80 percent, there is a large unserved population concentrated in the poorest Autonomous Departments. In light of this, the government has identified the need to provide universal access to electricity by 2025. The objec- tive of this project is to expand electricity access to thousands of currently unserved areas of the country. The expansion will be carried out in a manner that supports the implementation of the national decentralized framework. The project will benefit a large number of households and public institutions (mostly schools) in predominantly rural areas of Bolivia, focusing on the poorest two and least served of the country’s nine Autonomous Departments. Capacity building activities will also benefit institutions, both at the central and subnational levels. It is expected that by 2021, the project will have supported the provision of electricity to roughly 27,000 households, of which 14,500 would be connected to the grid and 12,500 would obtain solar PV home systems. Geothermal Project Preparation in LCR. Electricity demand in LCR has been growing by 4 percent per year on average since 1990 and is projected to more than double by 2030 under modest gross domestic product (GDP) growth assumptions. Meeting this demand will require the addition of substantial new generation capacity from a mix of generation sources. Geothermal can play an important part in diversifying the power generation mix in a number of countries in the region. This activity will carry out a region-wide assessment of geothermal power generation potential and iden- tify ways to scale-up its development. The results of this assessment, along with approaches applied globally to address the barriers to developing geothermal capacity, will be shared with clients. The aim is to expand utilization of geothermal energy to generate electricity in the region, in line with national goals. Uruguay Low Carbon Study. A study on Low Carbon Development Options for Uruguay, undertaken in close cooperation with the government, will identify low-cost options and feasible mechanisms for reducing the country’s net greenhouse emissions intensity while fostering high growth. The study will follow the organizational framework used by the ESMAP-supported low carbon growth studies undertaken by the World Bank in Mexico and Brazil. The study will take an in-depth look at specific sectors of Uruguay’s economy and provide recommendations based on the significance of the emissions reduction potential and the national resources available to take on these measures. The study is intended to provide inputs into the Fourth National Communication to the UN Framework Convention on Climate Change (UNFCCC) and design of Uruguay’s program of Nationally Appropriate Mitigation Actions. Accelerating the Transition to Clean Energy and Low Carbon Development 19  2A | WORKING TOWARDS A SUSTAINABLE ENERGY FUTURE FOR SMALL ISLAND STATES Small island developing states (SIDS) face distinct challenges and vulnerabilities in their energy sectors. Despite significant renewable energy reserves in wind, ocean, solar, geothermal, or biomass, many SIDS are dependent upon imported fossil fuels to generate power. This leaves SIDS vulnerable to price volatility, and the fiscal strain has significant economic impacts. This legacy, combined with a lack of institutional capacity and an often poor investment climate, constrains SIDS in their transition towards a more sustain- able energy future. To help small island states take steps towards securing a stable energy sector, ESMAP partnered with the UN Development Programme (UNDP) and the Alliance of Small Island States (AOSIS) to launch the SIDS DOCK Support Program in September 2011. The SIDS DOCK Support Program is financed by the Governments of Denmark and Japan. FY2014 Activities In FY2014, ESMAP supported six clean energy projects in the SIDS. Dominica | Geothermal Project. The Government of the Commonwealth of Dominica, with the assistance of development partners, has completed the drilling of exploratory wells in the Wotten Waven/Laudat field, which have indicated the viability of a geothermal power plant that could supply domestic demand. SIDS DOCK Support Program financing was used to perform a gap analysis to assist the government, which focused on five areas: (i) resource assessment and technical feasibility of the project; (ii) integration of the proposed project into electricity markets; (iii) finance and risk; (iv) policy and institutional implications; and (v) environ- mental and social safeguards. As a result of the gap analysis, technical assistance was provided to support geothermal development, including upgrading the project feasibility study to be more in line with industry standards, peer review of drilling operations, guidance on deal structure, and financial and tariff analyses. Eastern Caribbean | Energy Regulatory Authority Project. A World Bank project is supporting the creation of a legal framework and building capacity for the Eastern Caribbean Energy Regulatory Authority (ECERA), which is intended to help harmonize policies, regulations, and guidelines for energy sector development in the Eastern Caribbean. A SIDS DOCK Support Program grant is being used to deepen the engagement of member countries in ECERA and support outreach to key stakeholders such as utilities, policymakers, and utility customers through regulatory training, workshops, and public awareness campaigns. This work includes development of sample policies, such as grid feed-in mechanisms and renewable energy port- folio standards, and organizing forums for policymakers and utility managers. Mauritius | Preparation of a Grid Code, Feed-In Tariffs, and Model Energy Supply Purchase Agreements. Hydropower and biogas are Mauritius’ primary renewable energy resources, and generate one-fifth of the country’s total power. With most biogas and hydropower reserves already being tapped, the government is keen on diversifying its energy mix. In implementing its Long Term Energy Strategy 2009-25, the govern- ment is taking great strides to promoting renewable energy by enabling small independent power producers to integrate into the power grid. To facilitate the groundwork for this integration, ESMAP provided a SIDS DOCK recipient-executed grant for the development of a grid code for wind, solar and micro-hydropower; the design of feed-in tariffs for wind, solar, micro-hydropower, biomass, and waste-to-energy systems; and the preparation of a package of models and templates of power purchase agreements for renewable energy systems between 50 kW and 2 MW. 20  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM São Tomé and Príncipe | Power Sector Efficiency Improvement. Economic growth in Sao Tome and Principe is stymied by severe energy sector challenges, such as insufficient generation capacity to match demand, inadequate resources to cover fuel costs, limited electricity coverage, high transmission and distribution losses, and inadequate electricity tariffs. To help address these challenges, ESMAP supported a network protection study to improve reliability, as well as a detailed engineering study to rehabilitate the transmis- sion and distribution network. These studies recommended a set of actions to upgrade the system and reduce commercial losses, including the replacement of all mechanical meters, new processes for meter reading and billing, and the replacement of a number of transmission lines. Another recommendation was the rehabilitation of the El Contador hydropower plant, an investment that could be recovered within two years. Seychelles | Technical Assistance to Support Integration of Renewable Energy into the Power Grid. In the Seychelles, fossil fuels account for 90 percent of the country’s energy supply, making the sector exposed to fuel price fluctuations. ESMAP is supporting the Seychelles to diversify its energy mix by preparing a grid code, designing feed-in tariffs, and designing models for power supply purchase agreements. The report’s recommendations include a conservative approach to the integration of solar PV-generated power into the grid to allow the utility to better understand the impact in operations. This should be followed by evaluation of several alternatives to manage PV and wind generation and increasing demand, such as investment in additional diesel generators that may be required to operate at part load, and more advanced technological options such as battery storage. Vanuatu | Energy Sector Development. ESMAP is supporting the development and implementation of a Vanuatu Energy Roadmap for coordinating investment in the energy sector by the government, private sector, and development partners in line with the priorities identified by the government. This work will include support to develop policy and frameworks for private sector investment, social and environmental safeguards, a compliance framework and monitoring, and proposals for amendments to legislation, regu- lations, and standards where required. Among the activities in FY2014 was a study tour to Fiji to review that country’s experience in rural electrification and adoption of renewable energy. New Activities for FY2015 Tuvalu | Electricity Sector Development. In line with the Government of Tuvalu’s vision for 100 percent renewable energy generation and a 30 percent improvement in energy efficiency by 2020, this work will focus on increasing renewable energy penetration and energy efficiency in Funafuti, Tuvalu. This will include installing additional renewable energy generators, battery storage, and an integrated power conditioning system, as well as conducting energy efficiency studies. The work is expected to result in an increase in renewable energy penetration in the grid by up to 25 percent. WORKING TOWARDS A SUSTAINABLE ENERGY FUTURE FOR SMALL ISLAND STATES 21  Dominica/St. Lucia/Grenada | Geothermal Development for Base Load Power. This support will build upon existing WBG/ ESMAP work to provide critical (i) upstream advisory assistance for developing favor- able conditions for investment mobilization and strengthen the capacity of governments to make informed investment and transaction decisions; and (ii) boost the capacity for preparing exploration/resource confir- mation investments in line with good industry practices and international standards. Together, this will support the three countries in developing “investment grade” geothermal projects. Caribbean | Regional Solar PV Scale-Up Project. This project will support a regional pilot program with the objective of designing a sustainable technical approach and business model for the use of solar PV in hospitals and clinics. The program will support two demonstration projects—one hospital each in two countries—to assess how solar PV can be deployed at hospitals and clinics that are connected to the national grids. These installations will serve not only to facilitate a technical analysis of their suitability for Caribbean hospital applications, but will also be linked to a business model and replication study. Maldives | Renewable Energy on Island Grids. The objective of this project is to support the government’s overall goal for a cleaner and greener energy sector. Electricity generation from solar PV, and wind in some locations, is less expensive than diesel-based energy generation on avoided cost of fuel. The project will support the installation of solar PV grid connected systems on the rooftops of the various public buildings on two islands. In addition, the project aims to provide system operation and maintenance training to utility staff and conduct public awareness programs on energy conservation and efficiency. Cabo Verde | Solar PV for Healthcare. The proposed project focuses on the installation of PV systems for three healthcare facilities with the objective of scaling up of the program. Potentially, this model could be attractive for smaller Cabo Verde Islands where electricity supply is more expensive and unreliable than in the larger Islands. This activity is complementary with an ongoing World Bank energy operation which is supporting generation reinforcement in the two main Islands of Cabo Verde. The key expected outcome of the project is a successful demonstration of PV for health care facilities that enables scale-up through public-private partnerships in the islands. 22  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM 2A | WORKING TOWARDS A SUSTAINABLE ENERGY FUTURE FOR SMALL ISLAND STATES 23  CREATING CHAPTER 3 PATHWAYS TO SUSTAINABLE ENERGY ACCESS FOR ALL 25  SUPPORTING NEW WAYS TO KEY ENERGY ACCESS MEASURE ENERGY ACCESS ACHIEVEMENTS IN FY2014 • Development of the Multi-Tier Frame- As part of its support for the SE4ALL initiative, work for Measuring Energy Access, ESMAP supported the development of a multi- which goes beyond binary metrics to look tier methodology for measuring energy access. at the quality, affordability, and reliabil- The new framework defines access as “the abil- ity of energy supply to inform global and ity to obtain energy that is adequate, available national energy access programs when needed, reliable, of good quality, afford- • Expansion of the SE4ALL Technical Assistance Program, which supports able, legal, convenient, healthy, and safe for all countries as they move towards universal required energy applications across households, energy access, from 5 countries to 10, in- productive enterprises, and community institu- cluding support to Myanmar’s National tions.” The multi-tier approach goes beyond the Electrification Plan traditional binary measurement of access—for • The Energy Access for the Urban Poor example, comparing those that have an electric- scheme informed the $5.1 million World ity connection with those who do not—to a mea- Bank/GPOBA engagement with Kenya surement approach that reflects all aspects of Power, which is addressing unmet demand for adequate and reliable energy services energy supply. in Kenya’s fast-growing urban and peri- urban informal settlements Under this approach, energy access is determined • Supported publication of From the Bottom by examining how a household’s electricity and Up, which provides practical guidance on cooking technology measure up against the fol- how small power producers and mini-grid lowing eight attributes: capacity; duration and operators can deliver electrification in availability; reliability; quality; affordability; rural Africa. The study has since become legality; convenience; and health and safety. Sur- the third most requested title in the World Bank’s Directions in Development series vey questionnaires have been developed to elicit information about each of these energy aspects, with results to be fed into the multi-tier analy- sis. By applying this framework, energy access diagnostic assessments may be compiled for selected geographical areas to identify shortfalls household cooking solutions, (iv) energy for pro- of energy supply and highlight opportunities for ductive uses, and (v) energy for community uses. improvement. Preliminary questionnaires related to the electric- ity and cooking frameworks were tested and In FY2014, the ESMAP team developed five differ- improved based on data collection in Democratic ent multi-tier frameworks for measuring (i) house- Republic of Congo (Kinshasa), Uganda, Ethiopia, hold electricity, (ii) modern lighting solutions, (iii) Rwanda, and India (Bihar region). 26  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM The benefits of the multi-tier approach were pre- documents for public-private partnerships that will sented at a number of knowledge exchange inform preparation of an investment prospectus for events, including a training for World Bank staff a least-cost electricity network expansion plan. In in February 2014 on how to use the ESMAP Myanmar, the program provided support for devel- approach in planning energy access investments, opment of a geospatial least-cost National Electrifi- project design, and tracking progress. cation Plan, a universal access roadmap, and an investment prospectus for the next five years. In Guatemala, Honduras, and Nicaragua, the program SCALING-UP NATIONAL ENERGY helped initiate planning for investment prospectuses ACCESS PROGRAMS that will improve household uptake of clean, effi- cient cookstoves, in close cooperation with IDB and ESMAP’s $15 million SE4ALL Technical Assistance the Global Alliance for Clean Cookstoves. Program supports a targeted group of countries in achieving the SE4ALL goal of universal energy REACHING THE URBAN POOR access by 2030. In FY2014, the SE4ALL Technical Assistance Program expanded beyond its first five ESMAP’s Energy Access for the Urban Poor Tech- countries— Burundi, Guinea, Liberia, Mozam- nical Assistance Program helps address unmet bique, and Senegal—adding Guatemala, Hondu- demand for adequate and reliable energy services ras, Myanmar, Nepal, and Nicaragua to the group in fast-growing, informal urban settlements and of “opt-in” countries currently benefiting from peri-urban population. The program seeks to ESMAP assistance. The program is working to help increase or improve access to electricity and clean each country develop the policy frameworks, cooking solutions for the urban poor by bridging strengthen the institutions, and mobilize the knowledge gaps and supporting the design and financing necessary to expand and accelerate their implementation of energy and urban investment national energy access programs. projects of the World Bank and other develop- ment partners. The program also contributes to A key component of this work is helping each the implementation of the Cities Alliance’s Land, country develop a prospectus of investment-ready Services and Citizenship Program in selected projects that can substantially scale up energy countries. In FY2014, ESMAP supported imple- access over a three- to-five-year period. The pro- mentation of the World Bank and GPOBA- spectuses will also estimate the investment fund- financed Kenya Slum Electrification Project. This ing requirements for each intervention and iden- support involved an assessment of the barriers tify appropriate financing sources. preventing the uptake of electricity connections and a weeklong South-South knowledge exchange In Burundi, for example, the program carried out event in Nairobi that convened experts from Bra- pre-feasibility studies and produced model zil, Colombia, Kenya, and South Africa (Box 3.1). Creating Pathways to Sustainable Energy access for All 27  BOX 3.1 SHARING GLOBAL BEST PRACTICES TO BRING ENERGY TO NAIROBI SLUM COMMUNITIES With 1.5 million residents, Kibera—in Nairobi, Kenya—is among the largest slum settlement in Africa. Like many poor urban communities, people in Kibera lack access to the same services that many of their more affluent neighbors take for granted, such as reliable sources of electricity. And while the country’s national electricity utility, Kenya Power, has made several attempts to extend power to Kibera, efforts have been hampered by challenges, including electricity and equipment theft, and difficulties in revenue collection. In May 2014, ESMAP and GPOBA organized a South-South Knowledge Exchange in Nairobi. Held in support of a $5.1 million World Bank engagement with Kenya Power to extend electricity access to Kibera and other informal settlements, the event brought together experts from Brazil, Colombia, South Africa, and more than 50 representatives from Kenya Power. Over the course of the week-long workshop, international experts from the LIGHT distribution company (Brazil), Empresas Públicas de Medellín (Colombia), and ESKOM (South Africa) shared experiences in bringing electricity to impoverished neighborhoods. Representatives from organi- zations working on improving services and infrastructure in Nairobi’s slums brought a local perspec- tive to the event. A visit to Kibera helped participants understand the full range of challenges faced by community residents and Kenya Power. In a series of working sessions, teams were formed to explore specific challenges and develop solu- tions that would work in the Kenyan context. A major focus was on community engagement. Non-governmental organizations (NGOs) and civil society groups from Kibera and other slums attended a session to provide insights on how to work within slum environments and shared tips on engaging stakeholders in the slums. As Gladys Juma, a social specialist working in informal settlements, put it, “Don’t underestimate the people of the slums. Get to know them through their leaders. When people are on your side and trust you, they will do what’s necessary to get the job done.” The World Bank project with Kenya Power will continue through early 2016, with a goal of estab- lishing 40,000 new household connections. Elements of the international experiences presented at the event were picked up by Kenya Power and integrated into its slum electrification operations, as the utility strives to improve engagement with community-based organizations in order to encourage a switch to legal connections. 28  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 3.2 HIGHLIGHTS OF NEW ESMAP-SUPPORTED ENERGY ACCESS ACTIVITIES, FY2014 Scaling Up Use of Clean Cookstoves in Central America. An estimated 50 percent of Central American households rely on biomass to meet their cooking needs. ESMAP technical assistance through the Central America Clean Cooking Initiative is helping remove the barriers that have traditionally prevented the scale-up of clean cooking solutions in the region. Outputs include country roadmaps and investment prospectuses for Guatemala, Honduras, and Nicaragua that determine the policy and financing support required to meet each country’s goals and targets. Based on the capacity requirements and knowledge gaps identified in the recent ESMAP-financed study, What Have We Learned about Household Biomass Cooking in Central America?, the initiative is also supporting research and development to improve the design of cookstoves. Developing a National Electrification Plan in Myanmar. Although it is one of the poorest countries in Asia, Myanmar possesses an abundance of hydropower and natural gas resources. And with its geographic location between China, India, and Thailand, the country is well positioned to resume its traditional role as a regional trading hub and key supplier of electric power. This activity supports Myanmar’s government in developing a National Electrification Plan to achieve universal electricity access by 2030. The Plan includes a GIS-based, least-cost electrification planning framework, a universal access road map, and an investment prospectus for the first five years to mobilize financing from development agencies, the government, and the private sector. Boosting Clean Cookstove Uptake in Nepal. An estimated 80 percent of Nepal’s population relies on biomass to meet its cooking needs, and indoor air pollution related to these practices causes more than 7,000 premature deaths every year. This grant supports technical assistance activities to help the government scale-up deployment and use of improved cooking solutions. Activities include development of: a roadmap and an investment prospectus to increase the penetration of clean cooking devices; prototypes for improved biomass cookstoves; and policy and regulatory recommendations to help the government create a credible enabling environment for private sector investment. Support is also being provided to the Alternative Energy Promotion Centre, the govern- ment agency responsible for promoting and developing renewable energy technologies, to help in the evaluation of the costs and benefits related to deployment of various cookstove models. Building Capacity to Expand Electricity Access in Niger. The government has outlined a $1.46 billion investment plan to increase domestic energy supply and expand electricity access from the current 10 percent level. Through AFREA, ESMAP is helping the national electricity utility NIGELEC prepare an investment program to ensure that new generation capacity translates into better electricity access for all sectors of society. This includes working with NIGELEC on a short-term $100 million investment program to increase access in urban and peri-urban areas, address network bottle- necks, and extend first-time connections to 500 localities with populations of over 1,000. Additionally, the ESMAP activity will produce an analysis of average electricity costs, capacity building measures to strengthen the sector’s legal and regulatory framework, and a list of areas to be targeted under a wider energy expansion program in the future. Creating Pathways to Sustainable Energy access for All 29  3A | AFRICA RENEWABLE ENERGY AND ACCESS PROGRAM Phase I of the Africa Renewable Energy and Access Program (AFREA I) came to a close in FY2014. Established in 2008 through a $28.9 million contribution by the government of the Netherlands, AFREA I supported the development of scalable and innovative solutions to meet Africa’s energy challenges. Over the course of FY2014, AFREA II was launched with the objective of supporting the scale-up of energy access and clean energy through a combination of World Bank- and client-executed activities. Four of AFREA I’s successful region-wide activities serve as the backbone for ESMAP’s continued support to the region under AFREA II. Lighting Africa Lighting Africa—a joint initiative of the World Bank and the International Finance Corporation (IFC) initi- ated in 2007—has stimulated the market for high quality, pollution-free, solar lighting products for homes and businesses across Africa. To date, over 11 million Lighting Africa-certified lanterns and solar home systems have been sold in sub-Saharan Africa, and the program is actively supporting market development in Kenya, Burkina Faso, Ethiopia, Mali, Nigeria, Senegal, Tanzania, Liberia, the Democratic Republic of Congo, South Sudan, and Uganda. Eighty-four high-quality solar products have now been certified using International Electrotechnical Commission specifications developed under Lighting Africa. In FY2014, the program financed the prep- aration of a range of public service announcements to raise consumer awareness about the existence and benefits of quality-verified lighting technologies. The program also launched the expansion of a Quality Assurance Framework to develop technical specifications, standards, and testing methodologies for emerging plug-and-play, direct current, solar home systems. Lighting Africa’s successful market transformation model has informed similar World Bank-funded programs currently underway in South and East Asia. Africa Clean Cooking Energy Solutions Over the past three decades, donors and multilateral organizations have sought to bring affordable, fuel- efficient stoves into the consumer mainstream. But market uptake in Africa has remained stubbornly low due to a range of factors, including limited consumer awareness, a lack of willingness to pay, and a host of performance and quality issues. As such, more than 700 million people in Africa—an estimated 80 percent of the population—depend on inefficient three-stone fires or rudimentary stoves that require large quan- tities of firewood or other solid fuels such as charcoal, dung, or crop waste. This biomass exposes users and other household members to dangerously high levels of pollutants, including small soot particles that penetrate deep into the lungs. In the Democratic Republic of Congo, ACCES helped design the component of a Forest Investment Program that will promote improved cooking solutions in the Kinshasa area. In Senegal, ACCES is providing tech- nical assistance through PROGEDE2, a World Bank project that promotes the sustainable use of biomass resources. ACCES support includes recommendations on institutional arrangements for long-term sustain- ability and the commissioning of two preparatory studies, one of which looks at the potential for promoting alternative fuels in four different regions and the second which looks at the state of the market for improved cookstoves. The first report shows that alternative fuels, like briquettes, have high potential in certain cities and can be supported under ACCES’ enterprise-based model, while other solutions, such as biogas, can be more effectively implemented if spearheaded through government initiatives. 30  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM In Uganda, ACCES commissioned two analytical studies that helped gain insight into consumer cooking preferences and explored potential for implementing a results-based financing mechanism to increase clean cookstove adoption. ACCES is currently helping set up a project for scaling up the market penetra- tion of cleaner and more efficient cookstoves in Uganda by supporting working capital for distributors via a competitive grant mechanism. Africa Electrification Initiative AFREA established the African Electrification Initiative (AEI) in 2008 to increase the effectiveness of rural electricity access programs in Sub-Saharan Africa through capacity building and knowledge exchange activities. In FY2014, the AEI convened a series of practitioner workshops that brought together energy practitioners—representing ministries of energy, electrical utilities, Rural Electrification Agencies (REAs), and energy regulatory agencies—from across the region. The AEI Low Cost Electrification Technology Workshop held in Arusha, Tanzania, in September 2013, attracted practitioners from 16 English-speaking countries, and presented low-cost grid extension technologies that have been used to bring down electrification costs in countries such as New Zealand, South Africa, Namibia, Ghana, Tunisia, and the United States. A follow-up practitioner workshop targeting Francophone countries was held in Cotonou, Benin, in March 2014, bringing together nearly 80 practitioners from 17 countries in the region. The Arusha and Cotonou events included “hands-on” exercises where participants used prac- tical models and tools developed by the AEI team to apply various low-cost grid extension technology options to a number of different scenarios. In response to strong interest from the Ministry of Mines, Energy and Water Development of Zambia, the AEI team has commenced a technical assistance and advisory project in Zambia. The project aims to support the government’s efforts to assess the potential for incorporating low-cost electrification technologies into its grid extension program. As the first step of this activity, AEI held a targeted technology and policy workshop in Lusaka in May 2014, where representatives of energy stakeholders from Namibia, Ghana, Ethiopia, and Togo shared their countries’ experiences with implementing low-cost electrification technology. In addition to capacity building and technical assistance work, AEI has also produced a range of knowl- edge projects. In FY2014, AEI supported the release of the handbook From the Bottom Up: How Small AFRICA RENEWABLE ENERGY AND ACCESS PROGRAM 31  Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa. Published in January 2014, the book is now the fifth most downloaded publication from the World Bank’s Directions in Development series, with over 7,300 downloads to date. AFREA Gender and Energy Program Since 2009, AFREA’s Gender and Energy program has developed innovative approaches to integrate gender considerations into energy access operations across Africa. This work ensures that issues that dispropor- tionately affect women are treated as an integral part of the energy access portfolio. Over the course of FY2014, the Gender and Energy program worked with World Bank energy teams and government clients in Benin, Kenya, Mali, Senegal, Tanzania, and Zambia to pilot initiatives bringing gender considerations to the forefront of the project planning and implementation process. In Benin, AFREA supported a gender action plan that is increasing women’s participation in strengthening institutional capac- ities, and informing the revision of the country’s energy policy. In Kenya, gender assessments were completed and workshops supporting the development of gender action plans were carried out in support of the Ministry of Energy and Petroleum and the Kenya Power and Light Company. In Zambia, AFREA initiated a number of gender-mainstreaming activities under the Electricity Access for Low-Income Households Project that now enables women to enjoy the benefits of electricity access through participation in a connection- fee subsidy program. In April 2014, AFREA held a knowledge exchange workshop in Dakar, Senegal attended by more than 60 representatives from AFREA gender programs in 6 pilot countries. The workshop focused on subjects such as working with rural energy agencies, developing institutional capacity, establishing gender focal points within organizations, carrying out community-level pilots, and working with electricity utilities to develop targeted gender training on electricity subsidies and access to finance. New Initiatives The new framework developed for AFREA II supports the scale-up of energy access and clean energy built upon the following pillars: (i) supporting investments; (ii) improving policy and building institutions; (iii) leveraging markets; and (iv) knowledge and capacity. An additional two cross-cutting themes—gender and productive uses, and supporting post-conflict and fragile states—will enhance AFREA II’s impact. Wherever possible, AFREA resources will be used to leverage the expertise and experience of staff working on the World Bank’s Africa Energy Portfolio and IDA funding, which is the portfolio’s primary source of financial support. New AFREA II activities are being prepared in keeping with the following approaches: Regional Initiatives. One of AFREA II’s new regional initiatives is the Accelerating On-Grid Access Team, which serves as a rapid-response mechanism that provides just-in-time support to project teams seeking to increase the effectiveness of urban electrification and densification projects across the region. 32  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Regional Strategic Studies. These address many of the overarching strategic challenges facing the region. For example, The Role of Subsidies: Financing Electricity Supply & Providing Affordable Access in Sub-Saharan Africa assesses the subsidy policies that are currently in place, as well as the need for power sector pricing reform. Country-Focused Activities. AFREA II supports a number of country-focused activities. The Nigeria Electrification Access Program Development Project assists the government in planning for a national- level electrification scale up using GIS-based tools as part of the comprehensive planning process. The program builds upon successful Sector Wide Approaches (SWAp) pilot projects in Kenya and Rwanda. Another country-focused activity is the Uganda Clean Cooking Sector Support program, which is using ACCES tools to transform the country’s clean cookstove market. AFRICA RENEWABLE ENERGY AND ACCESS PROGRAM 33  3B | GENDER AND SOCIAL INCLUSION IN THE ENERGY SECTOR As part of its current FY2014-16 Business Plan, ESMAP has developed a new $1.5 million global program on Social Inclusion in the Energy Sector, with an initial focus on gender. The primary objective of the program is to establish a core body of evidence to demonstrate that promoting improved gender equality in energy projects improves development outcomes. The program also seeks to develop state-of-the-art approaches for how to improve gender equality in energy projects. In FY2014, ESMAP partnered with the World Bank’s Social Development department to launch a report on Gender and Electricity Infrastructure to explore the gender-specific land and labor impacts of generation, transmission, and distribution projects. ESMAP has also collaborated with the World Bank Institute to develop an e-learning module to address gender issues within specific topics such as energy access, energy infrastructure, and energy policy. The course will be offered to World Bank staff, clients, partners, and development practitioners starting in 2015. An online gender and energy forum has also been established to connect experts in this field and facilitate knowledge and exchange accessible via: https://collaboration.worldbank.org/groups/ gender-and-energy. ESMAP has continued to screen its portfolio for gender-informed activities and support Bank teams in integrating gender within their activities. In FY2014, ESMAP funded gender assessments of energy programs in India, Nepal, and Pakistan, as well as operational support to integrate gender considerations into Bolivia’s rural electrification program. There is growing client demand for such work. Going forward, the Gender and Social Inclusion in the Energy Sector program will continue to ramp up its effort to support foundational research on gender and energy issues. Dissemination of knowledge remains critical to this program, through the guidance notes, online tools, and videos produced under this program, as well as the various workshops and events to help share lessons and collaborate with other develop- ment partners engaged in this area. 34  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM GENDER AND SOCIAL INCLUSION IN THE ENERGY SECTOR 35  FOSTERING CHAPTER 4 ENERGY EFFICIENT CITIES 37  BUILDING THE FOUNDATION FOR MORE ENERGY EFFICIENT CITIES KEY ENERGY EFFICIENT CITIES ACHIEVEMENTS, FY2014 In November 2013, ESMAP launched its largest • Launch of the City Energy Efficiency Trans- urban energy efficiency program to date: the City formation Initiative, a three-year, $9 mil- Energy Efficiency Transformation Initiative. lion program to help cities identify, develop, This multi-year program provides support to help and mobilize financing for transformation- cities identify, develop, and mobilize financing al investment programs in urban energy for transformational investment programs in efficiency urban energy efficiency and to integrate energy • Allocation of $4.3 million in grants under efficiency considerations into the strategic plan- the City Energy Efficiency Transformation Initiative to support World Bank engagement ning process. Broadly divided into three areas of on municipal initiatives, including water and support—technical assistance, capacity building, sanitation efficiency, public lighting, build- and knowledge creation and dissemination—the ings, and carbon-reduction roadmaps program works with municipal governments to • Support for capacity building and develop- assess energy efficiency interventions and pre- ment of Mexico’s national municipal ener- pare investments for national, international, and gy efficiency program, which is getting private-sector financing. The program also pro- underway in 30 Mexican cities • Support to international knowledge ex- duces knowledge products and hosts knowledge- changes on energy efficiency, including exchange events, particularly between cities that events in China on national targets and ex- have successfully implemented energy efficiency periences, in India on public lighting, and programs and cities that are just beginning the in Mexico on municipal energy efficiency process. • Allocation of $1 million in grants to help World Bank transport and water teams in- In April 2014, the City Energy Efficiency Trans- tegrate energy considerations into their formation Initiative allocated six grants totaling programs, such as the continuation of the Leaders in Urban Transport Planning pro- $4.3 million to World Bank Group teams to gram, a bus-fuel efficiency scheme in India, finance a wide range of urban energy efficiency and efforts to strengthen Kiev’s public trans- programs. The grants will support activities in port system various cities in Brazil, China, Macedonia, South Africa, and Ukraine. In Brazil, the initiative will support the development of business models to improve energy efficiency in three sectors: pub- lic lighting, public and non-public buildings, and In China, the initiative will support Shenzhen as industry, with a particular focus on Rio de Janeiro it develops a comprehensive roadmap to achieve and Belo Horizonte. It will also analyze options its ambitious emission-reduction targets. Shen- for integrating land use and transport policies to zhen is at the leading edge of national efforts to reduce energy consumption and greenhouse gas achieve a reduction of carbon intensity of 40 to emissions in Sao Paulo. 50 percent by 2020 from the 2005 level. ESMAP 38  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM support will finance a study that will rank car- An additional grant was allocated to the IFC-led bon dioxide abatement measures across Shen- Excellence in Design for Greater Efficiencies zhen’s major energy-consuming sectors. Areas (EDGE) program, which works with governments covered will include transport, public lighting, and the private sector to support a market shift buildings, industry, and urban planning. towards resource and energy efficient (i.e., green) buildings. The grant will finance the development In Macedonia, ESMAP teams are working on two and rollout of a voluntary green building certifi- components: the first involves the development cation protocol and tool, and support the launch of municipal energy efficiency action plans, and of a voluntary green building certification pro- pre-feasibility studies on water and street light- gram in South Africa. ing. The second component consists of scaling up and dissemination efforts via workshops, guid- In FY2014, the initiative began developing a ance notes, and training. series of e-learning products that convert tech- nical knowledge into easily accessible material Another ESMAP grant is supporting three cities that will be made available to a wide range in Ukraine—Kiev, Ternopil, and Kamianets Podol- of stakeholders through the World Bank’s skki—with diagnostic assessments of energy effi- E-institute platform. The learning program is ciency potential to develop municipal energy effi- being developed in response to requests from ciency programs, an investment pipeline, and city and government officials eager to expand pre-feasibility studies in selected sectors to be and deepen their understanding of urban energy determined as a result of the assessments. efficiency issues. FOSTERING energy efficient cities 39  PINPOINTING ENERGY buildings sectors. In FY2014, TRACE was also EFFICIENCY IMPROVEMENTS IN deployed in the Indian cities of Bhubaneswar, URBAN SECTORS Cuttack, and Puri as part of the Odisha State Cli- mate Change Action Plan. In Mexico, TRACE was Developed in 2010, the Tool for Rapid Assess- used to look at potential energy efficiency invest- ment of City Energy (TRACE) supports the energy ments in the cities of Puebla and Leon. The assessment process in cities by identifying poten- TRACE process informed the Mexican govern- tial energy efficiency improvements, targeting ment’s June 2014 decision to launch energy use underperforming sectors, and then prioritizing diagnostics in 30 Mexican cities, including the from among a range of proven, cost-effective inter- state capitals of Guadalajara, Monterrey, and Oax- ventions. TRACE allows for the benchmarking of aca. This effort will lay the groundwork for energy a city’s energy efficiency performance against peer efficiency investments in key urban energy sec- cities using a database of 28 key performance tors, such as public lighting, municipal buildings, indicators collected from 93 cities around the and water and wastewater pumping sectors, world. To date, TRACE has been deployed in 32 among others, and feed into a larger World Bank cities around the world, including Nairobi, Rio program that aims to scale up energy efficiency de Janeiro, and Surabaya. in Mexico’s cities through a combination of tech- nical assistance and targeted investments. In FY2014, Bangkok became the largest city to date to undertake a TRACE-supported energy diag- In Brazil, ESMAP helped the cities of Belo Hori- nostic process. There, the TRACE assessment led zonte and Rio de Janeiro build upon the results of to the identification of energy efficiency potential TRACE deployments carried out in 2013. The tool in city’s solid waste, public lighting, and had helped identify significant energy efficiency opportunities in both cities’ building and public lighting sectors, and over the course of 2014 ESMAP helped conduct a series of pre-feasibility studies focusing on public lighting. The studies confirmed that Belo Horizonte and Rio de Janerio municipal governments could each save as much as 60 per- cent of their electricity costs through lighting sec- tor investments that would pay for themselves within 8 years. As a result, Belo Horizonte is devel- oping a citywide light-emitting diode (LED) pro- gram and Rio de Janeiro is considering a plan to do the same. Looking ahead, ESMAP is dedicating resources to develop TRACE 2.0. The upgraded tool will allow for the assessment of a greater range of 40  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM building types (adding residential and commer- BUILDING A GLOBAL KNOWLEDGE cial to the existing public buildings module), and COMMUNITY ON URBAN ENERGY will add the industrial sector. The tool will put EFFICIENCY a special emphasis on being able to provide refined estimates, thus leading clients a step In June 2014, ESMAP supported Mexico’s energy closer to pre-feasibility studies. TRACE 2.0, ministry, SENER, as it hosted the Conference on which will initially be tested in two or three Energy Efficiency in Cities in Mexico City. The countries, will also feature an improved data- conference, which focused on helping identify collection interface, more prominent energy effi- opportunities and overcome obstacles in imple- ciency calculators, and updated recommenda- menting energy efficiency programs and explor- tions. In addition, ESMAP is preparing a synthesis ing ways to build bridges between national and report based on the 32 TRACE deployments car- local governments, gathered over 200 partici- ried out globally to date. pants and 40 speakers from more than a dozen countries. Attendees included government offi- cials from Brazil, Chile, Ecuador, France, India, TRAINING LEADERS TO TAKE ON Japan, Mexico, and the United States. The event URBAN TRANSPORT CHALLENGES provided a platform for policymakers, financial institutions, government agencies, municipali- Along with rapid urbanization, cities in develop- ties, NGOs, and community representatives to ing countries have long been faced with the chal- share knowledge and experience on urban energy lenges of increasing congestion, deteriorating air efficiency (Box 4.2). quality, and ever-escalating road accident rates. Many municipalities attempt to tackle these prob- Also in FY2014, ESMAP and ASTAE sponsored lems on an ad hoc basis rather than as part of a a China-ASEAN (Association of Southeast comprehensive approach. Since 2012, ESMAP has Asian Nations) knowledge exchange event in supported the Leaders in Urban Transport Plan- Beijing. China is a world leader in reducing ning program, a World Bank global initiative that energy intensity, and the event was an oppor- is training municipal officials at the leadership tunity for participants from Cambodia, India, level to understand the comprehensive nature of Indonesia, Laos, Malaysia, Myanmar, Singa- urban transport challenges. To support this pore, Thailand, and Vietnam to learn how the approach, the program organizes training events country has worked toward attainment of its that enhance the capacity of senior planners to ambitious energy efficiency and emission- understand the linkages between factors such as reduction goals (Box 4.1). land use, environment, energy efficiency, and affordability that city planners have traditionally In March 2014, ESMAP co-sponsored the Global tended to view in isolation. Over the course of Conference on Energy Efficiency in Street Light- 2014, close to 250 leaders took part in workshops ing in New Delhi. The aim of the international in Ahmedabad, Dubai, Marseille, Mexico City, conference was to showcase successful street Seoul, Singapore, and Rabat. lighting projects in emerging and developed FOSTERING energy efficient cities 41  BOX 4.1 BRINGING CHINA’S ENERGY EFFICIENCY EXPERIENCE TO THE WORLD: KNOWLEDGE EXCHANGE WITH ASIAN COUNTRIES China has long been a world leader in reducing energy intensity. Between 1980 and 2010—a period in which its economy grew 18-fold—the country managed to limit its energy consumption to a 5-fold increase. For this reason, China’s energy efficiency programs have attracted the attention of its rapidly growing regional counterparts, such as India, Thailand, and Vietnam. In June 2014, the World Bank and China’s National Development and Reform Commission (NDRC) co-hosted a South-South knowledge exchange event to share lessons of China’s energy efficiency efforts with attendees from ASEAN member countries. ESMAP and ASTAE supported the event, which was attended by representatives from regional governments, bilateral and multilateral aid organizations, energy service companies, and financial institutions from throughout the region. At the outset, speakers at the workshop emphasized that China’s achievements in lowering its energy intensity were largely the result of government commitment, ambitious targets, and the effective implementation of energy efficiency and emission-reduction policies. Top Chinese energy efficiency experts outlined how national energy intensity reduction targets had been set for each province, and for the nation’s top energy-consuming enterprises. Other successful measures included the tightening of energy efficiency standards for appliances, buildings, and vehicles. In addition to national experts, a number of officials from Shaanxi province presented on how best to implement energy efficiency measures at the provincial level and in key energy-intensive industries. 42  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 4.2 MEXICO CITY OPEN DATABASE IMPROVES TRANSIT EFFICIENCY, HELPS COMMUTERS Mexico City residents make 32 million vehicle trips a day, of which over 20 million are via public transport. These use 12 subway lines, 4 rapid transit lines, 8 trolleybus and light rail lines, 1 suburban rail line, 100 formal bus routes, and over 1,400 “colectivo” minibus routes, along with 260 public bike stations. Since the 1970s, five separate agencies have supervised this network, grouped under SETRAVI, Mexico City’s public transit authority. And although each agency has made attempts to collect and store data on passenger counts, route licenses, travel times, and stop locations, these data have never been assembled in one place. In November 2012, the Bank’s Latin America and Caribbean Transport Unit, with ESMAP support, began providing SETRAVI with technical assistance to develop a new digital platform to collect and manage urban transport data. This new system is built to the General Transit Feed Specification (GTFS), the de facto standard for cities in recording transit data. Teams enrolled by SETRAVI crisscrossed the capital using an open-source application on their mobile phones to collect real-time data such as routes, speed, location of bus stops, and frequency of train departures. The data collected were then fed into a data management portal and converted into GTFS. Despite its simplicity and ease of use, there was one major hurdle to adapting GTFS for Mexico City. The standard was too rigid to incorporate data related to non-scheduled services such as the thou- sands of minibuses traversing the city. As such, another objective of the World Bank scheme was to pilot a “GTFS-Lite” specification that could measure forms of transport that operated with flex- ible routes and stopping points. With GTFS-Lite, Mexico City’s urban planners have access to comparable data on minibuses. This helps them visualize route configurations to determine where best to add or eliminate services, how to plan for integration with more structured transit services, regulate and improve service, and plan for the longer term future. Mexico City’s GTFS data have been made public, so that third-party software developers can use them to innovate and create applications—such as trip planners and timetable publishers—that can be used on smartphones and other devices. Millions of transit users will soon be able to use these applications to make better informed trip choices, avoiding long waits at bus and train stops. FOSTERING energy efficient cities 43  BOX 4.3 HIGHLIGHTS OF NEW ESMAP-SUPPORTED ENERGY EFFICIENCY ACTIVITIES, FY2014 Supporting Development of an Energy Efficiency Action Plan in Iraq. Electricity supply in Iraq continues to fall well below the country’s needs, with existing generation capacity satisfying only 73 percent of peak demand. The challenges faced in the electricity sector go beyond the infrastructural damage that resulted from years of conflict. They also include a range of financial, economic, legal, and regulatory issues and, more significantly, a lack of institutional capacity and coordination. The ESMAP activity is helping Iraq’s Ministry of Energy develop a prioritized Energy Efficiency Action Plan to reduce demand growth over the short to medium term. The activity includes robust awareness programs to stem energy demand and a range of capacity building measures to overcome a lack of institutional exper- tise. The program complements the World Bank’s earlier work on an Integrated National Energy Strategy. Improving Energy Efficiency in Uzbekistan’s Urban Heating Sector. The government of Uzbekistan has made great strides in reducing the energy intensity of its economy in recent years, with energy- use-per-unit of GDP declining an estimated 45 percent between 1998 and 2012. Nonetheless, Uzbekistan is one of the most energy-intensive economies in the world, with high levels evident across the entire energy supply chain, as well as in key sectors such as agriculture and industry. The World Bank has been supporting energy efficiency improvements through the Uzbekistan Energy Efficiency Facility for Industrial Enterprises Project. The objective of this activity is to improve the efficiency and quality of heating and hot water supply systems in the cities of Andijan, Chirchik, and Tashkent. This is being achieved by rehabilitating and renovating heating and hot water systems and introducing other energy efficiency measures. The three cities were selected by the government, which plans to replicate lessons and experiences from these pilot programs throughout the country. Strengthening Institutional Set-up for Energy Efficiency in Turkey. In 2012, the government of Turkey approved a National Energy Efficiency Strategy that sets a target of reducing the country’s energy intensity by 2023 by 20 percent from the 2011 baseline level. This activity includes an institutional review to enhance the Government’s ability to more effectively manage energy efficiency policies and programs and, thus, contribute to helping meet their ambitious national targets. The review consists of: (i) a detailed assessment of the current institutional set-up, including roles and responsibilities for energy efficiency; (ii) a comparison with international experience and best practices; and (iii) a set of institutional options and recommendations to improve the overall effectiveness and impacts of the national energy efficiency program. 44  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM markets that could be replicated in India. More 2012. And with demand in Albania, Bosnia and than 150 participants, including representatives Herzegovina, Kosovo, the Former Yugoslav Repub- from Brazil, India, Germany, the Kyrgyz Repub- lic of Macedonia, Montenegro, and Serbia expected lic, Mexico, Thailand, and the United States, to grow by as much as 70 percent over the com- attended this South-South-North knowledge ing two decades, policymakers are understandably exchange event. eager to explore alternative options to meet their anticipated energy needs. In FY2014, ESMAP funded preparation of Scaling-Up Energy Efficiency HELPING WESTERN BALKAN in Buildings in the Western Balkans, a report that COUNTRIES EASE RELIANCE ON outlines how countries in the region can achieve IMPORTED FOSSIL FUELS significant and sustained energy efficiency gains in their public building sectors. The report esti- Energy supply in the Western Balkan countries is mates that improved energy efficiency measures heavily dependent on imported fossil fuels that in public buildings can bring savings of up to 40 collectively cost the region over $4.1 billion in percent of total energy consumption. FOSTERING energy efficient cities 45  DEVELOPING CHAPTER 5 EFFECTIVE ENERGY SECTOR POLICIES AND INSTITUTIONS 47  BUILDING PARTNERSHIPS AROUND ENERGY SUBSIDY KEY ENERGY STRATEGIES AND REFORM ASSESSMENTS ACHIEVEMENTS, FY2014 Energy subsidies have proved to be a drain on the resources of many countries. When prices are kept • Launch of the More Power to India re- below cost-recovery levels, the overall viability of port, the result of a multi-year compre- the energy sector can be adversely impacted, hensive study of the Indian power sector, with specific recommendations to im- which, in turn, can impact efforts at improving prove the efficiency and solvency of elec- supply quality, increasing access, or increasing effi- tricity distribution ciency. As well as creating unsustainable fiscal • Development of the Energy Subsidy Re- pressures, energy subsidies can be regressive and form and Delivery Technical Assistance inefficient. They can also lead to the overconsump- Facility to support energy reform pro- tion of fossil fuels—reducing the incentive to use grams in developing countries, with renewable resources, and boosting pollution and country engagements already underway and full launch scheduled for October greenhouse gas emissions in the process. 2014 • Knowledge exchange organized be- Even though the negative impacts of energy sub- tween major emerging economies, in- sidies are often well known, attempts to reduce cluding Brazil, China, India, and Turkey or remove subsidies have been challenging, lead- in Istanbul in April 2014, on emerging ing to social unrest and policy reversals, in many models for opening up competition in cases. Phasing out subsidies, particularly if done electricity transmission and distribution suddenly and without a strengthening of social systems • Launch in January 2014 of the Thirsty safety nets, can have a negative impact on the Energy initiative, which looks at water poor and vulnerable. constraints on energy sector develop- ment, at the global level and through To help countries manage this delicate transition, country case studies (Box 5.1) ESMAP in FY2014 developed a new Energy Sub- sidy Reform and Delivery Technical Assistance Facility. This $20 million initiative provides a wide range of technical assistance for national subsidy reform programs, including: mechanisms such as energy efficiency measures • Assessment of the impact of subsidies at the • Support for policy dialogue, consultations, household and macroeconomic levels communications strategies, and consensus • Analysis of the poverty, social, and fiscal as- building pects of subsidy reform • Design of reform approaches, including social As part of the facility, ESMAP will also organize protection schemes and other mitigation conferences and knowledge exchange events on 48  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM subsidy reform at the global, regional, and coun- levels. Yet, major obstacles remain. More than try levels, to foster a dialogue on policy frame- 300 million Indians live without electricity, and works and country results. many of those with connections suffer from out- ages and unreliable supply. While generation and The initiative will provide in-depth support to up transmission capacity has grown, the distribution to 15 countries in the initial 3-year period. Work sector has seen limited progress and significant has already begun at the country level in Asia, losses, with impacts rippling through the entire Latin America, Eastern Europe, and the Middle power system. East. The facility will be fully launched at an inter- national forum on energy subsidy reform orga- A major ESMAP-supported World Bank report, nized by ESMAP in October 2014. More Power to India, argues that power distri- bution will require sweeping reforms if the country is to continue its high-growth trajec- MORE POWER TO INDIA tory and meet the goal of electricity for all by 2019. The report was the result of a multi-year India has realized major achievements since study requested by the Government of India, power sector reforms were initiated in 2003. one of the widest ranging assessments of the Three-quarters of the country’s population now Indian power sector to date. The study resulted has an electricity connection, and generation in five stand-alone background papers on elec- capacity has tripled when compared to 1990s tricity access, governance, private-public DEVELOPING EFFECTIVE ENERGY SECTOR POLICIES AND INSTITUTIONS 49  partnerships, electricity tariff subsidies, and design. An efficiently operating open access utility performance. regime puts pricing signals to work and removes arbitrary influences from the marketplace. In Among the recommendations of the report are November 2013, ESMAP published a report on freeing utilities and regulators from external inter- International Experience with Open Access to ference, increased accountability of all stakehold- Power Grids. The report looks at case studies from ers for sector performance, and exploration by both developing and developed countries to dem- states of different power distribution models to onstrate the potential benefits of open access, improve service delivery. The report was launched including cost reductions, increased service qual- in New Delhi in June 2014 and has received wide ity, and improved environment for investment in media coverage since. generation and grid infrastructure. The report was followed by a knowledge exchange OPEN ACCESS TO POWER GRIDS: event in Istanbul in April 2014, attended by policy- GLOBAL BEST PRACTICES makers, regulators, and power sector practitioners from Azerbaijan, Brazil, China, India, Indonesia, Open, nondiscriminatory access to power grid Tunisia, Turkey, and Vietnam. Participants presented infrastructure has become an important topic their views and experiences in dealing with specific globally, as countries look for new and increas- technical, institutional, and regulatory policy hur- ingly competitive models of electricity market dles involved in opening access to power grids. 50  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM POWER GENERATION OPTIONS: COUNTRY-LEVEL RESULTS IMPROVING DECISION-MAKING As well as global knowledge resources such as ESMAP developed the Model for Electricity META, ESMAP continued to support energy Technology Assessment (META) in 2012 to help assessment and strategy work being done by countries make informed choices among power World Bank teams in a wide range of countries. generation technologies and fuels. META deliv- A number of these activities showed results in ers a comparative assessment of over 40 differ- FY2014, including the following: ent electricity generation and delivery technol- ogies, including renewable sources such as • In Armenia, a study on the structure of hydropower, solar, and wind; and emerging stor- power sector tariffs and the methodology age options (i.e., carbon capture and storage). used to set such tariffs was presented to the Since being launched, META has been deployed government. The recommendations, particu- in Dominica, Egypt, Macedonia, Morocco, larly the implication on end-user tariffs of Kosovo, and Vietnam to support World Bank different financing scenarios, are now being engagements in those countries, and by partner considered by the government’s Public Ser- organizations in Jamaica and Haiti. A screening vice Regulatory Commission. curve analysis function is being added to the tool • In India, recommendations from a study look- to enable users to quickly estimate the least-cost ing at new options for delivering power sub- mix of technologies for a given increase in future sidies more efficiently to rural farmers were demand. In response to demands from users, incorporated into a policy paper submitted by work has also been initiated to add additional the World Bank’s India country office to the countries to the tool. new government that took office in May 2014. • In Tajikistan, an assessment of the country’s META is now being increasingly mainstreamed power supply options, which proposed new ap- into World Bank operations, with the Bank’s proaches to eliminating winter power deficits, Africa and Latin America and the Caribbean is now being used by the government and the regions using META to estimate the actual cost donor community as a primary input to policy of national fossil fuel subsidies, as well as in discussions, and an action plan is being put in training for partner organizations. Other users place to implement the recommendations. of META include IRENA, the Worldwatch Insti- • A comprehensive power sector note for the tute, and the World Institute of Sustainable Kyrgyz Republic has been used to inform the Energy. government’s medium-term tariff policy. DEVELOPING EFFECTIVE ENERGY SECTOR POLICIES AND INSTITUTIONS 51  BOX 5.1 THIRSTY ENERGY Energy and water security are crucial to human and economic development. The two resources are now more interconnected than ever—significant amounts of water are needed in almost all energy gener- ation processes, from generating hydropower, to cooling and other purposes in thermal power plants, to extracting and processing fuels. Conversely, the water sector needs energy—mainly in the form of electricity—to extract, treat, and transport water. Both energy and water are used in the production of crops. Water scarcity is already threatening the long-term viability of energy projects worldwide. In 2013 alone, water shortages shut down thermal power plants in India, decreased energy production in power plants in the United States, and threatened hydropower capacity in many countries, including Sri Lanka, China, and Brazil. Nearly 93 percent of the Middle East’s onshore oil reserves are exposed to medium to extremely high overall water quantity risks. Developing countries are the most vulnerable, as they often lack the capacity to meet the rapidly growing need. An ESMAP-supported World Bank initiative, Thirsty Energy, aims to mitigate the risks of the water- energy challenge. Launched in January 2014 at the World Future Energy Summit in Abu Dhabi, Thirsty Energy is designed to help governments prepare for an uncertain future by breaking disciplinary silos that prevent cross-sectoral planning and quantifying tradeoffs and synergies between water and energy resource management. One of the key aspects of this initiative is that the energy sector is the entry point for promoting the dialogue and devising solutions, and tailors approaches depending on the available resources and insti- tutional and political realities of a country. The initiative demonstrates the importance of combined approaches through demand-based work in several countries, thus providing examples of how evidence-based operational tools in resource manage- ment can enhance sustainable development. This created knowledge will be broadly shared with other countries facing similar challenges. 52  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 5.2 HIGHLIGHTS OF NEW ESMAP-SUPPORTED ENERGY ASSESSMENTS AND STRATEGIES ACTIVITIES, FY2014 Afghanistan | Energy Security Trade-Offs under High Uncertainty. Afghanistan remains in the bottom 10 percent globally in electricity consumption per capita and only 25 to 30 percent of its population is connected to the grid, giving it one of the lowest rates of electrification in the world. The overall objec- tive of this activity is to develop a policy framework for electricity power sector planning in Afghanistan that takes into account the high uncertainty of planning in the country and strikes a balance between economic efficiency, energy security, and environmental sustainability. Among the policy areas addressed will be the level of dependence on imported energy, identification of decision criteria for transmission line development, and a distributional analysis to look at the costs and benefits of the regional electricity trade. Regional | Benchmarking Electricity Utilities’ Performance. The Middle East and North Africa region (MNA) lacks a consistent cross-country database of key performance indicators of utilities in the elec- tricity sector. In partnership with electricity sector institutions in the region, this activity aims to build up such a database with information on market structure and institutional data, governance, distri- bution, transmission, and generation. Benchmarking indicators will be used to compare utilities both within the region and other regions worldwide. An accurate analysis and comparison of utility perfor- mance based on a benchmarking database can provide a strong basis for institutional and regulatory reforms in the electricity sector. Moldova | Power Sector Note. The power sector of Moldova has achieved important results over the last 15 years through a process of reform, privatization, and restructuring. Despite these achieve- ments, the power sector faces a number of challenges. Less than 25 percent of Moldova’s electricity demand is met by domestic generation due to few and deteriorating generation assets. This note will provide the Government of Moldova with a set of options for its power sector and for regional power trade to meet the objectives of the national energy strategy. The note will include recommended insti- tutional and regulatory measures, as needed, for long-term regional power integration, and market pricing mechanisms for an efficient and stable electric power market. Jamaica | Emergency Integrated Resource Plan. The Government of Jamaica has developed a National Energy Policy (2009-30) which presents a strategic framework to provide “affordable and accessible energy supplies with long-term energy security.” The overall objective of this activity is to support a shift in Jamaica’s energy sector to longer term sustainable development characterized by deploy- ment of locally available renewable energy and energy efficiency programs. The activity envisions the development of an integrated resource plan and a road map for implementation. The integrated resource plan will include an assessment of the least cost electricity supply plan for Jamaica (including generation, transmission, and distribution), and options for reducing demand through energy efficiency. DEVELOPING EFFECTIVE ENERGY SECTOR POLICIES AND INSTITUTIONS 53  5A | RESULTS-BASED APPROACHES TO ENERGY SECTOR DEVELOPMENT While results-based approaches have been used in sectors such as health, communications technology, and transport, there is much more limited experience in the energy sector outside the relatively narrow remit of output-based aid. In response to growing interest, in 2011 ESMAP launched a work program to evaluate if and how results-based approaches could be used in the energy sector to improve outcomes and raise efficiency in the use of public funds. In FY2013, ESMAP produced Results-Based Financing in the Energy Sector: An Analytical Guide, which has provided a useful foundation for project teams experimenting with results-based financing both within and outside the World Bank, including two new ESMAP-funded technical assistance projects in the Asia Pacific region. FY2014 Activities ESMAP continued its engagement with a DFID-funded results-based financing (RBF) pilot implemented by GIZ under the Energizing Development program. To date, the program has provided useful practical lessons related to some of the issues faced in the design of results-based programs. ESMAP also provided support to a number of World Bank-executed projects, including a technical assistance project on improved cookstoves in Uganda and a new activity that is exploring the potential for Program-for-Results (PforR) lending to finance rural electrification operations in Africa. In FY2014, ESMAP awarded funding to two projects exploring the use of RBF to promote the uptake of improved and modern cookstoves in Lao PDR and Indonesia, respectively. Linking Stove Uptake to Positive Health Outcomes in Lao PDR. Lao PDR has one of the highest rates of household air pollution in the world. Illnesses caused from inhaling indoor smoke are the country’s primary cause of lost healthy life years, ahead of smoking, dietary risks, and high blood pressure. 54  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM In FY2014, ESMAP financed a pilot program to see if Lao PDR’s high rate of lost healthy life years— otherwise known as Disability Adjusted Life Years (DALYs)—could be reduced through an RBF clean cookstove scheme. The basic concept involves verifying and monetizing the health benefits derived by women and children from the use of advanced cookstoves in the household and then compensating the stove provider whose products made the DALY reductions possible. The first stage of the pilot RBF scheme began with the non-governmental organization SNV carrying out laboratory tests, controlled cooking tests, and trials using improved high efficiency wood burning cook- stoves in Vientiane and Savannakhet. The studies helped assess a households’ willingness-to-pay for improved cookstoves and identified the most common cooking techniques used in Lao PDR. These initial findings will inform the next stage of pilot surveys that will incrementally introduce the concept of improved health outcomes. Improving Cookstove Standards and Incentivizing Indonesia’s Private Sector. In Indonesia, ESMAP supported a pilot RBF initiative as part of the World Bank-supported Clean Stove Initiative (CSI). The program focuses on achieving access to modern cooking and heating solutions by compensating a pre- selected group of private sector ’aggregators‘ who will be tasked with marketing, distributing, and selling a range of quality-approved cookstoves. These aggregators will be paid after a two-step verification process, the first after an approved cookstove makes its way into a household, and the second once it has been confirmed that the product is still being used after a trial period. For more information, see the ASTAE section (Chapter 6). FY2015 and Beyond In FY2014, ESMAP began work on a follow-on report to FY2103’s Results-Based Financing in the Energy Sector. The new study explores the Results-Based Aid (RBA) approach. RBA differs from RBF in that the funding agreement is between a funder and recipient country, as opposed to a funder and service provider. Due to be finalized in FY2015, the Results-Based Aid in the Energy Sector report also builds on recent ESMAP work on measuring energy access (Chapter 3). RESULTS-BASED APPROACHES TO ENERGY SECTOR DEVELOPMENT 55  ASIA CHAPTER 6 SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM 57  A s home to two-thirds of the world’s population and more than 40 percent of its extreme poor, the Asia Pacific KEY ASTAE ACHIEVEMENTS, region is central to the attainment of FY2014 the SE4ALL goals. The region’s spectacular growth • Development of a Third-Party Access over the past two decades has lifted hundreds of Code in Papua New Guinea that enables millions of people out of poverty. Yet, millions of third parties to connect to Papua New people still continue to lack access to electricity and Guinea Power Limited’s grid and ulti- clean, efficient cooking fuels, and have yet to enjoy mately provides customers with improved the health, social, and economic benefits afforded energy supply at more affordable prices by modern energy services. • Preparatory support for the Kabeli A hydropower project in Nepal, a joint WB- The Asia Pacific region is also particularly vulner- IFC program marking the re-engagement able to the impacts of climate change, which, with of the WBG in a greenfield hydropower its storm surges, cyclones, and coastal flooding project in Nepal after nearly two from rising sea levels, now poses a major threat decades to the region’s small island states, as well as to • Capacity building and technical, social, major population and economic centers in coun- environmental, and gender inputs to the Tuvalu Electricity Corporation (TEC) as it tries such as China, India, Pakistan, and Vietnam. prepares for the Tuvalu Electricity Sec- The region also suffers the world’s highest rate of tor Development Project, the World deaths caused by household air pollution. A 2012 Bank’s first energy sector investment in World Health Organization report attributed more the country (Box 6.1) than three million deaths annually to household • Support to the Philippines’ Electricity air pollution in the Southeast Asia and the West Markets Corporation as it finalizes the Pacific regions alone. design of a renewable energy market through which utilities can purchase and/ or sell renewable energy certificates Since 1992, the World Bank’s Asia Sustainable • Production of a wide range of knowledge and Alternative Energy Program (ASTAE) has products and publications, including been helping the East Asia and Pacific (EAP) and Geothermal Resource Risk in Indonesia; South Asia (SAR) regions transition to sustain- A Statistical Inquiry and Cumulative Im- able, inclusive, and low carbon green growth pacts and Joint Operation of Small-Scale paths. To help countries make this transition, Hydropower Cascades in Vietnam; Light- ASTAE’s work program rests on three pillars: ing Rural India: Experience of Rural Feeder Segregation Across States; Mon- renewable energy, energy efficiency, and access golia: Development Impacts of Solar- to energy, which dovetails with the SEA4ALL Powered Electricity Services; and China: objectives. Accelerating Household Access to Clean Cooking and Heating FY2014 marked the third year of ASTAE’s 2012– 15 Business Plan. Building on ASTAE’s experience 58  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM in country-level intervention, the plan also devotes Vietnam activity, which led to implementation special attention to scaling up access to sustain- of the process piloted in Da Nang in Surabaya, able energy on a regional basis. Indonesia). ASTAE currently helps shape the design of World ASTAE and ESMAP have long complemented each Bank investment projects and provides technical other, as ASTAE is focused on operational support assistance in 23 EAP and 8 SAR countries. and project preparation for World Bank and GEF projects, whereas ESMAP is focused on more ASTAE uses six output-based indicators to track upstream analytical, knowledge, and technical the impact of its activities on World Bank proj- assistance work that informs follow-on World ects, which include IBRD, IDA, and Global Envi- Bank lending. In a number of cases, World Bank ronment Facility (GEF) loans and grants: country engagements draw on support from both trust funds. Total World Bank lending amount cata- 1 |  lyzed by ASTAE activities In FY2014, the consultative groups of donors for New capacity (MW) and increased gen- 2 |  both ESMAP and ASTAE agreed that, starting in eration (GWh/year) of renewable FY2015, the program management and adminis- electricity tration of ASTAE would be merged with ESMAP. Electricity savings resulting from effi- 3 |  Furthermore, it was agreed that ESMAP and ASTAE ciency improvements (MW equivalent would publish a joint annual report—this being and GWh/year) the first such joint report. (For more information Households with access to modern energy 4 |  on ASTAE’s financial and results reporting, see services, including (i) new access to elec- Annex III.) tricity; (ii) improved access to electricity; and (iii) improved stoves for heating (cooking and space) Avoided greenhouse gas emissions (CO2 5 |  avoided over 20 years, million tons) Number of countries benefiting from 6 |  ASTAE support ASTAE helps to promote regional collaboration by supporting knowledge exchange and study tours between countries as part of its country- specific activities, through dedicated regional pro- grams (such as the East Asia Clean Stove Initia- tive) and by replication of approaches from one country to another (such as the ASTAE-supported Energizing Green Growth of Da Nang City in ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM 59  FY2014: HIGHLIGHTS AND the Indonesian Clean Stove Initiative (CSI) as it ACHIEVEMENTS develops a scalable market for affordable, energy efficient cookstoves. ASTAE assistance included In FY2014, ASTAE launched 21 new programs in preparatory work for a pilot subsidies program 8 countries and 6 regional activities. In addition, under which the Bank Rakyat Indonesia will help over the course of FY2014, the World Bank’s Board consumers in the Central Java and Yogyakarta of Executive Directors approved four ASTAE-sup- areas purchase clean, fuel-efficient cookstoves. ported Bank projects totaling $1.2 billion. This In addition, ASTAE supported fieldwork for a brings to $3.25 billion the total value of ASTAE- study on how the CSI can strategically address supported projects approved by the Board since gender dimensions when marketing clean, fuel- the beginning of the current business plan, an efficient cookstoves. The study is important amount slightly exceeding the $3.2 billion busi- because although women in Indonesia tend to ness plan target. ASTAE activities spanned the do the bulk of household cooking, it is their hus- entire project cycle, from early stage exploration bands who most often decide how major house- to critical support in the project implementation hold expenses are allocated. A series of reports and evaluation stages. were produced as a result of interviews with more than 1,400 peri-urban households in Java’s Yog- Outlays in FY2014 saw 38 percent of total disburse- yakarta Special Region that offer strategies to per- ment directed to renewable energy activities, 46 suade men of the benefits of clean, fuel-efficient percent to energy access activities, with the cookstoves and design specifications/modifica- remaining 16 percent disbursed to energy effi- tions of stoves to be marketed under future CSI ciency activities. (It should be noted that many programs. activities span these categories, and these percent- ages are based on the dominant focus in each Sharing Best Practices for Regional Scale program.) up of Clean Cookstoves In FY2014, ASTAE continued its support for the Catalyzing Markets for Clean Cookstoves World Bank’s EAP CSI Regional Forum Program, in Indonesia an initiative that promotes South-South collab- An estimated 165,000 premature deaths are attrib- oration in order to help countries scale up access uted to household air pollution in Indonesia to modern cooking and heating solutions, par- annually. Despite the introduction of more than ticularly for poor rural households. In April 50 million liquefied petroleum gas (LPG) stoves 2014, ASTAE co-financed the second EAP CSI to households and small- and medium-sized Forum and South-South Knowledge Exchange enterprises in recent years, some 25 million Event in Beijing, China. The event was an oppor- mostly rural households still rely on firewood or tunity to share early results from CSI activities other solid biofuels such as charcoal, dung, or in China, Indonesia, Lao PDR, and Mongolia. crop waste to meet their cooking needs. In More than 50 delegates from Cambodia, Guate- FY2014, ASTAE continued to provide support to mala, Honduras, Indonesia, Lao PDR, 60  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Mongolia, Nepal, Vietnam, and countries in electricity market rules that govern the operation of Africa attended the event. A new CSI e-Forum the Philippine electricity market in order to make was launched at the Beijing event that now way for the incorporation of the “must-dispatch” serves as a venue for clean cookstove practitio- guidelines called for in the landmark Renewable ners, technicians, policymakers, business ven- Energy Act of 2008. Must-dispatch provisions ensure dors, and academics to network, exchange infor- that all generated renewable energy is dispatched as mation, and collaborate. a priority as soon as it becomes available. These ASTAE activities are supporting preparation of the Developing a Renewable Energy Market Philippines Renewable Energy Development Proj- in the Philippines ect, a World Bank initiative aimed at helping expand The Philippine government’s national energy strat- renewable energy penetration and electricity access egy aims to triple the country’s installed renewable in a sustainable manner. This project will be one of energy capacity to over 15,000 MW by 2030. In order the first IBRD guarantees financed by the Clean Tech- to meet this goal, the government is working to nology Fund (CTF). establish a Renewable Energy Market (REM) through which utilities can buy and sell renewable energy Building Capacity for Nepal’s First certificates. In FY2014, ASTAE provided policy and Large-Scale Solar Power Development technical assistance to the Philippines Electricity In FY2014, ASTAE provided a significant contri- Markets Corporation as it finalized the REM’s design, bution toward construction preparations for rules, and registry. The registry is an important part Nepal’s first large-scale, solar-powered electricity of the institutional framework for ensuring that com- plant, to help reduce load shedding, running up pliance with the renewable portfolio standard can to 18 hours a day. The World Bank-supported proj- be monitored and enforced. A second component ect will build a series of 25 MW solar farms near of ASTAE’s assistance helped review the wholesale Kathmandu that will connect to the Nepal ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM 61  Electricity Authority’s (NEA) distribution network. public-private partnership in hydropower gener- As this is the first major project of its kind in ation that can promote hydropower development Nepal, the NEA is eager to develop its in-house in Nepal and can be replicated in other parts of capacity in the area of solar technology. In Febru- the region and beyond. ary 2014, ASTAE convened a capacity building workshop that trained representatives from gov- Promoting Private Sector Investment in ernment and various public stakeholders on a wide Papua New Guinea’s Power Sector range of design, construction, plant operation, and The vast majority of Papua New Guinea’s (PNG) maintenance issues. The workshop included pre- population lives in rural areas that have limited or sentations by international experts (including no access to electricity. In order to broaden access, instructors, regulators, consultants, and develop- the government has launched the National Electri- ers from Germany and Thailand), as well as fication Roll Out Plan (NEROP), an ambitious ini- domestic stakeholders (including a pilot solar proj- tiative that aims to boost the country’s electricity ect owner). Construction of the solar farms is access rate from 13 to 70 percent by 2030. Attract- expected to begin in early 2015. ing private sector investment and making the energy sector more competitive is a key step Assessing Environmental Impacts of towards achieving this goal. Over the course of WB-IFC Hydropower Scheme in Nepal FY2014, ASTAE supported development of a Third- ASTAE provided preparatory assistance for Party Access Code that will enable third-party Nepal’s planned 37.6 MW Kabeli A hydropower access and connection to the electricity network development, a joint World Bank/IFC project that that is currently owned and operated by Papua New will help eliminate load shedding, improve elec- Guinea Power Limited (PPL). The benefits of the tricity access, and promote regional integration new access code, which went into effect in Janu- for sustainable growth in Nepal. This will be the ary 2014, are expected to include improved power largest single IFC transaction committed to date system efficiency and performance, a level playing in Nepal and will mark the re-engagement of the field for independent power producers, and World Bank Group in a greenfield hydropower increased transparency. ASTAE also assisted the project in Nepal after nearly two decades. ASTAE government in developing a complementary Grid assistance financed a review and update of the Code that is expected to be adopted in late 2014. Cumulative Impact Assessment for the 14 hydro- electric projects planned for the Kabeli basin. Exploring Mitigation Options for The results are helping the project designers Short-Lived Climate Pollutants in South understand and mitigate the scheme’s potential Asia impacts on aquatic life, which could affect food- In FY2014, ASTAE supported preliminary work energy-water security nexus issues. Along with on a study to help the governments of Bangla- adding 37.6 MW of electricity generation capac- desh, India, and Nepal significantly reduce emis- ity to Nepal’s power system, it is expected that sions of short-lived climate pollutants, such as the Kabeli A plant will demonstrate a model of black carbon, through the generation and 62  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM dissemination of policy-relevant knowledge on Clean Stove Initiative. The report emphasizes that mitigation options. The study, which is being market-based approaches are key to achieving conducted by the University of California San sustainability and proposes strategies through Diego (UCSD) in partnership with India’s Energy which the country can achieve universal access and Resources Institute (TERI) and the Califor- to clean cooking and heating solutions. Under- nia Air Resources Board (CARB), is expected to taken at the request of India’s Ministry of Power, be released in late 2014. A second component Lighting Rural India: Experience of Rural Load of ASTAE assistance worked to create a coali- Segregation Schemes in States, published in Feb- tion of stakeholders and experts concerned with ruary 2014, analyzes the introduction of rural public health, environmental damage, climate feeder segregation schemes in different Indian change, environmental justice, economic devel- states. The rural feeder segregation approach pro- opment, and transport industry competitiveness. vides separate electricity infrastructure for rural To begin the coalition-building process, multi- agriculture and non-agriculture power consum- stakeholder workshops to consult on prelimi- ers. The study finds that the feeder segregation nary findings were held in California and New approach is improving both the availability and Delhi. Scoping work also began on extending quality of power supply in rural areas, but that the study in FY2015 to Bangladesh and Nepal, a standard “one-size-fits-all” implementation and equivalent components on brick kilns and strategy may not work for all states. The study clean cooking. was cited in a subsequent National Policy Guid- ance Note. The ASTAE-financed study Mongolia: ASTAE Knowledge Products Development Impacts of Solar-Powered Electricity In FY2014, ASTAE produced a wide range of Services, published in January 2014, illustrates knowledge products and publications. Examples the positive outcomes that have resulted from include Geothermal Resource Risk in Indonesia: providing solar-powered electricity services in A Statistical Inquiry, published in June 2014, rural areas. which assesses the prospects for geothermal development in Indonesia as the government New Initiatives embarks on an ambitious scale-up plan. Based In FY2015, a number of major World Bank proj- on case studies from six river basins in northern ects for which ASTAE has provided preparatory Vietnam, Cumulative Impacts and Joint Opera- assistance are expected to be approved by the tion of Small-Scale Hydropower Cascades, also World Bank’s Board of Executive Directors. These published in June 2014, provides valuable rec- include the $731 million Vietnam Transmission ommendations for policymakers and the plan- Efficiency Project. In preparation of this project, ners and developers of small-scale hydropower ASTAE supported the National Power Transmis- plants. China: Accelerating Household Access to sion Company in defining and refining its smart Clean Cooking and Heating, published in Sep- grid strategy by preparing a detailed Smart Grid tember 2013, synthesizes the knowledge gained investment plan to improve the efficiency, resil- to date through the implementation of the China ience, and increase the transmission grid’s ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM 63  ability to absorb intermittent renewable energy customers at 94 locations in Nusa Tengara Timor resources. using solar-diesel hybrid systems (19.7 MW). ASTAE funds were instrumental in the team’s ASTAE is also supporting the preparation of a ability to prepare these subprojects in a timely major IBRD-KfW project in Indonesia to sup- manner. port PLN, the national power utility, in imple- menting the ‘1,000 island’ electrification pro- Moving forward, ASTAE will intensify its long- gram through technical assistance and capacity standing focus on the gender-energy dimension, building in technology mapping, least-cost grid especially in advancing programmatic support to roll out, and off-grid planning. KfW is support- the World Bank’s East Asia and the Pacific regional ing the connection of over 16,000 new energy gender action plan. 64  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM BOX 6.1 HELPING TUVALU MOVE TOWARD 100 PERCENT RENEWABLE ENERGY GENERATION By 2020, the Pacific island state of Tuvalu aims to become the first country in the world to generate 100 percent of its electricity from renewable sources such as solar, wind, and biofuel. At present, some 77 percent of the country’s installed capacity comes from a power station on the island of Funafuti. On the country’s outer islands, antiquated and inefficient diesel-run generators run 12 to 18 hours per day, meaning that blackouts—most often the result of shortages of fuel and spare parts—are a frequent occurrence. In FY2014, ASTAE support financed a team of experts to help the Tuvalu Electricity Corporation (TEC) ensure that the proposed World Bank Energy Sector Development Project provides a path for Tuvalu to achieve its 100 percent goal. This included a range of technical and social studies that are helping identify the optimal combination of solar- and wind-power generation and storage necessary to reach the renewable generation target. A number of other donors—including Japan, the European Union, the United Arab Emirates, New Zealand, and Australia—have activities underway to help Tuvalu replace diesel generation with renew- able energy technologies. ASTAE financed a technical study to optimize the integration of renewables into the system in Funafuti in a way that best complements the existing efforts by donors. ASTAE is also helping Tuvalu identify and evaluate a series of measures to bring about a 30 percent improvement in energy efficiency. This includes support for energy audits of buildings, public, and industrial and commercial facilities, and an evaluation of the availability of energy efficient electrical appliances and electric transport on the market. In addition, ASTAE is supporting the design and installation of a satellite-based communications system in Funafuti and the outer islands that will enable the TEC—with continued support—to remotely monitor, control, and improve the operation and maintenance of its power systems. ASTAE support is also helping ensure that the TEC takes social issues into consideration as a part of the project planning process. An example of this was an ASTAE-financed gender scoping study, gender action plan, and gender monitoring and evaluation system that aims to improve the participation of women in energy sector planning, implementation, and evaluation. Based on interviews with more than 100 men, women, and youth, the study found that, despite considerable gender mainstreaming efforts in Tuvalu in recent years, the concepts of gender, gender equity, and equality have yet to be fully integrated into the community decision-making process. This gender work directly contributes to the proposed Energy Sector Development Project, as well as to implementation of the Tuvalu National Gender Equality and Women’s Empowerment Policy that was approved in early 2014. Another major outcome of ASTAE assistance will be smoother and faster implementation of a World Bank project that could save the Tuvalu’s government significant resources through avoided petro- leum fuel costs. At current fuel prices, a 20 percent reduction in fuel usage represents a cost saving of $460,000 per year. ASIA SUSTAINABLE AND ALTERNATIVE ENERGY PROGRAM 65  FINANCIAL CHAPTER 7 REVIEW 67  S tarting in FY2015, the program manage- CONTRIBUTIONS ment and administrative functions of ASTAE (Chapter 6) will merge with ESMAP. As part of this merger, it was ESMAP received a total of $47.2 million from nine donors, plus the World Bank, in FY2014. Total agreed that the two trust funds would publish a joint receipts for ASTAE were $4.4 million from its three annual report, starting with this FY2014 Annual donors. Japan made possible the second tranche Report. of the SIDS DOCK program with a contribution of $9 million. All FY2014 figures below detail financial informa- tion for the three multi-donor trust funds (MDTFs) that, as of the beginning of FY2015, will come Table 7.1 shows actual receipts from individual under ESMAP’s management and administration: donors for the three MDTFs for FY2014, as well ESMAP, ASTAE, and SIDS DOCK (see Section 2A). as cumulative receipts since FY2010. TABLE 7.1 Overview of Donor Contributions to ESMAP, ASTAE, and SIDS DOCK MDTFs, FY2010-14 ($, thousands) Country FY2014 Contribution Cumulative Receipts Since Total % Cumulative FY2010 Receipts ESMAP ASTAE SIDS ESMAP ASTAE SIDS FY2010-14 DOCK DOCK Australia 7,574.74 7,574.74 5.2% Austria 2,061.60 4,741.27 4,741.27 3.2% Denmark 8,929.91 23,597.53 7,093.12 30,690.64 21.0% Finland 1,527.54 1,527.54 1.0% France 844.04 844.04 0.6% Germany 4,102.80 6,766.30 6,766.30 4.6% Iceland 300.00 1,256.13 1,256.13 0.9% Japan 9,000.00 9,000.00 9,000.00 6.2% Lithuania 37.93 97.79 97.79 0.1% Netherlands 9,500.00 2,000.00 18,200.00 12,000.00 30,200.00 20.7% Norway 6,446.36 11,887.44 11,887.44 8.1% Sweden 764.29 756.08 4,565.34 5,913.75 10,479.09 7.2% United 14,743.70 1,637.10 22,708.10 6,324.75 29,032.85 19.9% Kingdom World Bank 344.62 2,008.62 2,008.62 1.4% Total 47,231.22 4,393.18 9,000.00 105,774.82 24,238.50 16,093.12 146,106.44 100% 68  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM DISBURSEMENTS Project costs are separated into (i) disbursements by region and for global programs, and (ii) dis- ESMAP disbursed US $21.7 million in FY2014— bursements for program management, adminis- an increase of 29 percent from the year before. tration, and other centralized functions. Regional activities are those managed by World Table 7.2 shows FY2012-13 disbursements for Bank regional units. ESMAP, and for all three MDTFs for FY2014. (For FY2012-13, ESMAP disbursements include SIDS ESMAP global programs include analytical and DOCK spending.) advisory activities (AAA) managed by the ESMAP TABLE 7.2 ESMAP Disbursements, FY2012-13 (including SIDS DOCK); ESMAP, ASTAE, and SIDS DOCK Disbursements, FY2014 ($, thousands) FY2012 FY2013 FY2014 ESMAP ASTAE SIDS Project Cost $14,867.81 87% $14,636.94 87% $19,852.74 $5,030.18 $765.75 93% Africa 6915.75 5,199.04 7,681.48 179.77 East Asia 517.91 706.64 2,132.92 3,847.86 74.88 Europe & Central Asia 576.36 1,201.05 1,419.49 Latin America & Caribbean 775.63 913.23 2,153.29 379.91 Middle East & North Africa 600.23 839.36 448.13 South Asia 867.32 346.01 878.73 965.59 Global Program 4,614.61 5,431.61 5,138.70 216.73 131.19 Program Management & $2,129.08 13% $2,273.13 13% $1,910.43 $77.55 $82.31 7% Sustaining Program Management 1,080.64 997.16 784.69 68.19 Governance (CG, TAG) 91.57 83.53 98.58 9.36 Resource Management/Trust 215.14 230.38 217.42 Fund Administration Portfolio Management 245.89 316.20 213.46 (Monitoring and Evaluation) Knowledge Forums 28.78 102.50 116.65 Communication and Outreach 467.06 543.36 479.62 (publications, website, and other dissemination) Total $16,996.89 100% $16, 910.07 100% $21,763.17 $5,107.73 $848.06 100% Of which: Funded by Donors 16,006.34 16,302.79 21,182.40 5,107.73 848.06 Funded from World Bank budget 640.23 350.35 344.62 Funded from Fee Income 350.32 256.93 236.15 FINANCIAL REVIEW 69  core unit, as well as those led by World Bank Annual block grants—grants to the World Bank’s global departments such as Energy, Water, Urban, regional units for targeted technical assistance and Transport. (It is important to note that a por- activities at the country level—remain the largest tion of the expenditures under global programs single area of ESMAP’s portfolio, closely followed is associated with work performed by ESMAP core by AFREA. However, the proportion of the total technical staff for clients through the World Bank’s ESMAP portfolio dedicated to annual block grants regional units.) declined from 37 percent in FY2013 to 29 percent in FY2014 due to the growth of some of the stra- tegic global programs. BREAKDOWN BY REGION AND PROGRAM AREA Figures 7.1 and 7.2 show the breakdown in FY2014 of ESMAP disbursements by program Table 7.3 shows FY2014 spending by region for area, and of ASTAE spending by ASTAE’s all three MDTFs, and by program area for ESMAP. pillars. TABLE 7.3 ESMAP, ASTAE, and SIDS DOCK Disbursements, by Program Area, FY2014 ($, thousands) ESMAP Sustainable Global Renewable Energy City Energy SIDS Annual Energy Geothermal Results Energy Subsidy Efficiency Other ASTAE DOCK Block for All Development Based Resource Reform Transformation Global Grants Transport Water (SE4ALL) Plan Funding Mapping Facility AFREA Initiative Prorams Total Africa 1,368,193 464,515 196,305 5,652,471 179,766 7,861,250 East Asia 959,073 52,089 915,983 16,917 74,733 112,825 1,305 3,847,860 74,878 6,055,663 Europe & 1,218,726 36,866 163,896 1,419,488 Central Asia Latin 1,239,743 202,667 15,252 301,958 351,934 41,731 379,913 2,533,199 America & Caribbean Middle 311,094 72,589 64,444 448,128 East & North Africa South 602,565 122,017 16,918 137,231 965,593 1,844,324 Asia Global 93,107 78,572 98,027 229,123 86,537 402,809 288,416 720,942 3,141,168 216,730 131,188 5,486,618 Programs Total 5,699,394 469,880 203,279 1,797,401 597,975 161,270 849,170 558,487 5,652,471 722,246 3,141,168 5,030,182 765,746 25,648,668 70  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM FIGURE 7.1 FIGURE 7.2 ESMAP Disbursements, by Program Area, ASTAE Spending, by Pillars, FY2014 FY2014 28.7% 30.0% 28.5% 25.0% 20.0% 34% Energy Access 15.0% 15.8% 46% 10.0% 9.1% Energy Efficiency 5.0% 2.4% Renewable Energy 1.0% 3.0% 4.3% 0.0% 0.8% 2.8% 3.6% 20% FINANCIAL REVIEW 71  72  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ACCES Africa Clean Cooking Energy Solutions AEI African Electrification Initiative AFD Agence Française de Développement ACRONYMS AFREA Africa Renewable Energy and Access Program AOSIS Alliance of Small Island States ASEAN Association of Southeast Asian Nations ASTAE Asia Sustainable and Alternative Energy Program CARB California Air Resources Board CG Consultative Group CSI Clean Stove Initiative CSP Concentrated solar power CTF Climate Technology Fund DALY Disability adjusted life year DFID Department for International Development ECERA Eastern Caribbean Energy Regulatory Authority EDGE Excellence in Design for Greater Efficiencies ERC Energy Regulatory Commission (Philippines) GDP Gross domestic product GPOBA Global Partnership on Output-Based Aid GTF Global Tracking Framework (SE4ALL) IBRD International Bank for Reconstruction and Development ICEIDA Icelandic International Development Agency ICT Information and communication technology IDA International Development Association IDB Inter-American Development Bank IFC International Finance Corporation IRENA International Renewable Energy Agency JICA Japan International Cooperation Agency KfW German government-owned development bank LED Light-emitting diodes MDFT Multi-donor trust fund META Model for Electricity Technology Assessment (ESMAP tool) NEA Nepal Electricity Authority NGO Non-governmental organization PGE Pertamina Geothermal Energy PHRED Philippines Renewable Energy Development PLN  Perusahaan Listrik Negara (Indonesia’s state electric company) RBA Results-based aid RBF Results-based financing REM Renewable energy market RREA Rural and Renewable Energy Agency 73  SE4ALL Sustainable Energy for All All dollar figures ($), unless otherwise specified, TAG Technical Advisory Group are in United States dollars. SIDA  Swedish International Development Cooperation Agency SIDS Small island developing states WORLD BANK REGIONS TEC Tuvalu Electricity Corporation TERI  The Energy and Resources Institute AFR—Sub-Saharan Africa (India) EAP—East Asia and Pacific TRACE  Tool for Rapid Assessment of City ECA—Europe and Central Asia Energy (ESMAP tool) LCR—Latin American and Caribbean UN United Nations MNA—Middle East and North Africa UNDP  United Nations Development SAR—South Asia Programme WBG World Bank Group 74  ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM Copyright © 2014 The International Bank for Reconstruction and Development/ THE WORLD BANK GROUP 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 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