Overview of Energy Sector Activities of the World Bank

Nataliya KulichenkoSenior Energy Specialist

Sustainable Energy Department

Workshop on Carbon Capture and Storage: Perspectives for the Southern Africa RegionJohannesburg May 31st – June 1st 2011

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000 Renewable Energy, Energy EfficiencyPolicy Support, Transmission and Dis-tribution

US

$ M

illion

s

Rapidly Growing Portfolio• WBG energy

financing exceeded $13 billion in last fiscal year.

• Up from $2.3 billion eight years ago.

• All sources:• 40% IBRD• 21% IDA• 26% IFC• 4% MIGA• 5% Climate

Finance• 4% Other

sources

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•More financing from more sources.

•More partners working together.

Financing

•Geothermal in Africa, Indonesia

•Concentrating solar power (CSP)

•Carbon Capture and Storage (CCS)

Technology&

Approaches

Rapidly Growing Portfolio

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Partnerships

Global Environment

al Facility

Carbon Finance

Clean technology Fund (CTF)

Scaling Up Renewable

Energy (SREP)

Trust Funds

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Pioneering SWAP in Rwanda

6% of households have grid supply, but high density – 320 p/km2

Estimated capital costs of $378 million to 2013

$357 million pledged by 12 donors + GoR

706K new connections, 433MW new generation by 2020.

Examples of Projects

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Geothermal• Kenya

• Addition of 280 MW of installed geothermal capacity at Olkaria

• Indonesia• Financed through IBRD

loan and CTF• Construction of 110MW

and 40MW plants

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Examples of Projects

Concentrating Solar Power (CSP)

• Joint WB/GEF support for two hybrid Integrated Solar Combined Cycle plants in Egypt and Morocco, each with a 20 MW CSP component.

Provided significant lessons learnt in terms of procurement and local manufacturing possibilities

• Global CSP Program (TF funded) to enhance understanding of barriers to CSP deployment

Informs government policy on creation of suitable regulatory and financial incentive

• CTF Regional Investment Plan for CSP in MENA region aiming to support deployment of 1GW

• CTF support to South Africa CSP demonstration project of about 100 MW

• India CSP Program to support the implementation of Jawaharlal Nehru National Solar Mission

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Examples of Projects

Carbon Capture

and Storage Capacity Building

Trust Fund

Source Image: Vattenfall, Schwarze Pumpe

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Examples of Projects

World Bank Activities: CCS Trust Fund

Two core elements guiding its work at the international, regional and national levels: Capacity building and knowledge sharing assistance

regarding CCS, Carbon asset creation services.

In co-operation with leading international and bilateral initiatives (Global CCS Institute, Carbon Sequestration Leadership Forum, IEA Programs and others)

Total capitalization of the Trust Fund is $11 million: Government of Norway – $9 million, Global CCS Institute – $2 million.

The work program consists of the following two components: Country-level component focusing on nine country-

or project-specific activities ($6.9m) Analytical component: regional regulatory, economic

and financial instruments analyses, July 2010 – June 2011 ($0.61m)

CCS TF structure and work program

Main objectives of the CCS TF

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Nine country projects

South Africa

Botswana

Maghreb

Kosovo

China

Indonesia

India

Jordan

Egypt

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Work Program - Country level activities

Projects include: Assessment

s of geological storage

Training and workshops

Assessments of applicability of capture technologies

Country/region Amount allocated (US $m)

Botswana 1.4

Republic of South Africa 1.1

China 1.8

Kosovo 0.4

Indonesia 0.85

India 0.5

Egypt 0.3

Jordan 0.15

Maghreb 0.4

TOTAL 6.9

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Examples of country work program

BotswanaProject activities include

Identification of sites suitable for CCS geological storage or enhanced coal bed methane recovery

Formation of the Carbon Working Group Creation of a sustainable Carbon

Secretariat as part of the ministerial structure

Organization of at least 3 thematic workshops

Work Program - Country level activities

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Examples of country work program

South AfricaProject activities include

advance the work already carried out in identifying storage sites from the current theoretical storage

technical feasibility assessment for deployment of storage technologies

of a scoping study and business plan for the first test injection

review of regulatory and institutional adjustments

Work Program - Country level activities

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Examples of country work program

JordanProject activities include

Assessment of potential for CCS activities, such as CO2 sequestration in oil shale

Assessment of institutional capacity for CCS

Recommendations on capacity-building activities

Identification of barriers to CCS development and applications

Work Program - Country level activities

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Examples of country work program

KosovoProject activities include

Scoping study of geological storage potential

Pre-feasibility study for CO2 capture at the proposed KRPP

Training and thematic workshops for key CCS stakeholders

Work Program - Country level activities

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Analytical study: Carbon Capture and Storage: Regional Perspectives in developing countries

Work program element Location and scale

1 Review of Regulatory and Institutional Frameworks on CCS in the Southern Africa and Balkan regions

Regional, sector scale

2 Techo-economic assessment of CCS deployment in power systems in the Southern Africa and Balkan regions

Regional, sector scale

3 Assessment of climate finance sources to accelerate CCS deployment in developing countries

Global, sector scale

4 Financing model for CCS projects Project scale

The final report on the ESW work will be completed by July 2011

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World Bank CCS Trust Fund Events

Dubrovnik workshop May 4-5

Johannesburg workshop May

31st – June 1stWashington DC workshop at World Bank Group HQ September 7-8

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To inform potential CCS stakeholders in the Southern Africa region on the latest CCS developmentspotential prospects for CCS in the regionopportunities for capacity building

To promote knowledge sharing and encourage information exchange among local participants and international organizations with experience in CCS technological, financial and regulatory issues

To learn the CCS capacity building needs in Southern Africa

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Johannesburg workshop objectives

A breakout session to discuss your feedback on:potential for employing CCS as a climate mitigation technology in the region

barriers to employing CCS technologycapacity building needs in the region and/or specific countries

Can provide appropriate contacts and information in CCS capacity building activities

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Next steps

Thank you

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Back up slides

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Clean Technology FundFinance scaled-up

demonstration, deployment and transfer

of low carbon technologies

Strategic Climate FundTargeted programs with dedicated

funding to pilot new approaches with

potential for scaling up

Pilot Program

for Climate Resilience

Mainstream climate

resilience into core

development planning

Forest Investment

Program

Reduce emissions

from deforestation

and forest degradation

Scaling Up Renewable Energy in

Low Income Countries

Initiate transformational change by

use of renewable

energy

±$1.8 billion

Investment Plans

±$4.3 billion

• Support country and regional development strategies

• Leverage financial products of Multilateral Development Banks

• Stimulate private sector engagement

Climate Investment Funds

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CTF: Distribution by Technologies

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CTF: Allocation by Countries

CSP-M

ENA

Mex

ico

Sout

h Af

rica

Indo

nesia

Ukrai

ne

Egyp

t

Thai

land

Turk

ey

Philipp

ines

Viet

nam

Niger

ia

Kaza

khst

an

Colom

bia

Mor

occo

0100200300400500600700800

Allocation by Countries

CTF: Examples of Investments

• Financial Intermediary operation for RE/EE: Turkey

• Utility-Scale CSP: South Africa, MENA• Wind: South Africa, Egypt• RE: Thailand• Energy Efficiency: Mexico, Thailand, • Smart Grid: Turkey, Ukraine and Vietnam• Geothermal: Indonesia• Low Carbon Urban Transformation: Thailand• Bus Rapid Transit: in Egypt, Mexico,

Philippines and Thailand

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SCF: Scaling Up Renewable Energy Program in Low Income Countries(SREP)

Measuring Success• Remove barriers to renewable energy • Lead to replication of renewable energy

investments• Increase installed renewable energy capacity in

a country’s energy supply

Purpose ―To pilot and demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy

Scale ―$310 million in pledges for significant programs of capacity building and investments in renewable energy

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SREP Pilot Countries

• $ 60 million in reserve• Criteria for allocation of the reserve to be developed

Initial six countries selected

• Ethiopia: $ 25 million – 50 million • Honduras: $ 25 million – 30 million • Kenya: $ 25 million – 50 million • Maldives: $ 25 million – 30 million • Mali: $ 25 million – 40 million • Nepal : $ 25 million – 40 million

SREP Pilot Countries II

• Subject to availability of funds

Additional six pilots selected

• Armenia• Liberia• Mongolia• Pacific regional program• Tanzania• Yemen