ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ANNUAL REPORT 2021 ABOUT ESMAP The Energy Sector Management Assistance Program (ESMAP) is a partnership between the World Bank and 22 partners to help low- and middle-income countries reduce poverty and boost growth through sustainable energy solutions. ESMAP’s analytical and advisory services are fully integrated within the World Bank’s country financing and policy dialogue in the energy sector. Through the World Bank Group (WBG), ESMAP works to accelerate the energy transition required to achieve Sustainable Development Goal 7 (SDG7) to ensure access to affordable, reliable, sustainable, and modern energy for all. It helps to shape WBG strategies and programs to achieve the WBG Climate Change Action Plan targets. 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ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM ANNUAL REPORT 2021 TABLE OF CONTENTS ABBREVIATIONS II OUR DONORS III SECTION I: ESMAP AT A GLANCE IV ESMAP at a Glance 1 ESMAP Business Plan for FY2021–24 2 BY THE NUMBERS FY2021 4 SECTION II: OUR IMPACT IN FY2021 12 ENERGY DATA 14 Energy Data and Analytics Hub 15 FOUNDATIONS OF ENERGY TRANSITION 18 Utilities for Energy Transition 19 Electricity Markets, Grid Connectivity, and Regional Trade 20 Energy Subsidy Reform Facility 21 Supporting Coal Regions in Transition 23 ACCELERATING DECARBONIZATION 28 Efficient and Clean Cooling 29 Industrial Decarbonization 31 Geothermal Direct Use 32 Green Hydrogen Support Program 33 Zero Carbon Public Sector 33 CLEAN COOKING 36 Clean Cooking Fund 37 ELECTRICITY ACCESS 40 Integrated Electrification Strategies and Planning 41 Global Mini Grids Facility 42 Off-Grid Solar 44 Leave No One Behind 45 Improving Livelihoods and Human Capital 45 Financial Innovation for Energy Access 47 RENEWABLE ENERGY 48 Energizing Renewables 49 Energy Storage Program 50 Innovative Solar 52 Offshore Wind 56 Hydropower 57 ASSOCIATED TRUST FUNDS 64 Advancing Regional Energy Transformational Projects Multi-Donor Trust Fund 65 Carbon Capture Use and Storage 65 Small Island Developing States (SIDS) Dock 67 SECTION III: FINANCIAL REVIEW 68 Contributions 69 Disbursements 71 SPECIAL SECTIONS ESMAP’S COVID-19 RESPONSE 8 GENDER FOCUS IN ESMAP 24 PARTNERSHIPS 58 ABBREVIATIONS ii ESMAP Annual Report 2021 ADELE Access to Distributed Electricity and Lighting MDTF multi-donor trust fund in Ethiopia Mtce million tons of coal equivalent AREP Advancing Regional Energy Transformational MTF Multi-tier Framework Projects NEGU National Electric Grid of Uzbekistan BEIS UK Department for Business, Energy & NEP Nigeria Electrification Project Industrial Strategy PV photovoltaics (solar) BESS battery energy storage system RBF Results-based Financing CCF Clean Cooking Fund RISE Regulatory Indicators for Sustainable Energy CCUS capture, utilization, and storage ROGEP Regional Off-Grid Electrification Project CIF Climate Investment Fund SAPP South African Power Pool CTF Clean Technology Fund SDG Sustainable Energy Goals EAPP East African Power Pool SEforALL Sustainable Development for All (ESMAP EARF Energy Access Relief Fund initiative) EnDev Energising Development SIDS Small Island Developing States ESP Energy Storage Partnership SRMI Sustainable Renewables Risk Mitigation ESRF Energy Subsidy Reform Facility (ESMAP Initiative initiative) STEM Science, Technology, Engineering, and FCDO UK Government Foreign, Commonwealth and Mathematics Development Office TW terawatt FDP forcibly displaced person UN United Nations FY fiscal year UNHCR United Nations Refugee Agency GCF Green Climate Fund VRE variable renewable energy GDU Geothermal Direct Use WB / WBG World Bank / World Bank Group GERI Global Electricity Regulatory Index WePOWER Women in Power Sector Network in South GEP Global Electrification Platform Asia GFMG Global Facility on Mini Grids WHO World Health Organization GIS geographic information system GW gigawatt All currency in United States dollars ($, USD), unless GWEC Global Wind Energy Council otherwise indicated. GWh gigawatt hours HDF Hydropower Development Facility HEPA Health and Energy Platform of Action WORLD BANK REGIONS HLDE High-Level Dialogue on Energy (United Nations) AFR Sub-Saharan Africa IDA International Development Association EAP East Asia and Pacific IEA International Energy Agency ECA Europe and Central Asia IFC International Finance Corporation LCR Latin American and the Caribbean ILHC Improving Livelihoods and Human Capital MNA Middle East and North Africa IRENA International Renewable Energy Agency SAR South Asia km kilometer MARCOT Electricity Markets, Grid Connectivity and Regional Trade OUR DONORS iii  SECTION I ESMAP AT A GLANCE Photo © lovelyday12 / Getty Images ESMAP AT A GLANCE 1 WHAT HOW ESMAP AT A GLANCE The Energy Sector Management Assistance Program • Provides grants and technical support to countries (ESMAP) is a partnership between the World Bank and through World Bank Group operational units 22 partners to help low- and middle-income countries • Maintains an active portfolio of about $176.3 million, reduce poverty and boost growth through sustainable with FY2019–21 average annual disbursements about energy solutions. ESMAP’s analytical and advisory services $39.6 million are fully integrated within the World Bank’s country • Delivers key global knowledge products deployed for financing and policy dialogue in the energy sector. Through country engagements the World Bank Group (WBG), ESMAP works to accelerate • Develops external partnerships with international the energy transition required to achieve Sustainable organizations, research & development institutions, and Development Goal 7 (SDG7) to ensure access to affordable, industry associations reliable, sustainable, and modern energy for all. It helps • Collaborates across World Bank Group regional Energy to shape World Bank Group strategies and programs to units and sectors, such as Transport, Urban, Water, achieve the World Bank Group Climate Change Action Plan Health, and Gender targets. • Mobilizes donor resources for Bank-Executed Activities (co-financing IBRD and IDA operations). ESMAP raised $330 million for Business Plan FY17-20 ESMAP Business Plan FY2021-24 Structure Achieving Universal Access by 2030 (SDG 7) Achieving decarbonization across the energy sector in support of international commitments on climate change Clean Cooking Electricity Renewable Accelerating Fund Access Energy Decarbonization Country/Regional Integrated Electrification Energizing Renewables Zero Carbon Public Sector Investment Program Strategies and Planning Energy Storage Industrial Decarbonization Knowledge, Innovation and Global Mini-Grids Facility Innovative Solar Efficient and Clean Cooling Policy Coordination Off-grid Solar Offshore Wind Geothermal Direct Use Leave No One Behind Hydropower Development Green Hydrogen Improve Livelihoods and Facility Human Capital Financial Innovation for Energy Access Foundations for the Utilities for the Energy Transition • Energy Markets, Connectivity and Regional Trade • Energy Subsidy Reform Facility Energy Transition Closing Gender Gaps in Energy • Supporting Coal Regions in Transition Energy Data Analytics Tracking SDG7 • Regulatory Indicators for Sustainable Energy • Multi-Tier Energy Access Tracking Framework Regulatory Benchmarking Project • Global Electrification Platform • Demand Estimation 2 ESMAP BUSINESS PLAN FOR CONTEXT FY2021–24 This year has provided an extraordinary set of challenges ESMAP Annual Report 2021 The ESMAP Business Plan for FY2021–24 lays out our for the start of ESMAP’s four-year business plan. The programs and our progress toward the overarching twin unrelenting persistence of the COVID-19 crisis has objectives of achieving universal energy access by 2030 produced repetitive cycles of life/work disruption, and advancing decarbonization in support of international devastating health impacts, and major economic distress. commitments on climate change, consistent with the World Developing countries have been especially impacted Bank Group’s mission of ending extreme poverty and and face the prospect of tragic reversals. Concurrently, boosting shared prosperity. Pursuant to these objectives, there has continued to be an urgent need to decarbonize ESMAP works within four overarching interlinked our energy systems, to limit the global temperature rise programs, which focus on Clean Cooking, Electricity to 1.5° Celsius, and to achieve universal access to basic Access, Renewable Energy, and Decarbonization and are services—2.6 billion people still live without clean cooking underpinned by two cross-cutting programs: Foundations and nearly 760 million people live without access to for the Energy Transition and Energy Data and Analytics. electricity. These issues remain critical for people’s lives Developed during the COVID-19 crisis, the ESMAP Business and the future of our planet. Plan also draws on the conclusions and recommendations of the External Evaluation. Governments in developing countries, understandably, have been under immense pressure to steer their The overall budget target for the ESMAP Business Plan countries toward economic recovery from the COVID-19 FY2021-24 was initially set for $1.3 billion, of which $540 crisis. This crisis has amplified the criticality that recovery million would be for Bank-executed activities (primarily and growth are sustainable, resilient, affordable, and advisory services and analytics) and $740 million for equitable. These competing priorities are extremely recipient-executive grants (primarily co-financing IBRD/ challenging to manage, and developing economies are IDA operations). The largest components of the $740 struggling to find the balance. The year 2021 saw an million are $450 million for the Clean Cooking Fund; and average 6 percent growth across emerging markets about $100 for the COVID-19 response, to electrify health and developing economies; however, only a fraction of facilities through renewable energy, to support an energy spending in these economies has directly supported access relief fund, and the deployment of climate-friendly a sustainable recovery. Consequently, despite the cold chains to deliver COVID-19 vaccines in client countries. widespread consensus to “build back better,” the world is in the midst of uneven and unsustainable economic In Section I, this annual report articulates how ESMAP recovery, with emissions set for the second largest worked toward implementing its business plan in FY2021 rebound in history. (July 1, 2020–June 30, 2021), during global challenges of great magnitude, including the COVID-19 pandemic, the It is clear that a dramatic shift will be required to get the growing need for action to limit global warming to 1.5° world on track to meet the global climate commitments Celsius, and the need to scale up efforts significantly to established under the Paris Agreement and to meet meet the UN Sustainable Development Goal 7 (SDG 7) SDG 7—universal access to affordable, reliable, and targets by 2030. Section II follows the structure of the modern energy services (see Box 1.1). For example, the new business plan, reporting on ESMAP activities within International Energy Agency (IEA) estimated that for each workstream. Section III contains a financial review, the world to reach net-zero emissions by 2050, global including a breakdown of lending activities by region and annual investments in clean energy will need to more thematic area. than triple by 2030 to around $4 trillion. Given this huge financing requirement, it is imperative that public funds are deployed wisely to catalyze the vast sums of private co-financing that will need to be mobilized. 3 ESMAP AT A GLANCE Photo © Kamyar Adl To help address these challenges, the World Bank Group In FY2021, ESMAP focused on supporting governments has revamped its efforts to support client governments. to address the three aforementioned, compounded Since the start of the COVID-19 crisis, the World Bank challenges. To assist clients with their COVID-19 response Group has committed over $125 billion to fight the health, and recovery, ESMAP’s support has concentrated on the economic, and social impacts of the pandemic. This sustainable electrification of health facilities and provision financing is helping more than 100 countries strengthen of climate-friendly cold chains, and the establishment of pandemic preparedness, protect the poor and jobs, and the Energy Access Relief Fund (EARF; see ESMAP’s COVID-19 jumpstart a climate-friendly recovery. The World Bank Response, p. 8). ESMAP’s support efforts for the global Group’s new Climate Change Action Plan (see Box 1.2) transition to low-carbon energy and securing universal establishes fresh objectives to help countries meet the access to energy have centered on the mobilization of goals of the Paris Agreement by fully integrating climate climate finance through initiatives such as the Cooling and development, and maximizing the deployment and Facility and the Sustainable Renewables Risk Mitigation impact of climate finance. Initiative (SRMI), which led to $280 million being unlocked in FY2021. In addition to the dynamic response to these ESMAP’s role and structure meant that it was uniquely critical global issues, ESMAP has also continued its positioned to provide support to overcome the fundamental role in implementing the business plan based unprecedented challenges of FY2021. The team’s on client demand. international energy experts enable ESMAP to provide ahead-of-the-curve thinking on global development ESMAP’s positive impact in FY2021, presented in Section topics, effectively delivering strategic upstream support II of this annual report, demonstrate that ESMAP’s new and financing where and when it is most needed. These business plan—approved before the impact of the activities inform the World Bank’s energy sector policy pandemic became apparent—is fit for purpose and has dialogue and provide solutions to major development provided the flexibility needed to respond to urgent, critical challenges. In turn, ESMAP’s leading initiatives directly demands. This year has also underscored the magnitude of deploy critical investment from concessional and climate the climate and access challenges facing the world and the finance, and help to catalyze private sector investment. need to step up our ambition and efforts. BY THE NUMBERS FY2021 4 ESMAP Annual Report 2021 Fiscal year 2021 was the first year of implementation of ESMAP’s four-year business plan for FY2021-24, $49.8 million in new activities which focuses on four thematic programs—Electricity approved in FY2021 Access, Clean Cooking Fund, Renewable Energy, and Accelerating Decarbonization—hinged upon cross- cutting areas of Foundations for the Energy Transition A total of 100 activities were and Energy Data and Analytics. supported by ESMAP in FY2021 With an active portfolio of $176.3 million, as of the end of 75 activities in 25 activities June 2021, encompassing more than 267 activities across 44 countries with a global more than 75 countries, ESMAP is helping to shape global (excluding regional focus energy policies while underpinning significant World Bank activities) development financing. Concrete program results are illustrated throughout the report. Number of Activities by Region, FY2021 Grant Amount by Region, FY2021 (US$ Million) 30 20 15 20 10 10 5 0 0 AFR EAP EAC LAC MENA SAR Global AFR EAP EAC LAC MENA SAR Global Grant Amount by Thematic/Cross Cutting Areas, FY2021 (US$ million) AFR EAP EAC LAC MENA SAR Global 0 5 10 15 20 Accelerating Decarbonization Annual Block Grants Clean Cooking Fund Electricity Access Energy Data & Analytics Foundations for Energy Transition Other Renewable Energy B O X 1 .1 5 ESMAP AT A GLANCE Photo © Jean-Marc Ferre / UN Photo UNITED NATIONS HIGH-LEVEL DIALOGUE ON ENERGY (HLDE) The High-level Dialogue on Energy, held in September 2021, was the first global gathering on energy under the auspices of the General Assembly since the UN Conference on New and Renewable Sources of Energy, held in Nairobi in 1981. The overarching goals of the dialogue were to promote the implementation of the energy-related goals and targets of the 2030 Agenda for Sustainable Development and to accelerate action toward the achievement of the SDG 7 targets by catalyzing innovative solutions, investments, and multi-stakeholder partnerships. World Bank/ESMAP co-led the Working Group on Energy Access, one of five groups that informed the deliberations of the High-Level Dialogue on Energy, and took an active role in drafting the accompanying report on Energy Access: Towards the Achievement of SDG 7 and Net-Zero Emissions. The report included recommendations on how to accomplish universal access to electricity and clean cooking by 2030 and listed intermediate targets by 2025. BOX 1.2 WORLD BANK AND ESMAP CLIMATE 6 CHANGE ACTION ESMAP Annual Report 2021 The latest Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC) has emphasized that the risks of inaction—resulting from continued unabated coal-fired generation and use—are untenable and existential. The World Bank Climate Change Action Plan (2021–25) or CCAP emphasizes the need to support countries planning a transition away from coal, helping them develop clear roadmaps for a just energy transition that focus on governance structures, the welfare of people and communities, and the remediation and repurposing of former mining lands and coal-fired power plants. In addition to the power sector, coal use in other areas such as industries, transport, and home heating, which are hard to abate, also need special attention. Significant upstream support of identifying clean energy options, including electrification options, is critical. ESMAP support to countries is already fully aligned with these objectives, but there will be an increasing need for support in this area in the coming years. Countries look on one hand to a clean energy future maximizing the socioeconomic benefits of green energy supply chains, but on the other hand also need to contend with technical challenges as well as the socioeconomic realities of reducing coal dependency. A significant challenge to a transition away from coal—both for mines and power plants—pertains to its workforce and the associated communities who are dependent on coal for their livelihoods. These workers have spent a considerable period of their lives carrying out specialized functions at these facilities and/or depending on economic activities as a result of their proximate location. Women may be affected more, not just through direct job loss, but also through household tension and gender-based violence that can be created by job loss by the men in the household. Impacts on the transportation sector, including trucking and railways that are associated with coal transport, also need consideration. It is critical to identify and support relevant institutions, stakeholders, and decision making structures, both at the local and regional levels, in order to ensure effective implementation. A comprehensive effort by countries to retire and repurpose coal assets—power generation, mines, and workers—faces several economic and political barriers, is exceedingly ambitious in terms of scale and pace, and has true transformational potential at the national and global level. ESMAP is already supporting technical, governance, and socioeconomic aspects of the coal transition efforts in India, South Africa, and the Western Balkans. Industrial decarbonization efforts are also being supported in India, Kazakhstan, and Vietnam, but need to be expanded in scope and regional focus. TABLE 1.1: ESMAP Support to Climate Change Action Plan Implementation 7 CCAP Priority ESMAP Key Inputs ESMAP AT A GLANCE Scale Up Clean Energy Systems ESMAP supports an increasing renewables portfolio in all aspects of solar, wind, hydropower, and geothermal, offshore wind technology, and green hydrogen; as well as energy storage technologies, including with the Energy Storage Partnership. Rooftop solar, mini grids and off-grid solar are a key contribution to distributed renewables. Power System Planning ESMAP knowledge helps reduce demand—through improved energy efficiency, demand management tools such as smart metering, and reduced transmission losses—and improve supply— through more reliable and resilient solutions for the power grid, including analytic support to utilities, electrification strategies and planning, and demand estimation. ESMAP plays a catalytic role in facilitating regional trade and building regional markets, including testing innovative market incentives and trading mechanisms in sub-Saharan Africa. Fossil Fuel Subsidy Reform Advance fossil fuel reforms to eliminate or reduce energy subsidies through the ESMAP Energy Subsidy Reform Facility. Energy Efficiency Tracking SDG 7: Energy Progress Report is a comprehensive tool to track energy data, including efficiency. The new program Energy Markets, Connectivity and Regional Trade and the AREP multi-donor trust fund inform efficiency in regional electricity trade. The Efficient and Clean Cooling initiative accelerates the uptake of sustainable cooling technologies and policies. ESMAP’s Zero Carbon Public Sector initiative focuses on retrofitting public buildings. The Clean Cooking Fund supports modern energy cooking services that are clean and efficient. Small Island Developing States (SIDS) DOCK supports the transition to improved energy efficiency. A Just Transition Away Leadership from the Supporting Coal Regions in Transition pioneers supply side from Coal pilots and solutions around the closure and repurposing of coal mines and coal- fired power plants on the demand side, solutions in the switch to low-carbon energy sources, and scaling up of renewable energy investments. ESMAP’S 8 ESMAP Annual Report 2021 COVID-19 RESPONSE To help developing countries contain the spread and impact of COVID-19, the World Bank Group mounted the largest crisis response in its history, helping over 100 developing countries address the health emergency, protect the poor and vulnerable, support businesses, and jump- start a green, resilient, and inclusive recovery. As part of the World Bank Group’s response, ESMAP developed a three-prong approach targeted at addressing key energy challenges exacerbated by the health crisis: • The acute lack of access to sufficient and reliable electricity in many health facilities, with an estimated 1 billion people relying on health facilities without electricity • Significant gaps in the cold chains needed to deploy vaccines safely and efficiently • Severe financial stress on the off-grid and mini-grid energy access sector supporting more than 500 million people From March 2020 onward, the ESMAP COVID-19 response team consolidated its expertise and developed strong collaboration with the Bank’s Health Global Practice and global partners to rapidly deliver a climate-informed COVID-19 response activity focused on three key pillars: 1. Electrification of health facilities with renewable energy 2. Reliable and climate-friendly cold chains 3. Energy Access Relief Fund (EARF) in collaboration with 12 partners The ESMAP response, centered on these three pillars, was grounded in two main ESMAP programs: Improving Livelihoods and Human Capital, under the ESMAP Electricity Access program; and the Efficient, Clean Cooling program, under the ESMAP Accelerating Decarbonization program. Other ESMAP programs also contributed, including Off-Grid Solar, which led on the Energy Access Relief Fund (EARF) initiative, Mini Grid Facility, Battery Storage, Zero Carbon Public Sector, and Leave No One Behind. 1 ELECTRIFICATION OF HEALTH FACILITIES WITH 9 RENEWABLE ENERGY AND SUSTAINABLE OPERATIONAL MODELS ESMAP AT A GLANCE ESMAP provided grants to Afghanistan, Haiti, and Liberia, small and fragile countries, to electrify priority healthcare facilities and vaccine cold storage facilities deemed necessary for the COVID-19 response. The grants were processed as part of new or restructuring of energy and health projects. In Nigeria, the ESMAP team helped the Rural Electrification Agency to restructure the Nigeria Electrification Project and allocate more than $70 million from the mini grid budget to rapidly deploy solar hybrid systems for 400 healthcare facilities on potential and likely mini-grid sites. Photo © Dominic Chavez / World Bank ELECTRIFICATION OF HEALTH FACILITIES IN LIBERIA An estimated 95 percent of healthcare facilities in Liberia either have no electricity or they rely on costly diesel generators. For the few that are connected to the grid, the service is intermittent and of poor quality. When the COVID-19 pandemic hit, it exacerbated the urgent need to bring electricity to these facilities. In March 2021, the World Bank’s Liberia Electricity Sector Strengthening and Access Project received additional support from a $2.5 million ESMAP grant and a $2.7 million grant from Japan. The additional funding was provided for the electrification of healthcare and vaccine cold storage facilities through standalone solar systems. With ESMAP technical assistance to its design and implementation, the project focuses on urgent provision of solar PV services to (1) selected health facilities to enhance the delivery of healthcare services and improve their resilience during epidemics; and (2) identified vaccine storage facilities to support the COVID-19 vaccine cold chain. 2 DEPLOYMENT OF RELIABLE AND CLIMATE-FRIENDLY 10 COLD CHAINS TO DELIVER VACCINES ESMAP was a part of the World Bank’s COVID-19 Vaccine Delivery Taskforce, where it collaborated ESMAP Annual Report 2021 with key internal and external stakeholders, including WHO, UNICEF, and Gavi on the deployment of reliable and climate-friendly cold chains. In addition to its technical and advisory support, ESMAP allocated a total of $9 million to COVID-19 response projects in Cabo Verde, Comoros, Eswatini, Ethiopia, Malawi, Niger, São Tomé, Somalia, South Sudan, Sudan, Zambia, and Zimbabwe to support activities strengthening vaccine cold chains and health facilities. Leveraging its various knowledge products and sector expertise, the ESMAP team also provided in- kind technical cross-support to several World Bank Health operational teams to support COVID-19 response projects focused on reliable and climate-friendly cold chains and health facilities in the following countries: Burkina Faso, Mongolia, Philippines, and Tunisia. Photo © Asian Development Bank NEW ENERGY-EFFICIENT VACCINE STORAGE IN MONGOLIA In Mongolia, ESMAP provided in-kind support for the design of a new energy-efficient central vaccine storage facility, which was financed by the World Bank, working with UNICEF as the implementing agency. The vaccine facility, constructed in just over three months and inaugurated in August 2021, is equipped with over 10,000 pieces of energy-efficient, advanced equipment. This includes cold rooms ranging from 20-40 m², voltage stabilizers for cold and freezer rooms, and different capacity refrigerators and freezers complete with full sets of parts and supplies. The new Mongolia central vaccine storage facility was inaugurated by the Prime Minister and constitutes a good example of World Bank-ESMAP-UNICEF collaboration, working effectively and efficiently together in support of the country’s COVID-19 response, and making a real difference for the health and wellbeing of the Mongolian people during the COVID-19 crisis. 3 CREATION OF $68 MILLION ENERGY ACCESS RELIEF 11 FUND (EARF) IN COLLABORATION WITH 12 PARTNERS ESMAP contributed $2.24 million to the $68 million Energy Access Relief Fund (EARF), a facility ESMAP AT A GLANCE bringing together ESMAP, leading DFIs including FMO, U.S. International Development Finance Corporation (DFC), and CDC, private investors including Acumen, and foundations such as IKEA and Rockefeller, designed to provide emergency capital to energy access companies serving more than 20 million low-income households and micro-businesses in sub-Saharan Africa and Asia. In some countries, mini grids and off-grid solar solutions have generated about as many connections in the past 10 years, at a lower cost, as the national grid was able to deliver in the past 50 years, but COVID-19 is now threatening to disrupt this promising trend. Broken supply chains, increased costs of solar components, households struggling to make regular energy service payments, and continued COVID-19 lockdowns have crippled the energy access industry. SECTION II OUR IMPACT IN FY2021 Photo © Hannah Blair / CLASP OUR IMPACT FY2021 13 Our Impact in FY2021 $10.4 BILLION 3 GW in World Bank development financing informed of renewable energy expected to be installed $3.6 BILLION 39.8 MILLION external financing mobilized, including private sector1 MT of CO2 emissions expected to be reduced $5 BILLION 1 MILLION MWh climate finance informed projected lifetime energy and fuel savings to be achieved 18 MILLION people expected to gain access to electricity, of which 15.3 MILLION people will gain access to renewable energy 5.2 MILLION people have gained access to electricity 58.2 MILLION beneficiaries (households, communities, public facilities, utilities, industrial enterprises, etc.) expected to be reached by ESMAP-informed World Bank development financing n addition, under the Electricity Access program $261 million private investments are expected to be mobilized during project implementation as part of projects’ results 1 I framework; $498.4 million private investments were raised during project implementation of previously informed projects; and $87.3 million other co-financing (MDBs, DFIs, governments) was raised during project implementation, is part of parallel financing or expected to be mobilized as part of the project’s results framework. Under the Energizing Renewables program additional $1.5 billion of private financing is expected to be mobilized as part of projects’ results framework. SECTION II O U R I M PAC T I N F Y2 0 2 1 ENERGY DATA According to the Tracking SDG 7: Energy Progress Report, 759 million people still lacked access to electricity in 2019. Under current and planned policies and further affected by the COVID-19 crisis, an estimated 660 million people will still lack access in 2030, most of them in Sub-Saharan Africa. Photo © Shutterstock 15 Although the world has made important gains toward energy teams, governments, and development partners SDG 7, efforts have been falling well short of the scale in the countries where data are collected; (2) enhancing required to reach the SDG 7 targets (see Box 2.1) by 2030. capacity building to collect data sustainably and apply Energy Data This has only been exacerbated by the COVID-19 crisis, findings more effectively to policymaking; (3) making which is having a serious effect on SDG 7 progress. At methodology more transparent, critical to ensure the same time, the pandemic has pointed to the urgent credibility of the data; and (4) fostering collaboration need for access to reliable, affordable, sustainable, and between agencies to enable more effective dissemination. modern energy—for hospitals and health facilities to treat patients, for schools to prepare children for the digital economy, for communities to pump clean water, and for ENERGY DATA AND ANALYTICS HUB people to gain access to information. The full impact of the crisis is yet to become clear. Over the coming years, Data and analytics are key elements for evidence-based more data on the crisis impact to progress toward SDG 7 decision making on policies and investments necessary for will become available. achieving SDG 7. However, comprehensive, detailed data at the global, national, and regional levels for energy access The core work of ESMAP’s Data and Analytics Hub is now (electricity and cooking solutions) is lacking. Geospatial more relevant than ever, as the hub has the capacity information gaps are a barrier to electrification planning, to assess the impact of COVID-19 on energy access, and more efficient ways to collect data on energy access renewables, and energy efficiency. The hub also assesses are required to support scaled-up investment. energy-related needs in the pandemic response and rebuilding efforts. Analytic support to assess the current The ESMAP Energy Data and Analytics Hub aims to be an and potential electricity demand will help clients and all-inclusive data and knowledge platform that offers a World Bank teams to respond to end-user needs and push free, unique breadth of energy-related information to use. productive use efforts successfully. The hub manages several energy data platforms, as well as four synergetic products—Tracking SDG 7, the Multi-Tier The Data and Analytics Hub draws from lessons learned Framework, RISE, and Energy Demand Estimation—that over time with the implementation of ESMAP’s programs, track SDG 7. including the importance of: (1) engaging operational 150 The electricity access rate, in access-deficit countries, must increase from 82% in 2019 to 94% by 2025 to achieve 100% access by 2030. This means a yearly gain of two percentage points, or electrification being brought to about 150 million people between now and 2025. This represents a 33% increase: an extra 0.5 percentage points or additional 40 million people million per year over the current rate of progress. B O X 2 .1 SUSTAINABLE DEVELOPMENT GOAL 7 16 ESMAP Annual Report 2021 SDG 7 is one of the 17 Sustainable Development Goals established by the United Nations General Assembly in 2015. It aims to “[e]nsure access to affordable, reliable, sustainable and modern energy for all.” The goal has five targets, to be achieved by 2030: Target 7.1: Universal access to modern energy. This target has two indicators: • Indicator 7.1.1: Proportion of population with access to electricity. • Indicator 7.1.2: Proportion of population with primary reliance on clean fuels and technology. Target 7.2: Increase global percentage of renewable energy. Target 7.3: Double the improvement in energy efficiency. • Target 7.A: Promote access to research, technology and investments in clean energy. • Target 7.B: Expand and upgrade energy services for developing countries. EnergyData.info. EnergyData.info is an open data Advisory Group at the UN. As the custodian agency for platform providing easy, free access to data and SDG 7.1.1, the World Bank/ESMAP is responsible for the analytics relevant to the energy sector. This platform electrification data and the chapter on access to electricity. serves as a public good available to governments, In FY2021, the ESMAP team introduced the notions of development organizations, the private sector, affordability, availability, and reliability to the tracking. The nongovernmental organizations, academia, civil seventh edition of the report was published in June 2021; it society organizations, and individuals to share data found that a greater share of the global population gained and analytics that can complement ESMAP data to access to electricity than ever before, but the number of help achieve SDG 7 targets. ESMAP is also developing people without electricity in Sub-Saharan Africa increased. web-based GIS visualization applications hosted on According to the report, the number of people without the EnergyData.info platform that are used by Bank access to electricity declined globally from 1.2 billion in teams and external stakeholders for making informed 2010 to 759 million in 2019. However, under current and decisions and developing effective projects. planned policies, plus the effects of the COVID-19 crisis, an estimated 660 million people would still lack access in Tracking SDG 7: Energy Progress Report. The report is 2030, most of them in Sub-Saharan Africa. a comprehensive tool that tracks 220 countries’ progress toward achieving the SDG 7 energy pillars on access to Multi-Tier Energy Access Tracking Framework. The electricity, clean cooking, renewables, and efficiency. It is Multi-Tier Framework (MTF) is a tool that identifies jointly produced every year by the five SDG 7 custodian and analyzes on a country level the main reasons that agencies, namely the World Bank/ESMAP, the International households are not using electricity, or that their use Energy Agency (IEA), the International Renewable Energy is limited, and then recommends a set of measures to Agency (IRENA), the United Nations Statistics Division remove the identified constraints. By going beyond the (UNSD), and WHO, with the support of the SDG 7 Technical traditional binary measure of “connected or not connected” 17 for electricity access and “solid versus nonsolid fuels” for cooking, the framework provides more accurate data on the actual services households received. The MTF is a Energy Data complementary source for tracking SDG 7, helping inform policy and investment decisions concerning access. Since its creation in 2015, the MTF has collected data from 21 countries. In FY2021, MTF country reports on Nigeria and Liberia were published. Regulatory Indicators for Sustainable Energy (RISE). RISE is the first global scorecard that captures the policies and regulations in place to facilitate progress on SDG 7. RISE is published biannually and is available free on an online data platform (rise.esmap.org) that enables users Photo © Volkovslava/Shutterstock to customize the information they need on each country’s power sector and regulatory and policy framework. RISE indicators are included in the outputs of several using reliable and transparent estimation tools and data well-established global initiatives, including the REN21 for the residential and agricultural customer segments of Renewables Global Status Report, Clean Cooking Alliance electrification strategy. Communication Corps, and SDG 7 policy briefs compiled by the multi-stakeholder SDG 7 Technical Advisory Group. In FY2021, the Energy Data and Analytics Hub’s products The third edition of RISE “RISE 2020: Sustaining the and database informed more than 30 lending or research Momentum” was launched in December 2020 and includes projects. Out of the 33 energy and extractives operations 138 countries, 32 indicators and more than 160 questions. approved in that fiscal year, 11 of them used the hub as This edition tracks for the first-time clean cooking policy an informative resource; all grant proposals submitted and regulations pillar in more than fifty countries. RISE to ESMAP in FY2021 indicated that they have used the indicators informed countries on policy best practices Knowledge Hub products to inform the advisory and and provided framework to sustainable energy policy analytical products. pathways. RISE outputs were used to track progress of several ESMAP grants and World Bank projects, including, For example, in its project on promoting access and among other, the ECA Sustainable Heating Program, transition to clean energy in the Sahel, the World Bank Western Balkans Energy Transition Program, Haiti team used Tracking SDG 7 data extensively to engage client Electricity Access and Sustainable Resilient and Inclusive countries in dialogue on how to push the SDG 7 agenda Development of the Energy Sector, Haiti Renewable Energy forward in the region. for All Project. Similarly, the MTF informed the implementation of the The Global Electricity Regulatory Index (GERI). The World Bank project on solar energy in local communities index is a companion piece to the RISE scorecard and is in Burundi. The project seeks to expand access to jointly produced by the African Development Bank and the energy services in rural areas of the country, and the World Bank. GERI collects data from over 100 developing MTF provided detailed information on the energy access countries to track the gaps between regulation and actual situation of households, including quantity and quality of implementation. This enables users to identify gaps in services. their country’s regulatory framework and benchmark their performance against global peers. In Mozambique, the Electricity Demand Estimation program supported the preparation of an energy access Electricity Demand Estimation. The Electricity Demand project, helping to illuminate the potential demand from Estimation program supports World Bank operations in the irrigation sector and the optimal energy solutions.   SECTION II O U R I M PAC T I N F Y2 0 2 1 FOUNDATIONS OF ENERGY TRANSITION COP26 stressed the urgent need for the energy sector to step up its game to help curtail global warming and warned that the window of opportunity is narrowing with intense speed. Photo © Asian Development Bank 19 The world must use the opportunity today to move rapidly 3. Helping countries to stop subsidizing fossil fuels to a decarbonized energy sector taking advantage of and remove subsidies and other distortions (Energy the plummeting cost of renewable sources of energy; Subsidy Reform Facility) Foundations of Energy Transition technological advances in demand management, storage, and digitalization; and new decentralized business models 4. Supporting transitioning from coal and least-cost for service delivery. The energy transition will need to be planning (Supporting Coal Regions in Transition) based on renewables and efficient technologies as the breakdown of electricity generation by source (see Figure 5. Promoting gender equality in the energy sector 2.1) in a Paris Agreement-compatible scenario (IRENA 2019). (Closing Gender Gaps in Energy) However, achieving these targets by using existing ways of doing business is not an option, and new, innovative UTILITIES FOR ENERGY regulations, policies, and markets need to be deployed. TRANSITION The energy transition should also ensure that its socioeconomic impacts are positive and equitable, such as The energy sector is under transformation, driven by improved gender balance in the energy sector. decarbonization goals and technological advancements that are challenging the traditional modus operandi of A foundation for energy transition lies in a well-functioning, utilities and the adequacy of existing regulations. The financially sound power sector. Therefore, ESMAP— increasing availability of cost-effective digital technologies through its overarching Foundation for Energy Transition is opening new opportunities for enhanced data-driven program—takes on the challenge of gluing together decision making, automation, and new business models various ESMAP programs and providing a comprehensive that can help improve the flexibility and reliability of the policy framework for the energy transition by employing grid. This is critical for the higher penetration of variable innovative solutions in five interlinked areas: renewable energy, distributed energy resources, and the clean energy transition. 1. Designing new business and regulatory models for utilities for the future, able to maintain financial The Utilities for Energy Transition program supports viability and service standards (Utilities for the Energy utilities that are grappling with this changing landscape. Transition program) The program provides technical assistance and pilot programs to guide utilities’ investments in digital and 2. Developing competitive markets, connecting regions, decentralized technologies, such as advanced metering and deploying power trade mechanisms that provide infrastructure, and grid-connected distributed energy the price signals and incentives needed to induce the resources. In FY2021, the program focused on bolstering 34 investment in the right technologies and behaviors an enabling environment, including regulatory frameworks (Markets, Connectivity and Trade program) to put in place appropriate incentives for the investment in % Coal is still the world’s most dominant energy source, generating 34 percent of global electricity in 2020. There is approximately 2,000 GW of coal- based generation capacity remaining worldwide, despite widespread recognition of coal’s strong negative impact on climate change. 20 Figure 2.1. Electricity Generation by Source, 2019 50,000 ESMAP Annual Report 2021 Electricity Generation (TWh/yr) 40,000 30,000 24% 85% Renewables Renewables 20,000 76% Non-Renewables 15% 0 Non-Renewables 2015 2015–2050 2050 Changes REmap Case Others (incl. marine and hybrid) Geothermal Wind CSP Solar PV Bioenergy Hydropower Nuclear Natural Gas Oil Coal Source: Innovation landscape for a renewable-powered future: Solutions to integrate variable renewables, IRENA, 2019. such technologies, the emergence of decentralized energy The situation is becoming especially acute at the time resources, and associated business models. when the world is undergoing an accelerated energy transition, driven by rapidly changing technological, In Kenya, for example, which implemented an expansive environmental, and economic factors. These include electrification project, as well as in Niger, the Utilities for falling costs of renewables, leading to their progressive Energy Transition program provided support with studies adoption; the decentralization of generation, propelled by on electricity demand. The program leveraged utility data the growing availability and reduced costs of distributed and piloted options for appliance finance and distribution energy resources; and changes in the responsiveness of to make demand-stimulating appliances affordable to demand, enabled by the advancement of information consumers, in collaboration with ESMAP’s Innovative and communication technologies (electric vehicles, smart Financing for Access program. metering, digitalization) and socioeconomic transformation (urbanization, industrialization). ELECTRICITY MARKETS, GRID The Electricity Markets, Grid Connectivity and Regional CONNECTIVITY, AND REGIONAL Trade (MARCOT) program is one of the newest windows of ESMAP. Establishing the MARCOT program reflects the TRADE desire, from several angles—from the client countries, Well-functioning electricity markets—able to provide from the Bank management, and from the ESMAP efficient price signals to guide dispatch and inform donors—to systematize vast knowledge of the Bank’s investment—are needed to stimulate the appropriate engagement in the area of power market reforms, set and timely investment required to achieve low-carbon up a consolidated center of expertise on power market and electricity security goals at least cost and, as such, solutions tailored to the changing environment and client facilitate and support achievement of the SDG 7 targets. countries’ evolving needs, and provide a practical platform for implementing recommendations from the Bank’s ENERGY SUBSIDY REFORM FACILITY 21 2019 flagship report Rethinking Power Sector Reforms in the Developing World. Established in 2013, ESMAP’s Energy Subsidy Reform Foundations of Energy Transition Facility (ESRF) supports governments in the design and In FY2021, the MARCOT program allocated technical implementation of energy subsidy reform programs. The assistance grants to a total of 16 activities in all the regions facility supports analytic work on various aspects of the the World Bank serves (except EAP), focusing on strategic complex energy subsidy reform agenda, including poverty, objectives of increasing the number of countries with: (1) social protection, fiscal management, macroeconomics, established or improved markets for energy services; (2) political economy, communication, and climate change interconnected grids and increased regional trade; and (3) mitigation. increased financing from the public and private sources. There is growing recognition of the need to reform fossil The program teamed up with the RISE team to establish fuel subsidies in view of their climate impact, significant a comprehensive, regularly updated database of power fiscal cost, and the economic distortions they create. With markets globally. The database holds information global cumulative subsidy spending in 2020 estimated at about the electricity sector/market characteristics and $180 billion, per IEA figures, energy subsidies impose a development over time, presenting a completely new and heavy burden on governments and taxpayers, and divert unique offering for benchmarking the performance of limited government resources away from critical priorities. developing markets. These priorities include recovery from the global pandemic, investments in green infrastructure, and strengthening The MARCOT program also launched a series of formal service delivery in health and education. training courses on the “Fundamentals of Energy Markets.” Reflecting the global recognition of the importance of subsidy reform and the complex challenges that need to BOX 2.2 U Z B E K I S TA N FINANCIAL ANALYSIS OF THE NATIONAL GRID In Uzbekistan, an in-depth study of the National Electric Grid of Uzbekistan (NEGU), sponsored by ESRF, provided a comprehensive analysis of NEGU’s financial performance and of key risks to the company’s financial sustainability. The study contributed to the government of Uzbekistan’s decision to initiate action to improve NEGU’s financial sustainability. The study also promoted the design of the World Bank’s Electricity Sector Transformation and Resilient Transmission project, a $472 million operation approved in FY2021 that will improve the performance of NEGU and supply reliable energy to millions of households and businesses across the country. BOX 2.3 22 ESMAP Annual Report 2021 Photo © Eugene Kim SUDAN ELIMINATING FUEL SUBSIDIES In Sudan, the Energy Sector Recovery Technical Assistance program, a $2 million multi-donor program, was established in 2019 to support the government with energy subsidy reform, clean energy transition, and increasing access to energy. An ESMAP-funded policy paper prepared as a part of the program identified energy subsidies as a major driver of the local economic crisis and showed that savings from successful reforms can deliver positive impacts for the public and improve the fiscal sustainability of Sudan. Since October 2020, the government of Sudan carried out several reforms to eliminate subsidies for gasoline and diesel products, which effectively ended all subsidies for these products by June 2021. These favorable reforms have also contributed to Sudan’s clearing its arrears to the International Development Association (IDA), enabling its full reengagement with the World Bank Group after nearly three decades and paving the way for the country to access nearly $2 billion in IDA grants for poverty reduction and sustainable economic recovery. be tackled by client countries, ESRF has seen strong and In FY2021, ESRF provided $2.5 million in country grants growing demand from World Bank teams supporting toward reforming energy subsidies, bringing the total client countries in their efforts for energy subsidy reform. to 35 active grants under implementation. In addition Between FY14, when the first grants were made, and to informing policy on the ground, ESRF-funded grants FY2021, the facility allocated $24.6 million for technical informed the design of several World Bank projects assistance that aided client governments in the design and approved in FY2021, totaling $4.2 billion. delivery of energy subsidy reform in 65 countries. 23 The outcomes achieved under the country grants were which was launched in December 2020. As part of this complemented by the facility’s own knowledge work. In effort, the new program on Supporting Coal Regions December 2020, ESRF hosted its first virtual knowledge in Transition also assists client countries that have Foundations of Energy Transition forum for World Bank staff. The forum included a made the decision to transition from coal in developing comprehensive debate on the challenges of energy roadmaps for transition. Technical assistance to support subsidy reforms during and after the pandemic, as well a just energy transition has commenced in Bosnia and as knowledge exchange among diverse stakeholders, Herzegovina and Ukraine. In the two countries, ESMAP is including subject experts and government representatives. supporting the development of roadmaps for transition using the 3*3 Assessment Framework, developed by the World Bank team. SUPPORTING COAL REGIONS IN TRANSITION The program also designed twinning activities between Polish and Ukrainian coal regions, and the first study Coal is the world’s most dominant energy source, tour took place in early March 2021 in virtual mode due generating 34 percent of global electricity in 2020. to COVID-19-related restrictions. Formal trainings are Although the pandemic drove a drop in coal demand of delivered via the Coal Regions in Transition Learning 220 million tons of coal equivalent (Mtce), or 4 percent, in Academy, which is led by the College of Europe in Natolin, many countries, coal consumption is on the rise and coal Warsaw, and the World Bank, with support from the remains the cheapest and most profitable energy source. European Commission. An online virtual delivery of a first set of learning modules was finalized in September 2021. The World Bank Group stopped the direct financing of new utility-scale coal-fired power projects in 2010. The World South Africa is the largest producer of coal in Africa and Bank supports national, regional, and local authorities in one of the largest coal producers in the world. Its state developing clear roadmaps for the transition, focusing power utility produces 95 percent of the nation’s electricity, on governance structures, the welfare of people and the bulk of this coming from coal-fired capacity. Five communities, and the remediation and repurposing of million dollars in Technical Assistance was mobilized by former mining lands and coal-fired power plants. ESMAP for the coal retirement and repurposing agenda from the UK Department for Business, Energy & Industrial Following the World Bank’s seminal report Managing Coal Strategy’s (BEIS) International Climate Finance. Preparatory Mine Closure: Achieving a Just Transition for All in 2018, with work started in March 2021 to support the retirement lessons from 11 former World Bank investment projects and repurposing of four coal-fired power stations, totaling on coal sector transition alongside new evidence from about a 6 gigawatt (GW) capacity. four coal transitioning countries (China, the Netherlands, the UK, and the US), the World Bank is now finalizing The report Coal Plant Repurposing for Ageing Coal Fleets in a comprehensive set of global coal mine closure good Developing Countries was prepared, and published later, practice technical standards. These standards will in August 2021. The report presents a detailed cost- enable the transition from “physical closure” to a more benefit framework for examining the value proposition “sustainable closure” in the context of achieving a “just of repurposing for three applications—solar energy transition for all.” generation, battery energy storage, and synchronous condenser (that produces fast reactive power essential A key priority is to support countries and communities for maintaining system security)—and applies it to a most affected by the phasing out of coal as they transition representative 1,000 megawatt (MW) coal plant in India, to cleaner energy sources. ESMAP supports coal mine finding a strong economic rationale for repurposing as part closure and coal plant repurposing, particularly through of India’s just energy transition. partnerships like the Platform Initiative in Support of Coal Regions in Transition for Western Balkans and Ukraine, GENDER 24 ESMAP Annual Report 2021 FOCUS IN ESMAP ESMAP has built considerable momentum for closing gender gaps through its global Gender and Energy program and its six regional gender programs. These have helped strengthen women’s roles as consumers, employees, and entrepreneurs in the energy sector. Aligned with the World Bank Group Gender Strategy and lessons learned during its implementation, ESMAP works with countries to design interventions and generate crucial knowledge of actions needed to close gender gaps in the sector and improve development outcomes. ESMAP gender activities address gender inequalities in the following areas: • Improving female workforce participation in the energy sector • Improving women’s productivity and livelihoods • Improving women’s access to modern energy services that meet needs SIX REGIONAL GENDER AND ENERGY PROGRAMS Each World Bank region hosts a gender program: 1. Africa Gender and Energy program 2. East Asia and Pacific Gender and Energy facility 3. Energy, Gender and Social Inclusion in the Europe and Central Asia region 4. Latin America and Caribbean Energy and Gender program 5. Middle East and North Africa Energy and Gender program 6. South Asia Gender and Energy Facility team Throughout FY2021, the Gender and Energy program continued to work closely with ESMAP’s other programs to generate and disseminate knowledge on gender and energy and with the regional Energy and Gender teams to address gender gaps in World Bank energy projects. The support provided by regional Energy Gender Experts made a difference: in FY2021, 91 percent of all Energy and Extractives Practice operations were gender-tagged, a substantial increase from 79 percent in FY20. The Gender Tag identifies operations that seek to close gender gaps in human endowments, more and better jobs, ownership and control of assets, and women’s voice and agency. 25 Foundations of Energy Transition GETTING TO GENDER ENERGY STORAGE EQUALITY IN WOMEN’S MENTORSHIP HYDROPOWER PROGRAM In collaboration with the Gender team, The Energy Storage Program (ESP) fosters ESMAP’s Hydropower Development Facility gender equality in the energy storage sector is developing a gender and hydropower global through its Women in Energy Storage (WES) baseline and a report on women’s employment Mentoring Program in collaboration with in hydropower—including a survey launched the Global Women’s Network for the Energy in the beginning of FY2022. This report will Transition (GWNET). The mentoring program provide tools and evidence for practitioners focuses on career development and improving to close employment gender gaps in the technical knowledge on thermal energy storage hydropower sector. and battery storage for the grids, batteries for renewable energy hybrids, and mini-grids. In 2020, the program received over 240 applications from more than 50 countries. The WEST AFRICA: CAPACITY first cohort of the WES Mentoring Program included 25 mid-career women from 17 BUILDING FOR WOMEN countries, working in energy utilities, public sector, private sector, consulting, and academia. ENTREPRENEURS IN Following the success of the first edition, the ESP THE OFF-GRID SOLAR and GWNET plan on opening applications for the second cohort of mentees, thus continuing SECTOR to work together towards closing gender gaps in the energy sector. In West Africa, ESMAP’s Off-Grid Solar Scale-Up initiative is financing activities to close gender gaps in accessing economic opportunity in the off-grid solar sector. These activities are part of the Regional Off-Grid Electricity Access project and they include (1) engaging with women entrepreneurs and providing them training and capacity building support; (2) improving women entrepreneurs’ access to credit; and (3) increasing women’s awareness of employment opportunities in the standalone solar systems market. 26 ETHIOPIA: ADDRESSING MALDIVES: INCREASING GENDER GAPS IN THE FEMALE LABOR FORCE MINI GRIDS AND OFF- IN RENEWABLE ENERGY ESMAP Annual Report 2021 GRID VALUE CHAIN ESMAP’s SRMI supported a Gender Action Plan in the Maldives Accelerating Renewable Energy Gender has been mainstreamed into the Integration and Sustainable Energy project, ESMAP-funded activities supporting the design focusing on increasing women’s participation of the Access to Distributed Electricity and Lighting in the Maldives utility. The team is also working project in Ethiopia. This includes the production with WePOWER, a regional practitioners’ network of analytical evidence on gender equality and to improve female labor force participation, design of possible actions to address gender concentrating on the South Asia Power sector, gaps. As a result, specific actions have been and to leverage WePOWER’s expertise on gender included in the project design to increase the aspects for the project in Maldives. number of women in the mini grids and off- grid technology value chain and narrow the gender gap in productive uses of energy and entrepreneurship, and technical assistance to help commercial banks think through alternative AZERBAIJAN AND THE PHILIPPINES: credit risk assessment approaches to support female-led and female-owned companies and adopting diverse business practices. MAXIMIZING WOMEN’S EMPLOYMENT IN OFFSHORE WIND MALAWI: HOW COOLING CAN HELP WOMEN In Azerbaijan and the Philippines, ESMAP’s Offshore Wind program has commissioned FARMERS roadmap studies that explore the actions needed to create a viable offshore wind market As part of the Malawi—Financial Inclusion and in these countries, and the market’s benefits (for Entrepreneurship Scaling project, the ESMAP example, economic value added, jobs created, Cooling team is financing an analysis on how cost of energy reduced, carbon emissions to improve farmers’ productivity by investing avoided). The roadmaps also detail steps to in cold storage. That assessment includes maximize women’s skills development and sex-disaggregated data and information and employment and to address gender challenges. their analysis, and looks at how cooling can help women farmers in particular. MIDDLE EAST AND PAKISTAN: INCREASING 27 NORTH AFRICA: THE THE FEMALE LABOR GENDER BENEFITS OF FORCE IN RENEWABLE Foundations of Energy Transition ELECTRIC MOBILITY ENERGY Countries in the MNA region are at different With the Khyber Pakhtunkhwa Hydropower and stages of deploying electric mobility. ESMAP’s Renewable Energy Development project, the World Zero Carbon Public Sector team is providing Bank, including ESMAP’s Energy Storage team, technical assistance to unlock the development is helping Pakistan shift its national energy potential of electric mobility. This activity aims mix to domestic clean resources by investing to identify the most effective interventions that in renewable energy generation, including will pave the way for country-specific loans to hydropower and solar. As part of this project, the finance bus corridor electrification. The activity Pakhtunkhwa Energy Development Organization also includes an assessment of the potential (PEDO) has committed to a target of 15 percent gender benefits of electric mobility, examining, total female staff by FY2023. PEDO will also for example, gender differences in thermal become a partner of WePOWER and develop a comfort in the design and procurement of list of gender commitments under the five pillars electric buses, and opportunities for women in of WePOWER. the transformation of the workforce, sparked by technological change and the disruption of value chains. BANGLADESH: EMPLOYMENT RWANDA: DATA TO OPPORTUNITIES FOR QUANTIFY GENDER WOMEN IN THE CLEAN GAPS COOKING VALUE CHAIN Data from ESMAP’s Multi-Tier Framework In Bangladesh, the ESMAP Clean Cooking (MTF) helped prepare the Access and Quality Fund is supporting the implementation of the Improvement in Rwanda project. This included Bangladesh Clean Cooking program, which plans quantifying gender gaps in access to energy, as to mobilize $82 million in investments to sell well as gaps in time management, willingness to 4 million improved cookstoves and help 17.6 pay for energy, and agency in the household— million beneficiaries. As part of this project, that is, the decision making process for the with funding from the Green Climate Fund, purchase of electric appliances. ESMAP is also supporting the development and implementation of the Gender Action Plan to integrate women into the clean cooking value chain (for example, cookstove production, marketing, and distribution). SECTION II O U R I M PAC T I N F Y2 0 2 1 ACCELERATING DECARBONIZATION COP26 stressed the urgency of broadening ambition and strengthening action for climate change. Decisive decarbonization steps are critical when expanding world population, rising average income, and accelerating urbanization are pushing greenhouse gas emissions upward—while millions remain without access to electricity. Photo © istockphoto / zhongguo Meeting simultaneously sustainable development goals EFFICIENT AND CLEAN COOLING 29 and international climate change objectives requires an integrated approach to decarbonization to avoid locking By 2030, over half of the world’s population will live in hot Accelerating Decarbonization in inefficient, high-emitting, and expensive development climates with increasing exposure to potentially dangerous trajectories. heat conditions. As extreme heatwaves become more frequent, widespread installation of air conditioning will The Accelerating Decarbonization pillar is a main increase energy demand and exacerbate climate impacts. component of ESMAP’s support to both development Efficient, clean cooling is essential for climate resilience and decarbonization. Recognizing that supply side of populations, workplace productivity, food security, and interventions to scale up renewable energy generation healthcare delivery. is essential but not sufficient to reach net-zero goals by mid-century, and that a large share of emissions (about There is a window of opportunity to meet the growing 75 percent) come outside the power sector, ESMAP’s need and demand for cooling—from cold chains and Accelerating Decarbonization complements other ESMAP refrigeration to ensure the safety of foods, medicine, and pillars and builds on the foundation and experience vaccines to space cooling to ensure comfortable, healthy, developed in ESMAP’s previous business plan (FY2017–20). and productive homes, institutions, and workplaces—while Further, the pillar seeks to support integrated approaches avoiding the threat of runaway energy demand and GHG with strategies and actions that accelerate: (1) the shift to emissions and simultaneously help meet multiple SDGs. electrification; (2) increased access to different forms of clean energy; (3) systematic integration of energy efficiency ESMAP’s Efficient and Clean Cooling program helps improvements across multiple end-uses; and (4) the accelerate the uptake of sustainable and reliable cooling generation of benefits for communities and the economy, solutions across sectors such as health, agriculture, fisheries, including addressing gender inequality. buildings, and transportation. The program seeks to help countries develop the necessary market infrastructure, While barriers to countries’ decarbonization (for example, financing mechanisms, and policies and regulations to first cost bias, high development and transaction cost, lack deploy sustainable and reliable, as well as affordable, of awareness and information, split incentives, behavioral cooling at scale, focusing on space cooling (energy-efficient inertia, and the like) may be common, there is no single buildings and air conditioning), refrigeration and cold path for all. Accelerating Decarbonization supports chain, cooling needs in transport, and the mitigation of countries in critical areas, with three sectoral-focused yet urban heat island effects. It takes advantage of windows of complementary programs to cater to each country’s needs. opportunities and synergies offered in relevant World Bank The programs include: (1) the Zero Carbon Public Sector country operations (both IBRD and IDA), where sustainable program; (2) the Efficient, Clean Cooling program; and (3) cooling can be integrated in support of relevant sectoral 1.1 the Industrial Decarbonization program, along with two priorities. technology-focused programs: (1) the Geothermal Direct Use program; and (2) the Green Hydrogen program. The program provides technical assistance—through grants and technical in-kind support—for the inclusion of efficient, billion There are globally more than 1.1 billion people lacking proper access to cooling – from cold chains and refrigeration to ensure the safety of foods, medicine, and vaccines, to space cooling to ensure comfortable, healthy, and productive homes, institutions, and workplaces. At 1.5°C of warming, experts warn that 2.3 billion people could be both exposed and vulnerable to heatwave events – a threshold that could be reached as early as 2030. BOX 2.4 30 ESMAP Annual Report 2021 Photo © istockphoto / Jörg Henninger BANGLADESH LIVESTOCK AND DAIRY COLD CHAIN Meat and dairy that spoil or arrive at market in a condition consumers reject are a missed opportunity for Bangladesh to reduce its food insecurity and increase the profits of its small farmers. Multiple barriers to cold chain development persist in Bangladesh, including limited access to energy in rural areas; poor and congested transport infrastructure; and lack of incentive for private sector investment. ESMAP’s Clean Cooling program contributed a $350,000 grant to the World Bank’s lending operation Clean and Energy Efficient Cooling for Livestock Supply Chains in Bangladesh to undertake technical and analytical work related to cold chain technology and logistics. The expected outputs are a comprehensive diagnostic of the needs for refrigeration in the livestock value chain and the identification of climate-friendly solutions and business models. BOX 2.5 A F G H A N I S TA N 31 SOLARIZATION OF THE VACCINE Accelerating Decarbonization COLD CHAIN In Afghanistan, the solarization of vaccine cold chain facilities was made possible by additional financing of $113 million, including $3 million from ESMAP. The intervention was a key factor in deploying COVID-19 vaccines donated through COVAX, the COVID-19 Vaccines Global Access initiative, for an estimated 16 percent coverage of the entire population and the purchase of additional vaccines for a further 13 percent coverage. For more information on ESMAP’s COVID-19 Response (see p. 8). clean cooling in World Bank Group policy dialogues, place in low- and middle-income countries, this is a key including in the context of countries’ climate change challenge and an opportunity to shape a low-carbon Nationally Determined Contributions. In collaboration with future, a challenge for which ESMAP is uniquely positioned. partner organizations like the Clean Cooling Collaborative, the Cool Coalition, the Basel Agency for Sustainable Energy The aim of the initiative on Industrial Decarbonization, (BASE) and SE4All, the program works to raise awareness on which is fully funded with £17.23m from the UK’s the urgency of the cooling issue and to develop knowledge Department for Business, Energy & Industrial Strategy, on clean cooling solutions. is precisely that of supporting World Bank Group teams and client countries on interventions targeted at Since the onset of the COVID-19 pandemic, a particular decarbonizing the industrial sector. The initiative pursues focus of the program has been to contribute to the Bank’s a strategy of reduction of the demand for carbon-intensive COVID-19 response efforts and the rollout of vaccines by products and deployment of innovative decarbonization supporting the deployment of reliable and climate-friendly technologies. vaccine cold chains and strengthening of client countries’ health systems and enhancing their sustainability. The In FY2021, 10 grants were approved, with a total of $7.66 program also seeks to mobilize additional financing for million to financial and technical support to World Bank technical assistance and investments to support the Group task teams across global practices and IFC. In India, scale-up of affordable, sustainable, and reliable cooling for example, the ESMAP grant supports the government of solutions. Throughout FY2021, ESMAP helped mobilize over India in developing a holistic understanding of hydrogen- $150 million from the Green Climate Fund (GCF) to support linked low-carbon pathways and in contributing toward a multi-country Cooling Facility, which was approved by informed decision making on sustainable deployment the GCF in October 2021. of solutions based on hydrogen produced through green hydrogen. In Vietnam, the ESMAP grant promotes innovative technologies and circular manufacturing INDUSTRIAL DECARBONIZATION processes at industrial parks and their tenants to upscale energy efficiency and create eco-industrial parks. Three industries—iron and steel, non-metallic minerals (cement, glass, lime), and chemical industries—are In Turkey, ESMAP supports the Ministry of Industry and responsible for 70 percent of all direct industrial CO2 Technology of Turkey in transforming conventional emissions today. With the rapid industrialization taking organized industrial zones into efficient, competitive, 32 ESMAP Annual Report 2021 Photo © ThinkGeoEnergy and sustainable green zones by promoting innovative “Direct use” refers to the use of heat energy from technologies and introducing the concepts of industrial geothermal resources without an intervening medium, as symbiosis, and green organized industrial zones. opposed to its conversion to electrical energy. Even though geothermal energy has been used directly for centuries, In Morocco, the ESMAP grant supported the government currently it is mainly used in space heating and balneology in planning for decarbonization of the industrial sector applications in China, North America, and Northern and the introduction of green hydrogen. Two assessments Europe. At the end of 2019, it was estimated that installed were produced, providing a snapshot of the value chain thermal power capacity for direct use was a modest for hydrogen and hydrogen products in Morocco and 107 gigawatts thermal (GWt). GDU projects can support preliminary estimates of the local production costs of economic activity, create jobs, promote gender equality, green hydrogen and hydrogen-based synthetic fuels, and displace greenhouse gas-intensive fuels currently used including green metallic iron or crude steel. for heating, contributing to global decarbonization efforts. ESMAP’s Geothermal Direct Use program was created GEOTHERMAL DIRECT USE as part of the new FY2021–24 business plan to raise awareness of the value of direct use geothermal in creating Geothermal aquifers are widespread and suitable for a and decarbonizing economic activity and to build the range of geothermal direct use (GDU) applications. Direct enabling environment necessary to scale up its use. use can increase the efficiency and commercial viability of existing geothermal operations. It has applications in In FY2021, the program initiated technical assistance agriculture, for example, food drying; in commerce, such as activities in Kazakhstan and Turkey to assess the potential cement drying; and industry, for example, space heating. of geothermal direct use. BOX 2.6 K A Z A K H S TA N 33 GEOTHERMAL RESOURCES Accelerating Decarbonization Kazakhstan holds significant geothermal resources. With the support of Iceland, ESMAP in FY2021 contributed to two studies that explored the potential of geothermal direct use in district heating in Kazakhstan. The first study, Legal, Regulatory, and Institutional Review of Kazakhstan’s Geothermal Sector, found that the market environment for geothermal heat is not encouraging for private investment in GDU or public demand for GDU heating services, due to the prevalence of fuel subsidies. This study also found that the geothermal permitting and licensing process is rather unclear, as it is in the hands of many institutions. The second study is a prefeasibility analysis for two locations, Almaty and Turkistan. This report will be published in FY2022. GREEN HYDROGEN SUPPORT During FY2021, ESMAP supported Costa Rica’s the First Fiscal and Decarbonization Management Development Policy PROGRAM Financing project with ESMAP funds, which helped in the design, public consultation process, and presentation In the future, green hydrogen—hydrogen produced with of the National Strategy for Smart Grids and Green renewable energy resources—could provide developing Hydrogen. Further, in India, ESMAP carried out an countries with a zero-carbon energy carrier to support assessment that will contribute toward strengthening national sustainable energy objectives. Moreover, green the country’s National Hydrogen Energy Roadmap. The hydrogen solutions could decarbonize hard-to-abate roadmap is aimed at promoting green hydrogen and sectors such as heavy industry, buildings, and transport. identifying early entry points through demonstrations, pilot projects, and capacity-building opportunities to facilitate In FY2021, the Green Hydrogen Support program was a green hydrogen transition. In addition to country-level created as a standalone initiative in the new FY2021–24 work, the group is co-funding a global green hydrogen business plan. Its aim is to raise awareness about the report with IFC’s upstream department, to create an opportunities and challenges of green hydrogen and to opportunity analysis framework and identify private sector build the enabling environment necessary to sustainably opportunities. scale up green hydrogen in developing countries, and contributions and collaborations with IFC. ZERO CARBON PUBLIC SECTOR In August 2020, the program produced a report on Green Hydrogen in Developing Countries, which illustrates current The public sector is a large energy consumer, and in some and potential areas of deployment for green hydrogen countries, it accounts for 10–20 percent of total energy production and fuel cell technologies in developing consumption. Major consumers are public buildings, public countries. The report is targeted at organizations that work utilities, and transport. In addition, public procurement is with investors and governments on developing national commonly 10–20 percent of a country’s gross domestic roadmaps in order to highlight areas of national focus and product (GDP). In public buildings alone, energy savings of to assess the applications in which green hydrogen can 20–50 percent can often be achieved through cost-effective deliver gains. retrofits in existing buildings, and new public buildings can be constructed to meet higher efficiency standards. 34 Overall, the public sector can take a leading role in the areas of intervention are within public buildings, such as low-carbon transition by applying green procurement administrative and office buildings, schools, hospitals/ policies in its own procurement to create demand for low- clinics, and social housing schemes; public utilities, such ESMAP Annual Report 2021 carbon technology supplies. Through policy and regulation, as water utilities, district heating and cooling utilities, governments also have a major impact on decarbonization and waste management and street lighting services; and in the industrial, commercial, and residential sectors. transport, such as public transport and publicly owned vehicle fleets (public buses, public fleet such as police Given the importance of the public sector in the transition vehicles, garbage trucks, and so on). toward net zero emissions, ESMAP started a new initiative on Zero Carbon Public Sector, which aims to accelerate In FY2021, ESMAP’s Zero Carbon Public Sector initiative the uptake of energy-efficient and low-carbon solutions supported 22 country and regional activities in all six by public sector entities in developing countries. The main regions of the World Bank. B O X 2 .7 Photo © Shutterstock TURKEY ENERGY EFFICIENCY IN PUBLIC BUILDINGS In Turkey, with more than 175,000 public buildings across the country, the energy efficiency potential in the public sector is vast. The Zero Carbon Public Sector initiative supported the design and implementation of a $200 million project in Turkey called the Energy Efficiency in Public Buildings Project, jointly supported by the Bank and the Clean Technology Fund. The project not only invests in energy efficiency retrofits of public buildings, but also develops and implements performance-based contracts (Energy Services Company, or ESCO, contracts), under which a minimum percentage of energy savings for a building is specified in the tender documents and the bidders offer their most cost-effective approaches to meeting or exceeding the level of savings. In addition, the project pilots retrofitting of buildings to Nearly Zero Carbon Buildings (NZEB) standards. BOX 2.8 35 Accelerating Decarbonization Photo © Shutterstock MEXICO MANUALS FOR ENERGY-EFFICIENT DESIGN In Mexico, the Zero Carbon Public Sector initiative supported the development of manuals for energy- efficient design for various housing solutions (for example, energy-efficient lighting, efficient faucets and toilets, energy-efficient heating, roof insulation, and passive design), which were integrated into the government’s existing Sustainable Housing Subsidy program. The improved design measures can yield household savings of $90–$323 per year, and if applied to only 40 percent of households eligible for housing support, would contribute to the mitigation of up to 850,000 tons of CO2 per year. SECTION II O U R I M PAC T I N F Y2 0 2 1 CLEAN COOKING With 2.6 billion people globally still relying on pollutant traditional fuels and technologies to cook their meals, cooking poverty remains one of the most urgent development challenges of our time. Photo © Clean Cooking Alliance 37 If trends continue without policy changes, 2.3 billion in on-the-ground country and regional projects and people will remain without access to clean cooking technical assistance aid; and (3) partnerships, both by 2030, jeopardizing the achievement of SDG 7 and internal and external, to increase cross-sector synergies Clean Cooking progress across several related SDGs. Market-based and and uphold the prioritization of policies and actions at investment-driven transformative solutions are required all levels. Results-based financing (RBF) is used to pay for for a paradigm shift. Breakthroughs are especially needed the verified results of interventions to incentivize supply- in three key, interlinked areas: (1) political commitment; (2) chain players, spur market development, and pay for the investment; and (3) knowledge and innovation. public co-benefits (health, gender equality, and climate) of interventions. Progress on access to clean cooking has been stymied because: (1) it cuts across multiple sectors, including energy and health, but is not prioritized in any of the CLEAN COOKING FUND sectors; (2) the most affected groups, women and young children in poor households, have the least voice; and (3) FY2021 was the first year of operation for the CCF. The households do not prioritize the public benefits of clean fund focused its activities on building awareness of cooking (for example, climate, health, and gender equality) the issue of clean cooking; launching its first operation in their decision making, which makes the sector less co-financed with IDA in Rwanda; and mobilizing political attractive to private investors. commitment in collaboration with partners. To help client countries tackle this multi-sector challenge, The CCF was prolific in its production of knowledge. In the World Bank’s ESMAP launched the Clean Cooking September 2020, the CCF launched the global flagship The Fund (CCF) at the 2019 UN Climate Action Summit. The State of Access to Modern Energy Cooking Services Report at CCF has a funding target of $500 million, making it the the UN Climate Summit (see Box 2.9). Building on the main largest fund dedicated to galvanizing political commitment, findings of the report, ESMAP developed and launched scaling up public and private investment, and catalyzing the first energy sector online learning course on clean innovation in clean cooking. cooking, “The Hidden Side of Energy Access: Understanding Clean Cooking.” Other knowledge products included: eight The CCF is structured to support the strengthening of additional publications, two databases, 14 webinars, six the clean cooking ecosystem through: (1) knowledge to blogs, a video, infographics, a results brief, and an impact advance sector understanding; (2) ramped-up investment story. $ 2.4 trillion 2.6 billion people globally still rely on polluting fuels and technologies to cook their meals. The cost to human health, women’s productivity, and the environment and climate is conservatively estimated at $2.4 trillion per year. BOX 2.9 38 ESMAP Annual Report 2021 Photo © SNV THE STATE OF ACCESS TO MODERN ENERGY COOKING SERVICES In September 2020 at the UN Climate Summit, ESMAP’s Clean Cooking Fund (CCF) launched the flagship report The State of Access of Modern Energy Cooking Services. The report takes a deep dive into the progress, demand, supply, and enabling environment in the sector and charts a path for countries to transition their population to access better outcomes. The report contributes new perspectives and data to the sector: it provides a more comprehensive measurement using the Multi- Tier Framework for Clean Cooking to define “modern energy cooking services” and “improved cooking services” and to calculate global estimates. The report gives new estimates on the cost of inaction on SDG 7, disaggregated by health, climate, and gender impacts. It also includes new projections for the investment needs for progress. The study has led to the development of several additional tools: a consolidated country database to facilitate country-level assessments; the Players & Initiatives database, which takes stock of cooking players across the globe, as well as cooking initiatives at the national, regional, and global levels; and the e-learning course “The Hidden Side of Energy Access: Clean Cooking,” designed to promote a better understanding of the sector. The course has already reached over 1,200 participants. The CCF team is preparing six additional advanced modules on investment, climate, gender, behavior change, health, and policy, which are planned to be launched in early 2022. B O X 2 .1 0 RWANDA 39 CCF’S ENERGY ACCESS AND QUALITY Clean Cooking IMPROVEMENT PROJECT The government of Rwanda has set targets for shifting households from traditional to modern energy cooking solutions by 2024 that are also part of its climate commitments under Rwanda’s Nationally Determined Contributions. With ESMAP’s technical and grant support, the World Bank is working with the government of Rwanda to achieve its targets on access to clean cooking. The Rwanda Energy Access and Quality Improvement project, approved in July 2020, is the first CCF co-financed project, with a $10 million CCF grant and $10 million in IDA financing. It is the largest World Bank clean cooking operation in Sub-Saharan Africa. The project aims to provide 2.15 million people (500,000 households) with clean cooking solutions through an RBF facility managed by the Rwanda Development Bank and technical assistance activities to improve the enabling environment managed by the Energy Development Corporation Limited. The RBF facility has a pro-poor design with RBF subsidy levels linked to household socioeconomic categories and clean cooking performance tiers. The CCF team is working in coordination with other groups in the World Bank, including on behavioral science, climate change, and social protection, as well as with development partners such as GIZ’s Energising Development (EnDev) program and the European Commission. Under its investment pillar, the CCF’s current portfolio World Bank co-convened the Health and Energy Platform includes an active project in Rwanda and seven pipeline of Action (HEPA). As part of HEPA, ESMAP supported the projects in Burundi, Ghana, Horn of Africa region, launch of the High-Level Coalition on Health and Energy Mozambique, Myanmar, Niger, and Uganda. These in May 2021 to create political momentum in the clean projects, once approved and implemented over the next cooking sector. The meeting, which kicked off high-level 5-6 years, are expected to leverage $67.5 million in IDA cooperation to identify concrete steps to promote clean co-financing, and $113 million in private sector financing. cooking and electrification of healthcare facilities, endorsed The projects will help 12 million people gain access to a Strategic Roadmap on Health and Energy. ESMAP clean cooking, contributing to a healthier, greener, and co-led the Technical Working Group on Energy Access of more equitable post-COVID-19 recovery. Preliminary UN High-Level Dialogue on Energy (HLDE) 2021, which projections show that ESMAP support in expanding access prioritized policy and action to accelerate access to clean to clean cooking will lead to $1.5 billion in health benefits, cooking. The HLDE Thematic Report on Energy Access, co-led $193 million in climate benefits, and $523 million in gender by the World Bank and launched in June 2021, includes equality benefits. key recommendations to prioritize and coordinate political commitments and financing to accelerate access to clean ESMAP has also worked with development partners to cooking. The support is helping to build synergies with elevate the clean cooking agenda and mobilize political electrification efforts as well as a primary milestone to commitment. Together with WHO, UNDESA, and UNDP, the provide such access for one billion people by 2025. SECTION II O U R I M PAC T I N F Y2 0 2 1 ELECTRICITY ACCESS Universal access to affordable, reliable, and modern energy services by 2030 is a prerequisite for improving the living and working conditions of the currently energy deprived populations. However, 759 million people still lack any access to modern electricity. Photo Courtesy of Ignite Rwanda / ©IRENA 41 There has been tremendous progress over the past few energy access gains achieved in the past; (2) using multiple years, yet it is projected that some 660 million people will workstreams of the program and working across sectors remain unelectrified in 2030. The pace at which access to set up ambitious, strategic interventions, which can Electricity Access is delivered will have to more than triple between now significantly impact electrification progress; (3) increasing and 2030 to counter this. The challenge is particularly focus on pro-poor approaches and the Leave No One daunting due to the ongoing COVID-19 crisis, and given Behind agenda; and (4) growing the concentration on low- that 84 percent of the unconnected population live in rural income countries with development challenges, including areas—which are much more difficult to reach with reliable countries affected by fragility, conflict, and violence (FCV). and affordable electricity—and 50 percent live in fragile and conflict-affected settings. INTEGRATED ELECTRIFICATION In order to achieve universal access that also delivers STRATEGIES AND PLANNING the desired socioeconomic impact, a paradigm shift is needed: the “last mile” to be connected must become the The Integrated Electrification Strategies and Planning “first mile” to be tackled. This will require: doubling down program aims to increase adoption and improve on inclusiveness of energy access; reinforcing enabling implementation of national electrification strategies policy and regulatory frameworks; leveraging innovations and least-cost electrification plans that use geospatial to provide energy services that are reliable yet affordable electrification modeling to integrate grid, mini-grid, and and that respond to the needs of all, including vulnerable off-grid technologies.  households; and catalyzing pro-poor energy access financing, including end-user subsidies. It will also require  The activity provides technical assistance and operational measures leading to the development of productive uses support to World Bank projects in all phases, from pipeline and electrification of healthcare, education, and other to implementation to impact assessment. The overall public institutions, which will improve livelihoods and goal of the program is to have at least 50 client countries boost human capital formation. officially adopt integrated electrification strategies/ least-cost plans, complete with universal access targets, Through its six workstreams—(1) Integrated Electrification implementation schedules, modalities, and financing Strategies and Planning; (2) Global Facility on Mini Grids; plans. The initiative also provides support for geospatial (3) Off-Grid Solar (Lighting Global); (4) Leave No One electrification planning and preparation of geospatial- Behind; (5) Improving Livelihoods and Human Capital; based mini-grid investment portfolios. In addition, the and (6) Financial Innovation for Electricity Access—the program has developed and is now expanding the Global ESMAP Electricity Access program places a distinct Electrification Platform (see Box 2.11) which is an emphasis on scaling access at this new frontier. For open-source, open-data platform offering the high-level 759 FY2021, four main themes drove the program’s work: (1) overview of least-cost solutions—grid, mini-grid, and responding decisively to the COVID-19 crisis, with a focus off-grid—based on location and demand of beneficiaries on electrifying health facilities and the preservation of (https://electrifynow.energydata.info/).  million According to the Tracking SDG 7: Energy Progress Report, 759 million people still lacked access to electricity in 2019. Under current and planned policies and further affected by the COVID-19 crisis, an estimated 660 million people will still lack access in 2030, most of them in Sub-Saharan Africa. B O X 2 .1 1 GLOBAL ELECTRIFICATION PLATFORM 42 ESMAP Annual Report 2021 Launched in 2019, the Global Electrification Platform (GEP) is an online, open-access, interactive platform that allows for the overview of electrification investment scenarios for a selection of countries. The scenarios present pathways for achieving universal electricity access, split into an intermediate strategy for 2025 and full electrification by 2030. Users can explore 216 different scenarios to meet the access goals. Users can add layers as well to help illustrate useful contextual information about a selected country, for example, wind potential, electricity networks, and location of health facilities. In FY2021, as part of the World Bank’s COVID-19 response, volumes presenting additional analysis, databases, and the Integrated Electrification Strategies and Planning infographics. This package informed and supported program contributed geospatial analyses, which identified the implementation of the World Bank’s growing the least-cost and fastest ways to electrify health investments in mini grids. centers, differentiate facilities in areas with mini-grid • In response to a growing interest in the topic from potential as opposed to those that should be served with many task teams and clients, the facility launched a standalone solutions, and address electrification planning report that examines the scope for interconnected mini requirements to deal with the next public health crisis. grids in areas already served by existing distribution companies to produce win-win-win outcomes for consumers, local distribution companies, and private GLOBAL MINI GRIDS FACILITY developers. Mini grids have the potential to electrify close to half a Along with generating frontier knowledge, the GFMG billion people by 2030. They have demonstrated that they continues to provide essential support to the expanding can provide reliable quality electricity for households number of mini-grid projects in the World Bank’s lending and productive uses. Moreover, mini-grid capital costs envelope. To date, these have reached 35 operations in have been declining and are expected to continue a 32 client countries, representing the largest mini-grid downward trend through 2030. At the same time, the portfolio of a single global financier. In FY2021, the facility quality of service has increased dramatically. The costs of provided direct support to 18 of these projects, covering key mini-grid components, such as solar panels, inverters, 24 countries (including large-scale regional programs in batteries, and smart meters, have decreased substantially the Sahel and the Horn of Africa). Working to address the due to innovations and economies of scale in utility-scale most complex energy access challenges across the globe, solar projects, the booming rooftop solar industry, and the the GFMG team has been providing in-depth advisory growing electric vehicle market. assistance to a number of projects in the highest access- deficit and fragile countries, such as the Democratic In FY2021, the Global Mini Grids Facility (GFMG) launched Republic of the Congo, Haiti, and Niger. two new knowledge products: Another highlight of the facility’s work during the fiscal year • Following the launch in FY19 of the flagship report is the hands-on engagement of its team in the recently Mini Grids for Half a Billion People, the ESMAP’s GFMG approved Access to Distributed Electricity and Lighting team launched a comprehensive knowledge package. in Ethiopia (ADELE) project. At $500 million, ADELE is the The package included a handbook, two companion largest access project in Sub-Saharan Africa, with the 43 largest mini-grid component ($270 million) of any financier. The companies that are expected to deploy these mini In FY2021, with support from several members of the grids have raised over $41 million in private funding, GFMG team who are leading the deployment of the mini- leveraging the corresponding IDA financing at a 1.3 ratio. In Electricity Access grid component, the ADELE project reached effectiveness addition to this ongoing work, in response to the COVID-19 and is now rapidly advancing in its implementation. pandemic, the Nigerian Rural Electrification Agency, with support from the GFMG team, rapidly mobilized to Another milestone reached is the implementation of the provide the Nigerian healthcare sector with much-needed $350 million Nigeria Electrification Project (NEP), which electricity supply and redirected $75 million out of the the GFMG team continues to support extensively. As of NEP financing to an urgent health facility electrification the preparation of this report, 375 mini grids were under program. As a result, at present, construction of reliable active preparation under the project’s Performance-Based solar power systems is in the final stages at 88 rural clinics Grant financing window, anticipated to provide over across the country. 1 million people with reliable and affordable electricity. B O X 2 .1 2 Photo © IRENA MINI GRIDS FOR HALF A BILLION PEOPLE The report Mini Grids for Half a Billion People has become a point of reference for the energy policy community and a second edition is being prepared. The comprehensive study launched in 2019 provided policymakers, investors, and developers with insights on how mini grids can be scaled up. It was also one of ESMAP’s most downloaded reports (over 28,000 downloads), and its findings have been used to inform the design of the mini-grid component in a significant number of World Bank projects, including Burkina Faso, Burundi, Chad, the Democratic Republic of Congo, Ethiopia, the G5 Sahel, Mali, Mauritania, and Niger. 44 OFF-GRID SOLAR institutions through off-grid solar solutions, in collaboration with ESMAP’s Improved Livelihoods and The Off-Grid Solar Scale-Up program—also known as Human Capital program. ESMAP Annual Report 2021 Lighting Global—aims to increase access to clean, reliable, and sustainable electricity provided by modern off-grid In June 2021, the biyearly Global Off-Grid Sales Data report, solar solutions. Lighting Global uses market-driven published by GOGLA, the global association for the off-grid approaches to scale-up off-grid solar across the African solar energy industry, with support from Lighting Global, continent and beyond, leveraging World Bank lending found that while the off-grid solar industry had shown and the private sector. The program supports the use of tremendous resilience throughout the pandemic, the technologies ranging from portable solar lanterns and path to recovery was uneven. Due to consumers’ reduced solar home systems, to solar powered productive use spending and capacity and severe disruptions in global applications, and larger off-grid solar systems for schools supply chains, the industry was not yet back on a solid or health centers. growth trajectory. In FY2021, the program focused on: In FY2021, Lighting Global joined forces with GOGLA and ACE TAF, a program funded by the UK Government • offsetting the economic risk to the nascent off-grid Foreign, Commonwealth and Development Office (FCDO), solar industry and off-grid solar consumers occasioned to create the End User Subsidy Lab. The lab is a platform by the COVID-19 pandemic (see “ESMAP’s COVID-19 through which stakeholders can jointly design smart and Response,” page 8). effective end-user subsidies, pooling knowledge, technical • developing market-compatible solutions for reaching expertise, and funding. End-user subsidies, which directly the “last mile” and low-income households in complex reduce the amount a customer must pay for their purchase business environments such as fragile states. of electricity service or products, can accelerate access for • promoting technology and business model solutions millions of low-income and vulnerable households. for the electrification of productive uses and public B O X 2 .1 3 RWANDA ENERGY ACCESS In Rwanda, while the pace of grid electrification has increased, off-grid access expansion has slowed down, mainly because low-income households cannot afford to pay for electricity services or products. The Off-Grid Solar program informed the World Bank Rwanda Energy Access and Quality Improvement project, which will provide electricity access through off-grid solar systems to 1.6 million people, including first-time access to 150,000 people in low-income brackets. The project increases affordability of solar products drastically. It provides end-user subsidies to low-income households, which are assigned based on the household poverty level. Support from the Off-Grid Solar program has helped the Rwandan government analyze the lessons from the pilot, plan its scale-up, and implement it. LEAVE NO ONE BEHIND Africa Initiative’s rapid support for regional integration, 45 the program held several consultations with the World Despite COVID-19-related movement restrictions and Bank/UNHCR Joint Data Center on developing a MTF Electricity Access pleas from the international community for a ceasefire survey about displacement, and additional fundraising that would facilitate the COVID-19 response, displacement activities to launch a nationally representative MTF survey continued to occur—and grow—during the pandemic. As a on displacement in Somalia, including a module on result, according to the United Nations High Commissioner livelihoods. for Refugees, in 2021 more than 1 percent of the world’s population, or 1 in 95 people—nearly 82.4 million—were In FY2021 in Yemen during the COVID-19 outbreak, the forcibly displaced. program contributed to efforts to restore the reliable electricity supply and provide affordable electricity access The precursor to ESMAP’s Leave No One Behind program, by assessing electricity access expansion, institutional the Energy Access for Host Communities and Refugees arrangements, and market conditions. For more initiative, was restructured during FY2017–20. Following information about ESMAP’s COVID-19 response, see the sharp increase in the number of forcibly displaced page 8. people (FDPs) and their impact on host communities’ electricity infrastructure, the initiative was reoriented to acknowledge these previously unaddressed development IMPROVING LIVELIHOODS AND challenges, and toward the provision of safe, reliable, HUMAN CAPITAL and affordable electricity for host communities and FDPs. The program aims to increase the number of World Bank Significant progress has been made toward achieving Group operations and national electrification strategies universal access to electricity. However, the socioeconomic where electricity access for displaced people, refugees, and benefits of electrification have not been fully reaped, host communities is mainstreamed. as many electrified households and businesses do not use electricity for purposes beyond lighting and phone In FY2021, the publication of the program’s Energy Solutions charging. Moreover, the degree of reliable electricity for Forcibly Displaced Persons and Their Host Communities: service to public institutions remains dire, especially in Closing the Financing Gap note provided an overview of how Sub-Saharan Africa, where half of secondary schools and a humanitarian agencies and host governments address the quarter of health facilities have no power. energy challenges and how development institutions can tackle the current displacement crisis. The Improving Livelihoods and Human Capital (ILHC) initiative aims at promoting the use of electricity to The initiative is working with ESMAP’s Multi-Tier Framework enhance income generation and productivity—also called (MTF) team (page 17) to adapt the MTF questionnaire productive use of electricity (PUE)—and the electrification to enable governments to better identify displacement of public institutions. The initiative is raising awareness on settings and address their electrification needs. Currently, the enabling role of electricity in achieving SDGs beyond governments facing influx of displaced people have SDG 7. ILHC contributes to efforts to advance cleaner, a hard time assessing the additional energy strains renewable energy for food and water security and health, these displacements occasion on host communities or education services, and efficiency of appliances and integrating the energy needs of displaced people in their equipment. electrification plans. As part of the World Bank’s Horn of B O X 2 .1 4 46 ESMAP Annual Report 2021 Photo © istockphoto / Juanmonino HAITI IMPROVING LIVELIHOODS AND HUMAN CAPITAL DURING THE PANDEMIC In FY2021, the COVID-19 pandemic called for rapid action to deploy vaccines, restore livelihoods, and strengthen public institutions and the resilience of communities. In Haiti, the ILHC initiative provided solar photovoltaic and battery storage installations for five large hospitals, solar PV-powered water pumps in five piped water systems prioritized for the COVID-19 response, and solar hybrid systems for health and/or water facilities in rural towns. The project, Haiti Renewable Energy for All, benefited from $2.9 million in additional financing from the Swedish International Development Cooperation Agency (SIDA) through ESMAP and $2 million from the Haiti COVID-19 Response Project cross-sector investment in addition to the initial Small Renewable Energy Program (SREP) funding. The intervention strengthened the government’s response to the COVID-19 health crisis by enabling healthcare facilities to power life-saving equipment such as oxygen concentrators and to improve hygienic conditions in communities by enabling water pumping. 47 In FY2021, with support from the Rockefeller Foundation, the private sector to extend solutions to portions of the the program supported the preparation of four pilots population that are considered high risk or are otherwise in Democratic Republic of Congo, Ethiopia, Kenya, and not a top priority, due to location. It is then important to Electricity Access Nigeria. In Ethiopia, the mainstreaming of the productive create the right incentives and implementation tools to use of electricity in the off-grid electrification program help deliver electricity services and address affordability included work on the identification of productive loads constraints for end-users. (horticulture, dairy, poultry, and industrial parks) suitable to serve as anchor customers for the mini grids. The Financial Innovation for Access initiative, launched in FY2021, endorses the development and testing of In Burundi, the ILHC team provided grant assistance financing instruments and implementation modes to and technical expertise to evaluate the country’s drive energy access acceleration, inclusion, and impact electrification strategy and estimate the demands of across all electricity systems and solutions. It aims to do health and education infrastructure, as well as design so in a way that provides additional financing instead of standardized solar-power service packages for up to 400 excluding or competing with private markets. While there sites. In Liberia, ILHC provided grants for the electrification is a growing number of structuring options and innovative of healthcare and vaccine storage facilities through instruments, it is not always clear how to determine the standalone solar systems. applicability of the instruments and use these in pursuit of increasing electricity access—a challenge this initiative strives to address. FINANCIAL INNOVATION FOR ENERGY ACCESS Since April 2021, the financial innovation team has carried out analysis and drawn design recommendations for Innovative financing is required in order to reach the impact-linked finance mechanisms for underdeveloped most vulnerable and disadvantaged segments of society. off-grid solar markets such as Liberia and Burundi, in Often, we observe that existing market incentives without coordination with Acumen Fund. adequately targeted interventions are insufficient for SECTION II O U R I M PAC T I N F Y2 0 2 1 RENEWABLE ENERGY Massive scale-up of renewable energy technologies is critical for tackling climate change as well as improving the affordability of power services and increasing electricity access in developing countries. Photo © South_agency / Getty Images 49 Renewable electricity is poised to play a critical role not Figure 2.2. Capacity Additions of Renewables only to decarbonize the power sector and increase access, but also to enable the clean electrification of transportation Renewable Energy and certain heating and cooling end-uses. For hard-to- 800 decarbonize sectors (for example, certain heavy industries), green hydrogen is expected to be the technology of choice, and its production will necessitate significant renewable 400 energy investment. 0 According to the World Energy Outlook 2021 of the 2020 2030 Net Zero International Energy Agency, to achieve net-zero emissions Advanced Economies and China Rest of World by 2050, renewable energy expansion in developing countries needs to accelerate: the share of renewables Source: World Energy Outlook 2021, International Energy Agency. needs to increase from almost 30 percent of electricity generation globally in 2020 to about 60 percent in 2030 in the IEA Net Zero Scenario (see Figure 2.1). In addition ENERGIZING RENEWABLES to the need for the rapid ramp-up and modernization of grids, the IEA’s outlook suggests that utility-scale battery Solar and wind technologies are revolutionizing the storage capacity worldwide needs to increase 30 times power sector. They can become a game changer for many from 2020 to 2030 in the Net Zero Scenario. developing countries: solar and wind power is abundant, among the cheaper sources of electricity, and cost- ESMAP is scaling up renewable power technologies in competitive with fossil fuel in many countries. developing countries, using a three-prong approach, to: (1) help countries improve their enabling environments But while the proportion of solar and wind generation for renewable energy (RE) in order to unlock large-scale is rising every year, it is still far from the level needed investment in mature RE technologies, such as ground- to reach the SDGs and Paris Agreement climate change mounted solar, onshore wind, and geothermal, and aid targets. To reach these objectives, large amounts of the integration of variable renewables in power systems; private funding will have to be unlocked to complement (2) broaden the range of RE technologies deployed in the limited public financing available. Yet deployment of developing countries to include new innovations such as private investment at the necessary scale in developing battery storage, rooftop and floating solar, and offshore countries is hindered by critical challenges such as grid wind; and (3) build a pipeline of sustainable hydropower integration technical constraints, off-taker risk, inadequate projects in recognition of their role in power grids for regulatory frameworks, and weak procurement and 60 system balancing, flood control, and irrigation. planning capacity. % To achieve net-zero emissions by 2050, developing countries’ share of renewable energy in electricity generation globally needs to grow from almost 30 percent in 2020 to about 60 percent in 2030. B O X 2 .1 5 50 INDONESIA TRANSITIONING FROM COAL TO ESMAP Annual Report 2021 RENEWABLE ENERGY ESMAP provided support to Indonesia in its efforts to transition from coal to solar energy. This included assistance with the development of least-cost generation plans, a variable renewable energy (VRE) integration analysis, and a reliability analysis. Through this activity, the ESMAP team aided the creation of a new electricity generation plan and was able to demonstrate that switching from the current plan of building 450 MW of new coal projects to building solar plants producing up to 1 GW instead could save the Indonesian government up to $300 million by 2030. The activity also led to a proposed $500 million investment financing by SRMI, the Canada Facility, and the CTF. The resulting project, which will fund the identified grid upgrades for VRE integration, as well as grid resilience and reliability, and a transaction advisor to support the selection of private investors, is scheduled to go to the Board in FY2022. The Sustainable Renewables Risk Mitigation Initiative client countries—Botswana, Central African Republic, (SRMI)—launched in 2018 at COP24 under the leadership Democratic Republic of the Congo, Kenya, Mali, Namibia, of the World Bank in partnership with the Agence Française and Uzbekistan—by leveraging over $3.3 billion in private de Développement, the International Renewable Energy investments. These projects are expected to provide Agency, the International Solar Alliance, and SE4all—helps access to green and reliable electricity for the poorest developing countries take a series of important steps to households to approximately 4.2 million people. SRMI will deflate critical risks perceived by the private sector while help the seven countries shift to low-emission sustainable also minimizing risks for the public sector. In addition, SRMI development pathways and increase access to affordable, helps such countries build a pipeline of bankable solar reliable, sustainable, and modern energy. and wind projects for consideration by the private sector while maximizing socioeconomic benefits. The Energizing In addition to funding from the CTF and GCF, other donors, Renewables program—SRMI’s ESMAP implementation including France, the Netherlands, Norway, and the UK, window—offers an integrated package of support for have supported SRMI, with the target to mobilize $1 billion geothermal, onshore wind, and solar solutions combined in climate finance and technical assistance funding across with financing from multilateral development banks and 20 developing countries by 2025. climate funds. In FY2021, the World Bank Board approved three ENERGY STORAGE PROGRAM investment projects—in Burkina Faso, Maldives, and Tanzania—that followed the SRMI methodology; the projects The variability of wind and solar energy increases the were co-financed by the Clean Technology Fund (CTF). complexity of the operation of power systems, requiring more flexibility and constraining their upscaling. The Energy In March 2021, the Green Climate Fund (GCF) Board Storage program aims at addressing this issue by developing approved a $280 million funding proposal for SRMI. It tailored solutions for the sustainable increase of energy aims to unlock 2.5 GWs of solar and wind projects in seven storage. The Energy Storage Partnership (ESP), supported 51 through this program, brings together 34 partners worldwide play a larger role in this burgeoning area. According to foster international cooperation to adapt and develop to the report, since stationary batteries will play a energy storage solutions for developing countries. predominant role in providing grid services to integrate Renewable Energy variable renewable resources and decarbonizing the In FY2021, the Energy Storage program developed a range transport sector, the reuse and recycling of batteries of knowledge-sharing products, training, and policy reports will be a critical component in helping developing as well as an energy-storage sizing app—a tool to provide countries to make a rapid and sustainable transition in a preliminary assessment of the energy storage sizing delivering clean energy. This report provides short-term requirements (in terms of both energy and power) and the and long-term recommendations toward building this project cost of hybrid solar PV and energy storage systems enabling environment around reuse and recycling in (https://storagesizing.energydata.info/). developing countries. The report Deploying Storage for Power Systems Warranties for Battery Energy Storage Systems in Developing in Developing Countries: Policy and Regulatory Countries, a third report published by the ESP in FY2021, Considerations, published by the ESP, introduces the describes good practices for battery energy storage different ways in which storage can meet policy objectives systems (BESS) warranty design. Warranties provide and overcome technical challenges in the power sector. mechanisms to mitigate the technical and operational The report provides guidance on how to determine the risks of battery projects by transferring the risk of defects value of storage solutions from a system perspective, and or performance issues to the manufacturer or the battery discusses relevant aspects of policy, market and regulatory vendor. The report offers indispensable insights on frameworks to facilitate storage deployment. responding to the challenges of the conditions found in some developing countries, where BESS must operate in The report Reuse and Recycling: Environmental Sustainability harsh climate conditions in remote locations with poor of Lithium-Ion Battery Energy Storage Systems provides accessibility and limited internet access and unreliable an overview of the status of the reuse and recycling of power supply, often with low availability of skilled lithium-ion batteries in order to assess whether and local workforce. to what extent developing countries can and should B O X 2 .1 6 MALDIVES SOLAR PV AND BATTERY STORAGE FEASIBILITY ESMAP support assisted the government of Maldives in assessing the techno-economic feasibility of solar PV and battery storage for selected islands. The objective was to evaluate the potential of deploying renewable energy sources and energy storage in the Maldivian context. The study, which was endorsed by the government, confirmed that solar PV and energy storage is the least-cost option for displacing the conventional diesel generation. It was critical in informing the design of the World Bank’s project on accelerating renewable integration and sustainable energy, with a total of 50 MWh battery storage capacity integrated into the project design. B O X 2 .1 7 52 MOROCCO ENERGY STORAGE TESTBED: ESMAP Annual Report 2021 ACCELERATING FRONTIER ENERGY STORAGE SYSTEMS TO MARKET The ESP is developing a global “Network of Energy Storage Testbeds” (NESTs) Initiative. Energy Storage Testbeds are proposed in India, Morocco, and South Africa to serve regional needs to address the significant and unique barriers facing developing nations in accessing the benefits of energy storage systems (ESS). A “Testbed” is a facility which enables countries to assess energy storage performance under realistic local grid conditions at low cost and at manageable scale. Morocco’s energy storage testbed is hosted and developed by the Moroccan Agency for Sustainable Energy (MASEN) at its Research and Development testing facility in the Noor Ouarzazate Complex. ESMAP supported by BEIS is preparing a $5 million grant for the Morocco testbed, which is most developed amongst the Global NESTs Initiative. ESMAP’s support will increase the testbed’s capabilities for testing an expanded range of technologies, strengthen its capacity building approaches and business model for sustained operations, and help implement a testing regime of performance and safety related codes and standards. The ESP helps bring new technological and regulatory The program supports the uptake of innovative solar solutions on energy storage to developing countries, as solutions in developing countries through three main well as helps develop new business models. In South workstreams: Africa, the ESKOM Renewables Support Project is the largest World Bank and African Development Bank battery • Support for distributed solar deployment (for example, storage operation, mostly funded by the CTF. This flagship rooftop PV) in developing countries’ specific settings project could serve as a reference for many subsequent through the exploration of “use cases” and business projects, with demonstration effect on procurement in the models that alleviate challenges, such as energy rest of Africa and other low-income countries. security, costs of power production, and quality of service. • Support for floating solar deployment in places where INNOVATIVE SOLAR land is scarce or land acquisition is a major obstacle to solar development. Building on the experience with The Innovative Solar initiative is a new program that floating solar on human-made, inland water bodies, the aims to expand the scope of solar deployment beyond new areas of research include marine-floating solar, in typical large-scale, ground-mounted solar photovoltaics particular, inclusion of floating solar to marine spatial (PV) projects, and support client countries’ awareness, plans and development of environmental and social adoption, and deployment of innovative grid-tied solar considerations for deployment of marine-floating solar. concepts and business models. B O X 2 .1 8 53 Renewable Energy Photo © Getty Images/iStockphoto SENEGAL SOLAR ROOFTOPS In Senegal, an ESMAP grant funded an assessment of the potential for solar rooftop installations on public buildings to help reduce the arrears of public entities to the local utility, SENELEC. The activity identified 25 suitable public buildings that were further assessed for their available rooftop space, solar potential, and electricity consumption. Economic analysis for these potential installations suggests that the rooftop solar installations could save SENELEC approximately €4.5 million over a 20-year period; that the installations could meet 116 percent of their electricity needs of these buildings; and that they would have a five-year payback period. The results of the analysis were presented to the government of Senegal in spring 2021. • Support for hybridization of solar power with other In FY2021, the Innovative Solar program allocated seven technologies in order to decrease its variability, technical assistance grants in aid of development of improve its dispatchability, and improve the use of grid distributed solar PV in Bangladesh, Grenada, Nigeria, infrastructure such as power lines and substations. and Peru; a global program on development of policies Examples of such work include hybridization of in agriculture that foster the uptake of distributed solar hydropower plants with solar power plants and replacing diesel generators for water pumping in irrigation hybridization of solar power generation with other systems; and development of floating solar installations on forms of energy storage. hydropower reservoirs in Sri Lanka and Tajikistan. B O X 2 .1 9 54 ESMAP Annual Report 2021 Photo © International Hydropower Association TA J I K I S TA N FLOATING SOLAR ON HYDROPOWER PLANTS In Tajikistan, ESMAP is supporting a preliminary techno-economic assessment of the possibility to install floating solar plants on Nurek and Baipaza hydropower plants and Qairokkum reservoirs. The assessment, currently under way, focuses on issues related to construction, anchoring, mooring, and interconnection with the grid network. A high-level environmental and social screening and studies of financing options will be performed once the technical assessment is completed. BOX 2.20 55 Renewable Energy Photo © Fred. Olsen Windcarrier VIETNAM OFFSHORE WIND ROADMAP The program led pioneering activities in Vietnam, a country facing rapidly increasing demand, where the power system is expected to double in size by 2030 and near-term energy supply shortfalls could occur. Its footprint of fossil fuels could increase, in fact, as coal accounts for 34 percent of power generation, which could rise by 55 percent unless course correction is carried out in the coming year. The Offshore Wind Development program delivered to Vietnam a strategic offshore wind roadmap (the program’s first in a series of roadmaps for emerging markets), which explored the role of offshore wind in helping to sustainably meet the country’s future energy demands. The roadmap presented the opportunities and challenges that come with developing an offshore wind sector in Vietnam and highlighted the economic benefits that could be created. This information has helped the government make informed, strategic decisions on offshore wind; Vietnam’s new power development plan sets the target 8.5 GW of offshore wind to be operational by 2035. 56 OFFSHORE WIND undertaking offshore site surveys and auction design, ahead of a future tender for offshore wind. Around a quarter of the world’s offshore wind potential ESMAP Annual Report 2021 is within the waters of low- and middle-income countries. Accelerating its uptake in emerging markets has become HYDROPOWER essential in their transition from fossil fuels. The offshore wind industry has matured rapidly over the past decade Sustainably developed hydropower delivers affordable and can provide GW-scale generation that is close to renewable energy and promotes broader climate matching coastal demand with capacity factors exceeding objectives, but significant hydropower potential remains 50 percent at cost-competitive prices. untapped. The Hydropower Development Facility helps clients identify and build a pipeline of sustainable The joint ESMAP-IFC Offshore Wind Development hydropower projects in their country, supports clients in program’s objective is to accelerate the use of offshore developing and managing next-generation rehabilitation wind in low- and middle-income countries. Analysis by and greenfield projects, and aims to accelerate the the program estimates that there are over 71,000 GW of deployment of technology that is critical to integrating technically extractable offshore wind resources globally. variable renewable energy into the grid. During FY2021, largely through financing to ESMAP from The facility’s portfolio supports the development of a BEIS, country grants were provided to the energy programs total of 2.5 GW of hydropower, mostly in South Asia. This in Azerbaijan, Colombia, India, the Philippines, and Sri includes the preparation of the Upper Arun Hydroelectric Lanka, adding to the grants delivered to Turkey and project in Eastern Nepal, the most ambitious among Vietnam in FY20, bringing the total number of grants to the project grants, which is envisaged to produce 1060 seven. These grants are all buttressing the development MWs. In FY2021, the Hydropower Development Facility of offshore wind roadmaps. Six country roadmaps are in supported several studies related to the feasibility of the progress, and one (Vietnam) has already been completed. project, including economic and financial analyses, a study on vocational training and fisheries, and a dam safety ESMAP established its Offshore Wind Development assessment. Program in partnership with the International Finance Corporation (IFC), to strategically support both the The facility also supports the Rusumo Hydroelectric project government and industry in emerging markets. This joined at the border of Rwanda and Tanzania. The project will up approach enables the World Bank Group to provide generate approximately 80 MWs, to be shared equally a comprehensive package of support to our clients. The among Burundi, Rwanda, and Tanzania. In FY2021, the Program also works in close cooperation with the Global Hydropower Development Facility continued to provide Wind Energy Council (GWEC). GWEC provide strong links technical assistance related to tunneling and blasting with the international offshore wind industry and offer activities, with the objective of ensuring that blasting is market insights in our client countries. For example, in performed within permissible limits and in adherence with September 2020, the Program collaborated with GWEC international environmental, health, and safety standards. to produce an offshore wind virtual study tour which saw over 400 delegates, including representatives from 24 client governments, attend the three-day event. The Offshore Wind Development program prepared an Offshore Wind Roadmap for Turkey, which has a similar objective to the roadmap for Vietnam. To aid the subsequent delivery of offshore wind in Turkey, the Offshore Wind Development program is also supporting activities under the EU Instrument for Pre-Accession Assistance (IPA) 2019 program. The work is going to include BOX 2.21 57 Renewable Energy Photo © 2020 gokturk_06/Shutterstock INDONESIA FIRST PUMPED STORAGE HYDROPOWER PROJECT A pumped storage hydropower is a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other, passing through a turbine. In Indonesia, the World Bank is financing the construction of the country’s first pumped storage hydroelectric facility, in the West Java province. The Upper Cisokan hydropower project will generate 1 GW and will contribute to Indonesia’s transition to a lower- carbon economy. In FY2021, ESMAP’s Hydropower Development Facility provided technical assistance to the preparation and early implementation of the project. This includes knowledge sharing on: contract negotiations, environmental and social safeguards, implementation arrangements, owner’s engineer recruitment, climate risk assessments, and project appraisal. PARTNERSHIPS 58 ESMAP Annual Report 2021 THE POWER OF PARTNERSHIPS Integral to ESMAP’s business model is to actively collaborate with multilateral and bilateral organizations, initiatives and programs, as well as partnering with nongovernmental organizations, think-tanks, research institutions and industry groups to influence the global energy agenda. Over the years, ESMAP has built a strong network of partnerships across sectors. In FY2021, ESMAP created new partnerships and enhanced existing ones. Below are some examples of these collaborations: CLEAN COOLING COLLABORATIVE (CCC) ESMAP’s Efficient and Clean Cooling program (ECCP) was established in 2019 thanks to an initial $3 million grant to ESMAP from the philanthropic Clean Cooling Collaborative (CCC) - formerly known as the Kigali Cooling Efficiency program or K-CEP. ECCP has also benefitted from the K-CEP cooling network. ECCP has since become an integral part of the FY2021-24 ESMAP Business Plan’s Accelerating Decarbonization pillar. In FY2021, CCC recognized ESMAP with the ‘High Impact’ award at their K-CEP Phase 1 Impact Event. WHO, UNICEF AND GAVI As a part of the World Bank’s COVID 19 Vaccine Delivery taskforce, ESMAP participates in regular interagency meetings with the World Health Organization (WHO), the United Nations Children’s Fund (UNICEF) and the Vaccine Alliance (Gavi) to share recent updates, good practices, as well as experiences with common challenges regarding supply and logistics - especially cold chains - relevant to the COVID 19 vaccine roll-out. ESMAP collaborates closely with the three organizations at global and country level on data sharing, tools, models to assess cold chain gaps and costs, information on the cold chain landscape in low- and middle-income countries along with knowledge dissemination of latest cold chain equipment and technologies, solarization of cold chain, and identification of co-investment opportunities. GREEN CLIMATE FUND (GCF) 59 Renewable Energy ESMAP and the World Bank’s Energy Climate Finance team have worked closely with the Green Climate Fund (GCF) over the past 18 months to develop a multi-country facility dedicated to sustainable cooling. In October 2021, the GCF Board approved the World Bank’s Cooling Facility, through which 157 USD million GCF funds will be channeled to nine World Bank projects. It is one of the world’s first multi-country financing initiatives to focus on cooling and will help nine identified countries develop the necessary market infrastructure, financing mechanisms, and policies and regulations to deploy clean cooling at scale. It will focus on space cooling (i.e., energy efficient buildings and appliances), as well as refrigeration and cold chains in the health and agriculture sectors. COOL COALITION ESMAP is a member of the Cool Coalition’s Steering Committee and engages in Cool Coalition activities and events raising awareness about and promoting a global transition to efficient and climate-friendly cooling. ESMAP supports the Cool Coalition in promoting a “reduce-shift-improve-protect” holistic and cross- sectoral approach to meet growing demands for cooling. TRACKING SDG7 Along with the International Energy Agency, the International Renewable Energy Agency, the United Nations, and the World Health Organization, the World Bank/ESMAP is a custodian agency in tracking the SDG 7 targets. Every year, the custodian agencies publish Tracking SDG7: The Energy Progress Report. The report provides the most comprehensive look available at the world’s progress towards global energy targets on access to electricity, clean cooking, renewable energy, and energy efficiency. The 2021 edition informed the United Nations High Level Dialogue on Energy (see p. 5). UNICEF 60 ESMAP Annual Report 2021 ESMAP is working with UNICEF on electrification of public institutions. The objective of this partnership is to collaborate on market assessments and data sharing for electrification of schools and health centers in low-income client countries. These assessments can subsequently inform investments in electrifying public institutions. Collaboration is underway in Niger and Sudan. TESLA The World Bank and TESLA started a collaboration in November 2020 through which Tesla is sharing knowledge and analysis with the World Bank on the cost implications and least cost of energy of different levels of economies of scale, technology optimization (solar, battery, energy management system), and logistics in mini-grid portfolios. TESLA representatives are also presenting innovative solutions to electrify public institutions (schools, health centers) in World Bank webinars and workshops. HEALTH AND ENERGY PLATFORM FOR ACTION (HEPA) In 2019, the WHO with the World Bank, the United Nations Development Program (UNDP), the United Nations Department of Economic and Social Affairs (UNDESA) and the support of the International Renewable Energy Agency (IRENA) and other key stakeholders established the Health and Energy Platform of Action (HEPA). This platform aims to strength cooperation between health and energy sectors, with an initial focus on clean cooking and health care facility electrification. In FY2021, as part of the HEPA, ESMAP collaborated with WHO and the Clean Cooking Alliance (CCA) in a series of webinars on Transitioning to Clean Cooking aimed at energy and health decisionmakers. AFRICA CLEAN ENERGY 61 Renewable Energy Through a partnership with the African Clean Energy (ACE) program of the United Kingdom’s Foreign, Commonwealth & Development Office and the Global Off- Grid Lighting Association (GOGLA), ESMAP created in FY2021 the first end-user subsidy lab for off-grid solar products. The lab seeks to enable stakeholders to design smart and effective end-user subsidies that will lower the cost of off-grid solar products without creating market distortions. VIENNA ENERGY FORUM, EFFICIENCY FOR ACCESS, ENDEV ESMAP’s Improving Livelihoods and Human Capital (ILHC) program has built a number of external partnerships to share knowledge on productive uses of energy. This includes cooperation with the UNIDO Vienna Energy Forum Virtual Series on Food Systems, the Efficiency for Access (EforA) Coalition led by the Collaborative Labelling and Appliance Standards Program (CLASP), and EnDev Learning & Innovation Productive Use of Energy Community of Practice. UNHCR ESMAP’s Leave No One Behind (LNBH) program collaborate with the data and energy teams from the United Nations Refugee Agency (UNHRC). This collaboration not only allows for a better understanding of the energy situation around the refugee camps, but it also sheds a light on the energy requirements in the surrounding areas. 62 GLOBAL WIND ENERGY COUNCIL AND IFC ESMAP Annual Report 2021 ESMAP established its Offshore Wind Development Program in partnership with the International Finance Corporation (IFC), to strategically support both the government and industry in emerging markets. This joined up approach enables the World Bank Group to provide a comprehensive package of support to our clients. The Program also works in close cooperation with the Global Wind Energy Council (GWEC). GWEC provide strong links with the international offshore wind industry and offer market insights in our client countries. For example, in September 2020, the Program collaborated with GWEC to produce an offshore wind virtual study tour which saw over 400 delegates, including representatives from 24 client governments, attend the three-day event. ENERGY STORAGE PARTNERSHIP The World Bank Group convened the Energy Storage Partnership (ESP) in May 2019 to foster international technological cooperation and training that can develop and adapt new energy storage solutions tailored for the needs and conditions of developing countries. The ESP currently has 41 Partners and has built consensus around an agenda for expanding the knowledge base and capacity for developing countries to manage energy storage projects. In the past year, the ESP created online training sessions on energy storage, the production of three reports, and the implementation of testbeds (see p. [Energy Storage]). GREEN POWERED FUTURE MISSION COALITION The World Bank/ESMAP is a member of the Green Powered Future Mission Coalition led by Italy, China, and the United Kingdom. The coalition aims to demonstrate that power systems, regardless of geography or climates, can effectively integrate up to 100% VRE in their generation mix by 2030 while ensuring the system is cost-efficient, secure, and resilient. This year the mission developed a Joint Roadmap of Global Innovation Priorities which was released during a dedicated event organized at the UNFCCC Innovation Hub Pavilion at COP26 in November. The next step will be setting out the Mission’s Action Plan 2022-2024. MODERN ENERGY COOKING SERVICES 63 (MECS) PROGRAM Renewable Energy The Modern Energy Cooking Services (MECS) Program, led by Loughborough University and funded by the UK Department for International Development (DFID), aims to create a stronger evidence base for transitioning to modern energy cooking services through socioeconomic and technological innovations to drive the process forward. HIGH-LEVEL COALITION ON HEALTH AND ENERGY The High-Level Coalition on Health and Energy, convened by the WHO, aims to strengthen cooperation between health and energy sectors, increase political momentum, spur investments, mobilize public support and drive practical solutions. ESMAP, representing the World Bank, supports and collaborates with the Coalition. It was launched in June 2021 and has issued a strategic roadmap on health and energy. SECTION II O U R I M PAC T I N F Y2 0 2 1 ASSOCIATED TRUST FUNDS Photo © Sstevecoleimages / Getty Images ADVANCING REGIONAL ENERGY CARBON CAPTURE USE AND 65 TRANSFORMATIONAL PROJECTS STORAGE ASSOCIATED TRUST FUNDS MULTI-DONOR TRUST FUND The World Bank CO2 Capture and Storage Trust Fund The Advancing Regional Energy Transformational Projects (CCS TF), an associated trust fund under the ESMAP (AREP) multi-donor trust fund was established in 2016 umbrella since FY2021, has been operating since 2009. to improve the enabling environment for regional Its aim is to help client governments assess the potential power trade and advancing regional energy projects in for CO2 capture, utilization, and storage (CCUS) in meeting the Africa region. It later became an ESMAP-associated national and international climate change mitigation goals trust fund and complements the activities of the ESMAP and building the capacity within countries to deliver on this MARCOT program. potential. To date, the CCS TF has capitalized countries and regions in Africa, Asia, Central and South America, Europe, The program supports the Southern African Power Pool and in the Middle East in this effort, including providing (SAPP), a cooperation of the national electricity companies ongoing support for the development of CCUS pilot in Southern Africa under the auspices of the Southern projects in Mexico and South Africa. African Development Community, in establishing a regional power market and offering various trading instruments CCUS deployment is advancing, with 26 large-scale that make it the most advanced power pool in Africa. commercial CCUS projects now in operation globally and a further 39 at various stages of development. FY2021 saw Key activities assisted by MARCOT/AREP in FY2021 include significant developments both within the country support the development of an SAPP regional master plan, the operations as well as with the development of global CCUS preparation of feasibility and environmental and social analytics. assessment studies for several regional transmission projects, and the training of over a hundred regional and In South Africa, the World Bank-supported CCUS program national utilities staff. has now identified a new location for the pilot CO2 storage project, with the site being endorsed by an international The MARCOT program (through AREP) also supported expert peer review. The national power utility, Eskom, has the operationalization of the regional balancing market, also agreed to host a CO2 capture pilot project assessment which started up in November 2021. Substantial progress study at one of its newly built power stations. was achieved in developing the innovative concept of the Regional Transmission Infrastructure Financing Facility The CCS TF is nearing completion of a study looking (RTIFF) to attract financing for regional transmission at the development of a CCUS legal and regulatory grid leveraging the regional competitive power market framework in Mexico, in partnership with the Ministry of mechanisms. the Environment and Natural Resources. The CCS TF is also working with the ministry to scope a potential pilot The program also supported the Eastern African Power CCUS project to be hosted at an industrial facility, with Pool (EAPP). This included an update of the EAPP short- current discussions focusing on CO2 capture from a cement term action plan (2021–23), framing the key priorities over production facility. the next three years, as well as advisory and consultancy activities to establish the regional market, develop FY2021 also saw the commencement of a program of work the regional system plan, and train EAPP and national on the role of CCUS in the Pan-Arab region, with the first utilities staff. grant approved under the World Bank internal CCUS grant window. The program will undertake a regional assessment of CCUS potential, with a focus on blue hydrogen, as well as looking at developing national CCUS strategies, CCUS legal and regulatory frameworks, and building CCUS capacity and cooperation across the region. Final results for the Pan-Arab CCUS program are due in 2023. 66 ESMAP Annual Report 2021 Photo Courtesy of Seychelles Public Utilities Corporation / © IRENA SMALL ISLAND DEVELOPING the government of Maldives’s 2030 carbon neutrality 67 STATES (SIDS) DOCK commitment. ASSOCIATED TRUST FUNDS Small Island Developing States (SIDS) are often extremely In Comoros, a $0.5 million grant was provided to co- dependent on imported petroleum products to meet finance a World Bank project furthering COVID-19 vaccine their energy needs, including electricity generation. As a purchase and health system strengthening. The grant is result, many SIDS experience high and often rising costs enabling the acquisition and installation of solar power for electricity, supply interruptions, as well as vulnerability for health facilities to improve their ability to store and to oil price shocks. So, many SIDS are now looking to safely deliver COVID-19 vaccinations and to treat COVID-19 transition to more sustainable energy sources, where patients in the absence of consistent, available power. improved energy efficiency and renewable energy play an increasing role. The SIDS DOCK Support program is also backing three ongoing activities that are co-financing projects in Pacific The SIDS DOCK Support program is an initiative among Islands, Solomon Islands, and Dominica. member countries of the Alliance of Small Island States (AOSIS). The program helps SIDS transform their energy In Pacific Islands, the program co-finances a Bank project sectors and address adaptation to climate change. using a regional approach to improve data availability and the capacity of power utilities of the Pacific Island In FY2021, the SIDS DOCK Support program supported countries. These efforts are mainly focused on enhancing two new ongoing activities, in Maldives and Comoros. their ability to incorporate and manage renewable energy In Maldives, the grant will facilitate the power system technologies and long-term disaster risk planning. It is the planning activity, which will inform the nation’s first project implemented by the Pacific Power Association. decarbonization strategy. The overarching goal of this study is to assess the impact of various technologies, The grant in Solomon Islands supports the development of including electric vehicles, on power systems. The study five renewable energy-based mini grids. In Dominica, the will help formulate possible technology options and grant co-funds the drilling in South Laudat of an additional indicative scenarios that can be implemented to advance reinjection well and a new production well needed for the development of a geothermal power plant. SECTION III FINANCIAL REVIEW Photo © Jessica Lea / DFID 69 This chapter outlines the FY2021 financial information for the multi-donor trust funds (MDTFs) that are under ESMAP’s management, namely, the ESMAP Umbrella MDTF and its associated trust funds.2 Financial Review CONTRIBUTIONS In FY2021, ESMAP received $197 million from 11 donors. Trust funds associated with ESMAP, including SIDS DOCK, did not receive new contributions in FY2021. Table 3.1 presents actual receipts in FY2021 from individual donors for ESMAP, as well as cumulative receipts during FY2017-21. Table 3.2 presents cumulative pledges and receipts of associated trust funds to ESMAP. Table 3.1. Donor Contributions to ESMAP, FY2017-21 ($ thousands) Donor Contributions to ESMAP and SIDS DOCK MDTFs, FY2017-21 ($ ‘000) FY2021 Contribution ESMAP FY2017-21 Paid-In & Receivables Cum. Receipts Cumulative Cumulative over Cum. Country ESMAP Pledges Receipts Pledges Austria 2,423 4,132 4,132 100.0% Canada 2,298 2,298 100.0% ClimateWorks 3,000 2,250 75.0% Denmark 21,212 30,248 28,480 94.2% EU 14,750 7,298 49.5% Finland 144 144 100.0% France 1,209 1,209 Germany - BMU 8,465 8,465 100.0% - BMZ 2,374 6,368 7,395 116.1% Iceland 1,778 4,511 3,933 87.2% Italy 6,054 6,054 100.0% Japan Luxembourg 1,124 1,124 100.0% Netherlands 40,500 119,878 81,378 67.9% Norway - MFA 4,773 4,773 100.0% - Norad 56,651 86,988 74,476 85.6% > continued  s set out in the Administration Agreement with ESMAP donors, the current financial information relating to multi-donor and associated trust funds under ESMAP management 2 A can be accessed via the Bank’s Trust Funds Donor Center. The Bank’s Financial Statements, as well as the Single Audit Report on Trust Funds, can be accessed on the Bank’s public website on World Bank Group Finances. Consistent with the Bank’s Trust Fund Reform, the ESMAP has an Umbrella “Anchor” MDTF TF073553 and the older TF071389 and TF072490. ESMAP’s Umbrella structure includes four trust funds associated to ESMAP: (1) TF071728: Support for Small Island Developing States (SIDS DOCK); (2) TF071379: Carbon Capture, Utilization and Storage (CCUS); (3) TF072636: Advancing Regional Energy Projects (AREP) in Africa; and (4) TF073420: Support to Regional Off-Grid Electrification Project (ROGEP). FY2021 Contribution ESMAP FY2017-21 Paid-In & Receivables 70 Cum. Receipts Cumulative Cumulative over Cum. ESMAP Annual Report 2021 Country ESMAP Pledges Receipts Pledges Rockefeller 1,650 1,350 81.8% Foundation Spain 6,887 6,887 Sweden 34,428 58,714 44,952 76.6% Switzerland - SDC 3,336 3,336 - SECO 14,050 14,050 100.0% United Kingdom - BEIS* 26,289 82,235 44,572 54.2% - FCDO 44,389 43,050 97.0% World Bank Grand Total 197,086 505,204 380,173 Note: U.K. Department for Business, Energy & Industrial Strategy (BEIS) provides its contribution in promissory notes. Receipts denote the encashed amount. Table 3.2. Donor Contributions to Associated Trust Funds to ESMAP ($ thousands) CUM. RECEIPTS ASSOCIATED DONOR CUMULATIVE CUMULATIVE OVER CUM. TRUST FUND COUNTRY PLEDGES RECEIPTS PLEDGES Advancing Regional Energy Projects Sweden 17,446 17,446 100% (AREP) in Africa Carbon Capture, Norway 18,313 18,313 100% Utilization & Storage (CCUS) United Kingdom 40,759 40,759 100% Global Carbon Capture and 2,173 2,173 100% Storage Institute, Ltd. Small Island Denmark 7,093 7,093 100% Developing States (SIDS DOCK) Japan 15,000 15,000 100% Support to Regional Off-Grid Netherlands 44,000 16,000 36% Electrification Project (ROGEP) DISBURSEMENTS 71 ESMAP disbursed about $39.0 million in FY2021, a decrease of over 9 percent from the amount disbursed in FY2020. Total Financial Review disbursements for the associated trust funds SIDS DOCK, AREP, and CCUS amounted to about $5.1 million. The following figures and tables present the breakdown of disbursements for FY2021. Regional and global program activities accounted for about 95 percent of disbursements in FY2021, with the balance spent on activities for Program Management & Administration, Knowledge Management, and Communications. It should 36% be noted that the global programs include technical support by the central ESMAP unit to World Bank country/regional activities. Figure 3.1: ESMAP Disbursements, by Region, FY2021 (in $ thousands) 12000 10000 8000 36% 6000 4000 25% 2000 11% 9% 8% 4% 6% 0 AFR EAP EAC LAC MENA SAR Other Table 3.3: ESMAP Disbursements, by Region and Program Management, FY2021 (in $ thousands) ESMAP Disbursements, by Region, FY2021 ($ thousands) AFR 9,284 EAP 3,388 ECA 3,110 LCR 1,616 MNA 2,203 SAR 4,201 Other 13,370 Total 37,172 > continued 72 ESMAP Disbursements, by PM&A, FY2021 ($ thousands) Program Management & Administration 945 ESMAP Annual Report 2021 Monitoring & Evaluation 355 Communications 264 Knowledge Management 192 Total 1,756 Grand Total 38,928 Table 3.4: ESMAP and Associated Trust Funds Disbursements, by Region, FY2021 ($ thousand) REGION ESMAP SIDS AREP CCUS AFR 9,284 2,248 94 EAP 3,388 449 ECA 3,110 LCR 1,616 2,000 199 MNA 2,203 SAR 4,201 Other 13,370 11 163 Total 37,172 2,460 2,248 456 Note: There were no disbursements for the associated trust fund “Support to ROGEP” in FY2021. Figure 3.2: ESMAP and Associated Trust Funds Disbursements, by Program Area, FY2021 73 (in $ thousands) Financial Review Utilities for the Energy Transition Energy Markets, Connectivity and Trade Energy Subsidy Reform Facility Closing Gender Gaps in Energy Supporting Coal Regions in Transition Clean Cooking Fund Off-Grid Solar Leave No One Behind Integrated Electrification Strategies and Planning Improve Livelihoods and Human Capital Global Mini Grids Facility Financial Innovation for Energy Access Energizing Renewables Energy Storage Innovative Solar Offshore Wind Hydropower Development Facility Zero Carbon Public Sector Industrial Decarbonization Efficient and Clean Cooling Geothermal Direct Use Green Hydrogen Tracking SDG 7 Report MTF* RISE/ Regulatory Benchmarking Project Demand Estimation Energy Data Hub SEforAll Knowledge Hub Annual Block Grants Other AREP CCUS SIDs Dock 0 1000 2000 3000 4000 5000 AFR EAP ECA LAC MENA SAR Global * Includes data on clean cooking and displaced communities.