Figure 2.4Amount ($ millions)Figure 2.5Amount ($ millions)3,5003,0002,5002,0001,5001,0005005,0004,0003,0002,0001,000Growth in <strong>Low</strong>-<strong>Carbon</strong> Portfolio byCountry Income Class02003 2004 2005 2006 2007 2008YearHigh income<strong>Low</strong>er middle incomeRegionalBreakdown <strong>of</strong> Non-<strong>Low</strong>-<strong>Carbon</strong>WBG Energy Investments02003 2004 2005 2006YearTransmission anddistributionOil, gas, and coal<strong>Low</strong> incomeUpper middle incomeSource: IEG.Note: Unit <strong>of</strong> analysis is the project component. Excludes freestandingWBG analytic and advisory activities, IFC advisory services, andspecial financing.and blended low-carbon and access projects account for37 percent <strong>of</strong> all energy portfolio financing in 2003–09.Figure 2.5 shows the growth <strong>of</strong> the remainder.Hydropower is by far the largest subcomponent<strong>of</strong> the recent renewable energy portfolio.Figure 2.6 shows how total new energy generation capacitywas divided between fossil fuels and renewable sources.Large hydropower dominated power investments in IDAcountries. In IBRD and blend countries, coal accounted fora third <strong>of</strong> new capacity, gas 28 percent, and large hydropower18 percent.2007 2008<strong>The</strong>rmal generationOther energyAccessSource: Investment Framework for Clean Energy and <strong>Development</strong>,2003–08.Note: WBG = <strong>World</strong> <strong>Bank</strong> Group.Coal accounted for one-third <strong>of</strong> new generatingcapacity supported in IBRD countries.<strong>The</strong> WBG’s on-grid renewable energy portfolioHydropower is the renewable energy technology with thelongest and largest record within the WBG and the onewith the greatest predicted potential scale-up over comingdecades. However, there has been a rapid increase in “newrenewable energy”: wind, geothermal, biomass/ biogas/landfillgas, and solar (table 2.4) Although this chapter devotesspecial attention to hydropower, a discussion <strong>of</strong> barriers andinterventions in this chapter also draws on recent experiencewith wind projects, and lessons from these barriersand interventions apply to other forms <strong>of</strong> renewable energy.Grid-connected solar power is discussed in chapter 6.<strong>The</strong> WBG’s <strong>of</strong>f-grid renewable energy portfolioIn remote areas with low population densities, it can becheaper to provide decentralized renewable power throughhome systems or mini-grids than to extend the main electricgrid. 6 This has raised hopes <strong>of</strong> fighting both climatechange and poverty with a single instrument, or using climatefinance to promote rural access.Those hopes are manifest in the large investments in solarhome photovoltaic systems (SHS), the <strong>of</strong>f-grid technologywith which the WBG has the longest record and thefocus <strong>of</strong> the discussion <strong>of</strong> <strong>of</strong>f-grid renewable energy in thischapter. However, in the recent portfolio, SHS projects havebeen overtaken by small hydro and biomass (see table 2.5).Biomass projects include efficient cookstove projects as wellas power projects.Among <strong>of</strong>f-grid renewable energy technologies,solar home photovoltaic systems havethe longest record at the WBGFigure 2.6Power sourceWBG-Supported Grid-ConnectedGeneration Capacity by Technology,2003–08GasOilCoalGeothermalWind and solarLarge hydropowerSmall hydropower0 2,000 4,000 6,000 8,000 10,000MegawattsIDA countriesIBRD/Blend countriesSource: IEG component database.Note: Includes privatization and asset purchase in addition togreenfield investments.16 | Climate Change and the <strong>World</strong> <strong>Bank</strong> Group
Table 2.4 Commitments to Grid-Connected Renewable Energy by Technology and Funding 2003–08($ millions)Technology IBRD IDA IFC MIGA GEF <strong>Carbon</strong> Finance, <strong>World</strong> <strong>Bank</strong> & IFC TotalWind 335.7 32.9 38.5 71.2 42.8 521.1Hydropower 849.4 825.8 358.7 225.5 0.4 182.3 2,442.2Geothermal 202.0 31.5 57.3 88.3 8.5 18.6 406.3Biomass 20.0 28.0 32.7 40.2 108.1 229.1Solar 142.4 142.4Source: IEG.Note: Unit <strong>of</strong> analysis is the project component. Excludes freestanding WBG analytic and advisory activities, IFC advisory services, and specialfinancing. Components that support multiple technologies are included in each relevant row, so column totals should not be used. GEF =Global Environment Facility; IBRD = International <strong>Bank</strong> for Reconstruction and <strong>Development</strong>; IDA = International <strong>Development</strong> Association;IFC = International Finance Corporation; MIGA = Multilateral Investment Guarantee Agency.Analytic, advisory, and technical assistance projects<strong>The</strong> WBG also conducts analytic, advisory, and technicalassistance outside <strong>of</strong> investment projects. Within the<strong>World</strong> <strong>Bank</strong>, many <strong>of</strong> these activities have been funded bytwo donor-supported programs resident in the <strong>Bank</strong>: theEnergy Sector Management Assistance Program (ESMAP)and the Asia Sustainable and Alternative Energy Program(ASTAE).Many <strong>of</strong> the WBG analytic, advisory, andtechnical assistance activities have beenfunded by separate donor-funded programswithin the <strong>Bank</strong>.ASTAE is focused on energy efficiency, scaling up use<strong>of</strong> renewable energy, and increasing access to energy; itspecifically aims for high leverage. In contrast to otheranalytic and advisory assistance and investment units,ASTAE tracks specific indicators on its projects andsets impact-based (rather than expenditure-based) targets,though tracking and attribution is difficult. With$6.2 million <strong>of</strong> disbursements for fiscal 2007–09, ASTAEclamied support for new renewable energy capacity (withinvolvement in 1.03 GW <strong>of</strong> capacity from direct projectsand 12.4 GW from framework, regulation, and investmentmechanisms), energy efficiency savings (1.6 terawatt-hoursdirect, 26.2 terawatt-hours indirect 2007–09), householdaccess (611,000 new households direct, 200,000 indirect),and avoided CO 2emissions (99 million tons direct, 1,003million tons indirect).IFC advisory services cover a diverse range<strong>of</strong> activities related to renewable energy andenergy efficiency.IFC’s advisory services cover a diverse range <strong>of</strong> activity,including some investments. In the 2005–08 renewableenergy/energy efficiency portfolio <strong>of</strong> $40 million, $25 millionwas in GEF-supported projects with explicit climate goals.<strong>The</strong> largest, comprising about one-third <strong>of</strong> total value, waslinked to an IFC investment project; 19 <strong>of</strong> the remaining 20were not. Some projects included broad-based training andcapacity building. <strong>The</strong> non-GEF projects were mostly small(median size <strong>of</strong> $130,000) and involved technical assistanceto a specific firm; almost half were linked to an existing orprospective investment.Table 2.5 Off-Grid Investment Projects ($ millions), 2003–08IBRD IDA IFC MIGA GEF <strong>Carbon</strong> finance <strong>World</strong> <strong>Bank</strong> & IFC TotalWind 4.1 23.9 35.0 18.4 0.0 81.4Hydropower, all 84.0 222.8 0.0 64.0 6.8 377.6Biomass, all types 0.0 71.5 140.4 1.8 30.8 35.0 279.5Solar 50.5 171.9 10.0 73.2 7.1 312.7Unknown <strong>of</strong>f-grid 7.1 67.3 0.0 25.3 0.0 99.6Source: IEG.Note: Unit <strong>of</strong> analysis is the project component. Excludes freestanding WBG analytic and advisory activities, IFC advisory services, and specialfinancing. Individual components may appear in multiple rows if they support more than one technology, so column totals should not be used.GEF = Global Environment Facility; IBRD = International <strong>Bank</strong> for Reconstruction and <strong>Development</strong>; IDA = International <strong>Development</strong> Association;IFC = International Finance Corporation; MIGA = Multilateral Investment Guarantee Agency.Renewable Energy | 17
- Page 1 and 2: Phase II: The Challenge of Low-Carb
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- Page 5 and 6: Table of ContentsAbbreviations . .
- Page 7 and 8: Figures1.1 GHG Emissions by Sector
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A second issue, inherent to any adv
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goal of promoting wind turbine impr
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ConclusionsThe WBG’s efforts to p
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Table 5.1Carbon Funds at the World
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demonstration initiative. The Commu
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Impacts on technology transferThe 2
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Chapter 6Photo by Martin Wright/Ash
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Figure 6.1800Economic and Carbon Re
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Specifically, the WBG could:• Pla
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Table 6.1Summary of Sectoral Findin
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Table 6.1Sector Intervention Direct
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Appendix ARenewable Energy Tables a
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Table A.4Grid-Based Biomass/Biogass
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Table A.5 (continued)Negative examp
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Figure A.4A. Hydro/biomass capacity
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Appendix bWorld Bank Experience wit
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Table C.2Completed Low-Carbon Energ
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TAble C.4Reviewed energy efficiency
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the new capacity. Transmission syst
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Table E.2Climate obligationsCoal Pl
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Table F.2GHG objectiveModeNumber of
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IEG eliminated a few cases of doubl
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Table H.1Project andlocationBioener
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Appendix ICarbon and Economic Retur
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Appendix JRecent WBG Developments i
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y providing value to standing fores
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never had an explicit corporate str
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overnight. The Bank can provide ass
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Chapter 51. From the chief economis
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Hartshorn, G., P. Ferraro, and B. S
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______. 2007. World Development Ind
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IEG PublicationsAnalyzing the Effec