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Energy Sector Management Assistance Program Annual Report 2021
During this period, ESMAP focused its
efforts on addressing three compounded challenges facing
developing countries: the COVID crisis; the urgent need to
decarbonize; and achieving universal access to electricity.
To assist clients with their COVID-19 response and recovery,
ESMAP supported the sustainable electrification of health
facilities, the provision of climate-friendly cold chains,
and the establishment of a relief fund for off-grid solar
companies in Africa. ESMAP’s activities to accelerate the
global transition to low-carbon energy and to secure
universal access to energy have centered on the just
transition away from coal, and ways to support the rapid
deployment of renewables, including mobilization of climate
finance through initiatives such as the Cooling Facility and
the Sustainable Renewables Risk Mitigation Initiative
(SRMI). In addition to the dynamic response to these
critical global issues, ESMAP has carried on its fundamental
role in implementing its business plan based on client demand
City Energy Efficiency Assessments
For cities that want to take concrete
actions on improving energy efficiency, it is essential to
understand what, where, and how big the potential
energy-saving opportunities are, what measures are needed to
capture the savings and at what costs, what the
implementation constraints are, and how priorities should be
set given local capacity and resources. An energy efficiency
assessment can provide the necessary clarity on these
issues. Energy efficiency assessments can be done at
different depths and with varying scopes, depending on the
city's needs, capacity, and resources. The duration and
cost of the assessment depends on the quality of existing
data and the size and complexity of the sector. This
guidance note provides an introduction to the objectives,
scope, and outputs, as well as the basic steps and
approaches of conducting the three types of energy
efficiency assessments
ESMAP Business Plan, FY2025–30
In its Business Plan FY25-30, Energy
Sector Management Assistance Program (ESMAP) aims to support
client countries on three overarching objectives: (i) ensure
universal access to affordable, reliable, and modern energy
services by 2030; (ii) accelerate the transition towards a
sustainable, just, and decarbonized energy system; and (iii)
ensure the resilience and adaptation of the energy sector to
the growing impacts of climate change and other shocks. The
Business Plan has two focus areas: energy access and energy
transition. The energy access focus area helps World Bank
clients achieve results on the ground and will employ three
approaches: (i) catalytic incentives to facilitate private
sector investments and connections, (ii) hands-on
implementation support, and (iii) tailored solutions for all
beneficiary groups. The energy transition focus area will be
implemented through three complementary workstreams: (i)
scaling up renewable energy, storage, and clean hydrogen;
(ii) scaling-up energy efficiency and decarbonization of
end-use sectors; and (iii) transitioning away from unabated
fossil fuel. These workstreams will be supported by the
Financial Innovation Window designed to provide last-resort
project de-risking and incentives for innovation and
resilient investment. All workstreams will support economic
and leadership opportunities for women and excluded groups
Improving Energy Efficiency in Buildings
About one-third of global energy is
consumed in residential, public, and commercial buildings
(collectively referred to as buildings), where it is used
for space heating, cooling, ventilating, lighting, cooking,
water heating, refrigerating, and operating electric and
mechanical devices. Global energy use in buildings is
expected to grow as cities in developing countries continue
to modernize and per capita income levels continue to
increase. Because of their high energy consumption,
residential, public, and commercial buildings also offer
unparalleled opportunities for energy savings. According to
the International Energy Agency, buildings account for some
41 percent of global energy savings potential by 2035,
compared with the industrial sector (24 percent) and the
transport sector (21 percent). This guidance note outlines
how cities can tap into a wide array of proven technologies,
policies, and financing mechanisms to improve energy
efficiency and capture cost-effective energy savings in
buildings. It offers city leaders advice on how to get
started in introducing energy efficiency measures, and
provides lessons and examples from successful programs that
have been introduced worldwide
Compensation Devices to Support Grid Integration of Variable Renewable Energy
This technical guide is the second in a
series of four technical guides on variable renewable energy
(VRE) grid integration produced by the Energy Sector
Management Assistance Program (ESMAP) of the World Bank and
the Global Sustainable Electricity Partnership (GSEP). It
focuses on the main functionalities, differences and
benefits of various compensation devices that can be
employed to increase system transfer capacity, system
stability, power quality and flexibility to cope with
increasing penetrations of renewables in the system. The
applications of FACTS devices are associated with four
essential technical enhancements of system capacity, system
reliability, power quality and system controllability. The
application of the FACTS devices for these enhancements
would depend on the system needs which would be identified
and recommended through the power system studies during the
interconnection process. Power system studies are further
elaborated in "STUDIES FOR GRID CONNECTION OF VARIABLE
RENEWABLE ENERGY GENERATION PLANTS – Technical Guide 3"
Financing Municipal Energy Efficiency Projects
Improving the energy efficiency (EE) of
municipally owned buildings, such as schools and hospitals,
and municipal infrastructure, such as public lighting, water
supply, and district heating, offers budgetary savings on
energy bills and a wide range of environmental and
socioeconomic benefits. But relatively few municipal EE
projects have been developed and implemented successfully.
The challenges that limit EE investments in municipal
buildings and facilities can be grouped into three broad
areas: (i) a lack of awareness and incentives; (ii)
insufficient implementation capacity; and (iii) limited
access to financing. All three sets of challenges need to be
addressed to scale up successful implementation of municipal
EE projects. This Guidance Note focuses on the key issues
faced by municipalities in accessing financing for EE
investments, particularly for projects in the following four
areas: indoor lighting, building retrofits, public lighting,
and municipal utilities. The guidance note discusses the
following potential financing mechanisms that can be used by
municipalities to finance EE measures: budget financing,
Funds developed specifically to address energy efficiency,
public support to leverage commercial financing, and
commercial financing
Grid Integration Requirements for Variable Renewable Energy
This technical guide is the first in a
series of four technical guides on variable renewable energy
(VRE) grid integration produced by the Energy Sector
Management Assistance Program (ESMAP) of the World Bank and
the Global Sustainable Electricity Partnership (GSEP). It
provides a general overview of the intrinsic characteristics
of VRE generation, mainly solar PV and wind, what the main
challenges are along with some recommendations for VRE
technical specifications, applicable standards, and
essential testing. The main focus of the document presents a
detailed outline of the essential requirements for VRE
integration into the power grid. The requirements differ for
different levels of penetration but would require
fundamental grid compliance requirements that must be
reflected in any grid. This document provides these
requirements along with recommendations of advanced VRE
integration requirements that could be reflected in the
power system operations with these VRE resources. The
compliance with the technical requirements where applicable
is validated through extensive series of interconnection
studies which are further elaborated in "STUDIES FOR
GRID CONNECTION OF VARIABLE RENEWABLE ENERGY GENERATION
PLANTS – Technical Guide 3"
Results-Based Financing in the Energy Sector : An Analytical Guide
Results based financing (RBF) approaches
are becoming an increasingly popular way to support
development objectives and wider public policy goals. The
fundamental idea of RBF approaches is that payments that
would otherwise be made automatically are made contingent on
delivery of (a) pre agreed result, with achievement of the
result being subject to independent verification. RBF
approaches have been pioneered in the health sector but
there has been increasing interest in whether and how they
could be used within the energy sector, and especially on
how they may promote private sector investment in low carbon
energy sector opportunities (ESMAP 2012). The work has been
commissioned by the Energy Sector Management Assistance
Program (ESMAP), as part of a broader initiative looking at
the potential for greater use of results-based approaches
(RBAs) in the energy sector in developing countries This
report identifies the circumstances when Results Based
Financing (RBF) approaches might be an appropriate energy
sector intervention in developing countries, especially to
promote energy access and energy efficiency. It was
commissioned by the Energy Sector Management Assistance
Program (ESMAP) as part of a broader initiative looking at
the potential for greater use of results-based approaches in
the energy sector in developing countries. The fundamental
idea of RBF approaches is that payments that would otherwise
be made automatically are made contingent on delivery of a
pre agreed (set of) result(s), with achievement of the
result(s) being subject to independent verification. The
report is focused on individuals and organizations who are
considering whether an RBF approach would be a sensible way
to deliver some specific goods or services to help meet a
defined public policy goal. These individuals or
organizations might then go on to implement an RBF scheme in
the language of the report; they would be the RBF
scheme's focus on the energy sector in developing
countries principal
Toward Sustainable and Energy Efficient Urban Transport
Many cities of developing countries are
experiencing rapid growth of motorized transportation. This
is leading to severe congestion, which, in turn, is reducing
productivity. Road accidents have been increasing. Transport
emissions have become a major contributor to severe air
pollution and greenhouse gas emissions. The main cause of
these problems has been the increasing preference for
personal motor vehicles for commuting to work and getting
around the city. In many countries, urban development
practices have worked in favor of such preference, leading
to urban sprawl. Thus, remedial measures have to focus on
reversing the preference for such modes of travel, shifting
to public transport, cycling, or walking, and building and
retrofitting cities to minimize the need for private
automobiles. The objective of this guidance note is to
present a systematic, practical, and comprehensive approach
to dealing with the problems of urban transport. It outlines
a framework of possible interventions and demonstrates how
such interventions relate to the overall objectives of
improving mobility and energy efficiency as well as reducing
air pollution and road accidents. Thereafter, it highlights
a range of cross-cutting issues that need to be addressed
and also suggests steps to create an enabling environment to
move towards a sustainable urban transport system. Its
target audience is the city-level leadership and key
decision makers responsible for sustainable urban mobility
Experiences from Brazil, Peru, the Philippines, and Turkey
In recent decades, many countries have
embarked on structural reform programs involving private
sector participation (PSP) across the entire value chain of
the power sector. Often as part of a broader market oriented
reform program, governments have resorted to PSP in
transmission and distribution (T and D) for a variety of
reasons, including to: (i) offset years of underinvestment
and poor operating performance under public ownership; (ii)
attract considerable private investment to fill the
financing gap stemming from new T and D additions amid
rapidly growing demand for electricity; and (iii) raise
fiscal revenues by offloading state assets. In some cases
(for example, Brazil and Peru), a prolonged electricity
supply crisis prompted government into structural reforms of
the T and D sector. The energy sector management assistance
program (ESMAP) study covers PSP in transmission, as well as
distribution. The four case-study countries, Brazil, Peru,
Philippines, and Turkey were selected based on the
substantial transmission story under their broader
electricity PSP experience
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