ESMAP Newsletter | June 2025
Highlights
Tracking SDG7: The Energy Progress Report 2025
The 2025 Tracking SDG7: The Energy Progress Report finds that 92% of the global population now has access to electricity. Unfortunately, 666 million people remain unconnected, 85% of whom live in Sub-Saharan Africa. Progress in clean cooking has been slow. Distributed renewable energy – solar home systems and solar mini grids – offer flexible solutions to reach the remaining populations but require significant additional investments. This report is a joint effort by IEA, IRENA, WHO, World Bank/ESMAP, and UNSD.
>> Read the Press Release | Download the Report
Distributed Renewable Energy (DRE) Atlas: Planning Platform
Now available, the Distributed Renewable Energy (DRE) Atlas provides comprehensive data on settlements in 58 countries, offering detailed insights into communities suitable for the deployment of mini grid and off-grid solar systems. The DRE Atlas supports initiatives like Mission 300 to accelerate energy access. The platform is a joint ESMAP/IFC product.
>> Explore
BOARD APPROVAL
World Bank Approves Investments to Boost Indonesia’s Economic Growth and Access to Clean Energy
ESMAP's Sustainable Renewables Risk Mitigation Initiative (SRMI) provided US$6 million grant funding (with direct contribution from the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) to co-finance a US$1.5 billion new investment, the Indonesia Sustainable Least-Cost Electrification-2 (ISLE-2) operation that was approved June 12 by the World Bank Board. ISLE-2 aims to tackle three challenges in Indonesia, universal access, deployment of renewable energy in an affordable manner and mobilizing private capital. The expected results are 3.5 million people to be connected to the grid in the most remote areas of Kalimantan and Sumatra regions, reduce GHG emissions grid factor by 8% and reduce cost of generation by 10%, while deploying 540 MW of solar and wind. ISLE-2 is also co-financed by the SRMI-Resilience GCF facility with US$10 million of grants and is the first pilot of the new IBRD Step-up-Loan.
When combining ISLE-2 with its first phase ISLE -1 approved in June 2023, they together represent US$3 billion in financing mobilized, 4.5 million people connected to the grid and 1.2 GW of renewables enabled. SRMI and ESMAP have been instrumental in developing this framework providing targeted technical assistance and climate financing since 2018.
PUBLICATIONS
Regulatory Indicators for Sustainable Energy (RISE) 2024: The Time is Now
The new ESMAP RISE Report finds that electricity and clean cooking policy and regulatory frameworks saw progress in many countries since 2021 and 2023. However, countries with substantial unelectrified populations have high RISE scores but this has not translated into significant electrification gains, because access requires more than sound policies. And progress in fragile states stalled due to structural barriers and instability. The report emphasizes that expanding access requires capacity for implementation, together with efforts to address barriers to affordability, financing, and challenging business environments. With just five years left to achieve Sustainable Development Goal (SDG) 7, moving beyond strong RISE scores to expand actual electricity access is more urgent than ever.
REPORT SERIES
- Accelerating Liquid Fuel Reduction in West Africa
- Improving Utility Governance and Management in West Africa
- Strengthening Utility Balance Sheets in West Africa
Explore the ESMAP-sponsored three-part series aimed at equipping West African utilities, governments, and their financial partners with the tools to address critical challenges. This series primarily focuses on distribution-centric utilities, which include distribution-only, transmission & distribution, and vertically integrated entities, while also incorporating relevant insights from other types of utilities when pertinent. Each paper in this series provides: (i) an in-depth examination of the challenges confronting West African utilities, often supported by new data; (ii) innovative frameworks to enhance understanding; and (iii) illustrative real-world examples through detailed case studies and utility analyses. These insights, grounded in the World Bank's extensive expertise, are informing the future direction of Bank operations.
>> Download Report 1 | Report 2 | Report 3
Next Steps for Advancing Viet Nam’s Offshore Wind Journey
For Viet Nam to realize its offshore wind potential and to meet national energy targets, a balanced approach that leverages both state and private sector capabilities while providing a stable, attractive investment environment is essential.
This ESMAP-supported report aims to inform industry stakeholders about Viet Nam’s current offshore wind policies and regulations while providing recommendations to the government for framework improvements that will support project success and help achieve national targets.
Power More with Less: Scaling Up Energy Efficiency for Growth and Energy Security
Energy efficiency offers a cost-effective solution to enhance access to affordable and secure energy and support economic growth. Amid increasing power demand, energy efficiency can help countries reduce expenditures on new energy infrastructure, fuel imports, and debt associated with their energy sectors.
The report adds to the existing knowledge on energy efficiency by providing a roadmap to harness the vast, untapped potential of energy efficiency in developing countries. It showcases successful examples of low- and middle-income countries that have prioritized energy efficiency in their energy sector policies, targets, and programs. The joint ESMAP/Energy & Extractives Global Practice report is intended for client countries, international financial institutions, the broader donor community, and the private sector.
Food Cold Chain Enhancements in Guatemala
Guatemala's agrifood sector is integral to the nation's economy, contributing 10.2% to overall economic activities and employing 32% of the active workforce. Nevertheless, it faces substantial challenges due to its dualistic structure. While larger entities are integrated into global value chains, numerous small agribusinesses and farmers encounter difficulties such as limited access to finance, markets, and connections to both national and global value chains. Over the past decade, smallholders have experienced stagnant or declining productivity, impacted by climate change and restricted access to agricultural best practices. Furthermore, Guatemala contends with pervasive food insecurity, which disproportionately affects Indigenous communities and families in the lowest income quintile.
Energizing Rwanda's Development: Opportunities and Strategies for Catalyzing Productive Use of Energy
In the past eight years, Rwanda has exceeded its electrification goals with 61% of its population now connected. With support from development partners, the government aims to leverage electricity services for economic development and job creation. This World Bank/ESMAP and SEforAll report assesses Rwanda’s potential electricity demand, examines barriers to high-potential PUE technologies, and proposes financial and technical solutions.
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